Update 2 - Economic Situation in Nueva Granada: Paper submitted at the University of Boyacá

 

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   Paper submitted at the University of Boyacá

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The economic state of Nueva Granada

Íñigo Errejón

submitted: 5th OF JUNE 1826

The state of the economy since Independence from Spain

1810 brought with the independence from Spain also the end of the colonial economic system. Nueva Granada could now establish commercial relations with other countries, notably Great Britain. This was, however, diminished by the upcoming political instability and war. Regions competed and this inhibited integration and growth in the economy.

Some sections of the population gained from the temporary collapse of the colonial regime: Merchants and producers of tobacco and aguardiente could trade outside the Spanish monopoly and in regions with autonomous governments, taxpayers no longer had to pay the royal treasury. On the other hand, political divisions and the demands of governments brought large costs: lands were confiscated, trade disrupted, and forced loans were levied to meet the needs of governments in both royalist and patriot regions. 

Again under Spanish rule, the situation deteriorated. On top of many deaths in the war, General Murillo confiscated property, and imposed large fines and taxes to finance his campaign to eradicate opposition to the Bourbon government. Bolívars campaigns again demanded many deaths and financial strain on the population. wars. In 1824 the British consul in Cartagena said: "Colombia had been wasted by a sanguinary warfare of thirteen years, her population greatly diminished, her industry palsied." but also that recovery had been rapid, commenting that "the progress of Colombia since the consolidation of her power and government has been with the stride of the giant".

But war did not affect the whole country equally. The effects of the wars were felt most acutely in the hinterlands of Cartagena, Santa Marta and Mompós, and Santafé de Bogotá. Cartagena had been especially exposed, their agriculture and trade suffered lasting damage. The provinces of Popayán and Pasto in the south had been on the frontier of military operations between royalist and patriot forces, as was the Bogotá region which faced damage done to agriculture by forced recruitment, seizures of livestock, and by the breakdown of order brought by war. 

Still, on the whole Nueva Granada probably suffered a lot less than other regions, in particular Venezuela or Peru. We have little evidence for serious food shortages. Since the gold mines were decentralised, they recovered quickly mostly. The textile industry was mostly held up by women working from home, which made it far less affected by the war than workshops in other regions. Since the establishment of Gran Colombia, there has been optimism and a wish to improve the situation further.