U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

Some Implications of the Growth of the Underground Economy in Colombia

NCJ Number
129716
Journal
Journal of Interamerican Studies and World Affairs Volume: 29 Issue: 2 Dated: (Summer 1987) Pages: 35-53
Author(s)
F E Thoumi
Date Published
1987
Length
19 pages
Annotation
This essay examines the impact on Colombia of the growth of the underground economy, particularly that of the illegal drug industry.
Abstract
It is argued that the drug industry has contributed to a substantial increase in national income, but has generated numerous negative effects that far outweigh any measurable advantages. Currently, the underground economy accounts for a much higher share of the country's Gross National Product, but the antisocial nature of the underground activities responsible for this growth have created special problems for Colombian society. The drug industry boom has hurt the development of agricultural and manufacturing activities and has undermined Colombia's ability to progress toward stable growth or to compete in international markets in the future. It has lowered the quality of investments and has weakened government institutions by eroding public respect for their efficacy. These problems are compounded by the length of the period of institutional deterioration and by the advent of a population of young adults who have learned to regard their social environment as inherently hostile. Joint action by the Colombian and U.S. governments, essential to any solution, is unlikely to be forthcoming due to impediments on both sides. 15 notes and 17 references