Colombian Coffee Politics and Trade Policy in the Next Millennium

30 Pages Posted: 2 Jul 2004  

José Pérez-Toro

Universidad Jorge Tadeo Lozano

Date Written: 2004

Abstract

A deep archive enquire reveals to the author that the management of the Colombian Coffee Industry during the last quarter of a century did not accomplish the best management practices as the Williamson and Coase fundamental transaction cost theorem proclaimed. This iron management theorem was defeated by institutional deceit. Allocating coffee economic surplus with purposes other than commercial left the major Colombian Industry at the margin of world coffee business as a purposeful policy organized by the Federation of Coffee Growers of Colombia did not materialize in the "internationalization" of the industry as suggested by new microeconomic's theory. As consequence of "Clientelista" politics adopted by Colombia coffee ruling barons, the industry as such did not participate and will be out of the world value chain business where US$ 43 billion out of total US$ 50 billion revenue is shared by market makers and not by third world producers.

Notes: Downloadable document is in Spanish.

JEL Classification: F15, F23, N16, O54

Suggested Citation

Pérez-Toro, José, Colombian Coffee Politics and Trade Policy in the Next Millennium (2004). Available at SSRN: https://ssrn.com/abstract=560761 or http://dx.doi.org/10.2139/ssrn.560761

José Pérez-Toro (Contact Author)

Universidad Jorge Tadeo Lozano ( email )

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

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