Public Disclosure Authorized

23739
Volume 3

THE BASIS OF
Public Disclosure Authorized

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX A
Public Disclosure Authorized

NATIONAL ACCOUNTS INbuDINNq1G,t NATIONAL INCOME

A)4t&CAPITAL FORMATiON

I~~~~~~~~~
Jacques Torfs
Public Disclosure Authorized

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 C O N TE NT S

Technique of Computation of the National Income and the

Gross National Product. . . . . . . . . . . . . . 1

Computation of National Income. . . . . . . . . . . . . . . .3

A. Agricultural Production . . . . . . . . . . . . . . . . . . 3

Volume of Production ................... 4

Value of Production. . . . . . . . . . . . . . . . . . . . 5
Sugar Cane and Subproducts. . . . . . . . . . . . . . . b
Sugar and Miel. . . . . . . . . . . . . . . . . . . . . 6
Panela. . . . . . . . . . . . . . . . . . . . . . . . . 7
Cotton. . . . . . . . . . . . . . . . . . . . . . . . . 7
Oilseeds. . . . . . . . . . . . . . . . . . . . . . . . 8
Fruits, Vegetables and Others . . . . . . . . . . . . . 8
Small Agricultural Enterprises. . . . . . . . . . . . . 9
Cattle and Livestock. . . . . . . . . . . . . . . . . . 9
Dairy Products. . . . . . . . . . . . . . . . . . . . . 9
Total Value of All Forms of Agricultural Production.. .10
Value Added in Agriculture. . . . . . . . . . . . . . . . 10

B. Value of Industrial Production . . . . . . . . . . . . . . 12

Breakdovn of Value (ex factory) of Industrial Production

in 1945 .... 12
Depreciation. . . . . . ; . . . . . . . . . . . . . . 13
Gross Profits . . . . . . . . . . . . . . . . . . . . .13
Distributed Profits . . . . . . . .13
Income Tax ....... . ...... ...... 13
Other Taxes . . . . . . . . . . . . . . . . . . . . . .14
Index of the Value of Industrial Production. . . . . . . .15
Value of Handicraft Production in 1945 . . . . . . . . . .15

C. Mining. . . . . . . . . . . . . . . . . . . . . . . . . . .16

D. Transport . . . . . . . . . . . . . . . . . . . . . . . . .lb

Railroads. . . . . . . . . . . . . . . . . . . . . . . . .16
Computation of Revenues and Expenditures of Other Forms of
Transportation . . . . . . . . . . . . . . . . .16
Traffic Study . . . . . .17
Rates per Transport Units .............. .17
Expenditures in Operation of Buses, Trucks, Public
Automobiles and Streetcars .......... . 17
River Transport ................... .19
AirTransport .1.9.................. .19

E. Construction ....................... .19

F. Commerce and Distribution ................ .19

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 Page
G. Public Utilities. . . . . . . . . . . . . . . . . . . . . . 21

Electric Power . . . . . . . . . . . . . . . . . . . . . . 21
Other Public Utilities . . . . . . . . . . . . . . . . . . 22

H. Banking, Finance and Government . . . . . . . . . . . . . . 22

III. Computation of Capital Formation . . . . . . . . . . . . . . . 23

Imported Capital Goods . . . . .. . . . . . . . . . . . . . . 23

Domestic Production of Capital Goods. . . . . . . . . . . . . 24
Construction Costs . . . . . . . . . . . . . . . . . . . . . 24
Other Items of Capital Fornstion . . . . . . . . . . . . . . 25
Gross Capital Formation . . . . . . . . . . . . . . . . . . . 26
Government Contribution to National Accounts. . . . . . . . . 26
 T A B L E S

A-1 Gross national product and components, 1939.47

A-2 Volume of agricultural production 1934, 1938-48
A-3 Essential coffee statistics, 1938-48
A-4 Unit prices of major agricultural commodities, 1938-48
A-5 Agriculture: value of processed crops, 1938-48
A-6 Agriculture: estimated value of production, 1938-48
A-7 Value added in small agricultural industries, 1939-48
A-8 Unit prices of animals, 1938-47
A-9 Value and number of animals slaughtered, 1938-48
A-10 Value of sales of animal subproducts, 1938-48
A-li Estimated breakdown of value of industrial production in the
Census year, 1944-45
A-12 Industrial production indices, 1939-48
A-13 Value and index of industrial production (f.o.b. ex factory), value
added in industries, 1939-48
A-14 National income at factor cost, 1939-48
A-15 Value of mining production and breakdown of costs, 1945
A-16 Value of mining production and contribution to national income
1939-49
A-17 Railroads: revenues and expenditures, l939-47
A-18 Structure of costs in transport industries, 1941.
A-19 Value added by transport industries, 1939-48
A-20 Railroads: operating statistics and basic freight rates, 1939-47
A-21 Electric power and other public utilities, 1938-48
A-22 Public utilities: services rendered and gross revenues, 1937-48
A-23 Income, profits and value added of banks and insurance companies,
1939-49
A-24 Capital formation: value of imports of construction materials,
1940-47
A-25 Capital formtion: value of imports of agricultural equipment,
1940-47
A-26 Capital formation: value of imports of transport equipment,
1940-47
A-27 Capital formation: value of imports of industrial equipment,
1940-47
A-28 Value of steel imports, (c.i.f.), 1938-47
A-29 Capital formation: national production of capital and durable
goods according to 1944-45 Census
A-30 Gross capital formation and cost of public works and building
1939-47
A-31 National income: value of building construction, 1939-47
A-32 Gross capital formation: value of government investment, 1939-47
A-33 National government investments, 1939-47
A-34 Capital formation; investments by departments, 1939-40/1917-48
A-35 National accounts: total value of construction, 1939-47
A-36 Depreciation, 1938-48
A-37 Balance of government accounts (national, departmental,municipal)
for the purpose of national aggregates computation, 1939-47
A-38 Estimate of actual total government expenditures, 1939-48
A-39 Government sales of goods and services, 1939-47
A-40 Taxes and transfers by government, 1939-48

-iii-
 I. TECHrITOU. OF CCIPUTATION OF THE NATIONAL INCOME
AND THE GROSS NATIONAL PRODUCT

The national accounts of Colombia have never been studied in

detail. An estimate, reported in 1940 by the National Bureau of
Economic Research (U.S.), set the national income at Ps.$1,097.6
million in that year. Preliminary estimates by the staff of the
International Bank indicated that this figure might have grown to
Ps.$2,327 million in 1945. Such data, however, cannot be safely
extrapolated and conclusions based thereon are at best sketchy.
In order to make a more accurate appraisal of the nature of
Colombia's economy, the Mission had to secure better and more recent
information. While a Colombian committee on national income, using
the facilities of the Banco de la Republica, has undertaken a study
of national accounts, in all probability it will not be completed
before 1951 or 1952. The Mission therefore embarked upon a tenta-
tive study of these problems. In appraising the data in this study,
one should at the outset realize that statistical material in
Colombia is scant and, in general, unreliable. Although some
attempts were made to complete or correct available statistical
series, the results were by no means entirely satisfactory. In
addition, it is unlikely that better estimates will be available
until the statistical organization of Colombia has been completely
transformed.

Since no data were available on the size and volume of consump-

tion expenditures, or on the number of workers employed (except in a
very few cases), or on their wages and salaries, or on the income by
major social groups, it was felt necessary to take as the starting
point for our computation of national accounts an estimate of the net
national income at factor cost, i.e. the sum total of all incomes
accruing to the factors of production, or the total value of produc-
tion of all goods and services, excluding depreciation allowances and
indirect taxes but including direct taxes, entrepreneurial and owners'
incomes, wages, salaries, retained earnings, payments for social
security and rents.

In general, the technique used for the computation of the com-

ponents of Table A-il! waF to calculate the gross value of production
at f.o.b. points for each major economic group, and to deduct from
this value the cost of raw materials, fuels, energy, indirect taxes,
depreciation and service of capital, etc., so as to obtain the "value
added." The sum total of all value added is equal to the net national
income at factor cost.

l/ This table appears as Table 1, p.26, Comprehensive Report.

 Although the series on f.o.b. values of production obtained for
agriculture, animal husbandry, government, industries, transports,
construction and mining do not satisfy the requirements of scien-
tific accuracy, they are approximately reliable in indicating
orders of magnitude. Serie6 on dairy products, handicrafts, small
agricultural industries, commerce, banking, finance, and real
estate are likely to be more reliable for certain base years for
which data is relatively abundant (such as 1945 or 1947, for in-
stance) than for the years 1938 or 1939 to 1944. Finally, data on
services and others can only be sustained by a considerable amount
of background information.

Once a reasonable estimate of the value of production of goods

and services was obtained, it became necessary to determine which
proportion of the total value participated to value added. In the
fields of industry, construction, commerce, services, government,
scattered information was available which made possible an estimate
of the breakdown of the cost or price of production for one or
several years. In the other fields it proved necessary to estimate
value added by deduction of operating costs from value of production,
or to assume that certain specific ratios had to be applied to the
value of production in order to obtain value added.

In making these assumptions, comparisons with cost breakdowns

in other South American countries proved useful. Also, it was possible
to check some of these assumptions with rough estimates of the number
of people employed in these activities and of their average income.

The gap between net national income and gross national product
was bridged by relatively reliable estimates of the size of indirect
taxes, subsidies, profits of government enterprise, and depreciation.

It remained, however, to determine the size of consumers' expendi-

tures which, in our opinion, may be the most useful and meaningful
data provided by a study of national accounts. This could be accom-
plished in two ways: either by deduction of government expenditure
(non-investment) from gross capital formation (public and private)
and net exports; or, by deduction of retained earnings, income tax,
personal savings, and government transfers from the national income.
Of the two methods, the first seems more reliable. It involves only
one major difficulty -- i.e., the calculation of gross capital forma-
tion, which is discussed below. The other method is likely to broaden
the margin of error, as it involves computation of retained earnings
and personal savings, on which practically no reliable data are avail-
able. Despite the lack of precision of the whole method described
above, the results were found remarkably coherent, although this should
not be construed as an indication of too great reliability.

The net exports figure was taken from the monthly International
Financial Statistics of the International Monetary Fund.
 - 3 -

Retained earnings were estimated at Ps.VS150 million in 1947 on

the basis of information provided by the Superintendent of Corpora-
tions, and other official sources. However, only scattered fragments
of information existed for other years, and the series provided in
Table A-1 are at best tentative.

Personal savings were obtained by the deduction of consumers'

expenditures from disposable income. Needless to say, the figures
for retained earnings, consumer expenditures and personal savings
are least likely to be reliable of the whole of the national accounts
data.

Three characteristics of the Colombian economy caused us to modi-

fy the usual presentation of national accounts as follows:

1. Though a large part of the agricultural community in

Colombia operates within the money economy because of the existence
of specialized regional crops, nevertheless perhaps 20 tercent of all
rural families subsist mostly on their own products. The value of the
output consumed on the farm has been considered a source of income as
well as the income yielded by products sold at the market.

2. A non-financial type of capital formation occurs constantly

as a result of the unremunerated work of the farmers on land improve-
ment and the unremunerated work of city-dwellers on household repairs
and improvements. This was not included in our computations, either
as capital formation or production of services, mainly because an
estimate of the values involved is impossible at the present time.
It is recommended that Colombian authorities engage in a serious study
of these non-financial elements of national accounts which may prove
to be of great significance in further national planning.

3. The steady inflation of the last 5 years in Colombia has

caused huge and repeated revaluations of capital assets. These move-
ments dwarf and obscure actual inventory revaluations, which by
right should be included in capital formation. Since these two ele-
ments could not be separated, our figures on capital formation exclude
inventory revaluation.

II. COMPUTATION OF NATIONAL INCOME

A. Agricultural Production

The volume of agricultural production is defined as all that

is produced minus the crops wasted prior to distribution -- thus, all
that is made available for human or animal consumption. The value
of production corresponds to the amount which this volume of produc-
tion would yield if it were sold at the first available rural market
place. It is not the value at the farm, which cannot be estimated,
 -4-

nor the "market" value which would emerge in urban centers.

The term "agricultural production" covers a great number of re-

lated activities. The most important of these in Colombia are: (1)
crop production; (2) production of small agricultural industries;
(3) production of livestock; and (4) production of dairy products.

In order to calculate the participation of agriculture in the

national income it was necessary to study the fluctuations in the
value of agricultural production. So far the only official attempts
at estimating this value were made in 1934, 1946 and 1948. The
results obtained are not completely reliable. Major reasons for
inadequacy are:

1. In the studies made thus far, no attempt was made to dis-

tinguish between the value of agricultural production, the value of
the output of small rural industries engaged in proceEsing agricul-
tural products, and finally, the value of the output of large-scale
industries which utilize agricultural products as raw materials.

2. Statistics of volume are debatable in many cases and those

of value in most. It was thus necessary to revise and complete
available data and to construct series on the value of production.

The technique used was essentially simple: hypotheses were made

on the basis of partial data available as to the physical volume of
production of major commodities by years since 1938; and unit prices
(in small rural centers to which agricultural products are first
transported) were secured. The value of production was obtained by
multiplying the former data by the latter.

Volume of Production

The sources for statistics on volume of agricultural production

are:

(a) The studies issued by the Ministry of Agriculture, and

made by Paul Varela Martinez, Director of the Statistical Division
of the Ministry of Agriculture; Atlas Geographico de Produccion Agri-
cola, 1946; Produccion Agropecuaria de Colombia, 1948. These studies
contain estimates based on reports from official sources (mainly
reports by agronomists and the maior users of agricultural raw,
miaterials). The volumes reported seem roughly comparable with
figures on consumption cited in studies of the standard of living in
major Colombian cities by the Contraloria General.-J However, statis-
tics on the volume of production of platano, bananas, yucca, name and
panela seem definitely untrustworthy.

L See Appendix B, Nutrition.

 - 5-

(b) A study by the Instituto Necional de Abastecimientos (INA,

or National Supply Institute) on the volume of production of cereals,
(Estudio sobre la Conservacion de Alimientos).

(c) The statistics of the Coffee Growers' Federation on coffee.

Although their data on export volumes are likely to be accurate, the
estimates of national Droduction in Bulletin 28 of the Association are
probably understated.

It is imnossible to determine which statistics on crop volumes

are most likely to be representative of the true picture. For
instance, a detailed study on rice by the Ministry of Agriculture seems
to indicate that I.N.A. statistics on rice crops are erroneous. On the
other hand, I.N.A. statistics on corn may be more precise than those of
the Ministry. Data on coffee production by the Coffee Growers' Feder-
ation conflict with those of the Ministry. However, the latter seem to
have been interpolated from the former. It is hoped that the situation
may be clarified by the agricultural census of 1950. Pending this
verification, it has been arbitrarily decided to adopt as valid the
statistics of the Ministry for all crops except panela 8nd coffee (see
Tables A-2 and A-3).

Value of Production

Although the statistics on output provided by the Ministry of

Agriculture seem to indicate orders of magnitude fairly satisfactorily,
its statistics on the value of production are generally less reliable.
In certain cases, volume statistics, by department, are multiplied by
unit price statistics, as reported by local agronomists in the field.
In other cases, volumes of production are multiplied by the wholesale
prices of agricultural raw materials, at major market places, as
reported by the Contraloria in the Anuario General de Estadistica.
Checks indicate that the two interpretations often clash.

In order to calculate the value of crop production, it was there-

fore decided to utilize, in most cases, the figures on volume of pro-
duction provided by the Ministry, and the figures on unit prices pro-
vided by the Contraloria General. However, the Contraloria does not
attempt to estimate the average prices prevailing for a given crop in
Colombia. It provides average monthly prices of important commodities
in most market places, rural or urban. It was therefore necessary to
set up new series on the average yearly prices in rural markets by
weighting market prices by the relative importance of each market as a
production outlet for a given commodity (see Table A-4). The value of
most crops was estimated on this basis.

It was necessary, however, to depart from this technique in the

case of some commodities such as sugar cane, cotton, oilseeds, vege-
tables and fruits, and their treatment is therefore discussed more
extensively below.
 - 6 -

Sugar Cane and Suboroducts. All available statistics indicate

that the value of production of sugar cane is the sum total of the
value of panela, miel, sugar, and even alcohol, but it is obvious
that sugar cane is only a raw material in the preparation of these
Droducts, which should be classified as "industrial." From the
analysis of scanty data on the relations between sugar cane and its
subproducts, it was estimated that, on the average, the value of
sugar cane was 23 percent of the aggregate value (ex-factory) of its
subproducts.

Statistical evidences are:

1938 1939 1940 1941 1942 1943 Total

(millions of pesos)
A. ANUARIO GENERAI. DE ESTADISTICA

(1) Value of sugar cane 1.5 1.5 2.6 2,0 2.0 3.F 13.4
(2) Value of:
(a) Centrifugated sugar 6.5 6.8 8.6 11.3 8.1 9.7 51.0
(b) YXiel 0.3 G.: 0.3 O.L_0.303 .
(3) Total 6.8 7.3 8.9 11.8 8.4 10.0 53.2
(4) Ratio of (1) to (3) 22% 20% 29% 17% 23% 26% 23%

B. INDUSTRIAL CENSUS -- 1944-1945 (millions of pesos)

(1) Value of sugar cane 1.93
(2) Value of sugar 10.502/
(3) Value of miel 0-302/
(4) Total 10.8
(5) Ratio of (1 to 14L
18%

The ratio prevailing in 1944-1945 is slightly lower than the

1938-1943 average. Since the average ratio for 1938-43 involves a
greater number of years and no estimates, but actual figures only,
it is considered preferable.

The volume of production of sugar cane is unknown. It, however,

can be estimated to amount to 11.2 times the combined volume of produc-
tion of sugar, miel and panela. (The 1944-1945 census indicates that
888 thousand tons of cane were needed in order to produce 67.4 thousand
tons of sugar, 11.2 thousand tons of miel, and 0.1 thousand tons of
panela.) Given these elements, it was necessary to obtain a more re-
liable ex-factory value for all sugar subproducts.
Sugar and Miel. Our estimate of the total (market) value of
sugar has been made on the basis of available volume and unit price
series. This estimate was found to be 22 percent above the price ex-
factory for the years 1938 to 1943. Estimated market values for 1944-

2. Cost of production -- Sugar (million) 7.9 ) The value of production

1vMiel (million) C.2 ) (ex-factory) is assumed
) to be 33 percent higher,
) or Sugar 10.5 and Niel 0.3
 - 7 -

1948 were thus reduced by 22 percent in 'Table A-5 in order to ob-

tain ex-factory values for those years. The same technique was
applied to miel.

Panela. The same technique could have been applied to panela

but, unfortunately, it became evident that volume series on it were
unsatisfactory. From statistics on the area in panela cultivation,
it was deduced that panela output had only increased by 4 percent
per year, instead of by more than 8 percent, as indicated by the
Ministry of Agriculture. New volume series were constructed on the
base year volume of 620 thousand tons in 1946. (It is recognized
that this results in a more smoothly changing series than is likely
to have occurred, but for most years the general order of magnitude
appears to be correct, and any remaining error would have little
effect on the total value of agricultural production.) Average unit
prices found in Table A-4 were applied to these new volume data
(which correspond closely to information provided by the Ministry of
Industry and Commerce, as well as U.S. Government studies of Colombian
agriculture) and the new figure on "imarket value" was reduced by 22
percent in order to obtain the value of panela ex-factory, or rather
"ex-trapiche." Once new ex-factory values had been found for sugar
subDroducts, the determination of sugar cane value became possible
by applying the percentage cited above (see Table A-5).

Cotton. Official statistics on cotton are also somewhat con-

fused in that the value of raw cotton is described as being the sum
of the values of cottonseed and lint cotton. The value added through
an industrial process -- namely, cotton ginning -- is ignored. Accord-
ing to data provided by the 1944-1945 industrial census, the total
value of lint and seed is 120% of the value of raw cotton, as illus-
trated below:

Thousands Value
_Millions of Pesos of Tons per Ton

Lint used in production 4.84 5.57 -

Cottonseed used in production 0.64 8.62 -

Total 5.48 14.19 Ps40385

Raw (seed) cotton used by mills 3.48 10.79 Ps.$322

Series on raw cotton were modified on these bases. These series,

however, are not deemed entirely satisfactory because figures reported
for local production of raw cotton by the Ministry of Agriculture con-
flict with statistics on raw materials used by the textile industry.
Unfortunately, it is impossible at this time to determine with
greater precision the actual magnitudes involved. In any event,
the margin of error resulting from the use of the volume data of
the Ministry of Agriculture is small (Table A-5).

Oilseeds. Data on oilseed production values nrovided by the

Ministry of Agriculture seemed unreliable. The following figures
were obtained on the basis of careful estimates made by U.S. Embassy
experts:

1944 1945 1946. 1947

-(mliilons oi pesos)
Sesame 0.3 0.5 1.0 1.5

Copra 1.8 1.6 1.0 1.3

Tamaco/Palma de Vino 0.1 0.15 0.2 0.5

Noli 0.02 - - 0.02

Total 2.22 2.25 2.2 3.32

These figures were adopted as an indication of the importance of oilseeds

in Colombian agricultural oroduction, but they are probably understated,
as they refer only to those seeds which are purchased by vegetable oil
plants. Cottonseed is excluded from these statistics, as it evolves from
an industrial process (and thus is accounted for in the value of raw
cotton and the value added by cotton ginning).

Fruits, Vegetables and Others. There is no reliable source of

information on the production of these commodities. In order to ob-
tain a rough appraisal of their importance relative to the total
value of Colombian agricultural nroduction, estimates of value were
made for the years 1946 and 1948 based on statistics of the Ministry
of Agriculture (*) and modified by our findings on nutrition ard
land use (rectified figures marked ? as follows:

1946 1948
(millions of pesos)
FRUITS 6.0*6
VEGETABLES 14.G* 18.2*
Peas 4.5 5.0"
Onions 3.5 5.2*
Chickpeas 2.4 3.0*
Garden Vegetables 2.0 3.0*
Lentils 1.6 2.0 -
OTHER 2.8* 3. 6*
Rubber 1.6 1.8*'
Anis 0.4 0.7*
Divi Divi 0.4 C.64
Ricin 0.3 0. 4**
Balata 0.1 _ . J.?'
 - 9-

The value of production of these crops was extrapolated back to 1938

on the assumption that its relative position in the total value of
agricultural production had remained unchanged. The value of egricul-
tural production Droper (Table A-6) was computed on the basis of
Tables A-2 and A-4, and the considerations contained in the preceding
paragraphs. But this calculation omitted the value of many other farm
products.

Small Agricultural Enterprises. A number of farm commodities

should be included in industrial, instead of agricultural, statistics
as they result from manufacturinig processes. The most important of
these is panela,4/, but the qategory also includes alcoholic beverages,
such as guarapo and chicha,2/ and fiber (fique) bags.

We have made a distinction between these prc(lucts of srmall agri-

cultural industries and handicraft products. Agricultural industries
differ from handicrafts, which also exist in Colom,bla, in that they
are primarily rural and can be considered an extension of the activity
of the farmer into the partial processing of his own crop. Handicrafts
(manufacture of potteries, hand-woven rugs and cloth, panama hats,
etc.) consist rather of specialized industrial activities which are
confined to one or two members of a rural or urban low-income family.

The value of panela, and the amount of income derived from its
production, could be estimated without difficulty once the value of
sugar cane had been calculated. However, no data were availeble on
the value added by the production of guarapo. In Table A-7, it was
tentatively estimated at 25 percent of the value added by panela. (The
effort here is obviously to obtain a value of approximately the correct
order of magnitude rather than an indication of exact changes from year
to year; the nartial displacement between panela and guarapo may in fact
make for greater, rather than less,accuracy in the year-to-year changes.)

Cattle and Livestock. Statistics of cattle slaughter and sales

are more reliable than other agricultural data. Unit prices of
animals were collected from official statistics, and averages for each
year are shown in Teble A-8. The number of heads slaughtered in major
categories (beef, hogs, sheep, goats) are recorded in Table A-9. Out-
put figures, multiplied by unit prices, provided the values shown in
Table A-9.

Dairy Products. Table A-10 contains an estimate of the value of

dairy products output and of the wool clip. However, statistics on

i/ In Colombian statistics, panela and other cane products (sugar, alco-

hol) are included in agricultural statistics. Sugar and alcohol are
also included in industrial statistics, where they belong, but panela
does not appear in industrial statistics and should thus be accounted
for separately.
The industrial census, however, includes guarapo and chicha production
in Eome departments only.
 - 10 -

milk, eggs, butter, chickens, other dairy products, and wool clip
are not reliable. The estimate of the Ministry of Agriculture for
1947 was reduced, because milk production data indicated approxi-
mately three times the consumption Ievel reported by studies of the
nutritional status of Colombia. The ratio of the adjusted total for
these items to the value of animal husbandry production is assumed
to have been maintained in all years between 1938 and 1948.

Total Value of all Forms of Agricultural Production. Tables

A-6, A-7, A-9 and A-10 set forth series on the total value of differ-
ent types of agricultural production. These totals are summarized
below:
194 194$
(millions of pesos)
Agriculture proper 803.7 1,142.7
Agricultural industries (164.0) (203.0)
Livestock 230.2 351.4
Dairy Products 56.7 86.5

Total 1,254.6 1,783.6

Value Added in Agriculture

The calculation of the value added, or the sum total of income

accruing to the economy of the country as a result of agricultural
production, entailed further estimates. Unfortunately, data on this
subject are practically non-existent, and our estimates therefore are
the result of scattered observations checked with the records of
neighboring countries.

The total value of production is not returned to the farmers.

Deductions must be made principally for the cost of fertilizers and
fuels, the interest paid on machines and on bank loans, the cost of
maintenance and depreciation, and the use of seeds. The list below
describes the closest approximation to these expenses for the year
1947. It has not been possible to separate operating costs of agri-
culture proper, small agricultural industries, animal husbandry and
dairy production in this estimate, and the total value of the agri-
cultural production to which these expenditures apply is Ps.41,783.6
million, or the total of these three items. The list below is tenta-
tive -- many items may definitely be understated -- but it indicates
that operating expenses amounted to Ps.$30Q3.0 million, or 17 percent
of the total value of the agricultural production in that year.

BREAKDCWN OF OPERATING CNCTS IN AGRICULTURE

(millions of pesos)

A. Interest on loans by Caja Agraria (all loans)

6% interest on one-year loans 87.0 million pesos 5.2

B. Interest on loans by Commercial Banks

a. Agriculture (6% interest- 6 months loans 40 m.p.) 1.0
b. Cattle (6% interest, 1 yr. loans 83.8 m.p.) 5.0
 (millions of pesos)

C. Interest on loans by village lenders

a. Agriculture (15% interest 6 months on assumed 200 m.p.) 15.0
b. Cattle (15% interest 12 months on assumed 50 m.p.) 7.5

D. Depreciation of farm installation and buildings

(Total value assumed at l,OOQ m.p. - 2%) 40.0

E. Depreciation on imported equipment and materials

(Amortization in 10 years on a stock estimated at SO m.p.) 8.0

F. Depreciation on equipment purchased locally

(Amortization in 5 years on a stock estimated at 10 m.p.) 2.0

G. Purchase of fertilizers, pesticides 15,0

H. Purchase of feeds, insecticides (cattle) 10.0

I. Retention of seeds and animals (5% of value of agricul-

tural production) 50 0

J. Capitalization of total value of land and animals

Total value of cattle - livestock poultry - 1981.3 m.p.
Total value of agricultural land - 310.0 m.p.
(2.37 million has. at 13%D/ha)
Total value of pasture land - 510.0 m.p.
(51.0 million has. at lOp/ha)
Total 2801.3 m.p.

Assumed capitalization: 1% per year 28.0

K. Cost of rope, cordages, bags (1% of production value) 17.0

L. Cost of fuels:
(1) at the farm; (2) used for implements; (3) for
transport vehicles to market (15 million gallons) 10.0

Ki. Cost of maintenance and operations

(1) Farm buildings and installations 20.0
(2) Implements 20.0
(3) Transport equipment 10.0

N. Indirect taxes, rentals, various 40.0

GRAND TOTAL OF OPERATING COSTS 303.7

Comparison with a breakdown of costs in Chile in 1943 indicates

that these crude estimates are reasonably reliable, but are likely to
be underestimated. It will, therefore, be assumed tentatively that
 - 12 -

the operating costs in agriculture amount to 20 percent of the

grosE value of production (at factor cost) and that value added is
thus 80 percent of gross value.

B. Value of Industrial Production

It is difficult to estimate the value of industrial production

and the value added by manufacturing. The Anuario General de
Estadistica provides some interesting data on values and costs for
the years 1938 to 1943. Unfortunately, they cover only a small part
of industrial production. Data for only 1378 olants were reported
for 1939 but it is known that there were at least 5000 manufacturing
plants at that time. The Industrial Census of 1944-1945 provides a
better picture of the costs of production but, as also discussed
below, it does not give f.o.b. values, which are relevant to this
calculation. Some unpublished statistics of the Contraloria General
expand the series started in 1944-1945 and the reports of the Super-
intendent of Corporations also provide some indications of costs for
1947 and 1948, but information is sketchy and sometimes inaccurate
and no estimate of the value of industrial production or a reliable
index of production is available for any one year.

The Mission thus had to make independent estimates. In order

to obtain a reliable base for the projection of trends in industrial
production, an attempt was made to estimate the total value of pro-
duction for 1944-1945, the Census year. Then indices of unit prices,
volume and, finally, value of production were constructed and values
for each year were obtained by applying this index to the value of
production calculated for 1944-1945. The share of factors in indus-
trial production was indicated by the cost breakdown for 1944-1945
and the ratio of value added to total value of production thus
obtained was apDlied to values obtained for all years.

Breakdown of Value (ex-factory) of Industrial Production in 1945

Table A-ll indicates that the value of industrial production in

1944-1945 has been estimated at Ps.4830 million. Value added was
estimated at Ps.$245.5 million, or 29.5 percent of the total. This
total was obtained as follows:

(a) In the 1945 industrial census, Ps.$641.4 million covered

the "cost of production ex-factory," or the value of raw materials,
fuels, wages, salaries, social security, insurance, rents, excise
taxes. The value of fuels reported in our own calculation of costs,
however, differs somewhat from the total reported officially. The
census indicates Ps.$11.94 million as the total value of fuels. How-
ever, it provides the following breakdown:
(thousands)
Fuel used in production ............. ... Ps.$8,404
Fuel used in transport . . .. 912
Value of energy used ...............
. . 5,076
Total .................... .. Ps.$14.392
 - 13 -

We have therefore used the total of these three items as the actual
value of fuels used.

(b) Profits, taxes, depreciation, interest paid and received,

which were not included in the Census, were estimated on the basis
of data provided by the Superintendent of Corporations (Sociedades
Anonimas) and the Contraloria General.

Depreciation. According to a statement of the Superintendent

of Corporations, depreciation = 2.2 percent of sales, or Ps.$20.9
million.
According to data provided by the Contraloria, depreciation
represents the following percentages of the capital value:
(millions)
Land (Ps.$118.2 million) . ........ 3.3% Ps.$3.90
Machines (Ps.$118.5 million) ....... . 10% 11.85
Rolling Equipment (Ps.$6.6 million). 20% 1.32
Other Assets (Ps.$44.3 million)..... 10% 4.43
Total depreciation........ ....... .Ps.$21.5

Therefore, depreciation figures have been based on data supplied

by the Contraloria.

Gross Profits. According to data provided by the Superintenden-

cia de Sociedades Anonimas, interest transfers and gross profits in
1945 were:
(Percentage of Gross
Value of Sales of
Coroorations)

Interest received .................. 0.3049

Interest paid......a.. . . . 0.444
Gross Profits .... ............... 16.9

Distributed Profits, It was assumed that, on the average, divi-

dends, or net profits, of 10 percent were returned to the owners of
industrial plants. This is consistent with studies of the capital
invested in industries, and the yield of shares in 1944-1945.

The value of special items such as selling costs, patents,

royalties and maintenance, also omitted in the census, was, on the
basis of some spot checks, assumed to be equal in size to the allow-
ance for depreciation.

The problem of taxes had to be given special attention.

Income Tax was not included in the census because: (a) in the
case of Sociedades Anonimas, the income tax is levied on the gross
profit of the corporation. Dividends received by shareholders are
deducted from their income tax returns; and (b) in the case of all
other corporations, the gross profit accrues to the income of owners
 - 14 -

and is taxed as a part of the individual ownerts income. As it was

thus not possible for the cenus takers to obtain a clear account of
the total amount of income taxes levied on the total of profits made
by manufacturing enterprises, whether or not distributed, no attempt
was made to secure partial records.

In order to close this gap, the Mission estimated the combined

yield of income, patrimony and excess profit taxes in 1944-1945 as
follows:
(thousands)
1/2 1944 yield ........... . Ps.$24,322
1/2 1945 yield ............ 29.598

Total ............ Ps $53,920

It seems impossible to determine what part of this sum results from

taxes on the income of agricultural properties, services, real estate,
etc. The more informed guesses set it at approximately 60 percent.
If this figure is used tentatively, direct taxes of about Ps.421.6
million were levied on industrial production.

Other taxes. Other national, departmental and municipal taxes

on industrial goods have been recorded in the Census, and have been
classified as follows:

Incident on Incident on Incident on

Cost of Production Consumers Sales Price
National
Matches X
Gasoline Undefined Undefined
Lubricants il t1

Tires " "

Cattle Hides x
Departmental
Tobacco X
Beer, Chicha, Guarapo X
Wvunicipal
Cn lMotors Installed X
On Registration X

The reasoning behind this classification is not clear. Inasmuch

as it seems that all these taxes are levied on industries, and not on
distributors, it seems evident that their total amount, or Ps.$35.98
million, reflects itself in the value of production ex-factory.

On the foregoing bases, admittedly only rough estimates, the total

value of industrial production, ex-factory, was estimated at Ps.$8130
million in 1944-1945. This figure was discussed with Colombian statis-
ticiane and experts who engaged in the industrial census, and was
deemed to be approximately correct.
 - 15 -

Index of the Value of Industrial ?roduction

While data on the total output of Colombian industries is incom-

plete for any one year, it has been possible to compile from the
sources just described relatively reliable time series of unit prices,
and output of important commodities such as oleomargarine, soft drinks,
shoes, cement, beer, cigarettes, cigars, chocolate, sugar, soap,
candles, liquors and wheat flour. From this information, an index of
industrial production has been constructed, which is presented in Table
A-12. It will be seen that the weighting of reported commodities is
made on the basis of their importance as a percentage of total value of
production. Since all industrial products are not included, this may
cause some distortion and present an inaccurate picture. The index
indicates that the volume of industrial production has been increasing
at a rate of 11-12 percent per year from 1939 to 1948, while unit
prices grew by about 8-l/2 percent annually. Most of the increase took
place starting in 1944. While these rates of increase seem high, they
are by no means incompatible with other information on price behavior,
or trends in output in other industries, for which data were only col-
lected for 1945 to 1948.

The value index is applied to the absolute value of industrial

production in Table A-13. It has been assumed that the value of out-
put in 1944-1945 was mid-way between the value of output in 1944 and
in 1945. Also, Table A-13 presents the value added in industries from
1938 to 1948. It was assumed that the ratio of value added to the
total f.o.b. value prevailing in 1944-1945 applies to other years and
there is evidence to support this assumption.

Value of Handicraft Production in 1945

The 1945 census only covers plants producing more than Ps.$6,000
worth of products per year. These plants employed only 115,517 workers.
However, the 1938 population census reports 450,000 industrial workers
(full and part-time) and it has been estimated that this was equivalent
to 95,000 industrial and 145,000 handicraft full-time workers. 2/By
1944-1945, the number of full-time workers engaged in handicrafts may
have been 185,000. While most of these workers are owners or part
owners of their shops, their output is small and of little unit value.
They manufacture pottery; they make and mend clothes, repair shoes,
quarry stones, gravel, etc. It therefore is very doubtful that the
income of these industrial owner-workers exceeds that of urban workers,
or an average of Ps.$575 per year in 1944-1945.

Furthermore, as handicraft workers have little knowledge of account-

ancy, it is probable that they estimate their output as an industrial
worker would value his -- i.e., for labor alone, without taking into
consideration their operating costs as well as depreciation, amortiza-
tion and maintenance of equipment and the purchase of small amounts
of raw materials. Actual value added in handicrafts is thus smaller

6/ See Appendix J, Statistical Bases for Trends and Projection.

 - 16 -

than total apparent gross receipts of the "factor of production."

We have estimated it at 65 percent of these receipts. Value added
in handicrafts in the census year, calculated on this basis, is
Ps.$73.5 million. This figure was projected from 1939 to 1948 in
Table A-14, on the assumption that output was increasing at a rate
of 2 percent per year, while prices followed the fluctuations of the
industrial unit price index.

C. Mining

Tables A-15 and A-16 provide a breakdown of the cost of mining

production in 1945 and series on total value of mining output and
value added per year from 1939 to 1949. Major sources of statisti-
cal material were the bulletins of the Banco de la Republica, the
Ministry of Mines, reports from foreign oil companies and the Anuario
General de Estadistica.

The profits exported abroad of the petroleum and gold companies

are not included as part of the value added to the country in these
tables. Clearly their influence upon the economy of the country
manifests itself only through the "net exports" item in the national
accounts. Statistics on coal production are also unreliable, because
output data provided by the Anuario General de Estadistica covers
only that part of production which is transported by railroads. To
obtain the total volume of production, this figure wes increased by
40 percent on the basis of estimates of the Ministry of Mines and
Petroleum.

Data on the value of production of limestone, minerals and

metals exploited in very small quantities is scant. However, estimates
of value and output and value added were made on the basis of data
provided by the Banco de la Republica and private sources, and seem
reasonably accurate.

D. Transport

Railroads

Value added in railroad transport can be estimated almost

directly from available statistics. Table A-17 presents a breakdown
of revenues and expenditures of the Colombian Railroads year by year
from 1939 to 1947. Statisticb on revenues, expenditures, wages, etc.
of national, departmental and private railroads were provided by the
Anuario General de Estadistica. Estimates of depreciation charges
have been made by the staff of the Banco de la Republica. A break-
down of cost structure will be found in Table A-18, and value added
is shown in Table A-19.

Computation of Revenues and Expenditures of Other Forms of Transportation

Data on other forms of transport are practically non-existent.

