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Peace, equality and education top government 2.0 priorities

President has been in power since 2010

President Santos September’s announcement signi- provides the opportunity for FARC to partments, conciliation centers and “Comprehensive fied the end of this long road. A formula transition to the political arena. justice decentralization programs. A directs talks aimed at peace is not possible ending half a century for transitional justice for conflict-relat- new website called LegalApp, which ed crimes, such as kidnapping, murder, Justice will be made available for smart phone if there is no equity, of armed conflict in forced displacement, disappearance Since the FARC’s ceasefire in July download, provides Colombians with and the only way to Colombia, and brings and torture, was agreed, as well as repa- of 2015, violence in Colombia has easy access to justice services, infor- foward an agenda ration guidelines for the conflict’s six dropped to 1975 levels. Even before mation and assistance. achieve long-term that will ensure future million victims. A final deal date was set the peace agreement, Colombia’s “It allows people to report their equity is to have economic dynamism for 23 March, 2016. FARC has agreed economy began posting some of the concerns in a very simple way. It helps a well-educated to lay down their weapons within two highest growth rates in Latin America, them identify their situation, and in- Last September, the Colombian gov- months of the signing of the accord. and once the ink is dry on the final ac- forms them of where, how and what population” ernment and leftwing FARC guerril- And then Colombia will vote. Presi- cord, the country is set to truly unleash they can do about their situation. Juan Manuel Santos las came to an agreement that will put dent Santos has promised to submit a new era of prosperity. The National There’s a very easy explanation of the an end to the world’s longest running the final deal to a national referendum. Planning Department has calculated procedure, tips to know whether or war. When the peace deal is sealed In December, he reiterated this prom- that the agreement will triple foreign not they need an attorney and which of the OECD will mean that we will be in March, it will see the five-decade ise, saying, “When we have the final direct investment and boost econom- authorities near them can help solve treated differently and it will open up conflict, which has cost an estimated agreement, I will fulfill my promise ic growth by 2%. the conflict,” says Minister Reyes. more possibilities for investment.” 220,000 lives and led to the highest and it will be you, Colombians, who “Colombia has an outstanding Along with the Unit of Territorial Lessening regional inequality is an- internal displacement of people in his- will decide if you approve or not. You economy. It is without question the Consolidation and the United Nations other goal common to both the Na- tory, finally put to rest. will have the final word.” country with the highest growth rate Office on Drugs and Crime, the justice tional Development Plan and OECD Negotiations between President in the region, with extremely different department is involved in the Alliance accession requirements. The govern- Santos and FARC’s chief Rodrigo Lon- Peace indicators from the rest of the coun- for Good Government. “The purpose ment is working to deepen territo- doño, known as Timochenko, began in The Havana-brokered peace deal is tries,” says Vice President German of this alliance is to eradicate all of the rial integration through cross-cutting Cuba in 2012. During the announce- being hailed as a new model for end- Vargas Lleras. illegal crops with the support of the strategies in education, innovation, ment of the agreement, President Juan ing conflicts. During the search for the Faced with the chance to give Co- State in order to provide job alterna- infrastructure and rural development Manuel Santos said, “We’re adversaries right line between justice and peace lombia a new beginning and firm in tives to the population responsible that will boost equality among the re- on different banks of the river, but today for Colombia, negotiating teams con- their belief that peace cannot exist in for these crops,” says Minister Reyes. gions. we’re both headed in the same direc- sidered the prosecutorial approach tandem with social inequity and pov- Coca production has been replaced Improvement in the quality and tion. It’s the most noble direction that employed by the Hague in the case of erty, the government has created the by coffee, cocoa beans and sugar cane coverage of Colombia’s educational any society can take: peace.” the former Yugoslavia and by South Colombian National Development in some regions, and by fish farming, system is at the heart of these ini- While many points of the agree- Africa in its Truth and Reconciliation Plan: Everyone for a New Country. dairy production and rubber manu- tiatives. President Santos believes that ment were nailed down quickly Commission. They also considered Covering the period from 2014-2018, facture in others. “We stand firm in education and equity are inextricably during the negotiation period – the Good Friday agreement, consult- the plan is drawn from the results of our commitment to finding alterna- linked, and has said that, “a compre- wide spread land reform, the cur- ing both Irish and British sides. In the an extensive multi-sectoral and inter- tives in the war on drugs and our belief hensive peace is not possible if there is tailment of drug trafficking – the end, the negotiators formed their own regional dialogue, and emphasizes in the need to strengthen alternative no equity, and the only way to achieve process was a three-year tightrope groundbreaking hybrid. good governance and the consolida- development projects,” adds the jus- long-term equity is to have a well-edu- walk where the two leaders strug- The agreement’s central document, tion of a modern, transparent and ef- tice minister. cated population.” gled to define the line between jus- the Special Jurisdiction for Peace, aims ficient state. Boosting economic competitive- tice and peace. to satisfy the victims’ right to justice, It rests on three pillars: peace, equity Progress ness is also an aligned strategy. The The United States’ government obtain truth for Colombian society, and education. “These are the three The National Development Plan’s national plan aims to develop produc- appeared to understand this di- contribute to the reparation of the pillars of the President’s second term, aim to foster inclusive and sustainable tion, especially in sectors at the base of lemma. Top officials indicated that victims, and contribute to the fight and also the three essential compo- growth as a means of creating a last- the income pyramid. Central to this they would not allow existing ex- against impunity, while also granting nents of justice,” says Justice Minister ing peace is aligned with Colombia’s drive is an ambitious transport infra- tradition requests for various FARC legal security to those who directly or Yesid Reyes Alvarado. “Through these, aspirations to become a full member structure investment plan that will leaders wanted on trafficking charg- indirectly participated in the armed President Santos hopes to achieve a of the Organization for Economic Co- better link people, regions, producers es in U.S. courts to stand in the way conflict. more equal country.” operation and Development (OECD). and markets. Vice President Vargas of a peace deal. The peace court, which will benefit Minister Reyes’ department is The country launched its accession Lleras says, “In a recent World Bank from the participation of international working to consolidate the legal cer- process in 2013, and has since worked survey, Colombia ranked 18th in the “Colombia has an observers, will try all those involved in tainty that will sustain peace. “We are to meet the terms established by the region. Only Guiana, Haiti, Cuba and outstanding economy. conflict crimes – not only FARC mem- working continuously to enhance dif- organization. “President Santos has set Bolivia had poorer infrastructure qual- bers but also government soldiers and ferent aspects of legal security in order this goal for us, and it has not been an ity than ours. After the investment we It is without question rightwing paramilitaries. Under the to bring justice closer to the people easy task. The OECD has obliged us to have planned over the next four years, the country with the deal, political crimes will be eligible for and to enhance the trust between improve all of our standards and prac- we will be third in Latin America, after highest growth rate amnesty and pardons. As in the South citizens and the justice department,” tices in every public sector,” explains Brazil and Mexico.” African model, the court will ac- he explains. “This will be especially Vice President Vargas Lleras. in the region, with knowledge and accept statements of important in a post-conflict period in Deputy Minister for Business De- extremely different responsibility in lieu of prison terms. which the state must establish its pres- velopment Felipe Sardi Cruz adds, PROJECT TEAM: indicators from the Those who acknowledge their crimes ence in every corner of the country, “A target like becoming part of the Martin Rodriguez Villa, at a later date face prison terms of up not only through infrastructure and OECD is helping Colombia look at it- Laia Marsal Soles, Fatima rest of the countries” to 8 years, while those who refuse to social assistance, but also through de- self and realize some of the things we Ruiz Moreno, Luisa German Vargas acknowledge their crimes and who centralized justice administration.” have to do better in terms of govern- Fernanda Galindo and Lleras are tried and convicted face terms of Initiatives include the creation of ment, trade, commerce and practices. Pablo Dabrio Vice President of Colombia up to 20 years. The agreement also new courthouses, social service de- I think we are on schedule. Being part

