How Does Globalization Affect Colombia's Economy

Effect on Colombia’s Economy During the 1900s, Colombia had a relatively unstable economy, the major contributing factor to this instability being illegal trade. This economic instability affected Colombia and its progress as a country. Many share the belief that Colombia has a declining economy because of the major illegal trafficking that occurs in the country, but other variables are also present, which add to the cause. It is common information that Colombian President Andrés Pastrana believed that certain factors instigated illegal trade, namely globalization. Illegal trade is believed to be Colombia’s fault, but there is also the fact that it is a global industry and would not be spreading as rapidly as it is without globalization. Pastrana believed that globalization can be beneficial, but can also be restricting in as many ways. Drug trafficking, although spurred on by globalization, is still a major dilemma that continued to hurt Colombia’s

Legal agriculture fell because globalization taught farmers to grow the best-selling crops, which would continue to be illicit drugs until removals on restrictions of exports occur and a wider variety of crops could be cultivated. “Since the mid-1970s, declines in agriculture and manufacturing have been picked up by services and mining. Mining had not really been important until the late 1980s (Thoumi, “Political Economy” 27). This shows how legal agriculture had been declining for an extended time and how other, less important ways had to rise up to make up for that loss of profit. If legal agriculture could rise up again, then it would massively improve the economy because it would overly make up for the other businesses, including services and mining. Loss in profits, due to agriculture and other businesses, also relates to unemployment, and how less money and the restriction on exports have increased the unemployment rate because of the possible jobs