Democracy and Governance in Colombia
The Development Challenge: Since taking office in August 2002, President Alvaro Uribe Velez has worked relentlessly to establish state control throughout the country, revitalize the Colombian economy and combat corruption. Although the Colombian economy grew at roughly 3.5% per quarter during 2003, this trend slowed slightly during 2004. The fiscal deficit has fallen from 3.7% of gross domestic product (GDP) in 2002 to a projected 2.5% of GDP in 2004; while private investment rose by approximately 20% in 2003. Largely as a result of improved investor confidence and the resulting spike in private investment and exports, GDP increased by 4.2% in 2003 and is projected to expand by an additional 3.5% in 2004. Unemployment fell to about 10% in late 2004; the lowest rate in the last three years.
In 2004, Colombia maintained its ranking in Transparency International's corruption index which reflects significant improvements since 2000. Between 2003 and 2004, the country's human rights record improved significantly as the national homicide rate fell by 12%, trade unionist murders were reduced by 37%, and kidnappings fell by 42%. Moreover, for the period from January 2004 through September 2004, the Human Rights Observatory reported an 80% reduction in the number of attacks on populations and a 41% decrease in the forced displacement of Colombian families. Furthermore, according to United Nations figures, the combined tactics of eradication, interdiction and alternative development resulted in a decrease in coca cultivation from 163,290 hectares of coca in 2000 to 86,340 hectares in 2003 -- a 47% reduction. USAID will provide technical assistance in support of the Government of Columbia's program to demobilization 20,000 paramilitary combatants by the end of FY 2005.
Despite these significant accomplishments, Colombia continues to face several challenges. Numerous rural municipalities are 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 lives below the poverty line. The poverty rate for rural dwellers in Colombia is estimated at 80%, of which 42% is considered extreme. Also, only 62% of rural dwellers have access to potable water and 32% to sewage treatment services. These conditions are exacerbated in rural areas by a 15% illiteracy rate. Improvement in Colombia's social sectors is especially challenging considering that the Uribe Government has tightened fiscal spending. Finally, while Colombia's illegal armed groups have been weakened, their presence and ability to exert violence against the state and civilians continues.
(Excerpted from the 2006 Congressional Budget Justification for Colombia)
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