Corruption in Colombia
Prof. William Troy
Table of Contents
IntroductionInflation and Stability of Colombian PesoBackground of EconomyGovernment ImageGovernment InfrastructureConflicts Between Political PartiesSigns of ImprovementPolitical HistoryCorruption in ElectionsDrug TradeForeign InvestmentIndustries for InvestmentMajor InvestorsCorruption and InvestmentConclusion
From the collapse of Gran Colombia in 1830, Colombia was one of the three countries that emerged. There has been a four-decade long conflict between government forces and anti-government groups, such as the Revolutionary Armed Forces of Columbia (FARC) who are funded by the drug trade, has escalated over the years. Since about 2002 the violence has decreased a slit amount because of the lack of the military and popular support necessary to overthrow the government. However these groups of insurgents have continued to attack civilians. Large areas around Columbia are under the revolutionary influence. By the end of 2006, more than 31,000 former governments’ officials had ceased to function as long as the formal organization the United Self Defense Forces of Colombia (AUC). When this occurred criminal groups arose and members included former government officials. The Colombia Government has made efforts to advance government control throughout the country. In order to understand how corruption is affecting Colombia, we must first examine concrete economical statistics. The Colombian Peso exchange rate depreciated 6.64 percent against the US Dollar during the last 12 months. The Colombian Peso spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the COP. While the Colombian Peso spot exchange rate is quoted and exchanged in the same day, the Colombian Peso forward rate is quoted today but for delivery and payment on a specific future date. Colombian pesos (COP) per US dollar:
According to the CIA World Factbook, Colombia is ranked 59th in exports and 54th in imports. In May of 2011 Colombia exports were worth 4704 Million USD and imports were worth 4931 Million USD. Their major exports are petroleum, coffee, coal, nickel, gold and, nontraditional exports. Their major imports are industrial and transportation equipment, consumer goods, chemicals, paper products, fuels, and electricity.
The total population in Colombia was last reported at 45.9 million people in 2010 from 16.0 million in 1960, changing 187 percent during the last 50 years. Colombia has 0.67 percent of the world´s total population which means that one person in every 150 people on the planet is a resident of Colombia. The unemployment rate in Columbia from 2000 until 2010 averaged at 14.67 percent. The highest percentage was in January of 2001 when it was 20.99 percent. The lowest percentage was in November of 2007 when it was 8.91 percent. Labor force is the number of people employed plus the number unemployed but seeking work. The non-labor force is those who are not looking for work, those who are institutionalized, and those serving in the military. According to the World Bank, the Colombia Gross Domestic Product is worth 288 billion dollars or 0.46% of the world economy. Colombia's average GDP was 60.55 billion dollars and reached the highest dollars in December of 2010. Colombia is a free market economy with major commercial and investment ties to The United States. Transition from a highly regulated economy has been underway for more than 15 years. Colombia's average annual economic growth rate was of over 5% from 2002 to 2007. The inflation rate in Colombia was last reported at 3.3 percent in August of 2011. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most...
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