Special Advertising Supplement Seeking new friends

As Washington moves closer to ratifying the long-stalled free trade agreement with Colombia, the Latin American nation — buoyed by peace and a resurgent economy — is looking further afield for additional commercial links. Huge opportunities in energy, tourism, ITC, natural resources and infrastructure are attracting record investment from around the world. Special Advertising Supplement Spreading the good news Colombia, named in honor of the European discoverer of the New World but for many years shunned by investors, is today emerging as one of the brightest development hubs in Latin America.

Gradual victory in the long struggle against Marxist-Leninist guerillas turned murderous drug lords has led to a dramatic improvement in security, just when several years of sound economic policy are fueling a business boom. The International Monetary Fund, in its latest “World Economic Outlook” report, predicted that Colombia will enjoy economic growth of 4.6 percent this year, to the now-peaceful city streets, and ser- try’s most important commercial part- followed by 4.5 percent a year through vice sectors like finance, communications ner. Officially dubbed the U.S.–Colombia 2016. Not eye-popping by Chinese levels, and ICT are exceptionally vigorous. Trade Promotion Agreement, the deal was perhaps, but twice the average for ad- Little of this would have happened signed by both governments in November vanced economies and slightly better than without Colombia’s significant progress 2006 and ratified by Colombian legislators regional powerhouse Brazil. And in Co- in countering the FARC guerillas. As de- the following year. However, it stalled in lombia, inflation is firmly under control. fense minister under President Álvaro Washington, where some legislators com- “We are the third-most business- Uribe, Santos led a crackdown whose plained of human rights abuses, including friendly country in the region and the success and popularity helped him win violence against trade unionists. first in terms of investor protection,” said the presidency. Current Defense Minis- Colombian Vice President Angelino President Calderón, ter Rodrigo Rivera Salazar said the coun- Garzón, himself a prominent former la- a Harvard-educated economist, citing try had achieved a “truly outstanding bor leader, called such complaints “an the World Bank’s “Doing Business 2011” decade” in confronting its problems, in excuse, because Colombia now has a very report. “Our foreign direct investment in particular the guerillas. strong policy with respect to the promo- the first three months of 2011 was around “We haven’t finished yet, but today the tion and protection of human rights. It US$3.7 billion, the best ever for the first security challenge from narco-terrorists includes labor rights and environmental quarter, giving us grounds to expect a is concentrated in very rugged jungle rights, protection for the lives of union record year, and exports through May areas a long way from major population members, and the defense of trade union- were up 36 percent in the same period centers,” Rivera said. Cocaine produc- ism as an institution of democracy.” last year.” tion has been cut by half; homicides are at Colombia was not paying lip service in Stalwarts like coffee, natural gas, coal a 32-year low. a bid to win U.S. congressional support, and other minerals are doing well; sub- One of the biggest unknowns has been a he said: “We have defined this as a per- stantial long-needed investment is flowing long-awaited free trade agreement (FTA) manent policy of state; it will not change into infrastructure; tourists are returning with the United States, by far the coun- even if the FTA does not go ahead.”

