Published on April 13, 2008
Development in Colombia: Development in Colombia A Case Study Four Geographically & Indistinctively peoples Caribbean – Central – Pacific – Amazon: Four Geographically & Indistinctively peoples Caribbean – Central – Pacific – Amazon Caribbean Tropical forest, beach & mountains High concentration of African descent (25% Colombia Population) Tourist boom destination (St. Maria, St. Andres, Cartagena) Central Mountains (Andes) & Valleys High densely cities & sparse villages (Bogotá, Cali & Medellin w/50%population) Cities industrial, power-finance centers Villages remote under-developed Coffee, agro-industry and drug … continuation of Colombia Four Regions: … continuation of Colombia Four Regions Pacific Tropical forest, beach & mountains Mostly Indigenous inhabitants (Very remote with few population) Agricultural awaiting development ( Idyllic small colonial towns ) “Catedral of Narinho” Amazon Jungle Tropical dense, Bio-diverse rich Mostly Indigenous inhabitants (Sparsely populated < 1Million) Awaiting development (Potential of deforestation, degradation) INTRODUCTION: INTRODUCTION Regardless of optimal economic indicators and the less violence experienced today in Colombia… Most development initiatives have failed because Structural Changes demands programs, not projects therefore: Socio-structural changes overall are cosmetic as Colombia still faces problems of social inclusion Economic Structure is dependent as this still awaits “take off” (US backyard) Political Structure still awaits full participation, though security has increased There is no development if : There is no development if People are still “victim” of their race, gender and social class as discrimination unable social mobility, equitably “fair share” of progress and maximization of human capital Country is unable to self-sustain as depends of foreign markets, capital and technology Government is not fully representative of the people (Semi-Oligarch pseudo-democracy Colombia) Modern Colombia1830 – Today: Modern Colombia 1830 – Today VENEZUELA BRAZIL EQUATOR PERU PANAMA The Viceroyalty of PeruThe Viceroyalty of New Granada: The Viceroyalty of Peru The Viceroyalty of New Granada Blasco Nunez de Vela First Viceroy of Peru Modern Colombia under rule of The Viceroy of Peru in Lima From 1510 - 1717 New Granada Coat of Arms Establishment of Santa Fe de Bogotá Capital of Viceroyalty of New Granada From 1717-23, 1735-1819 The Legacy of Colonialism and US-ImperialismThe Disintegration of New Granada & Smaller Colombia: The Legacy of Colonialism and US-Imperialism The Disintegration of New Granada & Smaller Colombia The Republic of New Granada From 1819 – 1830 The Republic of Colombia Series of Secessions: Venezuela 1830 Equator 1830 Cundinamarca 1830-1856 (independent status, incorporated after civil war) Panama 1903 US Invasion for Control of the Panama Canal “New Monroe Doctrine” American for US-Americans …Legacy of colonialism continuationIdiosyncrasy, The Law & Development Efforts: …Legacy of colonialism continuation Idiosyncrasy, The Law & Development Efforts The Spanish Heritage and Modern Idiosyncrasy The Traditional Three (from eleven to four race based) indistinctively socio-economic class reality Upper Class: Creoles and European descend “Mestizo” Middle Class: Professional skilled entrepreneur class, mostly fair skin mestizos Lower Class: some poor mestizos (dark skinned), mostly Indio and Blacks “Limpias de Sangre” Spaniard, Creole, Mestizo,… Indio, samba, mulatto, black …Colonialism today is present in:people are “doom” from to be part of born social class as:: …Colonialism today is present in: people are “doom” from to be part of born social class as: Social inclusion demands social mobility and opportunity denied in the basis of race, gender and class division Realities: Limited educational opportunities (private v. public) Limited job opportunities regardless of formal education (unspoken racial & cultural discrimination: “qualified but black,” “European acculturation,” “Dad’s connections” and “Creole accent”) Limited social inclusion regardless of income due, social class and education due to racial background Decentralization efforts v. popular unwillingness Projects of Social AdvancementThe World Bank Educational Program of Cundinamarca: Projects of Social Advancement The World Bank Educational Program of Cundinamarca WB approves US$ 15M for educational advancement in Cundinamarca (methodology programs, teacher training, and student-implementation plans) Technical layout in Washington and Bogotá face lack of educational understanding, motivation and students socio-economic collateral realities Program interrupted by the WB after spending US$2M mostly in planning but unsuccessfully implemented LESSON: Programs must address reality of those impacted (In this case, uninterested bureaucrats, poor skilled teachers, students facing socio-economic problems and poor infrastructure) …projects of social advancement continuesThe Constitutional Social Inclusion of 1991: …projects of social advancement continues The Constitutional Social Inclusion of 1991 Constitutional amendment of 1991 open a supra-judicial autonomous “super” judges in remote areas with authority over civil (contractual & family) and criminal law Reported corruption and abuses from “super judges” The Constitution framed in French Republican Ideals do not acknowledge discrimination “self-contradiction” Laws address racial inclusion indirectly by programs of “social advancement” to disadvantage populations but no law can change people’s hearts – compare with US Three hundred years of centralism cannot disappear overnight plus Colombia is multicultural. …but there is hopeThe World Bank success in “Familias en Accion”: …but there is hope The World Bank success in “Familias en Accion” 2001, WB approves US$150M to finance the nutritional and educational needs of 347,000 families targeting close to 800,000 people in the form of food and cash. Funds are given to self-run-people’s kitchens to buy or receive food and infrastructure under oversight. Funds are given directly from WB through authorities upon approval to individual schools and students parents for the purchase educational materials. The program success resides in giving direct purchase power to those who can demonstrate need and proper use in addition of direct communal oversight. The Colombian Economy: The Colombian Economy Economic growth does not necessarily ensure societal stability Colombia’s economic development has been both positive and consistent, yet the country still finds itself embroiled in social conflict History of Economic Growth: History of Economic Growth Post World War II, Colombia avoided the debt crisis that stalled the development of its neighbors Colombia also managed to transition from a primarily agricultural economy to manufacturing and industry while maintaining steady growth into the 1980’s Engine for Growth: Engine for Growth Manufacturing Industry. ISI policy used to protect infant industries Manufacturing Industry doubled its share of GDP during the 1970’s Agriculture Small Scale Farmers able to generate high per capita income, because of increased productivity Agriculture accounted for 30% of GDP during the 1970’s Economic Decline: Economic Decline By the mid 1980’s Colombia’s Import Substitution Policy became inefficient Inward orientation prevented innovation Uncompetitive Industrial Culture Increasing anti-export bias; which discourages foreign investment and technology imports High levels of government intervention precluded private investment. Economic Reform: Economic Reform The Barco Administration (1986-1990) recognizes liberalization and market orientation as global trends Asian Countries were proof export based growth was highly desirable and successful International Competition was deemed necessary to modernize the economy Economic Reform: Economic Reform The next president, Gaviria, ambitiously carried out Barco’s trade liberalization policy Rapid decrease in effective protection was decreased from 67% in 1990 to 21.5% in 1992. However, the lowering of these tariffs and deregulation of government controls was unpopular among domestic industrialists. When imports failed to increase there was a massive political backlash. Recession : Recession Gaviria’s successor Samper refused to continue Gaviria’s reforms, and decided to pursue expensive social reform This resulted in massive government spending and public sector debt, which coupled with the decrease in GDP contributed to the economic recession in 1999 Recession: Recession Colombia experiences negative growth for the first time since the Great Depression Poverty increased to 64% in 1999, effectively reversing a decade of progress The increasing income inequality increased the impact the recession had on the impoverished Solutions for the Future: Solutions for the Future 2003 Sustained Recovery High oil prices made oil exportation extremely lucrative for Colombia Fiscally responsible President Alvaro Uribe cuts back on spending and targets inflation Ultimately, trade liberalization did have a positive impact, by creating demand for manufactured goods in foreign markets The Colombian Coffee Crisis: A Threat to Sustainable Development?: By: Albert Chen The Colombian Coffee Crisis: A Threat to Sustainable Development? How Improper Coffee Export Growth Perpetuates Underdevelopment: How Improper Coffee Export Growth Perpetuates Underdevelopment Thesis: farmers and their organizations will continue to receive low profits if they do not control at least parts of the immaterial production Coffee chains continue to expand in developed countries, international coffee prices continue to fall dramatically and producers have been receiving the lowest prices in decades. The coexistence of a coffee boom in consuming countries and a coffee crisis in producing countries : The coexistence of a coffee boom in consuming countries and a coffee crisis in producing countries Dependency Theory Currently, retail sales exceed $70 billion while coffee producers receive only $5.5 billion. While coffee cost $1.20/lb in the 1980s, raw producers make only around $0.50/lb, the lowest prices in almost a century. International Coffee Organization (ICO) In Colombia this trend is highly detrimental because coffee export makes up almost a quarter of its export