Courting Turmoil and Deferring Prosperity: Colombia Between 1960 and 1990

This study concentrates on Colombia's stabilization and adjustment experience from 1962 to 1990, a period of important changes in the country's general development strategy. The discussion covers the main policy developments since the 1950s, the effects of macroeconomic shocks on the economy, the authorities' reaction to these shocks, and the relationship between growth, adjustment, and stabilization. Chapter 1 provides the historical background needed to understand the events of the period under analysis. Chapter 2 examines the major constituent markets and other institutions of the Colombian economy. Chapter 3 deals with the short-lived current account crisis of 1966-67 and the major export boom, recession, and sharp adjustment of 1976-86. Chapter 4 considers the behavior of key macroeconomic aggregates that affect long-term growth and the consequences on growth of the macroeconomic policies adopted during these two subperiods. Chapter 5 concludes with some observations on the Colombian experience and the lessons it holds for other developing countries.