APC-Colombia General Director Sergio Londoño Zurek Author Emilio Moino Vera Collaborators Manuel Trujillo Saad Daniela Castaño Vásquez Front cover desing Daniel Castrillón Alfonso Edition Lingua Viva Design Juan Pablo Duarte Presidential Agency for International Cooperation (APC-Colombia) Carrera 10 No. 97A - 13. Torre A - Piso 6, Bogotá, Colombia Phone Number: (57-1) 601 24 24 United Nations Office for South-South Cooperation (UNOSSC) 304 East 45th Street, 12th Floor, New York, NY 10017, USA Phone Number: (1-212) 906 6944 Copyright © APC-Colombia and UNOSSC 2018. The views expressed in this publication do not necessarily reflect those of the United Nations, the United Nations Development Programme or governments. The designations employed do not imply the expression of any opinion whatsoever concerning the legal status of any country, territory or area, or its frontiers or boundaries.
ISBN 978-0-9859081-6-4
Acknowledgements The Presidential Agency for International Cooperation (APC-Colombia) and United Nations Office for South-South Cooperation (UNOSSC) would like to thank the following institution of the Government of Colombia for their support and collaboration by sharing all the information needed to write this publication and without which the 120 innovations that make up Colombia has Change would not be possible to compile: Adaptation Fund Colombia Military Forces Colombian Science and Technology Observatory Commission for Early Childhood Financial Institution for National Development Financial Institution for Territorial Development Foreign Trade Bank of Colombia Guarantees of Financial Institutions Fund Intersectorial Child care Commission Ministry of Commerce, Industry and Tourism Ministry of Education Ministry of Environment and Sustainable Development Ministry of Finance and Public Credit Ministry of Foreign Affairs Ministry of Housing, City and Territory Ministry of Information and Communication Technologies Ministry of Transportation National Infrastructure Agency National Land Agency National Planning Department Presidency of the Republic Administrative Department ProColombia Reincorporation and Normalization Agency Risk and Disaster Management National Unit Rural Development Agency Science, Technology and Innovation Administrative Department Social Prosperity National Department Statistics National Administrative Department Territory Renovation Agency Unit for Land Restitution Unit for the Victims
PROLOGUE The work of the Colombian Presidential Agency of International Cooperation (APCColombia) has been very important in leaving the country and our global partners a document that conveys the deep transformations that Colombia has experienced over recent years. When this administration began in August 2010, we set ourselves a goal to modernize the country and put an end to the last and longest armed conflict in the Western Hemisphere. Today, eight years later, we can say that we live in a nation that is setting out on its journey of peacebuilding and one that has worked hard to modernize its institutions and infrastructure; a country in which millions of our citizens have escaped extreme poverty ,and in which social welfare and environmental sustainability go hand in hand. With the Minister of Foreign Affairs, María Ángela Holguín, we set out to improve our diplomatic relations, as mandated by the Political Constitution of 1991, and we took on a more active role in the international scene. Our achievements in cooperation are proof of this, as we have gone from offering South-South cooperation to 17 countries in 2010 to more than 90 countries in 2017. The purpose of this book, written jointly with the United Nations Office for SouthSouth Cooperation (UNOSSC), is to offer our global partners tools and examples of good practices that might be useful for the design of their policies for sustainable economic and social development. As our term in office comes to an end, we are certain that we are handing over a country that is making progress by leaps and bounds to the benefit of its population; a country that became the world’s good news story by putting an end to over 52 years of violence between the sons and daughters of a single nation.
Juan Manuel Santos Calderón President of the Republic of Colombia 2010—2018
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Over the past eight years, Colombia has traveled a path of profound transformation. In the two governments of President Santos, the nation consolidated its progress towards development and social welfare. The national development plans implemented in the two presidential terms, Prosperity for All (2010-2014) and Everyone for a New Country: Peace, Equality, and Education (2014-2018), outlined the objectives that the country had to meet in order to overcome historically accumulated social debts. Over these years, a unique platform was structured that prepared the country to reach the end of the conflict with the Revolutionary Armed Forces of Colombia (FARC) and paved the way to build sustainable and lasting peace all over the country. However, this process of change was not achieved through far-reaching and effective public policies alone. It was thanks, also, to the drive of institutions with greater technical capacity, the exemplary leadership headed by President Juan Manuel Santos, and a nation committed to change that Colombia, today, is a country of great accomplishments and successes.
5
million Colombians have escaped poverty Colombia is currently classified as an uppermiddle income country, in which over five million Colombians have escaped poverty and are now part of a robust middle class.
Strengthening the state and democracy The country also enjoys near-universal health care coverage, and the government has made great strides in extending coverage to every level of education, and to achieve steady progress in strengthening the state and democracy.
Best credit rating in history International organizations highlight the soundness of Colombia’s macroeconomic indicators. Our fiscal and monetary policies are exemplary in Latin America. Never before has Colombia attracted so much foreign investment or enjoyed such a favorable risk rating.
Peace Agreement Finally, on the premise that peace is a necessary condition for a society's progress and happiness, Colombia put an end to a fifty-year-long armed conflict, which left more than eight million victims.
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International relations and cooperation have been fundamental to achieving these positive results. The national government implemented a radical change in its style of diplomacy in 2010, leading to improved relations with neighboring countries and the rest of the region. This has been essential both to the success of the peace negotiations with FARC, and to the country's modernization, increasing technical capacity, and positioning Colombia in the international agenda. One of the victories of this strategy is that today Colombia is a full member of the Organization for Economic Cooperation and Development (OECD) and the first Latin American global partner of the North Atlantic Treaty Organization (NATO).
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We must understand that beyond divisions and beyond borders, the name of our nation is the World. Juan Manuel Santos.
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Today, Colombia seeks to continue to consolidate its regional leadership and to promote international cooperation as a fundamental mechanism for sustainable peace and the development of the world’s countries. Colombia has shown that peace is possible, that old enemies can talk and work together for a higher cause. It has shown that, beyond differences of race, religion, and thought, human beings are equal.
In Colombia, internaiconal cooperation played a decisive role in the technical advancement and improvement of the capacities of the Colombian State. This process has brought excellent results in improving citizens' quality of life, and it has also produced a large body of knowledge and experience in the design and implementation of policies, programs, and projects that may prove to be useful in countries whose contexts are similar to Colombia’s. Thus, the Colombian Presidential Agency of International Cooperation (APC-Colombia) and the United Nations Office for South-South Cooperation (UNOSSC) worked together to produce this publication, which aims to promote the transfer of technical knowledge and good practices that Colombia has developed over the past decade. This publication is a portfolio in which 120 innovations and good practices are consolidated and made available to the nations of the world. They range across fields including education, early childhood, science and technology, infrastructure, information and communication technology, environmental protection, peace and post-conflict, economics, commerce and tourism, social welfare and poverty reduction, and international cooperation for development. These are the tools that transformed Colombia, turning it into a modern country, squarely aimed at a model of sustainable economic development with a solid and influential position in regional and international affairs.
1 The National Development Plan is the document that provides the basis and strategic guidelines for public policies
formulated by the President of the Republic of Colombia through his government. This document stipulates the vision, objectives, goals, and policies that all public institutions must implement during the four years of the presidential term. Its preparation, distribution, evaluation, and monitoring are the direct responsibility of the National Planning Department.
Technical education. Image: SENA
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TABL CONT
1
2
15
INFRASTRUCTURE, SOCIAL HOUSING, AND ICT
97
A. Primary Education
27
A. Infrastructure
101
B. Higher Education
54
B. Social Housing Public Policy
121
C. Comprehensive Early Childhood Care
73
C. Information and Communication Technologies (ICT)
127
EDUCATION, EARLY CHILDHOOD AND SCIENCE, TECHNOLOGY AND INNOVATION
D. Science, Technology, 80 Innovation and Research
LE OF TENTS 3
4
ENVIRONMENTAL PROTECTION AND SUSTAINABILITY
143
PEACE AGREEMENT AND PERIOD OF POST-CONFLICT
181
A. Information and Communication Technologies (ICT)
148
A. Innovation in the negotiation and in the peace agreement with the FARC
186
B. Environmental protection
158
196
C. Vision to the future
169
D. Colombia as a leader
172
B. Innovation in the Peace Agreement between the Colombian Government and FARC C. Regulatory and Institutional Changes
206
in the international agenda E. Colombia aimed at the Bioeconomy Colombia BIO
175
TABL CONT
5
6
ECONOMY, TOURISM AND TRADE
243
SOCIAL WELFARE AND POVERTY REDUCTION
297
A.Fiscal discipline and macroeconomic stability in Colombia
247
A. Creating the Social Inclusion and Reconciliation Sector
302
B. Regulation and financial inclusion
257
B. National Planning Department (DNP)
325
C. Financial Institution for Territorial Development
331
D. Policy for reducing employment and business informality
334
C. Business development 272 and promotion D. Trade openness E. Promotion for the tourism sector
278 291
LE OF TENTS 7
INTERNATIONAL COOPERATION FOR DEVELOPMENT
343
A. Creation of APC-Colombia
346
B. Implementation of international cooperation funds
352
C. Public-private cooperation
361
D. Taking cooperation into the regions
366
E. Colombia’s accession to the OECD
369
1
Education, Early Childhood and Science, Technology and Innovation
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Image: Ministry of ICT
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Colombia, the most educated Protection for children and education for peace, equality and competitiveness
Citizens with a good education are citizens who are capable and competitive, who steer a nation toward development and allow a rapid rise in the quality of life and social wellbeing indicators. The improvement of indicators such as educational quality and coverage, as well as the decrease in dropout rates, is directly related to the increase in the capabilities of the human capital, which has a direct impact on economic growth and the improvement of social inequality indicators.
