DOCSLIB.ORG

The Political Economy of Financing Late Development: Credit, Capital and Industrialisation; Colombia 1940–67

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Political Economy of Financing Late Development: Credit, Capital and Industrialisation; Colombia 1940–67 The London School of Economics and Political Science The Political Economy of Financing Late Development: Credit, Capital and Industrialisation; Colombia 1940–67 Carlos Andrés Brando A thesis submitted to the Department of Economic History of the London School of Economics for the degree of Doctor of Philosophy, London, September 2012 Declaration I certify that the thesis I have presented for examination for the MPhil/PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). e copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. is thesis may not be reproduced without the prior written consent of the author. I warrant that this authorization does not, to the best of my belief, infringe the rights of any third party. I declare that my thesis consists of words. Abstract Accounts of economic development during mid-twentieth century have been dominated by import-substituting industrialisation (ISI) and/or state-led industrialisation frameworks. is literature attaches considerable importance to such policy areas critical to manufac- turing as: trade and tariffs, foreign exchange and the promotion of credit. According to this view, industrialisation became an official goal and in many developing economies governments committed to it seriously. Focusing on Colombia, this dissertation chal- lenges conventional wisdom. It demonstrates that the Colombian state did not provide financial aid, or implement deliberate trade-protectionist support, for industrialists to the degree hitherto argued. A distinct political-economy configuration, in which small-scale agriculturalists, particularly coffee exporters, wielded significant power within the state, meant that the type of distortive pro-ISI macro policies pursued in other Latin American economies were eschewed. Industrialisation proceeded apace in Colombia, but this was chiefly a market- or private-led phenomenon. e methodology employed to substantiate this claim is not comparative, yet fre- quent references are made to other Latin American nations to serve as benchmarks and counterpoints. New archival material, both quantitative and qualitative, is combined in novel ways to substantiate the original, revisionist interpretations advanced in the thesis. Policy-makers, targeting the twin challenges of managing external-account pressures and sustaining fiscal revenue, rather than promoting inward-looking development, best explain moderate levels of tariffs and slight overvaluation of the currency observed in Colombian trade policy. e heretofore untold history of the Institute for Industrial Development, a direct supplier of venture capital, shows a government agency with major organisational weaknesses, incapable of fulfilling its legal mandate, least of conforming to the major role attached by the literature as key agent for industrialisation. Findings regard- ing credit demonstrate that neither ordinary nor subsidised credit flowed to manufacturing to the extent previously thought. Patterns of legislated credit, sector-targeted banking and privileged access to the Central Bank, all show that agrarian ventures, not industrialists, were the recipients of subsidised official financing. A growing incompatibility between the financial requirements of advanced industrialisation and the clientelistic nature of the domestic polity that had to cater for the needs of agrarian groups, prevented policy elites from adopting a pro-manufacturing stance in financial and credit policies, even had they so wished. A mis viejos, obviamente: Maritza Salamanca & Pascual Brando Acknowledgements I take delight in expressing my gratitude to the persons and institutions that supported this research project. First and foremost, Professor Colin M. Lewis provided unbeatable supervision. His advice was sharp and generous, and took many forms — chapter drafts bursting with multi-coloured scribbles at every page-turn only gradually became my favourite. Colin remained cool, calm and clever when I did not. e department of Economic History is a unique place to conduct research and I have been privileged to become part of this community during these years. Constructive criticism from staff helped in shaping the argument further. For this I thank Stephen Broadberry, Janet Hunter, Tirthankar Roy and Max Schulze. Alejandra Irigoín went beyond duty with professional guidance. To her I am most grateful. Linda Sampson helped with necessary administrative procedures at critical moments. Outside the LSE a number of scholars made valuable suggestions. I am thankful to all of them. Christopher Abel and Albert Berry kindly shared primary material that made it into the final document. James Wilson, Silvia Sacchetti, Marcelo Rougier, Salomón Kalmanovitz, Edwin Rivera, Miguel Urrutia, Carlos Dávila, Eduardo Sáenz-Rovner, Decsi Arévalo and Stefano Battilosi enticed me to enquire further. Stefan Bauchowitz offered excellent editorial advice. Franciso Piedrahita, Julio Manuel Ayerbe, Luis Morales Gómez and Dora Salgado made space in their agendas to attend my calls for contacts, appointments and interviews. e Ronald Coase Institute organised and sponsored two meetings (Moscow and Los Angeles) in which valuable exchanges made me revise and rethink substantial parts of the argument. I am indebted to Mary Shirley, Alex and Lee Benham, Sebastian Galiani, Philip Keefer and John Nye. Friends at the LSE and beyond