PAGINA PRINCIPAL

COLOMBIA, A POSITIVE COUNTRY

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

ON THE FRONT PAGE

ENVIRONMENTAL AMBASSADORS: Colombians David Orjuela and Sandra Carolina Agudelo won the Bayer Encuentro Juvenil Ambiental en Colombia (Bayer Environmental Youth Encounter in Colombia) prize, which that multinational presented three months ago. The gathering sought proposals for sustainable development from university students between the ages of 18 and 25. From November 27 to December 3, David and Sandra will be in Leverkusen, Germany, with the winners from 10 other countries.

IMAGE OF COLOMBIA HELD HIGH: Fortalezas de Colombia (Strengths of Colombia), is the new book by the InterAmerican Development Bank (IDB) that portrays the “assets” of Colombia, referring to the solidity of its democracy and the strength of civic society, contrasting it to the image of a country in conflict. The publication is a compilation of twenty some articles from a group of authors, gathered together by the university professor, former minister, and former Colombian Ambassador, Fernando Cepeda. The book was published by Editorial Planeta in its Ariel Ciencia Política (Ariel Science and Politics) collection and was launched in Paris, France.

SOCIAL INVESTMENT

• INTERNATIONAL AID: The European Commission has financed support projects, for the last three years, in Colombia for the displaced population in the amount of more than $43 billion. Currently, of that figure, six projects are being executed at a cost of $27 billion. The Commission is holding a bid process open until January 11th, with a budget of $28 billion, in which projects that benefit the displaced population, presented by national and international NGOs, local and regional authorities, and public institutions can participate.

MORE COLOMBIANS WITH SUBSIDIZED HEALTH: by the end of 2004, the country will have close to 15 million Colombians who have received benefits from subsidized health. This year, adding together total and partial subsidies, close to three million people have benefited. To provide these benefits, the health system will invest annually, for total subsidies, resources in the amount of $309 billion, while for partial aid it will invest an additional $125 billion, co-financed by the government and the local administrations. This figure represents an increase of 42% compared to the figure at the end of 2002.

SUSTAINABLE ECONOMIC GROWTH AND GENERATION OF EMPLOYMENT

SUPPORT TO MICRO BUSINESSES: the national government has paid out, during the first two years of the administration, a total of $2,818,686,000 pesos in credits to Colombian micro businesses. As of July 31, and updated as of September 4, 2004, the resources have been disbursed through credit lines at Bancoldex, the agreement signed between the Ministry of Commerce and the banks, Finagro, and foundations. Between August and December of 2002, $376,327 million pesos were disbursed. In 2003 the figure was $1.29 trillion. During the first 7 months of this current year $1.14 trillion pesos were given in loans. These micro credit resources have benefited a total of 1.31 million Colombians.

INFLATION DOWN IN OCTOBER: inflation went down by 0.01% in October, with respect to the same month last year. The Consumer Price Index Report (IPC for its initials in Spanish) for this month indicates that the variation of –0.01% is 0.07 points lower with respect to the same period in 2003, when it was 0.06%. This variation is the second lowest since 1977, when it was -0,24%, and the lowest in the last ten years. Similarly, inflation for the year to date, as of October, is 4.8%, or 0.59% less with respect to the figure for January to October of 2003, when it was 5.48%. Meanwhile, in the last 12 months inflation reached 5.90%, or –0.68 percentage points compared to the figure from a year before, when it was 6.5%.

OPTIMUM BEHAVIOR OF FOREIGN COMMERCE: Colombian exports grew by 37.4% in August, relative to the same month of 2003, going from US$1,087 million to US$1,494 million. This good performance in the first eight months is due to the increase of 22.9% in the export of non-traditional products such as vehicles, raw materials, clothing, and sugar and candies, among others. On their part, traditional exports (coffee, oil, coal, ferronickel) increased by 16.6%.

LOW RATE OF UNEMPLOYMENT ON THE NATIONAL LEVEL: in the third quarter of this year the unemployment rate on the national level went down from 14.3% to 12.8%. During July, August, and September, 323 thousand people less were unemployed, after a decrease in the number of people unemployed was from 2.9 to 2.6 million people. As far as the rate of underemployment, it decreased from 33.4% to 31.5%, which means that there are 500 thousand people less who are underemployed. In the thirteen main cities of Colombia and their metropolitan areas, unemployment fell from 17 to 15%. This means that between July and September of this year, 1,415,000 people did not have work, while in the same time period in 2003, when the rate was at 17%, there were 1,615,000 people without work.

DEMOCRATIC SECURITY

ACCIDENT RATE DOWN: in the first eight months of 2004, in comparison with the same period in 2002, the number of traffic accidents went down by 21%. While from January to August 2002 there were 4,052 accidents, in the same lapse in 2004, that figure decreased to 3,220. Comparing the first eight months of 2004 to the first eight months of 2003, the decrease is 15.8%, going from 3,826 to 3,220 accidents.

RECORD FIGURE FOR DEMOBILIZED COMBATANTS: the Program for Humanitarian Attention to Demobilized Combatants (PAHD for the initials in Spanish), revealed that during October 2004, 365 members of the illegal armed groups laid down their weapons. The self defense illegal armed groups were the source of the greatest number of demobilizations during this month, with 273. This was the month with the greatest number of demobilizations in the course of the current administration.

STRENGTHENING THE FIGHT AGAINST MONEY LAUNDERING: in order to intensify the struggle against money laundering and to avoid the strengthening of the terrorist and criminal organizations, the government reinforced the official commission in charge of this labor. By means of Decree 3420 the Ministry of the Interior and Justice and the President modified the composition of the Inter-Institutional Coordination Committee for the Control of Money Laundering (CCICLA for its initials in Spanish) created in 1995, and created four operative committees of a strictly technical character: the Committee for Anti-money Laundering Culture, the Committee for Prevention and Detection, the Research and Judging Committee, and the Committee for the Implementation of the Centralized System for Information Consultations.

STATE EFFICIENCY AND TRANSPARENCY

REGULATORY FRAMEWORK FOR HOMEOPATHIC MEDICINE: by means of Decree 3554 of 2004, the national government established a complete set of regulations for homeopathic medicine. The laws have to do with health department registration, manufacturing, production, bottling, packing, quality control, importations, exportations, marketing, use, distribution, good manufacturing practices, surveillance, and health department control of homeopathic medicines for human use. The law establishes that the laboratories that manufacture homeopathic medicines must present a plan to INVIMA for gradual compliance with the implementation of “good manufacturing practices”.

GOAL SURPASSED FOR TAX COLLECTION: tax collections increased by 17.4% during the first ten months of 2004 relative to the same period in 2003. The tax monies collected reached $29.4 trillion, while from January to September of 2003, $25.1 trillion pesos were collected. The amount of taxes for this year to date is greater than the goal set by the government. In effect, the goal was to collect $28.4 trillion and $29.4 trillion pesos have been collected, that is to say one billion pesos more (an additional 3.6%). In what is called internal taxes, collection increased by 24.2% compared to the first 10 months of 2003.

FISCAL DEFICIT AT ZERO: at the close of the first semester of this year, the consolidated fiscal debt in the public sector reached zero percent. Thus, the goal for debt in the six first months of 2004 was greatly surpassed, by more than $700 billion. On its part, the national government indicated that it will meet the goal for a deficit of 2.5% for the entire year 2004.

(FIN/PCO/CIE)
November 5, 2004

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