Colombia is currently facing a number of challenges as a result of the international juncture. These include international economic instability, climate change, globalization and the technological revolution. In addition, it is undergoing a process of internal structural changes, such as the modernization and increase in State capacity, economic openness, adaptation to climate change, the membership of the Organization for Economic Cooperation and Development (OECD) and the current postconflict scenario. This juncture makes this a critical moment in the history of the country and makes it necessary to bring about profound cultural changes in citizens that will legitimize all of these processes and make them sustainable in the long term.
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Where there is education, there is no distinction of classes. Confucius.
“
Based on the premise of transitioning to a more peaceful, more equitable and more educated country, a country that respects diversity, institutions and rules, and a country whose citizens will adapt to the challenges of globalization, the Colombian Government has established that one of the sectors that should be profoundly transformed is the education sector, which determines the competencies and skills of every citizen.
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Vision For the Colombian Government, it is essential for Colombian citizens to have the competencies that define them as an innovative, critical and flexible workers or entrepreneurs, who have a command of new technologies and more than one language. They should be able to cope with and manage the risks involved in being a part of a globalized economy and be aware of their surroundings through a humanitarian and environmental perspective. Finally, the strengthening of the Colombian State and peacebuilding requires participatory citizens, who have respect for the authorities and public resources, and are governed by a culture of
peace and democracy. This vision involves major challenges, not only for the education system, but for all the other areas that develop and transfer competencies, skills, habits, and values. 1 It is for this reason that the 2010-2014 Development Plan and, in particular, in the 2014-2018 Development Plan, the Colombian Government prioritized a revolution in the education sector, stipulating goals and objectives aimed at achieving this vision in the medium and long term.
Llanoverde public school, Cali. Image: Ministry of Education
1 National Planning Department (2014). National Development Plan 2014-2018. Bogota. p. 23.
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Villas de San Pablo public school, Barranquilla. Image: Ministry of Education
Goals and Objectives COLOMBIA, THE MOST EDUCATED Making Colombia the country with the best education indicators for preschool, primary, middle and high schools in Latin America by 2025 is the Colombian Government's central goal. To do so, it has reflected, in its four-year development plans, the importance of focusing technical and monetary capacities policy toward this sector, particularly during the second term of government (2014-2018), where it became a priority for the Colombian Government. 2
1 2
Two main objectives were embodied in these plans focused on achieving profound changes for the education system in Colombia; they served as the guiding principle for defining the sectorial public policy during the eight years of President Juan Manuel Santos’ administration. These objectives are as follows:
Modify the structure of the education system to point it at developing core competencies that enable the comprehensive development of citizens, from early childhood through higher education, so that all Colombians can obtain training that is adequate and in accordance with the needs of the productive sector. 3
Close the access and quality gaps in the education system, between individuals, population groups and regions, bringing the country to international standards and achieving equal opportunities for all citizens. 4
2 Ibid. 3 National Planning Department (2010). National Development Plan 2010-2014. Bogota. p. 107. 4 National Planning Department (2014). National Development Plan 2014-2018. Bogota. p. 85
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Bogota. Image: Ministry of Education
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Diagnosis Education in Colombia has undergone accelerated development over the last 25 years.
Regulatory framework Between 1991 and 2010, it succeeded in creating a regulatory framework.
Rate of 90% in education coverage
Colombia achieved an almost universal education coverage rate.
Increase the coverage of higher education Increase the coverage of higher education from 14% to 37%.
At the same time, the Colombian Institute for Education Assessment (ICFES) and the National Council for Accreditation were strengthened to promote the implementation of new mechanisms to followup on policies and programs and the increase the levels of quality.5 When President Santos’ administration started in 2010, the Colombian education system was facing major challenges in terms of skills development and closing gaps in order to build a more equitable society; it was suffering from weaknesses in teaching quality, lags in the design and use of standardized tests, low coverage of higher education and little coordination between the productive and education sectors. It was also experiencing a lack of State capacity to design, implement and follow up on the public policies related to the sector.
Advances in Education in Colombia and Challenges Faced in the 2010-2018 Period The Good of 1990-2010
Actions for 2010-2018
Almost universal coverage of primary and secondary education
Achieve high levels of coverage of quality higher education
Solid regulation
Improve the quality of primary and secondary education
Increase the coverage of higher education
Improve standardized tests and their results
Institutionalization of quality assessment processes
5 Ministry of Education (2016). Background and Progress of the Education System. Bogota. Presentation.
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Bogota. Image: Ministry of Education
Considering the advances since 1990 and the major challenges faced, it was determined that Colombia should initiate a new phase of development in the education sector that would focus on an increase in the quality standards and not just on coverage as had been prioritized between 1991 and 2010. To do so, it was necessary not only for all children, adolescents and young Colombians to have access to education, but also for them to have access to a quality education. In order to analyze the major changes in the industry, three basic pillars must be considered:
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1
The regulatory framework
2
The budget dynamic
3
The programs implemented
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1
Significant Regulatory Advances in the 2014-2018 Period
Decree No. 4807-2011: Free Education Free education for Colombians In 2010, the Colombian education system already had a solid structural regulatory framework where education was declared to be a basic right, university decentralization and autonomy was consolidated, the financial resources for operating expenses were secured and comprehensive early childhood development was established as a basic right. This allowed the construction of a well-structured education system, which took great strides in coverage from the 1990s to 2010. While advances shown before were already consolidated, a decree was needed to complete the entire structure and it was essential to ensure the basic right embodied
2
in Article 67 of the Constitution: ensure free education for all Colombians. Therefore, in 2011, through Decree No. 4807 for Free Education, the Colombian Government managed to regulate and ensure the free education of all students from preschool up to the last year of secondary education in the country’s State schools where, under no circumstances, should the parents or guardians of the child make any payments for their children to enjoy education services. Currently, eight million children are studying for free, when in the past, parents had to cover the cost of certain aspects for the education of their children in public institutions, such as part of the school supplies and materials used in class.6
Budget Dynamic
Education: A Priority in the National Budget since 2014 The Education Sector has come first in the Nation’s General Budget since 2014.
Considering the additional revenue received by the Colombian Government during President Santos’ first term (2010-2014), due to the high oil prices, along with efficient budget prioritization on his second term (2014-2018), the budget for the education sector progressively increased, as illustrated in the next graph:
6 Ministry of Education (2017). Decree No. 4807. Accessed on the Ministry of Education website on July 18, 2017: Website: https://bit.ly/2muktyG
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The Nation's General Budget by Sectors 40000 35000 30000 25000 20000 15000 10000 5000
2010
2011
2012
2013
2014
2015
2016
2017
Source: Ministry of Education
AGRICULTURE AND FARMING
TRANSPORT
SOCIAL HOUSING, HEALTH AND DEVELOPMENT
SOCIAL INCLUSION AND RECONCILIATION
COMMERCE, INDUSTRY AND TOURISM
HEALTHCARE AND SOCIAL PROTECTION
ENVIRONMENT AND SUSTAINABLE DEVELOPMENT SCIENCE AND TECHNOLOGY
DEFENSE, SECURITY AND POLICE EDUCATION
Since 2014, the education budget exceeded the budget for the defense sector, which had historically been the highest due the situation of national security Since 2014, the education budget exceeded the budget for the defense sector, which had historically been the highest due the situation of national security.7 Current estimates show that the rates of return on investments in education, in the medium and long term, are the highest of all sectors, surpassing the infrastructure sector,8 for which reason the progressive increase in the budget for education is supported.
7 Ministry of Finance and Public Credit (2017). Budget Appropriations by Sector. Accessed on the website of the General Directorate of the National Public Budget on July 18, 2017: http://bit.ly/2uFz3tr 8 Ministry of Education (2015). Colombia on the Way to Becoming the Most Educated by 2025. Bogota.
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3
Programs implemented in primary, secondary and higher education
Main objective QUALITY After 20 years of major regulatory changes and great strides in the primary education coverage rate, the Colombian Government determined that the next big challenge would be to increase the levels of quality throughout the system, in order for Colombia to be the most educated country in Latin America by 2025. This goal would be achieved by surpassing Chile's indicators on the Pisa test conducted by the OECD, which showed that in 2009, Colombia was nine places behind Chile in reading and math skills. 9
MarĂa Reina public school, Cartagena. Image: Ministry of Education
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25
MAIN GOAL Colombia must be the most educated country in Latin America by 2025.
Knowledge Gym.
Image: Ministry of Education 26
COLOMBIA HAS CHANGED
With this in mind, the government designed a strategy framed within four major components that served as the basis for designing and implementing the main government programs in the education sector during the 2014-2018 period:10
1 Benchmarks
Complement the guidelines and basic standards of competence with tools, such as basic learning rights and learning grids.
