Privilege: a word in search of contents

It can involve fiscal, administrative measures and decentralization, as well as economic policies in regard to trade and industry. But not all measures depend exclusively from the Executive power. Many depend from Congress, where political movements and pressure from lobbying groups can have great influence in the creation of a privileged law. Therefore, in spite of all the political will the present Executive power may have, as well as and its party's majority in Congress , a real reduction or elimination of privileges will require that other political sectors take part in this decision.

Among the decisions which in one way or another remain in the Executive's hands is the export, import tax policy issue. In other cases like the one of eliminating monopolies in the electrical and telecommunications services, the abolishment of privileges require Congress' intervention, since it depends on changes to internal laws in the National Electricity Institute (INDE, for its abbreviation in Spanish) or the Telecommunications Company (Guatel, for its abbreviation in Spanish).

At present, the import taxes policy is being discussed in regard to the globalization process and the Central American Economic Community. Some groups are in favor of the total elimination of taxes or a standard, even rate, while some consider this a harmful measure for the local industry, which means unemployment, less local investment and a series of immediate problems.

What seems to be a fact is that the Latin American trends like protection and incentives to local industries through tax barriers or other kind of these are weaker now, to the extreme that some businessmen consider it a fact that the only way to subside as a local industry in a long term basis will depend on competitiveness of their industries in the international market

The privatization issue can also create discussion in regard to the establishment of privileges. When a State industry changes hands to become a private one, but enjoys the privilege to be the only one offering the service and to have the whole infrastructure and capacity of the former public enterprise, it would appear as private monopoly in a privileged situation in regard to the potential competition.

From a legal, political perspective, the concepts "privilege" and "equality under the law" are opposite poles. Nevertheless, the analysis of these concepts, legally as well as politically confine (circumscribe) abstract ideas, with no doubt complex, but difficult to apply in concrete cases.

A modern theory of law and economy, known as Public Choice has created constitutional procedures which tend to reduce to a minimum the possibility to legislate privileges. Its suggestions are as follows: 1. General and abstract laws, 2. The rule of consensus and unanimity. 3. Administrative decentralization.

To eliminate privileges is not an easy task. In some cases, like the ones regarding import taxes, its elimination or reduction could be accomplished by the Executive power. In other cases, the participation of Congress is needed. Nevertheless, other Latin American countries with similar political systems have made it possible. But what is yet important is to understand what privileges are all about and what are the reasons for their existence.