In the case of trucks, buses, airlines, inland shipping and streetcars,
 - 17 -

the Mission made a study of: (a) traffic flows in tons, kilometers,
or passenger kilometers; (b) freight per ton or passenger kilometer;
(c) gross revenues (a) multiplied by (b); and (d) cost structure.
Value added was obtained for these fields and railroads (Table A-19)
and it was then estimated that the value added by all other forms of
traffic (human, animal, pipelines, coastwise and international ship-
ping, public automobiles, etc.) amounted to 19 percent of the value
added in the major transport fields. Further verification may prove
this an understatement.

No attempt will be made to describe in detail the procedure

through which revenues were calculated. Substantially, this compu-
tation took the following form:

Traffic study. Truck and bus traffic was calculated on the

basis of the number of conveyances available, their gross and net
capacity, consumption of gasoline and tires, records of number of
trucks moving on roads, etc., Scattered data provided by transport
firms were also used.

Airlines traffic for 1938-l948 was extrapolated from data pro-

vided for 1944-1947 in the Anuario General de Estadistica.

Data on tons transported by inland shipping were available and

it was assumed that,on the average, freight was moved over 350 kilo-
meters.

Data on passengers transported by streetcars were available.

Rates per transport units. A study of data provided by major

firms indicated that, by and large, truck rates were double, bus
rates equal to, and inland shipping rates half, the rates charged
by railroads for similar services. Data on air rates and streetcar
fares were available. Series were then constructed and are shown
in Table A-20.

The matching of these two classes of information provided an

estimate of revenues. It remained to calculate the breakdown of
expenditures in order to obtain the value-added ratio for 1945.

Expenditures in Operation of Buses, Trucks, Public Automobiles

and Streetcars.. A survey of statistics provided by private sources
indicates that in 1945 the use of 100 vehicles of more than two tons
implied the employment of 100 drivers earning wages of about
Ps.$105 monthly, and 100 assistant drivers earning average wages of
about Ps.$60 monthly. In addition, 25 employees were needed, earn-
ing an average of Ps.4150 monthly. In the case of light buses and
trucks, only 100 drivers and 25 employees were used.
 In 1945 there were 10,062 trucks, of which 6,510 had a capacity
of less than two tons. The wage bill could be assumed to be:

(millions)
10,062 drivers ................ * Ps.212.7
3,552 assistant drivers ....... 2.1
2,500 employees ...... ...... - 4.5

Total wages and salaries ....... Ps.$19.3

Managerial income and earnings were estimated at 12 percent of gross

revenues on the basis of data provided by the Superintendent of Cor-
porations. As shown in Table A-18, therefore, value added was
assumed to represent 45 percent of gross revenues.

Applying the same reasoning to the 3,738 buses in existence in

Colombia in 1945, we obtain the data indicated in Table A-18.

There were in 1945, 4,414 public automobiles. From statistics

provided by the owners of taxicab fleets, drivers were earning
Ps.$60 per month and employees Ps.$145 per month. There were four
drivers per employee. The rate of profit is unknown; however, it
can be assumed to be close to that prevailing in truck and bus trans-
port.

Only Bogota, Pereira and bledellin have streetcar services. They

are owned and operated by the municipalities. Of great importance
twenty years ago, the streetcars are progressively being replaced by
buses, mostly privately owned. Bogota, however, is acquiring new
streetcar equipment; the great length of lines and the heaviness of
traffic seem to Justify even further expansion.

The growth of urban streetcar traffic is remarkable; in Bogota,

56,463,000 passengers were carried in 1947 as against 37,545,000 in
1943. In Medellin, traffic was 16,411,000 passengers in 1947 against
12,234,000 in 1943.

The Anuario General de Estadistica provides the following

operating statistics for 1945:
(thousands)
Revenues Expenditures
Bogota Ps.$2,569 Ps.$2,017
Medellin 803 598
Pereira 73 65
Mlonzerrate (Cable Car) 70 19
Ps.$3,515 Ps.$2,699

According to this table, gross profits may have been ?s.$0.8 million.
This is confirmed by private sources. By comparison with other
transport activities, the total of wages and salaries is estimated at
Ps.$1.12 million. Value added is thus assumed to be 60 percent of the
 - 29 -

total value of services (see Table A-18).

River Transport. According to an important river transport

firm, the total of payments for salaries, wages and social security
was Ps.$0.01Z68 ner ton-kilometer in 1945. According to the Super-
intendent of Corporations, gross profits of river transport cor-
norations amounted to 13.6 percent of gross revenues in the same
year. The value added by river transport shown in Table A-19 was
calculated on theee bases.

Air Transport. Revenue, calculated as outlined above, matched

with data provided by the Superintendent of Corporations, indicated
that the total revenue of three airlines in 1945 amounted to Ps.$15.9
million. The staff of the Banco de la Reoublica estimates that the
total wage bill of these three airlines was Ps.$5.36 million, and
their gross profits were estimated at 10 percent of gross revenue,
according to private sources. Value added thus amounted to 44 per-
cent of gross revenues.

E. Construction

A full discussion of value added in construction will be found

in the discussion of gross capital formation estimates.

F. Commerce and Distribution

The underlying causes for the current shortcomings of commerce

and distribution in Colombia may be found in the history of the
economic development of the country in the last thirty years.
Colombia, up to the late twenties, was largely a "colonial country."
The mainstay of the economy was coffee. The exchange proceeds from
coffee were mainly used for the purchase of equipment by the Govern-
ment, and of consumers' goods by the small orivileged class.

Trade was thus organized primarily for the imuortation snd ex-
portation of goods to which'the commercial and managerial ability of
the country was dedicated. Importers were also wholesalers and often
retailers, and a multiplicity of small merchants sold imported goods.
In contrast to this organization, a primitive marketing system existed
for locally produced goods.

Rural areas were for all practical puruoses a close economy.

Towns were small and sunplied with foodstuffs by neighboring farm
areas. The lack of adeouate roads, the small size of the consuming
market and the low price of foodstuffs defeated any attempt at large-
scale organization of food distribution. Farmers went every day to
the town and sold their own products at the market place.

Since the crisis of the thirties, the economy of Colombia has

"de-colonialized" itself, perhaps because it became evident that
 - 20 -

coffee could not be relied upon to support the entire population.

Cereals and other food crops acquired an increasing importance in
agricultural income. Also, industries started growing, perhaps
because the shortage of exchange of the thirties gave an impetus to
local production. Towns developed ranidly as a result of the
progressive industrialization of the country.

New industries, unhampered by institutional obstacles, started

developing their own marketing system. They regarded with distrust
the sales organizations of importers who were accustomed, owing to
the smallness of their markets, to small sales and large profits, and
started opening distributing branches all over the country.

Little progress was made, however, in the distribution of agri-

cultural products. Mlost crops are still marketed in a quasi-crimitive
fashion.

This is not true, however, of some industrial crops, often grcwn

on large properties, rhich the government decided to support through
prices and quotas in a pursuit of self-sufficiency. Starting in the
forties, large-scale purchases of oil seeds, cotton and wheat were
made. Purchasers were either Colombian industry or the Government,
through the Instituto 'lacional de hbastecimientos.

But food crops, whether their wholesale marketing is modern or

not, are still distributed retail in a most inefficient fashion,
either through unhealthy and inadequate market places, or through very
small stores.

The small store remains an institution. It still serves to dis-

tribute imported products, processed foodstuffs of local origin, and
even local industrial products when their nature is such as to neces-
sitate more than a small number of retail outlets (as in the case of
beer, cigarettes, etc.). Lack of mobility of the urban ponulation
hampers development of large retail units.

Chain stores are still unimportant, but are vigorously promoted.

Currently their sales are still small compared to the bulk of trade.

The implications of such a microcosmic organization are obvious.

Almost nothing has occurred to modify the "importers and small traders"
mentality. Very large profit margins are charged because of the small
turnover and also because of the need to carry large inventories. The
spreads between c.i.f. imported prices, or farm prices, and retail
prices are enormous. Tariffs, transport costs and consumers' taxes of
course account partially for these spreads, but large profit margins
are responsible for most of the mark-up.

Inasmuch as no careful investigation has been made of mark-uns

in the major categories of goods in Colombia, it was necessary to
estimate them on the basis of conversations with trade associations,
exporters and importers, visits to market places, deductions from
certain sporadic wholesale and retail price statistics, and indices
 - 21 -

recently established by the Contraloria on the commercial prices of

principal cost-of-living goods. The general conclusions reached were
that the mark-ups (including importer or exporter, wholesaler, semi-
retailer and retailer by major activities) were in the general ranges
shown below:

Industrial Production: 15 to 25 percent of value of product,

f.o.b. factory
Agricultural Production: 7 to 12-1/2 percent above value at
-first rural market
Agricultural Industries, Handicrafts, Animals and
Subproducts, Dairy Farming: 10 to 20 percent above value at
first rural market
lMining: 10 percent above value f.o.b. mine
Imports: 20 to 35 percent above cost delivered ocean harbor
Exports; 5 to 10 percent above cost delivered ocean harbor.

The total value of service rendered by commerce was estimated on these

conservative bases.

In the computation of capital formation, however, higher markups

were utilized to express the spread between the cost of goods delivered
to the businessman and the price of the goods to the purchaser. It was
assumed that the mark-up of the importers was on the average 30 percent
above the cost of the goods delivered to them, while in the case of
locally-produced capital goods it was 20 percent above such delivery
costs. Miachines and, in general, all categories of goods with a high
unit cost (and these were "capital formation goods") are submitted to
higher mark-up ratios than all other goods.

According to the Superintendencia de Sociedades Anonimas, gross

profits in commerce were in 1945 approximately 6.2% of total sales.

An analysis of some balance sheets of Colombian firms also reveals

that payments for interest, warehousing, financing, depreciation, etc.
amounted in 1945 to about 30 percent of the total mark-ups. The total
value of wages and salaries, enterpreneurial profits, direct taxes,
retained earnings, or the value added by commerce was thus 70 percent
of the total value of services rendered. Admittedly, this estimate is
unsatisfactory and needs revision and rectification. However, the figures
it provides for value added (about 15 percent of national income) do not
substantially deviate from estimates for other neighboring countries.

G. Public Utilities

Electric Power

There are no reliable statistics on revenues, wages, salaries and

profits of electric power producers in Colombia. We had thus to study
consumption, compute revenues, and estimate the value-added ratio.
 The only firm basis for a study of Colombian consumption of power
is the series on output of the Bogota, Medellin and Barranquilla plants,
issued by the Banco de la Fepublica. Our first task was to extranolate
consumption figures from suoply data. This was made on the basis of
statistics provided by municipalities which indicated that consumption
of electric power in main centers was 82 percent of production (30 per-
cent of the power consumed went to industries in 1945 as in 1948).
Also, on the basis of data on electric power consumption in major munic-
ipalities, it was possible to determine that the total sales of electric
power in twelve major centers were approximately 25 to 33 percent above
sales of power in Bogota, Barranquilla and Medellin.2/ An estimate of the
total consumption of power in the country was then obtained by assuming
that the ratio of power consumption in the small municipalities to power
consumption in the large ones was proportional to the installed generating
capacity.

Data for 1938-1940 were extrapolated. To these figures on total

consumption were applied average kwh. rates as reported by the Instituto
de Aprovechamiento de Agua y Fuerzas Electricas and hypothetical revenues
were thus computed. Value-added ratio was estimated at 80 percent on the
basis of information provided by private sources, and Table A-21 summa-
rizes these estimates.

Other Public Utilities

Table A-22 presents series on gross revenues of telephone, tele-

graph and radio services. Value-added ratio is estimated at 80 percent.

H. Banking, Finance and Government

The Superintendent of Banks and the Banco de la Republica provide

accurate and complete data on the revenues of banks and payments to per-
sonnel and owners, and the total value of services provided by banks,
insurance companies and stock exchange has been computed by the staff of
the Banco de la Republica. Data given in Table A-23, therefore, may be
a close approximation to value added in these fields. There is no useful
information on the value of services and others. The series presented in
Table A-14 is based on the assumption that these residual items represent

2/ These statistics correspond quite closely to data provided by the

Contraloria on public utility sales from 1941 to 1943. In making these
statistics the Contraloria utilized data provided by approximately one-
third to two-thirds of the total public utility plants of the country --
presumably the most important ones, located in the major centers.
The data on power from 1941 to 1943 provided by the Contraloria (Anuario
General de Estadistica) does not seem to correspond with the series pro-
vided for 1938-40. It was assumed that this was due to faulty statistics
and that only the series presented for 1941-43 should be considered
reliable.
 - 23

from 15 to IF nercent of the total value of all economic services. The

fluctuation between l1 and 18 percent reflecte a judgment passed on the
relative over-estimation or under-estimation of other items of the
"iservice" category. It iE in substance a slight correction of the esti-
mates for transport, commerce, public utilities, etc. All evidence
points to the fact that our estimate for the item "services and others,"
set at Ps. '`100 million in 1945, is too small. Profits, wages and salaries
in real estate, and wages and salaries for domestic servants and for the
liberal professions alone would account for that amount. If to these
totals are a,ded entertainment enterprises, imputed or actual rentals,
the value a^lsd would certainly exceed Ps.8100 million. Tt is, however,
impossible to make any coherent approximation of the total sought, and
the matter will have to be investigated further.

Table A-14 describes the payments to personnel emDloyed by the

national, departmental and municiDal Governments, as reported in the
Anuario General de Estadistica, and the Anuario Fiscal y Administrativo.

ITT, COMPUTATICII OF CAPITTAL FOIKATION

Gross capital formation as defined in this study is based on im-

ports and local production of durable and capital goods, payments for
trade and transport in the delivery of these goods, payments to factors
of production participating in construction of buildings and dwellings,
paymlents to maintenance and installation crews and farm labor.

Imported Canital Goods

Series on the value of imports which contribute to capital forma-

tion will be founid in Tables A-24, k-25, A-26, A-27 and A-28. The selec-
tion of items was mede on the principle thet in underdeveloped countries
any durable goods which can be applied to productive processes and which
lead to higher production levels over the short- or long-termi can be
considered capital equipment. Therefore, animals used for reproduction
purposes, seeds used for improving crops or introducing new crops, rubber
tires for trucks, cement, bricks, glass, iron fixtures, etc. are all con-
sidered capital goods.

Statistics give the c.i.f. value of imported equipment, but this is

not actually the price of the equipment when delivered to the consumer
(or rather the investor). In order to obta.n an idea of the coEt of
capital formation through imported goods, it was necessary to estimate
the relation between c.i.f. prices and prices delivered to the investor.
For one ton of imported capital equipment a conFervative breakdown of
mark-up charges in 1947 follows:
 - 24 -

Value of 1 ton capital equipment, c.i.f. (1947) .......... Ps.462 2

Duties (according to Tarifa de Aduanas 1949 ) . .... 15
Transports (average for 1 ton steel Buenaventura to
Medellin or Barranquilla to Bogota) . .......... 80
Cost delivered plant site ...... ...... 717
Importers mark-up (30 percent on cost) including insurance
of 1 percent on c.i.f. (according to converations vith
importers and FENALCC) ............................... 215
Total price delivered plant site (150 percent of c.i.f.
price) ................................................. 932
Installation expenses (for industrial equipment only)
= 10 percent of value of material, according to several
engineering firms ..................................... 93
Total price of 1 ton of industrial equipment installed
(165 percent of c.i.f.) ................................. Ps.&1023

Domestic Production of Capital Goods

Colombian production of capital or dureble goods is small. Except

in the case of cement, data on production is only available for 194L-
1945, and values are given at "factory costs'1 (excluding gross profits).

Table A-29 describes t"factory-costs" of the national production of

capital and durable goods, according to the industrial census of 1944/45.
An f.o.b. price for these goods has been estimated by adding 20 nercent
tc factory costs. Total estimated value of production was thus Ps.033.5
million. Applying the index of the value of industrial production
(Table A-12) to this figure, we have computed the series shown in Table
A-30.

Considering the low unit values of capital goods manufactured locally,

the nearness of plants to the markets, the absence of import duties, and
the control which the producers are able to assume on distribution costs,
it was estimated that the srread between f.o.b. prices end delivered
prices in the case of construction material did not exceed 25 percent.
The same ratio was applied to other capital and durable domestic goods,
although it is obvious that this technique implies an understatement.
Improvement of the technique clearly awaits improvement in Colombian
f.o.b. price statistics.

Construction Costs

As shown above, transport and trade absorb an important part of the

investment in equipment; but the major local recipients of exoenditures
on capital formation are undoubtedly the construction workers and owners
of construction enterprises. Their mode of participation can be classi-
fied in two major categories -- namely, construction of buildings and
dvwellings and construction and improvement of roads, railrcads, ports,
harbors, and irrigation works.

Official statistics are available on both government and private

investment in all forms of building and dwelling construction (factories,
houses and hotels, commercial buildings, schools, etc.). A considerable
amount of adjustment of these statistics is called for because they cover
only investment in major towns, seem to disregard low-cost workers'
dwelling construction and do not include rural housing.

Table A-31 provides an estimate of the total value of buildings and

dwelling construction from 1939 to 1947. These figures were obtained as
follows:

(a) An estimate was made of the number of houses built each year for
each major income group.

(b) An estimate of the size of houses was also made, and the total
amount of square meters of dwelling built yearly in each category com-
puted.

(c) Average unit costs for the construction of various types of

dwellings were applied to these area data.

In the case of other buildings, resort was made to official statis-

tics kept by the Contraloria General and the Banco de la Republica.

Investment of the Nation, the departments, and the municipalities

in new projects and in the maintenance of old projects is presented in
Tables A-32, A-33, A-34, in two functional breakdowns: namely, by end use
(railways, harbors, buildings, hydroelectric plants, agriculture, commun-
ity services or municipal improvements, highways) and by types (buildings,
maintenance, public works).

Once the total value of construction was obtained, as shown in Table

A-35, a deduction was made of all "delivered" costs of equipment and
material of imported or local origin, which were calculated by resorting
to Tables A-24 to A-30. The residual indicated was, by necessity, approx-
imately equal to value added in construction. It will be seen that this
residual is roughly equivalent to 50% of the total value of construction,
a ratio which has also been indicated by builders and contractors.

Other Items of Capital Formation

Three major categories of items participating in gross capital forma-

tion remained to be estimated. Installation costs, as we have seen,
amount to 10 percent of the delivered costs of equipment. In Table A-30,
series are calculated for these two items from 1939 to 1947. Maintenance
costs relate mainly to maintenance of highways and railways and maintenance
of private rolling stock (motor cars and trucks). Table A-32 describes
total investment in maintenance for public railroads and roads. Half of
this total, it was assumed, would represent payments to maintenance workers
while the other half was already accounted for, under the item "delivered
value of equipment." In addition, the labor costs of maintenance of private
 - 26 -

rolling stock were estimated at Ps.-5 million in 1947, and those costs
for other years were assumed to be proportionate to those of govern-
ment maintenance. Finally, provision was made for the work of the
farmer in the opening of new lands. This value was estimated on the
assumption that the investment in the opening of land is equal to the
capital value of the land opened each year.

Gross Capital Formation

Series on gross capital formation shown in Table A-30 are believed

to be underestimated. Net capital formation can be calculated by the
deduction of depreciation allowances from the gross. Table A-36 breaks
down these allowances into major categories. These series (for dwell-
ings, buildings, rolling stock, railways and industries) were calcu-
lated as follows:

1, Depreciation of houses was calculated by assigning a replace-

inent cost to the square meter area depreciated for each type of dwelling.

2. The same technique was applied to buildings.

3. The numbers of vehicles in operation each year were matched with

imports to calculate depreciation. Value imputed is the average value of
imports for a given year.

4. Depreciation for industries has been estimated for 1944/45 as

a percentage of the total value of production, and this percentage is
assumed to have remained constant in the last decade.

5. Depreciation in railways has been estimated by the staff of the

Banco de la Republica.

6. Depreciation in other fields is tentatively assumed to have

amounted to 10 percent of the total value of items cited above.

Government Contribution to National Accounts

Government expenditures and government revenues play an important

role in the structure of national accounts. In the calculation of
gross national income on the income side of the accounts, they deter-
mine the size of items such as transfers, income tax, indirect taxes,
subsidies, and deficit or surplus of government enterprises.

In the calculation of gross national expenditures, they control

the items of Government investment, and expenditures of the Govern-
ment on current goods and services.

In order to obtain an estimate of these items, it was necessary to

present the accounts of national, departmental, and municipal govern-
ments in a specialized form. This is done in Tables A-37, A-38, A-39
and A-40, based mainly on documents of the Contraloria General.
 - 27 -

It was first necessary to obtain an adequate picture of expendi-

ti-ares by the Government, and thus to eliminate the transfers from
nation to departments and departments to municipalities. This is done
in Table A-38.

Also, the business account of government (expenditures and receipts

incurred in the sale of-goods and services by government enterprises)
had to be estimated. A summary statement is found in Table A-39.

Total taxes and transfers are shown in Table A-40 in a way which
may depart from usual practice. These elements are brought together in
Table A-37, with figures on capital formation by the government sector.
Two important residuals emerge, namely, the current expenditures on goods
and services (total expenditures in Table A-38 minus transfers, Table
A-40; minus business expenditures, Table A-37; minus Government capital
formation) and Government deficit (expenditures minus receipts).
 Table A-1: GROSS NATIONAL PRODUCT AND COMPONENTS, 19 3 9-l947
(In million pesos)

Item .,Year
tem -1939 290 - 1941 1942 1-943 1944 _12945 l946

Expenditure components 1,236.0 i,196.5 1,239.2 1,342.1 1.525,1 1,878.4 2,366.6 2,906.2
3,7.8
Government expenditures on
goods and services, current 97.0 102.1 88.1 113.6 139.9 162.4 154.3 212,2 269.4
Government expenditures on
goods and services, capital 50.8 66.5 65.0 81.0 78.5 76.7 97.7 130.8 165.0
Private gross capital formation 102.5 98.2 112.5 75.7 81.3 110.2 203.0 324.2 447.0
Net exports (+) ) 47.0 - 20.0 - 36.0 + 66.0 + 72.0 + 52.0 - 35.0 - 51.0 - 193.0
Net imports (-) )
Consumer expenditures 1,032.7 949.7 1,009.6 1,005.8 1,153.4 1,477.1 1,946.6 2,290.0 2,985.4

Income components 1,236.0 1,196.5 1,239.2 1,342.1 1,525.1 1,878.4 2,366.6 2,906.2 3,673.8
-Depreciation 38.1 33.6 33.7 48.5 37.5 38.8 87.1 110.8 128.5
-Indiroect taxes and profits of
government enterprises 148.9 129.9 142.5 134.6 148.6 179.6 217.5 258.4 306.3

National income 1,049,0 1,033.0 1,o63.0 1,159.0 1,339.0 1,660.0 2,062.0 2,537.0 3,239.0
+Transfer payments 14.6 21.7 18.4 23.9 28.8 26.2 38.5 39.0 42.0
-Retained earnings 10.0 20.0 20.0 20.0 20.0 50.0 50.0 140.0 150.0

Personal income 1,053.6 1,034.7 1,061.4 1,162.9 1,347.8 1,636.2 2,050.5 2,436.0 3,131.0
-Income taxes 21.6 24.3 24.7 33.2 49.1 55.3 67.1 87.6 130.1

Disposable income 1,032.0 1,010.4 1,036.7 1,129.7 1,298,7 1,580.9 1,983.4 2,348.4 3,000.9
-Consumer expenditures 1,032.7 949.7 1,009.6 1,005.8 1,153.4 1,477.1 1,946.6 2,290.0 2,985.4
Personal savings - .7 60.7 27.1 123.9 145,3 103.8 36.8 58.4 15.5
 Table A-2: VOLUM OF AGRICULTURAL PRLODUCTION, 1934, 1938-1948
(In thousand. tons) Page 1
Yesx
Product 193 L
138LJ2 1240 - j-19-41 1942 - _L944 1945 126 1947 D~
(a) (a) (b) (a) (b) (a) (b) (a) (b) ( (a) (b) (a~)
) -(b)- (a) (b) (a) (b) (a) (b) (a)
Rice 54 75 .. 75 . 77 54 87 61 87 61 68 79 88 84 83 98 118 77 113 93 182

Corn 500 491 ... 550 . 610 491 578 471 548 535 564 525 617 568 615 749 620 528 620 618 655
W'heat 98 91 ... 126 . 125 91 142 64 108 118 91l 102 81 113 82 90 119 72 120 89 118

Barley 4 6 ... 7 .. 9 9 19 11 10 10 6 11 10 12 18 11 26 24 25 ... 29

Beans 30 36 *. 35 *. 33 30 32 31 33 34 41 37 49 37 57 60 60 60 55 45 60

Potatoes 225 371 .. 459 .. 444 . 398 . 418 ... 345 ... 402 ... 448 ... 460 237 460 343 486

Yucca/Yams 400 437 .. 474 . 511 . 548 *. 585 ... 622 *. 659 .. 696 ?.30 ... 767 .. 775

Plantains 960 955 *. 955 *. 955 *.955 * 955 .** 955 * 955 ** 955 *. 951 ... 950 .. 918

Bananas 185 ... 195 ... 184 ... 128 *... 77 *** 7 ...- / .. 12 ... 30 ... 41 ... ... 83

Sugax 36 47 *.. 46 .. 48 ... 58 . 64 99 6

6
... 72 ... 76 ... 76 ... 83 ... 109

Panela 506 553 ... 565 . 578 639 591 *. 0 04 618 618 630 632 649 646 . 66i .*.. 676 .. 691

Miel 67 77 ... 70 .. 63 .. 56 .. 49 . 49 ... 49 ... 50 . 50 ... 50 .. 50

Cacao 11 11 ... 12 . 14 . 12 . 12 . 9 ... 9 ... 10 .. 11 ... 8 1

ll

Coffee 210o 268 268 265 265 267 267 286 286 329 329 317 317 332 332 3,33 328 325 346' 347 369 368
Cotton (Fibre) 3 6 .. 7 .. 2 *. 3 ... 5 .. 4 .. 6 .. 5 .. 5 ... 6 *. 6

Tobacco 11 14 *. 15 . 16 ... 18 . 16 *. 15 .. 15 . 16 ... 19 ... 19 ... 20

Fibres (Fiaue) 10 10 0
lo * 10 ... 10 .. 10 99 10 ... 10 . 10 ... 10 . 10 . 11

See footnotes on following page.

 Table A-2: Continued

Gc-neral notes:
Statistics under (a) from Economia Agricola de Colombia by Raul Varela Martinez.
For yucca/yams, plantains and fique, series projected on basis of 1934 and 1946 volumes of production.
For beans, miel, series projected on basis of 1934, 1938, 1942, 1946 volumes of production.
Statistics for 1947 estimated on basis of series 1944-46 (except for rice, barley, sugar, cotton fibre, for which
statistics are reported).

Statistics under (b) from Estudio sobre la Conservacion de Alimentos by Instituto Nacional de Abastecimientos, for rice, corn, wheat,
barley, beans (1940-194?) anc for potatoes (1946-1947).
from Alimenitos, a publication of the Ministry of Commerce and Industries, for panela (1940-42-43-44).
from the Boletin of the Coffee Growers Association, for coffee (these statistics cover the coffee years from the
1st of October of the preceding year to the 30th of September of the current year ).
from the Anuario de Comeroic, Exterior, for bananas (non export bananas are reported as plantailns).

1tess thanl 50 tons.

/ Panela: Statistics under (a) projected on a basis of a yearly grovth of 2 1/4% from an estimated base figure of 661,000 tons in 1946.
 Table A-3: ESSENTIAL COFFEE STATISTICS, 1938-1948

Average Average Average Total f.o.b.

Total value price per f.o.b. price f.o.b. price value
Year Total production / as Total exports ton paid per ton per bag
paid to farmer to grower (All coffees) of 60 K.

Bags of Thousand Bags of Thousand

60 K. tons Million pesos 60 K. tons Pesos Million pesos
1938 4,460,000 268 67.00 4,262,366 255.74 250 380.0 22.80 97.18

1939 4,417,000 265 70.76 3,773,652 226.42 267 402.8 24.17 91.20

1940 4,450,000 267 51.53 4,456,852 267.41 193 278.6 16.72 74.50

1941 4,760,760 286 80.94 2,911,505 174.69 283 506.0 30.36 88.40

1942 5,487,626 329 97.o6 4,309,472 258.57 295 559.6 33.58 144.70

1943 5,282,659 317 101.76 5,250,922 315.06 321 558.0 33.48 175.80

1944 5,533,080 332 128.82 4,923,305 295.40 388 557.5 33.45 164.70

1945 5,478,391 328 142.35 5,149,389 308.96 434 592.6 35.56 183.10

1946 5,761,779 346 207.60 5,661,464 339.69 600 807.7 48.46 274.38

1947 6,158,605 370 283.78 5,338,866 320.28 768 1,076.4 64.58 344.76

1948 5,529,263 332 261.71 5,587,535 335.25 789 ... .. .

I/ Production shown for coffee years, from 1st of October of past year to 30th of September of year indicated.

Source: Boletin de la Asociacion Nacional de Cafeteros.

 Table A-4: UNIT PRICES OF MAJOR AGRICULTURAL CO4MODITIES, 1938-1948

(Price at rural market in pesos per arroba,'/)

Year
Commodity 1938 1939 1940 1941 1942 1943 19 1 1

Panela 1.47 1.70 2.01 1.43 1.65 2.05 2.80 3.18 2.95 3.42 2.87

Sugar 2.02 2.29 2.56 2.25 2.69 2.30 2.53 3.22 3.58 3.87 3.91

Corn 1.06 1.28 1.08 0.89 1.29 1.80 2.12 2.19 2.32 2.50 3.40

Wheat 1.65 2.35 1.85 1.79 2.58 3.22 2.82 4.15 4.70 3.70 5.40

Rice 2.53 2.68 2.50 2.58 3.28 3.89 4.30 4.58 4.58 7.43 7.28

Yucca 0.53 0.63 0.43 0.40 0.71 0.88 0.92 1.08 1.15 1.78 1.78

Potatoes 1.27 1.47 1.11 1.09 1.59 2.30 3.10 3.04 3.17 3.40 3.50

Plantains 0. 6 OW 0.65 0.51 0.46 0.60?/ 0.60-/ 0.79 0.84 1.09 0.59 0.70

Beans 2.89 3.07 2.84 3.18 3.61 6.oo 5.52 4.80 8.64 8.29 10.40

Cacao 8.45 8.37 7.07 8.41 9.35 12.66 12.67 11.97 16.42 17.43 25.96

Barley 2.08 2.49 2.15 2.08 2.83 3.53 4.43 4.45 4.83 4.60 5.46

iJ Arroba 12.5 kilograms

g/ Assumed.

Source: Weighted average of prices given by Anuario General de Estadistica and Banco de la Republica.
 Table A-5: AC-RICULTURE: VALUE OF PROCESSED CROPS, 1938-1948

(Whether or not included in industrial statistics)

(In million pesos)

Product 1 1 1 1 9 Year
_ _
1938 1232 1940 1941 1242 1943 1944 1945 1946 1947 1948

Lint cotton 2.66 2.66 1.78 2.23 2.12 2.78 5.50 4.80/ 5.50 11.90 18.30

Sugar cane derivatives

Sugar
Market price 7.60 8.40 9.80 10.40 13.80 12.30 14.60 19.60 21.80 25.70 33.80
Mill price 6.50 6.80 8.60 11.30 8.10 9.70 12.00 16.10 17.90 21.10 27.70
Panela
Market price 65.00 76.80 92.90 67.60 79.70 101.40 141.60 164.30 160.00 185.00 198.30
Mill price g/ 53.30 63.00 76.20 55.40 65.40 83.10 116.10 134.70 131.20 151.70 162.60
Miel
Market price 3.40 3.20 2.90 2.60 2.40 2.40 2.40 2.40 2.50 5.00 7.50
Mill price 3/ 2.80 2.60 2.40 2.10 2.00 2.00 2.00 2.00 2.00 4.10 6.00

Total mill price 62,60 72.40 DjO 68.80 2 94.80 130.10 152.80 151.1 176.90 196.30

Sugar cane 1 14.40 16.70 20.10 15.80 17.40 21.80 29.90 35.10 34.80 40.70 45.10

Cottonseed 0.34 0.41 0.26 0.44 0.29 0.50 o.60 0.40 0.40 0.70 1.90

Lint and cottonseed v 3.00 3.07 2.04 2.67 2.41 3.28 6.10 5.20 5.90 12.60 20.20

Raw cotton 2.50 2.56 1,70 2.23 2.01 2.73 5.08 4.33 4.90 10.50 16.83

1/ 1944-1945.
3/ 82% of market price.
S/ 23% of total mill price of s'zgar cane derivatives.
L/ 120% of raw cotton.
 Table A-6: AGRICULTURE: ESTIMATED VALUE OF PRODUICTION, 1938-1948
(In million pesos)

Product Year
P38 1939 190 1941 1942 1943 1944 1945 1946 I947
1 1945
Cacao 7.4 8.0 7.9 8.0 9.0 9.1 9.1 9.6 14.4 11.2 22.8
Coffee 1/ 67.0 70.7 51.5 80.9 97.0 101.7 128.8 142.3 207.6 283.8 300.0
Raw (seed) cotton 2.5 2.6 1.7 2.2 2.0 2.7 5.1 4.3 4.9 10.5 16.8
Corn 41.6 56.3 52.7 41.1 56.5 81.2 104.6 107.7 115.1 124.0 172.7
bugar cane 14.4 16.7 20.1 15.8 17.4 21.8 29.9 35.1 34.8 40.7 45.1
hice 15.2 16.1 15.4 17.9 22.8 21.2 30.3 30. 43.2 67.2 105.4
wvheat 12.0 23.7 18.5 20.3 22.3 23.4 18.3 27.2 44.7 35.5 51.0
Barley 0.1 0.1 0.6 1.5 0.8 0.5 1.7 4.0 3.8 9.2 12.7
Beans 8.3 8.6 7.4 8.1 9.5 19.7 21.6 26.0 24.8 36.5 49.9
Bananas (Exports) 8.9 8.8 5.6 2.9 0.3 0.0 0.5 1.9 3.4 7.9 10.3
Plantains 45.8 49.7 39.0 35.1 45.8 45.8 60.4 64.2 82.0 44.8 56.0
Potatoes 37.7 54.0 39.L 34.7 53.2 63.7 99.9 108.9 116.6 125.1 136.1
yucca/Yams 18.5 23.9 17.6 17.5 33.2 43.8 48.5 60.2 67.2 109.2 110.4
Tobacco 9.2 9t9 8.1 9.7 9.7 8.3 8.8 9.4( 11.2 13.5 15.9

Total 288.6 349.1 285.5 295.7 379.5 442.9 567.5 631.1 774.6 919.1 1105.1

oilseeds .. .. ... ... ... ... ... ... 2.2 ... 3.6
Fi que , .... 1 ... 4.5
Fruits . .. ... ... .. . ... 6.o .. 6.5
Vegetables ... 14.0 ... 20.0
uthers ... ... ... ... ... ... ... ... 2.8 ... 3.0

Total 2/ 11.0 13.3 10.8 11.2 14.4 16.8 21.6 24.0 29.1 34.9 37.6

Grand total 299.6 362.4 296,3 306.9 393.9 459.7 589.1 655.1 803.7 954.0 1142.7

Value added 3/ 239.7 289.9 237.0 245.5 315.1 367.8 471.3 524.1 643.0 763.2 914.2

1/ Bought Nro -airmer.

'/ Where details by commodity are not available, total is 3.8% of total major products.
3/ 80% of grand total.
 Table A-7: VALUE ADDED IN SMALL AGRICULTURAL INDUSTRIES, 1939-1948

(In million pesos)

Industry Year 14 97 14
1939 1940 1941 1942 1943 1944 1945 1946 1947 1948

Value of panela
at mill 63.0 76.2 55.4 65.4 83.1 116.1 134.7 131.2 151.7 162.6

Value added
by panela j 48.5 58.7 42.7 50.4 64.0 89.4 103.7 101.0 116.8 125.2

Value added by
fique bags
guarapobg 12.1 14.7 10.8 12.6 16.0 22.4 25.9 25.3 29.2 31.3

Total value
added 60.6 73.4 53.5 63.0 80.0 111.8 129.6 126.3 146.0 156.5

.2/ 77% of total mill price.

g/ 25% of value added by panela.

 Table A-8: UNIT PRICES OF ANIMALS, 1938-1947
(In pesos per head)

Year
Type 1938 1939 19LO 1941 1942 1943 - 19444 1945 - 1946 1947
Beef cattle
Animals slaughtered for
meat 1/ 82.20 79.90 78.40 79.80 71.60 83.40 103.00 132.90 138.30 228.50
Animals traded 2/ 48.50 51.00 46.00 48.00 53.00 64.00 75.00 92.00 105.00 110.00
hogs
Animals slaughtered 16.90 21.70 24.10 22.80 22.10 46.60 73.00 74.00 82.00 ...
Animals traded 2/ 16.90 22.00 24.50 19.70 19.00 28.00 38.00 49.00 53.00 59.70
Theep 2/ 9.00 7.00 6.50 5.50 6.50 10.00 14.00 17.80 14.55 22.30
coats 4/
4.50 5,00 5.00 3.00 4.00 5.70 7.50 8.32 8.65 14.00
Hlorses 57.00 54.00 53.00 50.00 65.00 87.50 110.00 123.00 152.00 14O.00
Mlules 72.00 68.oo 63.00 65.00 83.00 117.00 152.00 176.00 210.00 199.00
Uonkeys 17,50 21.00 19.50 25.00 25.00 35.00 45.00 60.00 68.00

1/ Riqueza Pecuaria de Colombia - 1947. Ddinisterio de Acricuiltura y Ganaderia.

