Does Crime Lower Growth? : Evidence from Colombia
Many analysts consider that lack of security is a major obstacle to growth in Colombia. This paper identifies a structural downturn in economic growth-of nearly two percentage points per year-as a result of the increase in illicit crops and crime r...
Main Authors: | , |
---|---|
Format: | Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2017
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/752741468163462405/Does-crime-lower-growth-Evidence-from-Colombia http://hdl.handle.net/10986/28005 |
Summary: | Many analysts consider that lack of
security is a major obstacle to growth in Colombia. This
paper identifies a structural downturn in economic growth-of
nearly two percentage points per year-as a result of the
increase in illicit crops and crime rates after 1980. A
decline in total factor productivity has been the key
channel linking crime and economic growth. Political
upheavals and high levels of inequality and poverty
motivated the adoption of a new constitution in 1991. The
constitution mandated additional fiscal expenditures to curb
social tensions. Major progress has been made in terms of
public safety and, to a lesser extent, in the provision of
health and education. However, long?run growth will continue
to be constrained by inadequate transport infrastructure and
low international trade volumes. |
---|