Politics%2C%20Policies%20and%20the%20Dynamics%20of%20Aggregate%20Productivity%20in%20Colombia

Working Papers

Politics, Policies and the Dynamics of Aggregate Productivity in Colombia


CODE: IDB-WP-101
AUTHOR(s): Eslava, Marcela , Melendez, Marcela
PUBLISHED: September 2009
LANGUAGE: English
RELATED TOPICS: Government and Democracy
DOWNLOAD FILE IN: English

Abstract:

This paper describes private actors’ involvement in Colombia’s policymaking process. While more transparent and formal channels are used to discuss horizontal policies, they are also less effective. The adoption of targeted policies, however, follows a faster track and depends more on political power than on those policies’ potential as engines for productivity growth. Data on policies and political characteristics across sector-region units are used to further characterize the different groups’ weight in policymaking, and the effect of the implied unbalance on aggregate productivity. Electoral weight and being represented by business groups and associations are found to be important determinants of the policy benefits received by a sector in a region, especially when activities are located in regions affected by armed conflict. It is also found that the resulting imbalance of policies damages aggregate productivity.

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