Moving Forward with a New Economic Model

Colombia is one of the most promising nations in Latin America as it relates to economic growth, political stability, and social prosperity. For too long, one major obstacle standing in the way of this development was the country’s intern civil strife. Throughout the last fifty years, armed non-state actors used to control remote areas of Colombia’s most peripheral departments. Such armed groups exploited this de facto control to threaten civilians, levy unofficial taxes, and exert pressure on the government as well as private enterprise. However, in 2002, Colombia became a signatory of the International Humanitarian Law conventions and, during the last year, the country started implementing the Havana Peace Accords that it reached with its last major guerilla.

Moving Forward with a New Economic Model

Simultaneously, during the 21st century, the increasing demand of Chinese industry will push Beijing towards a closer resource exportation relationship with Colombia. This new scenario and the construction of a post-conflict society present new challenges and opportunities for Colombia. While the previously inhabited rural areas have been vacated and half of the national territory remains virgin land, the old issues of sustainable development and fair land distribution come into play once again. As Colombia is gaining political and economic stability, global investors and multinational companies are looking into financial opportunities within a territory that is rich in mineral resources, energy reserves, agricultural output, and biological diversity.

In this regard, while one of the central issues in the Havana Peace Accords talks has been land restitution for the victims that were forcibly displaced by the conflict, several clauses prevent the restitution of lands that are now owned or leased by active private firms and multinational companies for purposes of economic development. This move by the national government is meant as a reassurance for international investors that the Havana Peace Accords do not jeopardize their economic presence in the country or Colombia’s legal competitiveness. During the coming years, particularly after this year’s presidential election in Colombia, the prospects for investors should become even better due to increased political stability. As the national government seeks to facilitate Colombia’s economic growth and rural communities can develop in peace, the prospect of sustainable agricultural initiatives becomes ever more important.

This is why, through Farmfolio’s initiatives in Panama and Colombia, our CEO Dax Cooke wants international investors to capitalize on agriculture as a unique natural resource by way of a new and innovative asset class. Farmfolio’s Farmshare offerings contribute socially and economically to the Latin American communities where they are settled by empowering them to grow and upscale their entrepreneurial vision, while yielding high returns for our clients and investors. In this sense, Farmfolio’s investment model is unprecedented when it comes to foreign investment because it provides for innovative, sustainable, and responsible economic development in emerging markets.

(Read more about Global Trade and National Production of Honey)