A Model Of Managed Primary Commodities: Coffee And Colombia

Abstract

This study attempts to track the effects of coffee on the Colombian economy, and by doing so, it also hopes to analyze the Colombian efforts to lessen the effects of coffee on the national economy. By looking at the efforts by the Colombian government and other groups in Colombia, the reader then can see the beginnings of the serious coffee management in Colombia. The Colombians have always attempted to manage coffee, yet in the 1970s, their efforts to use coffee’s revenues to develop largely failed due to an unexpected fluctuation of prices. The coffee boom lasted from 1977 to 1979, and the subsequent readjustment of prices, known as the bust in such a cycle, left the Colombian economy ill prepared to deal with the turbulent 1980s.