2/ On the basis of average price of sales in Caldas, as representative of an average Colombian market
price. (Anuario General de Pstadisticas)

Source: Averages of prices for all Departments given by Anuario General de Estadistica, except when otherwise
indicated.
 Table A-9: VALUE AMD NUMBER OF ANIMALS SLAUGHTERED, 1938-1948

Assatere d
Year vauJIn million pesos) Value Nue ( husands _
Cattle Hogs Sheep Goats Total added ;/ Cattle Hogs Sheep Goats

1938 81.60 11.30 100 0.09 2L. 75.19 993 666 106 21

1939 78.50 13.00 0.80 0,09 73.91 982 601 110 17

1940 77.10 13.50 0.70 0.09 73.11 983 562 109 18

1941 79.00 13.90 0.60 0.05 2iL5S 74.84 990 610 109 18

1942 74.60 14,90 0.50 0o06 90t06 72.05 1,042 673 70 16

1943 95.60 31.90 0.70 0,09 128.2 102.63 1,145 684 71 16

1944 123.80 42,10 0,34 0.10 1L6684 133.47 1,202 574 60 14

1945 158.60 50.20 1.63 0.15 ggL 168,46 1,198 566 92 18

1946 174,20 54.50 1.40 0.14 g 184e19 1,259 664 99 16

1947 308.90 70.50 2.00 0,14 3815A 305.23 1,352 613 89 14

1948 278.10 71.50 1.80 . I,;Q 281.68 1,315 570

31/ Assued to be 80% of total value.

Sources: Cattle and hogs, Raul Varela Martinez - Riqueza Pecuaria de Colombia; hog prices, average for
fat hogs; sheep and goats, Anuario General de Estadistica.
 Table A-10: VALUE OF SALES OF ANIMAL SUBPRODUCTS, 1938-1948

(In million pesos)

Subproduct
Year Value Value added 1i
Milk Eggs Skins Wool Total Milk Eggs Skins Wool Total

1938 14.58 10.64 3.56 .15 28.93 11.66 8.51 2.85 .12 9"i

1939 14.34 10.46 3.50 .15 28.44 11.47 8.37 2.80 .12 ajt72

1940 14.18 10.35 3.46 .14 28.13 11.34 8.28 2.77 .11 2250

1941 14.51 10.59 3.54 .15 28.79 11.61 8.47 2.83 .12 23.03

1942 13.97 10.20 3.41 .14 27.72 11.18 8.16 2.73 .11 22,18

1943 19.91 14.53 4.86 .20 39. 15.93 11.62 3.89 .16 27.5

1944 25.88 18.89 6.31 .26 51.35 20.70 15.11 5.05 .21 41.08

1945 32.67 23.84 7.97 .33 64.82 26.14 19.07 6.38 .26 51.86

1946 35.72 26.07 8.71 .36 70.87 28.58 20.86 6.97 .29 56.70

1947 59.20 43.20 14.44 .60 117.L4 47.36 34.56 11.55 .48 93.95

1948 54.52 39.79 13.30 .55 108.16 43.62 31.83 10.64 .44

I/ 80% of total value.

General notes:
Value of milk estimated by V.M. for 1947 is divided by three, in accordance with findings of the
National Nutrition Institute. Figures for other years are extrapolated in proportion with values
given for sales and production of animals.

Sources: Ministry of Agriculture, Raul Varela Martinez - Riqueza Pecuaria de Colombia 1947.
Various other sources.
 Table A-li: ESTIIATED BREAKD()WN OF VALUE OF INDUSTRIAL PRODUCTION IN THE CENSIU YEAR 1944-1945
(Value in million pesos - f.o.b. ex-factory)

Total
Item Cost value of
of production Value
production 1/ (f.o.b. factory) added
Raw materials 4t84.36 484.30
Fuels 11.04 14.ho
Wages 66.47 66.47 66.47
Salaries 30.85 30.85 30.85
Social security 8.23 8.23 8.23

Sub-total 601.85 604.25 105.55

Insu-rance 1.57 1.57
Rents 3.90 3.90
Depreciation ... 21.50
Patents, royalties, propaganda,
selling costs and maintenance ... 21.50
Interest paid ... 4.20
Interest received -2.90
Excise taxes 35.98 35.98

Sub-total 41.45 85.75

Income taxes ... 23.80 23.80
Distributed profits ... 70.50 70.50
Undistributed profits ... 45170 45.70
"Liquid Profit" ... 140.00 140.00
Not Described -1.90

Grand total 641.h40 830.00 245.50

1/ Source: Industrial Census, 194h-1945, Contraloria General

 Table A-12: INDUSTRIAL PRODUCTION INDICES, 1939-1948

(1939 = 100)

Product Weights Year

1939 140194 1942 1943 1944 1945 1946 1947 1948

Volume
Margarine 5.0 100 109 113 73 67 ... 78 115 153 122
Soft drinks 4.0 100 104 137 120 152 211 259 317 375 380
Men's shoes 2.0 100 118 118 132 106 .. 213 224 235 245
Women's shoes 1.0 100 149 126 115 112 . 320 386 452 493
Children's shoes 0.5 100 156 142 124 103 ... 449 488 527 519
Cement 6.0 100 100 126 86 119 . 173 189 205 214
Beer 21.0 100 102 115 119 119 140 160 200 240 306
Cigarettes 24.0 100 104 108 120 111 125 139 162 185 207
Chocolate 8.0 100 108 110 113 110 *8. 149 158 166 148
Sugar 8go 100 105 139 121 147 ... 144 160 177 217
Soap 3.5 100 75 78 59 62 .. e 78 94 110 146
Stearic candles 2.0 100 140 152 111 44 ... 92 121 150 161
Liquors 15.0 100 118 125 88 163 ... 268 257 246 302

Weighted average 100 107 118 107 120 138 170 191 213 IQ
Arithmetic mean 100 114 122 106 107 159 194 221 248 266
Median 100 108 126 115 112 140 160 189 205 217

Unit Price
Beer 25.0 100 106 107 95 103 123 142 161 180 188
Soft drinks 5.0 100 102 104 121 111 130 149 168 187 206
Men's shoes 2.0 100 85 93 92 146 . .. . ... 206 243
Cement 7.0 100 115 107 124 156 .,. 173 218 233 245
Cigarettes 29.0 100 102 105 102 108 121 134 147 159 172
Chocolate 10.0 100 99 104 111 111 ... ... ... 208 275
Soap 4.0 100 129 127 271 277 ... ... ... 488 539
Liquors 18.0 100 101 90 100 93 ... 131 154 178 202

Weighted average 100 104 103 110 115 123 140 160 193 215
Arithmetic mean 100 105 105 127 138 125 146 170 230 259
Median 100 102 105 107 124 123 142 161 197 225

Value 100 111 122 118 U8 170 238 306 411 522
Table A-123: VALUE AND INDEX OF INDUSTRIAL PRODUCTION (f.o.b, EX-FACTORY),
AND VALUE ADDED IN INDUSTRIES, 1939-1948

,,In million pesos Production index

Year Value of Value (1939 = 100)
i2roduct ion , added

1939 407 120 100

1940{ 452 133 111

1941 496 147 122

1942 480 142 118

1943 562 166 138

1944 692 204 170

1945 968 286 238

1946 1,245 367 306

1947 1,673 494 411

1948 2,124 627 522

 Table A-14: NATIONAL INCOME AT FACTOR COST, 1939-1948

(In million pesos)

Industry Industry 1939 1940 1941 1942 ~~~~~~~~~~~Year

1943 1944 1945 1946 1947 1948

Agriculture 290 237 245 315 368 471 524 643 763 914
Animal husbandry 74 73 75 72 103 133 168 184 305 282
Small agricultural industries 61 73 53 63 80 112 130 126 146 156
Dairy products, poultry 23 22 23 22 27 41 52 57 94 86

Total agriculture 1448 4°5 396 472 578 757 874 1,010 1,308 1,438

Mining 40 46 46 34 35 48 47 52 70 83
Manufacturing industries 120 133 147 142 166 204 286 367 494 627
Handicrafts 50 53 54 58 62 68 79 92 113 128 J
CV.nstruction 42 55 60 94 72 67 111 154 140 162

Total non-agriculture 252 287 307 328 i 665 817 1,000

Transportation 56 54 60 61 75 87 101 131 154 176

Commerce 145 139 148 141 174 214 281 358 497 552
Government 61 64 63 62 69 85 130 156 200 229
Public utilities 13 13 16 16 18 20 23 26 29 33
Banking/finance 20 19 20 21 21 22 30 37 44 46
Services and others 54 52 53 58 69 88 100 154 190 216

Total services 349 341 360 359 426 516 665 862 1,114 1,252

Total national income 1,049 1,033 1,063 1,159 1,339 1,660 2,062 2,537 3,239 3,690

j Projected.
 Table A-15: VALUE OF MINING PRODUCTION AND BREAKDOWN OF COSTS, 1945

Values (in million pesos)

Costs
Total
Total (value added
Mineral Output value of Gross Taxes to national
Unit Volume production Salaries Wages profits i income)

Gold oz. fine 506,695 31.0 3.1 5.1 1.7 2/ 1.5 11.4

Silver oz. fine 168,699 0.1)

0.3 3/ 0.5. 1.0
Platinum oz. fine 34,757 1.7)

Petroleum 000 bbls. 22,825 45.7 10.7 8.7 - 4.5 23.9

Salt metric tons 105,072 5.4 .. ... ... - 2.7 /

Coal tons 870,000 8.9 0.3 3.1 2.2 k -5.6

Limestone tons 303,000 2.0 ... ... ... -)

Others - 3.0 ... ... ... -)

Total 97.8

2*/ Taxes, instead of gross profits, are entered for foreign enterprises, inasmuch as it is the only part of the
gross profits which remain in the coLuntry.
2j Gross profit of national mines only (28% of their value of production).
.3/ Assumed to be proportional to gold mining.
A/ Preliminary estimates.
*5/ Gross profits = 23.8% of sales.

Sources: Volume ) - Anuario General de Estadistica ) Except for coal and limestone.
Total values ) - Bulletin, Banco de la Republica )

Salaries, wages, gross profits - Studies by Colombian National Income Committee.

 Table A-16: VALUE OF MINING PRODUCTION AND CONTRIBUTION TO NATIONAL INCOME, 1939-1949

(In million pesos)

Gold Silver Platinum Petroleum Salt Coal Other Total

Value Value Value Value Value Value Value Value
Value added Value added Value added Value added Value added Value added Value added Value added
(36.7%) (54.6%) (54.6%) (52.3%) (50.0%) (62.0%) (51.7%)

1939 34.9 12.8 .16 .09 1.10 .60 38.2 20.0 4.20 2.10 2.9 1.8 4.40 2.3 85.86 39.69

1940 38.7 14.2 .16 .08 1.70 .93 48.3 23.7 4.20 2.10 4.3 2.7 4.96 2.6 99.27 46.31

1941 40.2 14.8 .16 .09 1.70 .93 45.1 23.6 3.20 1.60 4.0 2.5 4.96 2.6 99.32 46.12

1942 36.5 13.4 .16 .09 2.20 1.20 20.3 10.6 0.50 2.50 6.7 4.2 3.70 1.9 74.56 33.89

1943 34.7 12.7 .16 .09 1.90 1.00 24.7 12.9 4.80 2.40 6.4 4.0 3.80 2.0 76.46 35.09

1944 33.9 12.4 .15 .08 1.40 .76 45.8 24.0 6.30 3.60 7.8 4.8 5.00 2.6 100.35 48.24

1945 31.0 11.4 .14 .08 1.66 .93 45.7 23.9 5.39 2.69 8.9 5.5 4.89 2.5 97.78 47.00

1946 26.8 9.8 .21 .12 1.68 .93 52.4 27.4 6.70 3.30 11.9 7.4 5.30 2.7 104.99 51.65

1947 23.5 8.6 .13 ,07 3.70 2.02 83.4 43.6 7.80 3.90 12.8 7.9 6.90 3.6 138.23 69.70

1948 20.5 7.5 .14 .07 3.20 1.74 105.9 55.4 11.40 5.70 13.5 8.8 8.10 4.2 162.74 83.41

1949 26.1 9.6 .15 .08 ... ... 143.3 74.9 13.60 6.80 13.5 8.8 10.40 5.4 207.05 105.58

Sources: Boletin Mensual, Banco de la Republica.

Anuario General de Estadistica.
 Table A-17: RAILROADS: REVETE S AND MElf1DITU=ES, 1939-1947

(In million pesos)

Item Y

NATIONAL RAILROADS
Gross income 13.5 13.6 13.5 16.7 21.2 23.6 30.3 34.7 35.6
Gross expenditures 11.4 11.7 11,7 12.2 16.0 18,9 24.3 27.2 36.8
Depreciation 1.0 1.1 1.7 2.4 1.8 1.5 2.0 2.2 2.6
Profits 2.1 1.9 1.8 4.5 5.2 4.7 6.0 7.5 -1.2

DEPARTMENTAL RAILXDADS
Gross income 7.5 5.2 5.4 5.9 7.5 8.2 12.7 11.9 11.4
Gross expenditures 4.6 3.7 3.5 4.3 3.9 5.6 7.7 11.3 9.6
Depreciation .6 .4 .7 .9 .6 .5 .8 .8 .7
Profits 2.9 1.5 1,9 1.6 3.6 2.6 5.0 .6 1.8

PRIVATE RAILROADS
Gross income 1.1 2,3 2,2 1.8 2.1 2.6 3.1 2.4 2.3
Gross expenditures 1,0 2.5 2. 2.1 2.0 2.2 2.4 1.5 1.7
Depreciation .1 .2 .3 .3 e2 .2 .2 2 .2
Profits .1 - .2 .1 - .3 .1 .4 .7 .9 .6

ALL RAILRAODS
Gross income 22,1 21,3 21.1 24,4 30.8 34.4 46.1 49.0 49.3
Gross expend.itures 17.0 17.9 17,5 18.6 21.9 26.7 34.4 4o.o 48.1
Wages 6.6 5.4 5.7 5.5 7.1 8.4 10.0 14.5 17.5
Salaries 4.1 3.5 3.7 4.0 5.0 6.o 6.9 9.0 10.9
btepreciation 1.7 1.7 2.7 3.6 2.6 2.2 3.0 3.2 3.5
Other 4.6 7.3 5.4 5.5 7.2 10.1 14.5 13.3 3.1
Net income 5.2 3.2 3.6 5.6 8.8 7.8 11.7 9.0 1.2
Profits 5,1 3.2 3.6 5.8 8.9 7.7 11.7 9.0 1.2

VALUE ADDED J 15.9 12.1 13.0 15.1 20.9 22.2 28.6 32.5 29.6

I/ Total of wages, salaries and net income of all railroads,

 Table A-18: STRUCTURE OF COSTS IT TRANSPORT INDUSTRIES, 1945

(In million pesos)

Total
Total value of
Industry Wages Salaries profiss Value services
prof'its added (Gross
reven i)

Railroads 10.00 6.90 11.70 L 28.60 46.10

Trucks 14.8o 4.50 7.10 26.'49 58.90

Busses 6.90 1.60 4.50 L 13.17 37.60

Public automobiles 3.20 1.10 2.00 6.30 .,.

Inland shipping 6.20 0.36 1.10 / 7.66 11.79

Pipelines 0.70 2 - 4.30 2 5.00 U ...

Airlines 0.80 4.50 I 1.60 2 6.90 15.90

Streetcars 1.00 0.12 0.80 L 2.12 3.50

Total 43.60 129.8 -624

96.120 17J-2.

Other ... ... ... 4.70 ...

LI Before tax.
/ Estimated.
)' Liquid.
g/ Total wages and salaries known. Breakdown estimated.
/ Human and animal transport, merchant fleet, etc.
 Table A-19: VALUE ADDED BY TRANSPORT INDUSTRIES, 1939-1948
(In million pesos)

Industry
Industry 1939 1940 1941 1942 Year
1943 1944 1945 1946 1947 1948
Railroads 15.90 12.10 13.00 15.10 20,90 22.20 28.60 32.50 29.60 33.70
Trucks 14.68 15.62 17.69 18.72 19.02 24.69 26e49 42.57 59.74 70.72
Buses 6.78 7.67 8.98 6.69 10.36 12.16 13.17 16.45 19.56 23.74
Airlines 2.32 2.78 3.33 3.99 4.79 5.75 6.90 8.28 9.94 11.93
Inland shipping 6.44 5.83 5.88 5.15 6.07 6.88 7.66 8.16 8.97 5.92
Streetcars 1.35 1.29 1.29 1.31 1.55 1.80 2.12 1.91 2.06 i/ 2.22
Total 7,Zk2 Ut17
502. 50.96 62.69 21a8 84t. 1098 222
122±72 3
All other
transportation2/ 8.97 8.56 9.48 9.63 11.85 13.89 16.06 20.77 24.55 28.02
Grand total 59.65 101.00 130.64 154.2 1 2

i/ Figures reached on progression basis.

g/ Public automobiles, pipelines, animal transport, and merchant fleet.
 Table A-20: RAILROADS: OPERATING STATISTICS A1D BASIC ERIGRIT RATES, 1939-1947

Item unit Year

1939 1940 1941 1942 1943 19241 1945 1946 1947
Paid freight Ton Km (000) 295,840 309,134 312,974 369,427 449,959 458,532 552,674 579,259 546,ooo
Free freight Ton Km (000) 32,531 30t743 25,808 25,794 289464 26,159 29,927 33,491 ...
Cattle Cattle-Km (000) 37,682 24,367 2 5,4 4 0 40,006 46,879 52,596 44,254 62,983 ...
Income and Gross income
expenditures (000 pesos) 22,100 21,073 21,144 24,349 30,880 34,388 46,0o45 48,951 49,306
Income and Net income
expenditures (000 pesos) 5,474 5,401 5,497 7,940 10,788 9,548 13,930 9,o67 ...
Workers Value (000 pesos) 6,624 5,356 5,707 5,491 7,083 8,409 9,970 14,496 ...
Employees Value (000 pesos) 4,074 3,524 3,703 3,957 4,978 5,999 6,851 9,014 e..

Paying Passengers Km
passengers (o0o) 486,879 456,651 462,160 565,483 650,568 727,016 782,103 850,596 814,ooo
Non-paying Passenger Km
passengers (000) 40,280 36,556 34,719 33,843 33,305 30,5144 35,028 40,745 ...
Freight income (000 pesos) 15,882 15,273 15,363 16,907 21,431 23,201 29,388 32,639 32,887
Passenger income (000 pesos) 5,477 4,568 4,705 6,o66 7,750 9,239 10,953 11,635 11,735
Freight rate per
ton kilometer Pesos o054 .049 .049 .046 .048 .051 .053 .056 .o60
Passenger rate per
ton kilometer Pesos .011 .010 .010 .011 .012 .013 .014 .014 .014
Truak freight rate
per ton kilometer Pesos .108 .098 .098 .092 .o96 .102 .106 .112 .120
Inland shipping
freight rate per
ton kilometer Pesos .027 .025 .025 .023 .024 .026 .027 .028 .030

'Note: It is assumed that truck freight rates are twice the railroad rate, and that inland shipping rates are half.

Source: Anuario General de Estadistica, years 1939-1947, for railroad statistics.

 Table A-21: ELECTRIC POWER AND OTHER PUBLIC UTILITIES, 1938-1948

(Qonsinmption, gross revenues and value added)

ItemItem >
~~1938 >p
1939 19 0 194i1 - 19 2 194 3 '19)4'T4 1-9119 6~~

CONSUMPTION
(million KWH)
Bogota, Barranquilla
and Medellin 175.00 206.00 215e20 229.80 235.80 253.90 291.40 330.20 386.20 430.60 452*90
Major municipalities
(other than above) 62.95 73.06 80.34 64.00 65.90 88.60 91.60 100.40 94.80 107.40 149.50
Subtotal 1/ 237-95 279.06 295,54 293,80 301.70 342.50 383.00 430.60 481.00 538.00 602.40
Small municipalities 75.97 89.09 94.35 93,80 96.32 109.35 122.28 137.47 153.56 171.76 192.32
Grand total 313.92 368.1-5 389.89 387.60 398.02 451.85 505.28 568.07 634.56 709.76 794.72
GROSS REVENUES
Rate per KWH (Pesos) .031 .030 v029 .037 .037 .037 .034 .034 .034 o034 O36
Gross revenuies of
electric power plants 9a73 11.04 11.31 14.34 14.73 16-72 17.18 1931 21.58 24.13 2861
(rillion pesos)

VALUE ADDED
(million pesos)
Value added 2/ 7.78 8.83 9.05 11.47 11.78 13,38 13.74 15.45 17.26 19.30 22.89
Value added Y 3.70 4.00 3.92 4.24 h.64 o5J2 6,24 7.28 8.56 9.51 10.57
Total value added by
public utilities 1li48 12,83 12.97 15.71 16.42 18.50 19.98 22.73 25082 28.81 33.46

1/ 75.8% of total consumption.

of gross revenues of electric power plantso
X80%
2 80% of other public utilities revenue.
 Table A-22: PUBLIC UTILITIES: SERVICES RENDERED AND GROSS REVENUES, 1937 - 1948

(Revenue in million pesos)

_ _Tlepho _ Telegrams Cables Radiograms __ Total Value

Year Number Number Number Number gross added
(Inthousands)-Revenue (In millions) Revenue (In millions) Revenue (In mill-ions) Revenue rvenues 1/

1937 33.99 1.96 3.90 1.40 0.20 0.50 0.20 0.40 -4.26 3.41
1938 39.20 2.13 4.30 1.50 0,20 0.60 0.30 0.40 3.70
1939 41.20 2.40 4.40 1.50 0.20 0.60 0.40 0.50 5-00 4.00
1940 42.20 2.40 4.20 1.40 0.20 0.60 0.40 0.50 4.90 3.92
1941 44.98 2.70 4.20 1.40 0.20 0.7n 0.50 0.50 520 4.24
1942 47.20 2.90 4.50 1.50 0.10 0.80 0.60 o.60 5.80 4.64
1943 47.00 3.10 5.20 1.80 0.20 0.80 0.70 0.70 6.40 5.12
1944 49.70 4.00 5.60 1.90 0.20 1.00 1.00 0.90 7.8i0 6.24
1945 53.60 4.10 6.4o 2.30 0.30 1.30 1,50 1.40 9.10 7.28
1946 55.00 5.00 6.80 2,60 0.40 1.70 1.60 1.40 10L70 8.56
1947 58.03 5.55 7.24 2.78 0.43 1.95 2.02 1.61 11.89 9.51
1948 61,22 6.16 7.71 2.97 0.47 2.23 2.55 1,85 13.21 10.57

2/ Assumed to be 80% of gross revenues.

Source: Anuario General de Estadistica.

 Table A-Lo: INCOME, PROFITS ANJD VALUE ADDED OF BAIIKS AIW INSURAJTCR COMPANIES, 1939-1949
(In million pesos)

Item 1939 1940 1941 1942 1943 1944 194' 1946 1947 1948 1949

Banks

Total income 16.4 L62 1 7.2 L 9. .22 24.0 33.2 L%1 42

Gross profits 10.1 9.8 10.0 10.2 9.8 10.0 9.7 13.3 15.1 1 .5 18.
Wages and salaries
(including special
income) 4.3 4.4 4.9 5.3 5.8 8.2 11.3 13,3 16.3 16.8 18.7
Other 2.0 2.1 2.3 2.6 3.7 5.0 3.0 6.6 13.7 9.1 10.2

Insurance companies

Grosz profits 2.1 21 2.1 2.1 2.1, 2.2 3I.0 2- 5. 2

Total 11

Total income 2;2 22.,' 2.6 24.8 26.4 27.8 4 58 46.7 !L2. 9 64.8
Gross profits 13.8 13.4 13.7 14.0 13.4 12,0 14.1 18.7 21.0 22.9 25.2
Wages and salaries 5.9 6.o 6.7 7.3 7.9 9.8 16.4 18.7 22.7 23.3 25.6
Other 2.7 2.9 3.2 3.6 5.1 6.o 4.4 9.3 19.3 12.7 14.0

Value added J j2 19.4. 20.4 2Q,3 g;L 2. 21.8 QJ 37.4. 4.Z 46.2 Z,8

Methodologr: Data from Banking Superintendent and from Banco F.e la Republica indicate that profits of Banco de
la Republica are 14.4% of total profits all banks. Also data for 1945 indicate that wages and salaries of
Banco de la Republica are about 14% of wages for all banks. This ratio is applied to known figures of profits,
wages, and other expenditures of Banco de la Republica to provide all data on banks, Similar method was used
to obtain total income of banks, insurance companies and stock e2xchange, on basis of known figure of profits
in 1944/47.

)J Totals incluae stock exchange which is not shown.

?I Total of gross profits and wages and salaries of banks, insurance companies and stock exchange.
 able A24: CAPITAL FORMATION: VALUE OF IMPORTS OF CONSRUJCTION MATERIALS, 1940-1947

(In thousand pesos)

Material _-a
1 _ 1

Cement 495 100 36 49 1,152 1,376 3,090 5,776

Bricks 300 424 291 348 230 598 893 1,490
Stone and rubber tile 3 13 4 - - - 7 9
Glass tile 30 55 26 26 57 117 147 151
Buildings in copper or
bronze 37 60 31 - - - 22 172
Sand and gravel 86 4 3 3 13 14 22 67
Marble 21 7 13 15 3 12 32 122
Wooden buildings 48 - - - 13 - - 167
Hydraulic lime 85 106 - 4 1 3 8 58
Wood 420 141 42 17 78 173 499 545
Bathroom fixtures 739 893 372 1,430 1,087 2,127 1,830 2,323
Asbestos tile 55 27 20 - 46 54 22 37
Cement and asphalt blocks,
plywood for ceilings 1 3 1 - - 46 31 130
Pitch roofing 4 2 1 1 4 4 4 4
Cement "ISorel" - 1 - 1 1 1 11 20
Glass 372 530 411 719 622 1,241 743 2,418
White cement 71 129 96 418 47 321 179 616
Waterproof cardboard for
floors and ceilings 142 181 81 75 226 331 601 589
Steel mesh for construction 91 86 29 15 48 83 211 370
Materials of zinc, lead
and antimony 103 368 43 6 1 90 514 3
Wooden doors and windows 19 4 14 1 1 6 29 84
Iron fixtures 3 - - 1 - 9 2 19

Total 123 1514 3.129 3630 6.606 8,897 15.107

Source: Anuario de Comercio Exterior.

 Table A-25: CAPITAL FORMATION: VALUE oF IMPORTS OF AGRICUJLTURAL EQUIPMENT, 194o-1947

(In thousand pesos)

Equiipment Ya

Tractors 1,271 1,318 338 511 1,518 2,170 2,513 4,702

Accessories 217 135 85 - 92 1,180 999 1,905
Total 1,488 1,453 423 511 1,610 6,607

Plows 158 158 53 99 163 177 167 422

Mechanical pumps 803 660 219 180 536 1,287 2,035 3,658
Insecticides 442 546 313 632 449 960 801 1,000
Unclassified mech. equip. 3 99 3 25 23 22 123 789
Mechanized equipment for
sugar cane 504 799 504 559 130 363 937 2,002
Cultivators 217 135 217 60 92 338 353 541
Woodworking mach, 169 152 169 46 93 413 599 1,155
Grain mills 179 36 179 24 19 27 427 403
Small agricult ural
equipmentJd 63 252 79 170 120 186 725 985
Rastros 49 65 49 24 19 27 427 248
Cutters 45 50 45 63 24 38 87 231
Seeders 17 25 17 16 33 16 16 65
Cane sugar _- - - - 33 26 187
Sugar mills 151 442 151 39 39 199 457 579
Threshing machlines 14 15 14 11 52 56 44 107
Subtotal 24302 4,887 Z3 2,45 3,4C2 7,492 10,736 18.297

Seeds 86 64 119 125 138 244 224 275

Fertilzeizs 432 377 277 210 147 667 585 1,615
Animals 1 290 347 662 263 502 990 725 725
Subtotal 808 788 1,058 8 787 1,901.15.61

Total of above subtotals 5110 575 2 . 3.°57 24,19 393 23 21,70 94

2j Some equipment not included, such as milk pasteurizers.

2/ 50° of im-oorts of cattle considered for reproduction.

Source: Anuario de Comercio Exterior.

 Table A-26: CAPITAL FORMATION: VALUE OF IMPORTS OF TRANSPORT EQUIPmENT, 1940-1947
(In thousand pesos)

Eqluipment - Yar_
1940 1941 1942 1943 1944 1945 1946 1947
Trucks 2,019 2,596 819 819 1,265 2,703 10,742 17,380
Cars 4,058 5,392 738 183 228 325 7,323 14,765
Airplanes 685 - - 160 346 352 3,325 4,380
Accessories for airplanes 480 379 216 532 1,073 1,186 2,739 2,14-3
Batteries 261 336 135 330 367 253 546 1,123
Lifts 119 260 125 199 147 433 702 1,776
Busses 518 197 12 62 92 27 468 1,779
"Autoferrosll 6 949 397 9 - _ 2 2
Bicycles 144 90 17 9 36 62 496 912
Ships - interior navigation 82 199 36 216 205 138 1,481 1,083
Chassis for cexs and busses 1,447 2,306 467 26 1,387 2,413 6,537 9,937
Dredges 741 1,265 214 429 106 333 378 871
Locomotives 24 28 16 - 498 3,336 345 2,475
Rubber tires 2,984 4,165 444 5,704 5,234 3,247 9,835 6,247
Motorcycles 27 23 32 - 8 21 91 160
Diesel motors 1,155 1,547 554 503 1,012 2,696 5,517 7,452
Gasoline motors 173 149 42 120 200 460 861 1,297
Road building equipment 2 26 - - 53 298 317 4689
Trailers 14 6 - _ - 135 650 1,092
Wheels 96 48 - 75 161 114 6o 79
Rails 389 401 6 _ 124 59 979 2,399
Wagons 244 190 23 89 720 792 565 790
Ships (sea) - - 12 - - 87 421
Trailer trucks - - _ 33 - 199 364
Cylinders 155 95 5 17 16 31 160 452
Passenger wagons 17 402 - - _ 16 - 44

Total 15,840 21,049 4,298 9,494 13,311 19,430 54,405 73,665

Source: Anuario de Comercio Exterior.

 Table A-27: CAPITAL FORMATION: VALUE OF IMPORTS OF INDUSTRIAL EQUIPMENT, 1940-19a7
(In million pesos)

Equipment
Eq3lipment ~1940 1941 1942 1943 Yea -1944 194-5- 14627
Petroleum refineries 37 - 1 - 4 3 10 119
Soft drinks manufacturing 90 136 18 31 45 183 776 1,383
Leather and skins mfg. 54 51 27 30 148 332 304 252
Printing presses 469 368 101 169 168 473 914 1,881
Beer manf acturing 215 286 82 16 45 128 563 5,106
Tobacco manufacturing 65 185 85 19 30 116 140 780
Mining and construction 764 953 320 329 1,373 1,419 1,358 1,208
Paper manufacturing 27 22 31 6 37 643 276 395
Manufacturing of food pastes 134 312 45 62 87 436 737 932
Petroleum wells 753 145 226 176 1,064 4,103 5,118 6,962
Textile industry 2,822 3,191 1,761 2,657 1,674 3,870 8,167 16,886
Milk indusLry 12 20 1 3 5 7 22 94
Milk pasteurization 18 31 14 130 6 41 20 175
Mechanical pumps 803 660 219 180 536 1,287 2,035 3,658
Air compressors 112 134 15 41 61 149 598 1,240
Presses 2 4 - - 1 12 19 57
Water purifiers - 128 33 58 32 181 109 193
Tire manufacturing - - - - 359 656 49 42
Metal work 235 183 68 91 264 1,470 1,986 4,443
Rubber manufacturing - - - - - 173 88 475
Cement manufacturing - - - - - - 3,868
Lumber manufacturing 169 152 71 46 93 414 599 1,155
Stone and glass mfg. 668 371 130 199 494 1,509 2,342 965
Pulleys 41 38 9 4 14 105 136 248
Transmission belts 171 199 118 293 213 487 457 843
Lifts and derricks 92 50 28 10 24 196 578 1,534
Capstans 26 90 7 3 14 87 197 368
Cement mixers 44 65 14 15 6 144 337 647
Windmills 2 7 12 25 40 49 9 46
Hydraulic motors 91 3 11 2 - - 5 49
Hydraulic turbines 457 30 134 60 18 167 279 1,982
Electric generators 538 443 351 201 175 646 1,929 4,375
Electric transformers 556 379 220 149 213 474 760 2,309
Electric motors 744 487 177 226 257 676 1,285 2,384

Total 10,211 9,123 4,329 523 7,500 20,636 32,202 67,0Oa

Source: Anuario de Comercio Exterior 40/47.

 Table A-28: VALUF OF STEEL IMPORTS (c.i.f.), 1938-1947

(In thousand pesos)

Product i3B' 1939 9ls0 - 9h2 -

Steel tubes (5 cm. or -) 769 1,176 1,129 1,180 278 500 929 1,655 1,092 (340) 2,073
Steel tubes (5 cm. or f) 669 4,170 2,597 1,859 777 1,538 4,815 6,162 7,135 (260) 10,980
Steel tanks 566 354 30 105 3 101 314 549 842 (330) 1,848
Galvanized wire 429 421 314 417 190 191 447 824 816 (290) 1,057
Wire for nail 499 479 346 257 44 287 306 160 165 (170) 760
Barbed wire 750 1,603 1,168 996 59 500 565 594 2,358 (260) 4,311
Nails 140 130 129 155 70 122 328 592 361 (440) 1,403
Steel buildings 455 618 1,144 267 56 35 37 223 858 (710) 2,976
Pig iron 23 O7 16 32 - 18 160 272 71 (80) 281
Galvanized sheets (roofs) 1,700 2,108 1,358 63 199 513 433 520 817 (260) 1,567
Steel sheets - 1/16 to
1/4th inch 359 473 359 129 47 240 305 748 1,299 (190) 788
Steel ingots, sharpes 1,232 964 887 1,157 165 1,049 1,162 2,705 709 (170) 2,789
Steel bars 706 1,243 1,398 2,000 333 1,058 3,727 2,780 5,107 (170) 8,208
Tin plate 1,068 907 792 185 931 27 6 62 (250) 1,313
Steel implements 568 391 422 581 269 349 203 810 1,644 (248) 1,791
Bridges 444 142 248 123 - 6 76 101 161 (280) 266
Rails 164 159 389 401 6 - 124 59 979 (130) 2,399

Total 9,473 5_46 12,841 11,086 2 76838 13,958 18760 2476 4,810

I Unft prices per ton iesWThE s os.

Source: Anuario de Comercio Exterior.
Table A-23: CAPITA.L FORMATION: NATIONAL PRODUCTION OF CAPITAL AND
DURABLE GOODS ACCORDIING TO 1944-1945 CENSUS

(In million pesos)

Product Cost of production

Transportation materials

Tires i.6
Other 1.6

Total 3i2

Construction meterials

Cement 8.5
Bricks, adobe, asbestos
products and other 12.8

Total 21.3

Agricultural equipment 1.1

Industrial equipment iL

Grand total 27.9

 Table A-30: GROSS CAPITAL FOREATION AND COST OF PUBLIC WORKS AND BUILDINGS, 1939-1947
(In million pesos)

Item year__ _ _ _ _ _ _ _ _

Item p39
1940 1941 1942- 1903 1944 1945 1946 197
A. Material and equipment-imports 49.8 47.1 50.1 16.3 28.3 42.6 74.8 132.2 222.2
B. Payments to trade and transport
for same 25.0 23.6 25.1 8.2 14.2 21.3 37.4 66.1 111.1
U. Material and equipment - local
production 16.4 15.2 20.1 19.4 22.6 27.9 39.2 50.2 67.5
D. Payments to trade and transport
for same 4.1 4.6 5.0 4.9 5.7 7.0 9.6 12.6 16.9
E. Total delivered cost, material
and equipment 95,3 93.5 100.3 48.8 70.8 98.8 161.2 261.1 417.7
F. (Of which material 37.3 36.8 36.7 23.1 35.2 47.9 68.7 90.4 142.7
G. (Of which equipment 53.0 56.7 63.6 25.7 35.6 50.9 92.5 170.7 275.0
H. Installation costs - equipment 5.8 5.7 6.4 2.6 3.6 5.1 9.3 17.1 27.5
I, Installation costs - material 42,0 54.8 60.2 93.9 72.3 66.8 110.5 153.8 139.5
J. Cost of public works and
buildings (79.3) (91.6) (91.9) (117.0) (107.5) (114.7) (179.2) (244.2) (282.2)
fC Land added 2.5 3.1 2.7 3.0 3.5 4.9 5.3 6.4 7.0
L. Maintenance 7.7 7.6 7.9 8.4 9.6 11.3 14.4 16.6 20.3
M. Total Gross Capital Formation 153.3 164.7 177.5 156.7 159.8 186.9 300.7 455.0 612.0

B is 50% of A H is 10% of G
J is 25% of C J is equal to F plus I
F includes all materials used in Public Works, M is equal to: B plus H plus I plus K plus L,
buildings, dwellings. of G plus H plu.s J plus K plus L.
F plus G equals E
 Table A-31: NATIONAIL INCOME: VALUE OF BUILDING CONSTRUCTION, 1939-1947

(In million pesos)

Dwellings, rural 16.9 15.1 17.4 18.9 17.8 22.3 39.8 54.1 56.7

Dwellings, urban 19.1 17.5 19.6 20.9 20.2 24.6 44.9 58.8 66.3

Commercial buildings 2.8 2.8 4.6 6.1 2.4 4.7 13.1 16.4 17.2

Factories 1.1 .6 1.1 1.2 1.6 2.0 4.4 8.6 7.5

Government offices 10.1 10.6 8.7 7e9 10.4 11.0 16.0 18.2 22.3

(Non-.welline buildings ]:I) (14,0) (14.0) '14.4) (15.2) (14.4) (17.7) (33.5) (43.2) (47.0)

Total 50,0 46.6 51.4 .r5.0 52.4 64.6 118.2 156.1 170.0

;L/ Total of last three items.