3
2 Materials
Development and distribution of high quality educational materials.
Training and support Design and implementation of a roadmap for training and pedagogical support intended for teachers, principals and quality teams of the quality secretariats whose focus is pedagogical reflection, the strengthening of pedagogical and academic management and articulation between the system's different stakeholders.
4
Assessment
Innovative mechanisms to assess all the stakeholders of the educational process.
ICFES (2009). Colombia in PISA 2009, summary of results. Accessed on the website of the Colombian Institute for Education Assess ment on July 11, 2017. Website: http://bit.ly/2uG9dFo 10 Ministry of Education (2017). Presentation of the Quality Directorate for Preschool, Primary and Secondary Education. Bogota.
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The following are the main tools and programs that were developed to cover the four components:
1
Benchmarks
Development of learning grids Innovation #1: High quality curricular benchmarks that respect territorial autonomy
A very important element in the efforts being made by Colombia to increase levels of school quality is the development of learning grids that serve as a reference or guide for educational institutions throughout the country. While it is important to remember that Colombia is a decentralized country and each educational institution is autonomous, the Colombian Government determined that in order to ensure the improvement of educational quality and
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promote the closure of gaps, it was necessary to develop learning grids that would serve as a reference, particularly for educational institutions with a history of below-average performance. To take on this task, in 2015, the Ministry of Education (MEN) in conjunction with Universidad de los Andes, Universidad de Antioquia and other research and higher education centers, began to develop learning grids with high methodological
Knowledge Gym. Image: Ministry of Education
standards, whose favorable characteristics will inspire their voluntary use in schools. At the same time, while Colombia remains the only country in Latin America that does not have a single curriculum, these learning grids are a contextualized response that respects school autonomy in the face of a global challenge. 11
• Ensure that all children have the same educational opportunities, regardless of their economic level or place of residence.
Main objectives of the learning grids 12
The development of curricular guidelines and standards for mathematics, language, and natural and social sciences is aimed at resolving the ambiguity that currently exists with respect to what students should learn, by unifying quality standards and promoting equality between the social classes and the country's regions.13
• Establish the minimal knowledge and skills that each child should learn at each grade level.
• Encourage better teaching, better instructional materials, more stimulating school environments and increased academic performance among students.
11 Ministry of Education (2017). Interview with the Quality Directorate for Preschool, Primary and Secondary Education. Bogota. 12 Quality Directorate for Preschool, Primary and Secondary Education (2001). Standards for the curriculum. Accessed on the Ministry
of Education website on October 13, 2017: https://bit.ly/2uwrZh3
13 Ibid.
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ACHIEVEMENTS The development of learning grids has been an example of multi-sectorial involvement, achieved thanks to the work of experts with extensive experience in education by area, in order to ensure the highest quality standards. Some of the outcomes are as follows:
In 2016 the proposed curricula went through a cycle of continuous adjustments thanks to the participation of 4,424 stakeholders after 54 roundtables held in several Colombian cities.
In 2017 the diagrammed curricula initiated pilot testing processes through the Todos a Aprender program and high schools of the National Army, with the participation of a total of 112 teachers. At the same time, in 2017, Universidad de Antioquia started a process for the discussion of educational curricula with 22 schools of education in the country to gather perceptions and recommendations.
In 2018 the Ministry of Education opened a space on its website for the participation of all users of the curricula in order to continue to strengthen the proposal in years to come.
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Share to the Teacher Award. Image: Ministry of Education
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Launch of the "Hora del Cรณdigo", Bogota. Image: Ministry of Education
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2
Materials
High quality textbooks Innovation #2: High quality materials and new incentive mechanisms for territorial entities
For the Government of Colombia, in the framework of the strategy to increase the quality of education, educational materials, and in particular textbooks, were essential, crosscutting resources to all programs. They had two main objectives:14
1. High quality specifications, given that the
objective was not only for the textbooks to be available to students and teachers, but also for materials to reflect international quality and standards.
2. Increased coverage of materials, promoting
a standardized model that allows material implementation strategies in all territorial entities, thus extending coverage, so that each child could have access to a textbook.
The ground covered to achieve these objectives generated a substantial change in the public policy on educational materials from 2013, as the new approach prioritized quality specifications while ensuring increased levels of coverage. To do so, the Ministry of Education implemented
different alternatives and mechanisms that ranged from the elaboration of its own texts, the review of educational materials around the world and applying for licenses for printing such materials, to the purchase of the best materials available on the market. All the alternatives were aimed at the fulfillment of the quality benchmarks of the education system in Colombia and the recognition of the country’s current situation and diversity. Also, the government designed new mechanisms for achieving a balance between the quality of content and affordability of the educational materials, which will provide the country with a sustainable line of materials in financial terms in the medium and long term. It is important to mention that these new mechanisms have been designed based on the great challenge represented by the administrative autonomy of territorial entities in Colombia, so they must be attractive enough due to their high quality and affordable price, to encourage territorial entities to adopt the recommendations of the central level.
13 Ministry of Education (2017) Responses of the Ministry at the request of Semana Magazine. Bogota. p. 1.
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Mechanisms 15 • Benchmarks were implemented (general guidelines for curriculum processes) which set out the minimum quality standards for materials distributed in educational establishments. • A demand aggregation instrument was designed for purchases of materials by the Colombian Government and the territorial entities from the suppliers of materials. This instrument generates economies of scale that reduce operating costs for each purchase, by providing improvements in pre-contractual and execution times, while combining wellbalanced prices and quality.
ACHIEVEMENTS
By 2017, more than 50% of the national educational establishments had been covered, benefiting 2.7 million students and more than 100,000 teachers through support for the use and delivery of 10.8 million textbooks. By 2018, the Ministry of Education plans to distribute 8,662,104 textbooks at 22,854
students
benefited
• A model is being built, with the support of the territorial entities and publishing houses, of the chain that covers the process of selection, acquisition, printing, preparation, distribution and use of the textbooks in the classroom. This is to provide territorial entities with access to a model that will allow them to identify opportunities to improve their cost structures.
16
The results of this policy are satisfactory in terms of the coverage of educational materials for programs led by the Colombian Government.
2.7million
• The Pricing Framework Agreement was implemented for the services of printing and distribution of texts, resulting in considerable savings on the implementation of textbooks designed by the Ministry of Education or licensed agencies, and ensuring that they are delivered on time and directly to the educational establishments, regardless of their location or access conditions.
educational sites, benefiting 2,881,391 students through an investment of approximately COP 46 billion. This will cover 52.01% of the country’s educational establishments, 42.81% of the population enrolled in State schools and approximately 115,256 teachers. In terms of alternative mechanisms, the implementation of the demand aggregation instrument began in 2017, allowing 50% of the boards of education that knew about the initiative to make formal commitments to purchase for the following year.
10.8million delivered
15 Ibid. P. 5 16 Ministry of Education (2017). Presentation of 2017 Results of the Policy on Educational Materials. Bogota.
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textbooks
Reading marathons, Cauca Valley. Image: Ministry of Education
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2
Materials
National Reading and Writing Plan Innovation #3: Production and distribution of reading and writing materials based on a strategy of support and promotion This program was implemented in 2011 through joint actions between the Ministry of Education and the Ministry of Culture to improve the Colombian population's low reading levels. According to the figures of the National Administrative Department of Statistics (DANE), by 2014, only 52% of Colombians read one to two books per year. The program aimed to increase this indicator significantly. The main objective of the program is to promote the development of communicative competences in early preschool, primary and secondary education, by strengthening school and family in the development of readers and writer. 18
Furthermore, the National Reading and Writing Plan develops collections aimed at educational communities with the Editorial Series River of Letters, whose objective is to produce books to promote the pedagogy and didactics of reading and writing.
The program is implemented through the joint effort between the Ministry of Education, which is responsible for running the program in educational establishments, and the Ministry of Culture, the entity in charge of public libraries, in order to generate socio-cultural changes in the population. In particular, for the education sector, these actions fall under four strategic lines: 19
2.
1.
Editorial production, reading and writing materials: With the support of experts, a robust collection of 270 books called Colección Semilla (Seed Collection) was produced, which includes titles from literature, informational and reference works for all levels of education. This collection promotes the development of pedagogical, training, recreational and informational activities, and was distributed in various parts of the country to equip and strengthen libraries and state schools. In addition, the virtual library "2.0 Leer es mi Cuento� (Reading is my thing) was developed with free materials to further strengthen the reading supply.
Territorial strengthening: This program works in conjunction with territorial entities offering technical support, visits and workshops for boards of education and educational establishments all over the country to promote reading, writing and orality. Each visit additionally offers guidance on the use and applicability of the books and collections in order for them to strengthen their pedagogical practices and promote innovative projects.
3.
Training of reading and writing mediators: Work is carried out in the area of training principals, professors, teachers, students and their families to become mediators that will contribute to improving the practices of reading, writing and orality in the everyday activities of the school, the school library, the home and other extracurricular spaces.
