Colombia: Effects of the adjustment policy on agricultural development

Agriculture was the most im portant activity in the Colombian economy in the 1970s. It contributed 25% o f the total gross domestic product, absorbed 32% of the labour force and generated about 75% of total exports. In the middle of the decade the country experienced an unexpected boom in coffee and certain illegal products which, in conjunction w ith a stronger influx of external resources, strengthened the position of international reserves. However, at the end of the decade the w orld recession, the fall in international export prices and the accumulated exchange rate slippage were sapping the economy’s strength — a situation accentuated by the persistence o f structural rigidities.