Document 3803

Conpes Document 3803

National Council for Economic and Social Policy (CONPES) Republic of Colombia National Planning Department

POLICY FOR THE PRESERVATION OF THE COFFEE CULTURAL LANDSCAPE OF COLOMBIA

DNP: DDS-SE, DDU-SVDU, SDAS, DIFP-SPSC, OAJ Ministry of Agriculture and Rural Development Ministry of Environment and Sustainable Development Ministry of Commerce, Industry and Tourism Ministry of Culture Ministry of Education Ministry of Finance and Public Credit Ministry of Mines and Energy Ministry of Information Technologies and Communications Ministry of Transportation Ministry of Labor Ministry of Housing, City and Territory Department for Social Prosperity (DPS) National Learning Service (SENA)

Bogotá D.C., February 13, 2014

Summary

The declaration of the Coffee Cultural Landscape of Colombia (CCLC) as world heritage by UNESCO, besides being the recognition of a region that has demonstrated its Outstanding Universal Value, commits the Colombian State to its preservation and conservation.

This document aims to formulate a specific policy for the Coffee Cultural Landscape of Colombia, in order to enhance its productivity and sustainability. To this end it defines a set of strategies directed at improving the conditions for preservation based on a plan of action defined by the government entities involved in the management of the CCLC. These actions seek to preserves this heritage and ensure its economic, cultural, social and environmental sustainability.

Classification: E411

Keywords: Coffee Cultural Landscape of Colombia (CCLC) - UNESCO - Management Plan - Federation - World Heritage - Declaration – Coffee Growing - Coffee Sector - Institutionality - Values – CCLC Region.

CONTENT

I. INTRODUCTION...... 4

II. BACKGROUND...... 4

III. DIAGNOSIS...... 6

IV. OBJECTIVES...... 46

V. PLAN OF ACTION...... 47

VI. FINANCING...... 58

VII. RECOMMENDATIONS...... 59

I. INTRODUCTION

This paper presents to the consideration of the National Council for Economic and Social Policy (CONPES) the policy guidelines for the preservation of the Coffee Cultural Landscape of Colombia (CCLC) as a productive and sustainable environment, and as a reference point for the comprehensive development of territories that comprise productive cultural landscapes, so that cultural heritage becomes an engine of social development.

The document presents in its first part the background and conceptual framework, which set out the reasons that led the National Government to formulate the policy guidelines contained herein. The second part contains a diagnosis that references the cultural diversity of the CCLC, its natural riches, the social conditions of its inhabitants, the dynamics of coffee production and tourism in the region, the road infrastructure in the departments that contain the Landscape, and a brief description of the interactions between the municipalities covered by the CCLC and the system of cities of the Coffee Triangle.

Chapters IV and V present the objectives and plan of action. The latter is composed of five strategies aimed at reinforcing the social appropriation of the cultural heritage of the CCLC, ensuring its conservation and environmental sustainability and preserving the coffee industry in the region, improving accessibility and promoting articulated tourist services, and incorporating strategic projects to strengthen the coordination between the municipalities of the CCLC and the city system that has been consolidated in the Coffee Triangle. Chapter VI presents the funding scheme and, in conclusion, Chapter VII lists the recommendations.

II. BACKGROUND

In 1972 the General Conference of the United Nations Educational, Scientific and Cultural Organization - UNESCO adopted the "Convention on the Protection of the World Cultural and Natural Heritage", thus creating the World Heritage Committee1. The committee adopted in

1 The current members of the Unesco World Heritage Committee are: Germany, Algeria, Cambodia, Qatar, Colombia, United Arab Emirates, Estonia, Ethiopia, France, India, Iraq, Japan, Malaysia, Mali, Mexico, Russia, Senegal, Serbia, South Africa, Switzerland and Thailand.

1992 the category of cultural landscapes. The term cultural landscape "embraces a diversity of manifestations of the interactions between humanity and the natural environment." According to the committee, "the cultural landscapes should be selected on the basis of their outstanding universal value and their representation in terms of a clearly defined geo-cultural region and, consequently, on their ability to illustrate the essential and distinct cultural elements of these regions."2

For its part, Colombia became part of the "Convention Concerning the Protection of the World Cultural and Natural Heritage" with Law 45 of 1983. In turn, article 4 of Law 397 of 19973, as amended by Article 1 of Law 1185 of 2008, defined the makeup of the Cultural Heritage of the Nation thus:

"The cultural heritage of the Nation consists of all the material goods, intangible manifestations, products and representations of culture which are the expression of Colombian nationality, such as (...), the cultural landscape, the customs and habits, as well as material goods, movable and immovable property to which is attributed, among others, particularly rich historic, artistic, scientific, aesthetic or symbolic value in the artistic, architectural, urban, archaeological, linguistic, sound, musical, audiovisual, film, testimonial, documentary, literary, bibliographical, museological or anthropological spheres."

In this context, the Ministry of Culture presented to UNESCO the nomination of the Coffee Cultural Landscape of Colombia to the list of world heritage, which became effective on June 25, 20114 with a declaration of outstanding universal value. Consequently, Resolution 2079 of 2011 of the Ministry of Culture declared the Coffee Cultural Landscape of Colombia as Cultural Patrimony of the Nation.

Concurrently with this declaration, the Ministry of Culture designed a management plan for the CCLC, which aims to contribute to its preservation and promote the appropriation of its cultural

2Guías Operacionales para Implementación de la Convención de Patrimonio Mundial. Centro de Patrimonio Mundial, UNESCO, Paris, 1999. 3“Ley General de Cultura”, whereby norms on cultural heritage, stimulus and encouragement to culture are dictated and the Ministry of Culture is created. 4 Decision 35 COM 8B.43 of the World Heritage Committee.

5 value among the population, in harmony with the economic activities taking place in the area. This plan was a requirement for the inscription of the element on the World Heritage List of UNESCO.

The plan establishes as management principles of the Landscape the economic and social welfare of its inhabitants, the appropriation of the cultural heritage and environmental sustainability. However, it is worth mentioning that it is necessary to strengthen the management plan with a clear and specific public policy aimed at maintaining the sustainability of the landscape in the future.

III. DIAGNOSIS

The CCLC is comprised of 47 municipalities that constitute the main area, and 4 municipalities that make up the zone of influence5. The municipalities of the main area are distributed in the departments of Caldas (17), Quindío (11), Risaralda (10) and Valle del Cauca (9), as shown in Table 1. The total urban area of these municipalities is 3,500 hectares. The rural area, including the main area and its area of influence, comprises 340,000 hectares where close to 500,000 people live. The CCLC is made up of 858 coffee settlements (veredas), and is not only a place of cultural significance, but an engine of agricultural activity and tourism6.

Table 1. Municipalities and Departments of the CCLC

Departments Municipalities

Aguadas Anserma Aranzazu Belalcázar Chinchiná Filadelfia La Merced Manizales Neira Pácora Caldas Palestina Riosucio Risaralda Salamina San José Supía Villamaría Viterbo * Apía Balboa Belén of Umbria Guática La Celia Risaralda Marsella Pereira Quinchía S. Rosa de Cabal Santuario Dosquebradas * Mistrató *

5 Not in every case the zonification of the CCLC corresponds to the total area of each one of the municipalities. In some cases only a subset of the settlements that make up the municipality is included. 6 The cartographic base model that was used to define the main area and the buffer zone was designed by the universities Católica Popular de Risaralda and Tecnológica de Pereira.

Armenia Buenavista Calarcá Circasia Córdoba Quindío Filandia Génova Montenegro Pijao Quimbaya Salento Alcalá Ansermanuevo Caicedonia El Águila El Cairo Valle del Cauca Riofrío Sevilla Trujillo Ulloa Argelia * * The area of influence of the CCLC covers the coffee settlements of these municipalities.

Map 1. Location of the CCLC

A. Cultural diversity of CCLC

i. Architecture (Tangible Cultural Heritage)

Until the nineteenth century, Colombia's traditional domestic architecture was determined by the Spanish influence, specifically from the southern Peninsula, and through it, by Arab culture. This tradition of spatial distribution, materials and construction techniques defined the domestic architecture of the CCLC, which was initially used during the colonization of Antioquia. Later, towards the end of that century, the architecture of the region was strengthened and redefined as a result of the economic boom produced by the coffee economy.

The CCLC is known for its particular forms of housing and human settlements. The characteristic grid layout of the Leyes de Indias of the sixteenth century, learned by the colonists in their villages of old Antioquia, becomes unique in the CCLC due to its adaptation to the steep mountain slopes and the broken and winding topography of a land that allows the coffee farmers to derive most or all of their income, the product of the coffee harvest. Another feature of the CCLC is that “The house is both the living quarters and the center of economic activity."7

In the CCLC the urban areas of the following municipalities stand out: Aguadas, Belalcázar, Chinchiná, Neira, Pácora, Palestina, Risaralda, Salamina and San José in Caldas; Montenegro, Salento and Filandia in Quindío; Apía, Belén de Umbria, Marsella and Santuario in Risaralda; as well as El Cairo in Valle del Cauca. These are townships that retain a direct connection with the environment and with the human scale, reflected in the urban layouts and the maintenance of the building and ornamental elements that characterize all the Coffee Triangle.

With respect to special buildings or monuments8, parish churches and hospital chapels, cemeteries and some religious schools stand out for their architecture. Most of the temples that exist today were built in the last decade of the nineteenth century and early twentieth century, following a stylistic trend of European lineage known as historical eclecticism.

In the case of religious architecture this trend presents two types of solutions: the aesthetic, inspired by "classical" motifs, as in the churches of Aguadas, Pácora, Salamina and Salento, and the "neo-

7 Ibid. 8 The material properties declared as monuments, areas of historic, archaeological or architectural conservation, historical sites, or other names that prior to the enactment of Law 1185 have been the subject of such declaration by the competent authorities, are considered as Properties of Cultural Interest (BIC). In the area of the CCLC there are currently 66 Properties of Cultural Interest at the National Level.

9 gothic" trend, present in the cathedral and parish churches of the Immaculate Conception and the Sacred Heart in Manizales; the church of San José in Pereira, and the churches of Calarcá, Chinchiná, Guática, Marsella, Santa Rosa de Cabal and Sevilla. Cemeteries are also architectural elements of great importance; those of Marsella, Salamina and Circasia deserve special mention.

Despite the wealth of these values -architectural and urban-, some of them are at risk as a result of the loss of traditional building knowledge and techniques, which threatens the immovable cultural heritage of the CCLC, particularly in urban areas. Consequently, although some heritage buildings have been preserved, there are no concrete plans and actions to promote the use of traditional construction techniques, both for new buildings and to ensure the conservation and maintenance of existing ones.

