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

Colombia has one of the worst income distributions in the world. This finding is a matter of concern since abundant empirical evidence at the international level shows a negative relationship between economic growth and inequality. This paper seeks to review the economic growth and the evolution of inequalities during the last two decades in Colombia (1990-2010). Employing the last two censuses (1993 and 2005) we evaluate the spatial distribution of poverty and its persistence over time. In Colombia large differences in the distribution of income have become worrisome. For the last three decades inequality has increased and the most impoverished areas, such as the Caribbean and Pacific coasts, continue to lag behind. What is observed in the Colombian context is an increasing territorial polarization. Moreover, several key economic policies seem to have worsened the situation of economic imbalances in this respect.