 Table A-72: GROSS CAPITAL FORMATION: VALUrE OF GOVERNMENT INVESTMENT, 1939-1947
(Equipment, material, construction, and maintenance)
(In million pesos)
Ite ear
1932
24 14 1942 1943 1944 1945 1946 14
GROSS INVESTMENT
Nation - Roads 10.9 13.4 11.2 11.8 13.1 18.2 21.9 30.9 38.3
Ports 1.8 .7 .8 1.6 .6 .7 2.1 3.2 5.0
Buildings 6.9 7.0 5.1 3.2 3.3 3.8 6.5 8.1 9.0
H.E. plants .0 .1 .0 .4 .1 .0 1.4 .0 7.0
Agriculture 5.1 16.9 21.6 30.7 24.7 10.9 5.8 12.1 8.1
Municipal improvements 2.6 .9 1.1 3.8 1.3 1.7 6.7 22.3 18.0
Railroads 6.5 8.4 4.6 5.8 7.3 8.6 14.0 15.1 22.3
Departments - Roads 7.1 7.1 7.7 6.o 5.4 8.4 7.1 8.4 9.3
Buildings 2.3 2.5 2.2 2,7 4.2 4.8 6.3 7.4 8.3
Agriculture .8 .9 1.2 1.2 1.2 2.4 2.4 2.4 3.2
Municipal wks. - - .2 .4 .1 .8 .6 1.2 1.4
Railroads j 1.6 2.1 1.2 1.5 1.8 2.2 3.5 3.8 5.6
Municipalities (Public works) 5.2 6.5 8.1 11.8 15.4 14,2 19.4 15.9 29.5
Total 50,8 6 65.0 81.0 7 76.7
8,5 29.7 130.8 165.0

INVEST1e= IN BUILDINGS
Nation 6.9 7.0 5.1 3.2 3.3 3.8 6.5 8.1 9.0
Departments 2,3 2.5 2.2 2.7 4.2 4.8 6.3 7.4 8.3
Municipalities .9 1.1 1.4 2.0 2.9 2.4 3.2 2.7 5.0
Total 20.1 l W.6 8.7 _ 210.4 22,.0 11 28.2 2.

IIWST1MENT IN MAITENANCE
Nation - Roads 4.4 3.8 4.0 4.1 4.2 5.5 8,0 9.1 10.7
Railroads 4.3 4.2 4.2 4.5 6.2 7,0 9.1 11.3 13.8
Departments - Roads 1.6 1.7 1.5 1.4 1.1 1.3 1.3 1.2 2.5
Railroads 1.1 1.1 1.1 1.1 1.5 1.8 2.3 2.8 3.5
Total 11.4 X 1 0.8 1 ll1 13.0 15 20. 24.4 _

INVESMEINT IN PUBLIC VTORKS 29.3 451 455 62.0 55.1 50.1 61.0 88.2 112.2

Ij Assumed to be one-fourth of investment by nation.

 Table A-33: NATIONAL GOVERNIMENT IiEESTNENTS, 1939-1947

(In million pesos)

Item Year
___________
___________ ___________ _ c)40 i24L .1942 .1943 194 19i4 1946 1947
Roads
Construction 6.59 9.66 7.18 7.74 8,89 11.80 11.44 19.66 22.93
Maintenance 4.35 3.73 4.03 4.10 4.19 5.50 7.98 9.07 10.66
Paving - - - - .86 2.27 1.77 3.59
Bridges - - - - .08 .17 .43 1.13
Total 10.94 13.39 11.20 11.84 13.08 18.23 21.86 30.93 38.31

Railroads
Construction, equipment, machinery,
repair of machinery and contracts 2.21 4.21 .36 1.27 1.12 1.61 4.90 3.81 8.52
Maintenance and equipment 4.30 4.20 4.20 4.50 6.20 7.00 9.10 11.30 13.80
Total 6._5 8.41 4.60 5,80 7.30 8.60 14.00 15.10 22.30

Ports and rivers

Seaports - - 1.29 2.94
Riverports - - - .27 1.18 .57 .66
Dredging and canalization 1.84 .70 .78 1.61 .60 .43 .90 1.37 1.37
Total 1,84 , .78 1.61 .60 zo 2.08 3.24 4.97

Buildings 6.89 6.98 5.10 3.22 3.35 3.77 5.69 8.12 16.02

Agriculture 5.12 16.86 21.59 30.67 24.73 10.95 5.73 12.12 8.15

Note: Some totals do not add up due to rounding of figures.

 Table A-34: CAPITAL FORMATION: INVESTMENTS BY DEPARTMENTS, 1939-40 - 1947-48

(In pesos)

Department Year 1946-1947 1947-1948

DePartment 1939-1940 1940-1941 1941-1942 1942-1943 1943-1944 1944-1945 1945-1946

Highway
Construction 5,415,150 5,878,004 4,444,999 3,885,449 6,742,738 5,360,248 6,760,708 6,763,642 4,976,117
Conservation 1,682,782 1,508,888 1,358,193 1,123,535 1,310,490 1,296,626 1,237,767 2,518,145 2,112,760
Paving -- 354,611 -- -- 84,288 -- 2,500 -- --
Bridges -- -- 236,930 355,617 257,712 467,577 390,731 341,508 430,838

Total 7.097.932 7.741,503 6,040,022 5.364.601 8,395.228 7,124.451 8.391.706 9,349.534 7,519.715

Building 2,495,659 2,203,351 2,698,143 4,160,844 4,805,889 6,261,199 7,418,762 8,251,255 5,361,318

Agriculture 865,992 1,175,360 1,230,631 1,181,615 2,442,078 2,393,958 2,394,932 3,222,483 3,835,172

Municipal
Development 239 242,543 374,946 94,674 829,887 629,321 1,176,351 1,373,666 1,392,572

Grand total 10,459,822 11.362,757 100343.7 10.801,734 16.473.082 16,408,929 19.381.751 22.196.938 18,108.777
 Table A-35: NATIONAL ACCOUNTS: TOTAL VALTlE OF CONSTRIJCIION, 1939-1947

(In million pesos)

Item [319091. 192 Year

9 147
- 1
19-39-~~~~~~ -19r40-
Public Works 29.3 h5.1 45.5 62.0 55.1 50.1 61.0 88.2 112.2

Buildings 5000 46.5 51.4 55.0 52.X 64.6 118.2 156.0 170.0

Total 79.3 91.6 96.9 117.0 107.5 114.7 179.2 244.2 282.2

Labor costs 42.0 54.8 60.2 93.9 72.3 66.8 110.5 153.8 139.5

Delivered cost of material

and equipment 37.3 36.8 36.7 23.1 35.2 47.9 68.7 90.14 1X2.7

Delivered cost of material

for buildings (23.4) (23.2) (25.7) (27.5) (26.2) (32.3) (59.1) (780.) (86.3)

Total cost delivered of all

material and equipment 95.3 93.5 100.3 48.8 70.8 98.2 161.2 261.1 417.7

Total cost, delivered of

all equipment j 71.9 703 74.4 21.3 44.6 66.5 102.1 183.1 331.4

1J Government expenditures at the exclusion of maintenance aid buildings.

i/ Also total of labor costs and delivered cost of material and equaipment.

i/ Total cost delivered of all materiai and equipment minus delivered cost of material for buildings,
 Table A-36: DEPRECIATI0N, 1938-1948

(In million -oesos)

Item 1938 1939 199 4 1945 19 197 194

Urban dwellings 7.1 8.0 7.5 8.2 8.7 8.4 10.4 19.0 24.8 24.0 31.3

Rural dwellings 9.2 10.0 9.4 10.3 11.2 10.6 13.2 23.6 31.5 30.2 38,1

Urban non-dwelling
construction
(private and public) 2.6 2.9 2.7 3.1 3.1 3.1 3.7 7.0 9.1 8.6 11.6

Cars, trucks, buses

and airplanes 4,8 8,1 5.0 1.3 12.3 3.6 -1.5 7.8 4.2 18.5 25.6

Manufacturing industries 3.3 3.9 4.2 5.0 5.2 5.8 7.3 18.8 27.9 32.0 38.9

Railwa,ys 1.7 1.7 1.7 2.7 3.6 2.6 2.2 3.0 3.2 3.5 3.5

Subtotal 28.7 34.6 30.5 30.6 44.1 34.1 35.3 79.2 100.7 116.8 149.0

Other il 2.9 3.5 3.1 3.1 4.4 3.4 3.5 7.9 10.1 11.7 14.9

Grand total 31.6 38.1 33.6 33.7 48.5 37.5 38.8 87.1 110.8 128.5 163.9

jj Agricultural equipment, etc., assumed at 10% of subtotal.

 Table A-37: BALAINCE OF GOVERNI, T ACCOUNITS (NATIONAL, DEPARTMENTAL, AND MUNICIPAL)
FOR THE PIJRPOSE OF NATIONAL AGGREGATES COMPUTATION, 1939-1947
(In million pesos)

Item Item 1939 1940 1941 1942 ~~~~~~~~~~~~Year

1943 1944 1945 1946 1947

RECEIPTS

Direct taxes 21.6 24.3 24.7 33.2 49.1 55.3 67.1 87.6 130.1
Indirect taxes and
excise taxes 144.7 129.5 136.2 131.9 144.2 171.5 219.4 256.7 315.5
Receipts from sales
and rents of goods 11.2 9.6 22.0 10.9 27.6 33.1 36.5 38.6 52.6
Government deficit - 3.3 43.3 10.4 58.6 59.1 39.1 18.7 49.0 54,0

Total 174.2 206,7 193.3 234.6 280e0 299.0 341.7 431.4 552.2

EXPENDITURES

Expenditures on goods
and services 97.0 102.1 88.1 113.6 139.9 162.4 154.3 212.2 269.4
Expenses incurred in
selling goods and services 7.0 9.2 15.7 8.2 23.2 25.0 38.4 36.9 61.8
Investments 50.8 66.5 65.0 81.0 78.5 76.7 97.7 130.8 165.0
Transfers (A) to country 14.6 21.7 18.4 23.9 28.8 26.2 38.5 39.0 42.0
(B) abroad 4.8 7.2 6.1 7.9 9.6 8.7 12.8 13.0 14.0

Total 174.2 206.7 193e3 234.6 280.0 299.0 341.7 431.9 552.2
 Table A-38: ESTIMATE OF ACTUAL TOTAL GOVERNMENT EXPENDITURES, 1939-1948
(In million pesos)

Account
Account l~939 I97
TO 1
19=e Year19697
1942 1943-- _1944~ 1945 1946 1947 1p;T

NATION

Total 103.8 131.7 112,3 150.8 180L4 178$5 199.2 281.9 363,9 414.6

Minus "Aportes",
"AuxiliosT tt, "Partici-
pariories" to Depart-
ments, 1ntendencias
and Coraisarias ) 6.3 3.7 5.5 8.0 7.6 809
) 5.0 Y 5.0 J 5,o
Municipalities ) 3.9 2.0 7.9 10.2 20,0 21.8

Actul.a expenditures 98.8 126.7 107.3 140.6 174.7 165.1 181,0 254.3 333.2 o
DEPARTMENTS

Total 52,0 5609 57.7 60o0 65,8 81.8 10106 11102 136.2 145.9
Minus all types of par-
ticipations to munici-
palities 6.6 6.8 6.6 6,6 6.9 8.5 10.3 110 15.2 *

Actual expenditures 45.4 50.1 51.1 53.4 58.9 73.3 91.3 100.2 121.0 00#
MUNICIPALITIES

Actual expenditures 30.0 29.9 34.9 40o6 46,4 60.6 69.4 7704 98,0 130.2
TOTLL ACTUAL EXPENDI-
TURES 174.2 206.7 193.3 234.6 280.0 299.0 341.7 431.9 552.2 ...

Source: Anuario General de Estadistica, and Estadistica Fiscal y Administrative, 1939-1947,

 Table A-39: GOVERNMET SALES OF GOODS AND SERVICES, 1939-1947
(In million pesos)

Item 19 9 -_ _ __ _ __ _ __ _ __ _ _

NATION

Expenditures (national services) 6.0 8.2 6.7 7.2 7.5 9.1 17.2 18.8 29,0
Reveniies (properties and services) 9.8 8.4 9.6 9.3 10.3 11.0 14.2 15.8 21.4
Balance /3.8 f .2 f.2.9 f2.11 2.8 /1.6 -3.0 -3.0 -7.6

DEPARTM1TS

Expenditures 1.0 1.0 .9 1.0 1.2 1.4 1.8 2.2 3.3

RevFenues 1.4 1,2 1.3 1.6 1.9 2.0 3.4 3.1 6.7
Balance fe4 /.2 f.4 /.6 f.7 f.6 f1.6 f.9 /3.L

MUNICIPALITIES

ExpendituLres . . .. 8.1 ... 14,5 14.2 19*4 15.9 2905

Revenues ... ... 11,1 ... 15.4 20.1 18.9 19.7 24.c
Balance *.. *3-0 ...
.5,9 f 9 ~3 -8 _5
TOTAL

Expenditures 7,0 9.2 15.7 8.2 23.2 25.0 38.4 36.9 61.8
Revenues 11.2 9.6 22.0 10.9 27.6 33.1 36.5 38.e6 52.6
Balance /4.2 / .4 /6.3 f2.7 /4.4 /8.1 -1.9 /1.7 -9.2

Source: Anuario General de Estadistica, and Estadistica Fiscal y Administrativa, 1939-1947.

 Table A-40: T,HTv 1939-1948
TAXES AND TRANSFERS BY GOVERtF
(In million pesos)

Item ~~~~~~~~~~~~Year
1939 1940 1941 1942 1943 1944 1945 1946 1947 1948

Direct taxes
National 21.6 24.3 24.7 33.2 4g9.1 55.3 67,1 87.6 130.1 125.0

Excise taxeq
National 2 58.6 43.4 48.o 42.6 43.4 51-8 7509 93.9 123.5 98a6
Departanental, 52.3 52.1 54.4 56.3 67.3 78.1 47.5 104.2 112.0 120.8
Municipal 33.8 34.0 33.8 33.0 33.5 41.6 46.0 58.6 80.0 110.0

Total 144.7 129.5 136,2 231.9 144.2 171.5 219.4 256.7 315.5 329.4

Total transfers W 19.4 28.9 24.5 31.8 38.4 34.9 51.3 52.0 56.o
0o

Transfers to country 14.6 21f7 18.4 23,9 28.8 26.2 38.5 39e0 42*0

#/ Anuario General de Estadistica for 1942, p. 425 (for 1938-1941), for 19463 p. 773 (for 1942-1946), and budget
returns for other yearso

/ All departmentn1 taxes except extraordinary, Sources as in Y. For 1947-1948, data from Finance Ministryo

2/ All municipal taxes except extraordinary. Sources: for 1939-1940-1941-1946, Anuario General de Estadistica; for
1943-1944, Estadistica Fiscal; for 1948, Ministry of Finance; for other years, Estimates by Lission.

g/ Anuario General de Estadistica, Estadistica Fiscel y Administrativap Bulletins of the Banco de la Republica,
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX B

NUTRITION

by

Jacques Torfs

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 C ON T E N T S

Page
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 1

Statistical Analysis of Food Production and Availability of

Food to the Consumer . . . . . . . . . . . . . . . 1

Study of Waste and Losses between the Production and Consump-

tion of Food . . . . . . . . . . . . 2

Losses between Grower and Market . . . . . . . . 2

Eggs and milk .... . . . . . . . . . . . . . . . . 2
Bananas, platano, yucca, arracacha, na.Ae . . . . . . . 2
Panela miel . . . . . . .. . 2
Fruits and green vegetables . . . . 7 22
Fish . . . . 2
Meats . . . . e 2
Corn .... . . . . . . . . . ... . . . . . . . . 2
Other commodities 3
Losses between Market and Consumer .. . 3
Study of the Chemical Composition of Colombian Foodstuffs . . . 3

Study of the Colombian Consumer and Requirements of the Popu-

lation . . . . . . . . . . . . . . . . . . . . . . . 5

Per Capita Food Input and Requirements . . . . . . . . . . . . 66

Chemical Contents of Diets . . . . . . . . . . . . . . . . . . . 6

Major Constituents of the Diet . . . . . . . . . . . . . . . . 7

T A B LE S

B-1 Food consumption in Colombia, 1946

B-2 Availabilities of foodstuffs after losses and vastes, 1946
B-3 Nutritive value of 100 grams of selected Colombian foods,
edible portion
B-4 Percentage distribution of the total population of Colombia
by age and sex groups, 1946
B-5 Level of nutrition compared with requirements, 1946
B-6 Analysis of workers' diets in four important cities and
Colombia, 1946
 Introduction

That dietary deficiencies exist in Colombia wculd not be denied

even by the most superficial observers. Workmen and farmers are
handicapped by lack of energy and vitality, poor vision, skin ailments,
slow reflexes, and general susceptibility to infections and diseases
in which malnutrition is the underlying cause. Unfortunately, little
iF known about the precise nature of the deficiencies and, therefore,
of what can be done to correct them.

The National Institute of Nutrition is in charge of research and

coordination of activities connected with food standards, propaganda
and education of the masses. It is a small organization, with small
resources,and is primarily concerned with the clinical aspects of
malnutrition. Thus far, it has made important contributions only in
the field of goiter. The Institute has little information on the
actual composition of Colombian diets and foodstuffs, and no data on
the nutritional balance sheet of the nation. It has, however, reached
some preliminary conclusions as to the nature of major dietary defi-
ciencies, which unfortunately are based on a small number of samples
and therefore cannot serve as a foundation for a concrete nutritional
program.

A few Colombian scientlsts have also given some thought to the

problem; their contribution has been small, however, since they not
only lacked the necessary statistical information to reach clear-cut
conclusions but also encountered little public interest in their
endeavors. These circumstances prompted the Mission to attempt an
independent study of the status of nutrition in Colombia, and our
research wes so oriented as to serve as a basis for economic and agri-
cultural planning. Fundamentally, we endeavored to formulate a nutri-
tional balance sheet, and to check it against regional studies based
on substantial samples. In this work we have benefitted from the col-
laboration of exoerts of the Colombian Nutrition Institute. It is
recognized at the outset that much of the data on which our analysis
is based needs careful reexamination and that, thererore, our conclu-
sions are at best tentative.

A description of the major steps in the study of the Colombian

diet and an evaluation of the data used are given in the following
pages.

Statistical Analvsis of Food Production and Availability of Food to

the Consumer

Data on pr-oduction volumes were provided by the study of

national income statistics. Food available to the consumer was ob-
tained by deducting exDorts and adding imports. Data for foods of a
low cost per unit of volume (corn, yucca, name, platano) are likely
to require major revision. The national consumption of food thus
obtained is set forth in Table B-1.
 -2-

Study of W,!aste and Losses between the Production

and Consumption of Food

Table B-2 describes as a percentage of the volumes of foodstuffs

initially available the amount remaining after losses and wastes incurred
between (1) the grower and the market place; (2) the market place and
the consumer; and (3) the arower and the consumer, Distinction is
made between these three categories because both the food balance
sheet of the nation and the diets based on consumer purchases will be
analyzed. Losses under (2) are a complex of losses through both han-
dling and storage and actual orenaration and cooking. Since national
income statistics describe only that part of the oroduction actually
available for consumption, losses and wastes on the farm are not
taken into consideration.

Losses between Grower and Market

Many of the ratios in Table B-2 have been suggested by studies

made in other South American countries. However, further modifications
were introduced because of some characteristics peculiar to the
Colombian market.

Eggs and milk. Losses are estimated at 10 percent. While great

care is taken in the oreservation of these commodities, they are apt,
respectively, to break or to be spoiled by the heat.

Bananas, platano. yucca, arracacha, name. Losses also estimated

at 10 percent. Few precauticns are used in handling these goods be-
cause of their very low unit value.

Panela miel. The estimated loss of 10 oercent indicated exoresses

a diversion to industrial uses (not ultimately related to nutrition).

Fruits and green vegetables. Losses are estimated at 20 percent.

These commodities are likely to snoil rapidly in tropical countries,
especially when not harvested in time or when exposed to all kinds of
weather before or during transportation to the market.

Fish. Lack of refrigeration and small market outlets affect the

handling of fish as wel'L as meat. Losses of fish are estimated at
26 percent.

meats. These commodities are orocessed by the slaughterhouses

between the oroducer and the market. The percentage of losses between
cattle on-the-hoof and meat for sale is 40 nercent and was indicated
by studies of the Ministry of Agriculture.

Corn. Lossep were estimated at 50 nercent on admittedly limited

information: (1) Production statistics seem overstated, for reasons
explained in the discussion of the national income. (2) Y'TTile corn
is not extensively used as animal feed, some of it is diverted to
hogs and chickens. (3) Industries absorb some corn for non-food uses,
and (4) some corn is shucked before reaching the market. The volume
of nroduction of unshucked corn has thus to be reduced to describe
availabilities, shucked or unshucked, at the mtarket level.

Other commodities. Losses for all other commodities were

tentatively estimated at 5%. This ratio represents in most cases
provision for seeds. In other cases it applies to comrnodities which
are very perishable (such as butter) but which are usually produced
by the wealthier, and more educated, farmers who take reasonable care
of them.

Losses between 1Iarket and Consumer

We have distinguished two different types of losses.

(a) Losses in handling and storage between the market or retail

shop and the kitchen. We have assumed that losses would be smiall --
5 percent -- on most goods which do not require a great amount of
refrigeration; that they would be slightly larger than 10 percent on
goods with a low unit value, such as yucca, platano and bananas, or
those which require refrigeration, such as meats and milk. Finally,
losses for perishables, such as fruits and vegetebles, were estimated
at 20 percent.

(b) Losses through preparation. The highest ratio of loss was

estimated for such vegetables or fruits which have a hard core and a
thick skin. The ratio was reduced for foodstuffs with thinner shells
and is smallest for goods available at the market in edible form. Tn
all cases, however, allowance was made for inedible leftovers.

Study of the Chemical Composition of Colombian Foodstuffs

The conversion of the foodstuffs balance sheet into chemical

equivalents cannot be made on the basis of the yardsticks used in the
United States. The nutritive velue of foods is apt to vary consider-
ably from one part of the world to another. B,ven in the same region
of the same country, the chemical comDosition of leaves, berries,
stalks and fruits grown from identical seeds olanted in different
soils will vary. Additional changes in climate, in exposure to the
sun, and in rainfall will, of course, intensify these changes. Also
there are thousands of varieties of seeds for each of the orinciDal
cereals, pulses, fruits and vegetables. There are also thousands of
varieties of cattle feeding on nutrients which in turn have different
chemical compositions according to soil and climate.

It is therefore not surprising that the food value of anparently

similar foodstuffs varies widely, and it would be misleading to assume
that data on the average comnositicn of food values in one country can
be utilized in other countries. It should also be kept in mind that
data recorded seientifically for one country, such as the United States,
is no more than average data based on a selection of goods deer.ied to
be most representative of the esential diet in one ccrmunity. ALI this
inricaetes that, idetally, an imnortant prerequmsite to the studv of nu-
triticn in Colcmhia shiould be a thorough study of the average composi-
tion of Colcmbian foodstuffs. Even this could be mislesding as
Colombia may be the one country in the world vwhere differences in
climate, scils and precipitation may be v7idest. Perhaps only region1l
or local studies aill be needed before a fully satisfactory picture
can be obt8ined.

However, it. has not been possible to enter into such refinements
in the computation of the average Colcmbiarn diet.s, The Colombian Nutri-
tion Institute has made some specific studies of the nutritional value
of some Colombian foodstuffs. There these studies were Fade with a
sufficiert number of samples, we have adopted the Coloermbian standards
instead of the standards provided by U.S. tables,. Also, Colombian
nutritionists have been able tc determine that certain of their food-
stuffs are more similar in nature to Chilean, Argentinean, or Brazilian
riroqucts than tc Uni.ted States products. bhen this occurred and rhen
the chemical study of such foodstuffs had been undertak.en by other Letin
American countries, the standards reported fcr these South American
foods were adopted. When rio data at al2 except U.S. data were available,
it has been assumed that they could be used, provided that the similar-
ity of foodstuffs was sufficiently well established. Finally, when no
comparison could be made, the food values assigned to each and every
fcodstuff could only be determined by averaging data on food composition
for similar groups of products. The chemical composition of 100 grams
^f selocted Colomnian foods shcwr in Table B-3 was established on these
bases bv exoerts of the Nutrition Institute in collaboration with mem-
bers of the TEED Irission. 2

Some spectacular differences in food values between the United

S'tates and Colombia are illustrated belovj:

Per 10D Greas Ediblle Portion

C alories Calcium (willigrams)

U.S. Colorbiba U1.S. Colombia

Feef 201Pf 156 11 10

Corn 365 338 18 14
Dry Kidney Eeans 350 264 348
C2

'Equivalent to thin, utili ty grade "C".

In the elaboration of Table 5-1, it wes decided to subEtitute the

values given in the U.S. for wheat for those orovided by the Institute,
wlhichi gave only an analysis of urniilled rholewheat. Nqo mention is made
of Carotene, or Vitamin A, valuos, since data provided by the Institute
seem unsatisfactory and U.S. standards do not seern to apply.
 - 5 -

Study of the Colombian Consumer and

RequireMents of the Population

The description of per capita food availabilities has little

meaning if not matched against per cacita food requirements and these,
in turn, vary frcm nation to nation. Food requirements depend ucon a
great number of physiological variables such as age, weight, height,
sex and other circumstances, such as hFbitat, activitities, etc. The
per capita food requirements of a nation are an average rf -enlui.rements
of groups of individuals of various ages, sexes, activities, etc. They
may, therefore, differ widely from one nation to another. Even if the
age structure is exactly similar for the nopulation of two countries,
food requirements will vary according to average weights. If the
counitry is young and grcwing fast, its per capita food requirements
will be lower than those of another country where -population is stable
or on the decline, even if all other conditions are similar. Having
estimated the distribution of Colombian pooulation by age and sex
groups, as, shown in Table B-4, vwe have adonted the method recomnended
by the FAOi in order to compute average calorie requirements. In so
doing, it was necessary to compute the average temperature (weighted by
population distribution by climlate zones) which was found to be 220
Centigrade, and the average weight and height of the adult male of 25
years, estimated at 58 kilograms. It WaS also assumed that the average
Colombian i.s riot more active than the average European or North Ameri-
can.

The method applied by the FAC for calories wes extended to require-
ments in other esFential materials. U.,. standards 2 ! were anplied and
modified according to age, sex and activity. On these bases Table -54/
was devised, which sumnmarizes the theoretical ner capita food reouire-
ments for Colombia in the year 1946. We want to state here explicitlv
that the major merit of this approach is that it has been accepted
widely, is used by international institutions, and lends itself to com-
parisons with standards which have been devised for other countries.
however, while Vwe believe that, properly qualified, it could roughly
describe a "health standard of nutrition," it needs considerably deeper
analysis. It may be said that, in general, all requiirements are thus
overstated, some of them critically. This is recognized however by
the pirotagonists of the method, who admit the existence of wride safety
margins. It was tentatively assumed that the standard which actually
wvould come close to the description of a health nutrition standard for
Colombia in 1946 would amount to 80 percent of the requirements as cal-
culated and shown in Table P-5. Also, it weus tentatively assumed that
no Tnajor changes would occur before 1955.

2/ Report of the Committee on Calorie Requirements, FAC, September 12-

16, 1949 (unpublished).
2/ R.ecommiended Dietary Allowances (revised 1948) National Research
Council, Reprint and Circular Service, Number 129, October, 1948.
J This te-.e also apruears as Table 126, p.36 4, Comprehensive flenort.
 - 6 -

Per Capita Food Input and Requirements

Table B-5 summarizes all of our findings on the consumption of

food in Colombia, by matching per caplta input with mininmum health re-
quirements. It appears clearly that while needs in food energy, iron
and thiamine were more than fulfilled, deficiencies were marked in
proteins and ascorbic acid, while the supply of essential minerals,
such as calcium and phosphorus, and essential vitamins, such as niacin
and riboflavin, was barely half the necessary level. Though data are
lacking on Vitamins "A" and `fD,l, the lack of yellow vegetables and of
fats in the diet indicate that the shortage of these nutrients may
likewise be acute.

In short, the Colombian diet in 1946 lacked most of the nrotective

elements. Moreover, the excess in food energy was not such as to per-
mit sudden increases of economic activity which automatically would
bring about increases in the need for calories. Doubtless these conclu-
sions are not based on very reliable data. They are, however, singularly
reinforced when compared, in Table E-6,11 with snalysis of the diets of
workers in four important cities, hased on well documented studies of
the standard of living and monthly u-ruchases of these grouns by the
Contraloria General.i/

Chemical Contents of Diets

Table B-5 seems to indicate that the food energy intake of city
dwellers is generally lower than the country average, and lower than
requiremients. This does not affect the validity of our findings. That
urban dwellers in general consume fewer calories than the national aver-
age is logical, when it is remembered that much of the agricultural
labor lives on the cheapest products of the farm, mostly cereals, and
thus is likely to have a better "energy" diet but an even worse 'protec-
tive" diet than the city dweller.

Figures on the intake of proteins of animal origin, which are a

nmore significant yardstick in diet adequacy, indicate that Honda and
Barranquilla are way above the national average and above minimum health
requirements, while Manizales and Bucaramanga are below. That this
pattern corresponds to that of income levels is not surprising, inas-
much as animal proteins are the most exoensive of all types of nutrients.

5/ Workers' diets are comoared with average per capita requirements.

Results may differ slightly if they were compared with requirements for
their own group structure.
S These four cities are representative of four distinct types of ur-
ban centers in Colombia: Barranquilla is an industrial center and a
sea harbor in the hot zone. Its workers are wealthier than average, as
are those of Honda. !Manizales is a small industrial center in the tem-
perate zone, in the middle of a coffee area, where workers' incomes are
average, Bucaramenga is a small agricultural and industrial center in
a depressed area where workers' incomes are below average.
Deficiencies in calcium indicated for the four cities are even more
marked than those assumed to exist for Colombia as a whole, which might
indicate some overstatement of the milk production in riational income
statistics. Deficiencies in fats, riboflavin, niacin, phosphorud
ascorbic acid and adequacy in iron and thiamine, indicated in the anal-
ysis of the Colombian diet, are also confirmed by analysis of local
conditions. In general, studies of the nutritional conditions of
workers in urban centers confirm and reinforce the conclusions derived
from analysis of nationwide conditions. Colombia suffers severe defi-
ciencies in animal proteins, fats, calcium, phosphorus, riboflavin,
niacin and ascorbic acid. Questions thus arise as to how these elements
can best be provided, the current sources of nutrients, and how the
diet can be improved.

'ajor Constituents of the Diet

NWhile it is generally believed that the Colombian diet does not

vary considerably from one zone to another, this is not sustained by
analysis of the three major sources of main chemical nutrients in five
typical diets as given in Table B-6. While panela is definitely the
manor source of calories, and thus the foundation of Colombian diets,
supplementary sources of energy nutrients vary according to local cir-
cumstances. In the Atlantic coast region, rice is the secondary
staple. In Caldas, it is corn; in Qantander, a depressed area, it is.
yucca. For the country in general, where diet compositions are in-
fluenced heavily by farm consumption, platano is the staple.

Panela, the mainstay of the diet, is also most important as the

source of calcium and iron, and in this function it is ahead of milk
products and meats, which would be more adequate sources. This is the
reason why great care should be taken to avoid a too swift shift from
panela to sugar. As long as the production of protective nutrients
will not have reached ideal standards, and as long as they will be out
of the reach of many consumers, panela should be relied upon to make
up for important deficiencies in the Colombian diet. As seen also in
Table B-3, the comnlex corn - beef - rice is essential in the securing
of niacin, phosphorus and proteins and is also an important provider
of iron, thiamine (corn, rice) and riboflavin. However, these commodi-
ties are far from being the best providers of these elements and in
order to make up for the deficiencies in niacin, riboflavin and phos-
phorus, their intake should be stepped un considerably.

The Colombian diet is thus inadeouate in many ways; the major sup-
plier of calories is an expensive sugar product, and orotective elements
are supplied in inadequate volume by the cheaper cereals. While calorie
deficiencies could easily be overcome by the introduction of a better
storage system, which would make possible a greater intake of those food-
stuffs already important as energy providers, it would be impossible to
rely on a simple increase in production for the satisfaction of other
dietary requirements. The nature of the production itself must change.
Thile relatively smal increases in cattle and fish production might
satisfy the need for more fats, proteins, and niacin, greater efforts
will have to be made in order to sten up the output of dairy oroducts
rhich are essprtial foi sunplying calciunm, phosFhorus and rbloflavin
requirements. Finally, a ma,or educational camrT)aign may be necessary
to introduce into diets the vegetables and fruits required to make up
for deficiencies in ascorbic acid.
 Tablt -1 FOOD CONSUMPTiON 1N CO.jL0nj4, 1946

Total per Net cer per Carbo- Ascorbic Ribo-

Food consimp- capita Correc- capita capita Calories Protein3 Fats b yirates Calcium Iron Aciri Thiamine flavin Niacin Phosphorus
tion consalmp- tion consiunp- consump-
tion fact,r tion tion

Coffee 25,585 2.1480 - 22480 6.794 9.036 - .984 .045 _ _ _ .001 .001 .272
Sugar 85,770 8.312 - 8-312 22.772 86.534 .023 - 21.633 - -007 ' -
Panela 670,000 64.932 81.00 52.595 144.095 511.537 .7?n .101 126.804 130.119 2.882 - m014 .115 .014
MLiel 50,000 4.846 81.00 3.925 100753 38.173 .054 .008 9.463 13.441 .215 - .(01 .0C9 .001
Alcohol 3,600 .349 - .349 .956 3.394 .005 .001 .541 1.195 .01? - - .001 - -
Corn 620,003 60.087 42.75 25.687 70.375 237.868 5.630 2,498 47.946 9.853 1.408 1.408 .422 .111 .,63 194024
Potatoes 460,609 144.639 76.71 34.243 93.816 95.692 1.698 .122 20.640 32.836 .938 16.887 .113 .038 - 52.54
Yucca and iame 730,000 70.747 56.70 40.114 109.900 L16.167 .978 .659 32.970 43,960 1.099 12.309 .077 .030 .659 -
Rice 112,247
6 8
10.878 90.25 9.817 26.896 86.874 2.604 1.237 18.359 5.379 1.345 - .073 - .484 81.50
WNheat 1B , 45 114.231 76.71 10.917 29.909 106.177 3.230 .269 22.701 5.683 .209 - .021 .009 .239 27.52
Plantains 952,000 92.262 48.60 IL;.839 122.8245 135.130 1.!1714 .737 27.026 36.854 .737 11.056 .061 .036 .307 34.40
Bean3 60,096 5,824 - 5.8224 15.956 42.124 1.915 .239 7.978 3.510 .957 - .080 .022 .287 73.88
Chocolate 18,468 1.79( 85.71' 1.535 4.205 2n.899 .008 1.215 - 14,710 .114 - .006 - - -
Barley 26,023 2.522 el.23 2.049 5.614 20.042 .499 o089 3.705 .393 .112 - .025 - ,174 10.61
Hops 2145 .024 90.00 .022 .060 - - - - - - - - - - -
Fru.its 20,000 1.938 51.20 .992 2.718 1.359 .033 .003 .299 ,5144 .014 1.196 .002 .002 .019 _
Peas 25,004 2.1423 80.00 1.938 5.310 13.912 1.221 .037 2.177 1.1467 .1,06 .069 .0214 .017 .138 21.08
Garlic ard onions 22,370 2.168 90.00 1.951 5.314c 2.673 .080 .021 .551 1.817 .021 .572 .003 .002 .005 2.35
Vegetables 40,O0 3.875 51.20 1.984 ';. 141 l.n09 .080 .010 .1?75 2.o65 .040 .870 .(05 .005 .020 -
Lentils 1,,223 .!409 - .409 1.121 3.397 .235 .OU .671 1.099 .093 .084 .003 .002 .021 -
Chick peas 5,000 .1485 90.25 .438 1.200 4.110 .224 .0148 .696 1,080 .085 .024 .004 .002 .017 4.50
Bananas 2,253 .218 48.60 .106 .290 _ - - - - - - - - - -
Fish - - 143.35 - 13.1400 13.936 3.404 .040 .134 3.618 .134 - - - _ 29.21
Milk - 36.500 81.00 29.565 81.000 50.220 2.592 2.835 3.645 99.630 .089 3.159 .032 .155 .057 75.33
Eggs _ - 72.90 - - - - - - - - - - _ -
Cheese - - 90.25 -
Butter - - 90.25 -
Lard and taUow 12,000 1.163 90.25 1.140 3.123 28.451 - 3.061 - - .047 -
Vegetable oils 12,000 1.163 90.25 1.050 2.877 26.209 - 2.819 - - .043 - - -
Beef, meat,-edible portion 251,800 24.403 81.00 19.766 514.153 824.479 10.831 4.332 .542 ,.!415 1.625 ;027 .087 1.995 109.93
Hogs, meat,-edible portion 39,900 3.867 81.00 3.132 8.581 31.836 1.210 3.001 - .686 .180 .076 .015 .326 13.04

Total consumption per capita 1,801.33 39-65 24.38 349.00 455.37 12.512 47.63 1.07 .6666 730.13

Total consumption per consumer unit 2,461.4i7 54,18 33.31 476.90 622.25 37.10 65.09 1.46 .910 7.5 997.71
 Table B-2: AVAILABILITIES OF FOODSTUFFS AFTER LOSSES AND WASTES, 1946

(Percent)

Availabilities to the Availabilities to the

Availabilities at the ultimate consumer in ultimate consumer
market place in per- percentage of avail- in percentage of
Foodstuff centage of availabilities abilities at market availabilities at
at the farm place the farm

Coffee
Sugar
Alcohol -
Miel 90.00 90.00 81.00
Panela 90.00 90.00 81.00
Corn 50.00 85.50 42.75
Potatoes 95.00 80.75 76.71
Yucca 90,00 63.00 56.70
Rice 95.00 95.00 90.25
Wheat 95.00 80o75 76.71
Plantains 90.00 54.00 48.60
Beans
Lentils
Peas 80.00 80.00
Barley 95.00 85.50 81.23
Hops _ 90.00 90.00
Bananas 90.00 54.00 48,60
Onions 90.00 90.00
Chick peas 95.00 95°00 90.25
Cacao 95.oo 90.25 85.74
Fruits 80.00 64.00 51,20
Green vegetables 80.00 64X00 51.20
Beef 60.00 81.00 81.00
Pork 60.00 81.00 81.00
Fish 74.36 58.30 43.35
Milk 90.00 90.00 81.00
Eggs 90.00 81.00 72.90
Lard 95.00 95.oo 90.25
Butter 95.00 95.00 90.25
Cheese 95.00 95.00 90o25
Vegetable oils 95.00 95.00 90.25
 Table B-3: NUTRITlVE VALUE OF 100 GRAMS OF SELECTED COLOMBIAN FOCDS, EDIBLE PORTION

(Value per 100 gram) Page 1

Food energy
Foodstuff in Carbo- Ascorbic Ribo-
calories Proteins Fats hydrates Calcium Iron Acid Thiamine flavine Niacin PhosphoruB
(Grams) (MI1ligamsiT -

FOODSTUFFS OF
ANIMAL ORIGIN
Milk 62 3.20 3.50 4.50 123 0.11 3.9 .039 .191 0.07 93
Butter 733 0.60 81.00 0.40 16 0.20 - - .010 0.10 16
Cheese (average) 223 26.00 13.00 0.50 744 0.75 - .030 .487 0.10 610
Beef 156 20.00 8.00 1.00 10 3.00 - .050 .160 3050 203
Pork 371 14.10 35.00 - 8 2.10 - .890 .1&0 3.80 152
Lamb 230 18.00 17.00 - 15 3.00 - .250 .280 - 184
Eggs 152 13.50 10.50 1.00 55 2.80 - .116 .500 0.08 210
Chicken 91 20.00 - - 2 1.90 - .250 .100 - 218
Lard-shortening 911 - 98.00 - - 1,50 - - - -
Fish 104 25.40 0.30 1.00 27 1.00 - - 218

FRUITS (avrerage) 50 1.20 0.10 11.00 20 0.53 44.0 .062 .o59 0.69 *

VEGETABLES (average' 20 1.50 0.15 3.20 38 0.70 16.0 .052 .081 0,37 **^
Cabbage 29 1.40 0.2C 5.30 42 0.70 55.0 .045 .038 0.41 31
Lettuce 22 1.20 0.20 2.90 40 2.80 17.0 o054 .147 0.20 20

CEREALS
Rice 323 9.68 0.46 68.26 20 5.00 - .270 - 1.80 303
Wheat 355 10.80 0,90 75.90 19 0.70 - .070 .030 0.80 92
Corn 338 8.Q0 3.55 68.13 14 2.00 2,0 .600 .158 0.80 276
Barley 357 8089 1.59 66.oo 7 2,00 - .450 - 3.10 189
Oats 396 14.20 7.40 65.00 81 5.00 - .550 .150 -
Coffee 133 - 14.48 0.66 - - - .010 .020 4.00
Cacao 497 2i.60 28.90 - 112 2.70 - .150 - _
 Table B-3 (continued) Page 2

k'ood energy
Foodstuff in Carbo- Ascorbic Ribo-
calories Proteins Fats hydrates Calcil'm Iron Acid Thiamine flavine Niacin PhosphorLs
(Grams) (Milli!rams)

STARCHES (average) 100 2.40 0.07 23,00 - 12 0.50 21.0 .068 .036 0°99
Potatoes 102 1.81 0.13 22.00 35 1.00 18.0 .120 .040 - 56
Yucca 133 0.89 0.60 30.00 40 1.00 11.2 .070 .027 0.60
Plantains 110 1.20 0.60 22.00 30 0.60 9.0 .050 .029 0.25 28
Arracacha 108 2.10 0.48 21.00 35 1.00 16.0 - - -
DRY GRAINS (average) 301 21.00 1.90 50.00 87 6650 1.1 .418 .192 1.41
Kidney beans 264 12.00 1.50 50.00 22 6.oo - *500 .138 1.80
CO63
Lentils 303 21.00 1.00 59.90 98 8.30 7.5 .290 .140 1.90 .
Peas 262 23.00 0.70 41.00 28 2.00 1.3 .460 .315 2.60 397
Chick ocas 343 18.70 4.00 58.00 90 7.10 2.0 .350 *150 1,40 375
GREEN BEANS AND
PEAS (average) 90 6.50 0.90 14.00 42 1.20 20.0 .264 .112 0.52
String beans 33 2.00 0.30 ... 130 1.60 15.0 .070 .090
Green peas 98 6.70 0.40 17.00 22 1.90 26.0 .382 9275 _ 122
Lima beans 122 11.00 070 47.00 28 2.00 25.0 .300 .250 - 158
ONIONS 50 1.50 0.40 10.30 34 0.40 10.7 .053 .043 0.10 44
SUGAR 380 0.10 - 95.00 - - - - .032 -

PANELA 355 0.50 0°07 88.00 125 2.00 - .010 .080 0.01
Table B-4: PERCENT DISTRIBUTION OF THE TOTAL POPULATION OF COLOlMIA,
BY AGE AND SEX GROUPS, 1946

(Percent)

Age group Male Female Total

0 to 4 ..... 14.7
5 to 9 ... ... 12.7

10 to 14 ... ... 11.8

15 to 19 5.6 5.2 10.8
20 to 35 12.0 12.3 l/ 24.3

35 to 45 5.2 5.5 10.7

45 to 55 3.7 3.7 7.4
55 to 65 2.2 2.2 4.4
65 and over 1.5 1.7 3.2

100 0

1/ Including expectant mothers 2.h%.