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Colombia’s path to peace: step by step

The talks began in Oc- Santos asks for global sup- President Santos sus- tober 2012 in Norway, In a joint communiqué, govern- port for the peace process pends peace talks with the ment and FARC negotiators agree and then moved to Cuba during his address at the the following month. FARC after guerrillas, for to speed up the remaining negotia- General Debate of the UN the first time ever in the tions, to prioritize discussion of a General Assembly. The government’s efforts conflict, capture an Army definitive bilateral ceasefire. came after the passage general. September 24, 2013 July 12, 2015 of a Legal Framework for Peace—a bill passed November 16, 2014 by Colombia’s Congress and sanctioned by Presi- dent Santos in June 2012 At the end of the 27th President Santos and U.S. round of talks, government President Barack Obama hold a President Santos par-

and FARC negotiators an- bilateral meeting alongside the dons 30 former guerrilla Summit of the Americas in Pan- soldiers in jail for non- nounce the creation of a The Santos administration Historical Commission on ama City, where most presidents’ violent crimes. sends a bill to Congress to the Conflict and its Victims. declarations included expressions hold a referendum on a future November 22, 2015 of support for Colombia’s peace peace accord. August 22, 2014 process. September 1, 2013 April 11, 2015

September 17, 2013 October 30, 2014 June 4, 2015 The peace accord refer- The FARC makes its clearest pub- endum bill passes its first Both sides agree to establish a August 22, 2013 lic recognition of its victims so far. hurdle in Congress, and is “We explicitly recognize that our truth commission that would President Santos approved by committees actions have affected civilians at seek to shed light on atrocities announces a plan in both houses. different times and under differ- committed during their war. to submit an ent circumstances throughout the eventual peace conflict.” accord. The Na- tional Liberation September 9, 2013 Army, or ELN, December 12, 2014 September 23, 2015 the country’s The government an- nounces it will begin During a visit to Bogotá, U.S. The Government and FARC second largest negotiators sign historic guerrilla faction, talks with the ELN, Secretary of State John Kerry issues in a different loca- May 16, 2014 lengthy and energetic public ex- peace deal on issues of justice agreed to join and reparations to victims. the peace talks in tion from the FARC Partial agreement on pressions of support for Colombia’s September 2013. talks in Havana. drug trafficking. peace process and for U.S. assis- tance during a post-conflict phase. Investment from U.S. grows 39% since 2012 tion of ex-combatants; promoting U.S.-Colombia dialogue respect for human rights and the moves from one domi- rule of law; protection of vulner- nated by “drug trafficking able citizens (such as human rights and security, to one in and labor activists); and addressing which we can talk about global climate change and environ- science and technology, mental issues in one of the most ecologically diverse countries in education and various the world.” other aspects of the Camilo Reyes Rodriguez is Ex- country’s development,” ecutive Director of the American says Colombia’s foreign Chamber of Commerce in Bogota. affairs minister, María He believes that a peace accord Angela Holguín Cuéllar will result in “a remarkable trans- formation, generating progress, Having marked the third anniver- development and social equality”. sary of its implementation with no On the subject of the TPA, Mr. great fuss or fanfare, the Trade Pro- Reyes Rodriguez adds, “We won’t motion Agreement (TPA) between see so many ups and downs as the United States and Colombia before. It took ten years of nego- will possibly never be the stuff of tiations and approval by the U.S. which sizzling headlines are made, Congress to get this up and run- but its results can serve as an oc- ning and it comes equipped with casion for evaluating the repercus- a permanent set of rules that con- sions it has had in the broader con- Colombian President Juan Manuel Santos arrives for a bilateral stitute a stable platform for regu- text of bilateral relations. meeting with U.S. Secretary of State John Kerry lating business and commerce. It’s Ten years of hard bargaining up to us, though, to show that we were needed to open up each Colombia’s main export to the even when other South American portive role; and since February, know how to make good use of this country to all but a handful of the United States, as well as the source governments were vested heavily 2015, President Barack Obama’s marvelous instrument.” other’s goods and services. On the of 60% of its total foreign earnings. into populist or left-wing ideology special envoy has been sitting at Ms. Holguín Cuéllar agrees with bottom line for 2013, Colombia But on a brighter note for Co- fiercely opposed to Washington’s the table with negotiators as an that upbeat view. “People need to came out $3 billion ahead of its lombia: foreign direct investment foreign policy. observer. see the last of these armed groups larger partner, but ended the fol- originating from the United States Yet successive Colombian ad- “I want to congratulate Presi- and to feel that somehow opportu- lowing year $3 billion in the hole is up by 39% since 2012. Two years ministrations fully supported con- dent Santos on his extraordinary nities should become available to mainly on account of the global later, the number of Colombian troversial moves such as the 2003 efforts to bring about an end to a everyone. The United States and slump in the price of petroleum, companies exporting to the Unit- invasion of Iraq and the UN reso- conflict that has plagued Colom- Europe have had a fundamental ed States for the first time came up lution authorizing the invasion of bia for too long,” President Obama role in that. Their support has been just shy of the 2,000 mark with over Libya. In 2009, Bogotá allowed its said last April when he attended unconditional, not just political 400 new products on offer, many troops to deploy in Afghanistan the Summit of the Americas in support for the idea of peace, but of them in the booming fields of under the command of the Spanish Panama City. “The United States also the what-comes-after part.” fashion, fabrics and apparel. But contingent in that country. More is very proud to support that effort Washington, she says, has deliv- some people who are not directly recently, President Juan Manuel and I’ve deployed envoy Bernard ered on its pledges to help Colom- involved in that two-way flow may Santos has made it clear that he Aronson, with deep experience bia plan for its post-conflict reboot not be aware of how far its effects sees Colombia as a future candi- in the region, to be supportive of as a nation. “Agriculture and edu- extend beyond the purview of in- date for NATO membership. President Santos’s efforts. This cation are our biggest concerns. A ternational commerce. In the 1990s Washington had is an issue that many people care lot of the time I hear it said that we “It’s an altogether different kind become involved with the train- deeply about. It entails some risks may be getting ahead of ourselves, of dialogue now,” says Colombia’s ing and funding of Colombian se- but President Santos, I believe, is but I think if peace should come foreign minister, María Angela curity forces in their campaign to doing the right thing, and we want about, we have to be prepared for Holguín Cuéllar, characterizing neutralize FARC. to be as helpful as we can in the it. The United States has demon- her country’s relations with the The United States’ military pres- process.” strated its solidarity with us on United States. “We have moved on ence in the country was not wel- According to an official state- that point especially.” from an agenda that used to be all comed by many Colombians. It ment from the U.S. Department of One detail that took much back- about conflict, drug trafficking and was predicated on unsupported State, “the U.S. government sup- and-forth bargaining to resolve “It took ten years of security, to one in which we can assumptions that in addition to ports Colombian efforts to transi- had to do with Washington’s insist- talk about science and technol- being Communist insurgents, tion from conflict towards peace ence that Colombia take hard and negotiations and ap- ogy, education and various other FARC guerrillas were playing a by working in the most conflictive fast measures to ensure the rights proval by the U.S. aspects of the country’s develop- significant role in their country’s and neglected rural areas of Co- and safety of labor union organ- Congress to get (the ment. upstream cocaine trade, it being lombia, where violence, the lack izers or union members who had “We still have much that needs taken for granted that the drug in of government presence, and the long been targeted by right-wing Trade Promotion to be done regarding security and question would end up being con- absence of licit economic opportu- militias, death squads and assas- Agreement) up and human rights, but we are also mak- sumed in the United States. Years nities have historically converged. sins for hire. In their final form, running. It’s up to us ing progress in fields much more later, a study by the U.S. Drug En- The statement goes on to note the TPA accords also defend work- attractive to the United States,” the forcement Administration (DEA) that “U.S. programs provide sup- ers’ rights to collective bargaining to show that we know minister adds. “I think they see Co- concluded that this was simply not port for the implementation of and prohibit child labor, race- or how to make good use lombia as an example of real effort so, but by then FARC had grown to Colombian government reforms gender-based workplace discrimi- of this marvelous in- that pays off in terms of positive become the largest, as well as the in land restitution; reparations for nation, while it calls on the govern- outcomes.” oldest Western Hemisphere rebel victims and vulnerable popula- ment to defend and enforce a legal strument” Colombia has a lengthy rela- group. tions, including ethnic commu- framework that establishes a mini- Camilo Reyes tionship with the United States Since peace talks between the nities; public and private invest- mum wage, maximum working Rodriguez, Executive that by and large has remained government and FARC began in ments, in particular to foster a hours and addresses occupational Director, AMCHAM consistently cordial over time, 2012, the U.S. has played a sup- vibrant rural economy; reintegra- safety concerns. 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Solid financial fundamentals help transform economy and entice foreign investors Strong institutions, pre- cise macroeconomic policy and a solid finan- cial system are seeing Colombia through an unprecedented period of economic development