To this we have to add the appearance of new construction methods and materials that are foreign to the traditional local milieu. As a consequence, the characteristic spatial and ornamental elements of the buildings in urban areas have been deleted or are changed, e.g. by the altering of the size and proportions of doors and windows, which reduces the height of the ceilings. This progressive change is also linked to the rise of standardized and prefabricated construction elements, which are cheaper and do not require traditional knowledge in for installation.

ii. Traditions and manifestations (Intangible Cultural Heritage)

Coffee defines the lifestyle of the inhabitants of the municipalities of the CCLC and around it a culture rich in traditions and in intangible and tangible manifestations that are passed from generation to generation –in direct relation with the territory, the architecture and the landscape– has arisen. Among the most representative cultural manifestations of the coffee cultural landscape these stand out:

 Characters and objects associated with coffee production or to the colonization of the territory that have become icons. Among these we can highlight the arriero, the character who helped open pathways to new territories; the mule, "inseparable companion of the arrieros," representing "the strength and resilience of a workhorse, capable of going through the wildest and most dangerous places of the Colombian territory" (Botero,

2007); ax and machete, instruments used for the opening of roads and subsequently for the weeding of crops; the Willis Jeep or yipao, the American car of the forties and fifties, which is still used massively in the region to transport the coffee from the farms to the stores, but also people and any other cargo in rural areas; and Juan Valdez, a symbol that identifies Colombian coffee all over the world.  The culinary knowledge and gastronomy, mainly represented by a type of food ("paisa" or "montañera") but also for its generosity, modes of preparation, presentation and appeal to the senses. These are in turn a reflection of the self-reliance of the farmers in the region, since they incorporate in the food much of the produce obtained in a coffee farm.  Traditional sites that are or were economic, social and recreational meeting places, including the roadside inns in the rural areas, and the cafés in the cities. The former fulfilled "an intermediary role in the distribution network of products and between the small farmers and the big city. The arrieros provided goods to the inns usually located on the side of the road or at a crossroads, finding in them a place to rest"9. The cafés, on the other hand, are places "where words are shared for endless hours, the coffee of the day is negotiated, and the country is fixed" and where "the pasillo and the tango, and deep moans coming from a loving or a broken heart share the room" (Zuluaga, 2007, p. 18). These places are still the center of the social and productive life of the municipalities of CCLC.  The clothing, represented in the attire of the arriero, whose most distinctive objects, the hat, the poncho or ruana and the carriel are still used by many coffee producers.  The festivities associated directly with the coffee culture, such as the National Coffee Festivities in Calarcá; the Feast of the Canasto in Filandia; and the Festival of the Harvest in Pereira. Other holidays, fairs or festivals that promote traditional music or folklore, religious fervor or the Indian or Spanish heritage, are the Carnival of Riosucio; the Feast of the Guadua in Córdoba; the Fair of Manizales; the Pasillo Festival in Aguadas; the Bandola Festival in Sevilla; the National Competition of Duets in Armenia; the National Competition Bambuco in Pereira; and the “alumbrados” of Quimbaya and Salamina.  Handcrafts related to the coffee culture, such as the aguadeño hat, the baskets or canastos of Filandia, wooden objects, sculptures and other movable cultural goods.

9http://www.calarca.net/arrieria.html

 Myths and legends that persist in rural areas of the region, such as those featuring mythical characters like the Madremonte, the Patasola, the Hojarasquín del monte, the Mohan or Muán and the Putas of Aguadas, among others.

In addition to the above manifestations, it is to note that the importance of coffee in the regional and national life has inspired many artists. Both popular and academic musical pieces have been inspired by coffee: among the former, bambucos such as Cafetal and Campesina chapolera by Luis Carlos González; Sangre de café by Carlos Botero; the pasillo Flores de café by Ramón Jaramillo; Mi cafetal by Crescencio Salcedo and El cafetal by Gonzalo Vergara. In academic music, meanwhile, the Sinfonía del café by Fabio González stands out. In like manner we have to mention the paintings of Alipio Jaramillo, Gonzalo Ariza and especially Eduardo Ramírez Castro, who with his series Historias del Café, Crónica Visual de Caldas and Adiós al café is the painter "who has made the most important work on the subject of coffee"10.

Despite the wealth of Intangible Cultural Heritage (ICH) referenced above, it faces the risk of extinction given the following difficulties: i) Lack of movement and socialization of the different cultural expressions and manifestations; ii) Lack of training of cultural managers and the community at large in the formulation of cultural projects for intangible heritage; and iii) Weak public institutional coordination for achieving the development and promotion of cultural activity. This comes down to a lack of social appropriation of the cultural heritage that contributes to the loss of identity of the population of the CCLC.

With regard to cultural institutions in the CCLC it should be mentioned that only 12.8% of the 47 municipalities that comprise it has a departmental office or decentralized institute responsible for cultural issues. In the remaining municipalities, the issue is linked to other spaces in mixed secretariats (e.g., of Culture and Sports or of Education and Culture) or other, such as the Secretariat of Social Development, of Planning or, at times, it is attended to by the mayor's office.

10 Osorio et al (2008).

In addition to the above, only 72% of the municipalities have a House of Culture, places that foment the practice of and access to cultural activities.

B. The natural wealth of the CCLC

In the CCLC biodiversity is combined with a physiography of valleys and gentle and rugged slopes, of glaciers and volcanoes at the top of the mountain range and of native forests and biological corridors, which are strategic to the conservation of world biodiversity.

The CCLC, located in the Coffee Triangle Eco-region11, is also known for being a territory with priority ecological units for the retention and regulation of water, as the páramos and subpáramos. Its water potential is represented by 38 major basins, 111 lesser supplying basins as well as lakes, ponds, reservoirs and groundwater.

One of the priority ecological units of the Eco-region of the Coffee Triangle is the Nevados National Park, comprising an area of 58,300 hectares in the departments of Caldas (municipality of Villamaría), Risaralda (municipalities of Santa Rosa de Cabal and Pereira), Quindío (municipality of Salento) and Tolima (municipalities of Ibagué, Anzoategui, Santa Isabel, Murillo, Villahermosa, Casabianca and Herveo). The water that comes and is regulated by this park and its hinterland caters the needs of more than two million people. Therefore, its protection and conservation becomes a key element for socio-environmental development and an articulating axis for regional conservation initiatives.

i. Natural threats

It should be noted that there are some natural threats that can affect the environmental, productive and cultural riches of the CCLC. Among the main threats that have been identified12 are landslides

11 Eco-regions are territorial units whose objective is environmental planning. These units are defined based on three criteria: i) Presence of priority ecological units for water retention and regulation; ii) A territory shared by several corporations; iii) A trajectory of working together on environmental management. 12 CARDER (2004). “Agenda para el desarrollo sostenible de la ecorregión Eje Cafetero, dimensión ambiental”. Pereira.

13 or mudslides, volcanic eruptions, seismic movements and climatic phenomena. The events reported in the zone for the period from 1998 to march 2013 are as follows:

 Landslides or mudslide events

In the Coffee Eco-region residual soils are of considerable thickness, which together with the loss of vegetation cover, rainfall intensity and slope can generate landslides.

According to the historical occurrence of events recorded between the years 1997-2008 the western region of the country (Antioquia, Caldas, Risaralda, Quindío, Chocó, Cauca, Nariño and Valle del Cauca), in which the eco-region falls, reported the highest rate of events (3,806 of 5,652 corresponding to 67%) and the highest overall rate of damage nationwide, with 2,064 casualties (51.93% of the total), 5,559 homes destroyed (47.89% of total), 112,396 houses affected (91.07% of the total) and 2,239,290 people affected in some manner, corresponding to 77.39% of all those affected in this period in the country.

Landslides have a high incidence rate because they affect the road infrastructure, the townships and the fields. It is also to note that the slope of the land where the crops are located in the CCLC, most of them with an inclination between 27° and 36°, is considered to be highly or very highly susceptible to landslides.

 Volcanic eruptions

The eco-region has five active volcanoes: i) Nevado del Ruiz, ii) Nevado de Santa Isabel, iii) Cerro Machín, iv) Cerro Bravo and v) Nevado del Tolima. Of the above, the Nevado del Ruiz and Cerro Machín volcanoes show the most activity, with fluctuations in the release of seismic energy and other geophysical, geodesic and geochemical parameters13. For the Nevado del Ruiz, the most activity occurred in early 1982 with an outcome in the episode of November 13, 1985, when "there was a significant reactivation that caused more explosive eruptions and the great mudflow which

13 SERVICIO GEOLÓGICO COLOMBIANO. (2012) Observatorio Vulcanológico y Sismológico de Manizales. Informe de Actividad del Complejo Volcánico Cerro Bravo-Cerro Machín. Enero. Manizales.

14 destroyed the town of Armero to the east, the current of the Claro river destroyed some peripheral areas of the city of Chinchiná to the west (...)14".

 Seismic movements

Colombia is located in the northwest corner of South America, where three main tectonic plates converge: South America, Nazca and Caribbean; as well as several systems of secondary plates that run parallel to the foothills of the three cordilleras.

In the region of the CCLC the valleys of the river Cauca and Patía separate geographically the Central from the Occidental Cordillera; furthermore, these valleys are traversed by the system of active faults Cauca-Romeral, which also contains a seam zone, separating materials of continental affinity (Central Cordillera) with rocks of oceanic affinity (Occidental Cordillera)15, which explains its high seismic activity.

One of the biggest seismic events registered in the zone was the earthquake of 25 January 1999 with a magnitude of 6.4 on the Richter scale, which greatly affected 35 municipalities in the CCLC departments of Quindío, Risaralda and Caldas, as well as in the neighboring departments of Valle del Cauca and Tolima16. The main damages affected the cities of Armenia and Pereira.

 Climatic phenomena

In July 2006 a fire occurred in the Nevados National Park that affected approximately 3,200 hectares and 30 wetlands known to be sources of water for the population and the productive sectors of the area.

It should be noted that the coffee industry is affected by climatic phenomena such as El Niño and La Niña. For example, as a result of the cold wave in 2010 and 2011, phytosanitary problems

14 IDEAM (2012) “Glaciares de Colombia, más que montañas con hielo”, noviembre, Bogotá. P. 78-80 15National University of Medellín. Available online: http://www.unalmed.edu.co/rodriguez/METALOGENIA/geologia%20colombia.htm 16 Based upon http://www.osso.org/docu/tesis/2002/aproximacion/movimientos.pdf

15 appeared: it led to historical figures in the levels of coffee rust infection, coffee growing soils were eroded to a high decree and the productivity of the plantations significantly decreased.17

During this period Cenicafé, through its network of climatological stations, monitored the main climatic variables, obtaining the following results:

- Precipitation: rainfall in coffee areas were 33% above the historical average, the increase in some regions was between 48% and 57%; - Solar brightness18: it decreased on average by 13%, which means that coffee plantations were subjected to 83 days without receiving effective sunlight, which is vital for the development of the blossoms and the productivity of the fields; - Temperature: it fell 0.8° C below the historical average, with regional variations that reached even -1.3 ° C and significantly affected the productive environment of the plant.

ii. Environmental pollution

Finally, another risk factor to consider in the CCLC is environmental pollution. The inappropriate use of pesticides, fertilizers and other agrochemicals by the coffee industry and other agricultural activities, results in contaminated water discharges reaching water sources. This is the case of the so-called aguas mieles (wastewater generated in the processing of coffee) that produce side effects on the environment such as oxygen depletion and the consequent risk to aquatic ecosystems.

In addition, the use of agrochemicals alters the natural composition of the soil, changing its physical and chemical properties and limiting its further use for productive activities. iii. Mineral riches in the CCLC

17 NATIONAL COFFEE GROWERS FEDERATION (2012), “Sostenibilidad en Acción 2011”. Bogotá. 18 Increased cloudiness associated to the recorded level of rainfall brought about a decrease in sunshine hours and consequently in the solar power plants require for photosynthesis.

