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The Political Economy of Fiscal Reform: The Case of Colombia, 1986-2006

Mauricio Olivera (), Monica Pachon and Guillermo Perry

No 4674, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper explores the characteristics of the political economy process that conditioned the scope and success of the combination of fiscal reforms before and after Colombia’s 1991 constitutional reforms. Using formal analysis of reforms and interviews with actors, reforms in taxation, decentralization, the budgetary process and pensions are examined in times of political crisis, economic crisis, and economic boom. The results generally confirm the hypothesis that increased political fragmentation and limited unilateral executive power after the 1991 reforms restricted the extent of reforms, particularly in tax law. Nonetheless, the enactment of piecemeal reforms was encouraged by crisis conditions.

Keywords: Policymaking process; Political economy; Structural reform; Colombia (search for similar items in EconPapers)
JEL-codes: H20 H71 H77 (search for similar items in EconPapers)
Date: 2010-05
New Economics Papers: this item is included in nep-his, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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