Challenges of illegal crops substitution programs toward Local Economic Development : Catatumbo, Colombian case (2014-2016)

This paper investigates Local Economic Development in fragile contexts, in Catatumbo, Colombia. It aims to explore In what ways did substitution programs affect the transit from an illegal local economy to a legal economy?. It examines three key elements of LED to understand from a theoretical framework, the challenges in the transitional process to a legal economy in a context characterized by abandonment of state and prolonged internal conflict. It employs qualitative methodology and case study approach. Also it takes my own experience as a source of information, since I worked within the government for 8 years on matters relating to poverty and attention to victims of violence. The overall research finding is a fragile context is the ideal scenario for the strengthening of illegal activities that mobilize the local economy through a value chain, generating income stability and development opportunities in a region with unsatisfied basic needs. Hence, investment in social welfare should be complementary to the development of alternative projects. Also, the articulation and coordination of different actors allows to broaden the impact of the interventions and mainly to strengthen the value chains of the new productive activities, in such a way that it is prevented from returning to illicit activities. In that sense, the role of government in strategic coordination is fundamental to recover its legitimacy in places where it has not had control for years.