made the research experience (and non-PhD life) even more interesting. For many moments of laughter, wit and support I thank: Alejandro Bedoya, Mariana Brando, Padraig Brown, Alejandro Castañeda, Juliana Chávez, Ting- Ting Chang, Martín Cordovez, Clemencia Corradine, Rolando De la Guardia, Cristián Ducoing, Xavier Durán, Maria Paula Echeverri, Vincent Fardeau, Fabian Garavito, Nicolas Grinberg, Manuel Iturralde, Daniel Jiménez, Ulas Karakoc, Heinrich and Johan Kramarski, Nicolas Letts, Daniel Linsker, Beatriz Mejía, Julia Mensink, Andrés Palacio, Rodrigo Paris, Esteban Piedrahita, Juliana Postarini, David Rothwell, Jorge Salgado, Lorenzo Sargentti, Leo Shiu, George St. Clair, Felipe Tamega, Jaime Torres, Coskun Tuncer, Monica Unda, Leo Weller, Lales and the LSE team. Paula, Peter and Steve at George the IV eased the transition from work to home. Lastly and most importantly, gracias totales to my indulgent parents for their en- thusiasm and encouragement to go abroad, study further and adventure more. And to Federico, Luisa — and the youngest member of the family — Alejandra, who also cheered along the way. Finally, to Christine Kahmann, who learnt more about Latin America’s industrialisation than she ever wanted to know, loving thanks for her editorial skills and for making daily life in London so good. Contents Introduction 13 1 Relevant Literature Review 21 Late-Industrialisation and the State....................... Finance and Economic Development...................... Conclusions................................... 2 Colombia Since 1850: Endowments, Economics and Politics 59 Basics: Geography and Transportation ..................... Further Obstacles to Growth.......................... Trade and Growth ............................... From Coffee to Industry: Origins, ‘Take-Off’ and Development . e State and Politics.............................. Conclusions................................... 3 Colombia in Latin America: Import Substitution and the State 98 Colombia’s ‘Broad Distinctness’......................... ISI: Definitions, Features and Literature .................... Alleged Commercial Protectionism....................... Exchange Rate and Inflation .......................... Conclusions................................... 4 The Institute of Industrial Development: Its History as Direct Industrial Promoter 151 Historiography on IFI ............................. IFI: Mission, Modus Operandi and Finances.................. Towards a Preliminary Assessment of IFI.................... Pattern of Investment: Funding......................... Pattern of Investment: Autonomy........................ Case Study: Valle & Cauca Coal Plant ..................... Government Intervention on IFI’s Decision-Making: Historical Evidence . Conclusions................................... 5 Industrial Credit, the State, and the Financial System 198 Credit to Industry: the Colombia Literature .................. Credit to Industry: e Voice of the Sector and Beyond . C e Institutional Financial Framework..................... e Sectoral Allocation of Credit........................ Conclusions................................... 6 The Political Economy of Banking-Credit Allocation 241 Interests and Preferences of Elected Politicians . e Political Nature of Economic Policy .................... e Central Bank................................ Power of Credit Demandeurs and Suppliers................... Public Banking for Clientelistic Politics..................... Supply Meets Demand............................. Exploring the Road Not Taken: What If .................... Conclusions................................... 7 Conclusions 296 Bibliography 304 A Appendix 337 List of Figures . Colombia: Evolution of Main Exports, –........... . Coffee Exports, –....................... . GDP Composition: Structural Change Underway – . . Colombia: Evolution of Tariff Rates & Fiscal Yields, –
Load more

Recommended publications
  • The U.S.-Colombia Free Trade Agreement: Economic and Political Implications
    Order Code RL34470 The U.S.-Colombia Free Trade Agreement: Economic and Political Implications May 1, 2008 M. Angeles Villarreal Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division The U.S.-Colombia Free Trade Agreement: Economic and Political Implications Summary Implementing legislation for a U.S.-Colombia Free Trade Agreement (CFTA) (H.R. 5724/S. 2830) was introduced in the 110th Congress on April 8, 2008 under Title XXI (Bipartisan Trade Promotion Authority Act of 2002) of the Trade Act of 2002 (P.L. 107-210). The House leadership considered that the President had submitted the implementing legislation without sufficient coordination with the Congress, and on April 10 the House voted 224-195 to make certain provisions in § 151 of the Trade Act of 1974 (P.L. 93-618), the provisions establishing expedited procedures, inapplicable to the CFTA implementing legislation (H.Res 1092). The CFTA is highly controversial and it is currently unclear whether or how Congress will consider implementing legislation in the future. The agreement would immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. An additional 7% of U.S. exports would receive duty-free treatment within five years of implementation and all remaining tariffs would be eliminated within ten years after implementation. The agreement also contains provisions for market access to U.S. firms in most services sectors; protection of U.S. foreign direct investment in Colombia; intellectual property rights protections for U.S. companies; and enforceable labor and environmental provisions. The United States is Colombia’s leading trade partner.
