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| >> Regional Overview >> Colombia Overview | ||||||||||||||||||||||||||||||||||||
THE DEVELOPMENT CHALLENGE: Democracy is under attack in Colombia. The democratically elected government does not control large portions of its own territory and is challenged by leftist guerilla groups and right-wing paramilitary forces that compete for territory and control of the drug trade. The United States seeks to strengthen Colombia's fragile democracy, stem the production and flow of illicit drugs from Colombia and assist with social dislocations caused by internal conflict. Colombia is the fourth largest economy in South America and the United States' fifth largest export market in Latin America with over $9 billion annually of bilateral trade. It faces grave income disparities, growing poverty, and declining foreign direct investment. With export earnings from oil and coffee in decline, Colombia must still meet fiscal targets negotiated with the International Monetary Fund and allocate funds for additional social investment. Foreign debt, at approximately $35 billion in 2000, is 44% of its Gross Domestic Product. The country is pivotal to stability of the Andean region, but is severely constrained by a deteriorating economy and serious internal security problems as it approaches upcoming presidential elections in May. A longstanding culture of impunity from prosecution has not only engendered a lack of confidence in the rule of law, but has also focused international attention on Colombia's poor human rights record, which is marred by politically motivated murders, disappearances, and other egregious human rights violations. Government presence is nonexistent in many rural areas and is often limited to uniformed security services elsewhere. Access to justice-sector services, although increasing, is still limited. Local governments, either municipal or departmental, have little capacity to manage the national revenue that is by law shared with them. Corruption and lack of accountability are serious disincentives to more effective local government.
Current estimates indicate that 163,290 hectares of coca cultivation fueled the production and export of cocaine, while 6,200 hectares of opium poppy sustained heroin exports, primarily to the U.S. eastern seaboard. The Colombian government (GOC) attacks this illicit industry by fumigation of coca areas and by providing alternative income opportunities for farmers who cultivate drug crops out of poverty. USAID's alternative development program aims to achieve sustainable voluntary elimination of opium poppy and coca on 33,000 hectares of small farmer land. Program activities in southern Colombia were slowed during the past year due to lack of security, GOC institutional weaknesses, and GOC reluctance to mount sustained coca spraying and interdiction programs. Over one million Colombians have been internally displaced by the protracted conflict between armed groups. These families, many of which are headed by single mothers, flee to squalid urban slums where some receive limited and short-term Government support. Their existence is precarious as they live in competition with the poor for limited economic relief services and are resented by other residents who believe their presence lessens availability of GOC services such as health care, education, and social integration services. THE USAID PROGRAM:
USAID's program objectives in Colombia address three principal areas of U.S. policy: 1) strengthening democracy; 2) sustainable reduction of drug crop production through alternative development; and 3) assistance to internally displaced persons. While the program must be closely monitored and periodically adjusted to reflect changing security and political conditions, it retains the same general characteristics that were planned and described in the FY 2002 Congressional Budget Justification. In democracy, USAID will continue to support the transition of Colombia's judicial system from an inquisitorial to an accusatorial system of justice and increase access to justice for thousands of low income and marginalized Colombians through national coverage of the "Justice Houses" program. USAID will strengthen GOC capabilities to respond to human rights violations through creation of an Early Warning System to thwart massacres, establishment of a protection program for threatened individuals, improvement of case monitoring systems and strengthened coordination procedures with civil society. USAID will also enhance local government management capacity and increase citizen participation to improve municipal government transparency, and will support GOC anti-corruption efforts to increase and improve financial and management controls and proper use of audits. The alternative development program is being revised to incorporate adjustments needed to adapt the program to the difficult circumstances currently found in Putumayo and Caqueta. USAID will expand the alternative development program's geographic focus beyond southern Colombia to include the western half of the country and will increase the number of USAID partners. Future assistance will focus on more cohesive communities, which are less likely to replant coca. USAID promotes social and economic incentives that cause small farmers to voluntarily eliminate their drug crops and develop sustainable licit income generating alternatives. In more remote coca-producing areas, licit production may include agro-forestry and tree cropping, as well as programs tailored to indigenous populations. Social and productive infrastructure, including schools, health clinics, potable water, sewerage, electricity, roads, and bridges, among others, will generate employment and income, and provide infrastructure needed to support licit productive activities. USAID will help integrate internally displaced persons into the society and economy where they live, until it becomes feasible for them to return to their places of origin. This assistance includes community development projects, health, education, shelter, employment, income generation and vocational education. USAID collaborates with local leaders to promote participation of the displaced in their new community and to gain access to social services. ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED: The USAID program in Colombia includes the following objectives for which USAID does not require additional funds:
OTHER PROGRAM ELEMENTS: Under the bilateral program, USAID also assists the GOC with management of a $45 million environmental fund created under the Enterprise for the Americas Initiative. In addition to the bilateral program, USAID is carrying out activities in Colombia through centrally and regionally managed programs in democracy (anti-corruption, civil society strengthening, decentralization, and local governance), environment, health, education, and microenterprise development. OTHER DONORS: The Inter-American Development Bank, World Bank, and Andean Development Corporation have committed over $4 billion for social development projects, including employment creation and training. The European Union has pledged $95 million for socio-economic development and humanitarian assistance. United Nations agencies provide approximately $30 million in social and economic development support. Bilateral donors, led by Spain and Japan, have pledged approximately $463 million through a combination of grants and loans for humanitarian relief and economic development. Program Data Sheets
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