The Lost Decades, 1980–2000: External Debt, Structural Reforms, and a Deep Financial Crisis

Ivan Luzardo-Luna ()
Additional contact information
Ivan Luzardo-Luna: London School of Economics and Political Science

Chapter Chapter 6 in Colombia’s Slow Economic Growth, 2019, pp 107-128 from Palgrave Macmillan

Abstract: Abstract The golden decade of the 1970s was followed by a long-lasting stagnation that strongly affected the standards of living. Alongside a surge of violence, the structural reason behind Colombia’s economic stagnation was again the excessive government interventionism in the allocation of resources. The steps toward economic liberalisation of the early 1970s ceased in 1978. In the early 1980s, Chile and Colombia showed a similar GDP per capita. The former underwent outstanding productivity-driven growth from the mid-1980s onwards due to a set of policy reforms, while Colombia remained stagnant. Despite the fact that Colombia implemented similar reforms in the early 1990s, the benefits of such policies could not be fully achieved in that decade due to an expansionary fiscal policy from 1994 onwards, which culminated in a financial crisis in 1999.

Keywords: Economic stagnation; Structural reforms; Total factors productivity; Financial crisis; Chile (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palscp:978-3-030-25755-2_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030257552

DOI: 10.1007/978-3-030-25755-2_6

Access Statistics for this chapter

More chapters in Palgrave Studies in Economic History from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().