Colombia and the Coffee Export Upsurge During the 1920's Decade: I. 'Institutional Changes'
32 Pages Posted: 27 Sep 1999
Date Written: 1998
The Colombian economy experienced during the first two decades of the present century a stage of rapid economic growth. The export sector encouraged by the coffee industry increased also domestic activity up to a point where aggregated demand traduced into the creation of a whole national market. During this expanding economic cycle entrepreneurial talent developed productive activities putting together accumulated savings which altogether increased capital formation. Along the first three decades of the present century Colombia drove through the road of modernization. Government institutionalized land ownership in the coffee producing regions, intervened within the economy to encourage development and helped to remove obstacles to growth. Launched government strategies in favor of private initiative traduced in the geographical integration of the country thanks to railway construction and thus derived a proximity to sea ports and world trade that facilitated a durable and stable presence. Colombia became as a consequence the world second largest coffee producer and first in the suave brand thanks also to an aggressive diplomatic and commercial campaign followed.
Note: Downloadable document is in Spanish.
JEL Classification: F4, O0, O1, O5, N2
Suggested Citation: Suggested Citation