El Régimen Ecoómico en la Constitución Política del Perú

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Jonathan

when we start

Good afternoon

to the entire accounting community

in general. On behalf of the Faculty of

Accounting Sciences,

we want to thank Professor María

del Socorro Torres Villanueva for

today's presentation on

a very important topic that has been

debated throughout

these periods and months because it is

always addressed with great sensitivity.

Professor Socorro, good afternoon. And first of all, I

wanted to

tell you that Professor Torres is a

professor in our faculty. She is a lawyer

by profession, has a master's degree in

constitutional law from the

National University Federico Villarreal, and

a doctorate in accounting

and business sciences from the

National University of San Marcos. She has been

appointed alternate member of the

Superior Court of Justice of Lima and advisor to

the bicameral budget commission of the

Congress of the Republic. She is not a

representative of the Supreme Court of

Justice of the Republic before the

National Registry of Identification

and Civil Status (RENIEC). Currently, she is a member of the

2003 association of Faculty of

Accounting Sciences and member of the

University Assembly, Professor Torres.

Good afternoon and thank you for

participating in this event. Good

afternoon, Professor León. First of all,

thank you very much for this invitation to

reach the students and

attendees of this Center for

Social Responsibility and

University Extension with the topic of the

economic system in the Political Constitution

of Peru. Through you, I thank

Dr. Víctor Dante Ataúpilco Vera,

Dean of the Faculty of

Accounting Sciences, because in this way he

promotes the performance of this Directorate

of Social Responsibility and University Extension.

The topic that brings us together today is the

economic system in the

1993 Political Constitution of Peru. And since our

Constitution is from 1993, that is, from the

last century, I will mention some

important events that may have

influenced the thinking of the

legislators at the time

the Constitution was drafted. The following are some of the

events in the world of the

20th century, such as the two

world wars, several

economic and political crises,

dictatorial regimes, the emergence of the

Third World,

rampant inflation, globalization,

energy restrictions, and many

others. Factors that, as a consequence of

the aforementioned events, demanded the

advancement of science and technology,

but there was also

an

exaggerated consumer economy with a rapidly growing population.

These events demanded

that states

provide

certain safeguards that imposed

a high degree of

economic regulation aimed at protecting new

social rights. I am referring to a

regulatory, protective, and interventionist state.

Next, please, in our country, it was from

the 1990s onward that

the shift to a more

open economy occurred. The

1979 Constitution was still in effect, but it was with the

1993 Constitution that

these economic changes materialized.

We are talking about the social

market economy, which is the model in which the

economy functions according to

market rules but

complemented by social guarantees. In

this sense,

economic growth is not an end in

itself but must be at the

service of the common good.

We could say the following, please,

to talk about the economic system,

we must first clarify certain

concepts that will help us

better understand this subject. What is an

economic system? An economic system is the

way in which economic activity is organized.

A society produces

goods and services and distributes them

among its members. Next,

please:

Economics. What is economics? Economics is the

science that studies resources,

wealth creation, and the production,

distribution, and consumption of goods and

services to satisfy

human needs.

Didactic definition: If we make a

didactic division, we could divide it

into political economy and

domestic economy. Why? Because it's very

simple to understand that when we talk about

domestic economy in a household, we have to

plan, make a budget, right?

And when making the budget, we have to

determine how much we are going to spend on

rent, food, health,

education, electricity, water, telephone, we have to

pay debts, and if we have

a little left over, we take advantage of it to

save and set aside a little more for

fun, etc.

Next, please. But a

more important division of economics is

found in microeconomics and

macroeconomics.

Microeconomics is responsible for studying

the movements of

individual or local resources, and

macroeconomics is responsible for analyzing

the global dynamics of

resource management and economic aggregates. I'm

introducing all these concepts so that we can

later understand each of the articles of the

economic system, which, by the way,

the system... the system The economic section

comprises several chapters.

The first deals with the principles of the

economic system, followed by the

tax and budgetary system, and

other topics. Because

the subject is so broad, I don't think we'll be able to cover

everything, but I will focus on this

part

about the principles of the economic system

because it's what many people are wondering about: what's

happening in our country, what's

happening with this Constitution?

Why are there people who say, "Let's

go back to the 1979 Constitution"?