Source: Projection of 1938 Population census by Contraloria General,

revised in 1949 by staff of I.B.R.D.
 Table B-5: LEVEL OF NUTRITION COMPARED WITH REQUIREMENTS, 1946

Colombian Theoretical Availabilities

standard re uirements in percentage
Item (Per capita) of requirements

Food energy (calories) 1801.33 1710.00 105%

Proteins (grams) 39.65 (18) 50.00 (20) 79% (90)

Fats (grams) 24.38 37.00 66%

Calcium (mg) 455.37 880.00 52g

Iron (mg) 12e51 9.12 139%

Ascorbic acid (mg) 47.63 55.20 87%

Thiamine (mg) 1.07 0.93 115%

Riboflavin (mg) 0.67 1.28 52%

Niacin (mg) 5.50 9.30 59%

Phosphorus (mg) 730.13 1320.00 55%

Note: Animal proteins in parenthesis.

 Table B 6: ANALYSIS OF WORKERSt DIETS IN FOUR IMPORTANT CITIES AND COLOMBIA, 1946

Cities Total Theoretical

Item Manizales Bucaramanga Barranqu.illa Honda Colombia requirements

1,618.500 1,348.40 1,690.61 1,782.22 1,801.33 1,710.00

Calories (units)

Proteins (grams)
35.550 33.28 49.87 49.89 39.65 50.00
Total
(16.9) (15.5) (23.7) (24.2) (18.03) (20.00)
(Animal origin)

28.550 21.78 39.51 38.53 24.38 37.00

Fats (gm.)

295.430 263.27 278.34 300.42 349.oo .00

Carbohydrates (gm.)

418.010 344.69 405.14 417.13 455.37 880.00

Calcium (mg.)
12.250 10,44 13.68 14.76 12.51 9.12
Iron (mg.)

34.370 46.56 36.90 56.89 47.63 55.20

Ascorbic acid (mg.)
1.001 0.65 1.01 1.15 1.07 0.93
Thiamine (mg.)

0.643 o.47 o.63 0.75 o.67 1.28

Riboflavine (me.)

4.846 4.40 7.o6 7.26 5.50 9.30

Niacin (mg.)

710.250 503.70 950.50 912.41 730.13 1,320.00

Phosphorus (mg.)
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX C

CHARACTERISTICS OF POWER FACILITIES OF PRINCIPAL CITIES

by

David L. Gordon

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 CiARACTEBISTICS OF POWERFACILITIES OF PRINCIPAL CITIES

Estimated 1950 Estimated Preaent2/ Generating Added to Additions

Population of Ar.nuai Generating Peak, Capecity per Type of Consumption-1948 Capacity
5 Increased Consumption Added Capacity ProJected
Municipa.lities Growth Capacity Load / Capite Principal Total Industry kwh 1945-49 1945 - 48 in Construction 195C-54
(000's) (%W (1W) ( (Watts)
wW) Installation ('000 kwh) ('000 kwh) per capita (Kw) Total Induetry (Kw) (1(w)
Bogota 544 4.34 37,4004/ 35,950 68 H3ydro 125,166 36,3592/ 230 None 43% 64% 19,3002/ 30,0OG
Medellin 265 3.84 5i,500A/ 42,000 194
l4edellin 26~~~~~~~~~~~~~~ 3.64 ~~~~~~~-,5~~~~~---
Hydro
211,610 69,490 798.5 10,000 46% 33% 50, 0o6/ (Complete
ontrctonproject
in construction)~~~~~~~ii
Barranquilla 255 4.39 31,665 __ 124 Steam 83,721 38,296 328.3 19,000 90% 97% None 10,00C
Cali 165 4.11 11,300-J 13,000 68 Diecel 42,ooo7v 9,272 210.1 5,000 45% n.a. 24,ooo6/ (Complete proJeot
Cartagena 115 2.55 3,650 3,800 32 Steam 11,7681/ 4,150f/ 102.3 None 81% 70,c None 5,000 t
Manizales 130 3.30 5,500 6,0oo 42 Hydro 26,ooo0/ n.a. 200 None 24% n.a. 20,000/ (Complete project
Bucaramanga 79 3.68 1,960o - 25 hydro 8,939 2,190/ 113 600 45% 44%ic 520 18,000
Girardot 632/ n.a. 2,092 -- 332/ -- 6,339 1,679 i0o2/ 1,280 58% 82% None 2,000
Santa Marta 48 3.10 2,570 -- 54 Hydro 6,019 1,683 125 1,220 104% 52% None 1,000
Naive 41 1.56 1,100 -- 27 DIesel 2,297 874 56 800o n.a. n.a. None t5,000'
Popayan 38 1.99 2,100 -- 55 Eydro 12,960 2,592 341 None 5% 5% None 4,000J

1/ In operation, autumn of 1949.

2/ Peak loads sometimes higher than theoretical capacity for brief periods.
3/ Includes entire population of municipality. (However, these power facilities frequently aleo serve other less populous municipalities.)
4/ Lower in dry season.
5/ Excludes small fixed-rate customers.
6/ Hydroelectric project, to serve other nearby localities ae well.
7/ hstimated; a substantial part of power consumption is not metered.
8/ Includes commercial consumption.
9/ Includes Tocaima and Aqua de Dios.

Source: Individual municipalities or power companies.

 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX D

WATER AND SEWER FACILITIES,

BY DEPARTMENTS AND IN VARIOUS CITIES

by

David L. Gordon

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 TABLES

D-1 Distribution of Water and Sewer Facilities by Departments

D-2 Characteristics of Water and Sewer Facilities in Various Cities

 TABLE D-1

DISTRIBUTION OF WATER AND SEWER FACILITIES BY DEPARTMENTS

Population Number of Water Supply Systems Number of Number of Sewer Systems

1950 Percentage rn construction Purifica- Existing In cons truc-
Department Estimated Urban Existing or Final Prepa- tion Plants tion
(000 omitted) 1938 ration 1! 2/

Antioquia 1,486 27.7 27 32 1 18 26

Atlantico 406 88.6 12/ 03/ 1 1 2
Bolivar 1,047 41.9 12/ 73/ 1 0 0
Boyaca 774 6.4 16 25 0 24 10
Caldas 1,100 32.1 5 15 2 11 16
Cauca 454 10.9 3 14 2 12 7
Choco 125 9.0 2 6 1 0 1
Cundinamarca 1,470 35.4 14 12 6 34 14
Huila 240 24.7 5 4 1 4 5
Magdalena 459 43.6 1 8 1 1 1
Narino 551 16.6 7 14 2 6 9
Norte de Santander 433 25.4 7 14 2 3 7
Santander 756 19.2 9 18 2 9 8
Tolima 747 21.8 6 11 2 11 1
Valle del Cauca 1,oo6 43.8 9 18 9 16 6
Intendencias and
Comisarias 1 5 0 3 4

l/ Includes projects for which plans are completed and materials procured or on order.
2/ The number of construction projects differs from the numbers in Tables 67 and 68 (pp. 215-16 of the Comprehensive
Report) because data in this table includes projects for expansion of some existing systems.
3/ Plus some artesian wells in rural districts.

Source: Sanitary Engineering Division, Ministry of Hygiene, and individual municipalities.

 TABLE D-2

CHARACTERISTICS OF WATER AND SEWER FACILITIEi5 IN VARIOUS CITIES

W A T E R S U P P L Y S E W ER S Y S T E M

Adequacy of 2fy SL in Cacity

CaIncrease
Capacity Approximate Increase in Capacity
Available Purifi- Average Percentage (mW/sec) Percentage ( m3/sec)
City Supply cation Availability of of 1945-1949 In Con- of Urban 1945-149 In Con-
(m3 /sec) Plant Purified Water Buildings struction Connections struction
(liters per Connectedl/
capita per day)

Bogota 1.252/ Yes 200 85 None 0.521

Medellin 1.0021 YesA/ 2704/ 100 0.13-.182/ 0.52/ o.6 76 0.15 0.02

Barranquilla 0.70 Yes 240 80 None None 0.14 17 0.035 None

Cali 0.650 Yes 370 95 0.0405V 0.243

Cartagena 0.0936 Yes 90 60 None None Few private sewers only

Manizales 0.250 Yes 210 55 None None n.a. 45 None None

Bucaramanga 0.175 Yes 150 n.a. 0.0602/ 0.225 44.736' 67 15.00-/ 1.2§/

Armenia 0.154 No 1907/ n.a. 0.038 None 4 .254/ 86 2.27 86/ 1.o496/

Santa Marta 0.120 Yes 230 75 None None 0.170 25 None None

Popayan 0.120 Yes 415 n.a. 0.020 None n.a. 69 n.a. n.a.

Girardot 0.110 Yes 265 n.a. n.a. n.a. Fragmentary, in center of city only.

/ Rough estimate, based on 1950 urban population, of total water .5/ Purification plant only.
consumption, including industrial and commercial users. 6 Includes street drains.
2/ Maximum; varying with seasons. 7/ Chlorinated only.
3/ For dry season supply only.
4.1 Only 75' of water fully treated.

Source: Sanitary Engineering Division, Yinistry of Hygiene,and individual municipalities.

 THE BASIS OF

A DEVELOPMENT PROGRAM FOR CQLOMBIA

APPENDIX E

SOURCES OF MUNICIPAL REVENUES, 1946

by

David L. Gordon

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 SOU C E S OPF M U C I PAIL R EV E NU ES, 1946
For 784 Munieipolltti- Clo...lfiodby lice or Reven..n)

Pe.os or the Peso of the P-cc $ or the 40 eE ,us o th. Pfos o the p-Ooe o the
AmounLt per e..U.. Ano_t per e-enuo A ont P.,Rov -n es Amount per R-'1,-ue Amon o-evnes uct r eeeo A-ct per Revenue-

light ~~~~~~~~~(pe
...) Copito (peso..) C-elto (oesoo) CoPito uus et, ___ (peoou) Copitt,eeo) C it 5 0
u Coplto

MunieipoL prope.rty 2,300,313 4.63 301,203 6.41 600,722 4._3 201,311 2 .78 1129,449 2"17,35, 0.39 3,66o,cco 4.31
Eleotrfic gh 4,869,113 9.79 414515 0.31 659,891 4.98 1,8 4.33 132,609 0 58 83,443 1.69 6,072,531 7.011
Water supply 2,023,458 4.47 4018,864 8.53 489,180 3.69 014,904 2.97 115,405 2.24 79,306 1.60I 3,500,841 4.14
Poblle sl.oght-rhouseo 499,315 1.41 175,415 3.73 314,773 2.38 336,648 4.65 244,066 4,2ij91-5 4.214 2,196,950~ 2.59
Pu'blIcourgte 1,187,303 2.3,9 26,626 0.57 060,789 1.97 143,41] 1.98 136,162 260 (13,736 1.50 1,433,374 2.11
Street-urs 834,831 1.69 --- --- --- --- --- --- --- 834,831 0.98
C.ttul _k.htO 155,587 0.31 2,155 0.04 45,459 0.34 12,3593 C.17 10,450 .2 6,343 2.1R 215,361 0.25
Telephe- systUc 1,360,178 0.74 --. 97,377 0.74 16,470 0.23 9,924 1 - 1,4851,94,9 1.75
Other uee1o- 2,8-8,082 211,2011 4.4 27.q,89 _
15
~ 87.729 ' .03,09I..~ . 21,36 C. -~ i.449.633 4._6

TOTAL 16,730,380 1057 33.65 1,131,989 3.4804 24.08 2,676,o86 1.321 20.20 1,326,2040 0.786 1.31i 113,405 I
1 0.1441 15.95~ 601,011 0.184 12.20 23,271,476 2.320 07.38

TAXFS AND CHARGES

Weights sod -e-s,re 40,989 o.061 0.16 03,698 0.08 0.50 113,559 o.u65 0.86 78,744 0.047 1.09 42,493 0.005 0.03 107,260 0.033 2.14 4s6,406 0.046 c_,4
Stroeetclesoisg &light 1,994,958 1.494 4.00 1,147,525 0.496 3.04 174,8o5 0.099 1.32 43,904 0.026 0.61 14,001 0.008 0.28 14,789 0.005 0.30 2,389,196 0.238 0.81
Rood too 88,011 o.06 0.18 05,100 0.84 0.,3 301,054 0.171 0.07 0.133 3.10 123,640 0032o 499 008 .58426 005 10
Sl1ughtoring too 110,819 0.083 0.00 10,470 0.035 0.02 2000,090 0.115 1.53 ( .099 2.32 114,755 0.087 2.85 140,166 0.043 0. C'l 779,990 0.078 0.90
A.uoe-ot. too 364,419 0.273 0.73 89,586 0.301 1.91 117,403 0.67 0.89 45,739 0.027 0.63 23,625I 0.04 o.46 19,603 0.005 0.40 660,296 c.o66 0o7
Sellero orfsuln 1,341 0.001 - 1,183 0.004 0.02 6,767 0.0o0, 0.05 I.968 0.001 0.03 1,095 [ .001, 0.02 1,454 0.021 0.03 13,887 0.001 0.00
Induotry &co-or- 4,0,68.3 .69 096,842 09 6.32 629,63 0.472 6.26 298,884 0'7 4.02I 1h9,0 I
2.10 .30 101,607 0.031 2.24 6,020,144 0.601 7.24,
Motor vehIcle
rsniotrvtioeo 0~~~31,1040.173 0.46 42,406 013 .95879 .33 .44 636 000 02 ,2 .0~ c~ ,1 .0 .23991 006 74
Fore-g3,torchndioe t-e148,0 1.112 2.0,9 68,115 0.2 .5 95,444 0.054 0.7 17,00 00 02 699 2 4 01 167 001 .03 1,7,4:4P6 0.167 19
Rool stote oo 4,05,010 2.999 .03 23,009 .850 .38 76,080 .433 575 55,515 .330 770053,989 0307,80.71 58,443 0.17841.73 ,707,08 036967.8
irooois fvhils953,714 0.714 12 5,65 0.187 1.8 130,434 0.074 0.98 41,447 0.005 05 272 00 .01,9 .0 .4 10878 0.123 1.45
Other tacos ~~~~~~~~~7,620,201
318,116
5.706 1.069
15.33 6.77 955,408 0).543 7.21 435,66o
914.9q4
0.258 6.01 404,094 0:41
976 .5,ii.66
78 3,0
616,366
.3
0.189
.3
12.50
1,6,3
8.429.055
.1
0.8431
1.96
9.92
Other iO...oi/ 4,080.872 j.5 8.022 5.2 1.910 12.09 1.6i,4.797 0.3 20.45 0.542 12.62 1

SPECAL
ICOla TOTALI 05,339,004 18.973 50.96 1,940,085 6.385 40.41 5,396,300 3.067 40.73 2,844,348 1.685 39.27 0,116,30)61.257 41.13 2,132,736 0.~ 43.28 39,739,146 3.965 46,76

Fro the Natiosol Trs,-ryg/' 891,433 0. 667 1.79 337,5421 1.134 7.18 0,717,627 0.976 10.97 925,842 0.489 1.1.39 345,058 0.205 6.71 c1,68 0.046 3.07 4,0,67,063 0.406 5.022
Po~ti.ipati.. in Dpurtmest T..o 4,221,109 3.161 .4 265,84 083 5.65 2,s,56,56o 1.453 19.30 1,749,974 1.037 4.6 149123 0.4 08.16 1,587,3 0.7 32.1 11,829,046 1.180o 39
Upeniolgrooto
Rorro80egs
~~~~~~~~~769,862
~~~~~~~~~~1.769.272
1.5 0465472I368504
841.8 1.4 57,0 ___
15,660
8,714
0.98 136,974
28 41 __
2.70
5.45
239,019
__
485
4.39
1,914,613
I3.963,648
0.191
0 0091
0.26
4.66

TOTAL ~7,651,676 5.729 15.39 1,669,765 .61 5.' 5,174,999 2.941 139.07 3,072,397 1.820 42.42 2,21,496 1.3141 43.02 2,193,546 0.6731 44.50 21.,975,172 0.193 1 .86

GRANDToTAlS 49,721,06037.229 100.00 4,701,839__1.80L1ou.0c 113,247,385

7.529 ICu.00 7,242,987 .9100 5,145,027 J3.055j 100~.01 [4,927,296i 1.513 100.ov 84,9574 8.480] 100.00.

Number of Moniuipelitie. in ol1- 9 7 68 103 147 430 784

P.pu3stios 1,335,540 297,579 1,759,478 1,687,890 1,684,285 3,257,288 10,200,060

% Of Popu1-i,alo 13.33 0.97 17.56 16.84 16.81 32.50 100

% of re-esoo 58.51 5.53 15.59 8.52 6.05 5.80 100

g/ Pines, f-rrolt of deposits, Inter-t, etc.

Li floessot in-1ode -otrihoticow of the Rondo do F-onot. Mu.iopol fur speofic lons1 projeuts.
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX F

PUBLIC FINANCE

by

Richard A. Musgrave

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 TABLES

F-1 Expenditures of the national government, 1940-50

F-2 Tax liability for selected levels of income: single
taxpayer without patrimony
F-3 Tax liability for selected levels of income: married
taxpayer with three cliildren without patrimony
F-4 Tax liability for selected incomes: capital income
for single and married taxpayers with three
children, and companies
F-5 Tax liability for combined income
F-6 Income of principal municipalities by sources, 1948
F-7 Expenditures of principal municipalities by purposes,
1948
F-S Inco-me of municipalities by departinents and sources,
1948
F-9 Expenditures of municipalities by departments and
purposes, 1948
F-10 Real property tax rates and assessed valuations in
principal cities, January 1, 1949
F-li Results of national real property reassessment
program to March 1949
 TABLE F-1

EXPENDITIJRES 0r THE NATIONAL GOVERNMENT. 19LO-1950z/

(millions of Pesos)

Estimated
Functions 1940 1941 1942 1943 1944 1945 lq46 1947 1948 1949 1950

Audit Department .9 .9 1.0 1.1 1.6 2.2 3.0 3.6 4.7 6.6 7.5
General Government 12.9 12.8 13.4 15.8 18.4 23.6 30.4 18.7 22.9 23.2 31.3
Foreign Relations 1.8 1.6 1.8 1.6 2.1 2.5 6.8 10.7 9.2 5.2 6.4
Justice and Police - - - - - - - 18.2 19.6 23.5 23.3
Finance and Public Credit
Ordinary Service 61.5 43.6 69.2 72.9 47.7 38.5 39.2 67.1 69.0 38.5 59.4,
Public Debt - - - 18.2 20.7 32.7 45.5 39.6 61.3 56.0 46.8
Military Establishment 14.8 15.0 16.0 15.6 21.5 26.2 28.6 48.0 57.4 61.3 69.9
Labor 6.3 6.1 6.5 8.2 9.6 12.8 15.7 2.7 4.2 4.3 6.o
Public Health - - - - - - - 16.2 15.4 18.8 16.7
Agriculture and Commerce 3.2 3.7 9.4 4.7 3.6 6.3 13.1 11.8 14.8a/ 17.12/ 21.74/
Mines and Petroleum .3 .6 .6 .8 .6 .7 .8 1.1 1.4 2.0 2.5
Education 7.7 7.5 6.5 8.4 9.5 12.1 16.2 19.9, 20.8 25.2 36.1
Mail and Telegraph 5.3 5.3 5.5 6.1 7.8 10.2 13.5 16.4 18.2 19.1 16.7
Public Works 17.3 15.7 26.9 27.1 35.7 44.6 69.2 89.9/ 93.2 82.6 78.1
Reserves for future
payvments. etc. - 2.4 6.5 7.8 7.8 - -- 4.6 2.5--- 7.9 -

132.0 113.2 163.2 188.3 186.6 212.5 281.9 368.5 414.6 391.3 422.4

1/ 1940-47 from Informe Financiero de la Contraloria; 1948, from Contraloria; 1940. from b,id-et estimates; see
Revista del Banco de la Republica, January 1949; 1950 from budget estimates ("Proyecto de Presupuesto de
Rentas y Ley de Apropiaciones, Ministerio de Hacienda").
g/ of which 9.9 for Agriculture and 4.9 for Commerce and Industry.
2/ of which 10.3 for Agricirlture and 6.8 for Commerce and Industry.
4/ of which 12.2 for Agriculture and 9.5 for Commerce and Industry.
 TABLE F-2

TAX LIABILITY FOR SELECTED LEVELS OF INCOME

STNGLE TAXPAYER WITHOUT PATRIMONY

(pesos)

F I R S T S E C T I O N S E CO ND S E C T IO N
Taxable Salary Income From Company Subject to Income Tax Earned Income from Other Sources
Income - _
Before Income 35% - Tax on Total % of Income 35% -2% Tax on Total % of
Personal Tax Sur- Sur- High Tax Taxable Tax Suir- Sur- High Tax Taxable
Exemption Charge Charge Incomes Income Charge Charge Incomes Tncone

2,000 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0-
3,000 10 -0- -0- -0- 10 0.33 10 -0- -0- -0- 10 0.33
5,000 35 -0- -0- -0- 35 0.70 35 -0- -0- -0- 35 0.70
7,000 80 -0- -0- -0- 80 1.14 80 -0- -0- -0- 80 1.14
8,000 110 4 -0- -0- 114 1.42 110 4 -0- -0- 114 1.42
10,000 183 29 -0- -0- 212 2.12 183 29 -0- -0- 212 2.12
13,500 379 98 13 -0- 490 3.63 379 98 13 -0- 490 3.63
15,000 453 123 20 -0- 596 3.97 453 123 20 -0- 596 3.97
25,000 453 123 20 -0- 596 2.38 1,088 381 70 -0- 1,539 6.16
38,000 453 123 20 21 617 1.62 2,248 787 135 -0- 3,170 8.34
50,000 453 123 20 755 1,351 2.70 3,283 1,149 195 497 5,124 10.25
75,000 453 123 20 2,676 3,272 4.36 5,868 2,054 320 2,081 10,323 13.76
100,000 453 123 20 4,915 5,511 5.51 8,758 3,065 445 3,871 16,139 16.14
 TABLE F-3

TAX LIABILITY FOR SELECTED LEVELS OF INCOME

MARRIED TAXPAYER WITH-THREE-CHILDREN WITTHOUT PATRIMONY

(pesos)

F I R S T S E C T IO N S E CO N D S E C T IO N

Taxable Salary Income from Company Subject to Income Tax Earned Income from Other Sources
Income
Before 35% % Tax on % of 35% i Tax on % of
Personal Income Sur- Sur- High Total Taxable Income Sur- Sur- High Total Taxable
Exemption Tax Charge Charge Incomes Tax Income Tax Charge Charge Incomes Tax Income

7,000 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0-
8,000 10 -0- -0- -0- 10 0.13 10 -0- -0- -0- 10 0.13
10,000 35 -0- -0- -0- 35 0.35 35 -0- -0- -0- 35 0.35
13,500 265 58 -0- -0- 323 2.39 265 58 -0- -0- 323 2.39
15,000 333 82 8 -0- 423 2.82 333 82 8 -0- 423 2.82
25,000 333 82 8 -0- 423 1.69 908 283 58 -0- 1,249 5.00
38,000 333 82 8 -0- 423 1.11 1,935 642 123 -0- 2,700 7.11
40,000 333 82 8 4 427 1.07 2,113 705 133 -0- 2,951 7.38
50,000 333 82 8 596 1,019 2.04 3,046 1,031 183 357 4,617 9.23
75,000 333 82 8 2,482 2,905 3.87 5,593 1,923 308 1,914 9,738 12.98
100,000 333 82 8 4,693 5,116 5.12 8,458 2,925 433 3,686 15,502 15.50
 TABLE F-14

TAXKLIAOIILITY FOR SELECTED INCOMES

CAPITAL INCOME FOR SINGIL7 !iND MA'6ED TAXPAYERS W.ITH THREE' CHILDRFIN, AND _UMPAqIFS

(pesos)

Taxable Income Before _ _ % of Income

Personal Exemption Taxable % of Sarried
Married Income Taxable Total Single Taxpa:rer Total %
Taxpayer After Income to Patri- Excess 209 1, Tax on Taxes for Tax-. with Taxes of
With Three Personal Taxable Taxable mony Income Profits 35% Sur- SUr- High Inr1ividual payer Three for in-
Single
Taxoayer Children Exemption Patrimony Patrimony Tax Tax Tax SuhareeOhar rha Tn ies Taxr-, r Children Comoanies come

7,000 12,000 5,000 30,000 16.67 10 80 165 54 33 -0- -0- 342 4.89 2.85 342 6.814
12,000 13,500 10,000 30,000 33.33 10 265 1,081 440 216 -0- -0- 2,012 16.77 14.90 2,012 20.12
12,000 13,500 10,000 60,000 16.67 70 265 293 185 59 -0- -0- 872 7.27 6.46 872 8.72
26,000 28,500 25,000 60,000 24.00 70 1,163 3,216 1,522 643 75 -o- 6,689 25.73 23.47 6,689 26.76
26,000 28,%00 25,000 150,000 16.67 320 1,163 610 698 122 75 -0- 2,988 11.149 10.148 2,9H8 11.95
53,500 50,000 50,000 100.00 45 3,378 10,960 4,999 2,192 200 236 22,010 43.16 41.14 21,774 43.55
51,000
51,000 53,500 50,000 150,000 33.33 320 3,378 4,682 2,898 936 200 850 13,2614 26.01 24.79 12,414 24.83
51,000 53,500 50,000 250,000 20.00 770 3,378 1,866 2,070 373 200 1,1?1 9,778 19.17 18.28 8,657 17.31
76,000 78,500 75,00o 100,000 75.00 170 5,978 13,981 7,010 2,796 325 1,396 31,511 41.46 40.14 30,115 140.15
76,000 78,500 75,00o 250,000 30.00 770 5,978 5,705 4,324 1,141 325 2,212 20,1455 26.91 26.06 18,243 24.32
76,000 78,500 75,000 400,000 18.75 1,770 5,978 1,985 3,372 397 325 2,682 16,509 21.72 21.03 13,827 18.44
101,000 103,50o 100,000 250,000 40.00 770 8,878 10,554 7,036 2,111 450 3,464 33,263 32.93 32.14 29,799 29.80
101,000 103,500 100,000 500,000 20.00 2,570 8,878 3,136 5,069 627 450 4,280 25,010 24.76 24.16 20,730 20.73
251,000 253,500 250,000 350,000 71.143 1,420 28,378 41,120 24,786 8,224 1,200 11,219 115,147 45.88 45.42 103,928 41.57
251,000 253,500 250,000 1,000,000 25,00 7,170 28,378 11,542 16,447 2,308 1,200 15,262 82,307 32.79 32.47 67,045 26.82
251,000 253,500 250,000 1,500,000 16.67 12,670 28,378 1,750 11h,944 350 1,200 16,115 75,407 30,04 29.75 59,292 23.72
501,000 503,500 500,000 1,500,000 33.33 12,670 65,128 34,144 39,145 6,829 2,450 33,555 193,921 38.71 38.51 160,366 32.07
501,000 503,500 500,000 3,000,000 16.67 29,170 65,128 1,524 33,503 305 2,450 36,949 169,029 33.74 33.57 132,080 26.42
751,000 753,500 750,000 2,500,000 30.00 23,670 107,878 40,310 60,115 8,062 3,700 54,900 298,635 39.76 39.63 213,735 32.50
751,000 753,500 750,000 4,000,000 18.75 40,170 107,878 8,416 54,727 1,683 3,700 58,703 275,277 36.65 36.53 216,574 28.88
1,001,000 1,003,500 1,000,000 3,000,000 33033 29,170 152,628 60,152 84,648 12,030 4,950 76,097 419,675 41.93 41.82 343,578 3L.36
1,001,000 1,003,500 1,o0o,ooo 6,000,000 16.67 62,170 152,628 -0- 75,144 -0- 4,950 83,756 373,698 37.33 37.24 289,942 28.99
5,001,000 5,003,500 5,000,ooc 25,000,000 20.00 271,170 960,128 72,930 1421,1480 14,586224,950 489,058 2,254,302 45.08 45.05 1,765,214 35.30
10,001,000 10,003,500 10,000,000 80,000,000 12.50 876,170 2,060,128 -0- 1,027,704 -0- 49,950 94l,257 4,905,259 49.05 49.03 3,964,002 39.64
 TABLE F-5

TAX LIABILITY FOR COMINED INCOME

(pesos)

Earned In- Total Taxes Percentage of

come Other Percentage _ Income
Shares Than from of Total
of Total Companies Income For For For For
Taxable Corpo- Patri- Subject to Capital Total to Total Com- Individual Com- Individual
Patrimony ration mony Income Tax Income Dividends Income Patrimony panies Taxpayer panies Taxpayer

30,000 -0- 30,000 25,000 10,000 -0- 35,000 116.67 15,569 3,641 A4.48 10.40
30,000 10,000 40,000 25,000 10,000 2,000 37,000 92.50 15,801 3,825 42.71 10.34
50,000 -0- 50,000 20,000 20,000 -0- 40,000 80.00 15,982 6,463 39.96 16.16
50,000 30,000 80,000 20,000 20,000 6,ooo 46,000 57.50 15,192 7,171 33.03 15.59
100,000 -0- 100,000 30,000 50,000 -O- 80,000 80.00 36,005 19,091 45.01 23.86
100,000 50,000 150,000 30,000 50,000 10,000 90,000 60.00 32,147 21,309 35.72 23.68
150,000 -0- 150,000 30,000 50,000 -0- 80,000 53.33 27,410 17,299 34.26 21.62
30,000 150,000 180,000 25,000 5,000 30,000 60,000 33.33 12,416 5,906 20.69 9.84
150,000 30,000 130,000 30,000 50,000 5,000 85,000 47.22 27,033 17,747 31.80 20.88
250,000 -0- 250,000 25,000 80,000 -0- 105,000 42.00 32,430 26,663 30.89 25.39
250,000 50,000 300,000 25,000 50,000 10,000 85,000 28.33 18,927 15,039 22.27 17.69
250,000 100,000 350,000 25,000 80,000 20,000 125,000 35.71 33,520 30,533 26.32 24.43
500,000 300,000 800,000 -0- 100,000 60,000 160,000 20.00 25,986 34,631 16.24 21.64
50,000 800,000 850,000 -0- 10,000 140,000 150,000 17.65 10,618 19,822 7.08 13.21
 TABLE F-6

INCOME OF PRINCIPAL MUNICIPALITIES BY SOURCES 1948

(pesos)

Income from Other Levels Balance from

Municipalities Total Municipal Services Taxes Miscellaneous of Government Previous Borrowings
Property Income National Departmental Years

Bogota 29,991,660 93,323 4,028,427 11,612,173 1,629,120 899,326 1,823,525 5,053,402 4,852,364

Medellin 29,227,018 121,848 11,151,502 15,431,798 323,578 -- 1,706,714 5,976 485,602

Cali 12,663,204 1,082,921 4,525,557 4,338,786 108,020 24,000 353,033 594,492 1,636,395

Barranquilla 6,957,186 24,074 1,499,144 3,955,117 272,372 _ 58,499 1,102,217 45,763

Manizales 3,766,069 24,290 1,398,263 1,967,935 - - 177,734 -- 197,847

Pereira 2,867,273 163,794 1,587,132 737,922 36,725 6,187 248,975 31,538 55,000

Cartagena 2,856,293 22,089 1,119,898 1,405,864 34,893 71,260 119,619 82,670 -

Cucuta 2,205,352 39,185 588,839 824,925 --- 419,006 324,929 8,468

Armenia 2,734,866 50,056 599,916 543,155 -- 138,342 10,000 192,897 200,000

Bucaramanga 1,722,974 30,000 297,414 1,160,008 168,461 - 44,086 23,005 ---

Ibague 1,709,665 222,278 425,091 430,562 205,162 438 172,356 137,004 116,774

Palmira 1,176,074 6,667 483,130 514,081 33,653 62,197 65,346 11,000

Source: Contraloria General de la Republica.

 TABLE F-7

EXPENDITURES OF PRINCIPAL MUNICIPALITIES BY PURPOSES, 194g

(pesos')

Municipalities Total Government Welfare Justice Finance Public Eduication Public Statistical Other
Works Debt Control Expendlitures

Bogota 29,585,402 2,806,547 4,766,644 137,797 2,222,147 12,300,727 1,510,560 5,554,815 247,039 39,126

MedeJ2in 31,100,102 1,981,971 1,931,359 91,932 14,205,210 11,011,945 470,550 708,162 159,383 539,680

Cali 12,456,863 943,456 1,334,750 39,881 3,232,179 3,439,747 312,004 2,110,544 47,077 997,225

Barrhnquil]a 5,981,090 994,300 1,174,429 184,042 1,566,062 1,354,622 78,985 494,601 116,699 17,350

Mani2ales 2,356,506 387,188 233,994 27,167 1,069,746 130,535 74,076 399,074 34,502 224

Pereira 2,920,432 277,677 540,943 21,737 818,578 578,201 151,536 471,972 2,703 57,085

Cartagena 2,565,890 215,615 654,266 -- 1,078,390 269,906 69,210 158,142 49,541 71,820

Cucuta 2,205,896 279,392 262,212 13,020 597,255 891,265 92,972 67,140 2,640 --

Armenia ,1i64,168 2a5,049 253,842 20,356 228,744 78,151 23,589 311,318 2,916 30,203

Bucaramanga 1,691,263 188,750 360,491 24,807 78,405 838,129 38,124 121,112 25,823 15,622

Ibavue 1,497,146 278,643 156,543 6,844 306,388 554,395 44,039 33,753 35,407 81,134

Palmiira 1,042,270 209,082 149,723 4,269 316,392 141,873 96,264 62,437 -- 62,230

Source: Contraloria General de la Republica.