Latin Finance says Colombia has the best finance minister in the re- gion. He has won awards from Amé- rica Económica, Emerging Markets, and most recently, The Banker, who named him Latin American Finance Minister of the Year in 2015. His name is Mauricio Cárdenas Santa María. And under his watch Colom- bia has consistently produced the economic policies and aggressive free trade stance that has seen the country grow by more than 4% over each of the last four years. All three major rating agencies have upgraded Colombia’s invest- ment grade. Foreign direct invest- bia’s business journal, Portafolio, of petroleum prices and boasts suf- José Darío Uribe, Governor of the ment (FDI) has never been higher, “We have trust and agrees: “It is very clear that Colom- ficient liquidity to cover its short Colombia’s central bank, left, and with record levels registered in 2013 bia has made a fundamental turn in term obligations. In short, it has the Mauricio Cárdenas, Colombia’s credibility in the mar- Minister of Finance, have intro- and 2014. And multilateral com- terms of viability and stability, per- strength to weather unforeseeable kets, and we know duced successful fiscal policies mercial ties are thriving: free trade spective and concrete advances, es- storms and to support Colombia’s that have led to growing investor agreements (FTAs) with more than that these are two pecially when it comes to the social current needs. confidence in the economy and a dozen countries have been signed very important as- side.” José Darío Uribe, governor of the banking system or are being negotiated. The US- sets for any economy The rise of FDI in the country has Colombian central bank, comments, Colombia FTA went into force on helped significantly in the country’s “An important part of the Colombi- is why it is so important to stay to- May 2012. Colombia is a founding to be successful. We recovery. Camilo Reyes, executive an economy is the strength of its fi- gether and support the government member of the Pacific Alliance, and want to safeguard director of the American Colombian nancial system. We have a well-capi- through this process.” in 2013, it began its ascension pro- that trust so we do Chamber of Commerce says that in talized, profitable and liquid banking Mr. Cárdenas says that peace will cess to the Organization of Econom- 2000, Colombia received $2 billion in sector, which has expanded region- pay for itself. “There are countless ic Cooperation and Development our best to commu- investment while in 2015, it received ally and is increasingly reaching vari- studies that show that Colombia will (OECD). nicate everything the nearly $17 billion. “That means it has ous sectors of the Colombian popu- be able to grow at least an extra 1% Not one to blow his own horn, the government does. grown eight-fold. There are many rea- lation. This has helped Colombia, per year. Why? Because peace will award-winning Mr. Cárdenas gives sons for this, but one of the most sig- despite slower growth, absorb nega- bring more tourism, it will allow much of the credit for Colombia’s That is a very impor- nificant is the stability of the country’s tive external shocks and continue to us to expand our agricultural land, positive economic performance to tant aspect of our financial system,” he comments. excel in the region. Looking forward, and it will bring more investment President Juan Manuel Santos, and economy” Jorge Castaño Gutierrez, superin- we will see the financial sector mak- into the mining and energy sectors. the rest to his team. “There is no tendent of the Colombia Financial ing a valuable contribution to the That’s why we say that peace will doubt that these are awards for a Mauricio Cárdenas Superintendence (SFC), the finan- development of the country, as it pay for itself, because it will bring team effort, and the president has Santa maría, Finance cial supervisory authority, says that makes further progress in financial the commitment for further invest- played a very important role. Presi- Minister beyond being the economy with the inclusion, especially in rural seg- ment, for reparation to the victims, dent Santos was minister of finance most promising growth projections ments and small- and medium-sized and for assisting those segments of before. He knows what this position in the region, investor trust in Co- producers, and as it participates in the population who need help the means and has been a continuing “An important part of lombia stems from the government’s the financing of major infrastructure most. The peace process will de- support. He is probably the most the Colombian econ- responsible fiscal management. “Fis- projects.” mand resources, but in fact it will concerned person in the entire cal order gives credibility in the gov- Mr. Gutierrez says the sector plan be the peace itself that will allow us country about the issue of fiscal re- omy is the strength of ernment’s management of public is based on seven pillars, of which to cover the financial costs of those sponsibility, just as he was when he its financial system. finance, and it is that credibility that three are strategically aimed at fi- commitments.” was minister himself, and now as We have a well-capi- keeps the growth rates, the inflation nancial inclusion, including the ex- With economic and political sta- president he has made very impor- and general macroeconomic policies pansion of banking services like mo- bility within reach, Colombia has tant decisions, such as the fiscal law talized, profitable and under control. This is why, despite bile banking. Growing the country’s now set its sights on another great and changing the constitution in or- liquid banking sector, the deceleration in the price of com- stock market with an eye to regional goal becoming a member of the der to include fiscal sustainability as which has expanded modities, we are still seeing great con- integration and expanding microfi- OECD, the final nod to its maturity a right for all citizens. He makes the fidence from investors,” he says. nance are also priorities. “We have as a nation. Mr. Cárdenas is confi- job of minister of finance a lot easier.” regionally and is in- “The implicit message behind this increased the number of people who dent that it will happen soon. “We It helps that the model Colombia creasingly reaching is that the perception of trust in the have some kind of financial product, have excellent macroeconomic has adopted is actually working. It is various sectors of the country’s institutions regarding the from 60% or 65% in 2012 to close policy, we are doing great in matters one that emphasizes fiscal respon- economic policy and sustainability of to 72.5% today, and we expect this sibility and discipline but that also Colombian popula- the financial system are all aimed at to reach 85% by 2018. We have also focuses on wealth redistribution. tion” maintaining very good potential for improved in the microcredit area, The wealthy are taxed more heav- José Darío Uribe, growth and foreign investment. To- supporting SMEs (small- and medi- ily; those in need receive more. “We Governor of the Colombian day, over 17% of all public debt secu- um-sized enterprises), and have had are not afraid of the word redistri- central bank rities are owned by foreign investors, very good results. Our financial in- bution. We are very progressive in who also own a significant percent- clusion policies in the stock market matters of allocating state resources, age of hedge bonds, which we see as a are based on Collective Investment but we are quite conservative when “Fiscal order gives strategy for a stable investment in the Funds (CIF), an instrument created it comes to macroeconomics. It is medium and long term, not as some- by the government to democratize like blending together two ideas that credibility in the thing done by opportunists.” the market.” used to be considered incompatible,” government’s man- Mr. Gutierrez points to the way Carlos Raúl Yepes, president of Mr. Cárdenas explains. agement of public Colombia responded quickly to the Bancolombia, the only Colombian Incompatible or not, it is unques- drop in commodities prices by mov- financial institution listed on the tionable that the approach is work- finance, and it is that ing towards different sectors. He feels NYSE, says that despite the slow- ing. When Fitch updated Colombia’s credibility that keeps that the positive impact of this will be down this year, the economy is still ratings to ‘BBB – outlook stable’ a the growth rates, the felt in real terms in 2016. “Obviously growing and so is his bank. “I think few years back, it did so based on the 2015 has been a year of some uncer- that in moments like this, the econ- “I think that in mo- inflation and general country’s debt dynamics and cred- tainty, but I think in 2016, we will see omy is in good shape if it is growing ments like this, the ible and consistent policies. Fitch macroeconomic poli- more clearly the different impact. between 3% and 3.5%. The IMF pre- economy is in good highlighted that Colombia’s general cies under control. There is not one single sector that dicted a 0.5% of growth for all Latin government debt of 37.1% of GDP is especially vulnerable. All sectors America, which means Colombia shape if it is growing This is why, despite remains below its peers and is fore- are contributing to GDP, especially is growing much greater than what between 3% and 3.5%. casted to steadily decline. Fitch’s the deceleration in the financial sector. This is a result of the IMF is expecting for the region. The IMF predicted a upgrade followed investment grade the price of commod- strong institutions, a precise macro- It is not the level we want, but there ratings by both Standard & Poor’s economic policy and a solid financial are many global factors that have an 0.5% of growth for all ities, we are still see- and Moody’s. system. Those are the elements that impact on this slowdown. So we are Latin America, which “Fitch said that our economic ing great confidence have allowed Colombia to transform optimistic, and in this financial in- means Colombia is policies have continuity, and indeed, from investors” itself.” stitution, we are accompanying the they have been very consistent, and growth. We have the ability to con- growing much greater include fiscal discipline, inflation Jorge Castaño Solid banking sector tinue this trend. There are many op- than what the IMF is control, and a strong financial sys- Gutierrez, In 2015, Fitch Ratings stated that portunities and we just have to take tem. The agency also mentioned Superintendent of Colombia’s banks, along with those advantage of them.” expecting for the re- that our policies are appropriate Colombia Financial of Peru, were among the most solid Superintendence (SFC) gion.” given current lower oil prices. So in Latin America and well pre- The World Stage Mr. Yepes also serves as a member Carlos Raúl Yepes, we have trust and credibility in the pared to handle external shocks. President of Bancolombia markets, and we know that these are while still high, has been in steady de- Adequately capitalized with ample of Colombia’s Advisory Commis- two very important assets for any cline. Efraín Forero, president of Da- reserves, the banking sector is well sion for Peace and believes that the economy to be successful. We want vivienda, part of Bolivar Group, the positioned to support Colombia’s end of the conflict will have a signifi- of tax policies, we are a very open to safeguard that trust so we do our third largest bank in the country, says, economic growth. cant positive impact upon economic country and we comply with all the best to communicate everything “I believe that Colombia is a country It is also profitable. In 2014, sec- growth. “Indeed, I think peace will standards required by the Good the government does. That is a very that, among emerging economies, is tor profits rose by 10.8%. Pension create many opportunities. Our role Practice Guidance of the OECD,” he important aspect of our economy,” in a process that has over the past 15 plans grew by an outstanding 85% is not only in the economic aspect, concludes. “Although there are a few adds Mr. Cárdenas. years considerably improved many and sector shares rose to $56 billion. but also as members of society. In- chapters where there is still some The social impact of this economic things, in terms of employment, the In 2015, Colombia’s banks are esti- teraction with society and the ability work left to do, we are working on progress has been felt acutely. Be- reduction of poverty, the growth of mated to have grown a further 4.5%, to achieve different effects are very them. Colombia is going through a tween 2010 and 2014, 4.5 million the middle class, and the strengthen- driven by private consumption, new important aspects of any company. very exciting time. The OECD rep- Colombians rose out of poverty, ing of government institutions and of infrastructure projects and a rise in I’m convinced that achieving peace resentatives themselves say it. We while 2 million more escaped from private business.” housing demand. The sector is not is the best thing that could happen to are definitely on the right track. extreme poverty. Unemployment, Ricardo Avila, director of Colom- overly exposed to the highs and lows the entire Colombian society, which This is going to be a reality.” Page 4 AN INDEPENDENT SUPPLEMENT FOR THE MIAMI HERALD PRODUCED BY BUSINESS & INVESTMENT LTD.

