Colombia - Economic position and prospects (Vol. 1 of 2) : Main report

FILE COPY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use '" i6 & Report No. 138-CO ECONOMIC POSITION AND PROSPECTS OF COLOMBIA (in two volumes) VOLUME I THE MAIN REPORT May 15, 1973 Country Programs Department II Latin America and the Caribbean Regional Office This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY E2UIVALENTS (Certificate Market Selling Rate of Dcchange) End 1970 1 US$ 19.13 Pesos 1 Peso US$0.05227 End 1971 1 US$ 20.94 Pesos 1 Peso = US$0.o4775 End 1972 1 US$ = 22.83 Pesos 1 Peso = US$0.04380 End March 1973 I US$ = 23.20 Pesos 1 Peso = US$.04310 End April 1973 1 US$ = 23.35 Pesos 1 Peso = us$0.04283  ECONOMIC POSITION AND PROSPBCTS OF COLOM3IA Table of Contents Page No. VOLUME ONE MAP BASIC DATA SUMMARY AND CONCLUSIONS i -vii I. General Economic Developments, 1972-73 1 II. The Public Finances 8 III. Trade and Payments 18 .TV. The 1971-74 National Development Plan 36 V. The New Savings and Loan System 42 VI. The Colombian Financial System 5 VII. The Growth Perspective 54 ANNEX: Income Distribution in Colombia VOLUME TWO STATISTICAL APPENDIX This report is based on the findings of an October- November 1972 economic mission to Colombia, composed of Gary Hyde (Chief), Ali Allawi, Frank Earwaker, Luis Landau, John Lowe, Manuel Metz (CIAP), and Donald Stout.   718- 76. 72' 70- A T LAN TIC O C EA N SUHM Sm. M.H.~~~~~~~'O. .- ATLANTICO a c,ag aroqall- - MAGDALENA 1 0 4, N-d~~~~oraibd 4, -~~~~~~ SUCRE>~A f N R E E E U L a / ~~~~~CORDOBA_ ,/` j DE 8' a,- ~~~~~~~~~~~~~~SANTANDER /r "c oia,aa At I4TI 0 O U I A / '0 aoa S SAN TA N D E R A R A UC A ~~~~ ~~~ C HOC r O A C A " CUNDINAMARCA) o dd 2 )~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~c I~~~~~~~~ D/ VAL LE TL A ' Pta 1-~,,aO ., a ~~~~~~m E T A r:a/ - a .-' I - .~~~~~~~~~~~~~~~~~~~~~~~~~~GUAI C A U CA \H U I LA,aNr. U POD,aycirO MIN6. A IN N a-_ V A U P ES 0 1~ ~ ~~ a-"-, a~~~ 1 C Q U E T Aa C 0 ~~~ A MA Z ONAS Elevations above 1400 eatern -Deportmrert, antendenna, a Camisart'n boundaries -a'.-a. SO2 too 150 I- a<- 4' KaILOMETERS 4a, Ova 75, OCTOBER 1971 113RD-'3639   COLCMBIA: BASTC DATA Area: 1,139,000 square kilometers (h39,825 square miles) Population: Estimate, mid-1972: 23.0 million Growth Pate: 3.2 percent per annum Gross Domestic Product: Estimated GDP in 1972 Col3 185,,4oo million Approximate US$p Equivalent a/ US& 8,305 million 'eal Growth in 1Q72 7.1 percent Average Growth, 1965-72 5.9 percent Per Capita GDP in 1972 a/ US1) 360 (in 1970 us$) Percentage Contribution to GDP 1960 1970 iAgriculture 347T 29.0 I4anufacturing 17.3 17.5 other 48.6 53.5 Saving and Investment: Percentage Composition in 197C: Gross Fixed Domestic Investment 91.9 (Construction) (55.0) (Equipment) (36.9) Inventory Change 8.1 Gross Domestic Investment 100.0 Corporate Saving 12.2 Personal Saving 5.7 Government Saving 27.2 Current Account Deficit 18.6 Capital Consumption Allowance 36.3 Gross Fixed Danestic Investment as Percentage of GDP: 1968 1969 1970 19.5 191.1 19.8 Central Government Finances (Millicns of Pesos) 1970 1971 1972 Current Revenues 11,9 7 1 165 Current Expenditures 7, 5,Ic! 10,173 11,3