The Effects of Exchange Rates and Commercial Policy on Agricultural Incentives in Colombia, 1953-1978

Download or read book The Effects of Exchange Rates and Commercial Policy on Agricultural Incentives in Colombia, 1953-1978 written by Jorge García García and published by Intl Food Policy Res Inst. This book was released on 1981 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extract: Since the 1930s Colombia's economic policy has been directed to reaching three goals; to maintain self-sufficiency in food, to substitute domestically produced manufactured goods for imports, and in the 1970s to correct an ailing balance of payments by promoting exports. This paper describes Colombia's chosen path of import substitution which reflects that of so many Third World countries. It traces the effect on agriculture of tariffs, severe import restrictions or prohibitions, an overvalued national currency (peso), and export subsidies. The time span of the report is divided into two periods, 1953-67, when import substitution was the primary aim of foreign trade policy, and 1967-78, when exports were encouraged to aid the trade balance.