 TABLE F-8

INCOME OF MUNICIPALITIES BY DEPARTMENTS-' ANTD SO_PCES 198

(pesos)

Bslance
Income from other Levels from
Departments Total Municipal Services Taxes Miscellan ous of Government Previous Borrowings
Property Income2 National Deparmental Years

Antioquia 37,635,120 512,388 12,601,667 17,306,025 588,971 165,146 5,993,241 752,607 745,075

Atlantico 7,394,016 41,502 1,562,690 4,071,442 304,056 2,800 226,390 1,136,470 48,666

Bolivar3/ 5,138,894 77,530 1,388,695 2,354,568 236,332 220,598 656,654 182,583 21,934

Boyacal" 2,540,055 120,466 302,134 371,959 15,330 134,722 1,245,413 337,520 12,511

Caldas 12,638,598 358,294 4,473,976 4,616,180 164,291 278,866 1,310,764 923,552 512,675

Cauca 1,633,859 78,133 281,126 528,893 42,456 138,015 206,921 210,258 148,057

CundinamarcaV/ 34,990,101 232,975 2,832,798 14,747,350 1,702,045 1,354,781 3,302,301 5,273,187 5,544,664

Huila 1,674,099 141,386 414,214 485,699 42,151 23,303 193,875 191,054 182,417

Magdalena2/ 1,758,147 34,160 215,051 697,729 47,548 69,190 608,078 51,951 34,440

Narino 905,734 52,828 119,990 388,005 24,080 37,517 223,238 59,954 122

Norte de Santander3,199,393 50,607 671,644 1,258,301 3,9Oo 449,861 571,842 181,770 11,468

Santander 4,327,749 90,363 716,244 2,155,635 257,451 221,625 311,109 567,322 8,000

Tolima 5,836,760 446,778 1,041,995 1,567,781 329,164 27,118 1,052,975 1,060,055 310,894

Valle del Cauca 19 191q572 1,184 794 6,98,595 682,039 24,001 88,585 1,013.842 917,043 2.302,673

Total 138,864,097 3,422,204 33,020,819 57,441,606 4,121,776 3,212,127 15,916,643 11,845,326 9,883,596

/ Excluding the Choco and comisarias and intendencias.

/ Fines, forfeit of deposits, interest, etc.
fata supplemented with information of previous years.
D
.Rnnrnr. nrntrRl1rin rpnArnl ti1T RPnublica.
 TABLE F-9

EXPENDITURES OF MUNICIPALITIFS BY DEPARTV"NTS!/AND PURPOSES, 1948

(pesos)

Departments Total Government Welfiare Justice Finance Public Works Education Public Debt Statistical Others
Control

Antioquia 38,546,102 3,559,563 3,035,409 193,362 15,098,972 12,914,335 1,460,730 1,460,730 221,670 804,180

Antlantico 6,381,515 1,147,667 1,199,273 186,007 1,642,779 1,423,825 134,986 494,885 124,811 27,282

BolivarZ/ 4,338,879 841,786 712,004 13,383 1,338,351 836,928 189,409 166,560 73,442 167,016

Boyaca.2/ 2,317,963 412,467 234,880 12,010 510,626 813,407 207,817 22,309 19,671 84,776

Caldas 10,252,862 1,655,226 1,475,658 148,166 2,938,191 1,497,656 623,411 1,316,999 77,210 520,345

Cauca 1,309,189 250,294 151,009 15,752 241,812 317,855 131,231 66,401 18,789 62,046

Cundinamarca&' 33,250,166 3,746,125 5,148,598 191,038 2,935,060 12,762,950 2,139,242 5,799,966 278,754 248,433

Huila 1,528,354 343,222 132,959 24,119 480,850 332,561 106,714 59,939 5,643 42,307

Magdalena_j/ 1,690,878 651,230 155,368 26,576 358,460 256,166 126,788 20,847 21,937 73,506

Narino 803,878 251,414 102,965 5,514 84,643 175,309 86,785 13,985 29,575 53,688

Norte de Santander 2,960,308 517,125 307,892 15,718 764,452 1,081,515 185,054 70,469 8,813 9,270

Santander 3,837,542 675,81!9 683,571 53,866 509,815 1,457,410 216,805 127,901 63,082 49,243

Tolima 4,758,247 1,051,778 425,596 62,424 921,645 1,603,207 366,472 71,386 61,215 191,52h

Valle del Cauca 18 293LO 6S 2L3 1-385 1,864,301 _121,924 4L6,574 4,803,808 866 14 25 8 L324 85,499 281,104

Total 130,268,948 17,445,131 15;632,483 1,069,859 32,172,230 40,330,932 6,841,590 12,274,701 1,090,111 3,614,760

1 Excluding the Choco, and comisarias and intendencias.

j Data supplemented with information of previous years.

Source: Contraloria General de la Republica.

 TABLE F-10

REAL PROPERTY TAX RATES AND ASSESSED VALUATIONS IN PRINCIPAL CITIES

JANUARY 1, 1949

SUBJECT TO TAX NOT SUBJECT TO TAX TOTAL

Tax Rate U R B A N R U R A L U R B A N R U R A L
Per 1000 Number of Value Number of Value Number of Value Number of Value Number of Value
Municipalities Valuation Properties (pesos) Properties (pesos) Properties (pesos) Properties (pesos) Properties (pesos)

Bogota 5 - 8// 58,155 1,209,093,882 -- -- 3,764 243,)415,889 --- 61,919 1,452,509,771

MedellinV/ 21 - 8 49,470 672,440,847 7,376 29,766,379 591 65,766,380 81 7,923,412 57,518 775,897,018
Barranquilla 4 - I 23,079 314,352,645 1,102 13,798,975 725 11,517,482 18 1,372,300 24,924 3IJ1,041,402
Cali 24± 21,659 322,933,096 3,126 27,849,697 3,406 61,186,933 1,472 2,045,168 29,663 414,014,894
Cartagena 4 15,539 74,829,065 630 1,953,594 191 31,137,795 6 105,210 16,366 108,025,664
Manizales 2V 7,233 65,987,600 3,973 21,346,800 1,326 15,967,690 1,261 2,424,625 13,793 105,726,715
Pereira 2/ 8,068 63,309,994 4,387 30,713,461 263 8,416,970 106 1,297,300 12,824 103,737,725
Armenia 2bI 6,561! 14,280,775 3,302 24,450,235 145 6,504,880 29 3,518,100 10,040 78,753,990
Cuacuta 24/ 9,507 40,192,700 3,1403 10,450,850 213 10,006,750 59 515,000 13,182 61,165,300
Bucaramanga 217/ 11,02 107,557,650 859 9,922,880 255 16,824,700 7 68,850 12,523 13)i,374,080
Ibar-e 2 14,316 23,864,205 5,376 2)4,717,775 2,799 11,533,127 252 429,105 12,743 60,544,212
Palmira 2V1 5,075 35,4R2,344 3,499 P3,592,933 87 3,2R2,531 132 1,2146,220 8,793 123,6014,028
Santa 1!arta 4 - 8 14,970 17,206,1)45 1,622 4s099,175 104 6,333,769 19 308,159 6,715 27,9147,248
Pasto 34/ 4,015 25,405,303 2,497 9,352,051 414 10,893,770 956 373,616 7,882 46,0214,740
N?Iiva 2i/ 3,037 20,435,500 1,786 9,298,220 2,206 8,909,76)4 395 439,805 7,142)4 39,083,282
Tunja 2W 3,421 22,474,545 1,559 3,567,430 164 10,239,595 28 1,569,235 5,172 37,850,805
Montcria 2F/ 3,,2R 11,160,703 7,972 20,354,754 61 482,750 6 364,P00 11,767 32,363,007
(jirardot 24/ 3,881 16,728,590 570 2s779,350 88 2,1L56,500 23 8,195 14,562 21,972,635
Popayan 22/ 3,357 32,961,750 3,940 7,512,010 481 14,160,120 155 2,342,890 7,933 56,976,770

1/ Higher for unimrproved land in city.

Includes rates for street cleaning and lighting and urban police.
3] Valuations as of May 31, 1949.
) Additional emergency 2 percent for Rural Police and Fondo de Fomento Municipal.

Source: Instituto Geografico Mlilitar y Catastral, except Medellin tax rate from Contraloria General.
 TABLE F-1l

RESULTS OF NATIONAL -REAL PROPERTY REASSESSMENT PROGRAM

TO MARCH 1949

Number of Properties on Properties on Number of Number of

Departments Municipalities Tax Register Tax Register Increase Municipalities Properties
Reviewed-/ before Review since Review Not ReviewedL/ Not Reviewed

Atlantico 11 31,648 39,385 7,737 8 7,509

Bolivar 40 61,753 78,720 16,967 14 17,944

Boyaca 64 120,784 183,711 62,927 51 99,698

Caldas 16 59,629 64,778 5,149 21 50,697

Cauca 28 43,328 70,308 26,980 5 3,821
Cundinamarca 36 48,282 51,310 3,028 64 193,812

Huila 12 20,600 23,117 2,517 17 16,374

Magdalena 33 53,884 62,858 8,974 0 0

Narino 16 34,056 40,950 6,894 29 27,703

Norte de Santander 28 56,596 57,264 668 5 5,663

Santander 19 52,063 55,678 3,615 43 72,496

Tolima 32 68,412 72,067 3,655 3 12,793

Valle del Cauca 16 54,580 69,159 14,579 9 11,679

Total 351 705,615 869,305 163,690 269 520,189

1/ Not including 66 municipalities where review was currently in process.

Source: Instituto Geografico Militar y Catastral.

 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX G

MONEY AND CREDIT

by

Richard A. Musgrave

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 TABLES

G-1 Balance sheet of Banco de la Repiublica and commercial

banks, 1940-49

G-2 Annual changes in balance sheet of Banco de la Repiublica

and commercial banks, 1940-49

G-3 Sources of money supply 1941-49

G-4 Sources and uses of cornmercial bank reserves, 1940-49

G-5 Banco de la Republica credit: Amounts outstanding, 1940-49

G-6 Banco de la Repiuiblica credit: Annual changes in amounts

outstanding, 1940-49

G-7 Demand deposits by departments, 1940-48

G-8 National budget summary, 1940-49

G-9 Annual changes in national debt holdings, 1940-48

 TABLE G-1

BALANCE SHEET OF BkNCO DE LA REPUBLICA

AND COMMERCIAL BANKS, 1940 - 1949

(millions of pesos)

1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

BANCO DE LA REPUBLICA:

ASSETS-T /

1. Foreign Exchange 43.5 39.2 108.1 198.3 276.9 309.4 308.6 216.4 187.5 176.5
2. Cash 7.9 4.7 5.7 3.5 1.6 4.5 5.4 6.8 6.6 6.9

3. Loans and Discounts 89.0 113.5 85.8 73.7 103.7 100.0 130.4 249.6 338.4 345.1

4. Other Assets 10.3 14.5 14.9 15.4 15.6 17.4 22.7 100.4 107.0 120.8

TOTAL 150.7 171.9 214.5 290.9 397.8 431.3 467.1 573.2 639.5 649.3

L [A B I L I TI ESI/

5. Notes in Circulation 62.3 74.4 103.6 125.4 179.3 204.9 260.1 297.9 361.8 347.3

6. Reserves of Commercial Banks 25.5 23.3 35.6 38.4 67.4 76.5 68.5V2 75.5 78.5 102.8
7. Treasury Deposits 11.0 11.3 10.3 30.7 31.1 64.1 53.2 31.5 20.8 14.3

8. Other Deposits 13.8 13.7 20.7 42.7 28.1 27.2 32.6 33.8 28.8 29.5

9. Capital and Reserves 16.5 17.0 17.1 17.4 17.8 18.9 21.8 25.3 31.1 31.4

10. Other Liabilities 21.7 32.2 27.2 36.3 74.1 39.6 30.9 109.3 118.7 124.0

TOTAL 150.8 171.9 214.5 290.9 397.8 431.2 467.1 573.3 639.7 649.3

COMMERCIAL BANKS:

ASSETSS /

11. Deposits at Banco de la Republica 25.5 23.3 35.6 38.4 67.4 76.5 68.5 75.5 78.5 102.8

12. Cash 2.6 2.8 6.3 5.7 8.5 8.8 12.0 13.5 16.3 15.4

13. Loans 91.0 120.7 123.1 143.9 176.7 241.8 356.1 404.0 461.8 466.5
14(a). Investments - National Debt.2/ 10.4 9.7 10.2 18.3 24.8 27.1 31.9 30.5 25.4
49.5
14(b). Investments - Other 15.1 13.8 17.8 8.2 10.2 17.5 6.3 5.8 8.4
15. Other Assets 18.0 18.8 20.1 37.7 45.7 32.6 50.7 56.3 73.8 77.7

TOTAL 162.6 189.1 213.1 252.2 333.3 404.3 525.5 585.6 664.2 711.9

LI AB ILITIES]/
16. Capital and Reserves 28.8 29.3 29.5 34.2 38.2 50.1 68.7 72.4 75.1 78.0

17. Demand and Term Deposits 110.9 121.3 156.7 194.1 256.9 309.1 389.7 414.0 467.8 545.9

18. Savings Deposits 7.3 7.5 8.1 9.8 11.1 12.3 13.1 13.4 12.3 12.5
19. Discounts with Banco de la Republica 5.1 16.0 - 2.4 15.4 15.6 24.0 53.1 67.5 33.0
20. Other Liabilities 10.5 15.0 18.8 11.7. 11.7 17.2 30.0 32.7 41.5 42.5

TOTAL 162.6 189.1 213.1 252.2 333.3 404.3 525.5 585.6 664.2. 711.9

/Balance Sheet of the Banco de la Republica, Annual Report of Banco de la Republica 1948.
Z/From Revista del Banco de la Republica. \ 4
. -

-3Includes Treasury debt. Breakdown between 14(a) and (b) estimated.

 TABLE G-2

ANNUAL CHANGES IN BALANCE SHEET OF

BANCO DE LA REPUBLICA AND COMMERCIAL BANKS, 1940 - 19491/

(miiiions of pesos)

BANCO DE LA REPUIBLICA: 1940-41 1941-42 1942-43 1943-44 1944-45 1945-46 1946-47 1947-48 1948-49 (June)

ASSETS

1. Foreign Exchange Reserves - 4.3 + 68.9 + 90.2 + 78.6 + 32.5 - .8 - 92.2 - 28.9 - 11.0

2. Cash - 3.2 + 1.0 - 2.2 - 1.9 + 2.9 + .9 + 1.4 - .2 + .3

3. Loans, Discounts and Investments + 24.5 - 27.7 - 12.1 + 30.0 - 3.7 + 30.5 +119.2 + 88.8 + 6.7

(4. Other Assets + 4.2 + .4 + .5 + .2 + 1.8 + 5.3 + 77.7 + 6.6 + 13.7

TOTAL + 21.2 + 42.6 + 76.4 +106.9 + 33.4 + 35.9 +106.2 + 66.2 + 9.7

LIABILITIES
5. Notes in Circulation + 12.2 + 29.2 4- 21.8 + 53.9 + 25.6 + 55.2 + 37.8 + 63.9 - 14.5

6. Reserves of Commercial Banks - 2.2 + 12.3 + 2.8 + 29.0 + 9.1 - 8.0 + 7.0 + 3.0 + 24.3

7. Treasury Deposits + .3 - 1.0 + 20.4 + .4 + 33.0 - 10.9 - 21.7 - 10.7 - 6.5

8. Other Deposits - .1 + 7.0 + 22.0 - 14.6 - .9 + 5.4 + 1.2 - 4.9 + .7

-i 9. Capital and Reserves + .5 + .1 + .3 + .4 + 1.1 + 2.9 + 3.5 + 5.8 + .3

- 10. Other Liabilities + 10.5 - 5.0 + 9.1 + 37.8 - 34.5 - 8.7 + 78.4 + 9.3 + 5.4

TOTAL + 21.2 + 42.6 + 76.4 +106.9 + 33.4 + 35.9 +106.2 + 66.2 + 9.7

COMMERCIAL BANKS:
ASSETS

11. Deposits at Banco de la Republica - 2.2 + 12.3 + 2.8 + 29.0 + 9.1 - 8.0 + 7.0 + 3.0 + 24.3

12. Cash + .2 + 3.5 - .6 + 2.8 + .3 + 3.2 + 1.5 + 2.8 - .9

13. Loans + 29.7 + 2.4 + 20.8 + 32.8 + 65.1 +114.3 + 47.9 + 57.8 + 4.7

I 14(a). Investments - National Debt - .7 + .5 + 8.1 + 6.5 + 2.3 + 4.8 - 1.4 - 5.1

14(b). Investments - Other - 1.3 + 4.0 - 9.6 + 2.0 + 7.3 - 9.2 - .5 + 2.6

4 15. Other Assets + .8 + 1.3 + 17.6 + 8.0 - 13.1 + 18.1 + 5.6 + 17.5 + 3.9

TOTAL + 26.5 + 24.0 + 39.1 + 81.1 + 71.0 +121.2 + 60.1 + 78.6 + 47.7

LIABILITIES
16. Capital and Reserves + .5 + .2 + 4.7 + 4.0 + 11.9 + 18.6 + 3.7 + 2.7 + 2.9

17. Demand and Term Deposits + 10.4 + 35.4 + 37.4 + 62.8 + 52.2 + 80.6 + 24.3 + 53.8 + 78.1

118. Savings Deposits + .2 + .6 + 1.7 + 1.3 + 1.2 + .8 + .3 - 1.1 + .2

19. Discounts with Banco de la Republica+ 10.9 - 16.0 + 2.4 + 13.0 + .2 + 8.4 + 29.1 + 14.4 - 34.5
K 20. Other Liabilities + 4.5 + 3.8 - 7.1 0 + 5.5 + 12.8 + 2.7 + 8.8 + 1.0

TOTAL + 26.5 + 24.0 + 39.1 + 81.1 + 71.0 +121.2 + 60.1 + 78.6 + 47.7

1/
For Explanation see Table G-1.
 TABLE G-3

SOURCES OF MONEY SUPPLY, 1941 - 19491/

(millions of pesos)

1941 1942 1943 1944 1945 1946 1947 1948 19494/

Banco de la Republica:

1.+Reserves - 4.3 +68.9 + 90.2 + 78.6 + 32.5 - .8 -92.2 - 28.9 -11.0

2.+Loans&Investments +13.6 -11.7 - 14.5 + 17.0 - 3.9 + 22.1 +90.1 + 74.4 +41.2

3.+Other Assets + 4.2 + .4 + .5 + .2 + 1.8 + 5.3 +77.7 + 6.6 +13.7

4.-Other Liabilities +11.0 - 4.9 + 9.4 + 38.2 - 33.4 - 5.8 +81.9 + 15.1 + 5.4

I. TOTAL + 2.5 +62.5 + 66.8 + 57.6 + 63.8 + 32.4 - 6.3 + 37.0 +38.5

Commercial Banks:
5.+Loaps&Investments +27.7 + 6.9 + 19.3 + 41.3 + 74.7 +107.9 +46.0 + 55.3 +20.4

6.+Other Assets + .8 + 1.3 + 17.6 + 8.0 - 13.4 + 18.1 + 5.6 + 17.5 + 3.9

7.-Other Liabilities + 5.8 + 5.8 + .4 + 4.4 + 22.4 + 33.1 + 9.3 + 8.6 + 4.1

II. TOTAL +22.7 + 2.4 + 36.5 + 44.9 + 39.2 + 92.9 +42.3 + 64.2 +20.2

8. Treasury Currency - + .1 + .3 + .5 + .9 + 2.0 + 2.8 + .9 -

9. I + II + (8) +25.2 +65.0 +103.6 +103.0 +103.9 +127.0 +38.8 +102.1 +58.7

Plus sign indicates "factor of gain"; minus sign indicates "factor of loss".
-?/December 31, 1948 to June 30, 1949.
Explanation:
Line 1 - (1) in Table G-2
Line Z - (3) minus (19) in Table G-2
Line 3 - (4) in Table G-2
Line 4 - (9) plus (10) in Table G-2
Line 5 - (13) plus (14) (a) and (b) in Table G-2
Line 6 (15) in Table G-2
Line 7 - (16), (18), (20) in Table G-2 plus changes in interbank deposits.
Line 8 - Annual changes in Column (5), Table 105, p. 291 of the Comprehensive Report.
Line 9 - Annual changes in Column (9), Table 105.
 TABLE G-4

SOURCES AND USES OF COMMERCIAL BANK RESERVES, 1940-41/1948-49

(millions of pesos)

December 31 1948 -
1940 1941 1942 1943 1944 1945 1946 1947 June 30
-41 -42 -43 -44 -45 -46 -47 -48 1949
I. SOURCES
1. Foreign Exchange Reserves - 4.3 +68.9 +90.2 + 78.6 +32.5 - .8 - 92.2 -28.9 -11.0
2. Banco de la Rep6blica Credit +24.5 -27.7 -12.1 4 30.0 - 3.7 +30.5 +119.2 +88.8 + 6.7
3. Other Banco de la Republica
Assets + 4.2 + .4 + .5 + .2 + 1.8 + 5.3 + 77.7 + 6.6 +13.7
4. Treasury Notes - + .1 + .3 + .5 + .9 + 2.0 + 2.8 + .9 -

5. TOTAL +24.4 +41.7 +78.9 +109.3 +31.5 +37.0 +107.5 +67.4 + 9.4
II. USES
6. Treasury Deposits, Banco
de la Republica + .3 - 1.0 +20.4 + .4 +33.0 -10.9 - 21.7 -10.7 - 6.5
7. Other Deposits, Banco de
la Rep6blica - .1 + 7.0 +22.0 - 14.6 - .9 + 5.4 + 1.2 - 4.9 + .7
8. Other Banco de laRep6blica
Liabilities +11.0 - 4.9 + 9.4 + 38.2 -33.4 - 5.8 + 81.9 +15.1 + 5.7
9. Currency Outside Banks +15.1 +24.8 +24.9 + 53.5 +23.3 +53.1 + 37.7 +62.2 -13.9

10. TOTAL +26.3 +25.9 +76.7 + 77.5 +22.0 +41.8 + 99.1 +61.7 -14.0
(5) - (10) - 1.9 +15.8 + 2.2 + 31.8 + 9.5 - 4.8 + 8.4 + 5.7 - 4.6
III. RESERVE POSITION OF
COMMERCIAL BANKS

11. Cash &Deposits with Banco

de la Republica - 2.0 +15.8 + 2.2 + 31.8 + 9.4 - 4.8 + 8.5 + 5.8 +23.4
12. Amount Excluded - + Z.8 - 2.7 + .6 - 1.0 + 2.4 + .6 - 4.0 - 1.0
13. Reserves - 2.0 +13.0 + 4.9 + 31.2 +10.4 - 7.2 + 7.9 + 9.8 +24.4
14. Required + .7 + 6.0 + 4.1 + 8.9 + 7.4 +10.1 + 4.2 + 7.3 +11.3
15. Excess - 2.7 + 7.0 + .8 + 22.3 + 3.0 -17.3 + 3.7 + 2.5 +13.1

Explanation:
Line 1 - (1) in Table G-2.
Line 2 - (3) in Table G-2.
Line 3 - (4) in Table G-2.
Line 4 - (8) in Table G-3.
Line 6 - Annual changes in Column (1) in Table 105, p. 291 of the Comprehensive Report.
Line 7 - Annual changes in Column (2) in Table 105.
Line 8 - (9) and (10) in Table G-2.
Line 9 - Annual changes in Column (8) in Table 105.
Line 11 - (11) plus (12) in Table G-2.
Lines 12, 13, 14, 15 - From Revista del Banco de la Rep6blica.
 TABLE G-5

BANCO DE LA REPUBLICA CREDIT: AMOUNTS OUTSTANDING, 1940 - 1949

(millions of pesos)

June
Loans, Discounts and Investments 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949
1. National Government 49.7 54.5 59.8 56.9 66.3 65.5 85.7 103.3 131.9 134.7
2. Stabilization Fund-Y 1.6 .6 1.6 .1 - - 1.5 23.7 28.2 22.9

3. Individuals and Firms 8.1 17.7 5.2 .1 .2 .2 .3 .1 19.3 62.9

Member Banks
4. (a) Commercial 5.2 17.1 - 2.4 15.4 15.4 24.0 53.1 67.6)
5. (b) Caja de Credito Agrario 12.3 11.5 7.2 2.1 13.0 10.1 10.1 25.9 45.61 83.6

Non-Member Banks
_2/
6. (a) Banco Central Hipotecario 12.0 12.1 12.0 12.0 8.8 8.8 8.8 34.8 37.8')
7. (b) CajaColombianadeAhorros - - - - - - - 8.8 8.0~41.0

8. Total 88.9 113.5 85.8 73.6 103.7 100.0 130.4 249.7 338.4 345.1

Referred to as "Entidades Oficiales".

/Of which 13.8 is capital subscription.
 TABLE G-6

BANCO DE LA REPUBLICA CREDIT ANNUAL CHANGES IN AMOUNTS OUTSTANDING 1940-41/1948-49

(millions of pesos)

Loans, Discounts and 1940 1941 1942 1943 1944 1945 1946 1947 1948
Investments -41 -42 -43 -44 -45 -46 -47 -4 8 -49

1. NationaLl Government + 4.8 + 5.3 - 2.9 + 9.4 - .8 +20.2 +17.6 +28.6 + 2.8
2. StabilizaLtion Fund - 1.0 + 1.0 - 1.5 - .1 -- + 1.5 +22.2 + 4.5 - 5.3
3. Individuals & Firmns + 9.6 -12.5 - 5.1 + .1 - + .1 - .2 +19.2 +43.6

Member Banks
4. (a) Commercial +11.9 -17.1 + 2.4 +13.0 - + 8.6 +29.1 +14.5)
-29.6
5. (b) Caja de Cre'dito)
Agrario - .8 - 4.3 - 5.1i +10.9 -2.9 - +15.8 +19.7)

Non-Memnber Banks
6. (a) Banco Central
Hipotecario + .1 - .1 -- - 3.2 -- -- +26.0o + 3.0)

7. (b) Caja Colombiana

4)
-.
de Ahorros - -- -- -- -- -- + 8.8 - .8)

8. T otal +24.6 -27.7 -12.2 +30.1 -3.7 +30.4 +119.3 +88.7 + 6.7
 TABLE G-7

DEMAND DEPOSITS BY DEPARTMENTS, 1940 - 1948

(millions of pesos)

December 31 Percent of Total

Departments 1940 1941 1942 1943 1944 1945 1946 1947 1948 1940 1945 1948

Antioquia 13.2 17.0 23.6 24.3 36.9 43.5 50.1 54.8 54.8 13.7 15.0 12.1
Atlantico 11.0 12.3 15.6 20.0 24.4 29.0 36.7 41.2 46.4 11.4 10.0 10.3
Bol1var 5.2 5.3 7.2 10.2 12.4 13.1 15.9 18.9 19.4 5.4 4.5 4.3
Boyaca .8 1.0 1.3 2.5 2.7 3.6 5.1 5.5 5.9 .8 1.2 1.3
Caldas 5.8 7.0 10.2 12.7 17.8 21.3 23.3 28.3 34.9 6.0 7.3 7.7
Cauca .6 .7 1.0 1.5 2.5 2.3 3.0 3.7 3.6 .6 .8 .8
Cundinarnarca 40.3 42.0 57.1 66.1 85.1 104.4 132.2 139.7 166,9 41.8 36.0 37.1
Huila .8 .8 1.1 1.5 1.9 2.5 3.8 4.5 4.9 .8 .9 1.1
Magdalena 1.1 1.2 1.8 1.2 2.3 3.1 4.6 6.4 7.5 1.1 1.1 1.7
Narino .8 .7 1.0 2.0 2.6 3.7 3.9 5.8 5.9 .8 1.2 1.3
Santander 3.1 2.8 4.1 5.6 8.0 10.8 13.1 15.4 17.8 3.2 3.7 3.9
Norte de Santander 2.2 2.2 2.7 3.2 5.0 5.7 7.9 10.7 11.5 2.3 2.0 2.6
Tolirna 1.7 2.1 3.0 3.8 5.3 7.2 9.9 10.7 12.5 1.8 2.5 2.8
Valle del Cauca 9.7 11.6 17.3 21.1 29.2 38.0 47.1 48.8 54.4 10.1 13.1 12.1
Intendencias and
Comisarias .2 .2 .4 .8 1.2 2.1 2.1 2.7 3.5 .2 .7 .8
Choco - - - - - - - - .3 - - .1

Total 96.5 106.9 147.4 176.5 237.3 290.4 358.7 397.1 450.2 100.0 100.0 100.0

Source: Annual Yearbook of Banco de la Republica.

 TABLE G-8

NATIONAL BUDGET SUMMARY, 1940 - 1949

(millions of pesos)

1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 4
Budget Expenditures
1. Total Expenditures 132.0 113.2 163.2 188.3 186.6 212.5 281.9 368.5 414.6 391.3
2. Debt Retirement 19.5 9.0 65.3 21.8 29.0 26.1 39.4 31.1 45.3 46.8
3. Expenditures, net of (2) 112.5 104.2 97.9 166.5 158.6 186.4 242.5 337.4 369.3 344.5

Budget Receipts
4. Direct Taxes 25.0 25.4 33.2 49.1 55.3 67.1 87.6 130.1 155.7 167.9
5. Indirect Taxes 45.7 55.6 42.6 43.4 51.8 75.9 93.9 123.6 126.7 153.6
6. Other Receipts 13.6 26.9 39.5 48.2 29.1 24.2 49.1 51.3 53.4 62.0
7. Total 84.3 107.9 115.3 140.7 136.2 167.2 230.6 305.0 335.8 383.5

Deficit or Surplus

B. Deficit (-) or Surplus (+)j- -Z8.2 + 3.7 +17.4 -Z5.8 -ZZ.4 -19.2 -11.9 -3Z.4 -33.5 +39.0
9. Net Borrowing (+) or
Retirement (-) +22.5 - 2.8 -26.7 +17.6 + 6.3 + 4.6 + 7.2 +37.4 +19.0 n.a.
10. Other Sources (+) or Uses (-) + 5.7 - .9 + 9.3 + 8.2 +16.1 +14.6 + 4.7 - 5.0 +14.5 n.a.

Changes in National Debt

11. Increase 16.0 23.2 11.2 53.0 15.3 89.9 39.0 45.3 56.5 n.a.
12. Reflected in Budget 22.5 - 2.8 -26.7 17.6 6.3 4.6 7.2 37.4 19.0 n.a.
13. Other - 6.5 26.0 37.9 35.4 9.0 85.3 32.8 7.9 37.5 n.a.

1,2,3,7 - from Contraloria General de la Repu'blica. Interest payrnents for 1949 assumed at 1947 level of
Ps.$ 19.2 million.
4,5,6 - from Estadistica Fiscal y Administrativa; 1948 data from Contraloria; 1949 from Budget Estimate
(Revista del Banco de la Republica).
9 - equals "recursos fiscales" in official Budget Statement, minus debt retirement.
10 - corresponds to "Deficit Presupuestal" in official Budget Statement.
11 - from Informe Financiero del Contralor. Differs from line (1), Table G-9 because above changes are
between December 31 figures, whereas Table G-9 refers to June 30 figures.
12 - equals item (9).
13 - Changes in public debt not reflected in Budget. For 1946, for instance, this item was composed as
follows: Debt issued but not sold: 7.1 million; refunding not included in budget: 6.9 million; debt
issued, with proceeds accruing to special funds outside budget: 12.5 million; debt issued to Depart-
ments and National Railroad for services rendered to National Government: 11.8 million. The fol-
lowing adjustment items are to be added: Debt issued in 1945 but sold in 1946: .175 million; various
accounting deficits not including debt authorized: 5.5 million.
 TABLE G-9

ANNUAL CHANGES IN NATIONAL DEBT HOLDINGS

(millions of pesos)

1940 1941 1942 1943 1944 1945 1946 1947 1941

-41 -42 -43 -44 -45 -46 -47 -48 -48

1. Total National Debt 23.2 27.5 39.0 11.0 41.5 64.4 27.7 59.9 271.0
2. Foreign Debt - .7 1.9 13.9 - .3 - .1 4.4 1.2 - .9 20.1
3. Domestic Debt 23.9 25.6 25.1 11.3 41.6 60.0 26.5 60.8 250.9

Held by:
4. Banco de la Republica 3.1 1.8 33.2 - .8 12.0 6.4 7.9 29.4 93.0

5. Commercial Banks - .1 .1 10.8 - .7 .5 .2 - .9 - .3 9.6

6. Savings Banks 1.3 .3 3.8 5.3 11.0 9.3 13.2 14.6 58.8
7. Other Banks 1.6 - .5 4.9 -1.3 7.2 4.0 12.8 -1.1 27.6
8. Stabilization Fund - 4.9 -1.3 3.2 7.6 7.3 2.6 4.6 28.9

9. Insurance Companies 3.9 1.5 .9 1.2 2.5 1.1 3.8 1.5 16.4

10. Other Non-Banking

Institutions - - 2.5 4.8 1.0 3.5 12.8 - .8 23.8

11. Other 14.1 17.5 -29.-7 - .4 - .2 28.2 -25.7 12.9 - 7.2

Total 23.9 25.6 25.1 11.3 41.6 60.0 26.5 60.8 250.9
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX H

BALANCE OF INTERNATIONAL PAYMENTS

by

Roger V. Anderson

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 C ON T E N T S

Table H-1, Balanee of International Payments . . . . . 1

Notes to Table H-1 . . . . . . . . . . . . . . . . 2

The Nature of the Balance of Payments Statement . . . . 12

 P,AI3LSH-.
alarnce 1r T. terrat ^ral ieayaer.tJ

1938 1q61947 1948 januairy-june 1949

Credit Debit Balance Credit Debit Balance Credit Debit Balance Credit Debit Balance Credit Debit Balance
Current Transactions
Merchandise Trade "o.8 P9.1 - &,3 200.9 230.1 -29.2 254.4 364.0 -109.6 286.3 345.8 -59.5 131.2 143.2 -12.o
Gold Production 18.2 +13.2 15.3 +15.3 13.4 + 13.4 1.1.7 +11.7 b.7 + 6.7
Residents 4.9 - 4.9 6.0 11.3 - 5.9 3.7 13.9 - 10.2 1.6 7.2 - 5.b 1.1 3.2 - 2.1
Governmental Payments (excl. debt) 4.5) 7.9) 7.4) b.4) 5.9)
Government Debt Service ) 10.2) 8.0) 9.4) 3.1)
Private Debt Seravice ) 1.3) 0.4) 0.6) 0.1)
Dividend Payments ) -12.7 4.3)- -23.6 4.5)- -22.5 2.5)- -23.4 2.7)- -24.9
Royalty Paments ) 1.2) 1.7) 1.5) 0.7)
Insurance and Roinsurance Payments ) 0.9) 1.9) 0.9) 0.7)
Other Current Transactions 8.2) 6.1 3.9) 7.9 6.5) 5.4 7.5) 2.5 14.2)

Total Current Transactions 99.0 106.7 - 7.7 228.3 271.7 -43.4 279.4 408.3 -128.9 305.0 381.8 -76.8 141.5 173.8 -32.3

Capital Transactions
Investment by Petroleum Companies 3.8 + 3.8 29.5 +29.5 25.7 + 25.7 22.9 +22.9 2.0 - 2.0
Foreign Exchange Imports for
Otber Industries 8.4 + 8.4 2.6 + 2.b 0.7 + 0.7 0.1 + 0.1
Foreign Exchange imports for
U.S. Agencies 1.1 + 1.1 0.7 + 0.7 -
Foreign Exchange Resulting
from New Borrowing 2.9 ) 0.2 ) 0.2 ) 0.1
Other Capital Movements Involv- ) + 1.0 )- + 2.4 )- - 0.3 )- + 4.5
ing Foreign Exchange 3.7 5.6, 4.b 2.4) 3.0 3.5) 6.2 1.8)

Export-Import Bank Loans _ - 4.8 + 4.8 1.9 + 1.9 4.3 + 4.3 2.1 + 2.1
U.S. Surplus Property Credits _ _ - - 0.8 + 0.8 -
Other Loans not Involving
Foreign Exchar-e - - 0.7 + 0.7 2.0 + 2.0
Other Use of Non-Reimoursatle
Import Licenses

Subscriptions to fliF end Ii3RD _ 3.5 - 3.5 53.5 -53.5

Domestic Currency Subscriptions
to IF &IBRD - - 2.8 + 2.8 41.0 +41.0 - - - -

Increase (+) or Decrease (-) of

Untransferred Foreign Collec-
tions of Conmercial Banks 3.3 + 3.3 4.6 + 4.b 1.8 - 1.8 14.o +14.6
IrncXeUse (-) or Decrease (+) in
Fire iCi, Exchange ild nn-ge of
Cnmmercial Ban.ks 0.5 + 0.5 0.8 - 0.8 0.7 + 0.7 1.1 - 1.1 0.5 + 0.5
Increase (+) or Decrease (-) of
Foreign Iiabilities of
Commercial Banks 0.0 + 0.o 2.7 + 2.7 0.7 - 0.7 2.9 + 2.9 0.4 + 0.4

Increase (-) or Decrease (t)

in Cantral Bank Holdings
of Foreign Exchange 0.8 + 0.8 19.3 +19.3 3.2 + 3.2 4.7 - 4.7 0.7 + 0.7
Increase (-) or Decrease (+) in
Central Bank Holdings of Gold 7.7 - 7.7 12.8 -:,,8 62.0 +62.0 32.2 +32.2 5.0 + 5.0

Total Capital Transactions 5.7 7.7 - 2.0 78.5 24.7 +49.8 148.7 56.0 +92.1 68.2 11.1 +57.1 29.7 3.8 +25.9

Errors and Omissions

Unexplained Official Financing k,L) 1.4 - 1.4 1.2 - 1.2 10.5 +10.5 10,2 +10.2 4.3 + 4.3
Excess of Export Receipts pls
Gold Production Purchased over
Exports plus Gold Prod'n (+) 2.1 + 2.1 16.6 +lb.6 0.6 - 0.b 11.8 -11.8 3.1 - 3.1
Excess of Not Imports over
Exchange Authorizations
for Imports (+) 6.9 + 6.9 18.8 -18.8 31.0 +31.0 28.3 +28.3 7.3 + 7.3
Excess of Exchange Sales over
Authorizations 2.1
2-) + 2.1 2.9 - 2.9 3.8 - 3.8 7.3 - 7.3 2.2 - 2.2

Rounding Errors - - - 0.1 - 0.1 0.3 - 0.3 0.3 + 0.3 0.1 + 0.1

Total Errors and Omissions 11.1 1.4 4 9.7 lo.b 23.0 - b.4 41.5 4.7 +3u.8 36.8 19.1 +19.7 11.7 5.3 + 6.4

Recapitulation
Current Transactions 99.0 106.7 - 7.7 228.3 271.7 -43.4 279.4 408.3 -128.9 305.0 381.8 -7b.8 141.5 173.8 -32.3
Capital Transactions 5.' '.7? - 2.0 7b.5 2b.'7 +49.8 148.7 56.6 +92.1 68.2 11.1 +57.1 29.7 3.8 +25.9
Errors and Onissions 11.1 1.4 + 9.7 16.6 23.0 - 6.4 41.5 4.7 +36.8 38.8 19.1 +19.7 11.7 5.3 + 6.4

Totals 1;5." 115.8 0 323.4 323.4 0 469.6 409.b 0 412.0 .12. 0 182.9 182.9 0
 Notes tc Table H-1

Merchandise Trade

Trade data used are as prepared by Comercio Exterior, Direccion

Nacional de Estadistica, Contraloria General de la Renublica, con-
verted from pesos into U.S. dollars at the following exchange rates
(published by the Banco de la Republica): 1938, Ps.$1.7882 per dol-
lar; 1946, Ps.1.7513 per dollar; 1947, Ps.$1.7545 per dollar; 1948,
Ps.$1.7602 per dollar; 1949, Ps.$1.9590 per dollar. Exports are valued
f.o.b. port of shipment and imports c.i.f. port of entry. Data
include returned imports and returned exports and the re-export of
foreign merchandise. Exports include petroleum but exclude gold.
Data for the second half of 1948 and the first half of 19h9 have been
estimated by Comercio Exterior.

