Political Institutions and Technological Change: Columbia Approaching the Year 2000

17 Pages Posted: 1 Nov 1999

Abstract

Colombia adopted the neo-liberal model with a particular criterion, accommodating it to its own way of thinking, but perhaps without much thought as to the impact of implementing a Constitutional Reform in order to manage the principal variables that determine economic policy under new legal criteria. On the business level, this marked change in the functioning of economic policy implied the emergence of new opportunities and threats, and for management, a different arena where it was necessary to establish strategic actions in order to compete in open markets. Market forces in Colombia after the opening of the economy process began to interact freely, thus determining the interest rate, exchange rate, credit and savings behaviour among others. Freeing of the labour market and foreign trade meant the presence of a radical historical change. Even more so if we consider that integral policy strategies have not been adopted to freely compete in world markets, much less adopted policy tools to confront the problem of dualism, backwardness, guerrillas, drug traffic and in general, the underdevelopment existing in many regions of the country. The productive sector has been so much absent from the discussion of this future change, in the sense that it waited trustingly to be able to prosper in a market open to internal and external competition. Has not rigorously examined what its weaknesses and threats were in the face of an increasingly globalized world. The speculative aims of some investment agents, who took advantage of liberalisation by bringing in capital that was invested through the financial sector in initiatives other than production distorted and retarded the technological change process, which for this and other reasons was not a continual deep-rooted phenomenon in the sphere of business modernisation. The paper attempt to suggests policies to encourage the technological transformation to sustain the future growth process, especially after international finance capital has been flowing abundantly to the region in the form of private investment.

JEL Classification: F4, O0, O1, 05, N2

Suggested Citation

Pérez-Toro, José, Political Institutions and Technological Change: Columbia Approaching the Year 2000. Available at SSRN: https://ssrn.com/abstract=185449 or http://dx.doi.org/10.2139/ssrn.185449

José Pérez-Toro (Contact Author)

Universidad Jorge Tadeo Lozano ( email )

Carrera 4 No 22-61
Bogota, DC Cund 1
Colombia

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