Why are there so many people who

say, "No, thanks to this Constitution we've gotten out

of the quagmire of

hyperinflation," etc.? We will

understand this little by little.

Regarding economic policy, it is

defined as the set of strategies

and actions formulated by governments and,

in general, the state

to guide and influence the

economy of countries.

This strategy consists of a

set of measures, laws, regulations,

subsidies, and taxes that alter

economic incentives to achieve

specific economic goals or results. State intervention

can take many forms,

but fundamentally, its purpose is to

modify the behavior of

economic actors through

incentives, stimuli,

tax benefits, etc., or to prohibit or To

limit the actions of these subjects, the

following

please refer to the Constitutional Court in

its

ruling number 48 of 2004, regarding the unconstitutionality process,

when it points out that the social aspect is defined

from three dimensions: as a mechanism

to legitimately establish some

restrictions on the activity of

private entities;

as a clause that allows for

maximizing the principle of solidarity

by correcting possible distortions

that may manifest themselves in the

market in an almost natural way; allowing

a set of mechanisms that enable

the State to fulfill

social policies that seek the well-being of all

citizens; and finally, as a

formula for promoting the sustainable use

of natural resources to

guarantee a balanced and

adequate environment for the development of life. I

complement this with these principles that I have

extracted from a ruling of the

Constitutional Court. It is about an

unconstitutionality process brought by

5,000 citizens against

mining royalties. So, while it is true that it is

a ruling of the

Constitutional Court, we must recognize that

the work of the Constitutional Court

in its interpretation of the Constitution

is excellent in this type of issue

because they clarify the concepts.

What did Plato say in his work, The Republic?

In his work, The Republic describes the

origin of the city; it is necessary.

Necessarily related to economics,

according to Plato's approach,

money is a human invention that should

be oriented towards the purpose for which it was

created, that is, exchanging goods

to satisfy needs. So far, the

concept. But what happens when this

money becomes excessive? Then it

no longer satisfies needs.

Next, please.

And now let's see what the

economic system says in the

Political Constitution of Peru. Next, please.

We find ourselves with Article

58 of the Constitution. The following

Article 58 of the Constitution

speaks of the social

market economy and establishes that

private initiative is free. Right off the bat, the

first thing it says about

the general principles of the

economic system is that private initiative is

free. So when we see

this, the first thing we have to think about

is

1993. What was the economic situation of

our country at that time? Why did the

legislators

think this way?

Remember that we were going through a

time of terrorism and a time

of hyperinflation. The president at that time

thought that for the country to

grow, it was necessary to attract investment, and

to attract investment, he

first had to solve those two problems. He

couldn't solve those two problems with

legislation alone. which was in force at that

time because it did not allow him to make

drastic decisions. So

this 1993 Constitution states that

private initiative is free, with the

intention of attracting foreign investment.

The term "private initiative" is a

mechanism for promoting

private investment through which

investors, who may be national

or foreign, express their interest to the State

in developing an

investment project for the benefit of society as a

whole. Regarding

activities where the State does not intervene, it states that it is

exercised within a

social market economy. This term "social

market economy" is very important

because it is precisely alongside "

free private initiative," but by

adding the term "social

market economy," we are already talking about a

concern of the State for the

community, for the citizens.

This concept implies that the State must

look after the common good and must

intervene to correct

social differences so that everyone, and not just a

few, participates in progress and

economic development.

While this constitutes an objective of the

State, the Constitution points the

way when it establishes that the State is not

empowered to carry out

business activity.

Here it says that private initiative is free and

is exercised within a social

market economy. Under this regime, the State

guides The development of the country and acts

mainly in the areas of

employment promotion, health, education, security,

public services, and infrastructure.

So, health, education,

security, public services,

infrastructure—all this implies that if

private individuals do not commit to

carrying out this activity, the state can

carry it out, if it can carry out these

activities in the interest of the population.

Next, please. Regarding this, Pedro

de Vega, a Spanish constitutional scholar,

points out that the market never functions

without corrective measures and contributions from the

state, and that in the face of the threat of

social conflicts that the market cannot

resolve or withstand, and in the face of the

permanent risk of internal chaos, it is not surprising

that it becomes

essential to resort to the state as an

instrument of regulation and control, since it is

the only instance capable of creating

conditions for the

economic system to obtain the minimum loyalty of

the masses. Please step back.

