Equity Versus Efficiency in Colombia During the Second Half of the 1980s
Many Latin American countries are rapidly evolving into outward-looking marketoriented economies with more decentralized and democratic political institutions. The rate of economic growth is accelerating in most of Latin America. While the average growth of per capita GDP in Latin America during the years 1982–86 was -1.8 percent at constant prices, the 1992 regional growth averaged 2.0 percent. A crucial question is to determine whether economic growth in Latin America can be associated with a decrease in equity and a reduction of poverty. A partial answer to this question may be learned from the experience of a Latin America country such as Colombia that was marginally vexed by the debt problem during the 1980s and, in the second half of the 1980s, began reforms toward macroeconomic stabilization, greater reliance on the market as a distributive mechanism, an increasingly outward orientation of the economic structure, and the implementation of privatization programs.
KeywordsSocial Welfare Social Welfare Function Individual Welfare Expenditure Function Welfare Level
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- 2.The degree of aversion to inequality p, does not seem to affect policy ranking (Jorgenson and Slesnick 1990a, 1990b and Jorgenson 1997b). However, it is a society-specific attribute affecting both social welfare, and the informational basis for comparisons.Google Scholar
- 3.In the contest of AIDS preferences, as compared to Jorgenson and Slesnick’s fractional Translog preferences, the order of subtraction of the welfare levels is inverted.Google Scholar
- 6.The average annual growth of consumer prices during the period 1985–1990 is 24.7 percent (International Monetary Fund, International Financial Statistics, various issues). In 1990, the level of the Consumer Price Index (CPI) was 2.42 times the level of the CPI in 1985 which is about 77 percent of the measured social cost-of-living index.Google Scholar