Currently, in the areas of the CCLC there are 200 existing mining permits granted for the mining of construction materials (63.5%); precious metals (29.5%) (gold, silver, platinum); carbon, manganese, nickel, industrial minerals, etc.19

Table 2. Mining Permits in Force in the Area of the Coffee Cultural Landscape20

No. of DEPARTMENT Overlay Area (Ha.) Titles

ANTIOQUIA 1 0.34 CALDAS 110 21,549.03 QUINDÍO 26 5,174.19 RISARALDA 21 4,600.34 VALLE DEL CAUCA 6 183.55 CALDAS - RISARALDA 16 5,244.84 CALDAS - ANTIOQUIA 2 604.32 QUINDÍO – RISARALDA 1 31.36 QUINDÍO – VALLE DEL CAUCA 16 364.53 200 37,752.52 Source: Cadastre and Mining Registry Administration - ANM - Cadastre of February 10, 2014

The department of Caldas has been traditionally a coffee growing and mining department, since it has the most number of municipalities making up the CCLC in comparison to other departments; likewise it has 110 mining permits inside the area of the CCLC, which shows that both activities have coexisted in harmony over time. The CCLC has a varied topography made up of valleys, mountains, volcanoes and glaciers, which indicates a varied geological composition. Its formation and evolution had multiple events that enriched the preexisting rocks with valuable minerals, which have given the department of Caldas a great mining potential in its territory.

19 National Agency for Mining, Mining Cadastre at August 12, 2013. 20 Ministerio de Minas y Energía (2012). “Informe Técnico Jurídico-Paisaje Cultural Cafetero”. Bogotá.

Graph 1. Distribution by mineral of mining permits in the Coffee Cultural Landscape

Materiales de construcciòn

30% Metales preciosos (Oro, Plata y Platino)

64% Otros

Source: Cadastre and Mining Registry Administration - ANM - Cadastre of August 12, 2013

According to information in the Mining Registry, updated February 10, 2014, 26.5% of the permits (53) is in operational phase; 31% (62 permits) in construction and assembly; 42.5% in exploration (85 permits). Some of the activities of the last phase that generate environmental impact include the preparation of access roads, topographic and geological mapping, establishment of camps and auxiliary facilities, geophysical works, hydrogeological investigations, trenching and opening of wells for reconnaissance and sampling.

In the operational phase, the environmental impacts generated by mining projects should be subject to special monitoring, specifically in relation to the management of the vegetation cover, the discharge of chemicals and the protection of water sources.

Currently there are 113 applications for concession contracts for the exploration and extraction of minerals: copper, manganese, building materials, precious metals, nickel, gold, and other minerals; and 90 applications for legalization for the exploration and extraction of minerals such as building materials and gold.

Mining permits in areas of relevance for the biodiversity of the CCLC.

According to current legislation, the areas excluded from mining are the National Natural Parks, Regional Natural Parks and the Protective Forest Reserves (Law 685 of 2001) as well as páramo ecosystems and the Ramsar wetlands (Law 1450 of 2010). However, within other categories of protected areas comprised in the CCLC and surrounding areas of the National Natural Parks Los Nevados, Tatamá and Selva de Florencia, there are mining permits that require special monitoring and regulation by environmental and mining authorities to avoid degrading the environmental features that ensure the preservation of the CCLC.

The following map shows the mining activity in the area, according to contract requests and requests for legalization, as well as existing permits:

Map 2. Mining activity in the area

Source: Mining Cadastre.

Although existing mining rights granted prior to the date of registration of the CCLC in the World Heritage List are being audited by mining authorities21, mining, the extraction of building materials, other extractive activities and infrastructure projects could generate large-scale impacts

21 Informe Técnico Jurídico-Paisaje Cultural Cafetero. Ministerio de Minas y Energía, Bogotá, junio de 2012.

19 on the outstanding universal value of the CCLC and the quality of life of its residents. The impacts could be of socio-economic, landscape, cultural and environmental order.

As already mentioned in this section, there are several risk factors that may affect the integrity of the CCLC (natural hazards, environmental pollution and illegal mining, among others). These situations or factors have not been addressed by the respective competent authorities, which is evident in the incipient updating of the relevant Land Management Plans (POT), which were mostly formulated over 10 years ago, with development visions that are inconsistent with the socio-economic profiles of their municipalities, with guidelines for the use and occupation of their territories which are not harmonized with the new regulations on rural land planning, risk management, climate change, and protected areas. This situation makes the territory of the CCLC very vulnerable to developmental processes that do not contribute to its sustainability.

C. Social conditions in the CCLC

i. Labor market

In general, the size of the workforce in these departments has remained stable. This is confirmed by the evolution of the global participation rate (GPR) between 2002 and 2012. In Quindío the GPR increased from 63.5% to 61.6% over that period. In Risaralda this indicator increased from 63.8% to 64.3% and in Valle from 64.4% 65.6%. Unlike the previous departments, in Caldas the pressure of the population on the market has been declining; during the reference period the GPR decreased from 61.8% to 53.4%.

In the four departments that share the influence zone of the CCLC unemployment rates are higher than the national. In 2012 the highest unemployment rate was seen in Quindío (15.4%), followed by that of Risaralda (14.8%), Valle (13.4%) and Caldas (10.1%). In the last year the first three departments were also those who had the highest unemployment rates nationwide.

Table 3. Unemployment rate for CCLC departments Unemployment 2002 2005 2008 2012 rate Caldas 16.3 14.0 11.9 10.2 Quindío 20.0 19.5 16.6 15.4 Risaralda 16.4 14.3 12.6 14.8 Valle 16.3 12.7 12.8 13.4 Source: DDS, SE Calculations, based on the Permanent Household Survey (2002 and 2005) and the Great Integrated Household Survey (2008 and 2012) of DANE.

It should be noted that in Risaralda and Valle the reduction in the unemployment rate was slower compared to the other two departments. From 2002 to 2012 the decline in percentage points was 1.5 pp and 2.9 pp, respectively. In Caldas and Quindío the reduction during the same period was 6.2 pp and 4.6 pp, respectively.

Graph 2. Participation in total occupation of the country and percentage change in employment between 2011 and 2012

12 9,9 10

6 % 4,8 3,7 4 2,5 1,8 2,0 2 1,1 1,4

0 Quindío Caldas Risaralda Valle

Participation in total occupation of the country 2012 Variation of occupied population 2011-2012

Source: DANE

Each of the departments in the Coffee Triangle has a share in total employment close to 1.5%. Unlike these, Valle contributes about 10% of total employment in the country. In the last year the occupancy rate in these departments was about 50%. In 2012 the respective occupancy rates were 48% in Caldas, 52.1% in Quindío, 54.7% in Risaralda and 56.8% in Valle. The largest dynamic in employment occurred in Quindío. In this department the percentage change in the employed from 2011 to 2012 was 4.8%, while in Caldas, Valle and Risaralda the change was 3.7%, 2.5% and 1.4%, respectively.

In general, the departments that share in the CCLC present labor market indicators that reflect less favorable conditions compared to the national average.

ii. Poverty

According to the latest figures (2012), Caldas (35.4%) and Quindío (38.9%) recorded incidents of monetary poverty higher than the national average (32.7%). In contrast, Risaralda (28.4%) and Valle (26.9%) are below the national figures.

Regarding the evolution of this indicator, over the last 10 years (2002-2012) the four departments registered a decrease in the percentage of people in poverty. In percentage points the respective reductions were of 10.7 pp in Caldas, of 8.2 pp in Quindío, of 9.1 pp in Risaralda and of 12 pp in Valle. Although these results are favorable, it should be noted that the pace of poverty reduction has been lower than the nationwide figure. In the same period the national incidence decreased by 17 pp.

Graph 3. Monetary poverty at the departmental level

Graph 4. Incidence of multidimensional poverty (IMP) at the departmental level 2005

46,1%

41,6% 41,2%

38,8%

IPM

Caldas Quindio Risaralda Valle del Cauca

Source: DNP Calculation - SPSCV with 2005 Census data

According to the Multidimensional Poverty Index (MPI) in 2005 Caldas was the department with the highest incidence (46.10%)22. The differences between urban and rural areas in this department are significant. While in urban areas the incidence of multidimensional poverty that year was

22 Figures for 2005 based on information from the Census of Population and Housing. The Quality of Life Survey, official source for periodically compiling estimates of multidimensional poverty, only allows figures at the regional level. This is the reason why figures of the 2005 Census are used, because it is the only source on the Multidimensional Poverty Index (MPI) at the municipal and departmental levels.

35.7%, in rural areas the percentage was almost double (72.5%). Of the 15 variables considered in the MPI23, the highest percentages of deprivation in Caldas correspond to informal employment (85.6%), low educational attainment (65.5%) and high rate of economic dependence (40.3%). The highest percentages of poverty by MPI among the municipalities24 that are part of CCLC are recorded in Filadelfia (72.7%), San José (71.8%) and Risaralda (70.9%).

In 2005 multidimensional poverty in Quindío was 41.6%. Although differences between urban and rural areas are also present, they are fewer than those recorded in Caldas. In the urban area the incidence was 38.8% and in the rural area 59.8%. Similarly, the most frequent deprivations among households of the Quindío department are informal employment (88.7%), low educational attainment (63.7%) and a high rate of economic dependence (40.9%). In this department the CCLC municipalities with highest percentages of multidimensional poverty in 2005 were Génova (67.2%), Córdoba (60.4%) and Pijao (59.3%).

In the same year, Risaralda recorded an incidence of poverty by MPI of 41. 2%. In the urban area the corresponding percentage was 33.2% and in the rural area 68.3%. The deprivations associated with human capital and the labor market also predominated. The municipalities with the highest levels of multidimensional poverty in 2005 were Balboa (70.4%), Quinchía (69.9%) and La Celia (67.8%).

Of the four departments, Valle del Cauca registers the lowest levels of multidimensional poverty (38.7%). In urban areas, the incidence in 2005 was 35.7% and in rural areas 58.8%. The percentages of deprivation for the three variables of the MPI listed above are similar to those described for other departments. Only in the case of low educational attainment the percentage of deprivation is slightly lower (58.6%). Among the municipalities of interest, El Cairo is the one with higher levels of multidimensional poverty (78.1%), followed by Ansermanuevo (72.1%) and El Águila (64.5%).

In general terms, the poverty diagnosis can be summarized as follows:

23 For a description of the 15 variables included see Annex 1. 24 The figures for the municipalities that are part of the CCLC can be found in Annex 2.

 The rate of reduction of monetary poverty in the departments of the CCLC in the last decade is lower than that recorded nationally.  The multidimensional poverty in these departments is lower than the national total (48.9%). The differences between urban and rural areas are striking and households face deprivations associated primarily with low human capital accumulation and high labor informality.

Both the results of labor market variables and those associated with poverty levels that occur in the region should be considered in the context of the economic activities that dominate the region. Next, mention will be made of the coffee industry, around which the outstanding value of the CCLC has consolidated.

iii. Housing

According to the Census of 2005, 25.6% of Colombia's population lived in rural areas and had a housing deficit of 68.3%. In the departments that are part of the CCLC, this percentage was below the national average: the housing deficit in the department of Caldas reached 53%, while the lowest deficit was in Quindío with 29.41%.

Table 4. Rural Housing Deficit in the Departments of the CCL Department Total Households Households in Deficit Percentage

Caldas 64,216 34,035.82 53.00

Quindío 17,292 5,085.84 29.41 Risaralda 47,344 23,073.1 48.74 Valle del Cauca 141,651 58,656.67 41.41 Source: Calculations by DNP-DDRS (Census of 2005)

When unraveling the housing deficit, it can be seen that the department with the highest quantitative deficit was the department of Risaralda, where 13.85% of households needed to build a new house, while only 9.56% in Quindío were in the same situation. Regarding the qualitative deficit, it can be said that the department in the worst condition was Caldas, where the deficit was

25 approaching 43%. This means that by 2005, 43% of households in Caldas needed improvements to their houses. The qualitative deficit in the departments of CCLC was between 19.85 and 42.82%.

