Colombian President Pushes Import Substitution Model, Protectionist Policies

By: Mamela Fiallo - Feb 17, 2017, 11:14 am
Colombian President
Santos proposed a return to the import substitution model. (Flickr)

EspañolColombia President Juan Manuel Santos publicized his support this week for a return to an economic model that would replace foreign imports with domestic production.

Santos tweeted on Thursday that it’s necessary to take advantage of the fact that Colombia is considered the “pantry” of Latin America, which is why implementing protectionist measures are so vital.

The President first mentioned the idea following the “Colombia Repunta” forum, during which officials discussed improving the country’s economy with tax reforms as well as investment in future social projects.

The import substitution model was tested in Latin America after World War Two, but payment balances did not improve because the importation of raw materials and capital goods for production resulted in price increases and debt.

While it is good news that Colombia will improve its exports, not all products create equal value. Food is a primary sector commodity, so its added value is not very high and if there is a shortage of public resources at some point, it could create an income problem, as seen during Colombia’s oil price crisis.

Source: Twitter Juan Manuel Santos

Mamela Fiallo Mamela Fiallo

Mamela Fiallo Flor is a translator for the PanAm Post. A university professor, translator, and interpreter, she is the cofounder of the Cuban Libertarian Party.

Venezuela’s Top Court Denies Last Appeal of Political Prisoner Leopoldo López

By: Sabrina Martín - @SabrinaMartinR - Feb 17, 2017, 8:34 am

EspañolAfter serving three years out of a 14-year prison sentence, the future just got much bleaker for political prisoner Leopoldo López. The Venezuelan Supreme Court closed the case for good, having ratified the sentence given to López, meaning he will have to carry out the rest of his 14-year sentence pending further international pressure to have him released. This Thursday, February 16, Venezuela's highest judicial court dismissed an appeal filed in August by López's defense lawyer, Juan Carlos Gutiérrez. He explained that, faced with the court's decision, they will now have to turn to an international approach. "The TSJ reiterates the injustice, the illegality that has been this process," he said. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); }); The court dismissed López's appeal as "manifestly unfounded," according to an excerpt from the ruling. Gutiérrez said the appeal had been introduced "with strict adherence to jurisprudence" and claimed the courts "break with the rule of law and its jurisprudential line." López was sentenced on September 10, 2015 to 13 years and nine months in prison. The conviction is the maximum for crimes of public instigation, conspiracy to commit a crime, property damage and arson. On August 12, 2016, the Venezuelan Court of Appeals ratified Lopez's ruling, claiming that he should remain in prison for that full time period. The Popular Volunteer Party has called for a demonstration in response. Source: Diario Las Américas

Weekly E-Newsletter

Get the latest from PanAm Post direct to your inbox!

We will never share your email with anyone.