El Tiempo (2016). Colombians read little, even when the books are loans or gifts. Accessed on the El Tiempo website on October 12, 2017: https://bit.ly/2LsrgDI 18 Ministry of Education (2017). National Reading and Writing Plan. Accessed on the Ministry of Education website on October 12, 2017: https://bit.ly/2uxYMC9 19 Ibid. 17
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In this line, the ¡Pásate a la biblioteca escolar! (Come visit the school library) project is being developed, whose aim is to create, boost and strengthen school libraries through mediator training activities and to improve the processes of provision, monitoring and evaluation of the program.
4.
Mobilization: The program performs actions that raise national interest and promote reading, writing and orality as educational processes that are visible to the public eye. To do so, strategies are being implemented, such as reading marathons for students in primary and secondary levels of education and the National Short Story Contest that aims to promote literary creation among the students from both public and private institutions of primary, secondary and higher education in Colombia.
ACHIEVEMENTS Some 22,190 educational establishments located in the 32 of the country's departments have benefited from the delivery of the Colección Semilla (270 books each) and complementary collections (100 books each). The ¡Pásate a la biblioteca escolar! project has succeeded in strengthening the school libraries of 458 educational institutions in 25 of the country's departments, in a joint effort between the Ministry of Education, the boards of education and targeted establishments. One of the main added values of the National Reading and Writing Plan is that it involves public-private partnerships as a central pillar to join efforts in the purchase and delivery of book collections to the educational institutions. One example is the case of the Cuento Contigo (I’m counting on you) campaign, through contributions from customers of the BBVA bank, and partnerships with RCN Radio and RCN Television, which have made it possible to carry out the National Short Story Contest.
The program benefited
22,190
Schools located in all the 32 departments of Colombia.
458
Educational institutions in 25 of the country's departments
At the same time, reading marathons are being organized, which, in 2017, enjoyed the participation of 291,553 students, 3,493 mediators and 1,351 educational establishments in 30 departments, registering more than 76,430 books and 370 outstanding educational experiences in reading and writing. Finally, the plan annually organizes the National Short Story Contest, which was attended in 2017 by 21,991 students who submitted nearly 21,000 stories and more than 940 chronicles of their own authorship.
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3
Training and Support
Comprehensive Learning Roadmap Innovation #4: Didactic support for schools and boards of education
In the framework of increasing educational quality and at the same time strengthen the autonomy of both territorial entities and educational institutions, the Ministry of Education designed a plan to consolidate pedagogical and operational support for the boards of education of the territorial entities, educational establishments, and classrooms. This plan is the Integrated Pedagogical Roadmap resulting from the lessons learned in recent years through the different programs led by the Ministry of Education, such as Todos a Aprender and Jornada Única. 20 The Roadmap promotes different actions aligned with the educational establishments and the boards of education of the territorial entities, including the following: 21 • For educational establishments: it aims to promote the design and implementation of strategies for improving learning in the classroom by integrating the curricula. • For boards of education: it aims to promote the design and implementation of support plans focused on improving learning.
General objective of the Integrated 22 Pedagogical Roadmap Guide and assist the educators (principals and teachers) and quality teams of the territorial entities certified in the development and implementation of strategies to improve student learning, by strengthening the curriculum and promoting citizenship skills, focused on reading and writing for grades 3 and 5.
Operation of the Roadmap
23
This is carried out through three cycles of training and support in two inbound settings: educational institutions and boards of education, for which specific protocols and instruments are created with aligned, core topics. With regard to the first, detailed work was carried out in classrooms through the Todos a Aprender Program (PTA) with the targeted schools through the Single Schedule Program. With regards the second, localized work was carried out with the quality, improvement and assessment teams of the boards of education targeted.
20 Ministry of Education (2017). Summary of the 2017-2018 Integrated Pedagogical Roadmap. Bogota. p. 1. 21 Ibid. 22 Ibid. P. 3.
38
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ACHIEVEMENTS
24
In 2017, 95 boards of education of the territorial entities received pedagogical support from the Ministry of Education, aimed at strengthening their capacities for providing support for educational establishments under their jurisdictions. At the same time, more than 9,000 teachers have participated in the pedagogical support and training and more than 1,000 officials of the boards of education have participated in the pedagogical support processes.
95 boards of education of the territorial entities received pedagogical support from the Ministry of Education
9,000 teachers teachers have participated in the pedagogical support
Gabriel GarcĂa MĂĄrquez public school, Medellin. Image: Ministry of Education.
23 Ibid. p. 3. 24 Ibid.
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39
3
Training and Support
Teacher Training Strategy Innovation #5: Improvement of bachelor’s degree programs and an increase in scholarships for teachers Considering that teachers are the main focus for improving the acquisition of knowledge among young people, the government identified that a strategy should be designed to improve the quality of their teaching skills. In conjunction with programs such as Todos a Aprender, teachers are improving the quality of education and help to achieve the established goals. To do so, the following two strategies were designed for improving teachers’ skills, and they are being implemented as this report is being prepared: 25
1. Strengthening of bachelor's degree pro-
grams • It became mandatory for all the programs that
train teachers and professors in the country to have the high-quality accreditation granted by the National Council for Accreditation. • A process was launched to strengthen the practical teaching skills of future teachers in bachelor’s degree programs, so that the practical element will be the main focus of the educational programs, along with the theoretical component.
2. Scholarships for master’s programs
• Between 2014 and 2018, the government released resources to finance more than 17,000 scholarships for master's programs in Colombia and abroad for teachers and professors. Through this initiative, teachers and professors have had the opportunity to improve their theoretical and practical knowledge and skills.
Llanoverde public school, Cali. Image: Ministry of Education
25 Ministry of Education (2015). Presentation: Colombia on the Way to Becoming the Most Educated by 2025. Bogota.
40
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4
Assessment
SABER tests, Synthetic Index of Education Quality (ISCE) and Formative Diagnostic Evaluation (ECDF) Innovation #6: Comprehensive quality assessment system for all the stakeholders of the education system Based on the evolution of the education system in Colombia and considering the recommendations of international bodies such as the OECD, the government realizes that periodic assessments are essential in order to ascertain students’ performance and their process of internalizing the knowledge taught in the classroom.
At the same time, based on the need to summarize the information received from the various assessments in a single multidimensional indicator, in 2015, it created and implemented the Synthetic Index of Education Quality (ISCE). Besides considering the results of the SABER tests, the ISCE also considers the assessments of educational institutions and teachers.
In 2009, the Colombian Government made a profound change in the structure of the Colombian Institute for Education Assessment (ICFES) in order to strengthen its role as an evaluator of student performance at different educational levels through the SABER tests
Finally, under the 2025 Teacher strategy, and based on models implemented in Chile and Shanghai, in 2015, Colombia designed the Formative and Diagnostic Evaluation (ECDF), which is applied not only to teachers, but to other stakeholders that influence the educational environment.
SABER Test Innovation #7: strict annual follow-up of the skills acquired by students The SABER tests aim to help improve the quality of education in Colombia, through regular evaluations that assess the core competencies of students in grades 3, 5 and 9 and analyze the factors that affect their achievements. The census nature of the SABER tests provides each school with information about its strengths and weaknesses, as well as elements for the design, implementation and evaluation of institutional improvement plans. The design also allows for highly reliable territorial and national aggregated reports, largely due to the frequency of the tests, which allows the assessment of the progress in a given period and the analysis of the impact of specific programs and actions for improvement.
Since 2012, the SABER tests for grades 3, 5 and 9 were defined as annual tests to perform more rigorous monitoring of results of public policies in education and for monitoring external factors that affect students’ performance, since they identify their skills regardless of their origin, economic, social or cultural conditions. In sum, the SABER tests make it easy to follow-up on the improvement of educational quality for the country, by complementing the Summary Index of Education Quality.
26 Ministry of Education (2015). What is the Summary Index of Education Quality? Accessed on the Colombia Aprende website on October 10, 2017: https://bit.ly/2CulwnR
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41
Synthetic Index of Education Quality (ISCE) Innovation #8: Multidimensional and global measurement tool The ISCE was developed by reviewing the models implemented in Chile and regions of Brazil, such as Minas Gerais, to bring together, into a single indicator, the information from different quality of education assessments applied to students, teachers and principals of educational institutions. The main objective of the ISCE is to measure the quality of education in public and private schools throughout the country and their annual progress, based on a multidimensional scheme that uses a scale of 1 to 10, where 10 is the highest score.
Methodology Through the ISCE, the education sector and its stakeholders can assess the current state of education in Colombia, implement the necessary corrections and develop new strategies in public policy. This indicator implemented in 2015 is fundamental, given that it monitors the process to achieve the goal of making Colombia the most educated country in Latin America by 2025.
Assessment Criteria 26 • Progress: has a weight of 40% of the total assessment and measures how much the institution improved from one year to another, focusing on students with the lowest level of performance. • Performance: has a weight of 40% and is based on the institution’s latest results on the SABER tests. • Efficiency: has a weight of 10% and measures the school’s promotion rate. • School environment: has a weight of 10% and is based on a scale of classroom environment and the monitoring of the learning process.