Table 5. Qualitative and Quantitative Deficit in the Departments of the CCL Department Percentage of Percentage of Households Households in in Qualitative Deficit Quantitative Deficit

Caldas 10.18 42.82

Quindío 9.56 19.85 Risaralda 13.85 34.88 Valle Del Cauca 12.40 29.01 Source: Calculations by DNP-DDRS (Census of 2005)

When analyzing the housing deficit of the 51 municipalities that are part of the CCL by department, one can see that in the department of Caldas the housing deficit was between 34.13% and 70.62%; in the department of Quindío it ranged between 14.06% and 76.71%, percentages that correspond to the municipalities of Circasia and Pijao; in Risaralda that percentage was between 32.48% and 75.19% for the municipalities of Pereira and La Celia, respectively; in Valle del Cauca this deficit ranged between 18.81% and 75.58%, figures for the municipalities of Alcalá and Cairo, respectively.

Over the past three years, the Rural Social Housing program (VISR) has given subsidies of about $9,637,000 each to 716 households in 11 municipalities of Caldas that are part of the CCLC. In Quindío the subsidies awarded (approximately $ 214 million) have benefited 30 households in 2 municipalities (Armenia and Quimbaya) of the 11 that are part of CCLC. Similarly, subsidies by $4,500 million have benefited 649 households in Risaralda in 10 of the 12 municipalities that are part of the CCLC. Finally, in the department of Valle del Cauca 2 municipalities (Riofrío and Trujillo) of the 10 included in the CCLC have benefited, where 222 families have received subsidies totaling $3.500 million.

Despite this, the results of the VISR program against the housing deficit in the municipalities of CCLP were not as desired. In the past three years, the rural housing deficit in the four departments

26 has decreased by 0.17% and 1.63% (see Table 6). The analysis at the municipal level leads to the conclusion that the average decline in the deficit in the municipalities of the coffee cultural landscape was 2.15%.

Table 6. Reduction in housing deficit 2010-2013 at the departmental level Department Households with VISR Subsidy Rural Housing Subsidy recipient Housing Deficit recipient deficit reduction households in the households percentage municipalities of the CCLC Caldas 64,216 947 1.47 716 Quindío 17,292 30 0.17 30 Risaralda 47,344 774 1.63 649 Valle del Cauca 141,651 1,259 0.88 222 Preparation: DNP-DDRS with data from the Agrarian Bank

iv. Water and sanitation services

The coverage of water services to urban areas in the municipalities of the CCLC is 99%25, which exceeds the national average by 1 percentage point. In turn, the sewer service coverage is 98%, which is 12 percentage points higher than the rest of the country. However a gap is evident in the provision of services in urban and rural areas, as the rural aqueduct coverage is 66% and that of the rural sewer service is 50%.

With regard to the quality of water supplied to the population, lags between the rural and the urban area are also observed, considering that in urban areas 88% of the municipalities supplied fit water for human consumption; whereas in rural areas only 6% distributes water without risk.

In order to expand municipal coverage and improve standards of delivery of water, sewer and sanitation services, the National Government has financed projects for $49,706 million in the implementation of flagship projects. Added to this, it has funded projects for $61,786 million in

25 Source: Dane Census 2005 – Does not include alternate solutions.

27 the municipalities of CCLC under the Program Water for Prosperity - Departmental Water Plan PAP-PDA of Caldas, Valle del Cauca, Risaralda and Quindío26.

D. The agricultural sector: Economic engine of the CCLC

The international and local context: Symptoms of recovery

The world coffee production has presented an increasing trend over the last decade, with a significant increase in the period 2011/12 to 2012/13, recording a positive percentage change of 9.6%.

Graph 5. World Coffee Production (thousands of 60kg bags)

150.000 145.000 140.000 135.000 130.000 125.000 120.000 115.000 110.000 105.000

100.000

2000/01 2008/09 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2009/10 2010/11 2011/12 2012/13 2001/02 Source: OIC- National Federation of Coffee Growers.

This increase in global production is greatest in Brazil, a country that has gained ground in production over the last decade compared to other producers, reaching a 37% share of the total, as shown in the following graph:

26 Investments carried out in the 2009-2013 period. Of these investments, 64% has been completed, 10% are in the work phase, 15% is in the hiring process and 10% have submitted revision of terms or canceled the projects prioritized by the directing committee of the PAP-PDA.

Graph 6. Participation in global coffee production

39% 37% 35%

19% 16% 14% 14% 12% 12%

6% 5% 7%

2010/11 20100/12 2012/13

Brasil Vietnam Centroamérica Colombia

Source: OIC

Meanwhile, domestic production in 2013 increased significantly, reporting a growth of 40% with respect to the previous year. The figure is significant given the low levels recorded between 2009 and 2012.

Graph 7. Annual registered production (in millions of 60kg bags)

14 12,4 12,6 11,6 11,5 12 10,9

10 8,9 7,8 7,8 7,7 8

0 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Office of Government Advisors on Coffee Affairs.

The increase in production was accompanied by an increase in cultivated area, from 871,000 hectares in 2003 to 974,000 in 2013, which means a growth of 11.8%.

Graph 8. Coffee cultivated area 2003-2013

1.000 980 974 960 940 931 921 914 920

900 887 883 888 878 879 880 871 874

860 Thousandsofhectares 840 820 800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: National Federation of Coffee Growers.

By observing the behavior of the cultivated area by department, Antioquia, Cauca, Huila and Tolima stand out: they significantly increased the cultivated area over the last decade, while

Caldas, Quindío, Risaralda and Valle showed a decrease. This description also shows a shift of the coffee fields towards departments that have not been traditional coffee growers.

Graph 9. Departments with reduced cultivated area

100,0 88,5 77,6 85,9 80,0 68,4 54,3 58,55 52,27 60,0 42,0 44,7 28,9 40,0

20,0 Thousandsof hectares 0,0 Caldas Cundinamarca Quindio Risaralda Valle

2003 2013*

Source: National Federation of Coffee Growers.

Graph 10. Departments with increased cultivated area

154,5 160,00 137,13 128,05 140,00 119,3 120,00 91,6 105,4

100,00 68,5 82,2 80,00 50,3 60,00 42,4 30,8 39,3 21,3 24,5 40,00 11,2 11,5 22,2 17,6 20,00 4,76,8

Thousandsof hectares 0,00

Huila

Cesar

Cauca

Tolima

Nariño

Boyaca

Guajira

Antioquia

Santander Magdalena

2003 2013*

Source: National Federation of Coffee Growers.

The most notable feature of recent years on the domestic industry was observed in the month of January 2014, when production peaked since 2007 to reach 1.01 million bags, i.e., 15 % more than the same month in 2013. In the last four months of the coffee year (October/13-Jan/14), coffee production showed an increase of 34% versus the same period of last year. In turn, observing the last twelve months, February 2013 - January 2014, domestic production registered 11.02 million bags, which is close to historical levels of harvest.

Graph 11. Coffee production, month of January

1.600 1.404 1.400 1.200 1,122 1,125 963 1.011 1.000 876 908 877 800 600 515 535

400 Thosusand 60 kg bags 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Office of Government Advisors on Coffee Affairs

The coffee field renovation program, whose renovated hectares are entering production, and the good weather were the determining factors behind this increase. The chart below shows how renovation has obtained a larger share in the coffee sector in recent years, reaching 341,000 hectares in 2013.

Graph 12. Productive vs. Unproductive Coffee Lots

100% 22% 90% 22% 22% 23% 24% 25% 30% 34% 35% 80% 70% 60% 50% 40% 78% 78% 78% 77% 76% 75% 70% 66% 65% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Productive Total Unproductive Total - 3 years

Note: Unproductive lot is the mobile sum of three years of renovations and new sowings. Source: Office of Government Advisors on Coffee Affairs

Another important event of 2014 is the increase in the international price of the bean, after experiencing a period of decline between 2012 and 2013. By January 2014, the price had rebounded 21%.

Graph 13. International price of coffee

250

200

150

100

Cents of a dollar per pound per dollar a of Cents

jul.-03 jul.-10

dic.-02 dic.-09

oct.-01 oct.-08

jun.-06 jun.-13

feb.-04 feb.-11

abr.-05 abr.-12

sep.-04 sep.-11

ago.-00 ago.-07

nov.-05 nov.-12

ene.-00 ene.-07 ene.-14

mar.-01 mar.-08 may.-09 may.-02 Source: National Federation of Coffee Growers.

Meanwhile, the domestic price of the bean also reflects the upward trend, given the behavior of international prices and the devaluation of the peso. Both factors contributed to an increase in the domestic price of 35% so far in 2014.

Graph 14. Internal Price

1.400.000 1.200.000 1.000.000 800.000 600.000

400.000 Pesos Pesos per load 200.000

03-jul.-07 03-jul.-12

03-dic.-12 03-dic.-07

03-oct.-08 03-oct.-13

03-jun.-05 03-jun.-10

03-feb.-07 03-feb.-12

03-abr.-06 03-abr.-11

03-sep.-06 03-sep.-11

03-ago.-09

03-nov.-05 03-nov.-10

03-ene.-05 03-ene.-10

03-mar.-09 03-may.-13 03-may.-08

Source: National Federation of Coffee Growers.

Precisely, this upward trend of the exchange rate –among other reasons as a result of the actions taken by the Federal Reserve in the US– promises benefits for Colombian exports, which in 2013 had a growth of 35% in comparison to 2012, reaching 9,672 million tons of coffee exported.

Graph 15. Volume of exports of Colombian coffee - calendar year (60kg bags of green coffee equivalent)

12.000.000

10.000.000

8.000.000

6.000.000

4.000.000

2.000.000

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: National Federation of Coffee Growers.

Additionally, the increase in global consumption has an impact on coffee exports. According to the consolidated figures of the International Coffee Organization, consumption has been increasing gradually. For the period 2012-2013 consumption is 18% higher than in the period 2002-2003. The main consumer is the European Union with 58%, followed by the USA and Japan with 30% and 9.8% respectively:

Graph 16. Participation in world coffee consumption - Importing countries

58,2% 57,6% 55,8%

28,7% 28,9% 30,5%

10,1% 10,2% 9,8% 3,0% 3,3% 3,9%

2000 2006 2012

UE Japón EEUU Otros

Source: OIC

All of the above indicates a recovery of the international market of coffee and the coffee sector in Colombia, which is what has happened so far in 2014.

Coffee growing in the departments of the CCLC

At the same time that the coffee growing areas are reduced in the departments of the CCLC area, their participation in the total national production fell from 33.7% to 28.1% between 2006 and 2011. In this period Quindío reduced its stake from 5.4% to 3.7%, Caldas from 11.6% to 10.1%, Risaralda from 7.4% to 6.6% and Valle from 9.3% to 7.7%.

Table 3. Estimated percentage of participation in national coffee 27 production – CCLC Departments -

DEPARTMENT 2006 2007 2008 2009 2010 2011

Quindío 5.4% 5.3% 5.3% 5.2% 5.5% 3.7%

Valle 9.3% 9.1% 8.6% 8.5% 8.0% 7.7%

Caldas 11.6% 11.3% 10.7% 10.8% 10.4% 10.1%

Risaralda 7.4% 7.4% 7.2% 6.9% 6.8% 6.6% Total 33.70% 33.10% 31.80% 31.40% 30.70% 28.10% Source: SICA, National Federation of Coffee Growers of Colombia. 2011.