The Fourth Generation (4G) road infrastructure program will see the construction of 8,000 kilometers of roadway and 3,500 kilometers of four-lane highways Colombia thinks big with $70 billion infrastructure program and Caribbean and Pacific ports. The second significantly,” says Mr. Andrade Moreno. “We The $70 billion plan to 2035 arm includes policy for sector regulation, are also in the middle of a restructuring pro- will improve regional and urban mobility, the logistics management of cess of our ports in the main cities, both in international connectivity, national transport corridors and the creation the Pacific and the Caribbean, including the foster regional development of an asset management system for regional expansion of the ports, deepening the access and promote foreign trade networks. canals and improving the connection of the by reducing transport times. The plan has three key objectives: the ports with the main production hubs in the Other major investments promotion of foreign trade through reduc- country, through road, river and airport ex- “It’s a big challenge ing costs and transport times, fostering re- pansion.” to revolutionize the aim to reduce the housing gional development by improving accessi- Air transport in the country has regis- shortage by 50% over the next bility through transport networks, and the tered tremendous growth, exceeding global infrastructure of Co- three years enhanced integration of the country’s terri- growth rates by 2.3%. Colombia expects air lombia, creating a tory in order to ensure broader government passengers in Bogota alone to increase from country that is more “We are undertaking the most ambitious in- reach. The $70 billion plan to 2035 includes a current 27 million annual passengers to 40 vestment program in the history of Colom- 101 basic road projects covering more than million within the next five years. “We have competitive, that is bia. I am talking about over $30 billion, the 12,500 kilometers, 52 projects aimed at inte- the highest growth rate in the world. It has in motion, with more equivalent of four times the expansion of gration of nearly 7,000 kilometers, more than actually been growing by 14% a year, which progress, and closer the Panama Canal. It’s a project that includes 1,600 kilometers of new railway, maritime has made expansion obligatory,” says Mr. roads, ports, airports, river navigability and projects on eight rivers that cover 5,000 kilo- Andrade Moreno, adding that there are cur- to the regions” railways,” says Vice President Germán Vargas meters, 31 airport expansions and port devel- rently 51 airport projects in place. In addition, Natalia Abello Lleras. opment. In other words, it’s huge. a number of railway projects are at the plan- Vives, Minister of He is referring to Colombia’s Fourth Gen- And it has a very special goal. As Minister ning and development phase. They include Transport eration (4G) road infrastructure program, the of Finance Mauricio Cárdenas Santamaria the Dry Canal linking the Caribbean with the largest of its kind in Latin America today. It says, “We have made a significant effort to Pacific, and the Bogotá Metro. involves 47 projects spanning 8,000 kilom- make our economy more normal, to lower eters of roadway and 3,500 kilometers of four- prices in the basic food basket, and we think Paying the toll lane highways as well as expansion of ports we can make that situation last. But for this, José Darío Uribe Escobar, governor of the and railways, all of which are to be completed we need other parts of the economy to per- central bank, says a variety of funding sources by the end of the decade. form well. Consequently, we have set a very will be used to bankroll Colombia’s infrastruc- Despite its scale, however, 4G is only one ambitious program goal in infrastructure and ture transformation. “One of the major bottle- front of an even larger ($70 billion large, to road investment. We have been working on necks to Colombian growth is the lack of ad- be exact) overall infrastructure plan that this strategy for three years now so the coun- equate transportation infrastructure. Hence, Colombia is now undertaking. Aware that try can have new leading sectors, which act the importance of the ambitious investment infrastructure is key to boosting competitive- like a relay, where if one area slows, then an- program driven by the national government. ness and critical in seizing the country’s full other will grow, thus making the economy There are huge opportunities for the funding growth potential, President Juan Manuel San- more dynamic.” of the projects, not only for domestic but also tos first lit the infrastructure torch with a $55 President of the National Infrastructure for foreign actors, and not only for banks but billion, 10-year plan in 2011. It sought to dou- Agency Luis Fernando Andrade Moreno says also for other institutional investors, as is the ble the length of Colombia’s four-lane high- that the government believes the economy case in Colombia of the Pension and Sever- way network, improve airports (including will grow an extra 1.5% as a result of all these ance Funds. Those interested have a strong “Today, many US in- El Dorado, in Bogotá), upgrade railways and projects. “There was recently a study on the institutional sector. The main challenges are expand ports. He established a national infra- impact infrastructure development had in the to adequately define the mix between equity vestment funds are structure agency to oversee it and strength- Antioquía region, where the roads are already and debt, and between the risk taken by the landing in Colombia ened the representation of the infrastructure being built. It showed that it could actually be private sector and the risk taken by the public with investments sector within the president’s office. even more positive than what we thought.” sector,” he says. In 2013, his government unveiled the 4G Indeed, the structural changes implement- worth almost $400 concession plan, which more specifically By land and sea ed by the Colombian government in recent million. This was targeted road development, and in 2015, Minister of Transport Natalia Abello Vives years have provided a solid framework that made possible be- President Santos’ administration announced says the goal is regional connectivity and any is better equipped for tendering projects its intermodal transportation master plan means of transport will be used to achieve it. and attracting private investors. The interest cause Colombia has 2015-2030, calling for annual investment of “It’s a big challenge to revolutionize the in- shown in 2013 by more than 60 Colombian been managed in an $10.4 billion, which in 2015 was equivalent frastructure of Colombia, creating a country and international companies in the $718 mil- economically respon- to 1.3% of GDP. Based on a year of research that is more competitive, that is in motion, lion tender for the Cartagena-Barranquilla spent indentifying the connectivity needs of with more progress, and closer to the regions. road, which will benefit trade and tourism in sible manner” each of the country’s 32 departments, the Our motto in the transport sector is: ‘We are Colombia’s Caribbean region by connecting Luis Felipe Henao, master plan represents a long-term commit- a country of regions.’ We want to bring them the two main cities with ports and free trade Minister of Housing, City ment to strategic growth through infrastruc- closer and we will do this through infrastruc- zones, confirmed this. and Territory ture that connects all the country’s regions, ture and with specific projects for each means Minister Abello Vives adds that one of the and places priority on those projects that of transportation there is.” great side effects of the infrastructure plan will have the greatest impact on the national Though the largest investments are des- has been in the evolution of project financing. economy. tined for the national roads, maritime trans- “This has been one of the great revolutions Mr. Vargas Lleras said during the an- port is also an important part of the national inside the infrastructure sector, not only in nouncement of the master plan that it aimed transport master plan. Colombia intends to the way the projects are planned, but also in to pick up the country and drop it at the fore- become a top destination for cruise ship tour- how they are being licensed and carried out. front of Latin America. Divided into two stra- ism and to double exports, both goals that It started as a change in regulations, in which tegic arms, it contains an infrastructure plan require port updates. The government is also two important legal frameworks were issued, for the core national network and routes of intent on improving access on the Magdalena the Infrastructure Law and the Public-Private national integration aimed at boosting pro- River. Partnerships Law. These two laws changed ductivity and international trade. The plan “Colombia already has 87 port concessions, the way in which projects are contracted, li- connects 18 major city regions, with produc- with an investment in the sector of some $1 censed, and carried out,” she says. tion representing 85% of GDP, to border areas billion annually. This has improved the ports A well established value chain emerged, she