Formative and Diagnostic Evaluation (ECDF) and 2025 Teacher Strategy Innovation #9: Multidimensional tool for evaluating teachers and school principals The implementation of this tool began in 2016 and it consists of a reflection and inquiry process focused on identifying the conditions, strengths and needs in which teachers, principals, union members, tutors and guidance counselors do their job. Its goal is to have a positive impact on the improvement of their respective jobs and
practices in order to improve pedagogical and educational processes in the educational establishment, while it aims to transform the processes of encouraging teachers and principals of educational institutions to promote continuous improvement.27
26 Ministry of Education (2015). What is the Summary Index of Education Quality? Accessed on the Colombia Aprende website on October 10, 2017: https://bit.ly/2gThLPG 27 Ministry of Education (2017). What is the ECDF? Accessed on the M2025 website on October 10, 2017: https://bit.ly/2Lqvv6k
42
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Knowledge Gym. Image: Ministry of Education
Methodology 28 Four main criteria are evaluated through four tests with different methodologies applied to six stakeholders, as follows: • Four criteria: 1) the pedagogical proposal of each stakeholder and its relevance; 2) the pedagogical praxis; 3) the social, economic, cultural, institutional and professional context surrounding the teacher; and 4) the work environment. • Six stakeholders evaluated: 1) teacher, 2) principal or headmaster, 3) coordinator, 4) tea-
ching coordinator, 5) tutors in coordination with the Todos a Aprender program, and 6) union officers. • The four tests consist of: 1) videos that record the activity of the stakeholders being evaluated, 2) surveys applied to different audiences relevant to the work of each stakeholder, 3) self-evaluations by the stakeholders with regards their duties and/or activities, and 4) the arithmetic average of the educator's last two annual performance assessments.
Quality incentives The government established that it had to encourage the acceptance of the Teacher Training Strategy and the 2025 Teacher Program in order for the processes to be effective and achieve the goals. With this in mind, resources were allocated for the educators who achieved the annual target results on standardized tests to be rewarded with half of their salary; in addition, if they managed to surpass the annual goal, they would be rewarded with a full salary. These incentives are currently applied only in schools with single schedules or schools that are part of the Todos a Aprender program. Also, in 2015, a salary balancing agreement was reached, which was aimed at achieving an
increase of 12 percentage points in educators’ salary, in a four-year period, along with the annual increases agreed upon for all State employees. This led to an 8.75% increase in teachers’ salaries in 2017, while all other State employees received an increase of 6.75%. The increase will be 2% in 2016; 2% in 2017; 3% in 2018; and 3% in 2019. 29 It is important to mention that teachers who do not achieve satisfactory results on the advancement tests will be able to improve their performance through an offer of ten thousand short courses prepared by the Ministry of Education.
28 Ministry of Education (2017). 2025 Teacher Assessment Instruments. Accessed on the M2025 website on October 10, 201 : https://bit.ly/2Lqvv6k 29 El Espectador (2015). Fecode and government agreement, point-by-point Accessed on the El Espectador website on October 10, 2017: https://bit.ly/2NoxW6C
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43
Ministry of Education's accountability event, Bogota. Image: Ministry of Education
44
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Programs that cover several components Single Schedule Program Innovation #10: Construction of infrastructure to achieve a single eight-hour school day in State schools, through innovative financing mechanisms As indicated above, Colombia made significant progress in increasing coverage in primary and secondary education between 1990 and 2010. However, the country’s formal education system was still in historical debt generated in the 1960s: it had not been possible to implement the single schedule due to the lack of educational infrastructure, and therefore, some students had to go to school in the early hours of the morning, while others attended in the afternoon. Despite achieving a solution for coverage, this double schedule generates gaps between the students of the public and private school system, given that the school day for State schools was defined as five hours per day for primary school students and six hours per day for high school students, whereas for private schools, the school days are up to eight hours
long. Secondly, this double schedule increases the risk and likelihood of students falling into situations of drug and alcohol consumption, gang membership, and teenage pregnancy in their free time. In sum, since the double schedule was implemented 50 years ago, the Colombian Government had not had the capacity implement policies that would begin the transition from the double schedule to the single schedule. It was the formulation of the 2014-2018 National Development Plan that constituted a decisive step for the Ministry of Education to begin to design a new policy to achieve said transition.
Main objective of the Single Schedule program: Transform the education system to eliminate the elements of unfairness and inequality. This objective is fulfilled through three main lines 30 •
Institutionally strengthen State schools through improvements in infrastructure, services, materials, food and staff so that in 2025 (for urban areas) and in 2030 (for rural areas), the 7.5 million students in State schools in Colombia will be able to study between six and eight hours a day in better conditions.
• Ensure improvement in the quality of State schools. The programs of the Directorate of Quality of the Ministry of Education, which include Colombia Bilingüe (Bilingual Colombia) and Todos a Aprender, are implemented preferably in schools with a single schedule where in situ support is provided by professionals from the Ministry of Education, in order to achieve improvements in the quality of education provided in schools that extend their school day..
30 Ministry of Education (2017). Directorate of the Single Schedule Program. Bogota.
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• Reduce the risks associated with extended free time for children and adolescents. More time in school means they will have greater protection against the possibility of falling into unfavorable practices and situations that could hinder their learning processes and development. National Educational Infrastructure Plan (PNIE): adolescents In order to achieve the objective and the three lines proposed, the Colombian Government created the National Educational Infrastructure Plan (PNIE) whose goal, by 2030, is to eliminate the deficit of 51,000 classrooms currently required in the country, anticipating that these classrooms will have optimal standards of infrastructure and, in turn, will generate a new institutional arrangement for that projects to be managed in an optimal and efficient manner. Actions proposed in the Plan • The new constructions are governed by strict quality standards. Schools must have all the
infrastructure and furnishings necessary for students’ optimal development. • A new institutional arrangement was created where the Ministry of Education and territorial entities work together, and the Fund for Educational Infrastructure (FFIE) was created as a trust fund to finance the works. This arrangement provides a new model of coordination and management for the procurement, development, monitoring and control of educational infrastructure projects, and for the management and optimization of financial resources from a variety of sources. • Strengthen information systems in order to have up-to-date standardized databases that provide timely information on the condition of the infrastructure, making it is possible to develop indicators for the prioritization of interventions in the framework of the National Educational Infrastructure Plan.
Transparent Financial Tools Innovation #11: New financing tools to ensure transparency in the use of resources Public Private Partnerships (PPPs) 31 One of the innovative mechanisms that were implemented in the Educational Infrastructure Plan is the use of public private partnerships (PPPs), designed as a strategy to complement public works, since they have innovative systems for risk management and the efficient measurement of the concession company using performance indicators. Work coordinated with PPPs is an alternative for budgetary restrictions in the public sector. For these reasons, Colombia's goal is for 14% of the new educational infrastructure that is built to be provided by PPPs.
31
46
The PPP model chosen to be implemented in Colombia is mid-range, since it includes the financing, design, construction and maintenance of the educational infrastructure, in addition to the provision of additional services such as catering, furnishings, surveillance and janitorial services. The education component remains in the hands of the Ministry of Education and of the Boards of Education, allowing principals and headmasters in Colombia to focus on achieving quality educational services, instead of operational or administrative issues. The Ministry of Education and the Fund for Financing Educational Infrastructure (FFIE) have made progress in the structuring of the model of the PPPs since 2015, in a partnership with
Ministry of Education (2017). Public-private partnerships in the National Educational Infrastructure Plan. Bogota. p. 2.
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the National Development Corporation (FDN), the World Bank Group’s International Finance Corporation (IFC), the National Planning Department (DNP), and Deloitte. The first phase of the project is being carried out in Medellín and Barranquilla. It includes a total of 21 schools, 738 classrooms and complementary areas (laboratories, special needs classrooms, technology classrooms, libraries, computer rooms, and drafting and other specialized workshops) and will benefit 21,520 students. Additionally, there is technical, legal and financial structuring for the second phase of the project in Medellín, Cartagena and Soacha and progress is being made in pre-structuring a third phase in Bogota, Cali, Bucaramanga and Girón.
Fund for Financing Educational Infrastructure (FFIE) The new institutional arrangement proposed by the National Educational Infrastructure Plan created the Fund for Financing Educational Infrastructure (FFIE), a special account of the Ministry of Education managed by an independent board of directors to centralize part of the funds from a variety of sources provided for financing the National Educational Infrastructure Plan. The fund has a number of characteristics that bring important benefits in issues of transparency and cost reduction 32 • It allows the creation of trust funds through the Ministry of Education, through commercial trusts, where national, regional, private and international cooperation resources come together. • It reduces costs thanks to economies of scale obtained through the large-scale procurement of groups of schools to be built. • It ensures the quality of the works, by standardizing the parameters of the constructions at national level.
32
• It allows the use of PPPs. • It increases the levels of transparency by prioritizing, centralizing and standardizing all procurement.
Outcomes and Goals of the Single Schedule Program: The program aims for 100% of students to study in single schedule mode in educational institutions in urban areas by 2025, and in institutions in rural areas by 2030. It is estimated that 51,000 new classrooms are required. This program constitutes one of the largest goals of the national education sector and involves significant budgetary and logistical challenges. Until mid-2018, nearly 1,000,000 of students have been studying in single schedule mode, and efforts are being made for this number to increase to 1,500,000 students in single schedule mode by the end of 2018. With regards the implementation of the works of the National Educational Infrastructure Plan (PNIE), by the end of the first half of 2018, nearly 9,576 classrooms were delivered and 14,986 are under construction. This represents a progress of 80% of the goal of 30,693 set by this government.
