Colombia conjures up images of rampant kidnappings, brutal militias fighting vicious leftist rebels and an insidious global drug trade. It has been portrayed in the global media as a social volcano on the verge of erupting into more violence, as the system drowns in a cesspool of corruption, backward infrastructure and political warlordism.
The government has been faulted for its failure to eradicate kidnap gangs and drug cartels and to bridge the yawning divide between rich and poor.
It seems as though the death of über-druglord Pablo Escobar ten years ago, the deportation of other drug kingpins to the US and the government’s success against right wing militias have hardly made a dent in long held perceptions that the country is a dangerous and unusual destination, even for journalists.
Judging from the startled expressions this writer received on informing friends that a trip to Colombia was being arranged, perception still needs to catch up with reality.
Order returns
And that reality is that the Andean country has undergone vast changes and is now one of the world’s most promising emerging economies. The Asset recently visited the Colombian cities of Bogotá, Medellín and Cartagena to take a first-hand look. Bruce Mac Master Rojas, Colombia’s genial vice-minister for treasury explains that the country’s security situation has much improved in the last five years, following the government’s success against renegade militias and the dreaded FARC rebels, left-wing revolutionaries who have resorted to kidnapping prominent Colombians and foreigners to advance their political agenda.
Paula Alban, an ex-journalist who works with Proexport Colombia, vividly remembers what it was like ten years ago, when rebels controlled swathes of the country and drug cartels vied for control of key cities such as Cali and Medellín. In Bogotá, she recalls, it was virtually impossible to move around since a large part of city was controlled by the rebels.
Encouraged by the restoration of peace and order, new hotels are popping up in key cities whose infrastructure is struggling to catch up with the surging growth, resulting in traffic gridlocks that are common in emerging market cities anywhere.
The peace dividend
Other sectors too of the economy have seen investment inflows: oil and gold mining, textile manufacturing, audio-visual indiustries, shipping and telecommunications. In light of the improved security situation, multinationals have been streaming into Colombia to explore opportunities. Global mining companies have returned keen to tap the country’s untapped reserves of gold.
The vast opportunities in infrastructure building have attracted Chinese companies such as China Aviation Holdings which operates Beijing Capital Airport. (See story on TheAsset.com.) US companies, among them General Electric, are establishing call centres, tapping the pool of cheap but highly educated labour pool. Bogotá is considered one of the major centres of learning in South America and the city boasts over 100 universities and colleges offering high quality education.
The new government knows what needs to be done to sustain the mood of optimism that has swept though the country. “We need to create more jobs,” according to Rojas, the vice-minister. Securing the necessary investments from both local companies and foreign businesses to achieve this will depend on how welcoming the country’s investment and labour laws are going to be in the years to come.
Rojas acknowledges it won’t be easy, but with the new government that was inaugurated in August last year the Colombians are more hopeful of at least winning the battle of perception, and persuade foreigners that Colombia is a smart destination for their investments and a safe place to visit.
This was published in the February 2011 issue of The Asset