As noted above, in the departments of the CCLC there is a reduction in the extension of coffee farms, further characterized by their growing more than one product. Also, it is worth mentioning that in the area an increase of alternative land use activities (mainly the tourism boom) is evident. Specifically, the average size of the coffee farms in the departments of CCLC was 12.9 hectares in 1970, while today the average size (including the cultivation of coffee and other uses) is 2.83 hectares: 1.7 hectares for the department of Caldas, 4.7 in Quindío, 2 in Risaralda and 2.9 in Valle del Cauca.

Table 4. Average farm size Total hectares in coffee and other uses 2008 (CCLC DEPARTMENT 1970 1994-1997 2008 2011 settlements) Quindío 13.30 10.20 8.70 6.50 4.70 Valle del Cauca 18,90 9.00 7.10 7.20 2.90 Caldas 10.30 3.80 3.10 3.60 1.70 Risaralda 9.10 4.30 3.60 4.30 2.00 Average 12,90 6.83 5.63 5.40 2.83

* Totality of the coffee area of the department.

27 Estimate of participation based on the area grown with coffee and type of plot. Coffee Information System, SICA. Thousands of 60kg bags of green coffee. Source: SICA, National Federation of Coffee Growers of Colombia. 2011.

Source: FNC, based on Coffee Census of 1970, National Coffee Survey 1994-1997 and Coffee Information System, SICA, 2008 and 2011.

The above figures show the fact that small and medium size coffee farms characterize the CCLC. However, small scale is a characteristic of coffee production nationwide, not just in the CCLC region. This is shown by the fact that 96% of coffee farmers in Colombia have less than five hectares of coffee and these small producers account for 71.4% of total cultivated area (this percentage is 75% in the main area of the CCLC) and 69% of total coffee production. Meanwhile, the 4% of the producers who have more than five hectares accounts for 28% of the total area and 31% of total production.

Graph 17. Structure of coffee land ownership and production

Source: FNC-based on Coffee Information System, SICA

Finally, in the departments of the area there has been a significant reduction in the yield of coffee fields, particularly in the departments of Quindío and Risaralda, where the number of tons per cultivated hectare declined 20% and 30% respectively between 2007 and 2011.

E. The tourism sector: potential of the CCLC

i. The tourism offer

The CCLC has been recognized by the contribution of coffee cultivation to the national economy and, more recently, by its tourism. As a tourist destination, "the activity in the departments of Caldas, Quindío and Risaralda was based for many years in regional events such as the Fair of Manizales (local festival of national importance); natural sites, among which the Nevado del Ruiz, the Santa Rosa hot springs and attractions like the Matecaña Zoo stood out."28

In the late eighties and early nineties, as a response to the crisis of the coffee sector, increased activity was recorded in tourist services, primarily promoted by the Departmental Committees of Coffee Growers of Caldas and Quindío, which initiated the first investments in tourist attractions like the National Coffee Park (located in Montenegro, Quindío) in 1995, and the Recinto del Pensamiento in Manizales in 2000, an attraction that showcases the biodiversity of the coffee region.

The flow of domestic and international visitors to these parks has been growing since then. In 2011 the National Coffee Park received a total of 452,223 visitors29; the PANACA park in Quimbaya, Quindío, received 216,241 visits during the year30. For its part, the National Park Los Nevados was visited in the same year by 44,147 people. In Caldas, The Yarumos Ecopark received 98,868 people31, the Recinto del Pensamiento received 150,000 and the Matecaña Zoo in Pereira received approximately 200,000 visitors during that year32.

In conformity with these activities the Ministry of Commerce, Industry and Tourism undertook the development of the first regional tourism plans: Plan for Tourism Development of Quindío in 1997, "Quindío, Tourist Destination for the New Millennium"; Ten-Year Strategic Plan for

28 Gómez R. Et Al. (2004) “Turismo En El Eje Cafetero. Ensayos Sobre Economía Regional”. Centro Regional de Estudios Económicos. Banco de la República: Manizales. P. 1. 29 Source: Fundación Parque de la Cultura Cafetera 30 Source: Departamento Comercial PANACA 31 Source: Ecoparque de Selva Húmeda Tropical Los Yarumos. 32 Source: Zoológico Matecaña.

Tourism Development of Quindío 2005-2015; Sectorized Tourism Development Plan 2002-2010 of Caldas; and Risaralda Tourism Development Plan 2005-2020. By the means of these documents the consolidation of local tourism institutions was achieved, through "a regional tourism development macro-strategy based on planning axes, market research, product design, promotion and marketing, service delivery and quality and investment attraction "33.

Both processes, planning and tourism development, have allowed the territory to gradually adapt to the increase in demand and supply. As a result, there has been an increment in the flow of visitors to the departments of Caldas, Risaralda and Quindío34. International air passenger traffic grew 118% in the period 2004 to 2012, going from 45,000 to 98,000 passengers. In the first two months of 2013 this growth was 20% higher compared to 2012 (Graph 10).

Graph 18. International air passenger traffic 2004 - 2012

80.000

60.000

Caldas 40.000 Risaralda Quindío 20.000

* No 2012 0 data for 2004 2005 2006 2007 2008 2009 2011 2012 Caldas

Source: Aerocivil. OEE calculations MinCIT

In the case of domestic flyers, positive growth is recorded with annual rates between 4% and 6% for the 2004 to 2009 period. Since the latter year a significant increase occurred, from 440,000 domestic flyers to 625,000 in 2012. For the first quarter of 2013 the growth was 13%.

33 Sector Plan for Tourism, Colombia world class tourist destination. P. 22. 34 Figures for international air passenger traffic are consolidated at departmental level. Therefore, it is not possible to distinguish the contributions of the municipalities of Valle del Cauca that are part of the CCLC from the consolidated departmental figures of the same department.

Graph 19. Domestic air passenger traffic 2004 – 2012

500.000

400.000

300.000 Caldas Risaralda 200.000 Quindío 100.000

0 2004 2005 2006 2007 2008 2009 2011 2012

Source: Aerocivil. OEE calculations MinCIT

From the point of view of the tourism offer in the municipalities of the CCLC, it should be noted that in December 2012 1,935 services were registered in the National Register of Tourism (RTN), 14% more than those recorded in 2010. This growth of tourism services has been concentrated in the accommodation sector with 1,147 companies, corresponding to 59% of the total supply of providers; travel agents and travel agencies operators represent 21%; finally, tourist guide services have a 12% stake. Other services (tourist restaurants, tourist transport companies, car rentals, theme parks, etc.) represent 8% of the total.

Graph 20. Composition of the offer of tourism services providers

Source: National Register of Tourism. Data for December 2012

According to the National Register of Tourism each of the departments has shown the following behavior: In Caldas the number of tourism services grew by 24% between 2010 and 2012, accounted for by an increase of 36% in local accommodation, 34% in tourist guides and 7% in travel agencies; in the same years, the number of tourism services in Risaralda grew by 19%, accounted for by an increase of 47% in tourist guides, 25% in accommodation establishments, and 7% in travel agencies; meanwhile, the number of tourist services in Quindío grew by 6%, explained by an increase of 71% in tourist guides and 67% in travel agencies; in the municipalities of the northern region of Valle the number of tourism services grew by 4%.

Ninety-six percent of the total offer of tourism services is concentrated in the 16 municipalities that separate Manizales from Armenia, a route known as “Trunk of the Coffee Belt”. Thus, tourism development has responded to a high demand because it was consistent with regional and business planning and maintained equilibrium points in order to avoid the displacement of the coffee industry. While the other 31 municipalities that make up the CCLC show that tourism activities have brought no greater pressure to coffee production, it is important, in the medium term, to conduct subregional planning aimed at its sustainable development.

Finally, the fact that tourism is concentrated in a few municipalities represents a challenge to its sustainability and profitability in the area, particularly in Quindío. In this department, of 881 tourism service providers registered in 2012, 631 are accommodations, a fact that has generated strong competition between establishments. This has forced institutions to improve the quality of their services and of their administrative and commercial procedures while reducing prices, which is a positive outcome35.

ii. The road network of the CCLC: Infrastructure for economic activity and tourism

The CCLC is endowed with a road infrastructure that enables the transport of goods and people but requires maintenance, particularly the tertiary network. The main axis of the primary road network is the Trunk of the Coffee Belt (National Route No. 29) now known as "Autopista del Café". This network has a length of 137.55 km. (including variants) and connects the major cities of the Coffee Triangle, Armenia , Pereira and Manizales. Another important road is the Calarcá - La Paila section of the Buenaventura – Bogotá Transversal with a length of 61.86 km. The road infrastructure is complemented with the Western Trunk in the sectors: La Paila, Zarzal (Valle del Cauca), which corresponds to a departmental concession; Cerritos - La Virginia (Risaralda) and La Virginia - Cauya – La Felisa (Caldas), with a length of 119.4 Km.

According to the National Institute of Roads - INVIAS, the national network of CCLC departments corresponds to a total of 1,410.9 km, of which 913.7 km are under its supervision and the remaining 497.2 km are under concession. Similarly, INVIAS is also responsible for 1,477 km of tertiary network and estimates that there are approximately 9,912.336 additional km that are not its responsibility.

35 The Tourism Observatory of Quindío, after evaluating the midyear season of 2013 through tourist surveys, reported that 84% of respondents state that the quality of accommodation is excellent or good and 71% say that prices are affordable and appropriate. 36 Subdirección de la Red Terciaria y Ferrea of INVIAS, from – Consultant to the Ministry of Finance Otoniel Fernández (work carried out in 2009 and 2010) and Regional Road Plan of the Ministry of Transportation.

Table 9. Regional road system of the Coffee Region37 National Tertiary National Road Departments Network Network (Km) (Km) Caldas 320.2 558.93 Quindío 147.5 359.35 Risaralda 294.0 15.00 Valle del Cauca 649.2 543.63 Total kilometers 1,410.9 1,476.9 Source: Technical Support Branch of the National Roads Institute, National Infrastructure Agency, Ministry of Transportation.

In what concerns the tertiary network the National Government, through the program Pathways to Prosperity38, has supported municipalities to improve the management of the roads in their charge. Through this program 90 agreements, in the amount of $ 57,182 million, were conducted with local authorities, which include the engineering directly engaged by INVIAS for the departments of Caldas, Quindío, Risaralda and Valle del Cauca.

Table 10. Agreements with regional authorities - Infrastructure Number of Agreement Department Km Agreements value Caldas 30 315 12,850,000,000 Quindío 9 187 13,985,700,000 Risaralda 17 131 8,291,700,000 Valle del Cauca 34 443 22,054,400,000 Total 90 1,076 57,181,800,000

Source: INVIAS, Subdirectorate of Tertiary Network, 2012 Agreements.

37 Source: Agendas of the departments of Caldas, Quindío, Risaralda and Valle del Cauca. INVIAS - Ministry of Transportation. May to September 2009. 38 A program managed by INVIAS, which aims to provide support to municipalities in developing the best practices for the management of the road network in their charge, looking to its conservation and improvement.

At present, the tertiary roads in the CCLC actions require annual intervention through the use of machinery (leveling, compaction and strengthening), and the development of additional works that include the construction and repair of cross drains (sewers), banking stability and improvement of slopes (on account of the difficult topography and geology of the area) to ensure the safety of the population.

The maintenance and upkeep of the road network is necessary to strengthen the performance of the coffee industry and other productive activities, specifically in rural areas, ensuring that communities easily access schools and health providers, while at the same time promoting the accessibility and mobility of visitors for the development of sustainable tourism, and strengthening the social appropriation of the cultural heritage of the CCLC.