So here we are in Article 58,

which is the first article of the

economic regime, talking about free private initiative,

and you will observe how in the

following articles the word "freedom" (

free market) is repeated several

times. Article 59, the

economic role of the State: the state

stimulates the creation of wealth and

guarantees freedom of labor and

freedom of enterprise, commerce, and industry.

The exercise of these freedoms should not

be Harmful to public morals, health,

or safety, the state

provides opportunities for advancement to

sectors suffering from any

inequality. In this sense, it promotes

small businesses in all their

forms.

What do we understand by freedom of enterprise?

Freedom of enterprise is a power

that

national or foreign investors have to choose

the organization and development of a

unit for the production of goods or the

provision of services to satisfy

the demand of consumers or

users. In this sense, the

socio-economic model of the market will be the

foundation of its actions and, at the same

time, will be what sets the limits.

What are these limits? As already mentioned

here, safety,

hygiene, environmental protection,

morality, and respect for

good customs.

What do we understand by freedom of trade? We

have already mentioned freedom of enterprise;

now, freedom of trade. Here, freedom

of trade

refers to the free movement

of

lawful goods, provided they are subject to

transfer and

all regulations

without affecting their essential aspect. We

also mention industry. What do we

understand by industry?

Industry is the obtaining or

transformation of one or more products,

with the constitutional limitations

in general, as can be seen.

In all the cases I've mentioned,

freedom, with all its inherent freedoms, is

not absolute. Freedom in general

is never absolute; it has a limit, that is,

a framework within which it

can develop. In that sense,

these freedoms should not affect

morality, health, or public safety,

concepts I mentioned

before concluding this article, Article 59, which we

are analyzing. This article

establishes that the state must provide

opportunities for advancement in

sectors that suffer inequalities in one way or another,

whether

economic, physical,

geographic, or material. The state must be involved in all aspects of this.

Therefore,

certain

programs should be established to promote the creation of

small businesses, regardless of their

type.

Next, please,

Article 60: Economic Pluralism and

Subsidiarity. As I call it, the state

recognizes economic pluralism. The

national economy is based on the

coexistence of diverse forms of

ownership and enterprise. Only when

expressly authorized by law may the state subsidiarily carry out

direct or indirect business activity for reasons of high

public interest or manifest

national convenience.

Public or non-public business activity

receives the same legal treatment.

Here in this article, we

have heard the terms

economic pluralism and

subsidiarity. I

mention these two words because it's

important to understand the perspective from which they are being considered

in drafting the

Constitution. Economic pluralism

means

diverse forms of business,

and the system accepts and permits

various forms of enterprise. On the other hand,

this article uses the term "

subsidiarily." What does this mean? It

means that what private individuals are unable

to do,

the state will assume. It's that simple.

In this sense,

state intervention should be limited to what is strictly

necessary, and since it also requires the

approval of Congress, the state cannot undertake any

enterprise without its

approval. This is

established in Article 60, which states that

only when expressly authorized by law can

the state, directly or

indirectly, undertake any enterprise for reasons of high

public interest or manifest national convenience.

The principle of subsidiarity arises in

modern constitutions as a

useful technique for achieving social peace and

resolving conflicts through

absolute respect for individual rights and

freedoms. Its purpose is to

seek a balance between the public and

private spheres.

When the Constitution refers to

the public interest,

we must immediately think of everything

that is beneficial to all.

Society,

however,

we might think that the term is very

broad and very subjective.

We know that the public interest

is everything that benefits everyone,

and the state is responsible for this assessment

because the state makes use of its

administrative discretion in

certain

circumstances. In this sense,

we have the intervention of the

Constitutional Court, for example, to clarify

what the public interest is. To clarify the

concepts we are seeing, we have

that the public interest has to do with

everything that benefits everyone. This

constitutes one of the ends of the state and

justifies the existence of

administrative organizations.

When the article mentions

national convenience,

we are referring to all

economic activities

carried out by the state for the benefit of

citizens whose social benefit is

greater than the cost. And

the following article, which is Article 61, addresses

free competition. The state

facilitates and oversees free competition and

combats any practice that limits it and the

abuse of dominant or

monopolistic positions. No law or agreement

can authorize or establish monopolies; the

law prohibits it, as does the

political constitution, the press, radio,

television, and other means of

expression and social communication. In

general, businesses, goods, and

services related to freedom

of expression and communication cannot

be subject to exclusivity,

monopoly, or direct or

indirect hoarding by the State or

private individuals.