“There was recently a study on the impact infrastructure develop- ment had in the Antio- quía region. It showed that it could actually be even more positive than what we thought” luis Fernando An- drade Moreno, President, National Infra- structure Agency AN INDEPENDENT SUPPLEMENT FOR THE MIAMI HERALD PRODUCED BY BUSINESS & INVESTMENT LTD. Page 5

The construction sector grew 7% in 2014, with $29 billion invested in new housing

says, which involves a high level of interaction lowing them to pay for the home with the team, it means that people want to work with saw that the way it was structured meant between the public and private sectors. “We same amount as their monthly rent payments, you. That’s what we have achieved with our that those who offered the best product were have worked with them on technical issues and a fourth is aimed at higher income earn- housing policies. People who were not inter- awarded the contracts. So we had to become but also on management, implementing oth- ers. The fifth program continues to grant free ested in investing in social housing have now efficient. Competition is very important,” he er key tools like standard tender documents, homes to those living in extreme poverty. changed their minds,” says Mr. Henao, adding explains. which has created a much more transparent “This way we cover every population seg- that a number of American and European Mr. Mejia, who has spoken at Harvard’s and objective procedure. There has to be an ment, from those who would not be in the real estate investment funds have also set up Kennedy School three times on the subject initial stage of pre-planning of every project, banking system to the middle class. Our goal business in the country. “Today, many US in- of creating sustainable communities, said so only those which are previously approved is to build 450,000 houses through these three vestment funds are landing in Colombia with that his company began to think in terms of and qualified can move to the next stage. We programs. In Colombia, this is revolutionary. investments worth almost $400 million. This creating a city, not just homes. “These macro haven’t received a single complaint in all the In China, it might not be an impressive figure, was made possible because Colombia has projects have made us think differently. In 4G infrastructure projects, and we have al- but in Latin America, it is enormous,” says Mr. been managed in an economically responsi- Colombia these days, you have to think big. ready awarded half of the licenses so it is defi- Vargas Lleras. ble manner.” It is not just about building houses, but eve- nitely an important shift in the way things are Not surprisingly, Colombia’s construction Roberto Moreno Mejía, president of de- rything that goes along with it, like schools, done. This is all helping us achieve very differ- sector is booming. It grew by 7% in 2014, veloper Amarilo, says the sheer size of the health centers, libraries, playgrounds, and ent results from those we were having in the with an investment of $29 billion in new construction projects are a lure for construc- shopping malls. It’s a model of community, of p a st .” homes, a historic record for the country. It tors, and it has also made them more efficient. a city and of sustainability, and every day we Mr. Vargas Lleras agrees the reaction to is also credited with creating 1.5 million “In the 100,000 Homes program, we quickly work on perfecting it.” tenders has been “wonderful, in terms of the new jobs and with having a direct impact participation and the amount of companies on 28 subsectors of the economy. In addi- interested in tendering.” But then again, says tion to new homes, President Santos has an- the Vice President, not all countries have such nounced that the state will invest $6 billion an ambitious plan or one offering such attrac- in the construction of new schools, parks tive conditions. and daycare centers. Funding variety has formed a crucial part Minister of Housing, City and Territory of the success so far, with the government Luis Felipe Henao says that ultimately what authorizing the participation of domestic the government is doing is creating an equi- and foreign pension funds. “The domestic table and sustainable society. “We don’t just banking sector has also responded extremely have a housing policy, we have a city policy. well. We must not forget that each of these This means developing more democratic and projects has a certain quota of indebtedness environmentally sustainable cities, with the in dollars, up to 50% in foreign currency, with clear objective to reduce poverty and slum the currency rate risk being assumed by the housing. One of the most serious problems of Colombian state. I think these uncommonly Latin America is slum housing, and we have advantageous conditions have motivated all the potential to become the country with those international companies to come to the the highest urbanization rates in the region. country and assume these long-term com- Therefore, we want to generate policies to mitments,” adds Mr. Vargas Lleras. guarantee access to housing not only for the The financing plan for 4G is comprised of upper classes but for every Colombian citizen a quarter international financing and three and to make Colombia a more equal country,” quarters domestic financing. Additionally, up he comments. to $5 billion of 4G is expected to be executed “Consequently, it is an investment we are through the local capital markets, private making not only for the benefit of the family debt offerings or other arranged funding. that receives a home, but for the future of the Minister Abello Vives encourages new U.S. country. We hope that children growing up investors to participate. “It is very important in these homes will receive better education, that the U.S. looks at what we are doing here, better access to public services, better condi- and forms a part of this. Spain has been one of tions for future employment and better devel- our investors. There is also participation from opment opportunities. A democracy depends Latin American countries like Chile, Mexico, on all of us having the same starting point, and Brazil. Our public-private partnership and that means equal opportunities. So we policies, and our medium and long-term con- are not only taking care of the society’s most cessions, are a guarantee of stability for our vulnerable, we are also generating a middle investors. Our projects are mature and attrac- class as a country. Our obsession is to gen- tive, we are an emerging and growing com- erate a middle class, and it will be generated munity with great opportunities, and with through access to housing.” the reliability of a government that is backing Henao says that the housing program pro- all these projects and assuring their success. vides the emerging Colombian middle class We invite U.S. investors to come and see for with extra purchasing power, an essential themselves the opportunities for investment component of an active economy, but that it and progress we offer,” she says. also provides security for building contrac- tors. “There have never been so many incen- A place to call home tives for economic development. We needed