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Barraza, Juan Manuel

Community Development and Applied Economics

2006

MS

At the end of the 1980's, the Colombian government embarked on a process of structural adjustment in order to better adapt its economy to new realities in the global economy. The strategy consisted of promoting an open market economy based on modernization and internationalization of the productive sectors. Colombian ports were privatized in 1991. At that time, the government put an end to the corruption, state owned monopoly, inefficiency, high rates and technological backwardness. Colombian ports concessions are for 20 years. In this twenty years port societies have the responsibilities to deliver services, build the infrastructure needed for expansion and pay annual fees to the national government. The purpose of this thesis is to evaluate the process of port privatization in Colombia. To do so, cost-benefit analysis will be used. Here the purpose is to measure the net effect of the institutional reforms undertaken in the early 1990's. In addition, this study includes policy recommendations and identifies important issues that the government should address in the future. It will also discuss the strength and weaknesses of reform efforts.