Economic history of Colombia

This article is about the economic history of Colombia and its evolution from precolonial to modern times.

Indigenous peoples in Colombia predominantly cultivated maize and managed the Colombian climate and geography to develop planting technique using terraces. The indigenous also cultivated grass to use as roofs for their houses, and fique fiber to saw their clothing and artifacts. They also cultivated local fruits and vegetables like yuca and potato for their diet. The indigenous peoples also were avid hunters and consumed processed local fauna.

Colombia's economy during the colonial era was extractive and exploitative, relying heavily on cheap native labor. Domestic industry was constrained during the colonial period because the audiencia was bound to Spain as part of a mercantile system. Under this arrangement, the colony functioned as the source of primary materials and the consumer of manufactured goods, a trade pattern that tended to enrich the metropolitan power at the expense of the colony.

Because Spaniards came to the New World in search of quick riches in the form of precious metals and jewels, mining for these items became the pillar of the economy for much of the colonial period. Indeed, the extraction of precious metals—such as gold and copper—in the American colonies formed the basis of the crown's economy.

Spain monopolized trade with the colonies. The crown limited authorization for intercontinental trade to Veracruz (in present-day Mexico), Nombre de Dios (in present-day Panama), and Cartagena. Direct trade with other colonies was prohibited; as a result, items from one colony had to be sent to Spain for reshipment to another colony. The crown also established the routes of transport and the number of ships allowed to trade in the colonies. Merchants involved in intercontinental trade had to be Spanish nationals. Finally, the crown circumscribed the type of merchandise that could be traded. The colony could export to Spain only precious metals, gold in particular, and some agricultural products. In return, Spain exported to the colonies most of the agricultural and manufactured goods that the colonies needed for survival. Domestic products supplemented these items only to a minor degree.

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