ABSTRACT
Since the mid-1970s, this process has been interrupted. The turning point can be traced to the abandonment of the mixed model as a reflection of the ‘Dutch disease’ effects of the booms in international coffee prices and foreign indebtness which took place between 1975 and 1982. As industrial growth slackened, total factor productivity (TFP) levelled off, export coefficients declined and structural change ceased. Since the mid-1980s, the return to the central features of the mixed model has been reflected in the renewed dynamism of the industrial sector. None the less, the falling returns from the import-substitution elements of the model, together with the radical change in external conditions facing the country, led to a radical turnaround in economic policy in 1990-1, by which the country adopted a more explicit outward-oriented strategy.