Free competition—what is free

competition? It is the freedom for

countless businesses of different

forms to exist, a plurality of offers in the

field of production, a plurality of

offers in the field of services or

product marketing. That is

plurality. Here we find ourselves

facing the principle of the law of

supply and demand, which is the basis of the

market economy. The

law of supply and demand is not inherently bad;

rather, the State must intervene

precisely to prevent excesses, to

prevent monopolies and hoarding, as

established by the Constitution.

What does the law of supply and

demand consist of? With greater supply, prices fall; with

greater demand, prices rise.

It is true that the State facilitates

free competition, and for this,

access to the market must be guaranteed

under equal conditions. But it is also

true that

the abuse of

dominant or monopolistic positions must be limited and punished. For this,

we have legislation. The law that

allows

monopolies or monopolistic practices to be punished

is the Law for the Repression of

Anti-Competitive Conduct, approved by

Legislative Decree 1034,

which prohibits and sanctions

anti-competitive conduct. It also prohibits the

abuse of dominant or

monopolistic positions and collusive practices,

cartels, or agreements between

companies in order to preserve

fair competition. For the benefit of consumers,

the following is relevant:

Article 62: Freedom of Contract.

Freedom of contract is guaranteed. It

guarantees that the parties can

validly agree according to the rules in force at the

time of the contract. The

contractual terms cannot

be modified by laws or other

provisions of any kind.

Disputes arising from the

contractual relationship are only resolved in The

arbitral or judicial route, according to the

protection mechanisms provided for in the

contract and contemplated by law,

and this Article 62 adds that,

through a contract-law, the state can

establish guarantees and grant

assurances that cannot be modified

legislatively without prejudice to the

protection referred to in the preceding paragraph.

In general terms,

for a contract to exist,

two parties are needed, at least two parties who wish to

validly impact it

according to the regulations in force at the time

of signing the contract. The Civil Code

complements these concepts and tells us

that all contracts aim to

create, modify, regulate, or

extinguish

obligatory relationships and constitute a

multilateral act par excellence.

But in this article, the explanation

will focus on contract-laws,

which are being

mentioned constantly,

especially in recent times,

because we have seen that there have been

laws from Congress

attempting to nullify some

contract-laws, and they have not been able to because

contracts, even those that can be

signed in the private sphere, cannot

contravene the agreements that the two

parties have adopted. In that sense, a

contract is the agreement between two

natural or legal persons to

create, regulate, modify, or extinguish a

legal relationship. When

I say patrimonial, it's because there's an

economic value involved, which is also legal.

The Constitution establishes

that the terms of

contracts signed under the law cannot be

modified by subsequent laws or provisions

of any kind. But

then you might ask what

happens when contracts are deemed

harmful to the country or the community. Well, you

have to use the

same provisions that the law grants

to clearly explain

the reasons for modifying,

rescinding, or

terminating the contract.

The law and the Constitution state that

these requests are made to the

parties involved, and if the other party disagrees,

the

conflict is resolved according to our

Political Constitution of Peru.

Conflict resolution can be

before the judicial branch or through

arbitration. Arbitration was

introduced as a means of conflict resolution

in the 1993 Constitution to

alleviate

the excessive workload of the judicial branch.

The Constitution itself provides that

arbitration can be national or

international. Let's not forget that

arbitration is an

extrajudicial institution for conflict resolution.

of 1993 and

which can be international. Currently,

the law, Legislative Decree 10/71 of

September 1, 2008, regulates

arbitration.

This Legislative Decree 1071 modified

the General Arbitration Law, which was

approved by Law 26,572 of

December 20, 1995.

So, the current arbitration law is

Legislative Decree 1071.

What does arbitration consist of?

Please explain. What does

arbitration consist of? Here we find

this figure that symbolizes the

following: the arbitrator receives the claim

and the response,

analyzes each one, and chooses one.

Therefore, you either win everything or lose everything.