Further opportunities for investors are pre- to show the country and the world that Co- sent in Colombia’s housing sector. President lombia is capable of building massively. Now, Santos intends to reduce the chronic hous- we are showing the country and the world ing shortage in the country by 50% over the that we are capable of making the nation’s re- next three years. “We will achieve this by im- sources reach the bloodstream of the econo- plementing public policies for the coverage my, and that every peso invested in housing of different segments of the population. For will generate three pesos in the economy,” he those in extreme poverty, we will move for- adds. ward with the plan of free houses. We have al- Part and parcel of the housing program is ready carried out the first phase with 100,000 developing a framework that is also attrac- free homes, and now in this second phase, we tive to the constructors. Both domestic and will focus on smaller towns in rural areas,” ex- international large scale contractors are now plains Mr. Vargas Lleras. actively investing in the country. “Companies Five different plans have been designed for like Fénix have built 6,000 free houses and different income ranges. The My House Now they are building 10,000 more for investors. program will provide 100,000 middle class The rules of the game are clear for the mar- families with support for down payments, a ket. When you have the best players in the second program subsidizes the interest rates field, when you have players like (soccer stars) on social housing, a third targets renters, al- James Rodriguez and Leo Messi on your Page 6 AN INDEPENDENT SUPPLEMENT FOR THE MIAMI HERALD PRODUCED BY BUSINESS & INVESTMENT LTD.

Barranquilla drives diversification efforts through industrial zone and port investments The city of Barranquilla’s The city is also home to several industrial national investors and stimulate the econ- Although Mr. Castellar is well-aware parks – Colombia’s first industrial park omy while contributing to the creation of that Colombia’s economy has been in strategic location, talented was actually built in Barranquilla – and jobs. The agency’s strategy is oriented a pressure cooker situation for several labor pool, industrial parks yet despite the abundance of industrial towards identifying both Colombian and decades, he has faith that hard times and world-class port make areas, the city still has high quality of life, foreign businesses that are considering will soon be over because of the rising it a top destination for in- with top-notch schools, cultural offerings expansion, and making it clear to them need for products that Colombia is well- vestors and space to breathe. “The key to Bar- that Barranquilla provides unique and placed to supply. In particular, he cites the ranquilla’s success is that it really has a added value for a variety of reasons, in- booming demand for natural and organic As a port city that is only 100 kilometers diverse offering of resources that compa- cluding its geographic location, industrial products, which require arable land that from Cartagena and Santa Marta, Bar- nies need and value – that’s what makes parks, and port infrastructure. has not been exposed to chemical pol- ranquilla is strategically placed to be a companies choose to operate here,” says Although it is ahead of the curve indus- lutants. Colombia already has this type nucleus of trade, transportation, and hu- Ana María Badel, the Executive Director trially, from a tourism perspective, Bar- of land available, and can accommodate man capital. Its 12 million inhabitants live of ProBarranquilla, an agency that pro- ranquilla still has room to grow. At pre- the organic production of bananas, man- among the most prestigious universities motes regional investment. sent, its tourism industry retains more of goes and avocados – all staple foods in the and technological institutes that supply One of the main objectives of ProBar- a corporate feel, though that is changing. types of healthy diets that are becoming professionals for the entire Caribbean. ranquilla is to attract domestic and inter- Health tourism has become increasingly increasingly popular. Linking this organic popular, and in recent years, a free zone food production back to infrastructure, for health tourism has been developed Mr. Castellar underscores the importance with both public and private investment. of building roads, rivers, ports, and air- In parallel, there has been a push to ports so that that freight corridors will be make Barranquilla feel less corporate and able to accommodate a boom in produc- more leisurely. A large part of this effort tion and allow for the streamlined trans- involves the construction of an events portation of goods abroad. and convention center that will surely in- At present, Colombia faces an urgent vigorate the tourism industry with new need to improve its connectivity between entertainment and attractions. Strategi- regions. It does not have the full capacity cally located on Barranquilla’s waterfront to supply large markets mainly because overlooking the Magdalena river, the new its competitiveness is affected by the dif- space will be surrounded by a hotel dis- ficulty in transporting goods between trict, a shopping district, and a corporate ports and where the goods are actually district. “This is without a doubt a project produced. “The cost of transporting a that will change the face of Barranquilla container from Barranquilla to Bogota is because it will reintegrate the river with higher than the cost from Miami to Bar- the rest of the city,” says Ms. Badel. ranquilla,” says Mr. Castellar. He suggests Still, views on Colombia’s economy as that if goods currently transported by a whole are mixed. While some believe road could instead be exported through that it will have the fastest-growing econ- a multimodal transport system – using omy in Latin America this year, others the Magdalena River as the main freight are less optimistic. César Caro Castellar, channel to the port – the country would President of Barranquilla Free Zone, has be able to take its competitiveness to a different perspective. “The best way an entirely new level. In a similar vein, to visualize what is happening with the Mr. Castellar argues that internationally Colombian economy right now is to im- plummeting oil prices have not been an agine a pressure cooker,” says Mr. Castel- entirely bad thing because they’ve pushed lar. “The heat is up and the lid is on, so Colombia towards developing its non- you must open it slowly if you don’t want traditional lines of production. “We are to get burned.” now expecting Colombia to recover its

“The current infrastruc- “Colombia offers advan- ture projects are the tages that no other coun- most important in the tries in the region can. history of the country. It’s a large and secure They are marking the bet for foreign investors, start of a new era – this especially from North is the consolidation America.” of a truly multimodal Julio Gerlein Colombia” Echeverría, President of Valorcon César Caro Castellar, President of Barranquilla Free Zone AN INDEPENDENT SUPPLEMENT FOR THE MIAMI HERALD PRODUCED BY BUSINESS & INVESTMENT LTD. Page 7

