PAGINA PRINCIPAL

COLOMBIA, A POSITIVE COUNTRY

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

ON THE FRONT PAGE

TRADE FORUM IN MIAMI SURPASSED US$110 MILLION: The second annual meeting of this trade conference with the United States, called Proexport Colombia, was a complete success and surpassed all expectations. At the close of the event, Colombian businessmen reported deals for more than 110 million dollars, a figure much higher than the 56.3 million dollars recorded for the first event, held last year. As Luis Guillermo Plata, President of Proexport, explained, it is foreseen that these deals will be closed within a year, according to the agreements made. “What is important, however, is not this figure, but the fact that we were able to arrange meetings between Colombian businesses and buyers from the United States, Canada, and Puerto Rico, with an average of 18 appointments each one, for a total of 5,143 business meetings”, said Plata.

COLOMBIA CERTIFIED: the government of the United Sates certified before the Congress of that country that the Administration of President Álvaro Uribe and the Armed Forces of Colombia are complying with legal criteria relative to the protection of human rights, a requirement imposed by US law in order to release military aid. The process is verified in two stages. In each one, 12.5% of the aid is released. For fiscal year 2004, approximately US$195 million is already committed (a figure that is equal to 75% of the US aid for this period). This certification allowed for the US$32.5 million corresponding to 12.5% of the total aid, to be committed to Colombia. A second evaluation is required to commit the remaining 12.5%.

SOCIAL INVESTMENT

INVESTMENT IN HOUSING: close to 8 thousand Colombian families have become new home owners by means of housing loans provided by the National Savings Fund (FNA) to its members. These credits have been set aside for acquiring new or used housing, to pay off a mortgage, or to build on a lot owned by the member, or his or her spouse. The social investment made by the Fund in 2004 reached $293 billion pesos, distributed as follows: $255 billion corresponding to housing loans from the FNA, and $38 billion to the savings of prepaid severance payments of the beneficiary members.

OVERCOMING HUNGER AND POVERTY: with the Declaración de Bogotá (Bogotá Declaration), 16 countries in Latin America and the Caribbean supported the efforts made by the Colombian government, and recognized the importance of cooperation between developing countries to eradicate hunger and poverty. This declaration, signed within the framework of the “Regional Seminar on the Development of Capacities oriented toward South-South Cooperation”, consists of eleven points, among which the need was emphasized for the countries with medium earnings, such as Colombia, to continue accessing the resources available from Official Development Aid, and to expedite technical transfers.

ISS MEETS GOAL FOR AFFILIATIONS: the EPS for the Institute of Social Security had compensated, at the close of July 2004, a total of 2,620,624 affiliates. This means that out of an estimated 3,133,074 active affiliates, it obtained a compensation level of 83.64%, surpassing the goal of 83% proposed for the entire year. To fulfill this goal, the Social Security administration has put in motion diverse projects, oriented toward cleaning up and updating the affiliation database, improving the application time for the magnetic media of large-scale employers, and negotiating with multi affiliated users.

SUSTAINABLE ECONOMIC GROWTH AND GENERATION OF EMPLOYMENT

THE ECONOMY GREW 4.47% IN THE SECOND QUARTER: the economy has continued along a growth path, and in the second quarter of the year a growth of 4.47 percent was recorded with respect to the same period in 2003. According to the National Administrative Department of Statistics (DANE) this was the increase in the Gross Domestic Product (GDP) of the country between April and June of 2004, without illicit crops. The figure drops to 4.32% when illicit crops are taken into account, which also reflects the decisive war on drugs engaged in by the national government. Upon analyzing this growth from the demand side, the increase is noteworthy in gross capital formation (18.08%), in exports (9.01%) and in end consumption (3.33%). According to the DANE, the growth of the economy in the second quarter was led by almost all the sectors of the country’s economy, but especially by construction and the manufacturing sector, which recorded significant increases of 9.26% and 6.25%, respectively.

JUAN VALDEZ, EXPORTATION QUALITY: the National Federation of Colombian Coffee Growers inaugurated the second Juan Valdez coffee shop in the United States, located right in downtown Manhattan in New York. At the store, visitors can enjoy organic coffee and special coffees, additional attractions besides the aroma of the traditional suave coffee of Colombia. This shop is the second in the United States after the one that was opened last September 13th in Washington. The government’s goal is to locate at least 300 stores in the main capitals of the world over the next three years.

RESOURCES FOR A TUNNEL FOR THE LINE: The Andes Corporation for Promotion (CAF) approved a credit of 32 million dollars to finance the construction of a pilot tunnel for the project to communicate the port of Buenaventura with Bogotá, reported the organization headquartered in Caracas. This project, called Tunnel for the Line, will have a total cost estimated at 279 million dollars. The Chief Executive Officer of CAF, the Bolivian Enrique García, emphasized the “integrating” character of the project, because it will facilitate exchanges between the central Colombian zone, particularly Bogotá, the eastern zone, and the western part of Venezuela, with the vast market in the Pacific.

DEMOCRATIC SECURITY

STRUGGLE AGAINST THE SELF DEFENSE GROUPS: during the administration of President Álvaro Uribe, the number of members of the illegal self defense groups captured increased by 279.7%, going from 1,864 captured between July 2000 and July 2002, to 7,078 between August 2002 and August 2004. In the same way, the number of self defense casualties increased by 209.8%, going from 266 to 824, in the same time period. To this is added the fact that there are now 1,355 members of these groups who have individually joined the demobilization and reinsertion process. Another 1, 042 members have handed themselves in as groups.

GOVERNMENT COMES THROUGH FOR DEMOBILIZED MILITIA: as of last week the national government has paid more than $1,900 million in benefits to 161 demobilized militia members, who, when they laid down their weapons, gave key information to the authorities. Over the last twelve months, the Executive branch has paid out close to $3,500 million to 500 people who have reincorporated into civilian life. In the Uribe government, 6,376 members of terrorist groups have given up their weapons.

STATE EFFICIENCY AND TRANSPARENCY

FOR PUBLIC HOUSING: the national government, by means of Decree 3111 of 2004, established that national public institutions of a non-financial nature, who have urban lots that would be appropriate for public housing, must transfer them to Fonvivienda so that the institution can hand them over as a subsidiary in kind, giving priority to the most vulnerable Colombian households. The measure allows the institution to broaden the coverage of beneficiaries of the VIS (Public Housing) policy, to efficiently take advantage of certain unproductive assets of the Nation, and to contribute in a significant way to meeting the goal of generating 400 thousand housing solutions for public housing during the four-year term.

MEASURES AGAINST CONTRABAND: between January and September of this year, the value of confiscated contraband merchandise increased by 28.5% over the same period in 2003. The Tax and Customs Department (DIAN) reported that the value of the captures went from $89 billion to $114.5 billion and that the number of operations giving rise to captures of merchandise grew by 44%, going from 9,480 to 13,629 between January and September of 2004, in comparison to the same time period last year. According to the DIAN, so far in 2004, 9.1 control actions and 2.3 captures have taken place every hour.


(FIN/PCO/CIE)
October 1, 2004

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