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Colombia

The Development Challenge: Since President Alvaro Uribe Velez took office in August 2002, he has worked relentlessly to establish state control throughout the country, revitalize the Colombian economy, and combat corruption. Throughout 2003, the Colombian economy has grown at roughly 3% per quarter. Colombia's ranking in the Transparency International Corruption index improved 17% between 2000 and 2003, the highest improvement among the more than 40 medium and low-income countries surveyed. Similarly, the country's human rights record improved significantly as the national homicide rate fell by 22%, trade unionist killings were reduced by 68%, and kidnappings fell by 27%. Moreover, the National Planning Department reported a 60% reduction in the number of attacks on vulnerable civilian populations and a 46% decrease in the forced displacement of Colombian families. With critical support from the United States, the Colombian military is hitting the country's illegal armed groups harder, demonstrated by an 85% increase in desertions. Furthermore, the combined tactics of eradication, interdiction, and alternative development resulted in a coca crop reduction of 37.5% between 2000 and 2002 and an additional 43% between 2002 and 2003, exceeding Plan Colombia goals.

Please note: All documents are in pdf format 514-007: Democracy 514-008: Alternative Development 514-009: Internally Displaced Persons 538-008: HIV/AIDS Program Summary Tables Complete USAID/Colombia Program

Despite these significant accomplishments, Colombia continues to face several challenges. Numerous rural municipalities remain isolated by poor infrastructure and fragile institutions and, thus, remain prone to violence, illicit crop cultivation, forced displacement, and human rights abuses. Colombia faces severe income disparities, poverty, and inadequate social services. The World Bank estimates that 65% of the population live below the poverty line and rural poverty is especially acute. The poverty rate for rural dwellers in Colombia is estimated at 80%, of which 42% is considered extreme. Also, only 15% of rural dwellers have access to telephone services, 62% to potable water, and 32% to sewage treatment services. These conditions are exacerbated in rural areas by a 15% illiteracy rate. World Bank studies show that Colombia will require sustained economic growth of 4% through 2010 to reduce poverty to the levels recorded in 1995. This is especially challenging considering that the Uribe Government has tightened fiscal spending and that foreign direct investment in 2002 fell to just under $2 billion -- a decline of about one-half relative to the mid-1990s. Finally, lack of state presence in large portions of the country has allowed both illegal narcotics production and armed, drug-dealing terrorist organizations to continue to flourish. While Colombia's illegal armed groups have been weakened, their presence and ability to inflict violence against the state and civilians continues.

The USAID Program: Since USAID initiated support for Plan Colombia in 2000, significant advances have been made in expanding state presence, strengthening Colombian democracy, creating licit economic opportunities, and providing assistance to the internally displaced. However, given the magnitude and complexity of the challenges facing Colombia, much remains to be done. Coca and poppy cultivation has sprouted in new regions; democratic institutions, especially in rural areas, remain fragile; and thousands of rural Colombians continue to abandon their homes to escape guerilla and paramilitary violence. In confronting these realities, USAID's strategy in Colombia directly supports President Uribe's Democratic Security Policy which seeks to consolidate the rule of law and defend and strengthen democratic institutions throughout the country.

The USAID program has three objectives: stemming the flow of illegal drugs into the United States by encouraging small producers to join the legal economy through licit economic activities and infrastructure projects; promoting more responsive, participatory and accountable democracy; and relieving the plight of Colombian refugees.

Other Program Elements: USAID assists the Government of Colombia in the management of a $45 million environment fund created under the Enterprise for the Americas Initiative, which forgives foreign debt in exchange for environmental and child protection initiatives. In addition, activities in trade capacity building and malaria control are implemented in Colombia under USAID's South America Regional program. USAID is also carrying out activities in Colombia through the Latin America and the Caribbean Bureau and the Democracy, Conflict Prevention, and Humanitarian Assistance Bureau. Programs include democracy, environment, and health.

Other Donors: Multilateral assistance to Colombia from the World Bank, Inter-American Development Bank, the European Union, United Nations agencies, the Andean Development Corporation and others totaled $49.9 million in 2002. Other bilateral development assistance to Colombia reached roughly $65 million in 2002 with Germany, Spain, and the Netherlands the most significant contributors.

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