By investing in infrastructure and free plains Mr. Daes. “It’s no wonder that we trade zones for manufacturing, the can’t get our own industry off the ground.” port city of Baranquilla is putting itself To do its part in bringing back a more at the forefront of Colombia’s 21st cen- tury industrial revolution industrialized Colombia, Tecnoglass is outfitting its own soft-coat glass factory dredging of the 1500km long Magdalena in Barranquilla. This is especially note- river – which will improve the navigabil- worthy because there are only about 20 ity of the river and contribute to a signifi- soft-coat glass producing machines in cant reduction in the cost of transporting the world, which puts Barranquilla at the goods from the center of the country to technological forefront of glass produc- Barranquilla. In parallel, he mentions tion. In addition to boosting its sales to that free trade agreements have led to in- the U.S., Canada, and Mexico, it is ex- creased real estate projects, an increase pected that the new technology will also in the value of land, and a surge in differ- help Tecnoglass expand its reach across ent industries expanding their operations all of Latin America. to Barranquilla. “For us, Barranquilla is strategically lo- “Colombia offers advantages that no cated and has the best workforce in the other countries in the region can,” says region – its people are dedicated, hard- Mr. Gerlein. “It’s a large and secure bet working, and highly skilled,” explains Mr. for foreign investors, especially from Daes. “The only thing it’s missing is the North America. We no longer have to type of connectivity to the rest of the fear kidnappings or guerillas – we are world that allows for export on a large signing post conflict protocols and look- scale,” he adds. “Once Barranquilla has ing forward to a very different future.” the Superpuerto, not only our company – Nonetheless, according to Christian but Barranquilla as a city – will make an Daes, Chief Operating Officer of Tecno- unimaginable leap forward.” glass – a NASDAQ-listed company that “The Superpuerto project will bring specializes in providing windows, glass, industry and employment to the city, to- and aluminum to the construction sector gether with development that is good for – challenges remain. Barranquilla, for Colombia and for all “When a country like Colombia forgets those connected to it,” adds Tecnoglass about its industrial roots, it naturally re- co-founder and CEO, José Manuel Daes. lies more heavily on imports,” explains René Puche, President of the Port of Mr. Daes, adding that industrial opera- Barranquilla (Sociedad Portuaria Re- industrial and commercial manufactur- companies to take orders and ship them tions are especially challenging because gional de Barranquilla S.A.), is of a simi- ing identity, as well as the agriculture and to buyers in a few hours, thereby mak- light and water cost double what they lar mind. He explains that it currently cattle sectors,” says Mr. Castellar. “The ing it easier for Colombians to purchase do in most industrialized countries, and costs around $1,200 dollars to move a government and the trade unions must goods from abroad. gas is up to five times the price it is in container from Bogota to Barranquilla, be very creative in order to make this a Built according to the highest interna- the U.S. Adding currency devaluation but it sending from Brazil to China only stable and long-lasting situation, promot- tional standards for industrial areas, ZO- makes salaries exponentially more costly costs $150. He adds that is precisely why ing the investment and modernization of FIA includes a system of underground for employers, not to mention taxes and the Colombian government needs to cre- the production facilities.” wiring to avoid visual pollution, as well transportation costs, which also come at ate incentives for companies to relocate Mr. Castellar also acknowledges that as water treatment facilities, wide roads, a heavy premium. their production lines in the areas near attaining true peace in Colombia is in- large green areas, and a system for the “That said, there are ways the Colom- the ports. “We are aiming, among other extricably linked with the country’s pro- recovery of rainwater which will provide bian government can stimulate indus- goals, for the recovery of exports from jected future economic prosperity. He water to the population. It is also pre- trialization and promote a more export- the agriculture sector, and many of our stresses the importance of ensuring that pared to welcome industry of any kind, savvy culture. By providing businesses projects are intended to help in terms of the general population is aware of the and especially well positioned to accom- with greater access to credit, lowering the logistics,” says Mr. Puche. legal, philosophical, psychological, and modate industries that are experiencing the cost of things like energy and gas, and The idea, of course, is not only for lo- economic issues that have to do with the fast growth. “The current infrastructure filling current infrastructure gaps by fa- cal companies to benefit, but to also make conflict, and thus be ready for a defini- projects are the most important in the cilitating projects such as the “Superpu- Colombia more hospitable to foreign cap- tive solution. “We are promoting special history of the country,” says Mr. Castel- erto” – a port that will also accommodate ital. “Barranquilla has the blessing of be- training on the subject of the post-con- lar. “They are marking the start of a new large containers and have specialized ing a city of immigrants,” says Puche. “It flict context, including the basis for the era – this is the consolidation of a truly terminals for different types of products, belongs to everyone and to no one at the strengthening of the public opinion in multimodal Colombia.” Colombian exports will necessarily rise. same time. It’s a city of productive oppor- regard to the building of peace,” says Mr. In addition to ZOFIA, Barranquilla “We’re the only country in the region that tunities, and it is famous for the quality Castellar, emphasizing that peace means will also soon be home to a superb air- lets inexpensive Chinese products enter and diversity of its people. Without ques- not only eradicating weapons, but also port, given that its geography allows for Colombia without imposing a tariff,” ex- tion, this is the best city in Colombia.” the sources of illegally-earned funding excellent security and visibility, and its that also had a harmful impact on Co- location at sea level makes it possible lombian society. for it to operate at the maximum freight. In addition to a concerted push for Likewise, there is a port terminal being peace, significant changes are already constructed at Salgar Port, which when being made to facilitate Colombia’s combined with its other offerings essen- emergence as a vibrant center of trade. tially gives Barranquilla the best logistics ZOFIA – the International Permanent corridor in the whole country. Free Zone of the Atlantic – is one of the According to Julio Gerlein Echeverría city’s capstone projects, and consists of – the President of Valorcon construc- a 100,000-square-meter industrial park tion and engineering company – all of that was built to offer a solid, trust-wor- these logistical improvements will bring thy, and well-structured product to any Colombia to the level of Chile, which is investor interested in reaching a wide already one of the best-connected coun- and important market. Setting it apart tries in the region. from the rest, ZOFIA offers very modern Having spearheaded the design and ex- and useful infrastructure which is diffi- ecution of several leading civil engineer- cult to find elsewhere in Latin America. ing projects, Valorcon has been the driv- It has 14-meter-wide roads, turns suita- ing force behind the Colombian Ministry ble for 22-meter-long trucks, and a traffic of Housing’s push to provide 100,000 capacity of 1,000 trucks per day carrying housing units to families in need. It was 50 tons each. It also has security cameras also responsible for the construction of controlling 100% of its operations and the 60,000-seater Metropolitan Stadium various energy sources with automatic of Barranquilla, now considered one of transfer and price stability clauses that the most important infrastructural pro- allow it to make the best use of the coun- jects in the city. try’s different resources. Location wise, it Ultimately, he believes that big infra- is in the core of the Barranquilla metro- structure projects will benefit Colom- politan area, close to ports, airports, uni- bia, but also strengthen links with other versities, and hotels. Given ZOFIA’s free countries in the region. He describes zone status, it will also make it easier for a particularly important project – the

“The Superpuerto pro- “Barranquilla is strategical- ject will bring industry ly located and has the best and employment to the workforce in the region city, together with – its people are dedicated, development that is hard-working, and highly good for Barranquilla, skilled. The only thing it’s for Colombia and for all missing is the type of con- those connected to it” nectivity to the rest of the José Manuel Daes world that allows for ex- CEO of Tecnoglass port on a large scale.” Christian Daes, Chief Operating Officer of Tecnoglass Page 8 AN INDEPENDENT SUPPLEMENT FOR THE MIAMI HERALD PRODUCED BY BUSINESS & INVESTMENT LTD.

