Structural Change in a Developing Economy: Colombia's Problems and Prospects

Structural Change in a Developing Economy: Colombia's Problems and Prospects

Copyright Date: 1971
Pages: 336
  • Cite this Item
  • Book Info
    Structural Change in a Developing Economy: Colombia's Problems and Prospects
    Book Description:

    This book deals with specific problems in Colombia as a means of exploring interrelated theoretical themes in the development process. Demographic and political as well as specifically economic variables arc given consideration in the authors' analysis of the constraints on the growth of Colombia's modern sector.

    Originally published in 1971.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-7052-3
    Subjects: Economics

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Preface
    (pp. v-vi)
  3. Table of Contents
    (pp. vii-viii)
  4. List of Tables
    (pp. ix-xi)
  5. List of Figures
    (pp. xii-2)
  6. CHAPTER I Introduction
    (pp. 3-7)

    To some readers this book is mostly about Colombia. To us, the authors, it is about the development process generally. We do not pretend to have created a new “theory of development.” However, the approach is quite different from traditional treatments. We have taken three important themes of the development process, examined and modeled these in some detail, and tried to show how these themes relate to each other. These themes are: the relationship between economic development and rapid growth of population and internal migration; development as a process of structural change in a technologically dualistic economy; and policymaking as...

  7. CHAPTER II Population Growth: Investigation of a Hypothesis
    (pp. 8-44)

    The population explosion is integral to the economic development problems and processes of most of today’s less developed countries. Colombia is no exception. Indeed, in recent years she has experienced one of the world’s most rapid population growth rates, more than three percent a year in the 1960s. Because of the population explosion, almost all features of the Colombian economic, political, and social scene have changed, are changing, and will change dramatically.

    In later chapters we trace through some of the consequences of these changes. Suffice it to say here that because of the population explosion there are more children...

  8. CHAPTER III Internal Migration: A Quantitative Study of Rural-Urban Migration in Colombia
    (pp. 45-76)

    The most prominent manifestation of Colombia’s population explosion has been massive rural-urban migration. In the past twenty-five years the percentage of Colombia’s population living in urban communities has increased from 30 to 52 percent. Like the birth rate, the migration rate has widespread economic and social consequences, and although the determinants of migration are thought to be explicable in terms of people’s wants, remarkably few studies have sought to analyze internal migration to find out what exactly motivates the migrant. It is obvious that the design of policy measures to cope with the problems associated with migration and urbanization in...

  9. CHAPTER IV Manufacturing Development: Factor Endowments and Dualism
    (pp. 77-127)

    The preceding chapter observed and analyzed the flow of people from the countryside to the cities, pulled there by expectations of an improvement in the standard of living for themselves and their children. In this chapter we begin an analysis of a key sector in the cities—manufacturing. The pace at which employment opportunities, at satisfactory income levels, expand in urban communities will be in large part determined by how, and how fast, the manufacturing sector develops.

    Many of Colombia’s present economic problems are caused by, or are related to, certain characteristics of her manufacturing sector that constrain the ability...

  10. CHAPTER V Urban Income Distribution in a Dual Economy
    (pp. 128-156)

    The preceding chapter presented a model of the development of the manufacturing sector in which the transition process was marked by the coexistence of a subsector consisting of modern, relatively efficient firms paying relatively high wages with a traditional subsector operating at much lower productivity and wage levels. The process of development involves the growth of the former and the decline of the latter. In addition, the productivity gap between the two subsectors, initially large, tends to widen. This reflects the exploitation of scale economies, learning, and technological progress in the modern subsector juxtaposed against a relatively static level of...

  11. CHAPTER VI Constraints on the Growth of the Modern Sector
    (pp. 157-214)

    What lies behind the slowdown in growth of the modern sector? The proximate cause surely is that international lending provided only a temporary solution to Colombia’s balance-of-payments problem that resulted from the fall in coffee prices in the mid-1950s. As shown in Table 40, between 1958 and 1962 imports of intermediate goods (to operate the expanding modern sector) and capital goods (to permit its further expansion) increased rapidly. About 1961 an import ceiling was reached, precluding further rapid expansion.

    The import dependency of Colombian industry is the direct consequence of the compositional characteristics discussed in Chapter IV. As of the...

  12. CHAPTER VII The Political Determinants of Colombian Foreign Exchange Policy
    (pp. 215-261)

    The fall in the price of coffee in 1957–1958 was a major setback to Colombia in her efforts to achieve a rapid pace of economic development. In the face of this severe and permanent change in the terms of trade, Colombia would have had difficulty maintaining into the 1960s the rate of economic growth characteristic of the 1950s even with the wisest and most farseeing of foreign exchange policies. In fact, however, the Colombian policy response was not farseeing. The foreign exchange policy that has emerged, consciously or unconsciously, in the aftermath of the coffee crisis is in part...

  13. CHAPTER VIII Future Development Policy
    (pp. 262-312)

    We now have traced the roots of Colombia’s economic difficulties. We have considered the population explosion, the fall in the death rate that triggered it, and the factors that may begin to dampen it by reducing the number of children parents want to have. We have examined the flow of people to the cities, pushed by rapid population growth and pulled by a belief that life would be better in urban communities. The Colombian manufacturing sector, the principal factor in the dynamics of urban economic growth, has been analyzed in considerable detail. We have suggested that the manufacturing sector can...

  14. INDEX
    (pp. 313-322)
  15. Back Matter
    (pp. 323-324)