    [Show full text]
  • World Bank Document
    APPENDIX III No. E llla RESTRICTED Public Disclosure Authorized This report is restricted to use within the Bank. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT •Public Disclosure Authorized RECENT DEVELOPMENTS IN THE ECONOMY OF COLOMBIA October 19, 1950 •Public Disclosure Authorized Public Disclosure Authorized Economic Department Prepared by: Jacques Torfs COLOMBIA ESSEa~IAL STATISTICS Area: 450. 000 square mile s. Populat_ion (1949): 10.5 million. Rate of increase: 2.1% per annum. Currency: Unit: Peso. furfty: 1 .. 95 pesos equals US$. (51.3 cents equals peso). Trade: I Impo rt s 1948: ( c • i . f • ) US$ 346.0 million. Imports 1949: (c.i.f.) uS$ 252.0 million. E&Ports 1948: (f.o.b.) uS$ 286.0 million. Exports 1949: (f.o.b.) US$ 303.0 million • Budget: • --TOtal expendi tures 1948: Ps.$ 427 million. Total expenditures 1949: Ps.$ 449 million Total revenues 1948: Ps.$ 339 million~ Total reV'enues f949": PS.$ 403 million. External Debt: (IJec. 31, 1949) (including undi sbursed commitment) Principal, National Bonded Debt: .. : - US$ 47.9 million. (of '~hich Sterling bonds US$ 6.2 million) Prlncipal, otnel' National: US$ 56.1 million. (including Exim-IBRD) llipartmental and 1:".nicipal, ~ong-term debt: US$ 42.2 million. E.xport-Impo;·~ Bank Debt: (Sept. 30, 1950) Authorized (not including past operat ions) : uS$ 54.1 million. • Disbursed: US$ 36.9 million. "OUtstanding: US$ 2203 million. Balance not yet di sbursed: US$ 17.2 million, Co st-of-L1 vinE; I ndex: (Raga ta) (FeD. 1937 equals 100) December, 1948~ 285 Y December, 191.~9: 304 July, 1950: 386 Tot a1 Gol d and Exchange Be serve s: December, 1948: US$ 88 million.
    [Show full text]
  • 2003-08 the Interface Between Domestic and International Factors in Colombia's War System.Pdf
    Working Paper Series Working Paper 22 The Interface Between Domestic and International Factors in Colombia’s War System Nazih Richani Netherlands Institute of International Relations ‘Clingendael’ Conflict Research Unit August 2003 Netherlands Institute of International Relations ‘Clingendael’ Clingendael 7 2597 VH The Hague P.O. Box 93080 2509 AB The Hague Phone number: # 31-70-3141950 Telefax: # 31-70-3141960 Email: [email protected] Website: http://www.clingendael.nl/cru © Netherlands Institute of International Relations Clingendael. All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holders. Clingendael Institute, P.O. Box 93080, 2509 AB The Hague, The Netherlands. ã Clingendael Institute 3 Table of Contents Foreword 5 Abbreviations 7 I. Introduction 9 II. Multinational Corporations and the War System’s Economy 11 2.1. Multinationals and the Guerrillas 13 2.2. Multinational Corporations and the State 14 2.3. Multinationals and the Paramilitaries: Autodefensas Unidas de Colombia (AUC, the United Self-Defences of Colombia) 14 III. International-Regional Networks and Commodities Fuelling the Internal Conflict 17 3.1. Narcotrafficking 17 3.2. The State Hegemonic Crisis and Narcotrafficking 20 3.3. Ransom/Kidnapping, Gold, Emeralds and the Arms’ Trade 22 3.4. Colombia’s Conflict and the Regional Nexus 25 3.5. The United States’ Policy: ‘Plan Colombia’ and the ‘War on Terrorism’ 27 IV. International Trade Regimes and Colombia’s War System 29 4.1. The Drug Prohibition Regime and Money Laundering 29 4.2.