Government lays foundations for an educated and connected society President Santos’ ad- ministration looks to build a fully fuctional digital ecosystem while improving access to and quality of educa- tion from primary to tertiary

Any broadly inclusive definition of the word “education” implies the transfer of knowledge from which a skill set can be generated when it passes from teacher to pupil, master to appren- tice. In Colombia, the challenge lies in making sure the knowledge required to achieve a decent standard of liv- ing, enhanced productivity and social progress gets to where it’s needed in a country where, by way of example, just 3% of its nearly 50 million peo- ple inhabit the tropical lowlands that account for over half the country’s sovereign territory. Regional income disparities and an ongoing exodus to the cities are also problems that resist easy fixes. The importance of a delivery sys- tem for skill-building knowledge ex- plains why the government of Presi- president made an appearance at the Among the measures to be imple- “Thanks to the state’s On completion, the entrepreneur dent Juan Manuel Santos is going all Andecom regional ICT trade fair – mented is the “Bill of Digital Rights” moves to the next stage where he or out to create a digital network that or rather, when his hologram made guaranteeing every Colombian the forward-looking pol- she will receive an assist with permis- relies on massive Internet connec- an appearance – to take stock of what right to a password, an email address, icy on ICT, we are sions and assorted paperwork (en- tivity to support the educational re- has been accomplished. secure access to the cloud as well as able to concentrate vironmental impact studies, market forms that should begin to take effect “We are focused on taking a lead- on-line interfaces designed to bring surveys, financing, etc.). around the same time as net-based ing role in the design of applications government and governed closer to- on improving the A massive digital ecosystem, says learning initiatives are fully up and aimed at overcoming poverty and gether. life of every single President Santos, is essential because running. creating jobs,” he said. “We have a “To transform ideas into sustain- Colombian. Creating the boy or girl now sitting in a class- Is that just a politician’s wish list? more efficient and more transparent able and profitable business opportu- room in Antioquia is someday going You have only to look at the presi- government thanks to ICT. We want nities” is the motto of App.co 2.0, per- jobs, supporting en- to be competing for a job with can- dent’s record since taking office in to spur development of applications haps the most ambitious project on trepreneurs, trans- didates from Hong Kong or Holland. 2010. In that year, the country had that can be exported to the four bil- the Vive Digital do-list. It is a platform forming the relation- But it is not intended as a magical only 200 connected towns and cities lion people in the world at the base for developers of applications, digital cure-all, but an integral part of the ef- and 20% of households connected of the poverty pyramid. As far as tools and web pages, with special em- ship between our fort to update, reform and reboot the to the Internet. A recent tally shows modernizing the government is con- phasis on those that can be marketed cities and regions, all county’s education system from pre- 1,078 connected towns and cities and cerned, we are prioritizing four sec- outside the country or tooled for dif- will be made possi- school to post-doc level. just less than 50% of households con- tors: agriculture, health care, justice ferent types of domestic niche users. “Our goal is to become the best nected. and education.” That is an important consideration ble by ICT” educated country in Latin America But it will not be easy going. Broad- Studies have shown that in coun- given the scant number of business- David Luna, by 2025,” the president said recently. band penetration is relatively low and tries like India that have gone digital es with Internet access. Why pay for Minister of ICT “That means that every father and the number of homes with computers in a big way, for every new job cred- what we don’t need, they argue. But if, mother regardless of their social sta- is small when compared to countries ited to ICT, another 2 to 3.5 indirect let’s say, coffee growers had a custom tus, should commit to instilling in with comparable demographics, a jobs are created. And a recent analysis cellphone app that could monitor their children the character traits that situation the government has sought by Columbia University experts sug- real time price fluctuations on distant “Our goal is to will allow them to be successful in to remedy by eliminating sales tax on gests that by ratcheting up internet commodity exchanges, or keep track their lives, better citizens who assume home computers in the lower price penetration by an additional 10%, of ominous weather patterns, it could become the best the ethical values of honesty and hard ranges. The outlook is even more dire neighboring Chile could trim 2 per- be quite another story. educated country work.” for the microbusinesses that account centage points from its unemploy- This is the territory that Apps.co in Latin America by The government has been doing for 96% of the country’s commercial ment stats. 2.0 has staked out, says Mr. Luna. all it can to support those outcomes. enterprises – barely 7% have Internet Creation of this ecosystem re- “We are convinced that start-ups 2025” Over $2 billion was spent on upgrad- access at the present time. quires a favorable climate for foreign have a fundamental role to play in the juan Manuel Santos, ing school buildings, connecting By the same token, the digital investment and a regulatory frame- development of ICT as an engine of President of Colombia them to the Internet, with additional revolution President Santos is com- work under which returns on that progress for different social actors. funds earmarked for subsidized mitted to should help restore the investment will be generated. In that We aren’t looking for technological lunches, textbooks, computers and competitive edge to exports after the regard, the executive director of the geniuses. We need bright, upbeat in- scholarships for pupils from econom- country slipped from third to seventh telecom regulatory agency CRC, Mr dividuals who are used to teamwork “We can’t allow an- ically disadvantaged families. A series place among Latin American nations Juan Manuel Wilches, pledges that and pooling their strengths for the other generation to of metrics for evaluating teacher per- by global competitiveness metrics. “All our decisions are based on three common good.” formance was introduced, and out- Surprisingly, though, regionally Co- sustaining pillars: promoting com- While Apps.co 2.0’s main mission fail. Today, educa- standing performers are eligible for lombia is surpassed only by Brazil in petition, promoting investment and is to assist developers of digital prod- tion is the priority extra vacation time or up to a year’s terms of social media usage, with 17 protecting consumers.” ucts and services, many opportuni- item on our coun- salary as a cash bonus. million (out of an estimated 23 mil- Last year, former congressman ties that do not require high levels of “We can’t allow another generation lion internet users) possessing at least David Luna was named to head Co- technical competence also exist. For try’s political agen- to fail,” says Education Minister Gina one Twitter account. lombia’s Ministry of Information example: someone planning to go on- da and we need to Parody. With 7.8 million students en- Colombia’s new ICT (Information and Communication Technolo- line with a retail sales venture would step on the gas to rolled, 2 million of them at the high and Communications Technology) gies. “Thanks to the state’s forward- do well to become familiar with email school level, free quality education infrastructure is integrated into Vive looking policy on ICT, we are able marketing techniques, pay per click make even greater is guaranteed to the 11th grade. “To- Digital, the government’s master plan to concentrate on improving the life advertising or search engine optimi- progress with im- day, education is the priority item on for creating the multi-functional digi- of every single Colombian,” he says. zation (SEO). proving our educa- our country’s political agenda and we tal ecosystem proposed by President “Creating jobs, supporting entrepre- The government is reaching out to need to step on the gas to make even Santos at the beginning of his first neurs, transforming the relationship this latter group with a series of on- tion system” greater progress with improving our term in office in 2010. Its first phase between our cities and regions, all line “boot camps” – intensive courses , education system,” the minister af- concluded four years later when the will be made possible by ICT.” focused on acquiring essential skills. Minister of Education firmed. Since its founding in 1957, over 7 million young and not-so-young Colombians have taken advantage Minister of ICT of the array of vocational programs David Luna known as SENA (National Appren- ticeship Service) providing inter- nationally recognized hands-on technical training in areas ranging from furniture design to nanotech- nology. With 1.2 million students enrolled (and a dropout rate under 3%) SENA is by far the country’s leading institution of post-second- ary education, and over 60% of those who obtain qualifications or certification find employment in their chosen field. ”We used to count the number of people who completed their training” recalls SENA’s director general, Al- fonso Prada. “Now the key question is: how many of them are employed? How many have started their own business? With an enrollment equiv- alent to one in every four students of higher education, and our presence in virtually every part of the country (1031 of 1100 municipalities) what we do can’t help but impact on the larger economy.”