Colombia, Opportunities for Growth and Prosperity - Second Edition

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Colombia, Opportunities for Growth and Prosperity - Second Edition

Transcript of Colombia, Opportunities for Growth and Prosperity - Second Edition

Page 1: Colombia, Opportunities for Growth and Prosperity - Second Edition
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Page 3: Colombia, Opportunities for Growth and Prosperity - Second Edition

Language SpanishPo

pula

tion

2,070,408 sq.km.

Tota

l are

a

928,660 sq.km.

Oceans Pacific and Atlantic

Terr

itoria

l wat

ers

Panama, Venezuela, Brazil, Peru and Ecuador

Maritime bordersCosta Rica, Nicaragua, Honduras, Jamaica, Dominican Republic and Haiti

Land

bor

ders

Colombia is five times the size of Japan, six times the size of Malaysia, 25 times the size of the United Arab Emirates. Colombia would fit into China four times, into India 1.5 times. France, Spain and Portugal would together fit into Colombia.

Bogota D.C.

Land

are

a

1,141,748 sq.km.

46.165.461

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PopulationColombia has the second largest population in Latin America, and the 24th largest in the world.

The literacy rate, that is, the number of people aged 15 or over who can read and write, is 91.6%.

The Colombian labour force is among the most skilled and competitive world wide, with a cost 10 times lower than that of developed countries. More than half the population is under 25.

Political organizationThe Republic of Colombia is a unitary, democratic, participatory, and pluralistic state with separation of powers. Colombia has a presidentialist government elected every 4 years. The National Congress has two legislative chambers.

Head of State: President Juan Manuel Santos (2010-2014).

Colombia in international organisationsColombia has been part of the United Nations Organization since 1945, and of most of the organizations in the UN family; it has been a member of the Organization of American States since 1948, and of a wide range of subregional organizations such as UNASUR, the Andean Community, the Meso-American project, and the Association of Caribbean States, amongst others.

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Pacific Ocean

Commercial offices -

Proexport in China and India

Embassies In Colombia: China, India, Iran, Israel, Indonesia, Japan,

Korea, Russia, Lebanon, Turkey

Japan

Australia

Korea

India

China

Malaysia

Lebanon

Russia

Israel

Colombia has 52 Concurrent

Missions

Colombia is one of the 17 megadiverse

countries in the world, with the most significant biodiversity per

square kilometre.

Colombia holds close to 14% of the world’s flora and fauna, although its geographical

territory covers 0.7% of the earth´s land

areas.

Colombia is the second most

biodiverse country in flora, with 45,000 species of vascular

plants.

Colombia´s herbariums have classified more than 130,000 plants.

Colombia is among the world’s richest

countries in species of orchids and palms.

The biodiversity of Colombian fauna is

enormous. There are 479 species of mammals, 1,860 species of birds, and over 35,000 species of insects – without including the

abundant marine fauna in both oceans.

These 1,860 bird species are greater

than the total species found in North

America and Europe. 8% of these birds are endemic, meaning

they are only found in Colombia.

One in five bird species lives in Colombia,

since the 1,860 species represented close to 19%

of the world’s birds.

In world terms, Colombia ranks

second in diversity of amphibians and

primates, and third in diversity of reptiles.

Surprising facts about Colombia’s biodiversity

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Pacific Ocean

Commercial offices -

Proexport in China and India

Embassies In Colombia: China, India, Iran, Israel, Indonesia, Japan,

Korea, Russia, Lebanon, Turkey

Japan

Australia

Korea

India

China

Malaysia

Lebanon

Russia

Israel

Colombia has 52 Concurrent

Missions

The region as a strategic global actor, more scenarios for political dialogue, greater participation in regional forums, better economic relations, better cultural and educational understanding, and inclusion for the academic sector and business.

1 TheDevelopmentPlaniswritteninthetermsofArticle339oftheColombianConstitution,asageneraldocumentinwhichthePresidentsetsoutthemaintargetsandstrategiesforhisperiodofoffice

II. Colombia. A country that looks towards Asia

A. The current government policy guidelines place relations with Asia in a priority position.

The National Development Plan1 2010-2014 of President Juan Manuel Santos, in the section referring to insertion and international relevance, expressly recognizes the need to deepen international relations with Asia, applying the following criteria:

Current presence in Asia and the Pacific and Euro-Asia.

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Diplomatic Missions and Commercial Offices - Proexport to be launched in Asia

“Asia-Pacific is today the driving force in world trade”President of Colombia by Juan Manuel Santos, December 16, 2010)

III. Colombia, a country with plenty to offer.Political dialogueColombia encourages and invigorates political dialogue with other countries, and mechanisms of negotiation with Asia, increasing its presence in the region by high-level visits and participation in forums, and by receiving political and economic leaders from Asia. At the same time, Colombia continues to increase its institutional presence with the opening of diplomatic missions and trade offices. Colombia recognizes that Asia-Pacific is one of the most dynamic and promising regions of the world, since it concentrates 52% of the world population, 33% of GDP, 32% of imports, and 10% of exports.

Embassies: The United Arab Emirates, Indonesia, and Turkey.