F. Land management in the area of influence of the CCLC

The Coffee Triangle has become consolidated without a concrete strategy for urban-regional development and without a figure of supra-municipal integration that covers its entire area of influence (defined by the existing functional, economic and social relations between the three capitals of the departments of Quindío, Caldas and Risaralda). At present the main supra-municipal entity of coordination in that territory is the West Central Metropolitan Area (AMCO), created in 1981, which consists of the municipalities of Pereira, Dosquebradas and La Virginia.

It is noteworthy that a supra-municipal instance in the context of CCLC is important to promote strategies that ensure greater competitiveness in the region and a better quality of life for its inhabitants. Furthermore, this analysis can also contribute to the coordination of actions to preserve its outstanding universal value, promote the sustainability of the cultural heritage and develop tourism in the area.

In characterizing the National System of Cities defined in 2012 by the “Misión de las Ciudades” of the DNP, 10 municipalities in the Coffee Triangle were identified39, including the departmental

39 Armenia, Calarcá, Circasia, La Tebaida, Manizales, Villamaría, Pereira, Dosquebradas, Santa Rosa de Cabal y Cartago.

45 capitals (Armenia, Pereira and Manizales), where much of the economic dynamics and its functional relations are concentrated.

The analysis developed by the Mission reveals limitations mainly in the connectivity of the Coffee Triangle with the rest of the National System of Cities. It also identified difficulties in the relations between town and country, particularly as relates to urban expansion, the dynamics of suburbanization of rural land and the displacement of areas with agricultural potential.

Another problem facing the region is that under the current system of Land Management Plans (POT) by municipality it is impossible to define and encourage a specific type of production in strategic territories which guarantees the food needs in cities and satisfies future demand for some basic commodities40.

40 Arturo García, Estudio Relaciones Campo – Ciudad, Misión de Ciudades DNP.

Map 3 Agglomerations of the Coffee Triangle, Areas of Influence and Land Use

From the environmental point of view, the Mission identifies that the main national ecological structure and its relation to urban development are not clearly defined. In this regard, as is observed in all axes or urban corridors of the country, the dislocation of planning instruments such as the POT and the Management Plans of Hydrographic Basins (POMCA) is evident, as is the lack of a strategy or instance that articulates the main ecological structure with the processes of land planning. Particularly, the study "Environmental sustainability, climate change and disaster risk management" highlights the difficulties in the Triangle facing the current capacity of cities to treat their wastewater and future supply for urban water systems. There are additional difficulties stemming from the useful life of landfills.

IV. OBJECTIVES

The Conpes document "Policy for the Preservation of the Coffee Cultural Landscape of Colombia" aims to formulate a specific policy for the CCLC in order to ensure the preservation of its

47 outstanding universal value and improve the conditions for the environmental, cultural social and economic sustainability of the territory.

Specific Objectives:

 To strengthen the social appropriation of the cultural heritage of the CCLC and articulate this heritage to the social and economic development of the region.  To strengthen land management and environmental, economic and social sustainability in the area of influence of the CCLC, focusing in the promotion of actions for the preservation of its cultural values.  To design and implement risk management plans that acknowledge the environmental threats, vulnerabilities and risks facing the CCLC and include strategies for the environmental management of mining that are consistent with the preservation and sustainability of the landscape.  To promote the sustainability of coffee growing in the CCLC by promoting its competitiveness, profitability and balanced coexistence with other productive activities in the region.  To improve the accessibility and mobility in the CCLC in order to strengthen coffee production and complementary activities such as sustainable tourism.

V. PLAN OF ACTION

For the attainment of the above objectives, five strategies are described below along with the key actions associated with each one of them.

1. STRATEGY FOR GENERATING SOCIAL APPROPRIATION OF THE INTANGIBLE AND TANGIBLE CULTURAL HERITAGE OF THE CCLC

 The Ministry of Culture, in coordination with the Secretariats of Culture of the four departments of the CCLC, shall implement actions to promote and develop processes for

the identification, assessment and recognition of the tangible and intangible cultural heritage of the CCLC by conducting and disseminating heritage inventories in the municipalities that belong to it. Similarly, it will support local authorities on possible declarations and inclusion of manifestations on the representative lists of intangible cultural heritage and in the development of Special Management and Protection Plans (PEMP) and Special Safeguarding Plans (PES).  The Ministry of Culture will promote and support processes of cultural entrepreneurship in the CCLC through the Group of Cultural Entrepreneurship of the Ministry of Culture. For this component, workshops and consultancies in cultural entrepreneurship will be organized to strengthen entrepreneurship in the cultural sector of the region.

These processes of entrepreneurship will be the continuation of the training activities that have been imparted to the cultural sector in the region through educational workshops on entrepreneurship conducted jointly with leading public universities of Colombia41. The end of the process will produce business models or cultural projects designed for the implementation of productive activities related to the cultural and creative industries in the region. Likewise, continued support shall be given to the Cluster of Cultural and Creative Industries led by the University of Caldas, in order to strengthen the processes of creation, production and marketing of cultural content in the region.

Additionally, in order to safeguard the traditional trades related to the cultural tangible and intangible heritage, as well as the processes involving communities, especially young people in a vulnerable situation, the Program of Workshop-Schools of Colombia “Tools of Peace” shall be strengthened in the CCLC, a strategy that can generate local capacities through training of qualified social capital in trades associated with the management, protection and safeguarding of cultural heritage. The program Watchmen of the Cultural Heritage shall likewise be strengthened in the region.

 The Ministry of National Education (MEN) shall support the strengthening of processes related to the inclusion of the cultural heritage of the CCLC in education through

41 National University of Colombia and Antioquia University.

Complementary School Days, managed by the compensation funds. In this regard, the MEN will provide technical assistance to the certified local authorities to conclude agreements with the funds for the implementation of the Complementary School Day in the modality of cultural heritage.  The Ministry of Information Technologies and Communication shall support the connectivity of the cultural facilities in the region, by connecting public libraries to the internet. Additionally, it shall provide computers to 53 libraries and/or cultural centers of the CCLC.

2. STRATEGY FOR STRENGTHENING LAND MANAGEMENT AND ENSURING THE ENVIRONMENTAL, ECONOMIC AND SOCIAL SUSTAINABILITY IN THE AREA OF INFLUENCE OF THE CCLC

 The Ministry of Housing, City and Territory (MVCT) shall offer technical support to the Ministry of Environment, and Sustainable Development (MADS) and the Ministry of Culture, in accordance with the " Guide for the incorporation of the CCLC in the review and adjustment of land management plans (POT, PBOT, EOT42 "43, in the construction of criteria for the definition of the determinants (environmental44 and cultural) of land use, and shall give technical assistance to the municipalities so that they are included in the revisions and changes to the POTs of the townships in the CCLC. These determinants, according to the provisions of Article 10 of Law 388 of 1997, are higher-level standards in the development and adoption of the POT of municipalities. Therefore, the determinants obtained from analysis, by the MVCT, MADS and CARs shall have a binding nature and shall be incorporated in the respective POTs, PBOTs and EOTs.  The Land Management Commission (COT) shall carry out an accompaniment to the processes of zoning of the departments that are part of the CCLC, seeking harmony and regional integrity around the CCLC and its area of influence. To that end, the environmental and cultural determinants established in the "Guide for the incorporation of

42 POT (Planes de Ordenamiento Territorial), PBOT (Plan Básico de Ordenamiento Territorial) o EOT (Esquemas de Ordenamiento Territorial). 43 Ministry of Culture – National Federation of Coffee Growers, Colombia, 2012. 44 According to Decree 1640 of 2012, whereby the instruments for the planning, zoning and management of hydrographical basins and aquifers, the Plan for the Zoning and Management of the Hydrographic Basin is to be the superior norm and environmental determinant for the adoption of land zoning plans, in conformity with what Law 388 of 1997 sets down.

the CCLC in the review and adjustment of land management plans (POT, PBOT, EOT)" shall be considered. The COT shall support the departments in the definition and identification of existing trends in their territory to articulate the attributes of the CCLC, allowing the definition of routes for resolving conflicts around the potential use of the soil that occur among sectors.  The COT shall support the creation and strengthening of the Regional Commissions of Land Management of the departments belonging to the CCLC, in order to ensure the proper development of the land management process. The initiatives to be promoted through such commissions shall be related to: a) the articulation of the CCLC within the Regional Urban System of the Coffee Triangle, b) a support plan for strengthening a partnership scheme that overcomes coordination problems and fosters the articulation of the regional entities in the CCLC, c) the design of processes of regional strategic long-term planning, d) the identification of the strategic axes of the CCLC, e) the support of the inclusion of the CCLC as a reference in land management f) "Configuration the Coffee Route of Colombia", g) identifying and defining clusters and logistics nodes, h) the formulation of projects of regional impact.  The DNP and FINDETER shall support the Commission of Land Management in the analysis, forecasting and definition of strategic projects with the aim of strengthening the consolidation of the system of cities of the Coffee Triangle and its articulation with the municipalities of CCLC.  The Ministry of Agriculture and Rural Development and the Rural Agricultural Planning Unit shall support the incorporation of planning guidelines for the efficient use of rural land and water, and promote the coordination of rural-urban relations in the POT for the rural areas of municipalities in the CCLC.  The Ministry of Environment and Sustainable Development (MADS) shall provide support to the Regional Autonomous Corporations (CARs) of the departments that make up the CCLC, which shall have to coordinate their environmental determinants for land management with the Coffee Triangle Eco-region in mind, in order to unify criteria and guidelines for the development of the POT.  In order to design and implement the necessary mechanisms to identify threats, vulnerabilities and risks, and the environmental preservation and sustainability of the

CCLC (according to the provisions of Law 1523 of 2013) is ensured, the MADS shall provide technical assistance to the CARs of the CCLC to incorporate risk management in their respective Environmental Management Plans, according to the particularities of the different areas that make up the CCLC.  Additionally, the MADS shall support the CARs, the governors’ and mayors’ offices in the formulation and implementation of their Territorial and/or sector Adaptation Plan to climate change through the Regional Climate Change Nodes of the Coffee Triangle.  The Ministry of Mines and Energy, in coordination with the MADS, shall define a strategy for the environmental management of mining and other extractive activities in the CCLC. In addition, the MADS shall train territorial and environmental entities in mining and environmental competences for the control of illegal extraction, and shall carry out training processes for the regional corporations in urban environmental management in order to strengthen environmental control, monitoring and management.

3. STRATEGY FOR IMPROVING THE SOCIAL CONDITIONS OF THE POPULATION OF THE CCLC

 The Ministry of Employment shall promote and protect employment generation, in order to consolidate the labor market in the cities of the CCLC. For this, by the means of the Labor Market Observatories of each of the departments that make up the CCLC, and in coordination with the departmental governments, it shall provide technical and methodological assistance to produce studies that identify key characteristics of the job market, including occupational profiles, social and economic characterizations and other relevant aspects.

