Article title Constitutional Economics and the Main Models of the State’s Intervention in Economic Freedoms
Authors
Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 5/2018
Сторінки [13-29]
DOI https://doi.org/10.33498/louu-2018-05-013
Annotation

The article defines the factors for formulating the rules based on the standards that are determinative in terms of selection of a model according to which the State interference in the economy. The author concludes that the liberal, liberal-democratic, societal and transitional models of the economy are relative and depend primarily on the balance between the principles and values, and this results into the institutional capacity of the economy and the State. The article applies a synthetic approach of research in the legal science which combines interdisciplinary, legal pluralism and values in law. The doctrine, administration of law and verification of the validity of postulates and legal constructs in the process of law administration are analyzed as a whole legal matter underlain by the values of law. From the perspective of achievements of the modern constitutionalism doctrine, in particular, the respect for human dignity and private autonomy of an individual, the article analyzes the main models according to which the State interference in the economic system. Such models are superimposed on the specific features of transitional constitutional democracies with the aim of determining an acceptable algorithm of economic reforms. Based on the analysis of the nature of the proportionality principle, the author elaborates on the constitutional aspects pertaining to the State’s interference in the fundamental economic freedoms – freedom of contract, guarantees of the right to private property, freedom to choose the profession and occupation, freedom of movement of capital, goods and services, and freedom of settlement and choice of the place of residence. As demonstrated by a comparative analysis of the models according to which the State interference in the exercise of economic freedoms through the prism of the proportionality principle, the specific measures applied by the State are entirely dependent on a certain structure of the economy, the extent of its differentiation, openness and assurance of economic freedoms. This is covered by the institutional capacity of the State, with active involvement of economic actors, to formulate, reproduce and enhance the rules and procedures that can guarantee the stability and bona fide performance of contracts. In the context of societal constitutionalism, the State acts symbiotically with society with a view to introducing the advanced economic achievements and preserving the environment, thus facilitating the sustainable development.

 

Keywords interference; economic freedoms; constitutional economics; constitutional values; constitutionalism; order; proportionality; chaos
References

List of legal document 
 

Legislation 
1. Konstytutsiia Ukrainy [Constitution of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 28 chervnia 1996 r. № 254k/96-VR (u redaktsii vid 2 chervnia 2016 r.). Vidomosti Verkhovnoi Rady Ukrainy. 1996. № 30. St. 141 (in Ukrainian). 

Cases 
2. BVerGE, 71, 183 (191) (in German). 
3. Case Lochner v. New York, 198 U.S. 45 (1905) (in English). 
4. Case Sunday Times v. the United Kingdom (no. 1), Judgment 26 April 1979, Series А, No 30 (in English). 
5. Сase Tolstoy Miloslavsky v. the United Kingdom, App. No 18139/91, Judgment 23 June 1995 (in English). 
6. Postanova Velykoi Palaty Verkhovnoho Sudu [Resolution of the Grand Chamber of the Supreme Court] vid 13 bereznia 2018 r. u spravi № 914/881/17. URL: http://reyestr.court.gov.ua/Review/72819699 (accessed: 05.05.2018) (in Ukrainian). 
7. Rishennia Konstytutsiinoho Sudu Ukrainy [the Decision of the Constitutional Court of Ukraine] vid 24 lystopada 2009 r. № 29-rp/2009. URL: http://zakon.rada.gov.ua/ laws/show/v029p710-09 (accessed: 05.05.2018) (in Ukrainian). 
8. Rishennia Konstytutsiinoho Sudu Ukrainy [the Decision of the Constitutional Court of Ukraine] vid 8 kvitnia 2015 r. № 3-rp/2015. URL: http://zakon.rada.gov.ua/laws/ show/v003p710-15 (accessed: 05.05.2018) (in Ukrainian). 
9. Rishennia Konstytutsiinoho Sudu Ukrainy [the Decision of the Constitutional Court of Ukraine] vid 8 chervnia 2016 r. № 3-rp/2016. URL: http://zakon.rada.gov.ua/laws/ show/v003p710-16 (accessed: 05.05.2018) (in Ukrainian). 
10. Rishennia Konstytutsiinoho Sudu Ukrainy [the Decision of the Constitutional Court of Ukraine I] vid 22 travnia 2018 r. № 5-r/2018 (accessed: 05.05.2018) (in Ukrainian). 
11. Rishennia Konstytutsiinoho Sudu Ukrainy [the Decision of the Constitutional Court of Ukraine] vid 24 kvitnia 2018 r. № 3-r/2018. URL: http://zakon.rada.gov.ua/laws/show/ v003p710-18 (accessed: 05.05.2018) (in Ukrainian). 
 