When you go to arbitration, it is

important that both parties

agree to go to arbitration;

therefore, that must be stated from the

beginning in the contract. It is very common for

international companies to

never

choose the judicial system because it is

slow and

cumbersome, so they prefer to go through

arbitration, and if it is international, even better.

So, it is an

extrajudicial way of resolving

conflicts. Later,

conciliation appeared. You might

say, professor, but there is also...

Conciliation, or rather, the conciliation process, appeared

in 1997 with Law 26,872. From my point

of view, conciliation is extremely

interesting.

Why? Because while it's true that the

parties

participate in a

conciliation process where one files a

claim and therefore invites the

other party to come so that both can listen to each other,

the conciliator summons both

parties, plaintiff and defendant, and

seats them in front of them to hear the

reasons for the

conflict.

Then, in that conversation that the

parties have, they

can reach an agreement;

one gives a little, the other a little, and

suddenly, with that, the

solution to the problem is found. This doesn't happen

with arbitration. In arbitration, the

arbitrator doesn't even talk

to the plaintiff or the defendant; they

only receive the documents, and the

documents are those that

clearly state what the claim is and

what the response to the claim is.

Therefore, if you are not

completely sure of winning, don't go to

arbitration. Try to reach a settlement. In the

civil code, the term "

settlement"

consists of each party giving a little. If

there is no compromise, our

actions will be... Another type of contract, no, so

arbitration

has led to the parties

resolving their conflicts. Especially

with international arbitrations, let's

not forget that arbitration is an

extrajudicial solution to conflicts.

The arbitrator or arbitral tribunal,

next please,

issues an award, while the judge issues

a judgment. The arbitrator issues an award;

the award has the same value as a

judgment.

The arbitrator can be any lawyer

who has pursued a specialization before the

Ministry of Justice and is required to be

recognized as such. Let's

continue, please, next:

Article 63, National and Foreign Investment.

What do we understand

by national and

foreign investments? Article 63 establishes that

national and foreign investment are

subject to the same conditions. The

production of goods and services and

foreign trade are free. Again,

the word free. If another country or countries

adopt protectionist or

discriminatory measures that harm the

national interest, the state, in

defense of this, may adopt analogous measures.

In every contract between the state and

public law entities with

foreigners domiciled in the country, the

submission of these parties to the laws and

jurisdictional bodies of the Republic

and their waiver of any claim are stipulated.

Diplomatic

contracts of a financial nature can be executed under national jurisdiction.

The State and other

public entities can submit

disputes arising from

contractual relationships to tribunals established

under treaties in force. They can

also submit them to national or

international arbitration as

provided by law. What do we understand by

this issue of national and

foreign investment? I believe that what

the legislator intended is for

the State to avoid

political, social, economic, or

cultural obstacles that affect equality of

treatment among people. In this way,

advantageous positions for

national investment over

foreign investment are avoided. This is clear

in the case that other countries adopt

non-discriminatory or protectionist measures.

Then, only in

that case could the Peruvian State

also adopt non-discriminatory or protectionist measures

in defense of the interests of

nationals.

Note that Article 53

of the Constitution

establishes that the State,

as well as other public entities,

can submit disputes arising from their

contractual relationships

to tribunals established under

treaties in force,

and that they can also submit to

national or international arbitration.

Logically, foreigners prefer

international arbitration. For example, if it's

an Argentine company

doing work in Peru, they'll

probably look for a

Colombian arbitrator. That's the trend.

Next, please,

regarding the possession and disposal of

foreign currency, the state guarantees the

free possession and disposal of

foreign currency. This is a very

short article, but its

justification lies in

the interventions we've

had in coups d'état

by presidents who have

nationalized the banks and opted

to prohibit

the possession of foreign currency.

For example, in the government of Juan

Velasco Alvarado, when the coup

d'état took place, within his Inca Plan One, one

of the proposals was the nationalization

of the banks and the prohibition of holding

foreign currency. Those who had

accounts in Banco El Mole in

foreign currency had their accounts converted to soles at

the exchange rate that the government

set, and they were also not allowed to

withdraw their money in full, but only in

small amounts. This issue of

bank nationalization has occurred

not only in

dictatorial governments; in Alan García's first government,

this

issue of bank nationalization was also pursued. And

then it was

believed It is advisable to incorporate this

article to ensure that the state

guarantees the free possession and

disposal of foreign currency.