2 Colombia Special Advertising Supplement

Q&A Juan Manuel Santos “Colombia is a shining star in Latin America, and Latin America is a shining star in the world.” There’s a feeling these days that at last Colombia has damage. Recently we have been dedicating time to a positive international image, that the “Colombia doing what few countries have accomplished, which brand” carries connotations of economic growth and is enacting reforms that will ensure prudent financial competitive business. People say that “Colombia’s management, preventing the federal government Garzón has been one of Colombia’s time has come.” Would you agree? from increasing the public debt above certain pre- point men in Washington, arguing the Yes, I would, and I think the great number of foreign established limits and requiring the government to case with lawmakers: “The U.S. isn’t analysts and businessmen who come here every day, save so that we are prepared for possible crises. doing Colombia any kind of unilateral interested in learning more about our country and favor,” he said. “The FTA is a win-win investing in it, would also agree. In a way, we could say What is the status of relations with the United States, that the stars are aligned over Colombia. which is Colombia’s main trading partner? agreement, although I would almost dare Regardless of the FTA (U.S.–Colombia Trade Promotion to say that given the current state of both To what do you attribute this change Agreement) process, relations are excellent. I have our economies, it is probably even better in international perception? spoken several times with President Obama and we for the United States.” Well, to a number of things. Obviously the have broadened our agenda; it’s not just drugs, it The U.S. International Trade Com- improvements in security and our democratic stability, includes issues of mutual interest like environmental mission calculated that the FTA could but also our track record of honoring our international protection, sustainable development, education, boost U.S. exports by US$1.1 billion a year. obligations, the laws we have adopted to ensure technology transfer, disaster prevention, and the Sergio Díaz-Granados Guida, Colom- accountability in the management of public finances, promotion of democracy and human rights. Today bia’s minister responsible for commerce our good relations with our neighbors and the positive we have the broadest agenda in our history with and industry, said the U.S. FTA was a top role we play in the international community. the United States. priority, but Bogotá would not wait for- What are your concerns as you lead the country Why should investors consider Colombia rather than ever. The country already has preferential at this excellent moment? Are there any pitfalls elsewhere in the region? access to markets containing 450 million you must avoid? Because Colombia offers a stable and growing people; the target is 1.5 billion. Free trade The key is to remember long-term goals and not focus economy, a strong and vibrant democracy, excellent and investment protection deals are at exclusively on the immediate situation. We learned human resources, natural resources of all kinds, various stages of negotiation with Can- our lessons with the economic crisis at the end of and the legal security and business environment to ada, Switzerland, Turkey, South Korea, the 20th century, with the result that when the latest ensure the safety of their investments. And we have a Chile, Mexico, Peru, India, China and the crisis hit us, we had a very robust financial system that characteristic that may be very boring in people, but is Mercosur trade bloc, Díaz-Granados said. withstood the international turmoil almost without very attractive for investors: we are predictable.

Colombia 3 Special Advertising Supplement

Coal, offshore hydrocarbons, electricity and gas — Colombia has an abundance of energy sources, and there’s plenty of opportunity for additional investment.

Colombia in numbers Energy and natural resources Company comments: Colombia wants to develop its natural • “There will be a lot of offshore gas • Full name resources, so it’s playing catch-up after years prospection between 2012 and 2014. Republic of Colombia; independent since 1810 of underinvestment in basic infrastructure. We’re talking about new high-risk • POPulation “We are attracting the interest of ma- areas, but Colombia has great poten- 44.7 million; third biggest in Latin America jor national and international investors to tial.” — Abilio Ramos, general manager of • Area carry out studies and prepare major proj- Petrobas Colombia 2 1.14 million km ; fifth largest in Latin America ects,” said Transport Minister Germán Car- • “Colombia has huge hydroelectric • Capital dona Gutiérrez. “There’s a huge backlog.” potential; just 9 percent has been de- Bogotá; pop. 7.4 million Among the government’s top priorities are veloped so far. We are evaluating stock • GDP a second airport for Bogotá, concession of the markets in the U.S., Canada, Peru and US$285 billion (2010 official exchange rate); Barranquilla airport, dredging the access to Chile to raise capital, via debt or equity.” fifth largest in Latin America Buenaventura Port, and a railroad between — Luis Fernando Rico Pinzón, general Buenaventura and the Magdalena River. manager of Isagen