9,576
classrooms were
delivered
14,986 are under
construction
Ministry of Education (2017). Fund for Financing Educational Infrastructure. Accessed on the Ministry of Education website on October 24, 2017: https://bit.ly/2uLv6ka
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47
Lusitania public school, Medellin. Image: Carlos Avellaneda
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Todos a Aprender Program Innovation #12: Program for the in-situ improvement of teachers' teaching abilities. In 2010, it was identified that one of the major problems for improving results on standardized tests was the low educational quality provided in State schools in Colombia, associated with poor teaching practices in the classroom. Therefore, the government determined that it was necessary to design a program focused on improving teachers’ abilities and practices to increase levels of quality and close the gap between the most remote regions and cities, and between schools with lower levels of performance and State schools of better quality.33
Cascading operating structure of the Todos a Aprender program.
97
INSTRUCTORS training and supporting
4,200 TUTORS
who, in turn, train and support
For these reasons, the Ministry of Education developed the Todos a Aprender program in conjunction with McKinsey & Company, Universidad de los Andes and Universidad Nacional. The purpose of this program is to strengthen the pedagogical and didactic practices of primary school teachers in the areas of mathematics and language, with a view to facilitating and promoting the learning process among students to help them obtain better results on the tests.
92,664 teachers who teach
2.300.000 STUDENTS
Source: Ministry of Education
Main objective improve the learning processes of primary school students in establishments that currently have low performance, by strengthening the pedagogical and didactic practices of teachers in the areas of math and language. Methodology The program implements actions to strengthen teachers’ work and their pedagogical and didactic practices, through on-site support in the classroom to make the transfer of knowledge to students more effective. 34
The Ministry of Education chose 94 high-performance expert teachers to instruct 4,100 tutors responsible for assisting the educational establishments and working with teachers to help them improve their educational practices. Teachers do not have to leave their classrooms for instruction because the tutors attend their classes and evaluate their performance to later provide feedback, focusing on the following four components: 35 • Effective math and language teaching strategies in in the classroom: Teachers are taught to transfer knowledge to children effectively.
33 National Planning Department (2014). National Development Plan 2014-2018. Bogota. P. 79. 34 Ministry of Education (2017). Interview with the Manager of the Todos a Aprender Program. Conducted on August 16, 2017. 35 Ibid.
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• Use of results to encourage student performance: Standardized tests help to identify the areas of knowledge to be improved and to prioritize strategies for teaching the skills that are not being learned by students. • Delivery of educational materials: High quality materials are developed for students and teachers, based on the experience of countries such as Chile and Canada. • Improving the climate in the classroom: Better time management was encouraged, and the learning of citizenship skills is promoted.
There had never been a strategy in Colombia where work could be carried out directly with teachers in the classroom and in coordination with the boards of education. The program should last three years in schools until these reach levels where teachers can continue ascending on their own and, thus, allow new schools to become part of the program.
2.3 million
ACHIEVEMENTS
• Until the end of 2017, the program was operating in 885 municipalities, distributed through the 32 departments. • 70% of the coverage at the educational establishment and institution level is rural and 30% is urban. This translates into the effective outreach of the national government to the needs of the territory, in order for the support and training to reach distant places with difficult access, including many facilities in remote parts of the departments such as Amazonas, Vaupés, Vichada, Guainia, Guaviare, Chocó and La Guajira. • Thanks to the efforts of 4,200 tutors and 97 instructors, in 2017, the program assisted 92,664 teachers in the classroom in 13,455 State schools with low performance. • The program benefited 2.3 million students. • It delivered 7.5 million high quality books.
93 thousand
students benefited
teachers supported by 4,230 tutors
Results in educational performance For 2018, two main goals have been proposed where the program is operating:
1. Increase the percentage of students with satisfactory and advanced levels on the SABER 3 and 5 language tests to 30.9%. 2. Increase the percentage of students with satisfactory and advanced levels on the SABER 3 and 5 math tests to 29.9%.
tory or advanced scores on the standardized tests. In the case of mathematics, in 2016, it reached 29.8%, so there is 0.1% left, which is expected to be achieved by the end of 2108. 37 At the same time, between 2014 and 2017, the percentage of students with poor performance on the Saber 3 test dropped by six points (going from 27.29% to 21.52% in language and it dropped from 27.09% to 21, 27% in math).
36 Ibid. 37 Ministry of Education (2017). Implementation Report of the Todos a Aprender Program. Bogota. P. 2.
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4,200
Schools were benefited by the program
The language goal was surpassed in 2016 with 35.7% of the students who achieved satisfac-
50
36
Bilingual Colombia Innovation #13: Increase in bilingualism in Colombia through a cascading methodology that includes native English-speaking teachers and immersion camps As part of the goal set by the Government of President Juan Manuel Santos to make Colombia the most educated country in Latin America by 2025, one of the priorities is to ensure that children and young people enrolled in State schools have the opportunity to learn English starting at an early age. This is intended to generate equality in learning the language
and boost the bilingualism indicator. In the long term, this bolsters Colombia’s inclusion in international markets and continues to encourage tourism thanks to the fact that the country will have a society with greater Englishspeaking skills.
Colombia Bilingüe (Bilingual Colombia) 38 Students: in 2014, the results for the English component in the SABER test for grade 11 indicated that only 1% of the students reached pre-intermediate level B1. The goal for 2018 is to ensure that 8% of students reach this level. The Colombia Bilingüe Program for 2014-2018 has been structured in order to strengthen the learning of English at primary and secondary levels of education. Since 2015, the following strategies have been promoted focusing on teachers, students, boards of education and educational institutions. 39
1. Teacher training and incentives Since 2015, native English-speaking teachers have been assisting full English teachers based on a methodology of collaborative effort that works as follows: each native English-speaking teacher assists between four and eight groups in 9th to 11th grade classes (three hours per group). At the same time, 573 teachers have benefited from training through full immersion in English-speaking cultures. Thus national and international workshops have been implemented with countries such as the United States, India and the United Kingdom. In addition, training workshops were conducted for the implementation of the Suggested English Curriculum and to ensure the proper use of the English books that would be used in class. Foreign Native Instructors Total native instructors Colombian cities Teachers Total students benefited Total State schools benefited
2015
2016
2017
350
350
520
34
350
60
1050
1300
1560
98.000 176.000 124.800 150
350
371
38 Ministry of Education (2017). Progress of the Colombia Bilingüe program. Bogota. 39 Ibid.
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2. Immersion camps for students
The Ministry of Education implemented the first 100% immersion camps in English in the style of summer camps, in order to close gaps and enable young people from State schools to receive intensive language training without having to attend private institutions. These immersion camps have benefited 3,800 students nationally and 100 students who were sent to camps in the United States. These students were selected based on their good academic performance.
3. Suggested English textbooks and curricula
Some 443,900 high quality English textbooks have been printed and delivered for 6th, 7th and 8th grades and 618,630 textbooks for 9th through 11th grades. A suggested English curriculum was designed for transition through eleventh grade, and 22,000 kits were delivered with this curriculum to 11,500 of the country’s State schools.
Arrival of english native speakers to Colombia 2017, Bogota. Image: Ministry of Education
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ACHIEVEMENTS The program has been successful and has met its annual goals. The progress in meeting the goal for 2016 shows that 5.6% of the students achieved level B1.40
Progress in the percentage of students at English Level B1.
1%
3,2%
5,6%
6%
8%*
2014
2015
2016
2017
2018
*Goal for 2018
40 Ibid.
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53
Higher Education
“
According to studies by the DNP, the rate of return of public investment in higher education in the medium and long-term is the highest of all sectors at the national level, surpassing even the infrastructure sector.
“
54
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Higher education is the last link in the chain of academic training processes to impart skills to the individuals in society; it provides the country with citizens who are productive and qualified to be part of the country’s productive apparatus and allows it to move forward in the technification and sophistication of processes in all sectors at national level. The effects of the development of higher education on society are enormous; it is a tool that reduces poverty and inequality and increases the levels of competitiveness. Based on this approach, and within the framework of the goal set by the Colombian Government to make Colombia the most educated country in Latin America by 2025, it must be ensured that, among the efforts made
Graduation ceremony, Agriculture Technicians. Image: SENA
to promote higher education, coverage, quality, relevance and permanence are considered priorities. These elements are a fundamental part of the system to ensure that more and more young people are admitted to institutions of quality and acquire the skills, knowledge and tools necessary to become the country's agents of change and development. According to studies by the DNP, the rate of return of public investment in higher education in the medium and long-term is the highest of all sectors at the national level, surpassing even the infrastructure sector. This supports this government’s priority in education, a weapon in transforming development on all territorial levels in the country. 41
In this sense, the Colombian Government identified the need for structural changes in the sector, in order to rapidly increase coverage and improve the quality of the system at all its levels. These changes are developed through multisectorial agreements that align the interests of the government, civil and business sectors. Multi-sectorial agreements are an important element in the formulation of higher education programs, as the main pillars of the policy emerged from a national macro-agreement called Agreement No. 2034: Higher Education.