Consulates: Shanghai, China. Commercial Offices-Proexport: Seoul, Korea;

Tokyo, Japan; Istanbul, Turkey; and Shangai, China.

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Diversification of tradeColombia seeks to broaden and diversify trade with the world. In Asia-Pacific it has important trading partners, in particular, South Korea, China, Japan, and Singapore. Whereas in 2008 Colombian exports to Asia reached 4.8%, in 2010 the figure rose to 10.2%.

Attractive conditions for new investmentColombia offers wide-ranging legal and logistical guarantees for investment. There is clear and transparent legislation on investment, a secure climate for Colombian and foreign businessmen, a high level of training in human talent, a modern platform for exports, and a geographical location which facilitates air and sea transport.

Access to new technologiesTechnological innovation is a priority to improve competitiveness and education. The Colombian Government has given priority to access to new technologies, through international cooperation and the attraction of foreign investment.

APEC, regional and bilateral relationsColombia is willing to play an active part in the regional architecture of Asia and the Pacific. In order to achieve this goal, it is important for the country to enter the APEC forum, and to establish mechanisms of dialogue with ASEAN2. Additionaly, Colombia places great importance in the use of forums in which it already takes part, such as the Pacific Economic Cooperation Council, the Pacific Arch Initiative, the Profound Integration Alliance, and the Latin America-East Asia Economic Cooperation Forum (FEALAC).

“We have made progress in treaties with Asia, we have made progress with

Korea, we are exploring the possibility of doing something with China,

of doing something with Japan”...

President Juan Manuel Santos, (April 12, 2011)

2AssociationofSouth-EastAsianNations

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21 double taxation agreements (ADT) with 22 countries

Sign

ed

In fo

rce

Futu

re O

nes Japan

Gulf Cooperation Council (GCC)Australia

South KoreaPanamaTurkey

In n

egot

iati

ons

Free Trade Agreements

Bilateral Investment Treaties (BITS):

3 in force (Peru, Switzerland and Spain)5 signed (UK, South Korea, India, Belgium, China)3 in negotiations (Kuwait, Japan and the UAE)

CAN (Peru, Ecuador y Bolivia)MERCOSUR (Argentina, Paraguay, Uruguay and Brazil)ChileMexicoNorth Triangle (Honduras, Guatemala y El Salvador)Switzerland , Lichtenstein CanadaUnited States

United StatesEFTA (Iceland, Liechtenstein, European Union (Signature)

By 2011, Colombia expects to have complete negotiations of 11 free trade agreements (FTA) with 48 countries, gaining

preferential access to over 1,500 million consumers.

A country of many opportunities

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Economy and trade

The strengthening of economic and commercial relations is a priority in Colombia’s development.The Colombian Government is promoting a competition policy designed to secure equality of access to the market for producers and consumers. Furthermore, the business climate has been very favourable in recent times. Between 2000 and 2009, Colombia’s GDP grew at an average of 4%, which was the highest level since the 1970s.

• Colombia is the third most “friendly” country for doing business in Latin America, and has passed more reforms than any other country in the region, according to the World Bank (2011).

• Colombia ranks fifth in the world and first in Latin America in terms of investor protection.

• Per capita GDP has doubled since 2004.

• In six years, the number of visitors has tripled. While tourism grew 6.7% in 2010 in the rest of the world, it increased 8.9% in Colombia.

• In terms of globalization, Colombia ranks third in Latin America

21 double taxation agreements (ADT) with 22 countries

Sign

ed

In fo

rce

Futu

re O

nes Japan

Gulf Cooperation Council (GCC)Australia

South KoreaPanamaTurkey

In n

egot

iati

ons

Free Trade Agreements

Bilateral Investment Treaties (BITS):

3 in force (Peru, Switzerland and Spain)5 signed (UK, South Korea, India, Belgium, China)3 in negotiations (Kuwait, Japan and the UAE)

CAN (Peru, Ecuador y Bolivia)MERCOSUR (Argentina, Paraguay, Uruguay and Brazil)ChileMexicoNorth Triangle (Honduras, Guatemala y El Salvador)Switzerland , Lichtenstein CanadaUnited States

United StatesEFTA (Iceland, Liechtenstein, European Union (Signature)

By 2011, Colombia expects to have complete negotiations of 11 free trade agreements (FTA) with 48 countries, gaining

preferential access to over 1,500 million consumers.

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Some Asian companies established in Colombia:Principal sectors for Asian investments in Colombia:

“Colombia is a country with a very significant population, but the

most important for this industry will be the skills of its people, and Colombia has very strong talents

in special knowledge, people in engineering and business, and this generates enormous opportunities

in the outsourcing services, such as outsourcing of IT in business processes, and in knowledge of

business processes. Further, costs in Colombia are very competitive compared to others in the region

-Latin America”.

President and CEO of Tholons (India), Avinash Vashishta

Oil and gas, Telecommunications, Vehicles and other means of transport, Logistics, Pharmaceuticals, Instruments and apparatus, Plastics and rubber, Chemicals, Software, IT services, Metal mechanics, Agroindustry, Vehicle parts, Biotechnology.

