Executive Summary, December 2009
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the economy has generated 28.4 additional jobs, totaling 164,863 jobs. Considering the thirteen mills (6,643 workers) and the forward linkages, which include those sectors that consume the mills products, in 2007 the sugar industry generated a total of 265,402 jobs (see Figure 2). p
p
p
The number of jobs generated by the mills and their suppliers, known as the direct effect of the productive activity, amounts to 93,787 (sum of the first two bars in Figure 2). Of these, the mills’ providers generated 62,568 jobs, while the mills generated 31,219 jobs from which 25,410 were associated to non-industrial work and 5,809 to industrial work (see Figure 3). The latter figure would rise to 32,053 if it had taken into account information for the thirteen mills. In 2007, the aggregate contribution of the sugar mills to the payment of production taxes was 1.63% ($159,804 million pesos or US$ 77 millions). For each peso of production taxes paid by sugar mills, a payment of 10.3 additional pesos was generated in the economy. The sugar mills generate added value to the economy of the region and the country. The total contribution to gdp was 0.54% of total gdp ($2.3 billion pesos or US$1,117 million), while the direct contribution was 0.14%. For every peso that the mills contribute to the national gdp, a near four-fold effect is generated in the economy. Table 1 shows the multiplier effects of the sugar mills in the economy for the variables analyzed in this study.
2. Regional Impact p
The regional analysis measured the social and economic impacts the sugar sector had on its area of influence in the Cauca river valley. To do this, a descriptive and comparative analysis was performed at the municipal level, differentiating the social and economic situation of the municipalities in the mills area of influence from other municipalities, and also making comparisons to other municipalities with significant