The following article, B 65,

Consumer Protection, states that

the state defends the interests of

consumers and users. To this end, it

guarantees the right to information

about the goods and services available to

them in the

market. It also

specifically safeguards the

health and safety of the population.

Here we are talking about an article that

protects the consumer. The

consumer or user is the end goal of all

economic activity. Why? Because the

user is the one who completes the

economic cycle when they satisfy their

needs and increase their well-being.

Not all economic activities are done

seeking or oriented towards the

consumer. The supplier is the

natural or legal person who habitually

offers or distributes their products or

services. In this sense, the state must

guarantee the right to information

that consumers have, as well as

the right to health and

safety of people in their

capacity as consumers.

In this regard, we have INDECOPI,

the National Institute for the Defense of

Competition and the Protection of

Intellectual Property, which is

responsible for combating

monopolistic practices, as well as practices that

generate unfair competition and all

those... that affect

market agents, and especially consumers.

Next, please.

Here I have summarized

all the important topics we have

covered in this

economic system:

free private initiative, the concept we

have explained, as well as

freedom of labor and freedom of

enterprise, commerce and industry; the state

promotes small businesses; it is worth

mentioning that we have

many small businesses that represent

an important sector in the

national economy; economic pluralism;

equal treatment of

business activity; free possession

of foreign currency; the

subsidiary role of the state. I hope that has been

clear; free competition;

freedom to contract; the contract law

as contractual security; free

foreign trade; legal equality

of investment; the defense of

consumers and users.

Well, in conclusion,

the economic results

show that we are better off than before.

If we compare ourselves to the 80s and

90s, poverty has decreased;

consumption has increased; in

general, the population has a

better quality of life. But above all,

something very important: we have changed the

image of our country in the world so

that foreign investors

come to our country with confidence. This has

taken a lot of effort over all

these years, and it would not be possible for all

this effort to be wasted. Losing due to

measures that are not very well thought out. That is

all I have to say regarding

the economic system, and I thank

Professor David again for his

invitation and the faculty authorities. Thank you very much,

Professor. Please

excuse the inconveniences we have been having,

but these things happen sometimes.

Your presentation

has been constantly available on our

social media, and what I

would appreciate, Professor, is if you could elaborate

a little more. I know that

this topic, which you have

presented didactically as a timeline,

begins with a constitutional process from the

previous century, that's correct. But every

five years, a

controversial agreement, a debate, or a

rather contentious political discussion arises,

in both senses,

regarding the issue that you have so

magnificently described today: whether we change

or

modify the Constitution, or this

system, or this article of the

Constitution, considering that,

firstly, we are in the 21st century and we

are in a completely

different situation. What is your opinion, dear

Doctor? It

is a question I was expecting

because, indeed, the issue of the

economic system is part of the great... There is a

strong desire among a sector of the

population for it to be modified,

but we must not forget that it is

precisely thanks to these

articles that private investment was attracted.

If the state cannot create businesses and

we have to rely on

private investment, then

the articles must be maintained insofar as they

guarantee investors that

their assets will be respected and

their agreements will be honored. That is why

I made a

caveat when I asked what

happens with those contracts that are

harmful. It's not that the laws are bad; it's that

people are not

properly applying the rules.

Because the Constitution itself establishes

that there must be control. The law of

supply and demand is not bad; it's good

that we are the ones who regulate the

market. That's fine, but the state must

be vigilant to prevent monopolies,

hoarding, and

abuse of power.

Sometimes, precisely, that is where

the superintendencies are born: the

Superintendency of Banking is created to

safeguard users, the

Superintendency of the Securities Market is created, and so on.

Indecopi, in the Sinergin,

Sunafil, and all these institutions

that are supposed to protect us. I

totally agree, Doctor. You,

as a person of law, then

explain to us that the main

concept to consider is

freedom. No, but a concept of

participatory freedom, where the state

takes on that role of hinge, not of mediator,

no, but not of intervener, no, because

clearly, many times those are the

mistakes that have been made over

time and in part of history, which

we all know. And I also

said that no freedom

is absolute, not even in the

economy, because it is

limited to the social good. We are in a

social market economy where,

above the possible

economic rights that the company may be interested in, the well-being

of the community, the well-being

of the people, the environment,

hygiene, safety, and all that, is paramount. Yes, I

totally agree, Professor.