    [Show full text]
  • Essays on the Political Economy of Development
    The London School of Economics and Political Science Essays on the Political Economy of Development Luis Roberto Mart´ınezArmas A thesis submitted to the Department of Economics of the London School of Economics for the degree of Doctor of Philosophy, London, March 2016. 1 Declaration I certify that the thesis I have presented for examination for the PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without my prior written consent. I warrant that this authorisation does not, to the best of my belief, infringe the rights of any third party. I declare that my thesis consists of approximately 47,301 words. Statement of Conjoint Work I confirm that Chapter 2 was jointly co-authored with Juan Camilo C´ardenas, Nicol´asDe Roux and Christian Jaramillo. I contributed 25 % of this work. 2 Abstract The present collection of essays studies some of the ways in which the interaction of economic and political forces affects a country's development path. The focus of the thesis is on Colombia, which is a fertile setting for the study of the political economy of development given its long-lasting internal conflict, the multiple reforms to the functioning of the state that have taken place in the last decades and the availability of high quality sub-national data.
    [Show full text]
  • Plan Colombia: Illegal Drugs, Economic Development, and Counterinsurgency – an Econometric Analysis of Colombia’S Failed War
    This is the accepted manuscript of an article published by Wiley in Development Policy Review available online: https://doi.org/10.1111/dpr.12161 Accepted version downloaded from SOAS Research Online: https://eprints.soas.ac.uk/31771/ Plan Colombia: Illegal Drugs, Economic Development, and Counterinsurgency – An Econometric Analysis of Colombia’s Failed War Abstract: This article examines the socioeconomic effects of the illegal drug industry on economic and social development in Colombia. It shows that illegal drugs have fostered violence and have had a negative effect on economic development. This article also shows that the anti-drug policy Plan Colombia has been a rather ineffective strategy to decrease drug production, generate economic development, and reduce violence. Since this study includes both, a statistical analysis of the effects violence and illegal drugs have on the economic growth of Colombia, as well as an enhanced evaluation of the policy programme Plan Colombia, it fills the gap between existing empirical studies about the Colombian illegal drug industry and analyses of Plan Colombia. 1. Introduction In many Latin American countries there is an on-going discussion on how to tackle the economic, social and political problems that are caused not only by the illegal drug industry itself but much more by the policies that focus on repressing production and trafficking of illegal drugs. The need to reform international drug policy and change the strategy in the war on drugs was publicly emphasised by a report of the Latin American Commission on Drugs and Democracy (2009). Led by three former Latin American presidents and the Global Commission on Drugs and Democracy, the report recognised that the war on drugs in many Latin American countries has failed (Campero et al., 2013).
    [Show full text]
  • THE IMPACT of COFFEE PRODUCTION on the ECONOMY of COLOMBIA By
    University of South Carolina Scholar Commons Senior Theses Honors College 5-5-2017 The mpI act of Coffee rP oduction on the Economy of Colombia Luke Alexander Ferguson Follow this and additional works at: https://scholarcommons.sc.edu/senior_theses Part of the International Business Commons Recommended Citation Ferguson, Luke Alexander, "The mpI act of Coffee Production on the Economy of Colombia" (2017). Senior Theses. 153. https://scholarcommons.sc.edu/senior_theses/153 This Thesis is brought to you by the Honors College at Scholar Commons. It has been accepted for inclusion in Senior Theses by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. THE IMPACT OF COFFEE PRODUCTION ON THE ECONOMY OF COLOMBIA By Luke Alexander Ferguson Submitted in Partial Fulfillment of the Requirements for Graduation with Honors from the South Carolina Honors College May 2017 Approved: Dr. Robert Gozalez Director of Thesis Dr. Hildy Teegen Second Reader Steve Lynn, Dean For South Carolina Honors College FERGUSON: THE IMPACT OF COFFEE IN COLOMBIA 2 I. ABSTRACT This senior thesis seeks to determine the impact that the level of coffee production in Colombia has on economic wellbeing in the country. As a proxy for economic wellbeing in different arenas, I look at the income, health, and education variables of GDP, infant mortality rate, and secondary education enrollment. I use a Two-Stage Least Squares regression model to estimate this impact, with lagged international coffee prices and the occurrence of the fungal plant disease coffee leaf rust as instruments to account for endogeneity. The data which I use in this project include country-level indicators from the World Bank and monthly coffee production quantities from Colombia’s National Federation of Coffee Growers.