Bibliography

 

Authored books 
 

12. Epstein Richard A, Takings. Private Property and the Power of Eminent Domain (Harvard University Press 1985) (in English). 
13. Teubner G, Constitutional Fragments: Societal Constitutionalism and Globalization (Oxford University Press 2012) (in English). 
14. Brodel F, Materialna tsyvilizatsiia, ekonomika i kapitalizm. XV-XVIII st. [Material Civilization, Economy and Capitalism. XV-XVIII Centuries] t 3: Chas svitu [v 3: Time of the World] (Osnovy 1997) (in Ukrainian). 
15. Hayek F A von, Pravo, zakonodatelʹstvo, svoboda: Sovremennoe ponymanye lyberalʹnykh pryntsypov spravedlyvosty y polytyky [Law, Legislation, Freedom: A modern Understanding of the Liberal Principles of Justice and Politics] (IRISÉN 2006) (in Russian). 
16. Kondratʹev N, Bolʹshye tsykly konʹyunktury y teoryya predvydenyya: Yzbrannye trudy [Big Cycles of Conjuncture and the Theory of Foresight: Selected works] (Ékonomyka 2002) (in Russian). 
17. Luman Niklas, Obshchestvo kak sotsyalʹnaya systema [Society as a Social System] (Lohos 2004) (in Russian). 
18. Pohrebnyak S, Osnovopolozhni pryntsypy prava (zmistovna kharakterystyka) [Fundamental Principles of Law (Content Characteristic)] (Pravo 2008) (in Ukrainian). 
19. Rabinovych P, Prava lyudyny i hromadyanyna u Konstytutsii Ukrainy (do interpretatsii vykhidnykh konstytutsiinykh polozhen) [Human Rights and Citizen in the Constitution of Ukraine (to the Interpretation of the Original Constitutional Provisions)] (Pravo 1997) (in Ukrainian). 
20. Savchyn M, Suchasni tendentsii konstytutsionalizmu v konteksti hlobalizatsii ta pravovoho pliuralizmu [Contemporary Tendencies of Constitutionalism in the Context of Globalization and Legal Pluralism] (RIK-U 2018) (in Ukrainian). 
21. Sedlachek T, Ekonomika dobra i zla. Slidamy liudskykh poshukiv: vid Hilhamesha do finansovoi kryzy [The Economy of Good and Evil. In the Footsteps of Human Searches: from Gilgamesh to the Financial Crisis] (Vydavnytstvo Staroho Leva 2017) (in Ukrainian). 
22. Shmidt-Assmann H, Zahalne administratyvne pravo yak ideia vrehuliuvannia. Osnovni zasady ta zavdannia systematyky administratyvnoho prava [General Administrative Law as an Idea of Regulation. The Basic Principles and Tasks of the Taxonomy of Administrative Law] (vyd 2-e, K.I.S. 2009) (in Ukrainian). 
23. Shumpeter Y, Teoriia ekonomichnoho rozvytku. Doslidzhennia prybutkiv, kapitalu, kredytu, vidsotka ta ekonomichnoho tsyklu [Theory of Economic Development. Profit, Capital, Loan, Interest and Economic Cycle Research] (Kyievo-Mohylyanska akademiia 2011) (in Ukrainian). 
24. Taleb Nassym Nykolas, Chornyy lebedʹ. Pod znakom nepredskazuemosty [Black Swan. Under the Sign of Unpredictability] (Kolibri 2010) (in Russian). 
25. Zyppelius R, Filosofiya prava [Philosophy of Law] (Tandem 2001) (in Ukrainian). 

Edited books 
26. Teubner G, ‘“Global Bukovina”: Legal Pluralism in the World Society’ in Teubner G (ed), Global Law without a State (Dartmout Gower 1997) (in English). 
27. Sadurski W (ed), Rights before Courts. A Study of Constitutional Courts in Postcommunist States in Central and Eastern Europe (Springer Publishing 2005) (in English). 

Encyclopedias 
28. Itwell J and Milgate M and Newman P (ed), Ékonomycheskaya teoryya [Economic Theory] (INFRA-M 2004) (in Russian). 
29. Protsenko O ta Lisoviy V (eds), Liberalizm: Antolohiya [Liberalism: Anthology] (2-he vyd, pererob, Prostir, Smoloskyp 2009) (in Ukrainian). 

Articles 
30. Rozmaynskyy Y, ‘K formyrovanyyu postkeynsyanskoy teoryy hosudarstva’ [To the Formation of the Post-Keynesian Theory of the State] [2010] 1(8) Terra economicus. Ékonomycheskyy vestnyk Rostovskoho hosudarstvennoho unyversyteta 13 (in Russian). 
31. Shevchuk S, ‘Znachennia zahalnopravovoho pryntsypu proportsiinosti dlia vyznachennia konstytutsiinosti obmezhen shchodo realizatsii konstytutsiynykh prav i svobod (zarubizhnyi dosvid)’ [‘The Significance of the General Legal Principle of Proportionality to Determine the Constitutionality of Restrictions on the Implementation of Constitutional Rights and Freedoms (Foreign Experience)’] [2000] 1(20) Visnyk Akademii pravovykh nauk Ukrainy (in Ukrainian). 
32. Shloer B, ‘Pryntsyp adekvatnosti v yevropeiskomu ta ukrainskomu publichnomu pravi’ [Principle of Adequacy in European and Ukrainian Public Law] [2003] 3(8) Ukrainskyi pravnychyi chasopys (in Ukrainian). 

 

Electronic version Download