 The Ministry of Labor shall support the implementation and strengthening of the Public Employment System, in accordance with the provisions of Decree 722 of 201345, so that it channels the job supply and demand, particularly in tourism and related services such as accommodation and transportation, among others. The Ministry of Labor shall continue the implementation of the Technical Assistance Program (PAT) in the municipalities of the CCLC, through technical assistance for the identification and formulation of major employment generating projects within the framework of the Departmental Plans for Employment entering into effect in 2013.  Likewise, the Ministry of Labor shall promote a specific program to ensure decent working conditions for drivers of mixed transportation (jeep drivers for loads and tourism), that shall promote their rights and access to the coverage and benefits of the Social Protection System, and facilitate their affiliation to the mechanism of Periodic Economic Benefits (BEPS), seeking to achieve universal coverage in this population group. This strategy shall be complemented with the design of additional protection mechanisms such as micro- insurance, specifically for coverage against occupational hazards in the same population. Additionally, the Ministry of Labor shall promote the realization of awareness sessions and training to facilitate the formalization of this population, while evaluating alternatives to strengthen its labor skills, in coordination with the Public Employment Service and the SENA.  For its part, the Department for Social Prosperity (DPS), through its range of programs for income generation, shall allocate a budget of $4,000 million for the term 2015 to serve vulnerable populations living in the municipalities of the CCLC. The DPS, through its targeting methodology, shall define the municipalities and the beneficiaries of the offer of income generation.  The Ministry of Agriculture and Rural Development (MADR) in coordination with the Agrarian Bank of Colombia shall continue the implementation of the program of Rural Housing of Social Interest (VISR) by the means of calls for the construction of new housing and the improvement of existing housing and basic sanitation, in order to improve the

45 Whereby the Public Employment Service is regulated, the network of operators of the Public Employment Service is established and the activity of labor intermediation is regulated.

problem of rural habitability, contributing to rural development in the departments that are part of CCLC.  Thus, in addition to the subsidies awarded through the first round of 2013, which were delivered to 216 households in municipalities of the CCLC for a value of $ 2,000 million, the evaluation of the second call will continue, in which close to 800 households are participating for housing solutions in the municipalities of the CCLC.

Table 4. Number of beneficiary VISR households in municipalities of the CCLC First call for 2013 - Figures in millions of pesos REQUESTED DEPARTMENT MUNICIPALITY HOUSEHOLDS SUBSIDY TOTAL 170 $ 1,595 AGUADAS 41 $ 423 ANSERMA 34 $ 294 CALDAS ARANZAZU 22 $ 227 MANIZALES 23 $ 199 SAMANA 11 $ 114 VITERBO 39 $ 337 TOTAL 46 $ 416 RISARALDA DOSQUEBRADAS 46 $ 416 TOTAL 216 $ 2,010

Source: Agrarian Bank  To complement the actions on the issue of habitability, $ 8,000 million shall be targeted at the Rural Social Interest Housing Program, where MADR shall finance 80% of this amount and 20% shall be funded by the region.  The DNP shall formalize an agreement with the MADR to allocate $ 2,000 million for the improvement of living conditions in the municipalities of the CCLC. For the identification and selection of the beneficiaries the targeting criteria defined by the MARD shall be followed.  The Ministry of Housing, City and Territory (MVCT), under the policy of sustainable construction, shall promote the development of differentiating measures for existing

buildings declared as immovable heritage, which measures shall promote interventions that are carried out following sustainability criteria.  The SENA, under the "Program of technical and technological training" shall implement research and training actions for the adaptation and construction of buildings with sustainability criteria. In this regard, through its Center for the Technological Development of Construction and Industry it shall continue to develop a real housing prototype with sustainability criteria, which shall give parameters for the construction of buildings in the coffee region.  The Ministry of Housing, City and Territory shall continue with the program of expanded coverage of water and sewer services in rural areas of the region of the CCLC, in order to make a positive impact in the reduction of poverty, and improving public health and the competitiveness of municipalities in the area, by the means of the following activities: - To carry out to their end the planned investments under the Program for Water Supply and Rural Sanitation of the Ministry of Housing, City and Territory, amounting to 5,066 million pesos in the municipalities of Aguadas, Supía, Salamina, Riosucio in the department of Caldas and Quinchía in the department of Risaralda. - To carry out sector projects in rural areas under the PAP-PDA.

 Similarly, the Ministry of Housing, City and Territory shall continue with the planned actions in the departments of Caldas, Quindío, Valle del Cauca and Risaralda, as follows: - Carrying to an end the projects currently in operational phase under the PAP-PDA for $6,097 million in the municipalities of Supía, Villamaría, Manizales, Viterbo and Belalcázar in Caldas; Apía in Risaralda; and Córdoba in Quindío. - Completing the flagship projects of the Water and Sanitation Sector for $48,730 million in the municipalities of Manizales in Caldas; Armenia, Salento and Pijao in Quindío; and Dosquebradas and Pereira in Risaralda. - Carrying out contracting projects in urban and rural areas that have been prioritized by the steering committee of the PDA and have the technical feasibility, worth $ 8,700 million - municipalities of Aguadas, Supía, Chinchiná (Caldas); Quinchía

(Risaralda); Salento, Calarcá, Montenegro and Circasia (Quindío); and Alcalá (Valle del Cauca)  The managers of the PDAs shall continue to perform the following activities: - Submitting before the mechanism of viability of projects of the MVCT the projects prioritized by the steering committee in the Annual Strategic Investment Plan for the 2013-2014 period in the departments of Valle del Cauca, Risaralda, Caldas and Quindío. - Developing and implementing insurance plans for the provision of water and sewer services, in order to ensure the sustainability of investments under the PAP-PDA.

4. STRATEGY FOR THE PROMOTION OF COFFEE GROWING IN THE CCLC

 The Committee of Experts for Modern Coffee Cultivation, following the guidelines of Conpes 3763, shall specifically analyze the situation of the municipalities of the CCLC and, among its recommendations, shall emphasize those aimed at improving productivity, competitiveness and sustainability.  The SENA shall continue, through its learning environments, the programs of technical and technological training for the stages of Roasting (roasting, grinding-threshing), Cupping and Labs of Coffee, which are currently being implemented in the Departments of Risaralda and Quindío. Similarly, in coordination with the National Federation of Coffee Growers (FNC), the Manuel Mejia Foundation, Almacafé and Cenicafé, it shall jointly assist the Coffee Growers of the CCLC in complementary and diploma level training.  In order to boost the coffee industry and the generation of added value as well as increasing the profitability and sustainability thereof in the municipalities of the CCLC, the cultivation of specialty coffees shall be promoted and fostered in the region, provided the conditions of agro-ecological supply are present for their production and the market niches for them are ensured. With this initiative the best is made out of:

i) the growing demand for such coffee types, a greater willingness by the consumer to pay more, and that the CCLC region take part of the increase in Colombian exports of specialty coffees. ii) the possibility of linking the coffee industry with schemes of environmental sustainability, contributing to the conservation of the natural wealth of the region.

To this end, the National Federation of Coffee Growers (FNC) shall promote access to credit lines with the Incentive to Rural Capitalization (ICR) for the construction of productive infrastructure like the conversion from traditional to ecological “beneficiaderos”, which will facilitate the access to different types of certification.

As part of the nomination of the CCLC as World Heritage, the FNC shall make efforts to create a coffee seal with the CCLC brand. This aims to associate trademark registrations that highlight the cultural and natural value of the CCLC, which can generate added value and premium prices for those varieties. Additionally, the FNC shall promote the implementation of the PDO and regional brand of the CCLC in order to contribute to increasing the economic value of Colombian coffee by way of regional segmentation in national and international markets.

The FNC shall promote alternative uses and products obtained from coffee with added value both during the production and processing stages. These uses include confectionery, soaps, cosmetics, fibers for textiles, construction materials (coffee husks), biofuels (coffee pulp), among others.

Finally, it should be noted that the National Government has supported with different strategies the coffee industry in the region of the CCLC. For the fiscal years 2010-2013 a total of $ 1.36 billion has been allocated through the Ministry of Agriculture, including benefits provided through credit programs - Incentive for Rural Capitalization (ICR), the Program for the Protection of Coffee Income (PIC) and the Productive Partnerships Program, among others.

5. STRATEGY FOR IMPROVING ACCESSABILITY AND TOURISM IN THE CCLC

 The Ministry of Transportation shall define the actions, resources and implementation of programs for the improvement and intervention of tertiary roads that are part of the CCLC, to be funded with resources included in the Middle Term Expenditure Framework (MGMP) of INVIAS. This will be done based on technical criteria (connectivity with other roads, surface type, state of the roads), social criteria (population, social, cultural and educational centers adjacent to the road, etc.) and economic criteria (volume of traffic, productive areas near the road) that have been defined for this purpose. In addition the Ministry of Transportation shall assist the departments and municipalities of the CCLC concerning other funding sources such as SGR and DPS, to which they may submit projects that contribute to preserve transitable conditions for 100% of rural roads.

In addition to the above, the departments and municipalities that are part of the CCLC shall prioritize the critical points of the tertiary networks in their charge, to be attended with the machinery banks provided by the National Government. The Ministry of Transportation and the UNGRD shall provide the technical support for defining action plans in the relevant departments.

 The Ministry of Commerce, Industry and Tourism (MCIT) shall implement the actions and projects of the Strategic Plan for Tourism of the CCLC, which shall run through the following components:

i) Good Governance in the sector: The MCIT shall provide technical assistance for interagency coordination to strengthen the Technical Committee of Tourism of the CCLC, composed of representatives of the Chambers of Commerce of Manizales, Pereira, Armenia and Sevilla and by the departmental tourism authority in the departments that are part of CCLC.

ii) Studies and research: The MCIT, in coordination with the Technical Committee of Tourism of the CCLC, shall conduct studies of international tourism demand of the CCLC in order to identify potential visitors to this destination. Similarly, a profile study and characterization of domestic visitors shall be carried out to identify new market niches.

iii) Competitiveness and sustainability of destinations and products: The Ministry of Commerce, Industry and Tourism (MCIT) shall continue to implement the Strategic Plan for Tourism Development of the Coffee Cultural Landscape (PEDTCCLC), through which progress will be made in the Design of Tourism Products for the Coffee Cultural Landscape, seeking to identify the strengths and comparative and competitive advantages of each destination at the level of the subregions46 making up the CCLC. The objectives of the design of this product are, among others:

o To increase demand by offering cultural tourism products in conformity with the proposed subregional value and articulating the whole chain around this proposal. o To encourage the entrepreneurship of other tourism services, specifically those that offer experiential activities. o To decentralize the supply geographically.

iv) Business Productivity: The MCIT, in coordination with the Technical Committee of Tourism of the CCLC, shall conduct a study to measure the quality of tourism services in the region in order to formulate strategies that encourage tourism operators to be certified in the NTS (Technical Norm of the Sector) and improve the services they offer.

46 The subregions gather different municipalities grouped around a unique and differentiable value proposal that would attract visitors to the territory for its different themes. Among others, we have identified the following subregions: Path of the Indigenous and Coffee Heritage; Road of the Arriería and the Antioquian Colonization; Road of Coffee and Sugar; Road of the Farms and Coffee Tasting.

The MCIT shall train tourism service providers through the implementation of the project of best practices in tourism and certification in sustainability NTS, benefiting 120 providers of the CCLC departments.

Additionally, in order that agents and stakeholders in the tourism and coffee sectors in the area can have the knowledge and tools to promote the CCLC, SENA, in coordination with the MCIT, MinCultura and the FNC, shall continue the implementation of the virtual course on the Coffee Cultural Landscape and Colombian Coffee.

v) Dissemination and promotion of tourism: The MCIT and MinTIC, in coordination with the Technical Committee of Tourism of CCLC shall coordinate and support the design of mobile applications for 800 businesses of the tourism sector in the CCLC. Similarly, studies shall be conducted to define the parameters and characteristics of the signage to guide visitors and tourists of the CCLC as well as its implementation.

Finally, with support of the MCIT and the Technical Committee of Tourism of the CCLC, a promotional campaign of the CCLC shall be carried out nationally and abroad.

VI. FINANCING

The financing matrix follows, summarizing the contributions of different national entities that participate in this policy; it shall be subject to the procedure and execution of the resources of such entities. The use of these resources depends on the viability of the projects that will carry out said actions and of the commitment of local entities for those actions that require matching funds.