    [Show full text]
  • Redalyc.Emerging Markets Integration in Latin America (MILA)
    Journal of Economics, Finance and Administrative Science ISSN: 2077-1886 [email protected] Universidad ESAN Perú Lizarzaburu Bolaños, Edmundo R.; Burneo, Kurt; Galindo, Hamilton; Berggrun, Luis Emerging Markets Integration in Latin America (MILA) Stock market indicators: Chile, Colombia, and Peru Journal of Economics, Finance and Administrative Science, vol. 20, núm. 39, diciembre, 2015, pp. 74-83 Universidad ESAN Surco, Perú Available in: http://www.redalyc.org/articulo.oa?id=360743432002 How to cite Complete issue Scientific Information System More information about this article Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Journal's homepage in redalyc.org Non-profit academic project, developed under the open access initiative Journal of Economics, Finance and Administrative Science 20 (2015) 74–83 Journal of Economics, Finance and Administrative Science www.elsevier.es/jefas Article Emerging Markets Integration in Latin America (MILA) Stock market indicators: Chile, Colombia, and Peru a,∗ b c d Edmundo R. Lizarzaburu Bolanos˜ , Kurt Burneo , Hamilton Galindo , Luis Berggrun a Universidad ESAN, Lima, Peru b Universidad San Ignacio de Loyola, Lima, Peru c Universidad del Pacífico, Lima, Peru d Universidad Icesi, Cali, Colombia a b s t r a c t a r t i c l e i n f o Article history: This study aims to determine the impact of the Latin American Integrated Market (MILA) start-up in Received 7 May 2015 the main indicators of the stock markets of the countries that conform it (Chile, Colombia, and Peru). Accepted 18 August 2015 At the end, several indicators were reviewed to measure the impact on profitability, risk, correlation, and trading volume between markets, using indicators such as: annual profitability, standard deviation, JEL classification: correlation coefficient, and trading volume.
    [Show full text]
  • The Political Economy of Resource Conflicts and Forced Migration
    Societies Without Borders Volume 12 Article 16 Issue 1 Human Rights Attitudes 2017 The olitP ical Economy of Resource Conflicts and Forced Migration: Why Afghanistan, Colombia and Sudan Are the World's Longest Forced Migration Tarique Niazi PhD University of Wisconsin-Eau Claire, [email protected] Jeremy Hein PhD University of Wisconsin-Eau Claire, [email protected] Follow this and additional works at: https://scholarlycommons.law.case.edu/swb Part of the Human Rights Law Commons, and the Social and Behavioral Sciences Commons Recommended Citation Niazi, Tarique & Jeremy Hein. 2017. "The oP litical Economy of Resource Conflicts and Forced Migration: Why Afghanistan, Colombia and Sudan Are the World's Longest Forced Migration." Societies Without Borders 12 (1). Available at: https://scholarlycommons.law.case.edu/swb/vol12/iss1/16 This Article is brought to you for free and open access by the Cross Disciplinary Publications at Case Western Reserve University School of Law Scholarly Commons. It has been accepted for inclusion in Societies Without Borders by an authorized administrator of Case Western Reserve University School of Law Scholarly Commons. Niazi and Hein: The Political Economy of Resource Conflicts and Forced Migration: The Political Economy of Resource Conflicts and Forced Migration: Why Afghanistan, Colombia and Sudan Are the World’s Longest Forced Migration Crises Tarique Niazi, University of Wisconsin-Eau Claire Jeremy Hein, University of Wisconsin-Eau Claire ABSTRACT Afghanistan, Colombia, and Sudan are the world’s three longest producers of refugees and internally displaced persons (IDPs). Why? To answer this question, we evaluate the conventional and dominant geopolitical model of forced migration, as well as alternative models that focus on resource-based conflicts and political economy.
