Regional inequalities and regional policies in Colombia: The experience of the last two decades

Abstract

Colombia has one of the worst income distributions in the world. This finding is a matter of concern since abundant empirical evidence at the international level shows a negative relationship between economic growth and inequality (Deininger and Squire 1996; Alesina and Rodrick 1994; Bertola 1993; Engermann and Sokoloff 2002). In Colombia large differences in the distribution of income have become worrisome. For the last three decades inequality has increased and the most impoverished areas, such as the Caribbean and Pacific coasts, continue to lag behind. What is observed in the Colombian context is an increasing territorial polarization. Moreover, several key economic policies seem to have worsened the situation of economic imbalances in this respect.