Gold Production

Production in ounces, as published by the Banco de'la Republica,

valued at U.S.$35 an ounce.

Residents

Data were supplied, expressed in U.S. dollars, by the Colombian

Office of Exchange Control. Credits cover exchange purchases by the
Banco de la Republica arising from receipts by Colombian nationals
and foreigners, residents and tourists, for living expenses in the
country, and sums received by diplomatic and consular agents for their
expenses in Colombia. Debits cover authorizations for the sale of
exchange issued by the Office of Exchange Control and include, in
general, expenses of students, tourists, and residents outside
Colombia.

Governmental Payments (excl. debt)

Data are exchange authorizations, expressed in U.S. dollars, as

supplied by the Office of Exchange Control. They cover expenditures
of Colombia's diplomatic and consular services, expenditures for
governmental communications, other expenditures of the national govern-
ment (over half of the total in 1948 and 1949), and expenditures of
departmental and municipal governments.

Government Debt Service

Exchange authorizations, expressed in U.S. dollars, supplied by

the Office of Exchange Control. Data cover gross payments and are not
broken down as between interest, amortization and other payments.

- 2-
 -3-
Private Debt Service

Exchange authorizations, expressed in U.S. dollars, supplied by

the Office of Exchange Control. Data are not broken down as between
interest, amortization and other payments.

Dividend Payments

Exchange authorizations, expressed in U.S. dollars, supplied by

the Office of Exchange Control. Data include dividends of gold mining
companies but do not include those of the petroleum companies which
do not remit dividends out of official exchange reserves. Data include
interest and profits but no return of capital.

Royalty Payments

Exchange authorizations, expressed in U.S. dollars, supplied by

the Office of Exchange Control. Data cover royalties for trade marks,
patents and production techniques, and royalties for motion pictures.

Insurance and Reinsurance Payments

Exchange authorizations, expressed in U.S. dollars, supplied by

the Office of Exchange Control. Made up in 1948 as follows: fire
insurance, 0.1; life insurance, 0.2; reinsurance, 0.2; other insurance
0.4. Some double counting may be involved between these data and mer-
chandise imports valued c.i.f.

Other Current Transactions

Data are expressed in U.S. dollars as supplied by the Office of

Exchange Control. For 1946, 1947, 1948 and 19h9, credits cover ex-
change purchases by the Banco de la Republica arising from amounts
received by agents and representatives of foreign firms for commissions
and expenses, expenses in Colombian harbors by foreign ships, and
payments for professional and other services. Debits cover sales of
industrial and dental gold by the Banco de la Republica and exchange
authorizations for banking correspondent expenses, exporting expenses,
extenditures for Drivate communications, subscriptions to associations,
press services, consular collections of foreign governments, cost
of correspondence studies, and sundry service payments. The debit
item for January-June 1949 includes an adjustment for U.S.$9.461,887 of
1948 exchange authorizations used in June 1949. For 1938, the debit
covers exchange authorizations for all purposes (current and capital)
other than merchandise trade, residents, and governmental payments
(excl. debt).

Investment by Petroleum Companies

Net data shown in the table are based upon the following:
 -4-

(thousands of U.S. dollars)

Jan-June
1938 1946 1947 1948 1949

Exports of crude petroleum _20,747 -23,960 -37,315 -47,875 -29,291

Exports of other petroleum products n.a. n.a. n.a. n.a. n.a.
Inward transfers of foreign exchange +15,000 +33,231 +37,102 +35,068 413,359
Imports of equipment and supplies + 8,700 +16,475 +17,900 +25,600 +11,000
Exports of equipment or its value
in cash n.a. n.a. n.a. n.a. n.a.
Imports of petroleum products
for sale + 863 + 3,740 + 8,006 +12,076 + 4,400
Exchange remittances from Colombia --- --- --- - 2,0c0 - 1,500
+ 3 ,800 +29,500 +25,700 +22,900 - 2,000

Exports of crude oil. These data are published in IT.S. dollars in the
Revista del Banco de la Repnblica. The figure for 1938 was supplied from a
private source.

Exports of other petroleum products. Tropical Oil Company has a dollar

income, in addition to the proceeds of the export of crude oil, from the
sale of oroducts within Colombia, e.g., fuel to vessels calling at Colombian
ports. The Anuario de Comercio Exterior (Direccion Nacional de Estadistica)
shows exports of- lubricating greases and oils, gas oil, diesel oil, fuel
oll, other combustible oils, refined petroleum, and gasoline of U.S.$2,300
in 1938, U.S.$2,200 in 1946 and U.S.$629 in 1947 (based on the exchange
rates given in the first paragraph of this appendix for 1938, 1946 and 1947).

Inward transfers of foreign exchange. For 1946, 1947, 1948 and 1949,
data are in U.S. dollars as supplied by the Office of Exchange Control and
cover exchange purchases by the Banco de la Republica. The figure for 1938
is a very rough estimate.

Imports of equLipment and supplies. Based on data in U.S. dollars from

private sources. All figures except that for 1946 are estimates. Figures
do not take account of additional imports of U.S.$68 million by Shell and
Texaco in the period 1936 to 1948.

Exports of equipment or its value in cash. Since 1945 there has been
some re-export of capital equipment by the oil companies. This is not,
however, believed to have been very large in the periods covered. In
addition, some of the companies may have sold equipment after giving up
exploration and exported the proceeds in cash. The amount involved is
believed to have been small.

Imports of retroleum products for sale. Data cover imports, largely

by Tropical Oil Company, of gasoline and other petroleum products. Data
for '1938 and 1946 are from the Anuario de Comercio Exterior and are con-
verted into U.S. dollars at the rates of Ps.$1.7882 per dollar for 1938
and Ps.$1.7513 per dollar for 1946. Data for 1947, 1948 and 1949 were
supplied in U.S. dollars 'by private sources. (These private data were
used for 19A7 instead of the figure of U.S.$6,205,000 obtained from the
Anuario as it was felt that the latter figure may not cover all petroleum
imports. This suggests that the 1938 and 1946 figjres may be some-
what too small.) The figure used for 1949 is estimated. Data do
not include imports of automobile tires and other non-petroleum
imports by the petroleum companies.

Exchange remittances from Colombia. In 1948 and 1949, Tropical

Oil Company was granted U.S. dollars in exchange for pesos to cover
(partly) gasoline and other imports for sale in Colombia. The
figures.shown are estimates.

Foreign Exchange Imports for Other Induistries

Gross importation of foreign exchange for industries other than

petroleum are expressed in U.S. dollars, as supplied by the Office
of Exchange Control.

Foreign Exchange Imports for U.S. Agencies

Data expressed in U.S. dollars and supplied by the Office of

Exchange Control cover exchange purchases arising from transfers of
funds by such agencies as the Office of Rubber Reserve.

Foreign Exchange Resulting from New Borrowing

Data expressed in U.S. dollars supplied by the Office of Exchange

Control cover exchange purchases and include capital imports resulting
from external debt contracted by the national, departmental and municipal
governments. Borrowing not producing foreign exchange, e.g., loans
from the Export-Import Bank, is not included.

Other Capital Movements Involving Foreign Exchange

Data cover movements involving official exchange only and are

expressed in U.S. dollars as supplied by the Office of Exchange
Control. Credits cover exchange purchases by the Banco de la Republica
arising from return of canital, pirchases of pronerty in Colombia,
inheritances, etc. Debits cover exchange authorizations and include
returns of capital and new funds going abroad only. Note that
governmental and private debt service payments are included in the
current account.

Export-Import Bank Loans

Data were obtained from the Semiannual Reports to Congress of

the Export-Import Bank of Washington. The credits shown represent
amounts disbursed by the Export-Import Bank and by commercial banks
at Export-Import Bank risk. Since these disbursements did not repre-
sent actual movements of foreign exchange to Colombia, they are not
included in the data on exchange receipts shown above. No offsetting
debit (repayment of principal) items are shown since such repayments
would be made by Colombia in foreign exchange and are therefore
presumably included in the exchange authorization data already given,
probably included in government debt service shown under current
transactions. The amount of repayment of principal was as follows
 6-

(U.S. dollars): 19h6, $1,738,000; 19h7, $2,223,000; 19h8, $2,557,00o;

January-June 1949, $1,948,000. There were no disbursements and no
repayments in 1938.

U.S. Surplus Property Credits

In 1947 credits were utilized in connection with the acquisition

of goods located principally in the Canal Zone and Trinidad. No
account is taken of principal repayments: U.S.$159,000 in 1947 paid
in U.S. dollars, since this is presumably accounted for elsewhere
in the balance of payments; U.S.$228,000 in 1948 paid in Colombian
pesos, since the corresponding credit item is presumably not accounted
for elsewhere. Data are from various U.S. Government sources.

Other Loans not Involving Foreign Exchange

Data on these loans were obtained in U.S. dollars from the Informe
Financiero of the Contraloria General de la Republica. The entries
cover loans from George P. Wagner Associates which are believed to
have been used directly to finance purchases abroad and therefore not
included in the data of the Office of Exchange Control. Repayments
of U.S.$657,o00 in 1948 are not shown separately as these are believed
to be included in the exchange control data. It is not known if
similar loans were received in 1938 or in the first half of 1949.

Other Use of Non-Reimbuirsable Import Licenses

A shortcoming of the balance of payments statement as set up is

the lack of data on "other" use of non-reimbursable import licenses.
These licenses have been issued to permit imports of commodities
where payment did not have to be made out of Colombia's exchange
reserves. Issuance of such licenses has been recorded in the follow-
ing amounts: 19146, U.S.$9,601,000; 1947, TJ.S.$59,667,0OO; 1948,
U.S.$32,330,000; January-June 1949, U.S.$8,010,000. Account is taken
elsewhere in the balance of payments of the imports of equipment,
materials and saleable merchandise by the petroleum companies and
of Export-Import Bank loans, U.S. Surplus Property credits and other
loans not involving foreign exchange. These have resulted in capital
credits, offsetting merchandise imports. In addition to this, however,
there have been other imports paid for out of new borrowings, out of
funds held abroad, and out of foreign exchange acquired in the black
market. These should be represented by additional capital credits.
But lack of data has made it impossible to include these credits in
the balance of payments statement.

Subscriptions to IMF and IBRD

The figures shown cover gold, U.S. dollar and domestic currency
subscriptions to the International Monetary Fund and the International
Bank for Reconstruction and Development. Subscriptions to IMP were
 -7-

$5,o0o in 1l96 and $49,995,o00 in 19417 and to IPRD were $3,500,000

in 1946 and $3,500,000 in 1947 (all expressed in U.S. dollars).

Domestic Currency Subscriptions to IMF and IBRD

Of the subscriptions noted in the previous item, the following

were paid in pesos, thus having an offsetting balance of payments
effect: to IMF in 1946 nil and in 1947 U.S.$37,500,000;to IBRD in
1946 U.S.$2,800,000 and in 1947 U.S.,$3500,000. The balances in
each case were paid in gold or U.S. dollars.

Increase or Decrease of Untransferred Foreign Collections of

Commercial Banks

These data are based on the following:

(thousands of U.S. dollars)

Jan.-June
1946 1947 1948 1949

Increase in documents held by

banks for collection for
foreign account 2,676 1,978 -2,481 2,934
Untransferred proceeds of col-
lections for foreign account 600 2,600 700 11,700
Increase of untransferred foreign
collections 3,276 4,578 -1,781 14,634

The first item is based on end of period data in pesos covering amounts
for collection not yet received by the banks ("Cobranzas en Monedas
Extranjeras") as repbrted by the Superintendencia Bancaria in Informe y
Datos Estadisticos presentados por el Supe rintendente Bancario, Dr.
Hector Jose Vargas al Senor Ministro de Hacienda y Credito Publico
1949. These data were converted into U.S. dollars at the rates of
exchange published by the Banco de la Republica and the increase or
decrease obtained. The second item, covering amounts collected in
pesos by the banks but not yet transferred abroad, is based on un-
published information.

Taken as a whole, these data represent an incomplete approach

to the problem of fitting into the balance of payments amounts repre-
senting changes in the arrears of payments for Colombia's imports.
An increase in such arrears, or debts owing abroad, may be regarded
as method of "financing" the imnorts during a given period, i.e., a
balance of payments credit. Complete data on these arrears (i.e.,
applications for exchange authorizations registered with the Office
of Exchange Control) did not become available until April 1949,
when the compulsory registration of debts was introduced. On
June 30, 1949, payments arrears amounted to U.S.$45.3 million, of
which probably more than U.S.$44 million were for merchandise imports.
Prior to April 1949, exchange control data were incomplete, covering
only applications for exchange which had not yet been granted. On
December 1948, these totalled U.S.$3 million.

The data on which the entries in the balance of payments

statement are based are incomplete since they do not show all of
the transactions during any period which were being "financed"
through failure to make payments abroad. Further, they do not appear
to be limited to merchandise payments arrears, as they should be in
view of the use of data on exchange authorizations in connection
with non-merchandise payments.

Increase or Decrease in Foreign Exchange Holdings of Cor,mercial Banks

Based on end of period data in pesos as published by the Banco

de la Republica /L'Activo -- Disponibilidades Inzmediatas -- Correspon-
sales extranjeros (Reservas internacionales)"L7 converted into U.S.
dollars at rates used for Central Bank holdings of gold -- Ps.$1.82
per U.S. dollar for end of 1937; Ps.$1.75 per U.S. dollar for end of
1938, 1945, 1946, and 1947; and Ps.$1.95 per U.S. dollar for end of
1948 and mid-1949.

Increase or Decrease of Foreign Liabilities of Conmercial Banks

Based on end of period data in pesos as published by the Banco

de la Repuiblica covering liabilities both up to and in excess of 30
days ("Total de Exigibilidades por Operaciones Bancarias -- En
moneda extranjera"') converted into U.S. dollars at rates used for
Central Bank holdings of gold. It is not known whether any of the
movements of funds in this and in the immediately preceding item
may also have been covered elsewhere in the capital account.

Increase or Decrease in Central Banking Holdings of Foreign Exchange

Based on end of period data in pesos as published by the Superin-

tendencia Bancaria in Informe y Datos Estadisticos presentados por el
Superintendente Bancario, Dr. Hector Jose Vargas al Senor Ministro
de Hacienda y Credito Publico, 1949 converted into IJ.S. dollars at
the rates used for Central Bank holdings of gold.

Increase or Decrease in Central Bank Holdings of Gold

Based on end of period data in ounces and in pesos as published

by the Superintendencia Bancaria in Informe y Datos Estadisticos
presentados por el Superintendente Bancario, Dr. Hector Jose Vargas
al Senor Ministro de Hacienda y Credito Publico, 1949. Conversion to
U.S. dollars was at the rates of U.S.$35 per ounce or at Ps.$1.82
per dollar for the end of 1937; Ps.$1.75 per dollar for end of 1938,
1945, 1946, and 1947; and Ps.$1.95 per dollar for end of 1948 and
mid-1949. These rates were obtained from the peso prices of gold
published in the same source. The gold subscription to the Inter-
national Monetary Fund has been excluded from the data used.
 - 9

Unexplained Official Financing

Items shown in the table are based upon the following:

(thousands of U.S. dollars)

Jan-June
1938 1946 1947 1946 1949

Decrease in foreign exchange

holdings of commercial banks 496 - 751 694 -1,086 492
Increase in foreign liabilities
of commercial banks 554 2,691 - 736 2,940 363
Decrease in foreign exchange
holdings of Central Bank 842 19,287 3,179 -4,689 653
Decrease in gold holdings of
Central Bank -7,720 -18,781 61,951 32,203 5,015

Decrease in gold and foreign

exchange reserves (as defined) -5,828 2,446 65,088 29,368 6,523

Subscriptions to IMF and IBRD -- 3,505 53,495

Domestic currency to IMF and IBRD -- -2,800 -41,000 -- --
Gold and U.S. dollars subscribed
to IMF and IBRD -- 705 12,495 - --
Exchange sales by Central Bank 88,103 270,735 349 674 324 073 139,818
Reported use of foreign exchange 8,103 71440 36 32 3 139,81
Exchange and gold production pur-
chased by Central Bank -c5,333 -270,155 -286,553 -284,476 -12f,958
Reported excess use of exchange - 7,230 1,285 75,616 39,597 10,860

Decrease in gold and foreign

exchange reserves 5,628 -2,446 -65,088 -20,368 - 6,523

Unexplained official financing - 1,402 -1,161 l,528 10,229 4,337

The figures for changes in foreign exchange holdings and liabilities

and in gold holdings and for subscriptions to IMF and IBRD are those
described above. Data on exchange sales and exchange and gold bought
by the Central Bank were supplied in U.S. dollars by the Office of
Exchange Control.

Excess of Export Receipts plus Gold Production Purchased

over Exports plus Gold Production

Items shown in the table are based on the following:

 (thousands of U.S. dollars)

Jan-June
1938 1946 19147 1948 1949

Exports (trade data) 80,778 200,900 2514358 286,312 131,247

Exports of crude petroleum -20,727 3j,960 -37,315 -h7,875 -29,291
Exports which produce for-
eign exchange 60,031 176,9140 217,0143 238,1437 101,956
Gold production 18,225 15,301 13,1406 11,734 6,694
Exports (excl. petroleum)
plus gold production 78,256 192,241 230,449 250,171 108,650

Exchange receipts from exports 193,323 216,190 227,239 100,531

Gold production purchased 15,529 13,654 11,099 5,010
Exchange from exports plus gold
production purchased 80,3331/208,852 229,844 238,338 105,541

Exports (excl. petroleum)

plus gold production -78,256 -192,2141 -230,l449 -250,171 -108,650

Excess of export receipts

plus gold purchases over
exports plus gold pro- 2/
duction 2,077 16611 - 605 _ 11,833 - 3,109

Data on exports and gold produiction are from sources indicated above.
Data on exchange receipts from exports and on purchase of gold are
as supplied in U.S. dollars by the Office of Exchange Control.

Excess of Net Imports over Exchange Authorizations for Imports

These items are based on the following:

1/ Exchange receipts from all transactions plus gold production

purchased minus rough estimate for inward transfers of for-
eign exchange by the petroleum companies.

2/ Excess of receipts from all transactions plus gold production

purchased (excluding rough estimate of inward transfers of
cash by petroleum companies) over exports plus gold production.
 (thousands of U.S. dollars)

Jan-June
1938 1946 1947 1948 1949

Import of petroleum products

for sale 863 3,740 8,006 12,076 4,400
Exchange remittances by
petroleum companies _ -- 000 -1,500
863 3,740 8,006 10,076 2,900
Imports of equipment and sup-
plies by petroleum companies 8,700 16,475 17,900 25,600 1l,ooo
Export-Import Bank loans - 4,817 1,925 4,320 2,o54
U.S. Surplus Property credits -- -- 796 -
Other loans not involving
foreign exchange -- 657 1,971
Other use of non-reimbursable
import licenses
Increase of untransferred for-
eign collections of commercial
banks 3,276 4,578 -1,781 14,634
Imports not directly affect-
ing foreign exchange re-
sources 9,563 28,308 33,862 40,18 30,588

Imports (trade data) 89,057 230,139 363,992 345,794 143,209

Exchange authorization for
imports -72,604 -220,6l0 -299,133 -277,290 -105,315
Excess of imports over
authorizations 16,453 9,529 64,859 68,504 37,894
Imports not directly affect-
ing foreign exchange
resources -9,563 -28,308 -33,862 -40,186 -30,588
Excess of net imports over
exchange authorization
for imports 6,890 -18,779 30,997 28,318 7,306

Data on exchange authorizations for imoorts are as supplied in U.S.

dollars by the Office of Exchange Control. Other data are from
sources indicated previously. It is to be noted that if data on
"other use of non-reimbursable import licenses" were available, the
"excess of net -imports over exchange authorizations for imports"
would be reduced. Complete data on changes in the arrears of pay-
ments for Colombia's imports would also affect the results.

Excess of Exchange Sales over Authorizations

In each of the periods considered, except 1938, the amount of
exchange sales has exceeded authorizations granted for the purchase
 - 12 -

of exchange. The items in the table were arrived at as follows:

(thousands of U.S. dollars)

Jan-June
1938 1946 1947 1948 19 9

Foreign exchange sales

by Central Bank 88,103 270,735 349,674 32h,073 139,818
Exchange authorizations
issued -902235 -267,862 -3415864 -316,815 -137,625
Excess of exchange sales
over authorizations - 2,132 2t873 3,810 7,258 2,193

Both sets of basic data were supplied in U.S. dollars by the Office of
Exchange Control. Exchange authorizations for January-June 19h9 in-
clude an adjustment for U.S.$9,461,887 issued in 1948 and used in
June 1949. While this amount may also be included in the 1948 figure,
it is not known to what transactions it refers.

The Nature of the Balance of Payments Statement

While the foregoing balance of payments statement presents a

meaningful picture of Colombia's international transactions, it is
far from ideal and various factors need to be borne in mind in its
interpretation.

In the first place, the statement is neither consistently a

transactions account nor a payments account. As is indicated by
the above notes, both transactions and payments are represented.
And in some cases the items relate to something in between - namely,
exchange authorizations or licenses to purchase exchange. Items
representing transactions are merchandise trade (exports and imports),
gold production, Export-Import Bank loans, U.S. Surplus Property cre-
dits, other loans not involving foreign exchange, and changes in
untransferred foreign collections of commercial banks. Payments items
are credits on account of residents, other current transactions, for-
eign exchange imports for other (i.e., non-petroleum) industries,
foreign exchange imports for U.S. agencies, foreign exchange result-
ing from new borrowing, and other capital movements involving foreign
exchange, as well as all items relating to subscriptions to the IMF
and the IBRD, changes in foreign exchange holdings and liabilities
of commercial banks, and changes in foreign exchange and gold holdings
of the Central Bank. Items representing exchange authorizations are
debits covering residents, government payments (excluding debt),
government debt service, private debt service, dividend payments,
royalty payments, insurance and reinsurance payments, other current
transactions, and other capital movements involving foreign exchange.
 - 13 -

In addition, the entries for investment by the petroleum companies

are mixed items as they cover both transactions and payments --
in some cases estimated.

The material available, however, permits a breakdown and

"explanation" of the errors and omissions remaining in the balance
of payments. Fouir items constitute this breakdown. The first
(unexplained official financing) arises because the change in gold
and foreign exchange reserves departs from the reported net use of
foreign exchange. The second (excess of export receipts plus gold
production purchased over exports plus gold production) has the
effect of converting transactions credits into payments, insofar as
that conversion was not made by the previous item. The third
(excess of net imports over exchange authorizations for imports)
converts import transactions into exchange authorizations. The
fourth (excess of exchange sales over exchange authorizations) has
the effect of converting exchange authorizations into exchange sales.
When all this has been done, the balance of payments has been reduced
entirely to a payments basis and the unexplained discrepancy in the
payments data (unexplained official financing) has been removed.
Therefore, except for small rounding errors, the balance of payments
is of necessity in balance.

The use of exchange authorization data instead of data on trans-

actions or payments may appear to be a considerable shortcoming of
the balance of payments statement. This would be especially true if
there were a substantial lag between exchange authorizations and
exchange payments. But since this lag appears generally to be only
about one to three weeks, the use of authorization data appears to be
more legitimate. Further, neither transactions nor payments data
are available for most of the debit items and authorizations data must
be used if detail is to be achieved. At the same time, the relatively
small size of the "excess of exchange sales over authorizations" items
under errors and omissions suggests that not much is lost by using
authorizations.

The shortcoming introduced into the balance of payments statement

by the lack of data on "other" use of non-reimbursable import licenses
has been considered in the foregoing notes. If these capital credits
could be shown, they would presumably result in a reduction for 1947,
1948 and J949 of one of the important items contributing to total errors
and omissions (excess of net imports over exchange authorizations for
imports). Also noted above was the incomplete nature of the basic data
on the arrears of payments for imports. The capital credits (or debits)
introduced to cover increases (or decreases) in these arrears are
based upon incomplete data.

Except for merchandise trade which may be legally recorded but

financed through the black market, contraband and black market trans-
actions are not reflected in the balance of payments statement. Thus,
the statement considerably understates the volume of international
 - 14 -

transactions by failing to incluide these illicit operations. But

sufficient detail is not available to enable accurate estimates
of contraband and black market operations, so that the balance of
payments as presented coavers officially recorded transactions only.
This exclusion of black market transactions, together with the
presumable incompleteness of the data, explains why U.S. data on
liabilities of U.S. banks to Colombians have not been used to esti-
mate changes in private balances abroad. Similarly, the balance
of payments statement has been allowed to show a decline in tourists
receipts and expenditures (in the "residents" item). The reasons
for these declines is presumably the decline in the volume of tourist
funds passing through official channels and the increasing use of
the black market.

Other transactions of a perfectly legal character may have been

omitted from the balance of payments statement or, alternatively,
may have been hidden and thus rendered unrecognizable. The reasons
for such apparent omissions are (1) the lack of complete information
and (2) the desirability of avoiding double counting. Since it
proved impossible to determine whether or not certain transactions
were or were not included in the data supplied by the Office of
Exchange Control which have been taken into account, it was felt
desirable not to introduce (or reintroduice) them into the statement.
As was noted in the foregoing notes, some double counting may have
been introduced by the separate considieration of insurance payments
and of the two items covering changes in commercial bank foreign
exchange holdings and foreign liabilities. Elsewhere, however, data
from souirces other than the Office of Exchange Control have not been
used except where it seemed clear that no double counting could
result.

Perhaps the most significant of these transactions which have

been omitted, or hidden, are those relating to Flota Mercante Gran
Colombiana, a shipping company which commenced operations in 194a7
with capital subscribed by Colombia, Venezuela and Ecuador. Cash
receipts from Venezuela and Ecuador in connection with the establish-
ment of this company are reported to have been as followss

Year Venezuela Ecuador Total

1946 U.S.$ 4,o5s,304 US.$ 4oo,ooo U.S.$ 4,458,3o4

1947 U.S.$ 300,000 U.S.$ 300,000
1947 m.C.$ 437,50o M.C.$ 437,5oo
1949 U.S.$ 1,810O,75 U.S.$ 175,000 U.S.$ 1,985,075
1949 _M.C.$ 393,750 M.C.$ 393,750

IJ.S.$ 5,868,379 TJ.S.$ 875,000 U.S.$ 6,74s3,379

M.C.$ 831,250 M.C.$ 831,250

Up to 1947 these amounts were denosited with the Banco de la Repub-

lica; subsequently they were denosited in banks abroad. "MC" stands
for Nmoneda corriente" -- presumably Colombian pesos. However, it
has not been possible to find out if these amounts have been in-
cluded anywhere in the data of the Office of Exchange Control which
have been used in the statement. Nor is it known how much of the
194 9 figures (supplied in October 1949) refer to the first half of
the year.

Other problems in connection with Gran Colombiana relate to

whether or not something should be deducted from the relatively
large 1946 capital debits (other capital movements involving for-
eign exchange) to cover Colombia's foreign exchange subscription to
the Company. But again, it is not known whether or not the sub-
scriDtion (U.S.$1.l million) has been included in this item. The
value of ships purchased by Gran Colombiana is preswuably not in-
cluded in merchandise imports. But data on such pirchases are very
incomnlete. Further, a (cuirrent) transportation account might have
been estimated on the basis of Gran Colombiana's freight receipts and
expenses. Rut the uncertain relation of these to the items already
included introduices the danger of double counting. Additional problems
in connection with the operations of Gran Colombiana might also be
raised.

It may be that Gran Colombiana is allowed to operate its own

foreign exchange accounts and does not have to surrender exchange to
the Colombian authorities. If this were true, the absence of the
company's foreign exchange transactions from the balance of payments
statement and the treatment of it as a non-resident entity woiild have
the virtue of consistency -- presumably greater consistency than the
inclusion in the statement of that Portion of the company's trans-
actions on which data are available.

The small payments and receipts under Colombia's bilateral agree-

ments with certain European countries and with Ecuador have also not
been shown because of the possibility of double counting.

It is finally to be noted that the data for 1938 are considerably

less complete than those for the postwar years. The "other current
transactions" debit covers exchange authorizations for all purposes
(current and capital) other than merchandise trade, residents and non-
debt governmental payments. More important is the fact that, except
for trade, gold production, and changes in exchange reserves, there
is a complete lack of data on current and capital credits, although a
very rough estimate has been made for inward transfers of foreign ex-
change by the petroleum companies. This shortcoming of the data is
reflected in the errors and omissions item.
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX I

MULTIPLE RATES OF EXCHANGE, MID-1949

by

Roger V. Anderson

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 In Chapter XV of the Comorehensive Report,i/ it is stated that in
mid_194 9 "It was possible to distinguish at least twelve different
major rates on different types of transactions which ranged from Ps.$1.95
to Ps.$X86 per U.S. dollar." These various effective rates, and the
transactions to which they applied, are set forth in the following tabu-
lation. In addition, the par value of the peso and the approximate
black market rate are shown.

The tabulation does not, however, showr all exchange rates. As

noted below, special rates not shown applied to imports, etc., of the
Caja de Credito Agrario, Industrial y Minero. Also, the proceeds of
gold production were liquidated at various rates. Fifteen percent of
the dollar value of production was liquidated at Ps.$1.564 per U.S.
dollar for small producers, or at Ps.$1. 4 4 per U.S. dollar for large
producers. The remaining 85 percent of the value was received by the
producers in exchange certificates and, in the case of foreign producers,
partly in "titulos" (at the official rate) which were applicable as
dollars for remittances abroad. Also not shown in the tabulation are
the certificate rates that would be obtained if the price of sterling
certificates were put on a U.S. dollar basis at the official sterling-
dollar exchange rate.

The exchange rates are shown as Colombian pesos per U.S. dollar:

1. Par value agreed with International Monetary Fund 1.94998

2. Official buying rate 1.950

applied to proceeds of major exports (those not

soecifically given access to the exchange cer-
tificate market) and to foreign exchange destined
for use in the petroleum industry; applicable to
the payment of indemnities covered by insurance,
derived from earnings on Colombian caDital in-
vested abroad, derived from the importation of
capital, and derived from the payment of any
insurance.

3. Official selling rate without tax 1.96o

applied to payments for the service on national

government, departmental and municipal debt;
W ments for official requirements of national,
departmental and municipal governments (except
that imports, etc., of the Caja de Credito
Agrario, Industrial y Minero were exempt only
from 1%); -oayments for indispensable technical

1/ See p.325.
 - 2 -

services by Flota Mercante Gran Colombiana;

students' expenses (except as specified in
items 5 and 13 below); consular expenses;
certain remittances to Colombian diplomats;
purclase of government bonds or bills; for-
eign taxes incurred in Colombia; and investments
abroad in cases where return of capital was
guaranteed.

4. Official selling rate plus 3% (of 1.95) tax 2.019

applied to payments for banking services

(except for expenses of auditing and super-
vision).

5. Official selling rate plus v4 (of 1.95) tax 2.038

applied to payments for dividends and earnings

on foreign capital; for royalties from trade
marks, patents, etc.; for insurance and rein-
surance premiums; for indispensable technical
services (except as specified in item 3 above);
for capital repayments; for correspondence courses
in physical culture and other non-indispensable
studies; for non-indispensable services; for re-
payments of overcharges for exports; and for
export expenses.

6. Official selling rate plus 10% (of 1.95) tax 2.155

applied to payments for goods in Group I (and

freight thereon) imported with licenses
specifying official exchange; also applied to
payments for expenses of auditing and super-
vision of banks; for motion picture royalties;
for subscriptions to periodicals; and for sub-
scriptions to certain associations.

7. Official selling rate plus 16% (of 1.95) tax 2.272

applied to payments for goods in Group II (and

freight thereon) imported with licenses speci-
fying official exchange.

8. Official selling rate plus 30% (of 1.95) tax 2.545

applied to payments for goods in Group III (and

freight thereon) imported with licenses speci-
fying official exchange.
 - 3

9. Certificate rate without tax 3.20 (approx)2/

a-plied to part of the nroceeds of gold

production (see text above); applied to
proceeds of minor exports (those sneci-
fically given access to the certificate
market); and to receipts from invisibles
not specified in item 2 above; applied
to payrnents for certain remittances of
foreign dliplomats.

10. Certificate rate plus 10% (of 1.95) tax 3.-40 (a9mrox)2/

applied to payments for goods in Group I

(and freight thereon) imported with
licenses specifying exchange certificates.

11. Certificate rate plus 16% (of 1.95) tax 3.51 (a-:prox)2/

applied to payments for goods in Grouo II

(and freight thereon) imported with
licenses specifying exchange certificates.

12. Certificate rate plus 30% (of 1.95) tax 3.?9 (approx)YJ

applied to payments for goods in Group III

(and freight thereon) imported with li-
censes specifying exchange certificates.

13. Certificate rate plus 34% (of 1.95) tax 3.86 (ao-rox)-I

applied to payments for courses in

aviation in excess of limits at which
rate of 1.96 applied; travel expenses
of tourists, emigrants, those abroad
for reasons of health, and businesses;
monthly allowances for tourists and other
Colombian residents; medical treatment;
and international passages.

2/ The rate in the market in which exchange certificates are bought

and sold varies from day to day. In the period May to September
1949, the price of U.S. dollar exchange certificates fluctuated
between Ps.$3.08 and Ps.$3.36 per U.S. dollar, and all certificate
rates noted above are based upon a rate without tax of Ps.$3.20.
During October 1949, more violent fluctuations took place and
quotations ranging between Ps.$3.50 and Ps.$2.85 per U.S. dollar
were reported. On February 3, 1950, dollar exchange certificates
were reported as having been sold at the rate of Ps.$2.98 per
U.S. dollar.
 - 4

14. Black market rate 3.40 (approx)>/

applied in the case of all illegal inter-

national tran6actions, including contra-
band exnorts and imports, sale and purchase
of exchange by foreign tourists in Colombia
and Colombian tourists going abroad, and
remittances.

3/ In the black market at any given time, there is not one rate
but many, with the exact rate depending on the type of dealers
and the bargaining strength of buyer and seller. 'While occasions
have been reported when black market rates were below the cer-
tificate rate, a rate frequently cited in mid-1949 was about 20
centavos per U.S. dollar above the certificate rate. Therefore,
the rate of Ps,$ 3.40 per U.S. dollar has been used in the above
tabulation.
 THE BASIS OF

A DEVELOPMENT PROGRAM FOR COLOMBIA

APPENDIX J

STATISTICAL BASES FOR TRENDS AND PROJECTIONS

by

Jacques Torfs

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 C 0N TE N T S

Page
A. Fundamental Principles . . . . . . . . . . . . . . . . . . 1

B. Population and Manpower . . . . . . . . . . . . . . . . . 1

Population - Total and by Areas . . . . . . . . . . . 2

Rate of Growth and Other Vital Rates . . . . . . . . . 3
Rural and Urban Population - Migration . . . . . . . . 4
Manpower and Employment in Equivalent Full-time
Workers . . . . . . . . . . . . . . . . . 5
Changes in the Pattern of Employment . . . . . . . . . 6
Projection of Trends in Employment . . . . . . . . . . 7

C. Productivity ....................... b

Trends in Productivity . . . . . . ... . . . . . . . . 9

D. Changes in Price Level ......... ... ... .. . 11

Agricultural Prices ........ .. ... .. . 12

E. Other Trends Used in Projection Models . . . . . . . . . . 12

Projection of Capital Formation . . . . . . . . . . . 13

T A B L E S

J-1 Population statistics by departments, 1938-55

J-2 Occupational distribution of labor force by sex, 1938
J-3 Occupational distribution of full-time and part-time
workers, 1938
J-4 Distribution of the labor force, 1939-47
J-5 Model projection of national income, 1947-53; employment,
productivity and price indices, 1939-53
J-6 Model projection of gross national product, 1947-50-53
J-7 Model projection of the Colombian budget, 1947, 1950, 1953
J-d Model projection of national accounts, 1947, 1950, 1953
J-9 Projected income and expenditures of Colombian economy, 1953
 The purpose of this appendix is to describe the bases on which
were projected the models of national accounts for 1950 and 1953,
presented in Chapter XXX of the Comprehensive Report.

A. Fundamental Principles

For any period, the value of the national income is equal to the
number of units of goods and services produced, multiolied by the value
of these units. The number of units of goods produced depends upon
the number of workers and machines and upon the equipment available
and operating during the period. The value of all units is equal to
the total income accruing to the factors of production for their out-
put.

Changes in national income will occur from one period to another

when these elements vary. The amount of manpower may increase; labor
may work more hours per day, and the mcney wages and profits may fluc-
tuate. Finally, the amount of equipment, machines and capital applied
to production may increase, and this may have the double effect of in-
creasing the volume of production as the productivity of labor increases
and of decreasing unit prices, because a similar reward to a factor of
production, per hour, will yield more goods.

If, in a given country, increases in factor incomes are strictly

proportionate to the increase in productivity (a condition of stable
price levels), fluctuations of national income will only result from
changes in the number of manhours, or changes in per capita productiv-
ity.