So, to the people who are

listening, to the professionals, to

the micro-entrepreneurs, in relation to this

system, what do you think they

should take into account to

generate, for example, today you mentioned,

not in a commercial context, not taking

into account the

contractual aspect, not the issue of arbitration,

how... How would you convey this so

that people in the world

of business management, or those managing

companies daily, can take it into

account? This reference you mentioned

in your presentation, Professor,

regarding arbitration, has a sad history. Specifically, a

company

was winning arbitrations because they were mishandled.

So, it's not that the rule is bad,

but rather that people are abusing

the right and obtaining illegal benefits. The

arbitration process itself isn't bad; it's

those who have misused it to

obtain personal gain. There needs to be

oversight

again. So, would you recommend that

these people—excuse me, these companies,

this is very comprehensive—or

accounting professionals, take into

account the concept of

arbitration, its proper use, and its

correct application? Because that, in one way or another, would

expedite

dispute resolution processes and

lead to a more immediate solution at a

lower cost. Yes, definitely no one

wants to go to court because,

unfortunately, the courts are

overwhelmed with cases.

Our tendency is to

litigate everything, and we don't realize

that the courts aren't currently

working efficiently on this issue.

The pandemic is even worse,

yes, professor, that's correct. A good

alternative is conciliation.

Conciliation is excellent, but it doesn't

fit with our way of

being. I think there should be greater

dissemination of the benefits of

conciliation. And

tell me, professor, since you touched on the subject

of conciliation, and since

you also clearly clarified it in the

concept of arbitration, is conciliation a

procedure prior to a

judicial process? And for the conciliation process to have a

certain validity, it should be required that it be

included in all

contracts, or all contracts

related to it, in a legal way. I'm

not necessarily going to give you a

classic example of conciliation so you can

see how beneficial it is.

A father arrives home and finds

his two daughters fighting over an orange.

What does the father do? He takes the orange, cuts it in

half, and gives one

half to each of them. For him, that's justice.

But the daughters are still sad.

But what happens now? They each don't have a

half. One says, "I only wanted

the juice of the orange," and the other says, "

I only wanted the peel to

make a cake."

If that father had... I would have sat them down

to discuss

what they wanted first, because they were

fighting, and they would have listened to each other.

Each would have obtained double the

benefit they were receiving.

And that's how a judge acts, a judge

who is represented by the blindfold,

the scales in one hand

and the sword in the other, symbolizing

equal shares. But equal shares aren't always what

one wants, which is why

a whole campaign about

conciliation is needed. Conciliation is an

excellent institution, underutilized.

Through a law, they've tried to

require it to go to court.

And people who do it pay for

conciliation only to

get the certificate that says they didn't

conciliate, and then they go to

court anyway, skipping a

very interesting stage that could

help them solve their problem.

That's right, Doctor. That's right. Well,

Professor Socorro,

thank you very much for your

time, for your location, and

above all for reminding us that

this issue doesn't necessarily have to be

debated every five years, but rather rethought and

reformulated thoughtfully

every so often,

also considering the current context, especially the

economic context. That post-pandemic

society has been experiencing quite a few problems, right?

That's right. Thank you very much for the

invitation. At your service whenever you like.

Very well. To the entire accounting community in

general, before saying goodbye, we

wanted to reiterate that we ask you to please

watch our

Friday talks, which are free webinars

where we cover different topics. Next

week we'll be discussing a tax issue. Also, we're back again

and would like to

invite you to participate in

the various courses and specializations offered by

the Faculty of

Accounting Sciences and our Dean, Dr.

Dante Toupilco. These include

courses on International

Financial Reporting Standards,

taxation, finance, and

courses for those

starting out in accounting, such as

accounting assistants or payroll management.

We also have an upcoming course on

cost accounting starting next

week, and our

first diploma program in credit

and collections. We will be informing the

entire community through

our website and other social media channels. We

reiterate our availability and

thank you very much, Professor. On behalf of

our Dean, Dr.

Dante Toupilco, and the

Cerceus administration, we kindly thank you for your

participation and will send

certificates of

participation to the entire community.

Thank you very much for

listening, and have a good weekend,

Professor. Take care. Goodbye.