GOVERNMENT MEASURES SUCCEED IN SPARKING ECONOMY
With the overwhelming approval of his nation, President Uribe’s tough stance on security and economic development policies are transforming the nation’s future

Latin America’s third most-populous nation is achieving renewed confidence in its potential to pursue ambitious growth targets

In 2002, Colombians elected President Alvaro Uribe Vélez, a Harvard and Oxford-educated lawyer who promised to continue to pursue the broad goals of the previous administration's Plan Colombia, but within the framework of a long-term security strategy.

The President’s development plan contained four objectives: domestic security, growth and employment generation, better social equity policies, and state renewal. While much attention has been given to the succssful implementation of the security and military program, President Uribe has also focused significant energy and resources on issues such as international trade expansion, exploration of new development initiatives, and judicial reform. Colombia achieved independence nearly two hundred years ago, making it one of Latin America’s most longstanding democracies. Paradoxically, it has had a troubled history of violence, and the country’s current conflicts have been exacerbated by the expansion of illicit drug cultivation, and widespread social inequities.

However, the government’s combined strategy of security and economic reform has been producing results. President Uribe states, “We have many problems in this country, but the will to solve them is greater than they are.”

ÁLVARO URIBE VÉLEZ President of Colombia

The high level of popularity the President has enjoyed since his election has provided him with the scope to implement his tough policies. He has also taken measures to spur the sluggish economy, including the creation of five reform bills, focusing on tax, pension, labor, public administration, and banking systems. Although unemployment and poverty levels are still high, the Colombian economy is beginning to rebound, as indicated by a 2003 first quarter GDP growth of 3.8%. Moreover, the International Monetary Fund (IMF) has backed Colombia's reforms with funding for a $2.1 billion agreement. President Uribe comments, “We have found great international support, and agreements with the IMF are fundamental for providing confidence.”

Development plan unites public and private sector efforts
Poverty has many dimensions in Colombia, including unemployment, inadequate social opportunities, and powerlessness. President Uribe’s administration has implemented a development plan that includes the creation of two million new jobs, as well as agricultural sector subsidies and increased housing subsidies. The development strategy also stresses the need for increased private sector involvement. Mr. Santiago Montenegro Trujillo, Managing Director of the National Planning Department, says that cooperation between the private and public sector is essential in creating the macroeconomic stability needed to reduce poverty. He states, “The public and private sectors have to work together and there are various factors that join these two forces: first, the President’s leadership; secondly, the fight against terrorism; and lastly, the need for an economic recovery, because we need to start growing and generating employment again.”

Efrain Enrique Forero Fonseca, Chief Executive Officer of Davivienda, the nation’s fourth largest bank, says that President Uribe has been instrumental in recovering investor confidence in Colombia. He comments, “President Uribe has implemented a government plan that has succeeded in recovering our own confidence, as well as that of foreign investors. He is also carrying out a state restructuring in order to create fiscal balance, and working on the opening of new markets and regional and U.S. trade agreements.” Davivienda, as well as the family insurance group, Seguros Bolívar, are just some examples of the response of Colombia’s private sector to the country’s development needs.

U.S. investors prove vital in Colombia’s private-sector led drive
More than 250 American businesses are currently conducting operations in Colombia; the U.S. is Colombia’s largest trading partner and relations between the two governments are strong. U.S. policy toward Colombia supports the Colombian government's efforts to strengthen its democratic institutions, promote respect for human rights and the rule of law, intensify counter-narcotic efforts, foster socio-economic development, and address immediate humanitarian needs. Moreover, former U.S. Ambassador to Colombia, Ms. Anne Patterson, who spent three years in Colombia before Ambassador William Wood was appointed in July of 2003, says that the country is primed for private U.S. investment. She remarks, “Colombia is a country with amazing potential. It has a huge domestic market, well-educated entrep-reneurs, and some well-established businesses.”

The United States has also played a strong role in supporting President Uribe’s security and development programs, a continuation of U.S. support for Plan Colombia which began in 2000. President Uribe believes that commercial and political ties between the two countries will only grow stronger in the future. He comments, “The United States has been a great partner for us in practical terms, in defeating drugs and terrorism, and concerning trade, we are looking to sign a bilateral agreement with the U.S. as a preliminary step to free trade between the two countries.”