Table 12. Investment in millions of pesos Entities 2014 2015 2016 Total Department for Social Prosperity $4,000 $4,000

Ministry of Commerce, Industry $ 5,379 $ 3,238 $ 2,000 $10,617 and Tourism Ministry of Information $ 989 $989 Technologies and Communications Ministry of Culture $ 4,220 $ 3,800 $ 3,800 $ 11,820 Ministry of Agricultural $ 3,750 $ 3,750 $7,500 Ministry of Transportation – $ 30,000 $ 32,000 $ 62,000 INVIAS SENA $ 5,246 $5,246 National Planning Department $ 2,000 $ 2,000 Total $ 17,834 $ 44,788 $ 41,550 $104.172 * The proposed figure for the development of each action is dependent on submitting the project to the National Fund for Tourism FONTUR and approbation of the Steering Committee of FONTUR, in accordance with Law 1558 of 2012, articles 20 and 21.

VII. RECOMMENDATIONS

The Ministry of Transportation; the Ministry of National Defense; the Ministry of Mines and Energy; the Ministry of Information Technologies and Communications, the Ministry of Housing, City and Territory; the Ministry of National Education; the Ministry of Agriculture and Rural Development; the Ministry of Environment and Sustainable Development; the Ministry of Culture, the Ministry of Commerce, Industry and Tourism; and the National Planning Department recommend to the CONPES:

1. To approve the policy guidelines for the Preservation of the Coffee Cultural Landscape of Colombia contained herein. 2. To approve the plan of action presented in this document and petition the entities involved the proper and timely implementation thereof. 3. To request of the National Government entities involved in this Conpes to prioritize the resources for the enactment of the plan of action contained in this document, in accordance with the Middle Term Expenditure Framework of each sector.

4. To request the Ministry of Transportation jointly with INVIAS, the Ministry of Agriculture and Rural Development, the Ministry Commerce, Industry and Tourism in coordination with FONTUR, the Department for Social Prosperity and the SENA, to accompany the municipalities that are part of CCLC in project formulation to access the resources allocated through the calls in their charge. 5. To request the Ministry of Culture and the Ministry of National Education to implement programs and strategies aimed at social ownership of the tangible and intangible cultural heritage of the CCLC. 6. To request the Ministry of Environment and Sustainable development to provide technical assistance to the CARs for updating and developing their environmental determinants for land use, incorporating risk management in the relevant Environmental Management Plans, and the formulation and implementation of the Territorial Plan for Adaptation to climate Change through the Regional Climate Change Nodes. 7. To request the Ministry of Housing, City and Territory, in coordination with the Ministry of Environment and Sustainable Development and the Ministry of Culture, to advise the municipalities of the CCLC and CARs to include in their respective POTs, PBOTs, EOTs the environmental and cultural determinants for the conservation and preservation of the CCLC. 8. To suggest to the governors’ offices of Risaralda, Quindío, Caldas and Valle del Cauca and its municipalities: - To integrate the planning guidelines in the POT of the CCLC municipalities to ensure efficient use of land and water, and promote coordination of rural-urban relations. - To include the guidelines of the "Guide for the incorporation of the CCLC in the review and adjustment of land management plans" in the instruments available for land planning and management. - To advance the management required to access the resources allocated through the calls of entities at the national level. - The coordination, technical and financial support for the implementation of the plan of action proposed herein, in accordance with the principles of coordination, competition and subsidiarity.

9. To request the DNP to develop a monitoring report for this document with the following cuts: a. First cut: 12/30/2014 b. Second cut: 12/30/2015 c. Third cut: 12/30/2016

DEFINITIONS

World Heritage

It is the title conferred by the World Heritage Committee to sites of cultural, natural or mixed heritage, for its outstanding universal value deserve to be inscribed on the World Heritage List of UNESCO.

Cultural and natural heritage According to the World Heritage Convention, "cultural heritage" shall consist: - The monuments: architectural works, works of monumental sculpture and painting, elements or structures of an archaeological nature, inscriptions, cave dwellings and combinations of features, which are of outstanding universal value from the point of view of history, art or science; - Groups of buildings: groups of separate or connected buildings, which because of their architecture, homogeneity and integration into the landscape are of outstanding universal value from the point of view of history, art or science,

- Sites: works of man or the combined works of nature and man, and areas including archaeological sites which are of outstanding universal value from the historical, aesthetic, ethnological or anthropological point of view.

Cultural Landscapes "The term" cultural landscape "embraces a diversity of manifestations of the interaction between humankind and its natural environment. Cultural landscapes often reflect specific techniques of sustainable land-use, considering the characteristics and limits of the natural environment they are established in, and a specific spiritual relation to nature. Protection of cultural landscapes can

63 contribute to modern techniques of sustainable land-use and can maintain or enhance natural values in the landscape. The continued existence of traditional forms of land-use supports biological diversity in many regions of the world. The protection of traditional cultural landscapes is therefore helpful in maintaining biological diversity."47

Outstanding Universal Value Points to the cultural and/or natural significance of the property by its universal character and the relevance it may hold for different generations. The World Heritage Committee defines the criteria for inscription of properties on the World Heritage List48, which must meet at least one of the criteria established by the Committee. In the case of Coffee Cultural Landscape of Colombia (CCLC), the declaration of Outstanding Universal Value is justified according to criteria v and vi: v. To be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative of a culture (or cultures), or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change.

vi. To be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance.

Under Criterion v, "The CCLC is an outstanding example of a centennial cultural landscape, sustainable and productive, in which the collective effort of several generations of peasant families forged exceptional social, cultural and productive institutions, generating at the same time innovative practices in the management of natural resources on a landscape of extraordinarily difficult conditions. The typical coffee farm in the CCLC is located in a difficult landscape of steep mountains that shapes the design of the coffee landscape, its architectural style and lifestyle of their communities. They managed to create an unparalleled cultural identity where the institutional aspect of the CCLC has no equal in any other coffee region in the world. "

47 Directrices prácticas para la aplicación de la Convención de Patrimonio Mundial UNESCO, Grupo Intergubernamental de protección del patrimonio mundial cultural y natural. Centro del Patrimonio Mundial, París, enero, 2008. 48 Directrices prácticas para la aplicación de la Convención de Patrimonio Mundial UNESCO, Grupo Intergubernamental de protección del patrimonio mundial cultural y natural. Centro del Patrimonio Mundial, París, enero, 2008.

Under Criterion vi, "The centennial coffee tradition is the most representative symbol of national culture in Colombia, for which the country has earned worldwide recognition. The coffee culture has led to rich tangible and intangible manifestations in the territory, with a unique legacy that includes, among other things, music, traditional cuisine, architecture and culture, bequests that have passed from generation to generation. The CCLC represents a harmonious integration of a production process, a social organization and a type of housing that are unique in the world and needed for the development of the coffee culture in a rural area that is so difficult."49

In addition to meeting the above criteria, the CCLC has four specific values that determine its uniqueness50 and its status as a World Heritage:

1. Human, family, generational and historical effort put into the sustainable production of quality coffee

2. Coffee culture for the world.

3. Strategic social capital built around its institutions.

4. Combining tradition and technology to guarantee product quality and sustainability.

49 Ibid. 50 Statement of Outstanding Universal Value, a document that is part of the dossier submitted to Unesco.

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17. ANNEXES

Annex 1. Dimensions and municipal variables MPI Dimension Variable - Indicator

Educational Attainment Average schooling of people aged 15 and over in the household. Educational conditions in the home Percentage of people in the household aged 15 and over who can read and Illiteracy write. School attendance Proportion of children between 6 and 16 years attending school. Proportion of children and youth (7-17) in the home without educational Educational underachievement underachievement (domestic standard). Proportion of children aged zero to five years with simultaneous access to Conditions of children and youth Access to care in early childhood health, nutrition and education. However, it is not possible to establish the degree of care for children under 3 years. Proportion of children in the home that are not facing child labor, ignoring Child labor light tasks. Dependency ratio Households where there are more than three people per employed member. Labor Proportion of adults in the household that work jobs with pension Formal employment rate (0.1) affiliation (proxy of informality). Proportion of household members older than five years, affiliated to health Health insurance services of Social Security. Health Proportion of household members that access institutional health services Access to health services in case of a need in case of need. Urban household: is considered deprived if it does not have public water service in the home. Access to improved water source Rural home: is considered deprived when it gets the water to prepare food from a well with and without a pump, from rain water, rivers, springs, tank trunks, water carrier or other source. Urban household: it is considered deprived if not connected to a public sewage system. Excreta elimination Rural Home: it is considered deprived if it has an unconnected toilet, tide, Access to public services and or latrine or does not have toilet service. housing conditions Floors Lack of predominant material (dirt floors). Urban household: it is considered deprived if the material of the outer walls is crude wooden table, plank, bamboo or other plants, zinc, cloth, Exterior walls cardboard, waste or has no walls. Rural home: it is considered deprived if the material of the outer walls is bamboo or other plants, zinc, cloth, cardboard, waste or has no walls. Number of people per bedroom excluding kitchen, bathroom and garage Critical overcrowding and including living and dining room.

Source: DNP, DDS, SPSCV

Annex 2

Incidence of multidimensional poverty in the municipalities of the CCLC 2005 Municipal Urban area Rural area Department Municipality Incidence incidence incidence Aguadas 59.22% 35.86% 77.54% Anserma 63.81% 53.27% 78.45% Aranzazu 58.89% 41.79% 79.12% Belalcázar 65.99% 56.15% 73.31% Chinchina 42.37% 39.32% 59.29% Filadelfia 72.72% 54.05% 81.81% La Merced 63.82% 35.04% 77.76% Caldas Neira 64.79% 52.29% 77.31% Pácora 59.49% 42.03% 72.59% Riosucio 55.26% 34.92% 67.36% Risaralda 70.92% 52.30% 83.09% Salamina 55.82% 45.98% 71.32% San José 71.86% 45.16% 80.75% Supía 55.89% 45.84% 65.19% Villamaría 42.41% 34.15% 74.23% Buenavista 57.15% 33.45% 73.18% Calarcá 40.59% 36.44% 53.85% Circasia 40.90% 39.89% 43.64% Cordova 60.40% 48.80% 74.64% Filandia 57.34% 50.85% 63.87% Quindío Génova 67.25% 53.51% 82.01% Montenegro 56.53% 55.52% 61.05% Pijao 59.36% 45.45% 77.89% Quimbaya 52.85% 49.98% 64.92% Salento 52.76% 39.12% 66.30% Apía 61.89% 42.12% 75.25% Risaralda Balboa 70.47% 52.33% 77.65% Belén de Umbría 62.09% 47.45% 74.69%

Guatica 63.05% 37.79% 71.06% La Celia 67.88% 44.81% 82.70% Marsella 61.52% 48.96% 76.12% Quinchía 69.95% 50.42% 75.99% Santa Rosa de Cabal 45.55% 40.19% 67.88% Santuario 62.75% 46.40% 75.89% Alcalá 55.73% 52.95% 62.74% Ansermanuevo 72.11% 63.98% 83.38% Caicedonia 47.38% 40.52% 72.60% El Águila 64.58% 38.73% 73.64% Valle El Cairo 78.09% 52.04% 89.51% Riofrío 60.81% 40.99% 71.05% Sevilla 48.02% 38.75% 74.51% Trujillo 63.28% 45.41% 75.47% Ulloa 62.82% 49.91% 71.93% Source: DNP, DDS, SPSCV