Colombia and the Coffee Export Upsurge During the 1920's Decade. VI. 'Inward Growth Strategy and Industrialization'

Abstract

The stages leading to modern external growth in Colombia had no historical paragon different with the decade of the twenties where foreign revenues were oriented mainly to satisfy needs of a new expanding market economy. Tariffs didn't comply with a protectionism conventional policy. Instead were oriented to improve treasury revenues while margins moved occasionally to determine firm's incomes. Import substitutions as an economic concept enriched discussion some decades later nonetheless during the expansionary and declining economic coffee cycle manufacturing flourished on activities where was easy to produce activity also protected by transport costs. After the Great Depression government introduced Law 62 of 1931 to frame protection to industrial activities also improving treasury revenues. The President launched new laws oriented to regulate industrial activities according to foreign exchange availability. Gradually after the Crisis the industrial policy in Colombia pegged to tariff movements as a protective devise relegating the fiscal priority associated with this mechanism to other sources of income revenues while the forthcoming entrepreneurial class acquired a status previously deserved to the hacendado.