4 Colombia Special Advertising Supplement

Case Colombia has a thriving private sector with several large, family-controlled multi-sectoral conglomerates, but there are also successful foreign 5 Studies investors. Following are brief pen-pictures of some leading players. Avianca 2 Germán Efromovich Bogotá-based Avianca is one of Latin America’s largest airlines, with a fleet of more than 60 planes. Now in the process of joining Star Alliance, it flies throughout Latin America with connecting service to Miami, Fort Lauderdale, Houston, Washington, D.C., New York and Barcelona. Germán Efromovich, a Bolivian-born Brazilian entrepreneur, bought the struggling company in 2004 and turned it around, merging with Central American carrier TACA and OceanAir, a regional Brazilian airline that he had started earlier. Now rebranded as Avianca, 1 OceanAir is a growing player in the region’s largest airline market. “I don’t like to say I rescued Avianca, because nobody does anything alone. I had the opportunity to change the Grupo Carvajal philosophy and work with a spectacular group of people,” Efromovich said. Ricardo Obregón Grupo Carvajal is a major Colombian Grupo Aval multinational company based in Cali, with 3 Luis Carlos operations ranging from pulp, paper and Sarmiento Angulo packaging to education and information technology. Founded in 1904, the company Grupo Aval Acciones y Valores is Colombia’s 4 now operates in 15 Latin American countries, largest private company, a conglomerate with from Mexico to Argentina, and Europe, with a net worth of around US$3.3 billion as of offices in Spain. Carvajal’s worldwide workforce December 2010. The company’s interests lie is 23,000, and its 2010 billings were 3.05 mainly in banking, telecommunications and real billion pesos. “Colombia has been through estate; Aval controls Banco de Bogotá, Banco de Grupo Santo Domingo difficult times, much more so than any of our Occidente, Banco Popular and Banco AV Villas, Julio Mario Santo Domingo neighbors, but thanks to this our political and respectively the country’s second-, fifth-, seventh- and 14th-largest banks. The man business leaders are much more mature,” said behind Aval is Luis Carlos Sarmiento Angulo, last year listed by Forbes magazine as the Grupo Santo Domingo traces its origins to Ricardo Obregón Trujillo, president of Carvajal world’s 135th-richest man. Sarmiento started in residential and commercial construction brewery investments by Mario Santo Domingo Internacional. “We have had to work with a and is frequently described as a prudent, conservative manager. “I get to the office at in Barranquilla during the Great Depression. By much greater level of risk.” nine in the morning and work till nine at night, but on Saturdays I don’t even answer the 1960s, these investments had merged with the phone. I use that time for reading,” Sarmiento said. Bavaria SA to become Colombia’s leading brewer. Santo Domingo’s son Julio Mario expanded the company to include breweries in Ecuador Carbones del Cerrejón and added interests in air transport, banking, insurance, petrochemicals, food processing, 5 León Teicher construction, automobile manufacture, Cerrejón is a major open-cast coal mine lying 150 kilometers from the Caribbean coast in northern media (including Caracol TV) and metals. The Colombia. It belongs to global mining giants BHP Billiton, Anglo American and Xstrata and produces conglomerate was reorganized in the 1990s around half of Colombia’s coal. Exports were worth US$2.3 billion in 2010; Europe and North America as Grupo Empresarial Bavaria with two public are traditional markets, with South America and China becoming customers more recently. Cerrejón’s holding companies, Bavaria SA (which owns part low-sulfur coal is used mainly in power stations and is shipped via rail to Puerto Bolívar, which handles of SAB Miller) and Valores Bavaria SA. Julio Mario bulk carriers up to 180,000 deadweight metric tons. “Our environmental policy and the way that we Santo Domingo, who lives mainly in New York put it into practice are today one of our most important assets,” President León Teicher, who has an City, was listed by Forbes magazine last year as M.B.A from Stanford University, told stakeholders in the company’s most recent sustainability report. the world’s 123rd-richest man.

Colombia 5 Special Advertising Supplement

Q&A Efraín Enrique Forero President, Davivienda

“We have stable legal rules for investors and the country in Expanding the financial system general, and hopefully It’s a fine time to be in finance in Colombia. Cell phone banking is booming, our democracy will foreign investment is growing, and opportunities abound in stocks continue to strengthen.” and infrastructure.