revenues. : In Colombia this trend is highly detrimental because coffee export makes up almost a quarter of its export revenues. Affirms dependency theory which argues that “underdevelopment is a process when resources are used but to the detriment of the country which owns the resources.” (Lecture 7.10, p. 15) Colombia represents a periphery region which depends on developed core nations, perpetuating a cycle of subordination. : Colombia represents a periphery region which depends on developed core nations, perpetuating a cycle of subordination. In Colombia, the ICO reports that the coffee farmer earns less than 2% of the final retail sales price of a cup of coffee. Low coffee prices foster poor quality coffee beans. Slide28: The ICO’s International Coffee Agreement 2001 identifies way through which both core countries and periphery countries can being to cooperate internationally in order to create a more equal balance between supply and demand without regulating the coffee industry itself. Foreign Aid: Foreign Aid Freddy Slide30: US UN EU US Foreign Aid: US Foreign Aid 2 Main Types in Colombia USAID Main Non-military Aid Plan Colombia Joint Colombia-US Military and Socio-Economic Anti-narcotics Plan USAID: USAID Internally Displaced People (IDP) 2.5 million currently displaced 1.4 million aided (Health, food, water, shelter, education) Former Child Combatants 3-7 thousand current child combatants Aid Center created: 1375 entered currently Plan Colombia: Plan Colombia Employment in Action Families in Action Youth in Action Roads for Peace UNICEF: UNICEF IDP Health Care Education Water and Sanitation EU: EU Peace and Stability Rule of Law Productivity, Competitiveness, and Trade Slide36: State Politics during Independence (1810) Colonial Elites: Agricultural aristocrats Roman Catholic Church Ascending Classes: Merchants Manufacturers “Masses” Slide37: State Liberals Conservatives Appointed governors National Front Guerrilla Dissidents Military Paramilitary Drug Cartels Politics of the National Front “Masses” Slide38: State Liberals Conservatives Elected governors Guerrilla Dissidents Military Paramilitary Drug Traffickers MNC’s US Gov. Recent Politics – Seeking Legitimacy “Masses” Third Parties Recent Political and Security Developments in Colombia: Recent Political and Security Developments in Colombia Colombia has a long tradition of democracy, but an equally long tradition of violence. Several decades of economic development have had little effect on the deteriorating security situation in Colombia. Developments in recent years, however, suggest that Colombia has begun to develop politically and socially. Security has improved and Colombia seems to be on a path to peace and stability. Rise of Marxist Rebel Groups: Rise of Marxist Rebel Groups The FARC and ELN are formed in the 1960s after the revolution in Cuba. Their goals are political revolution and wealth distribution. FARC has 15,000-18,000 members and controls about 30% of Colombia’s territory. ELN has 3,000-5,000 members and little land control Cocaine Production: Cocaine Production Until the mid-90s, Colombia was only the third largest producer of cocaine. Cocaine production moved out of Peru and Bolivia in the 1990s, due to successful coca eradication efforts by the U.S. Between 1993 and 1999, cocaine production in Colombia increased fivefold. Rebel groups have profited greatly from the drug trade and have used their wealth to build-up their armaments. Rise of Paramilitary Groups: Rise of Paramilitary Groups Private armies (paramilitaries) were formed in the 1980s to protect wealthy landowners from the FARC and ELN In 1997 many of these groups merged into the AUC – an umbrella organization for paramilitaries. The Colombian government has consistently turned a blind-eye to AUC attacks on the FARC and ELN The AUC protects many coca farmers and drug lords, and has also profited greatly from cocaine trafficking. Plan Colombia: Plan Colombia Initiated in 2000 by President Andres Pastrana (1998-2002). Most of its enactment has come under President Alvaro Uribe (2002-present). Goals are to defeat rebel groups, demobilize paramilitary fighters, increase security, develop rural infrastructures, and eliminate cocaine production. The United States has contributed over $5 billion in military aid for Plan Colombia. Justice and Peace Law: Justice and Peace Law Enacted by President Uribe in 2003 Grants partial amnesty to paramilitary fighters who admit to their crimes and surrender their illegally obtained wealth. Fighters face a maximum of eight years in prison for the most severe crimes To date, over 31,000 fighters have demobilized. Only 2,000 remain active. Results of Uribe’s Strategies: Results of Uribe’s Strategies Homicides have fallen from over 28,000 in 2003, to around 18,000 in 2005. Kidnappings have decreased from over 3600 reported cases in 2000, to just over 800 in 2005. AUC paramilitary fighters have almost completely demobilized. The state has established a continued presence in many rural areas and has won the loyalties of the locals. The ELN has entered into formal peace negotiations with the state.
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