What does a good month in Colombia look like? Well, the opposite of what we saw this past May. The Colombian government wanted ongoing investor confidence to remind everyone about the country’s progress, but an attack against a conservative former minister, and the capture of a French journalist by the leftwing FARC guerrillas revealed the contrary. In Colombia, security remains a weak spot. Colombia is on a positive path, but its government should not be too confident about the country’s success
Colombia has made progress on its security and economic fronts. A stronger police force, a better military, and more effective, yet still subpar government institutions have combined to wage an effective war against left-wing guerrillas, right-wing paramilitaries, and drug-trafficking organizations. Although much still needs to be done, Colombia is no longer seen as a failed state. But, illegal groups still have a presence in remote and strategic areas of the country.
Improved security and a well-managed economy are the anchors of an average GDP growth rate of over 4 percent in the last decade, compared to a regional 3.4 percent. Foreign direct investment (FDI) has soared, reaching $13 billion in 2011. Close to 40% of these flows went to the oil industry as a result of improved control over the territory, a successful oil sector reform, and high commodity prices. Against this backdrop, throughout the month of May, Colombia wanted to celebrate ongoing investor confidence and the taking off of the long awaited U.S.-Colombia trade agreement.
Indeed, last month the Santos administration organized several events to celebrate the U.S.-Colombia trade agreement, the country’s economic stability, and Colombia’s security achievements. On May 15th, the day the trade agreement finally took effect, the port of Continue reading