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

LARRÚ, JOSÉ MARÍA (2013): The developmental contribution of the Offset Agreements: the case of Colombia.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Colombia; development; Offset Agreements; public-private-partnerships; technology transmission.
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; H - Public Economics > H5 - National Government Expenditures and Related Policies > H56 - National Security and War; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D

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