Eye on Latin America: Columbia
Sugar cane field outside of Cali, Columbia
After visiting Colombia,
one can’t help but leave with the impression that the future for
Latin America’s second-largest economy is as fresh and green as the
Colombian countryside. Certainly, like the rest of Latin America, Colombia
has had its political, economic and social challenges. However, the current
leadership of President Alvaro Uribe, along with substantial investment in
Colombia’s industrial and economic infrastructure in recent decades,
positions Colombia as a very important trading partner for the United
States, Canada and many other countries around the world.
Colombia has all of the ingredients needed to be a
significant player within the global economy, not to mention a leading
player within the confectionery industry: a wealth of natural resources; a
labor force that is well trained in the skills necessary for industrial
operation; a well developed transportation and shipping infrastructure; an
attractive tariff structure; and access to both the Atlantic and Pacific
Oceans, allowing inexpensive shipping to the United States,
Colombia’s largest trading partner.
One of Colombia’s most crippling challenges in
recent decades has been guerrilla activity that was born out of divisions
in the two main political parties—the Liberals and the Conservatives.
In the years between 1949 and 1953, tremendous inter-party struggles came
to a head. The Conservatives con-trolled the government and the military.
There were violent attacks on the Liberals. In retaliation, the Liberals
organized guerrilla armies. By the mid-1950s, many of the guerilla groups
were growing increasingly independent from the Liberal party and were
emerging as an armed wing of the Communist party.
The instability that these groups have caused over the
decades has been tremendously devastating for
both the Colombian people and Colombian economic development.
President Alvaro Uribe has taken a zero tolerance
approach to guerilla activity. As a result, Colombian cities and industrial
areas have become much, much safer. This dedication to security has
been a key factor in fostering Colombia’s economic growth.
Although many multi-national companies across a variety
of industries have been operating manufacturing facilities in Colombia for
well over three decades, the added security and drastic reduction in
guerilla violence has substantially helped to reposition Colombia as a very
desirable destination for manufacturers and large purchasers of many types
of consumer and industrial goods.
Colombia at a Glance
Current President: Alvaro
Uribe
Government Type: Constitutional
Democracy
Currency: Colombian
Peso
Exchange Rate: 1.00 USD = 2,344.50 Colombian Pesos (April 22, 2005)
Economic Growth: 4.12%
growth in 2004
Unemployment: 3.3%
reduction in unemployment 2002 – 2005 YTD
Population: 42,310,775
(July 2004 estimate)
Main Ports: Bahia de
Portete, Barranquilla, Buenaventura, Cartagena, Leticia, Puerto Bolivar,
Santa Marta, Tumaco, Turbo
Primary Exports: Petroleum,
natural gas, coal, iron ore, nickel, gold, copper, emeralds, hydropower,
commercial crops (coffee, sugarcane, cotton, bananas, palm oil, tobacco),
processed foods, textiles, cement, chemicals and pharmaceuticals
Geographic Location: Colombia
is bordered by Panama and the Caribbean Sea on the north, Venezuela and
Brazil on the east, Ecuador and Peru on the south, and the Pacific Ocean on
the west.