Review on the Export Promotion Policies Launched by the Colombian Government. 1967-1980
17 Pages Posted: 1 Nov 1999
Colombia initiated in 1959 a successful and outrageous structural transformation oriented to encourage diversification of the productive capacity of the country implying defense of world commodity prices, higher rate of industrialization process and the promotion of exports. Government oriented export promotion of tradable goods other than coffee, gold and oil industry, becoming a success history in the promotion of country's export lead growth. State straightens this definitive change of development model intervening practically every economic variable to encourage a different accumulation process. Government mediated the foreign exchange market mechanism to preserve purchasing power parity of exports after a severe program of mandatory rules to rationalize foreign reserves. Balance of payments returned to dynamic equilibrium and massive amount of country's savings were oriented to diversify the economy, and promote exports benefiting this activity via PROEXPO-credit resources and CAT-tax exempting Colombian higher value added exports other than coffee. Imported capital goods and inputs were also encouraged via drawback mechanisms. Economic integration with Andean bloc countries followed and marketing government promoting agency located in main importing countries transformed secular Colombian inward mentality.
JEL Classification: F14
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