Dismantling the Coalition Apparatus
Pastrana was the last president to be elected under the provisions of the National Front. In 1970 the government began to dismantle the structure of the National Front in accordance with the 1968 constitutional amendments. The parity provision for elective legislative bodies and the exclusion of nontraditional parties from participation in elections no longer applied on the local level. These changes also went into effect on the national level in 1974, in time for the election of Pastrana's successor.
The liberalization of the political system in effect undercut support for the bipartisan movements that had challenged the traditional parties during the National Front. Although Anapo declared itself an official party in 1971, it declined in popularity and electoral strength. Marķa Eugenia Rojas--the Anapo candidate in the 1974 presidential election--received less than 10 percent of the vote. After General Rojas Pinilla's death in 1975, the party continued to lose strength, eventually allying itself with other marginal movements that, by themselves, drew insignificant results at the polls.
Pastrana termed his administration the "Social Front" and followed most of the policies of his predecessor. In two areas of economic policy, however, he differed: land reform and the status of the construction sector. Pastrana's proposals for land reform included promises of redistribution; however, the large landowners objected to the government's proposal to base taxation on potential rather than actual income from the land. In the course of negotiations between the agricultural interests and the different party factions, productivity replaced redistribution as a priority. The government granted major concessions to the large agriculturists concerning the bases for assessing income and real estate taxes. It also guaranteed that new sources of credit be made available for modernizing the agricultural sector along capitalintensive lines.
In industrial policy, Pastrana selected construction as the "leading sector." The administration advocated public investment in construction projects as the engine of growth for the economy because it created employment and increased income and, by extension, increased demand for domestically produced items. Pastrana also encouraged private investment in the leading sector through the establishment of the Units of Constant Purchasing Power (Unidades de Poder Adquisitivo Constante--UPAC), a system by which an investment not only accrued interest but also was adjusted for inflation. The UPAC system of adjusting for inflation extended to many elements of the economy, including life insurance, wages, and prices. The combination of the UPAC system and the huge investment in construction overstimulated the economy and fueled inflation, which reached 27 percent by 1974.
Guerrilla activity continued during the Pastrana administration. In 1972 another guerrilla group--the 19th of April Movement (Movimiento 19 de Abril--M-19)--emerged. The M-19 took its name from the date on which Rojas Pinilla was narrowly and, in their minds, fraudulently, defeated by Pastrana. Although the M-19 claimed to be the armed branch of Anapo, the Rojas Pinilla organization disavowed any connection to the guerrilla group.
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