Colombian Coffee Politics and Trade Policy in the Next Millennium

Abstract

A deep archive enquire reveals to the author that the management of the Colombian Coffee Industry during the last quarter of a century did not accomplish the best management practices as the Williamson and Coase fundamental transaction cost theorem proclaimed. This iron management theorem was defeated by institutional deceit. Allocating coffee economic surplus with purposes other than commercial left the major Colombian Industry at the margin of world coffee business as a purposeful policy organized by the Federation of Coffee Growers of Colombia did not materialize in the internationalization of the industry as suggested by new microeconomic's theory. As consequence of Clientelista politics adopted by Colombia coffee ruling barons, the industry as such did not participate and will be out of the world value chain business where US$ 43 billion out of total US$ 50 billion revenue is shared by market makers and not by third world producers.