Poverty, Crime, and Growth in Colombia: Regional Disparities

Rocha, Ricardo

Poverty, Crime, and Growth in Colombia: Regional Disparities - 2003.


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This article entails a two-stage empirical study of the relationships between poverty, criminality and economic growth, on the basis of literature and statistical analysis, from departmental data covering the 1981-1998 period. Privations suffered by the population and reduced opportunity costs resulting from low budgetary provisions favour criminality, which in turn has negative repercussions on the saving-investment process. The results obtained suggest that despite the development of drug trafficking, the risks of increasing poverty and the loss of growth would have been higher if Columbia had not experienced a parallel economic and social progress. The results also bring to light the importance of political goodwill in improving growth.

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