Reviews growth of manufacturing sector in Colombia during the period 1930-45. There was a marked change in the pattern of industrial development after 1930. Relative to GNP, "nontraditional" manufacturing grew more rapidly than it had in the 1920s. Import substitution became the basic source of growth, with a few sectors accounting for most of the increase. In contrast to the model advanced by Hollis Chenery--that manufacturing develops in a regular pattern relative to GNP--it appears that Colombia's industrial sector responded to changes in the relative prices of outputs and material inputs brought about by the depression. Unlike import substitution industrialization of post-World War II years, this growth produced a fairly efficient industrial establishment. The policy lesson to be learned is that indigenous private entrepreneurs can be responsive to price incentives, and their judgment in selecting truly profitable opportunities may be superior to that of central planners. 60 pp. Ref.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/principles.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.