    [Show full text]
  • Local Dimensions of the Colombian Conflict: Order and Security in Drug Trafficking
    Working Paper Series Working Paper 15 Local Dimensions of the Colombian Conflict: Order and Security in Drug Trafficking Ingrid J. Bolívar Netherlands Institute of International Relations ‘Clingendael’ Conflict Research Unit July 2003 Netherlands Institute of International Relations ‘Clingendael’ Clingendael 7 2597 VH The Hague P.O. Box 93080 2509 AB The Hague Phone number: # 31-70-3141950 Telefax: # 31-70-3141960 Email: [email protected] Website: http://www.clingendael.nl/cru © Netherlands Institute of International Relations Clingendael. All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holders. Clingendael Institute, P.O. Box 93080, 2509 AB The Hague, The Netherlands. © Clingendael Institute 3 Table of Contents Foreword 5 List of Abbreviations 7 Executive Summary 9 I. Introduction 11 II. The Local Dimension of the Political Economy of the Colombian Conflict 15 2.1. Territorial Rationalities of the Conflict’s Protagonists 15 2.2. Guerrilla Finance 16 2.3. Paramilitary Finance 19 2.4. The Nexus of Economy, Region and Politics 20 2.5. The Colombian Economy and the Emergence of the Guerrillas 20 2.5.1. Guerrillas and Coca 22 2.5.2. Guerrillas and Legitimacy 25 2.6. ‘Plan Colombia’ 27 2.7. Developments in Urabá 28 2.8. The ELN and Oil 29 2.9. The United States and Oil 30 2.10. Control over Local Governments and Taxes 31 Bibliography 36 © Clingendael Institute 5 Foreword This paper is part of a larger research project, 'Coping with Internal Conflict' (CICP), which was executed by the Conflict Research Unit of the Netherlands Institute of International Relations 'Clingendael' for the Netherlands Ministry of Foreign Affairs.
    [Show full text]
  • Colombia in Perspective
    COUNTRY IN PERSPECTIVE COLOMBIA Colorful Colombian Bus Flickr / Pedro Szekely DLIFLC DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER COUNTRY IN PERSPECTIVE | COLOMBIA TABLE OF CONTENT Geography Introduction ................................................................................................................... 6 Geographic Regions and Topographic Features ................................................... 7 Mountains..............................................................................................................7 Plains .....................................................................................................................8 Climate ........................................................................................................................... 9 Rivers and Lakes ........................................................................................................10 Major Cities ..................................................................................................................11 Bogotá ................................................................................................................. 11 Cali ....................................................................................................................... 12 Medellín ............................................................................................................... 13 Barranquilla ........................................................................................................ 14 Cartagena
    [Show full text]
  • Towards Sustainable Peace, Poverty Eradication, and Shared Prosperity
    Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized TOWARDS SUSTAINABLE PEACE, SUSTAINABLE TOWARDS POVERTY ERADICATION, AND ERADICATION, POVERTY SHARED PROSPERITY Colombia Policy Notes Policy Colombia September 2014 September TOWARDS SUSTAINABLE PEACE, POVERTY ERADICATION, AND SHARED PROSPERITY Colombia Policy Notes September 2014 © 2014 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202–473–1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. The findings, in- ter- pretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution li- cense, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: World Bank.
    [Show full text]
  • RURAL WINDFALL OR a NEW RESOURCE CURSE? COCA, INCOME, and CIVIL CONFLICT in COLOMBIA Joshua D
    tapraid4/zl5-rest/zl5-rest/zl500208/zl52077d08g sweigarl Sϭ41 3/12/08 5:48 Art: 10932 The Review of Economics and Statistics VOL.XC MAY 2008 NUMBER 2 RURAL WINDFALL OR A NEW RESOURCE CURSE? COCA, INCOME, AND CIVIL CONFLICT IN COLOMBIA Joshua D. Angrist and Adriana D. Kugler* Abstract—We study the consequences of an exogenous upsurge in coca Sachs & Warner, 2000). Economic analyses of the resource prices and cultivation in Colombia, where most coca leaf is now harvested. This shift generated only modest economic gains in rural areas, primarily in curse typically focus on the possibilities of an export-induced the form of increased self-employment earnings and increased labor supply Dutch disease and effects on government corruption or rent- by teenage boys. The rural areas that saw accelerated coca production seeking (for example, Sala-i-Martin & Subramanian, 2003; subsequently became considerably more violent, while urban areas were affected little. These findings are consistent with the view that the Colombian Hausmann & Rigobon, 2003). The effect of natural resources civil conflict is fueled by the financial opportunities that coca provides and on the incidence and duration of civil wars provides a less- that rent-seeking by combatants limits the economic gains from coca. explored channel by which natural resources may have per- If it weren’t for the armed groups, I think we could reach a consensus verse effects. This channel features in a burgeoning political on what the region needs to progress. But all the armed groups want science literature, which includes empirical contributions by is to control the economic question, and all are willing to massacre or murder or force people from their homes to win.
    [Show full text]