Colombia’s offer in Asia comprises products such as oil, nickel, coal, coffee, bananas, flowers, and emeralds.

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Foreign direct investment by Asia in Colombia, by country, accumulated 2000-2010

COUNTRY US$MM

KOREA 53,0

JAPAN 44,6

ISRAEL 27,9

CHINA 20,1

HONG KONG 4,3

AFGHANISTAN 3,6

TAIWAN 3,0

INDIA 2,5

LEBANON 1,8

SINGAPORE 1,2

MALAYSIA 1,2

OTHER 0,1

TOTAL 163,3

SOURCE: BANCO DE LA REPÚBLICA (Colombian Central Bank)

Sumitomo Corporation Colombia S.A., Mitsui de Colombia S.A., Toyota de Colombia S.A., Infosys, Reliance Industries Limited Sucursal Colombia Tata Consultancy., Services LG Electronics Colombia Ltda., Hyundai Colombia Automotriz S.A., Samsung Electronics Colombia S.A., Huawei Technologies Co. Ltd.

Some Asian companies established in Colombia:

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Five engines of growth

Infrastructure, innovation, housing, the agricultural sector and mining and energy have been called the “driving forces of growth”, due to their capacity to grow faster than the rest of the economy. Colombia has been using them as the base for its long-term development, and opening its doors to investment in those sectors.

Infrastructure is the support for economic development, competitiveness and regional integration. The challenge is to increase the railway system from 906 to 2000 km, the main highway system from 1050 to 2000 km, and the number of bridges in the primary road network from 1 to 27.

“Colombia is projecting itself as an energy power in the region. There is a great demand for Colombian electricity”3, in terms of internconnection in electricity, the country has developed the infrastructure needed to set up interconnection projects with Panama-Colombia-Chile. Projects under construction will allow an increase of electricity exports to Central America.

Colombia has set its sights on innovation as a strategy for development. Through investment in R&D, IT, ICT and STI activities, Colombia aims at achievement through learning from research, and the potentiation of Colombia’s human capital, and articulation of the productive sector with the academic sector.

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3 Ibid.

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The investment in housing is a fundamental tool in the struggle against poverty. One of the targets for the period 2010-2014 is to increase the number of housing units built from 560,300 to 1,000,000.

Historically, the agricultural sector has been one of the most productive, and one of the largest generators of employment in Colombia. The objective here, in the quest for greater competitiveness and the reduction of poverty, is to increase total agricultural production by 33.9% between 2014 and 2019.

Mining and energy have been among the fastest-growing sectors in the last 10 years, accompanied by high level of foreign direct investment. In 2010, Colombia reached the daily production level of 785,000 barrels, an increase of 14.6% compared to 2009. At the same time, FDI in the mining sector has grown 664% since 2002. Today, Colombia has crude reserves of around 2,000 million barrels.

Colombia opens its doors to capital investment, so that it can achieve these targets.

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Education, culture and the environment

One of the targets in the Colombian development plan is to provide greater possibilities for professional training. Furthermore, it wishes to increase resources to support education at doctoral level for 1,000 students a year, with potential in the furtherance of research which would place Colombia in the vanguard of knowledge in specific areas for development. The target is to increase the number of beneficiaries in doctoral formation programs to 55,000 by 2019.

In basic education, technological development, new forms of evaluation and the implementation of mechanisms such as “learning by doing”, seek to provide instruments which will allow people to approach their day-to-day problems related to society and the environment.

In the cultural area, education plays a leading role in the conservation of Colombia’s heritage. Colombia has more than 700 traditional events, carnivals and festivals, with a wealth of architecture and craft industries which conserve a great legacy handed down through the history of this country.

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• Colombia has agreements for culture, education and sports with nine countries in Asia: China, South Korea, India, Indonesia, Iran, Israel, Lebanon, Malaysia and Turkey. There are current negotiations with Kuwait, and contacts about to begin with Philippines, Australia (culture), New Zealand and Qatar.

• There is an education working plan with China 2011-2014, and one in the process of renewal with Australia.

• Colombian universities have educational agreements with Asian universities (Amity University, Jammia Millia Islamia, Indira Gandhi, in India; University of Pune, Nehru University, ESAP; and the Academy of Government of China, and the University of Pancasila in Indonesia (amongst others).

• Colombia is the perfect country to learn Spanish. Under an agreement with China, 20 Chinese men and women visit Colombia every year to teach Mandarin, perfect their Spanish, and take courses in Colombian universities.

• Through the program Challenge Your Knowledge, Colombia seeks to position itself as the perfect campus for learning Spanish (www.challengeyourknowledge.edu.co).

• Since 2009, 44 Colombian students have received scholarships from the government education promotion agency ICETEX, to study in Asian countries.

• Colombia is negotiating culture programs with India, Israel, Lebanon and China.

• China and Japan have been guest-of-honour countries at Bogota’s International book fair.

Interesting Facts

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Sources

Ministry of Foreign AffairsMinistry of Trade Industry and TourismNational bureau of statistics DANEProexportColombia´s official website for tourism: www.Colombia.TravelColombia's official website for investment: www. Inviertaencolombia.com.

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