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The developmental contribution of the Offset Agreements: the case of Colombia

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  • LARRÚ, JOSÉ MARÍA

Abstract

Colombia is a middle-income country but with a human development constantly threatened by insecurity. This paper analyzes the developmental impact of Offset Agreements (linked to international defence-industry cooperation) implemented by EADS-CASA in Colombia. Compare Malaysia, the Colombian case exemplifies how offset might be an instrument of development through increasing security in recipient countries. In an international context that seeks explicitly how to include the private sector as a developmental agent, and that it is looking for the best practices among public-private partnerships, these agreements can be a good example. The offset agreements executed in Colombia are assessed with high marks in relevance, ownership and alignment, and potential direct and indirect value added, externalities and sustainability. Transparency is the weakest point of the offset. A move towards an international initiative that helps minimize unwanted effects such as unfair competition or corruption is proposed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51456.

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Date of creation: Jun 2013
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Handle: RePEc:pra:mprapa:51456

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Keywords: Colombia; development; Offset Agreements; public-private-partnerships; technology transmission.;

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  1. Jurgen Brauer & J Paul Dunne, 2009. "Arms Trade Offsets: What Do We Know?," Working Papers, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol 0910, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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  3. George Economides & Sarantis Kalyvitis & Apostolis Philippopoulos, 2004. "Do Foreign Aid Transfers Distort Incentives and Hurt Growth? Theory and Evidence from 75 Aid-recipient Countries," CESifo Working Paper Series 1156, CESifo Group Munich.
  4. Jurgen Brauer & J Paul Dunne, 2005. "Arms Trade Offsets and Development," Working Papers, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol 0504, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  5. Knack, Stephen & Rahman, Aminur, 2004. "Donor fragmentation and bureaucratic quality in aid recipients," Policy Research Working Paper Series, The World Bank 3186, The World Bank.
  6. KIMURA Hidemi & SAWADA Yasuyuki & MORI Yuko, 2007. "Aid Proliferation and Economic Growth: A Cross-Country Analysis," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 07044, Research Institute of Economy, Trade and Industry (RIETI).
  7. Anna Jankowska & Arne Nagengast & José Ramón Perea, 2012. "The Product Space and the Middle-Income Trap: Comparing Asian and Latin American Experiences," OECD Development Centre Working Papers 311, OECD Publishing.
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