Welcome to my presentation on the history, political and economic development of Colombia

since its conquest by the Spaniards in 1508.

To begin with, Let’s have a look at the over view of our case study.

Overview:

Over the past two decades, Colombia has undergone a period of economic

transformation, driven by a combination of sound fiscal and monetary policy, increased

investment in infrastructure, and the development of human capital. To improve the business

climate and competitiveness, the government implemented reforms such as the creation of the

National Competitiveness Council, the establishment of a one-stop shop for business registration,

and the streamlining of the tax system. Efforts were also made to improve the investment climate

by creating an attractive foreign investment regime, developing a sound public-private

partnership framework, and facilitating the flow of business information. Additionally, the

government invested in human capital development by increasing access to education, health

care, and basic services, and by utilizing technology to increase access to information, support

innovation and entrepreneurship, and provide financial services to the poor. Finally, the private

sector played an important role, by implementing strategies to become more competitive and

exploiting their competitive advantages.

Based on the case study;

1.This presentation will provide an overview of the history, political and economic development

of Colombia since its conquest by the Spaniards began in 1508.

2.We will discuss the various domestic problems that were affecting Colombia’s political

stability in the 1990s, before exploring the reforms undertaken by President Gaviria. We will

also examine why Colombia’s economic growth in the 1990s was underperforming compared to

its neighboring countries.

3.The presentation will then look at the approaches taken by President Uribe’s administration in

facing the political and economic challenges of Colombia.

4. Finally, we will discuss the various economic clusters of Colombia, as well as the strategies

undertaken by the government to raise Colombia’s competitiveness.

Let us begin by examining the history of Colombia since its conquest by the Spaniards in

1508.

History:

 Colombia was conquered by the Spaniards in 1508, and it gained its independence in

1819.

 Colombia republic was formed in 1886

 After independence, it experienced a period of slow economic growth and civil wars,

including the Thousand Days War (1899-1902).

 In the 1950s, Colombia experienced a period of economic and industrial growth, driven

by the expansion of the coffee industry, the development of infrastructure, and the

promotion of foreign investment.

 In the 1990s, the country faced domestic problems affecting its political stability, such as

an escalating conflict between the government and armed groups, high levels of crime

and violence, and a large informal economy with widespread poverty and inequality.
  President Gaviria implemented market-oriented economic policies to promote economic

growth.

Political Development:

 President Uribe adopted a two-pronged approach to face the political and economic

challenges of Colombia, focusing on fiscal discipline, increased investment in

infrastructure and human capital, and the implementation of reforms to reduce red tape

and bureaucracy.

 He also launched a major campaign against the armed groups and crime syndicates that

had been destabilizing the country.

Economic Development:

 The government implemented a number of strategies to raise Colombia’s

competitiveness, including fiscal incentives for research and development, export

promotion, and the development of public-private partnerships.

 The government also sought to improve the country’s infrastructure, reduce the cost of

doing business, and promote the growth of small and medium-sized enterprises.

 Colombia had a number of economic clusters, including energy and mining,

manufacturing, agriculture, tourism, and financial services.

Question 2
Second, let’s talk about the domestic problems affecting Colombia’s political stability in the

1990s. These included an escalating civil conflict between the government and armed groups,

high levels of crime and violence, and a large informal economy with widespread poverty and

inequality.

Let’s discuss them one by one.

1. Escalating civil conflict between the government and armed groups: In the 1990s,

Colombia was experiencing an escalating civil conflict between the government and

various armed groups, including drug cartels, guerrillas, paramilitaries, and other

organized criminal gangs. These groups had been destabilizing the country for decades

and posed a major threat to the security of citizens.

2. High levels of crime and violence: Colombia suffered from high levels of crime and

violence in the 1990s, which had a negative impact on citizens’ safety and security as well as the

country’s economic and social development.

3. Large informal economy: A large informal economy existed in Colombia in the 1990s and this had

an impact on poverty and inequality levels. The informal economy, which included activities such as

street vending, small-scale production, and informal labor, was largely unregulated and did not generate

tax revenue for the government.

4. Widespread poverty and inequality: Poverty and inequality were widespread in Colombia in

the 1990s, with many citizens living in extreme poverty and lacking access to basic services.