Similar statements can be made about national expenditure items.

The level of gross capital formation or consumers' expenditures will
fluctuate according to the demand for capital or consumerst goods,
and their unit prices. The level of government expenditures on cur-
rent goods and services will depend upon the physical size of the
demand, and the price paid for the goods and services. The other
items of national accounts, which are in fact functions of these three
very important aggregates, also may be interpreted in terms of output
produced or demanded, and in terms of unit prices. The behavior of
these major factors of accounts, namely manpower, productivity and
prices, will therefore be the object of our analysis. The behavior
of these variables in the future is in great part determined by their
past history. While in Appendix A we estimated the behavior of national
accounts in the past, we have not attempted to interpret them in terms
of these variables. We must, therefore, consider past trends in man-
power productivity and prices in this appendix.

B. Population and Manpower

.The growth of requirements and production in Colombia in great

part is the result of the increase in population. It is therefore
most important to ascertain the facts concerning that increases.
Unfortunately, Colombian statistics dealing with population cannot
be considered completely reliable.

Population - Total and by Areas

The last census, taken in 1938, is deemed to be the most accu-

rate. However, it does not meet all the requirements of a thorough
scientific investigation. According to this census, 8,701,816 people
were living in Colombia on June 30, 1938. Of this number, 84407,900
were living in the fourteen departments existing at the time-/ -- the
most populated were Antioquia and Cundinamarca with 1,188,000 and
1,174,000 inhabitants, respectively. These base-year figures seem
more adequate than other data recorded in the census, such as the dis-
tribution of people by departments, by urban and rural zones, by
climatic zones, by occupation, by sex, and by age groups. All of them,
however, provide us with fairly good tools for the study of economic
problems in 1938, but when it comes to determining the size and the
distribution of the population at the present time or what it is
likely to be in a few years, we meet considerable difficulties.

The yearly rate of growth of population in political subdivisions

and functional groups has been studied for the period 1938-1939. Find-
ings were checked against data provided by previous censuses and trends
were obtained, which since then have been utilized in all official pub-
lications presenting estimates on the size and distribution of popula-
tion. Although these projections, published yearly in the Anuario
General de Estadistica, are studied and modified from time to time,
the figures provided seem to move further and further from an accurate
description of current demographic conditions. Also, official statis-
tics on oopulation do not correspond to official data on the rate of
population growth, as shown below:

1946 Population Official 1946 Population Corresponding

if official rates rate of reported official- Rate of
of growth are population ly in Anuario Gen- Population
applied to 1938 growth eral de Estadis- Growth
data per year tica
Total
population 10,219,400 2.03% 10,318,000 2.15%

Departmental 9,936,000 2.11% 10,022,400 2.22%

If either of the two sets of rates indicated above is used for pro-
jections of 1938 population figures, the residual figure left after sub-
tracting departmental from total population, which purports to represent
the population in comisarias and intendencias, shrinks or remains practical-
ly stationary:

The Choco became a department in 1948.

 -3-

PoDulation in Intendencias and Comisarias

Calculated on Indicated Rates of Growth

2.03% and 2.11% 2.15% and 2.22%

(thousands)

1938 293.9 293.9

1946 282.9 293.7

DecreaEe 11.0 0.2

It is most unlikely that this actually did occur. Due to the impos-
sibility of making adequate snot checks and in order to maintain a
certain consistency between the figures used in this study and those
used by Colombian authorities, we have introduced no modification in
the description of the numrer and pattern of population as presented
in official statistics. We have tentatively assumed that the rates
of growth in population were 2.15 percent for Colcmbia as a whole and
2.22 oercent for the departments. Also, in order to simplify calcu-
lations, it was assumed that the population of intendencias, comisarias
and territories had remained constant from 1938 to 1946, at a level of
about 293,000 people as reported officially, even though it is probable
that the population of Putumayo, Yeta, Goajira and Arauca is increasing
at least as fast as the rest of the population of Colombia, since popu-
lation pressures cause a considerable nigration to these areas every
year. However, the total number of peonle living in the intendencias
and comisarias is small and almost irrelevant for purooses of economic
planning.

Rate of Growth and Other Vital Rates

Whether the rates of 2.03 percent or 2.15 percent are used to

express the growth of Colombian population, they conflict with statis-
tics on birth and death rates, of which they should represent the
difference. The official statistics report for 1946 a birth rate of
33 percent and a death rate of 15.6 percent. The difference, which
should be equal to the geometric rate of pooulaticn increase, is 17.4
percent. However, according to the Anales de Economia y de Estadis-
tica, the Direcciones Seccionales de Estadistica report the following
data for urban centers:

Birth RateW/ Death Pate.YI Growth

(Dercentage)
D:anizales 38.3 19.3 18.9
Barranquilla 43.1 14.8 28.3
Bogota 31.4 19.6 11.8
Medellin 41.7 20.4 21.3

/ Data for selected years between 1940 end 1947.

Although the accuracy of the reported death rates for Barranquilla is
questionable, these urban statistics are clearly more reliable thar.
birth and death rates reported officially for the whole of the country.
Also, there is no reason to believe that the inclusion of statistics for
rural comm,unities would substantially reduce either death or birth
rates, since health and income standards are, if anything, higher in
cities than in the country. Averaging these figures, we find that a
rate of growth of 2.15 percent can be reasonably assumed. Table J-1
projects the population of Colombia on this basis.

Rural and Urban Population - Migration

The distribution of population in 1938 was:

(cOO's)
Total 8,701.8 100%
Urban 2,692 7 30p
Rural 6,009.12 70%

The Anuario General de Estadistica for 1946 does not show any
changes in these proportions eight years after the census. It reports
the following distribution:

1938 1946
(C0O's) % of Total (000's) % of Total
Total 8,701.8 100.00 10,318.4 100.0
Urban 2,533.7 29.08 3,089.6 29.1
Rural 6,168.1 70.92 7,228.8 70.9

This, of course, is clearly impossible, because we know that a consid-

erable migration to the urban centers did take place. Also, fast
growth of important urban centers is indicated in the same Anuario, re-
portedly on the basis of extensive spot checks in these centers. The
rate of growth of population in Bogota, for example, was 4.3 percent
annually.

Taking into consideration that smaller cities may have grown at

a slower pace than important centers, we have concluded that the urban
population on the average may have increased at the rate of 2.8 to 3
percent per year in the past decade. This is consistent with
scattered information on the migration which took place, and implies
that population in the rural sector only grew at a rate of 1.7 to 1.8
percent per year. If these trends are maintained, population distribution

3/ As reported in Anuario General de Estadistica. 1939. Only that

part of the population living outside of the center of the municipalities
is considered rural in our computation. These centers are here
assumed to be urban in character. The breakdown given by the Colombian
census is Urban - 2,535.7; Rural - 6,166.1.
 - 5-

may be projected as follows:

1938 1947 1955 -

OOO s % of Total 000ts % of Total 000's % of Total

Total 8,701.8 l00% 10,540 100.0% 12,499 100.05%

Rural 6,C09.1 70% 7,040 66.6% 8,092 64.8%
Urban 2,692.7 30% 3,500 33.3% 4,407 35.2%

Manpower and Employment in Equivalent Full-time Workers

The only official records on the distribution of the labor

force date back to the census of 1938, as summarized in Table J-2.
According to this table, more than half of the population was
actively engaged in the production of goods or services. This high
ratio, however, is mainly due to the fact that part-time workers --
housewives, etc. -- were included in the enumeration and no attempt
was made to separate the number of people actually working full-time.
In order to obtain a pattern of distribution of labor which would be
meaningful in terms of national accounts, we have estimated (a) Lhe
equivalent of the labor force reported for 1938 in terms of full-time
workers, (b) the changes in pattern on the basis of scattered informa-
tion.

Agricultural population was 6,009,100 in 1938; employment,

according to the census, was 3,321,000. From studies of the mode of
living of the agricultural workers, it can be concluded that on the
average, rural families are composed of six people and that each
equivalent full-time worker supports three other people. It is there-
fore believed that there were one million heads of rural families in
1938 who presumably were employed full-time. The balance of 2,321,000
rural workers were earning the income of 500,000 full-time workers and
thus each of them was performing 21 percent of the tasks of an equiva-
lent full-time worker. Urban population was 2,692,700. The census,
however, shows 66c,000 men and 506,000 women employed gainfully in
urban activities.

These figures must be overstated, for most standard of living

studies indicate that heads of urban families each support less than
three people. However, these standard of living studies do not delve
into the conditions of domestic servants who live independently of any
family group. Also, it has been repeatedly stated that the employment
figures shown for handicrafts in the census have been overstated through
double counting. Table J-3 attempts to reconcile the official figures
reported in Table J-2 with data provided by production and standard of
living statistics, on the following assumptions:

(a) All males enumerated in the census as employed in mining,

transport, trade, finance, health and public services, public adminis-
tration, and liberal professions worked full-time.
 -6-

(b) Females enumerated in transnort, services, administration,

and liberal orofessions were employed full-time.

(c) Females emoloyed in mining worked part-time. Their work was

equivalent to 20 percent of full-time work.

(d) Cf the 440,000 reported engaged in manufact ing, 95,000

were working full-time in fully organized industries. Of the bal-
ance, only 26 percent were engaged full-time in handicrafts. Others
reported as working in manufacturing (which may include people employed
as part-time workers in other occupations) are assumed to work part-
time only.

(e) Of the 86,000 employed in construction, 20,000 of the men

are believed to be children, helping part-time. The 2,000 wcmen also
are assumed to work part-time.

According to this estimate, the 4,488,000 actively engaged in

production were equivalent to 2,360,000 full-time workers. Cn the
average, each equivalent full-time worker was supoorting 3.6 persons,
including himself; in urban communities, he supported three people.

Changes in the Pattern of Employment

Tatle J-4 estimates the changes believed to have taken place in

the distribution of the labor force between 1939 -- the first year
for which national aggregates were estimated by the Mission -- and
1947. The table was based on the following facts and assumotions:

(a) The labor force grew proportionately to the ponulation (the

yearly rate of growth is 2.15 percent for the total -- 1.7 to 1.8 per-
cent for the agricultural sector, 2.7 to 2.9 percent for the urban
sector).

(b) Employment in mining increased little, if any (this is con-

firmed by statements of mining and petroleum enterprises).

(c) Industrial employment grew at a rate of 5 to 6 percent per

year (as evidenced by the Industrial Census of 1944/45 and also
trends in production and Dopulation in large cities).

(d) Employment in public services, handicrafts and others grew

approximately in proportion to the secular trend of growth of popu-
lation. Employment in domestic services and liberal professions grew
proportionately to urban employment since the expansion of these
sprvices followed closely the expansion of towns, where wealth is con-
centrated. Handicrafts, on the other hand, lag behind other urban
trades because it is known that new families are not entering into the
trade. Public services are in a slightly diCferent category. Availa-
bility of public services has increased but, as mentioned repeatedly
in the Peport, it lags behind the growth of towns.

4/ See Industrial Census of 1946 and later trends.

 - 7 -

(e) Figures on emoloyment in government are provided by official

statistics.

(f) Data on fuel consumption show that employment in road and

air transport must have climbed steeply, but a very slow increase in
the labor force in railroad and river transport has taken place. The
rate of increase indicated (4 to 5 percent per year) expresses a weight-
ing of these two trends.

(g) Increases in output in construction are known, and the rate

of growth in employment indicated (almost 4 percent per year) takes
into account the difficulties involved in increasing productivity rapid-
!Y.

(h) The rate of growth in commerce is derived from studies of

the evolution of value added by this activity. Important increases
in productivity did not take place but, on the other hand, services
rendered more than kept pace with urban growth.

Projection of Trends in Employment

Our estimates of occupational distribution in 1947 are admittedly

tentative. They have the merit of being coherent wiith each other,
with national income estimates, and with scattered information which,
when collected and organized, forms a clear pattern. If used as indi-
cators of orders of magnitude and trends, they are sufficiently
plausible to serve as bases for a model projection of national accounts
as shown in Table J-5,] especially since this projection is mainly a
demonstration of techniques which could be used in planning if statis-
tics vwere adequate.

Below are summarized the shifts in trends indicated in Table J-5,

which are likely to have taken place from 1947 to 1950, and are likely
to occur between 1950 and 1953 if recomnendations made by the Mission
are reasonably implemented.

Approximate Yearly Geometrical Rate of Growth in Employment

1939-1947 1947-1950 1950-1953

(Percentage)

Agriculture 1.7 - 1 8 1.65 1.5

Industry 4.5 - 5.0 5.5 5.6
Construction 3.5 3.5 4.9
Government 0.4 6.3 6.3
Cthers (Urban) 2.7 - 2.9 1.9 1.5
Total Urban 2.7 - 2.9 2.9 3.1
Total Country 2.15 2.15 2.15

Also appears as Table 161, p.6 02, Comprehensive Report.

Changes assumed between 1947 and 1950 are not major: industrial
activity is known to have reached an all-time high in this neriod,
are the Government reinforced heavily both the police and the armed
forces after the events of April 1948. It is also known that the
manpower needed for these expansions came in part from the least
attractive fields of activity, such as handicrafts, small trades
and domestic services. An acute shortage of domestic servants was
particularly noticeable in 1949. If the major parts of the Program
cf the Vission are carried out and if incentives are used to encour-
age employment shift; further changes in pattern should be posited
after 1953.

Even though the investment program suggested by the Mission en-

tails a relative decrease in the size of some capital formation
activities compared with 1947, it is probable that the absolute size
of capital formation will grow from 1951 to 1955 and that the first
manifestation will be the need for more workers in the construction
trade. An expected increase from 3.5 percent to 4.8 percent in the
annual rate of growth of employment in construction expresses this
shift.

The great number of administrative reforms suggested by the

kission and the implementation of the public health and education
programs, among others, will call for more civil servants. It is
hoped that increases in staff will at least match the substantial in-
crease in government employment which occurred between 1947 and 1950.

Employment in industries will probably climb steadily. It is

estimated that the rate of growth of the agricultural labor force will
decrease to about 1.5 percent annually in the years 1950-1953, as
against 1.7 to 1.8 percent in 1939 to 1947. This would render possible
an increase in non-agricultural employment of about 3.0 to 3.2 percent
annually. Since increased efforts are probable in construction and
industries, the rate of growth of employment in handicrafts and domes-
tic services will undoubtedly decline.

C. Productivitv

The failure of Colombia to Drovide a high degree of technical

training for its peoDle and to provide them with adequate facilities
for health and nutrition are some of the important reasons for low
productivity and income levels. In certain activities, such as the
growing of coffee, even considerable increases in the availability ard
use of machines, and in the education and heelth of coffee farmers,
can only increase outDut slowly. Productivity is limited by the very
nature of the coffee tree, which in Colombia is mainly grown on
slopes and cannot, in general, be picked mechanically. Cn the other
hand, Colombia has already reached a remarkably high level of produc-
tivity in many industrial processes. Wany industries, in fact, afford
 - 9-

such rapid improvements that productivity can be lifted in a fev years

to maximal levels.

The transference of one labor unit from coffee growing to indus-

tries, for example, may in a relatively short time result in real up-
surges in the per capita productivity, both absolute and relative, of
such unit. This explains in great part why Colombian income increased
by approximately 3 percent per year between 1939 to 1947, while neither
capital inflow nor improvements in education, training or health seemed
to warrant this rate of increase. Population pressures on land caused
a movement of people to the towns -- a transfer of manpower to activities
of comparatively high productivity.

In addition to the factors mentioned, the difficulties of the

Colombian terrain play no mean role in keeping overall efficiency low
by hampering the mobility of people, goods and machines; the relative
inefficiency of the governmental organization influences the level of
effectiveness in all fields of human endeavors; the peculiarities of
weather, climate, and even the shallowness of the Wagdalena River -- all
are elements which to a greater or lesser extent have a direct or in-
direct bearing on eroductivity. Likewise, changes in the terms of
trade of Colombia are also relevant to this discussion since they reflect
changes in the usefulness of Colombian endeavors from the point of view
of the needs of the world at large and hence overall productivity.
Through the complex mechanisms of growth in population and productivity,
the national income of Colombia is climbing at a fast pace and this pro-
cess is likely to continue unhampered for an indefinite period since the
overall level of efficiency compared with other countries is still so
low as to make great improvements possible in very little time. One
major obstacle may keep productivity down, or even lower its level --
an undue pressure of population upon resources which might occur over
the short run if people refused to abandon depressed areas, and over the
long run may occur if population increases outrun the ability of the
country to find new, non-marginal resources.

Trends in Productivity

Changes in the levels of productivity cannot be estimated directly

when the most rudimentary data are lacking. However, they can be esti-
mated indirectly with some degree of reliability from increases in em-
ployment and the rate of increases in output, and the latter magnitude
has been estimated for several economic activities in our study of
national accounts. Even when such data are lacking, productivity changes
can be deduced from rises in income, if both employment trends and unit
price trends are known. Resorting to this indirect method, we have made
some estimates of productivity increases from 1939 to 1947 in Table J-5
and, starting from this base, we have described the modifications of
these trends which are likely to occur by 1953 as follows:
 - 10 -

Estimated Annual Rate c Growth in Productivity

1939-1947 1947-1950 1950-1953

Agriculture 1.2 1.5 2.0

Industry 4.8 5.5 5.6
Construction 1.75 2.0 3.2
Government 2.7 2.7 2.6
Others - Urban 1.75 2.3 3.2
Total Urban 2.9 3.1 3.7
Total Country 2.8 2.9 3.1

Important changes in productivity are believed to have taken

place hetween 1947 and 1950. It is known that the output of cotton,
sugar and rice have grown much above previous levels with little or
no increase in manpower employed in agriculture. This improvement
is due in major part to the opening of better lands, favorable crop
years, and the introduction of more mechanized equipment. The excep-
tional increase in irndustrial production is closely related to large
purchases of machinery as well as plant modernization in the postwar
period. Also, new buildings of all kinds have been erected since
1947 and modern methods of construction were progressively adopted.
Finally, the purchase of larger trucks, airDlanes, and new ty-pes of
locomotives, the inauguration of new power plants, and the purchase
of appliances have undoubtedly stimulated the growth of productivity
in transport, public and domestic services.

Further improvements will occur if great efforts are made to

implement a balanced investment program. Productivity will increase
in agriculture with mechanization, irrigation, better seed selection,
and changes in the types of crops. The introduction of modern methods
(prefabrication, etc.) to low-cost housing would improve output per
capita in construction. While the full effect of recommended invest-
ment in transport improvements will not be felt before 1955 (after the
completion of the Magdalena Railroad),better maintenance of roads and
rolling stock, completion of principal highways, and reforms in air
transport will do much to increase efficiency in the short term.
Increased productivity in commerce would result if more competition
took place, storage facilities were expanded, and transportation were
improved. If domestic servants became scarcer because of greater
demand for workers in other economic activities, labor-saving devices
might be introduced to improve their output. In these three fields,
classiried as "other urban," sizable increases in productivity will
undoubtedly occur. Only a slight improvement in productivity is
expected in industry. This is consistent with statements repeatedly
made in the Report that major emphasis is to be given in the coming
years to projects of direct social interest but that, on the other hand,
the program cannot be implemented if a high level of production is not
attained or if the position of industry is allowed to deteriorate. A
slight decrease in the rate of growth of productivity in government is
posited. This decrease is to be expected, for the Missionls program
 - 11 -

calls for a considerable and swift exnansion of government personnel,

and the creation of new organizations. It ntay be assmiwed that the
efficiency of the newi organizations may be relatively low in the early
years of implementation of the progrsm. Overall annual growth of
productivity, which is believed to have been 2.8 percent until 1947,
is expected to resch 3.1 percent if the program is implemented. This
means that the rate of increase in Colombian outnut should become
5.3 percent per year.6/

D. Changes in Price Level

The unit price indices used in our projections of national ineome

should not be confused with wage indice,;. Theoretically, they cculd be
obtained by dividing wage indices (or rather indices of factor incomes)
by productivity indices. The. nature .of unit price indices may be
illustrated by a simple examole. The price of one ton of cement, ex
factory, will double from one year to another, if all incomes of the
people working in or owning a cement plant double and if the volume of
output remains unchanged. However, if all factors of oroduction become
twice as efficient in the same period, the volunme of outnut will double.
The Drice of one ton will then remain unchanged and the unit price index
will not move.

Unit price indices have never been calculated in Cclombia. It is

also impossible to derive them from wage indices, as these have not been
collected systematically. However, a rough apnrcximation to a unit
price index is provided by cost of living indices and, for ouir purposes,
the index of cost of living for workers' families in Eogota has been
selected as most likely to approach an ideal description of general
price fluctuations.

In order to obtain a unit price index in agriculture, the Mission

has constructed a weighted series similar to that elaborated for indus-
tries in Table A-13. Changes from 1947 to 1950 take into consideration
the rise in coffee prices at the end of 1949. Fluctuations in salaries
in government are supplied by official data arn, finally, fluctuations
in the unit price index of "other urban" activities were estimated on
the basis of data on the cost of transport, power and housing.

In the Report, it was assumed that the price level would not
fluctuate after 1950. However, this does not mean that price levels
are expected to stabilize in all sectors because incentives will be
needed in order to bring about desired shifts in resources, and the
international prices of coffee are expected to move. While the
general price level may not vary, it may be assumed that the relative
position of prices in the econcmy is likely to change. The postulated

S/ Index of productivity multiplied by the index of population increase.

Ynjint.erance of the orice level means that, on the average and Ccr the
whole of the courtry, increases in money incomes, principally vwages,
cannot exceed increases in productivity. But this can occur if act.ial
increases in price level. in one sector are balanced by decreases in
others, and if these decreaseE are obtained by lowering wages below
the level warrant.ed by orogress in productivity.

Hovrever, all money wages should increase to some extent since

improvement in standards of living has been posited. It is not oro-
posed to investigate wlat exactly the changes in money wages should
or could be since this will depend principally on the actual manpower
distribution and w7ages at the moment when the new investment progrem
is put in operation. Nevertheless, these increases may influence
the actual cost of important national accounts items such as capital
formation -- if sizable incentives are given to construction workers,
it may well be that construction costs will climb much above others.
In such case, the burden on the economy represented by capital
formation may grow, beyond expectations and a scaling down of the
investment program may be called for.

Tentatively, it has been assumed in Table J-5 that the major

incentives should be given to Goverrment workers and then come con-
struction workers. Their relative gains shculd be compensated by
small decreases in prices in "other urban" sectors, which would be
brought about mostly by a reduction in profit margins in commerce.
(It has been assumed throughout the Report that a reduction of impor-
ters markups from 50 to 33 perc6nt of the c.i.f. value of imported
merchandise may result frcm improvements in the exchange control
system, increased competition, excess profit taxes, etc.)

Agricultural Prices

The price level in Colombia is influenced by foreign contingercies.

Even if all policies are directed towards stability, foreign influences
will modify expected results. In Table J-5 no changes in import prices
have been posited, and this item can thus be eliminated as a disturbing
factor on the internal price level. However, it is generally believed
that coffee prices might decline in the years to come. This would
obviously affect agricultural and commercial incomes. It has been
tentatively estimated that a 7 percent decrease in coffee prices by
1953 may reduce the agricultural unit orice index (1950 = 100 percent)
from en assumed 100 to approximately 97 and this estimate has been
taken into account in our computation of national income in 1953. It
will be seen in Table J-5 that this hypothesis would result in an
actual lowering of the overall uniit price index for Colombia by 1 per-
cent.

E. Cther Trends U:ed in Projsection Models

Table J-62 is based or the same data as Table J-5 but additional
assumptions have been made. Volumes in foreign trade are assumed to

Z/ Comnrehensive Report, Table 159, p.599.

 - 13 -

increase 3 oercent per year from 1951 to 1953 because this rate of
growth is equal to that of coffee prcduction, which for the next 10
to 15 years will be the factor determining the expansion of Colombian
exports, and thus imports. Volumes from 1947 to 1950 can be derived
from available statistics. An increase of 11 percent in the unit
prices of impnorts from 1947 to 1°50 is purported to express the
effects of the devaluation of 1948. and an increase of 65 percent in
export prices reflects the increased coffee prices. From 1950 to
1953 a dron of 7 percent in coffee orices is assumed. In all other
fields, volume indice.E are the oroduct of emDloyment and productivity
indices indicated in Table J-5 and price indices shown in this table
are transposed uhchanged except in the case o- agricultural consumers,
expenditures (the price level of foodstuffs sold domestically or
imported is lovier than the price level of coffee and these two magni-
tudes have to be separated). Price indices indicated for "trade anld
transport" anid "other labor" in Tahle J-6 are a breakdown of orice
indices for "othier urban" activiLies in Table J-5.

Table J-7W is partially obtained from data^ in Table J-6 (projec-

tion of current expenditures). Internal debt service is estimated on
the basis of current oerformance. It is assu,-rec that the Colombian
government will not increase its internal debt before 1953. The
figures shown for service on external debt are based on known data for
1947 and 1950 and on the assumotion that by 1953 the external debt will
have increased by about Ps.$150 million. The ratio of direct taxes to
personal incomes is believed to have climbed from 4.2 percent in 1947
to 5.3 percent in 1950. A further increase to 6 or 6.5 percent in
1953 is desirable and can be obtained mainly by an improvemrent of the
tax collection system. The ratio of indirect taxes to gross national
product is believed to have moved from S.3 percent to 8.5 percent from
1947 to 1950, ;ind should increase again to about 10 percent in 1953.

Table J-8d/ summarizes the data provided by Tables J-5, J-6 and
J-7. It will be noted that in 1953 the gross national product mentioned
in Table J-8 is slightly higher than in Table J-6. This results from
the replacement of the value of projected investment (Ps.6l,002 million)
by the value of progranmmed investment (Ps.l,018 million).

Table J-9 summarizes the data in Table J-8.

Prcjection of Capital Formation

Table 1577i describes the rate at which capital may be invested in

the year 1953, an everage program year. In order to project the total
value of capital formaticn in each economic sector in 1953 and to obtain

gl Iid., Table 1At, p.6.05.

9/ Ibid., Table 12, p.603.
10/ Ibid., Table 163, p.604.
1- Ibd,p.594.
 - 14 -

a breakdown of this value among imported and domestic equioment and

material, payments to trade and transport, and domestic labor, the
trend data discussed in this appendix and shown in Tables J-5 and
J-6 were used.

In substance, it was assumed that by 1953: (a) the value of

capital equipment would increase by 40 percent above 1947 (index of
increase in volume 127; prices, 111); (b) the value of domestic
production of material and equipment would increase by 137 percent
above 1947 (index of volume 191; prices, 124); (c) the wage bill of
local labor engaged in capital formation, but not in construction,
would increase by 63 percent; (d) the wage bill of local labor en-
gaged in construction would increase by 102 percent; (e) the markups
for trade and transport of imported equipment would be reduced to 33
percent of the c.i.f. value of goods, while the markups for locally
produced goods would remain at 25 percent of the f.o.b. costs; (f)
installation costs would amount to 10 percent of the delivered cost
of equipment and materials; and (g) the increase in domestic output
of construction materials would reduce the relative imoortance of
imports of cement and steel to from 17 to 20 percent of the total
value of buildings and dwellings construction.

The assumotion of wide differences in increases between domestic

and foreign availability of goods and labor costs is easily explain-
able. Both productivity and manpower in Colombian industry increased
swiftly and evidence shows that, until 1950, wages have grown con-
siderably. On the other hand, import prices have risen only slightly
and the volume of imports cannot be expected to grow very fast. In
real ternms, however, the 40 percent increase in the value of imported
goods may be just as significant as a 60 to 100 percent increase in
the value of locally produced capital goods. Since imports plaey an
important role in capital formation and are of much smaller signifi/
cance in the national product, capital formation may very well grow
in real terms and simultaneously decrease in relation to the size of
the national product.
 Table J-1: PQPULATION STATiSTflS BY DEPARTENITS, 1938-1955
(In thousands)

Norte
de Cundi- Total Popalation
Anti- Boli- Mlagda- Atlan- San- San- namar- Depart-
Year Caldas Cauca Valle Narino oquia var lena tWco tander tander Bnya^a ca Tolima Huila ments Colombia

Growsthl/
in % 3.01 2.05 IL,21 159 1.88 2.64 2.49 3.5 1.89 1.72 0.59 1-8P 2.61 0.84 2.29? 2.3
Growth
per thovi-
fan(. 302. 20.4 42.1 i5.2 18.7 26,4 24.7 35.1 18,9 17.2 6.1 18.8 26.2 8,5 22.2 21.53
1938 770 356 613 466 1,188 765 3142 268 346 616 737 1,175 548 217 8,407.9 8,701,8
1939 793 363 639 473 1,211 785 351 278 353 626 7T2 1,197 562 219 , -
1940 817 371 666 481 1,234 806 360 288 350 637 7i 1,220 577 220 T75 -U
1941 842 378 694 488 1p25 7 827 368 298 366 648 751 1,243 592 222 8,980.2 9 276.1
1942 867 386 723 496 1,250 849 378 308 373 659 755 1,266 607 224 9,179.-6 9 8
1943 893 394 754 504 1,304 871 387 319 380 671 7,9 1,290 623 226 9,383
1944 920 402 785 512 1,329 895 397 330 387 682 764 1,315 639 225 9 2
19)45 948 410 818 520 1,354 Q18 407 342 395 694 769 1,340 656 230 9 80•_ 10,_101.1
1946 977 419 854 529 1,380 9L3 416 354 402 706 773 1,364 674 232 161 8
1947 1,006 427 889 537 1,405 967 427 366 410 718 778 1,390 691 234 10,244.9 10,540.6
1948 1,035 436 926 545 1,430 993 )438 379 418 730 782 1,416 709 235 1-0)72.3 19,761.75
1949 1,066 445 964 554 1,456 1,019 449 392 425 743 787 1,442 727 238 lL ° 10,999.3
1950 1,098 454 1,005 563 1,483 1,046 460 406 433 755 791 1,469 746 240 10,942.4 11 236 2
1951 1,131 464 1,047 572 1,510 4074 471 420 442 768 796 1,497 766 242 11,185.3 11 i478
1952 1,165 473 1,091 581 1,538 4102 483 435 451 782 801 1,525 785 244 1- 3725.
1953 1,200 483 1,137 590 1,567 2131 495 450 460 795 806 1,554 806 246 11 687.4 11 977.6
1954 1,236 493 1,184 600 1,596 1,161 507 466 468 809 810 1,583 827 248 12 296.9
1955 1,273 503 1,234 609 1,626 1,191 520 482 477 823 815 1,613 849 250 19

1/ As reported In official statistics.

j As reported in Population Censis of 1938.

Source: Anuario General de Estadistica.

 Table J-2: OCCUPATIONAL DISTRIBUTION OF LABOR FORCE BY SEX, 1938

Actual number (in thousands) Percentage distribution

Occupation Male Female Total Male Female Total

Agriculture, forestry
and fishing 1,758 1,563 3,321 52.9 47.1 100.0

Mining and quarrying 52 23 75 69.3 30.7 100.0

Manufacturing 179 261 44h0 0.7 59.3 100.0

Building and
construction 85. 2 87 97.7 2.3 100.0

Transportation and
communication 60 3 63 95.2 4.8 100.0

Trade and finance 130 31 161 80.7 19.3 100.0

Health, public and

private services 24 42 66 36.4 63.6 100.0

Public administration,
education & defense 67 20 87 77.0 23.0 100.0

Liberal professions 15 4 19 78.9 21.1 100.0

Domestic services 24 115 139 17.3 82.7 100.0

Other 25 5 30 83.3 16.7 100.0

Total 2, 4 19 2,069 4,488 53.9 46.1 100.0

Source: 1938 pcpulation census.

 Table J-3: OCCUPATIONAL DISTRIBIYITION OF FULL-TIE AND PART-TIME WORKERS, 1938
(In thousands)

Total number Equivalent Total

Occupation gainfully .'ull-time Part-time of three full- equivalent
employed employed employed time workers employed

Agriculture 3321 1000 2321 500 1500

Non-agriculture:

Mining 75 52 23 5 57

Industries 95 85 - - 95

Handicrafts 345 91 254 54 145

Construction 87 65 22 5 70

Transports 63 63 - - 63

Trade 161 140 21 4 144

Services 66 66 - - 66

Public administration 87 87 - 87

Liberal professions 19 19 - - 19

Domestic services 139 100 39 8 108

Other 30 0 30 6 6

Total 1167 860

Grand total 4h88 2360

 Table J-4: DISTRIBUTION OF THE LABOR FORCE, 1439, 1947

Total equivalent income earners Percent increase

oin thousands) from 1939
Occupation 1939 1947 to 1947

Mining 57.5 60 104.5%

Industries 100 146 146.Q

Handicrafts 148 185 120.0%

Construction 72.5 96 132.0%

Transport 66.5 95 143.0Y

Commerce 148 194 131.0%

Government 95 98 103.0%

Services 67 79 118.0%

Liberal professions 19.5 25 126.5%

Domestic services 110 140 126.5%

Other 6 7 118. Y

Total urban 1124

Total rural 1527 zm 1L.21%

Grand total 2416 2j72
 TABLE J- 5
MoDou. PROJECTION OF NATIONAL INCOME, 1947-1953;
EMPLOYMENT, PRODUCTIVITY AND PRICE INDICES, 1939-53

1947 1950 1953

Employ- National Employ- National Employ- National
ment Average Income ment Average Income ment Income Income
Economic Sector (thousands) Income (millions) (thousands) Income (millions) (thousands) Average (millions)

Agriculture 1,755................ 1,755 Ps.$ 745 Ps.$1,308 1,843 Ps.$1,130 Ps.$2,090 1,927 Ps.$1,165 Ps.$2,245
Total Urban .... 1,124 1,720 1,931 1,224 2,430 2,961 1,335 2,697 3,615
Industry 146 3,380 494 171 4,860 831 202 5,735 1,158
Construction .96 1,460 140 106 2,015 213 122 2,305 281
Government .98 2,040 200 118 2,987 352 141 3,548 490
Others .784 1,400 1,097 . 829 1,893 1,565 870 1,926 1,686
Grand Total (or average) .... 2,879 Ps.$1,125 Ps.$3,239 3,067 Ps.$1,647 Ps.$5,051 3,267 Ps.$1,795 Ps.$5,860

1939-47 1947-50 1950-53

Indices (1939 100) Tndices (1947 = 100) Indices (1950 = 100)
Employ- Produc- Employ- Produc- Employ- Produc-
ment tivity Price ment tivity Price ment tivity Price
Agriculture ............................ 115 110 230 105.0 104.5 145 104.5 106 97.0
Total Urban .126.5 126.5 200 108.9 109.6 128.5 109.5 111.5 100.0
Industry .146 146 193 117.4 117.4 124 118 118 100
Construction .132 115 220 110.8 106 130 115 110 104
Government .103 124 257 120.0 108.4 135 120 108 110
Others ... . . .. 126 115 200 105.7 107.0 126.5 105.5 110 92.5
Weighted Average ................ 118.6 125.5 207 106.5 108.4 135 106.5 109.5 99
 TABLE J- 6
MODEL PRoJECTIoN OF GROSS NATIONAL PRODUCT, 1947-1950-1953

Volume Price Volume Price

Total Index Index Total Index Index Total
Values 1947-50 1947-50 Values 1950-53 1950-53 Values
in 1947 (1947=l100) (1947=100) in 1950 (1950=100) (1950=100) in 1953
(millions) (millions) (millions)
TOTAL GROSS NATIONAL PRODUCT .......................... Ps.$3,674 Ps.$5,708 Ps.$ 6,698
GOVERNMENT EXPENDITURES on goods and services
(current) .269 130 135 470 130 110 665
GROSS CAPITAL FORMATION .612 875 1,002
Imports ....... .. .................... 222 117 111 288 109.3 100 315
Industries .68 138 124 116 139 100 161
Trade and transport .128 112.5 126.5 182 116 75 158
Labor-Construction .140 117.5 130 213 127 104 280
-Other .54 112.5 126.5 76 116 100 88
CONSUMER EXPENDITURES .2,985 4,363 5,095
Agriculture ...... . ............ 1,000 109.7 129 1,415 110.8 100 1,584
Others .. ; 1,568 119.3 128.6 2,405 122.1 100 2,918
Imports .... . . ........ 417 117 111 543 109.3 100 593
NET EXPORTS. -193 0 - 64
Exports .. 446 113 165 830 109.3 93 843
Imports ....................................................................... _ 639 117 1830 11 109.3 100 907
Table J-7: MODEL PROJECTION OF COLOMBIAN BUDGET !/, 19h7, 1950, AND 1953

(In million pesos)

Year
Item 1947 1950 1953

Revenues

Direct taxes 130 260 368

Indirect taxes 306 482 650

Foreign loans - 0 50
Total 436 742 1068

Expenditures

Current 270 470 665

Capital 165 236 331

Internal debt 2/ 42 50 40
External debt 2/ 10 26 32

Total 487 782 1068

Balance -51 -40 0

1/ Excluding revenues and expenditures of government enterprises and

intergovernmental payments.

2/ Includes repayments and interest charges.

 Table J-8: MODEL PROJECTION OF NATIONAL ACCOUNTS, 1947, 1950 AND 1953

(In million pesos)

Year
Item 1947 1950 1953

Expenditures 3673,8 5708 6714

Current government expenditures 269. T70 66
Government expenditures - capital 165.0 236 331
Private capital formation 447.0 639 687
Net exports -193.0 0 -64
Consumers' expenditures 2985,1 4363 5095

Income 3673.8 6714

- Depreciation 12b.5 175 201
- Indirect taxes 306.3 482 650
National income 3239.0 5051 5863
4 Transfer payments 42.0 50 40
- Retained earnings 150.0 210 130
Personal income 3131.0 4891 5773
- Income taxes 130.1 260 368
Disposable income 3000.9 4631 5405
- Consumption expenditures 2985.4 4363 5095
Personal savings 415.5 4268 4310
 Table J-9: PROJECTED INCOME AND EXPENDITURES OF

COLOMBIA] ECONWOI, 1953

(In million pesos)

Item Income Expenditures Balance

Consumers 5n405 5,o95 + 310

Business 331 687 J - 356

Government 1,018 1,036 ' - 18

Transfers - 140 - 40 -

Net investment (foreign) - - 64 + 64

Gross national product 6,714 6,714 0

/ Capital formation at program, not projection, levels.