You have spoken about the possibility of Some people think of cell phone banking could cause GDP to grow to around Davivienda shares being traded on the New York as just another modern convenience. In US$350 billion. In addition, it would Stock Exchange, maybe as soon as next year. Colombia, it could be a way to curb the boost tax collections while stimulating Why is that a priority? informal economy, reduce inequality and retail sales and credit, helping to draw We want to have access to capital markets, among other things, to leverage our growth and help bring millions into the middle class. more people into the middle class. sustainability in the near future. Davivienda has to “The government is pro market, pro The Davivienda bank has introduced be an institution that is prepared to compete not business, pro job creation and pro pov- cell phone banking coupled with a system only with local players but also with international erty reduction,” said Finance Minister that gives card-free, cost-free access to banks, so its ability to consolidate and grow in Juan Carlos Echeverry. “We believe that ATMs. Efraín Enrique Forero, president the major markets will be fundamental. And with the old dichotomies between the market of the bank, said he hopes to sign up 1 mil- the New York exchange now integrating with and the reduction of poverty, and be- lion users in the first year. Germany, the market will be even bigger. tween rich and poor, are simply wrong.” Another huge advantage of cell phone One key policy is to broaden greatly banking could be to pay government wel- So the advantage of a New York listing is the general public’s access to banking fare benefits. Some 3.5 million Colombi- essentially financial? services. Financiers estimate that just ans receive cash payments via a system Well, I think it is a very good step for all companies to take, because in order to list its shares in a three in five adults in Colombia have an Forero described as “exceptionally ru- market like New York, a company must achieve account, meaning there are potentially dimentary,” with paperwork and sav- high standards in terms of transparency, corporate 12 million customers available, albeit ings accounts that require recipients to governance, and commitment to the environment mainly low-income ones. visit the bank. “This process is extremely and the community. This makes for better “Colombia has a huge number of cell costly; it can sometimes represent more companies, and it is part of the very important phones — more than it has people — so than 20 percent of the value of the benefit benefit that you get if you make the effort to go we want people to stop using cash and being paid,” said Forero. to an international stock market. It can make us start making electronic transactions,” The same cell phone banking mecha- a much better and more competitive company. said Echeverry. “This will help curb the nisms will potentially allow for expansion Locally, it offers a certain advantage over underground economy, bringing into the of micro-credit. However, for this to hap- companies that do not make a similar effort. open what currently passes underneath pen, Colombia must relax legal ceilings Does this mean that Davivienda plans to focus the table. Formalizing the economy by on interest rates, the banker explained. exclusively on the U.S. market? incorporating people into the banking Micro-credit will only be cost-effective Not at all. I believe that countries in South America sector will be one of Colombia’s main at interest rates above the current legal must look to other markets. We cannot rely just sources of economic growth.” threshold, though still far below the 250 on America and Europe; we must take advantage Echeverry estimated that as much as percent a year interest that some poorer of the growth opportunities in Asia — and not just 40 percent of the economy may currently Colombians without access to banks cur- China, but throughout Asia. That is the reality. go unaccounted for; thus, formalization rently pay to loan sharks.

6 Colombia Special Advertising Supplement

TOP Bancolombia Banco de BogotÁ Davivienda BBVA Colombia Occidente Total assets*: 53 trillion Total assets*: 39.2 trillion Total assets*: 30.9 trillion Total assets*: 23.4 trillion Total assets*: 18.7 trillion 5 pesos (US$29.0 billion); pesos (US$21.5 billion); more pesos (US$16.9 billion); more pesos (US$12.8 billion); ap- pesos (US$10.2 billion); more than 700 branches; than 730 service points; than 540 branches; present proximately 300 branches; approximately 150 branches; present in Miami, Puerto present in Panama, Nassau, in Panama and Miami Spanish owned present in Panama and Rico, Panama, the Cayman Miami and New York Miami Islands and Peru Banks * Source: Colombian Financial Superintendency, May 2011; US$ values are unofficial conversions using rate of May 31 2011.

