There was a constant decrease in the exporting potential product of Colombia, coffee, as well as a cut in the international loans and investment.
Eventually, the crisis in the U.S.A. generated a cut in urban employment within Colombia, diminished internal market, and other problematic social and economic situations.
Furthermore, it is ultimately influenced by factors such as culture, climate, previous development, political order, and internal and external social conflicts.
The government also has to be very careful in the amount of money that runs among the pockets of the people because that is what determines product prices and inflation.
Therefore, the economic success was not internally based and sustained; divergently, the economy was holding on to the United States credits and investment.
It was only until 1932 that the rise in gold production compensated the external debt as well as created commercial balance, ultimately preventing the continuous loss in reserves.
It focused more on recuperating and reanimating the local product market, returned to the coffee exportation as a main economic sustains, and finally emphasized the improvements in domestic credits.
Part of the problem was that the liberals still accused the conservatives of things that were already left in the past and weren't relevant in the present.
A fact worth mentioning, the loyalty of liberalism ideas wasn't based on what each person believes, but it was more an obligation that came from many years back, in other words, inherited hatred.
Even though these problems did affect the relationship between these two parties, the government included some conservative members in the cabinet to make the transition easier.
Something Olaya Herrera decided was essential to get over the crisis was making even stronger the relation between Colombia and U.S.A, so there was a chance that their vast resources would help resist the depression.
The economy in Colombia around World War II was divided into two extensive periods: from 1930 to 1939, in which the country experienced a tremendous increase and a new social transformation.
Although some countries around the world had trouble coming back from the crisis, Colombia was one of the few that had a swift and sustainable recovery in order to develop its agricultural sector, coffee production, and oil exploitations.
Although the increase was spectacular, we had to consider what the CEPAL organization said: “if we have a good growing rhythm, we need to think about the low initial level, which can cause future plans”.
Colombia reacted with an “emergency economy” by intervening in the coffee industry by coordinating and controlling transportation by organizing external commerce and strengthening importation regulation system.
Three main factors were involved; the increasingly high demand for industrial raw material, the government stimulus, and the available international resources.
The government generated a positive stimulus by introducing machinery and proper equipment, fertilizers, insecticides, credit, and infrastructure investment.
As many industrial raw material crops were taking over the fertile and plain lands, the cattle were displaced and eventually diminished productivity.
More than half of the employed population lives barely above subsistence level due to the sudden increase in urban areas.
This period is probably the beginning of an escalating Colombian population that began at a grander scale with the current unemployment cycle.
There is a turning point in the movie: Jorge Eliecer Gaitan, a very influential liberal leader killed by some conservatives.
When this happens, the liberals decide to show how much they cared and started burning and destroying conservative symbols like the Catholic Church.
In this reunion, the conservatives tell Leon Maria that he was the man chosen to protect its party, and they gave him guns and money to start right away.
During the rest of the movie, they show how Leon Maria kills, threatens, and tortures liberals to leave their homes and go far away.
From 1958 to 1970, industrialization became a backup for the new exportation methods, meaning the new government was more focused on developing new ideas to improve the economy.
In this period, the government was also able to enter more complex importation areas, creating changes in their new politics to increase their marketing development.
A massive change also arises in the external national product, expanding and developing the modernized economy and reducing importations in a large percent.
It wasn't until about 1955 that the government started to get focused on developing and growing this sector; to create new urban jobs the violent movement had to be exterminated by the Frente Nacional.
Simultaneously, new opportunities for the peasant were given, meaning the government gave them the chance to work on the territorial lands and see how significant a change it would make for the economy.
It was also better to move on with new ideas due to the requirements presidents Lleras Restrepo proposed: 1) devalue the currency again, 2) import release, 3) free foreign exchange market.