The economic challenges of post-extractivism in the south: the Colombian case

Post-extractivism promotes the reduction of fossil fuel extraction to limit the economy to planetary boundaries. In this research, I will analyse how the external restrictions affect the post-extractive agenda in the south from a heterodox perspective. The question is addressed through a theoretical reflection based on the currency hierarchy theory. Moreover, I analyse the Colombian case using secondary data to confirm my hypothesis. I found that countries with a fossil fuel dependency have a weak position in the monetary system which reduces their policies space. As a result, peripheries cannot strand fossil assets. Otherwise, they will face economic and financial instability. Therefore, economies at the south have to choose between environmental protection or financial instability.