Q&A Juan Carlos Echeverry Minister of Finance

Opportunities for investors Derivatives: “We are looking hard at The appreciation of the peso against the U.S. Colombia’s financial sector is teeming this; it’s a very new market in Colombia dollar hurt Colombian exporters, but it gave with possibilities: … Very few asset managers have ventured people access to cheaper consumer goods, Banking: “Foreign banks have the into this area … There’s a new law and we benefiting the commercial sector. What is know-how to offer potentially different are studying all the options.” your exchange rate strategy? products and services; they can offer ex- — Adriana Pinzón de Nassar, president, Well, I see this like a three-lane highway tra competence.” — Román Blanco Rei- Fiduciaria de Occidente where the first lane is to reduce production nosa, president, Banco Santander Stock markets: “The Integrated Latin costs in Colombia so that companies produce Infrastructure: “The volume of business American Market will soon trade over more cheaply, with higher productivity. We in infrastructure will necessarily be very US$500 million a day, offering investors have reduced electricity costs by 20 percent large in Colombia … We have raised US$600 the possibility of a better, more balanced for manufacturers, we have lowered tariffs million to finance mass transit projects.” portfolio.” — Rafael Aparicio Escallón, and the negative protection they provided, we — Felipe Encinales, president, Inverlink director-general, Acciones y Valores have reduced the cost of hiring young people with the “First Job” (Primer Empleo) law, and we are going to reduce taxes where possible. Modern financial instruments are helping dynamize the All this reduces costs and boosts productivity. Colombian economy and kick-start urban development. And the other lanes? We are cutting the fiscal deficit from 3.6 Fiduciaria de Occidente is a subsidiary of Banco de Occidente, one of the largest percent to 3 percent, and the idea is to reach Colombian banks and part of the Grupo Aval financial conglomerate. Essentially 0.6 percent in 2014. The primary deficit of a provider of trust and fiduciary services, the company operates in a number 0.3 percent will become a surplus of 1.5 to 2 of well-defined and expanding market segments, according to Fiduciaria de percent. And our third lane has been central Occidente President Adriana Pinzón de Nassar. The first is managing public and bank intervention, buying US$20 million a day. private investment funds in various types of assets, not just stocks and bonds but also debt instruments, including real estate. “This is clearly our most important What about capital controls? niche,” Pinzón de Nassar said. Another key area is managing public funds destined We avoided these. We introduced a package for example to social security, health, pensions and infrastructure development. of measures last October focusing on resolving Fiduciaria de Occidente is also active in real estate funds. Some are designed for Adriana Pinzón low-income housing, while others target high-end residential developments, microeconomic distortions, and since then the de Nassar offices and malls. “Commercial centers are new here; 10 years ago it was just peso has devalued against the U.S. dollar and streets with shops and businesses,” she said. our Latin American partners: Chile, Peru, Brazil President Fiduciaria and Mexico. This is important. de Occidente Pinzón de Nassar, who lived in England for many years, said the international perception of Colombia still lags behind today’s new reality: “People have to actually come here and see the country to change their opinion. … Colombia is going to be a center of development.”

