Colombia is ready to Implement the Peace Treaty
Averaging more than 3.0% growth over the last several years, Colombia is one of the most dynamic economies of Latin America. Colombia’s GDP accounts for more than US$600 billion, divided into approximately 7.0% agriculture, 34.0% manufacturing industry, and 59.0% services. However, in terms of employment, the agriculture industry accounts for up to 17.0% of the labor force. Colombia’s agriculture industry produces and exports significant amounts of flowers, coffee, and bananas. Meanwhile, its manufacturing industry concentrates on petroleum, textiles, and apparel, which employ some 21.0% of the total labor force. This article explores how the new and finalized Peace Treaty ensures Colombia’s economic momentum going forward.
Colombia is ready to Implement the Peace Treaty
The year 2016 has marked a turning point in Colombian history. After years of negotiation between the national government and the FARC guerilla, a Peace Treaty agreement was finally reached between both parties earlier this year. Said agreement was submitted to a popular referendum on October 2 and, by a slim margin, the Colombian people expressed dissent with the original terms of the agreement. In turn, the outcome of the referendum led the government and the political opposition to come up with a list of items that needed to be revised within the Peace Treaty before complete implementation. Several weeks of renegotiation with the FARC have brought forth a finalized Peace Treaty based upon revised and new terms, which take into consideration the concerns of the political opposition and the Colombian people.
According to most sectors of civil society, the new and finalized Peace Treaty sets better terms for stability in Colombia because it ensures a fairer and more transparent justice process for the demobilized guerilla fighters. Similarly, the finalized Peace Treaty reasserts the authority of the central government and ensures rural economic development through private initiative. This finalized Peace Treaty is the product of a great national consensus representing the three main sectors of Colombian society: the government, the political opposition, and the FARC guerrilla. Therefore, the finalized Peace Treaty will likely be approved by the Colombian Congress without the need to organize another national referendum.
The implementation of the Peace Treaty by the government of President Santos, who will be in office until 2018, contributes to Colombia’s continued economic prosperity. The end of the armed conflict with the FARC guerrilla brings further stability to Colombia, particularly in sectors such as rural development and investment. Already a major recipient of foreign direct investment within Latin America, the ongoing political advances will contribute to the country’s economic development. Colombia is an attractive destination for financial ventures because of its vast and diverse landscape, which is suitable for agricultural as well as industrial development. Similarly, over the last several years, particularly during 2016, the exchange rate between the United States Dollar (USD) and the Colombian Peso (COP) has been very favorable for foreign investors, averaging 2.900 COP to one USD.
(Read more about how the Nobel for President Santos increases Momentum for Peace in Colombia)