Ministry of Education (2015). Presentation: Colombia on the Way to Becoming the Most Educated by 2025. Bogota.
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Agreement No. 2034: Higher Education Innovation #14: Collective and inclusive multi-sectorial agreement that defines the public policy on higher education. In order to project the higher education system in the long term, an open dialog took place between 2013 and 2014, to coordinate the visions and proposals of all stakeholders in the sector. It was called Agreement No. 2034: Higher Education and its objective was to establish the main challenges for the system to move forward in positioning higher education in Colombia and to contribute to closing gaps in a new postconflict context. Agreement No. 2034: Higher Education presents a multi-sectorial approach of collective effort with all partners for the consolidation of a
quality, relevant, inclusive higher education system which is aware of the territorial needs throughout the country in the development and construction of territorial peace, through strategic themes to structure and guide the higher education system in a long-term perspective. 42 Based on the guidelines indicated in the agreement, the Ministry of Education has identified four strategic lines for achieving the purposes of the higher education system; these are: 43
1.
4.
2.
5.
Quality: consolidate quality standards in higher education institutions.
Relevance: respond to the needs and characteristics of students, the territories and the productive sector.
Research and innovation: consolidate and strengthen scientific productivity and competitiveness and add value to the production process. Financing: strengthen the system for financing higher education.
3.
Closing gaps and coverage: create opportunities for accessing quality educational programs in equal conditions for all citizens in the regions and those in lower socio-economic levels.
42These strategic themes are: inclusive education for access, retention and graduation rates, quality and relevance, research (science, technology and innovation), regionalization, coordination between secondary education and higher education and job training and sustainable development, consolidation of the university community, internationalization, structure and governance of the system and financial sustainability. 43 Ministry of Education (2017). Consolidation of programs of the Ministry of Higher Education. Bogota. P. 1.
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QUALITY 1 CALIDAD 1. In order to ensure the quality of higher education, the Ministry of Education has launched a series of strategies in order to:
• Ensure the improvement of the quality of hi-
• Expedite the process to recognize foreign hi-
•
Based on these strategies, the main changes made, and programs implemented are the following:
gher education institutions (HEI) and the higher education programs.
Assist educational institutions in their continuous improvement of the provision of the educational service.
gher education degrees.
System of Colombian accreditation with international certification Innovation #15: Strict and solid, internationally certified accreditation strategy In Colombia, the institution responsible for assessing the quality of programs and higher education institutions is the National Council for Accreditation (CNA), which achieved international certification in 2012 granted by the International Network for Quality Assurance Agencies in Higher Education (INQAAHE), and of the Ibero-American Network for Quality Assurance in Higher Education (RIACES). This certificate was renewed in 2017 and accounts for the soundness of the quality criteria and procedures implemented by the Council. Through the CNA, the Colombian Government is developing the following three major strategies:44
• Accreditation
based on a Multicampus approach, conceived as the way in which
institutions that have multiple educational centers in different parts of the country operate under a single integrated academic system. This helps to strengthen the regional approach, the closing of gaps and the decentralization of the high-quality offer.
• Update
of guidelines for accreditation of programs and institutions, including internationalization efforts, and advances and production in science, technology and innovation.
• Accreditation of bachelor’s degree programs, under the premise that educator excellence is an essential factor in ensuring the quality of education provided by educational institutions for children, young people and adults.
44 Ibid. P. 4.
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National University of Colombia, Manizales. Image: National University of Colombia
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Regulatory changes, Law 1740-2014 (control and inspection) Innovation #16: Regulatory framework for control and extensive inspection capacity. In the search for new mechanisms to ensure quality, the Ministry of Education determined that it was necessary to make regulatory changes that would provide greater capacity to inspect the activities of higher education institutions, while respecting their autonomy. To do so, the Law for the Control and Inspection of Higher Education (Law 1740-2014) was passed in 2014, which provides the Ministry of Education with the powers for the following purposes: 45
• Designing and implementing improvement plans. • Sending Ministry delegates to the governing bodies of the higher education institutions when necessary. • Pointing out conditions that the institution must meet to correct or overcome, in the shortest possible time, any administrative, financial or quality irregularities that endanger the provision of education.
•
Ensure that the Ministry has greater access to information regarding higher education institutions.
• Order the suspension of unauthorized activities of illegal operators.
•
Implement preventive activities that ensure the provision of the public service of higher education in terms of quality, which includes measures such as:
• Ordering the implementation of special oversight measures, such as in-situ inspections, suspensions of quality certifications, financial mechanisms to ensure the proper management of resources and the replacement of staff members in the event that they hinder the implementation of preventive measures. • Ordering the implementation of rescue measures for the temporary protection of assets and resources of the HEI.
Energy Technical School, Barranquilla. Image: SENA
45 Ministry of Education (2014). Law 1740- 2014. Accessed on the Ministry of Education website on October 12, 2017: https://bit. ly/2Luq2I8
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National University of Colombia, Bogota. Image: Axxis Magazine
New validation system Innovation #17: Updated validation system according to the international standards promoted by UNESCO Using a new regulation for the recognition of higher education diplomas and degrees, Colombia is gradually moving toward the signing of a global convention for the recognition of higher education qualifications currently promoted by the United Nations Educational, Scientific and Cultural Organization (UNESCO). This provides an understanding of the different education systems, the adoption of common solutions for the recognition of degrees, transparent information, and facilitates academic mobility.46
Characteristics of the new system
• It establishes an efficient process for the timely
address of applications for the recognition of degrees.
• It creates an academic and technical glossary used in the process of validation in order for citizens to understand the process.
•
It facilitates recognition of degrees through clear rules, criteria and procedures.
• It creates a special section for processing applications for the recognition of degrees in the area of health, harmonizing the national and international medical practice and terminology; it specifies the area of activity of academic evaluators and recognizes the training prerequisites in the case of second specialties.
46 Ministry of Education (2017). Consolidation of programs of the Ministry of Higher Education. Bogota. p. 7.
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• It establishes the inability to validate titles from
higher education institutions in national territory, without a certification of accreditation from the Ministry of Education.
•
It uses guidelines on education systems and education quality assurance in the countries where the degrees are from, as well as listings with information about requirements or prerequisites for access, legality, recognition and accreditation of institutions and academic programs.
Information and monitoring systems Innovation #18: Monitoring quality and retention in higher education Colombia has five information systems that are valued and recognized internationally by different countries and agencies, including the OECD, which provide the necessary information to the Ministry of Education and institutions of higher education on processes of planning, monitoring and inspection of programs, public policies and higher education systems; statistics on the relationship between the job market and graduates; drop-out and retention rates with student characteristics; and the status and registration of the accreditation processes of programs and institutions.47 Information systems
• National Information System for Higher Education (SNIES). • Labor Observatory for Education (OLE). • System for the Analysis and Prevention of Dropouts in Higher Education (SPADIES).
• The results on the ICFES’ SABER 11 and SABER PRO tests. • Model of Performance Indicators
Of the five quality measurement tools for HEIs, it is important to highlight the Model of Performance Indicators (MIDE), which aims to provide clear, continuous and accessible information on the quality status of the institutions.
47
Ibid.
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Through MIDE, there have been three deliveries of information for university education and one for technical and technological programs, where the HEIs and interested parties can find results in seven dimensions and on 21 indicators for 174 HEIs with university or college programs or in three dimensions and on 13 indicators for 149 HEIs with technical and technological programs. In addition, an understandable classification has been designed to compare the HEIs, validate the data from the information systems with the HEIs and open spaces for discussion on the measurement of quality between HEIs and the Ministry. The information systems designed to monitor the higher education indicators have become the main source of information for sectorial entities, such as the Colombian Observatory of Science and Technology, the Administrative Department of Science, Technology and Innovation (Colciencias), the ICFES, the Colombian Institute for Educational Loans and Technical Studies Abroad (ICETEX) and the National Administrative Department of Statistics (DANE), among others; as well as the official source for international agencies such as UNESCO, the OECD and the Inter-American Development Bank (IDB).
Technical School, Bogota. Image: SENA
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RELEVANCE 2 CALIDAD 1.
Inclusive Education Innovation #19: Incentives and monitoring of the access and retention of populations with special constitutional protection Inclusive Education Guidelines: 48 Were published in 2014 in order to encourage HEIs to define actions and strategies for strengthening the differential approach in access, retention and quality conditions of higher education for populations with special constitutional protection in Colombia. It is a pioneer public policy document in Latin America, which provides the practical tools to be implemented in order to increasingly position education as the cornerstone of Colombian society. As mentioned above, the government’s investment in prioritizing education is based on its perception thereof as the main element to close gaps and reduce inequality regarding access to opportunities for children and young people. This document is the result of two years of work and develops an understanding of the country’s ethnic and cultural diversity as part of the educational model to incorporate the concept of social inclusion in the country’s reality. Likewise, the Inclusion Index for Higher Education (INES) was developed as a tool to recognize the advances in addressing the diversity of its students and analyzes their strengths and opportunities for improvement. The Ministry of Education has supported the construction of improvement plans for the promotion of inclusive education.