Colombia 7 Special Advertising Supplement

The stock market Felipe Colombia’s bourse is shaking off the dust Encinales Silva and playing a greater role in the economy, President, Inverlink integrating with other regional markets and increasingly helping companies raise capital for investment. “The exchange and the brokers have changed the way they do business; they “There are significant are reaching out to the general public, and opportunities in the area of asset while numbers are relatively small, there The stock exchange management in Colombia.” are many more individual investors,” said Rafael Aparicio Escallón, director-general In June 2011, Fitch became the third Inverlink describes itself as Colombia’s oldest and of the Acciones y Valores brokerage. of the big three ratings agencies to pro- largest investment bank, with a strong track record in Daily trading volume is running at an mote the country to investment grade, mergers and acquisitions, privatizations, and project average of US$150 million, but a number helping to stimulate foreign interest in finance. The company has strategic alliances with of local IPOs are starting to shake things Colombian stocks. Credit Suisse and InterBolsa, a large brokerage house, up. The Davivienda bank raised US$228 Liquidity should further increase as the but remains independent of major economic groups million last October in a Bogotá offer that new Integrated Latin American Market to avoid potential conflicts of interest, said Inverlink was oversubscribed 13 times. It was the (MILA) gains hold. This electronic trad- President Felipe Encinales. country’s first IPO since 2007. Avianca (via ing system linking the markets of Chile, “We’ve flirted with the idea of going international, its owner Avianca-Taca) followed suit in Colombia and Peru was launched in May. and although we have worked for some clients March of this year, raising around US$250 But some traders said additional harmo- abroad, we believe there are huge opportunities in million. And the state-run Ecopetrol said nization of questions like tax, reporting Colombia,” said Encinales. it planned to offer some 1.67 percent of its and regulation was required to maximize capital for around US$1.4 billion. MILA’s potential.

8 Colombia Special Advertising Supplement The future starts here With Colombia’s economy growing steadily, and the years of trouble fading into the past, sectors like telecommunications, Q&A education and media are expanding rapidly. Diego Molano Vega Minister of Information olombia has seen ex- Technologies and Communications plosive growth in In- ternet, telecommuni- Colombia has ambitious plans to expand C its Internet infrastructure. Is there space cations and mobile telephony The government sees rapid reduced drop-out rates and for private investment? service. The number of broad- expansion of the Internet and virtually doubled student en- Certainly. President Santos likes to say, band Internet users increased mobile telephony as essential rollment in five years. “The market where possible; the state by 44 percent through last to economic growth, going Television is also doing where necessary,” and that clearly defines year, according to government hand in hand with expanding well. Gabriel Reyes Copello, the roles. We need a grand alliance figures, with mobile Internet access to education. president of the RCN chan- between the public and private sectors; users growing even faster. Moisés Wasserman Lérner, nel, said total TV advertising our plan calls for the government to Various companies are rector of the state-funded Na- was growing: “This reveals a invest 5.5 trillion pesos (just over US$3 surfing this market. tional University of Colombia, national trend that, despite billion), and we hope private companies “We grew by 20 percent in said he welcomed the govern- the problems we still have, the will invest three to four times that. 2010, compared with 2009,” ment’s emphasis on education economy is expanding.” said Juan Carlos Acosta, presi- in the country’s national devel- El Tiempo, a leading edito- What are the goals? First, we want broadband connections to dent of Tigo, a cell phone ser- opment plan and recognized rial group, is also optimistic. increase from 2.2 million to 8.8 million. vice provider controlled by the potential of private insti- They have reorganized news- We want domestic Internet connections Luxembourg-based Millicom tutions to expand the volume rooms so that most of their to increase from 27 percent to 50 percent International. Tigo is a third- of degree courses available, journalists no longer write for of homes, which means growth mainly at ranked player in a market although research would con- one organ — for example, the the base of the pyramid, and we want to dominated by Comcel, a sub- tinue to need public funding. flagship El Tiempo newspaper increase the number of companies online. sidiary of Mexico’s América Despite budget constraints, — but rather feed into a content Only 200 of our 1,103 municipalities have Móvil, and Movistar, owned by Wasserman said, the National pool, from which editors supply a fiber-optic connection; we want to get Spain’s Telefónica. University had significantly the group’s various media. that up to 700.

