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




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.

Suggested Citation

  • Larrú, José María, 2013. "The developmental contribution of the Offset Agreements: the case of Colombia," MPRA Paper 51456, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:51456

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    References listed on IDEAS

    1. Jurgen Brauer & J Paul Dunne, 2005. "Arms Trade Offsets and Development," Working Papers 0504, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    2. Knack, Stephen & Rahman, Aminur, 2007. "Donor fragmentation and bureaucratic quality in aid recipients," Journal of Development Economics, Elsevier, vol. 83(1), pages 176-197, May.
    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, 2009. "Arms Trade Offsets: What Do We Know?," Working Papers 0910, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    5. repec:unu:wpaper:wp2012-24 is not listed on IDEAS
    6. Jurgen Brauer & John Paul Dunne, 2011. "Arms Trade Offsets: What Do We Know?," Chapters,in: The Handbook on the Political Economy of War, chapter 13 Edward Elgar Publishing.
    7. Kimura, Hidemi & Mori, Yuko & Sawada, Yasuyuki, 2012. "Aid Proliferation and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 40(1), pages 1-10.
    8. 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.
    9. Manning, Richard, 2012. "Aid as a Second-Best Solution : Seven Problems of Effectiveness and How to Tackle Them," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
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    More about this item


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

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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