PAGINA PRINCIPAL

COLOMBIA, A POSITIVE COUNTRY

Prepared by:
Affairs Coordinator
Internal and External Communications
Ministry of Foreign Relations

ON THE FRONT PAGE

NATIONAL PEACE PRIZE IN CAQUETÁ: the peasants in Remolinos del Caguán are proud of themselves. A cooperative that promotes cacao cultivation as a substitute for cocaine cultivation, and the indigenous guard, whose weapons are wooden staffs, received the National Peace Prize. Thanks to that award, their message of peace has served as an example for the entire country. Differences are resolved in this community by dialogue and the strength of all members, without seeking to defeat the other guy, but recognizing his rights and his dignity. The Cacao growing cooperative is made up of 58 peasant families who are now dedicated to producing chocolate.

SOCIAL INVESTMENT

FIRM COMMITMENT TO CHILDREN: during the course of the current administration the national government has delivered more than 96 million breakfasts to 503,000 poor children of the country, with an investment reaching $66,553 million. This initiative has reached 601 towns, and functions at 2,600 sites across Colombian territory. To lower the levels of chronic malnutrition, to complement the nutritional level of the most vulnerable children, and to reduce other problems directly related to malnutrition are some of the objectives of the Children’s Breakfast Program. Breakfast is given for free. Any type of commercialization or electoral use made of the program can be denounced by calling 018000918080 at the ICBF.

DECONTAMINATION OF THE BOGOTÁ RIVER: the National Council of Economic and Social Policy (Conpes) approved a strategy for recovering the Bogotá River, with an investment plan of more than $5.7 trillion Colombian pesos that will last until the year 2020. Of that amount, to date, resources of $3.1 trillion are ascertained, with a remainder of $2.6 trillion still lacking, which will be appropriated as other financing sources are gradually identified throughout the execution of the project. The plan includes 3 phases in which a group of environmental, territorial, and administrative policies and actions are defined. The first stage will be executed between 2004 and 2008, and the second will last until 2013. The final phase will conclude in 2020. Project execution will be evaluated every six months.

MORE FOREST RANGER FAMILIES: the Families in Action Program, part of Plan Colombia, will involve nine thousand new families in the month of December, joining the 21 thousand families already benefiting from the initiative. Next year the national government will invest resources in an amount greater than $180 billion pesos in the economic support of these families. Those involved in the Program are inhabitants of Nariño, Caquetá, Putumayo, Huila, Boyacá, Antioquia and Norte de Santander. The United Nations will carry out verification of the Families in Action Program under Plan Colombia.

SUSTAINABLE ECONOMIC GROWTH AND GENERATION OF EMPLOYMENT

ELECTRICAL STRENGTHENING AND GROWTH: in the last two years the Colombian electrical sector has experienced a recovery. While in 2002 the electrical companies’ losses were more than $300 billion, today their earnings are over $520 billion pesos and no company is experiencing interventions by the Service Superintendence. Specifically, in the last two years the income of this group of businesses grew by 35%, personnel was reduced by 15% and sales productivity per employee increased from $414 million in 2002 to $585 million this year. In the same way, users per employee increased by an average of 515 in 2002, to 570.

EXPORTATIONS INCREASING: in the first nine months of this year, Colombian exports grew by 22.2% with respect to the same period in 2003. They grew from US$9,705 million from January to September of 2003, to US$11,864 million in the same time period in 2004. Non-traditional exports grew by 23.2%, while traditional exports grew by 21.1% as a consequence of higher prices for oil and oil derivatives. The United States continues to be the main market for Colombian products, receiving 40% of all Colombian exports, estimated at US$4,779 million.

DEMOCRATIC SECURITY

COLLECTIVE DEMOBILIZATION OF THE AUC: a total of 47 members of the Self Defense Groups of the South of Magdalena and the Island of San Fernando demobilized and began a process of reincorporation into civilian life. Representatives of the national government, the departmental government, and the OAS mission attended this demobilization act that took place in the village of Santa Rosa, in the south of Magdalena. The dismantling of this group is part of a timeline for collective demobilizations in 2004 revealed by the government and the AUC last November 3, which includes the handing over of weapons and the reincorporation into civilian life of at least three thousand men from that illegal armed group before the end of this current year.

STATE EFFICIENCY AND TRANSPARENCY

SAVINGS FOR THE STATE: reforms in public administration helped the State to cut losses by 1,307,000,000 Colombian pesos. In the case of the Social Security Institute, changes in labor legislation enabled it to cut losses by $536 billion. The shut down of four institutions in the agricultural sector (DRI, Inpa, Inat and Incora), saved operating costs of more than $60,500 million, and the disappearance of Inurbe saved $16.552 million. In the same way, with the liquidation of Telecom, Inravisión and Audiovisuales, among others, the government saved $553 billion.

OPERATING COSTS REDUCED: in a single year, from September 2003 to September 2004, the operating costs of the national government – excluding the Defense sector – have been reduced by 16%. More specifically, during this time period the decrease in the operating costs of the industrial and commercial undertakings of the State is 25.6%. By Ministries, the one that has most reduced its costs is Agriculture, with a decrease of 13%; followed by Foreign Relations with a 9% reduction, and Social Protection with a decrease of 7% in expenditures. Other significant reductions have been obtained by the National Registry (62.2%), the National Department of Planning (10%), the Comptroller General (3.9%) and the Procurator’s Office (0.8%).

SUCCESSFUL RESTRUCTURING: thanks to a restructuring agreement promoted by the national government, the iron foundry Acerías Paz del Río obtained earnings of $150 billion pesos between 2003 and 2004 to date. In the agreement signed in July 2003, workers made the commitment to freeze salaries for 18 months, and receive salary adjustments, starting in 2005 and until the end of the agreement, equivalent to the CPI. They also accepted a reduction in their seniority bonus and the suspension of their Christmas bonus for the years 2003, 2004 and 2005. On their part, the shareholders agreed to not distribute earnings and to adopt a conduct code that included: an independent board of directors, transparency in the contract process, and greater professionalism in administration. Meanwhile, the company promised to pay the restructured obligations, as well as to move ahead on a process of industrial reconversion.

MUISCA REDUCES TIME FOR PAPERWORK: thanks to the Unique Model for Automated Income, Services, and Control System (Muisca) the paperwork for foreign commerce, imports and exports, that in 2002 took 72 hours, can today be processed in 14 hours. This reduction represents a decrease of 5% in production costs for business owners. Specifically, the information report for foreign commerce that previously required 6 months is now immediate. In the same way, three systems were combined into one in customs. The Customs Administration System was expanded for the operation of foreign commerce. As far as the simplification of forms, the form for reporting income for individuals went from 120 lines to 83. Import forms reduced 167 lines to 104, while those for exports went from 197 to 112.

(FIN/PCO/CIE)
December 10, 2004

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© 2003 PRESIDENCIA DE LA REPÚBLICA