International TV viewers might not know much about Colombian with an enormous diversity of cultures and ideas.” television, but with more and more people tuning into the country’s Caracol is part of the Santo Domingo Group, a major Colombian soaps and other programming, that looks set to change. “Sin Tetas media conglomerate with diversified interests, for example in No Hay Paraíso” (“Without Breasts There Is No Paradise”) a the brewing industry. In recent years, Caracol has restructured 7 million-viewer hit from Caracol, a leading Colombian TV company, into independent business units to grow in the competitive was picked up by the American television network Telemundo and international entertainment market. helped establish Colombia as a creative powerhouse. “It’s impossible for just one person or a small group of directors Overseas Spanish-language cable stations are a prime target to have all the ideas and creativity we need to produce for the Carlos Perez Dávila for Caracol, whose programs have been shown in more than 80 world,” Dávila said. Caracol TV countries, and the company has a 25 percent stake in the Miami TV Part of this reorganization separates content production from the “We make a great effort station WGEN-TV. TV channel, so that Caracol effectively buys programming from “Our success has a lot to do with the talent that exists in the group’s production unit. The latter includes 11 studios and five to export Colombian Colombia, something that comes through in the work of (Nobel mobile units, all variously equipped for high-definition filming. TV programming, Prize-winning author) Gabriel García Márquez,” said Carlos “One key objective is to export our production,” said Dávila. “In and we’ve been very Pérez Dávila, president of Caracol TV. “People here have great terms of the hours of production sold abroad, we are behind only successful.” imaginations; we have great writers and stories. It’s a country Televisa (of Mexico) and Globo (of Brazil) in this continent.”

Colombia 9 Special Advertising Supplement

The Internet is changing the world. Can it change Colombia?

The government has a very clear idea of the role of the Internet: to create jobs, reduce poverty and boost economic growth.

In Colombia, as in most coun- cations. “The Internet gives tries, the Internet spread people opportunities for edu- first among the more afflu- cation and access to informa- ent middle classes and tech- tion and so more employment savvy young. But rather than opportunities.” wait for broadband access to Government plans are gradually trickle down to the based on various studies show- 17 million Colombians who ing that greater Internet ac- in terms of connections per tions for this market segment earn US$350 or less, the gov- cess makes economies more 100 inhabitants. constitutes an opportunity ernment has made expansion competitive. “The World Bank One area of government fo- and is part of the govern- a national priority. says that for every 10 points cus is smaller companies. “Big ment’s ¨Vive Digital¨ plan. “We want technology to of growth in broadband, the companies in Colombia have Other priorities include help us solve our problems, of economy can grow by 1.4 per- better IT services than in New growing online government which the most important is cent,” explained Molano Vega. York or London, because they services, promoting use of the poverty,” said Diego Molano Colombia currently places have the same servers and our Internet in education, growing Vega, minister of information around the middle of the in- technical staff are just as com- telemedicine and digitalizing technologies and communi- ternational broadband table, petent but cheaper. However, medical records. There’s also a the problem is the 96 percent cyber-security program being or more of establishments run by the Ministry of Defen- that are small companies, be- se and a government-backed cause just 7 percent of those plan to put a public Internet are online. So our goal is to connection into every rural raise that to 50 percent in four settlement with more than years,” Molano Vega said. 100 inhabitants. Much more so than the cost Molano Vega said Colombia of the connection, another fac- recognizes that it is competing tor slowing Internet expan- against other Latin American sion in this segment was a lack nations for private IT invest- of appropriate applications ment, but thinks the country for small Colombian compa- offers three differentials: a nies, the minister added. This comprehensive government- meant that small companies wide IT policy, a greater vol- didn’t see a reason to invest ume of local talent and exist- in IT. Thus, providing applica- ing local innovation.

USA Office Spain Office 1050 Connecticut Avenue, NW Paseo de la Castellana, 95. 10th floor, Suite 1000 15 Planta Washington, DC 20036 - USA 28046 Madrid - Spain Tel +1 202 772 1090 Tel +34 91 418 50 32 www.peninsula-press.com [email protected]

Editor-in-Chief Stella Klauhs Writer Brian Nicholson Regional Director Carolina Mateo Creative Director Marta Conceição Project Directors Paula Grunfeld, Carolina Tenzer Designer André Noivo Editorial Assistant Stephanie Brua Illustration André Kano Research Directors Remco van der Graaff Photography Petér J. Liévano and Juanjo López-Viota Segura

10 Colombia