5. Weak public institutions: Weak public institutions were one of the main factors contributing

to the country’s political instability in the 1990s. The government lacked resources and capacity

to effectively implement policies and enforce laws, leading to a lack of confidence in the state.
6. Poor infrastructure: Poor infrastructure and a lack of investment in infrastructure projects

hindered economic development in Colombia in the 1990s.

7. Lack of foreign investment: The lack of foreign investment was another factor that hindered

the country’s economic development in the 1990s. Foreign investors were deterred by the

security situation and weak public institutions, which made it difficult to do business in the

country.

Question 3

Third, let’s discuss the reforms undertaken by President Gaviria.

Reforms Undertaken by President Gaviria:

 Market-oriented economic policies to promote economic growth

 Liberalization of trade

 Privatization of state-owned enterprises

 Establishment of a more open investment climate

 Reduction of crime and violence

 Improvement of the country’s security situation.

Despite these reforms, Colombia’s economic growth in the 1990s was underperforming

compared to most of its neighboring countries due to ongoing security problems and weak

public institutions.

Why Colombia Economic Growth Was Underperforming:

 Ongoing security problems

  Weak public institutions

 Escalating civil conflict between the government and armed groups

 High levels of crime and violence

 Large informal economy with widespread poverty and inequality.

Question 4

Fourth, let’s look at the approaches taken by President Uribe’s administration in facing the

political and economic challenges of Colombia.

Approaches taken by President Uribe

 Adopting a two-pronged approach to facing the political and economic challenges of

Colombia.

 On the economic front, the government sought to enhance economic growth through

fiscal discipline, increased investment in infrastructure and human capital, and the

implementation of reforms to reduce red tape and bureaucracy.

 On the security front, the government launched a major campaign against the armed

groups and crime syndicates that had been destabilizing the country.

 Implementing strategies to raise Colombia’s competitiveness, including fiscal incentives

for research and development, export promotion, and the development of public-private

partnerships.
  Improving the country’s infrastructure, reduce the cost of doing business, and promote

the growth of small and medium-sized enterprises.

 Increasing investment in infrastructure and human capital

 Promoting export activity

 Developing public-private partnerships

 Reducing the cost of doing business

 Promoting the growth of small and medium-sized enterprises.

Question 5

Finally, let’s discuss the economic clusters of Colombia.

Economic Clusters of Colombia

• Energy and Mining: Colombia has a large mining sector, with significant reserves of coal, gold,

and oil. The energy sector is also a major contributor to the economy, with hydroelectric power

being the primary source of electricity.

• Manufacturing: Colombia has a large manufacturing sector, with industries such as automotive,

electronics, textiles, chemicals, and food production.

• Agriculture: Colombia has a diverse agricultural sector, with some of the world’s most

productive coffee and cocoa plantations. Other important crops include bananas, sugar cane, and

rice.
• Tourism: Colombia has a large and growing tourism sector, with a wide range of attractions for

both domestic and international tourists.

• Financial Services: Colombia has a well-developed financial services sector, with a large

number of banks, financial institutions, and insurance companies.

Strategies Undertaken by the Government to Raise Colombia’s Competitiveness

 Fiscal Incentives for Research and Development: To stimulate innovation and the

development of new technologies, the government has implemented a number of tax

incentives and grants to support research and development.

 Export Promotion: The government has implemented policies to promote the export of

Colombian goods and services, including the reduction of tariffs and the implementation

of preferential trade agreements.

 Public-Private Partnerships: The government has sought to promote public-private

partnerships as a way of stimulating investment and job creation.

 Infrastructure Improvements: The government has invested in the upgrade of

infrastructure in order to reduce the cost of doing business and increase the

competitiveness of Colombian industries.

 Reduction of Red Tape: To reduce bureaucracy and simplify the regulatory environment,

the government has implemented a number of measures to reduce red tape.

 Promotion of Small and Medium-Sized Enterprises: The government has implemented

measures to support the growth of small and medium-sized enterprises, including tax

incentives and access to credit.

Conclusion:

Our case study of Colombia provides an in-depth look at the government and private

sector strategies that have enabled the country to become more competitive in the global

market. It demonstrates the importance of sound fiscal and monetary policy, investment

in infrastructure, and development of human capital as catalysts for economic growth and

development. It also highlights the role of the private sector in driving Colombia's

economic transformation, and the role of the media and the diaspora in promoting

awareness and contributing to the country's economic growth. This case study serves as a

valuable resource for those interested in learning more about the country's economic

transformation and the strategies that can be implemented to promote economic growth.