48
National Qualifications Framework (MNC) Innovation #20: Higher education consistent with productive needs This instrument is intended to consolidate learning roadmaps and improve access, participation, relevance and people's education and job continuum. The National Qualifications Framework (MNC) also aims to promote lifelong learning in the system through the construction of catalogs that define the basic characteristics to be included in educational programs. So far, 11 catalogs of qualifications have been created in areas such as early childhood education, culture, agriculture, defense (aeronautics subsector), healthcare, port logistics, electricity sector, graphic communication, infrastructure, 4G roads and the mining and energy sector. The catalogs help improve the relevance and quality of technical education in the country and reflect the Colombian Government's efforts to advance in the design of a quality educational offering that is relevant, based on the MNC and the Model of Institutional Strengthening and Development. This effort is structured in an agreement with 20 institutions offering Technical and Technological programs. It is important to note that the catalogs are the result of the sectorial analysis carried out jointly between the productive and education sectors and the Colombian Government, and it provides a forward-looking characterization of the demand for jobs and the supply of education programs.
Ministry of Education (2017). Guidelines of the Policy of Inclusive Higher Education. Retrieved from the Ministry of Education’s policy website on August 28, 2017: https://bit.ly/2K3GgH7
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Universidad Nacional de Colombia Fuente: STHAL Ingeniería
Internationalization Innovation #21: Internationalization of Higher Education The country is currently promoting two initiatives to further the internationalization of the sector:49 i) Promoting Colombia as a destination for higher education, through its participation in the two main international fairs of higher education: Association of International Educators (NAFSA) and European Association of International Education (EAIE). ii) The Colombian Government actively supports the Latin American and Caribbean Conference for the Internationalization of Higher Education (LACHEC). These scenarios undoubtedly allow universities to promote the exchange and strengthening of bilateral relations with partners around the world, enabling them to be more competitive in the market.
Rural Education for Peace Plan Innovation #22: Territorial approach as a basis for closing regional gaps This plan aims to ensure access to quality higher education in the country by articulating rural development and peacebuilding in education. This will lead to progress in closing regional gaps.
49 50
The initiative is being developed through calls for proposals in the sub regions where the Development Plans with a Territorial Approach (PDET) have been implemented, which includes 170 priority municipalities within the postconflict framework based on the recognition of their intrinsic potential to transform rural life in social, economic and productive aspects. At the same time, it aims to create 105,000 new openings for the rural population and increase the rate of immediate transition in rural areas from 22% to 40%. Currently, there have been two calls for proposals to support the financing of HEI initiatives. The first call published in June 2017 resulted in 12 projects in nine PDET municipalities. In July 2017, the second call was made, after which six projects were selected in three PDET municipalities.
Reorganization and assessment of technical and technological education programs Innovation #23: Interaction with university education and implementation of standardized tests for technical and technological programs
The Ministry of Education found that it was essential to promote changes in the ways in which technical and technological programs interact with other levels of education, as well as in the methodology for monitoring educational quality. To do so, the following measures were taken:
Ibid. P. 11. The PDETs are discussed in Chapter 4 of this publication.
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65
•
The National System of Tertiary Education (SNET), which organizes the supply of tertiary education programs into two pillars of education: 1) university and 2) technical and technological programs. This system allows the levels of training to be complementary and facilitates transition between them. This change recognizes the importance of technical and technological education for national productivity.
•
A standardized test was designed and implemented to evaluate the level of training of students at institutions of higher education, called the SABER PRO test. SABER PRO test was also implemented for technical and technological education programs. 51
COVERAGE AND CLOSING GAPS 3 CALIDAD 1. The Ministry of Education, within the framework of the second main objective of the education sector corresponding to the increase in coverage, has implemented strategies to close the gaps in access to higher education. These strategies are aimed at the following:52
emergency or in conditions of high vulnerability. That is why differential scores are defined on the SABER 11, depending on the departmental average, in response to the need to recognize regional differences and capitalize on the talents of vulnerable areas of the country. 53
Students not only receive a loan that is 100% forgivable, but also receive monthly allowances for living expenses. Subsidies vary according to their need to transfer, among other conditions. In • Developing mechanisms that promote access turn, beneficiaries have monetary incentives for for all populations and inclusion in higher edu- obtaining good academic results. cation. • Increasing opportunities of access in different parts of the country, closing gaps and creating opportunities to access higher education.
Ser Pilo Paga Innovation #24: Closing gaps by encouraging culture to be the best student The major objective of this program is to reduce social gaps, by providing the students who achieve high scores on standardized tests in the last grade of high school and from social environments where the dropout rate is high, with access to an accredited high-quality institution of higher education, through a scholarship for 100% of the tuition funded by the Government of Colombia.
ACHIEVEMENTS The Ser Pilo Paga program has more than 40,000 young people from 990 municipalities in Colombia's 32 departments (88.4% of the total municipalities in Colombia). In addition, two special chapters have been designed for the program’s fourth call for applications on November 8, 2017
In turn, this program has a regional approach that prioritizes the award of the benefit to the population located in territories under a state of ICFES (2017). Learn all about the Saber Pro, Saber T y T and Saber Pro Exterior tests. Accessed on the website of the Colombian Institute for Education Assessment on October 12, 2017: https://bit.ly/2Lr1148 52 Ministry of Education (2017). Consolidation of programs of the Ministry of Higher Education. Bogota. p. 9. 53 Ibid. P. 12. 51
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•
"Pilos por Mocoa," which will benefit at least 50 young people with additional openings for the young residents of Mocoa, due to the municipality’s state of emergency in place since April 1, 2017. • "Todos Somos PAZcífico," as special chapter that aims to promote the development of the Pacific Coast of Colombia. The program granted more than 150 additional openings for young residents from the municipalities included in the Todos Somos PAZcífico plan.
40,000 young people from
990
municipalities of Colombia
Finance funds Innovation #25: Funds to finance scholarships that are specifically aimed at closing gaps Colombia is currently a pioneer in rates of access to higher education for subjects of special constitutional protection, such as victims of the conflict, the disabled population and ethnic communities. This positioning dates back to 2012, when the Colombian Government began to develop new funding mechanisms, especially through the creation of the Fund for Victims of the Armed Conflict.
At the same time, ICETEX, responsible for managing student funding in Colombia, is the first institution of its kind in the world, with funding mechanisms supported by the OECD and aimed at students from disadvantaged families. Its main value added is recorded among the country’s most vulnerable populations, because the loans granted to students in middle and lower socioeconomic levels do not accrue interest.
It subsequently continued with the creation of funds for other population segments in conditions of vulnerability as defined by the Constitution, which allocated resources to finance the tuition for the beneficiaries’ studies and to subsidize their living expenses. There are currently 26 funds that have benefited 217,000 young people from vulnerable In addition, work is being carried out in communities who, thanks to the support of conjunction with the institutions of higher the Colombian Government, have the tools education to create other mechanisms that necessary to access higher education. encourage the retention of beneficiaries as a strategy to prevent them from dropping out. Also and as a complementary strategy for financing, 411,000 loans have been granted for undergraduate and graduate students.
ACHIEVEMENTS
54
OECD (2016). Education in Colombia, Review of National Education Policies. p. 271.
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RESEARCH AND INNOVATION 4 CALIDAD 1.
Colombia Científica (Scientific Colombia) Innovation #26: Incentives for the creation of national and international networks for the production of research and innovation Colombia Científica is an initiative that directly affects the quality of the higher education in in the country, since it aims to strengthen teaching, applied research and the international projection of institutions of higher education through the following two components: 55
i)
Scientific Ecosystem: through an investment of USD 50 million, this program is carried out with calls for projects that promote research to generate new knowledge in order to improve productivity and competitiveness in the country. Since the program's inception in 2017, 19 projects have been submitted, four of which were selected. The selection of another four projects is anticipated for 2018.
ii) Passport to Science: thanks to the support
of the World Bank, in 2017, the Government of Colombia, through Colciencias, developed this program to grant 90 doctoral and 100 master's scholarships, in addition to financial support for eight projects in science, technology and innovation, and 190 professionals in the country. The total investment of Colombia Científica for this project amounted to COP 234 billion. Thanks to this initiative and according to the Shanghai ranking, 190 professionals have been able to pursue graduate studies in some of the 500 best universities in the world. Colombia Científica is also intended to contribute to the internationalization of higher education, promoting a more fluid relationship between the productive sector and both national and international institutions of higher education.
55
FINANCING 5 CALIDAD 1.
Financing for institutional operation and investment Among other goals, the Ministry of Education aims to strengthen the financing of higher education and promote retention in the educational system.
Ministry of Education (2017). Consolidation of programs of the Ministry of Higher Education. Bogota. P. 11.
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New technologies for the Military Forces. Image: Colciencias
To do so, between 2010 and 2017, the annual contributions made by the nation to public institutions of higher education increased by 63%, from COP 2.24 billion to COP 3.65 billion (approximately US$1.28 billion). Innovation #27: Creation of income tax for equality As of January 2013, the income tax for equality (CREE) entered into force. The CREE is a tax with specific purpose where the amounts collected
are invested directly in social programs that promote the reduction of social gaps. Thanks to this tax, in the case of higher education, COP 1.2 billion (USD 400 million) have been invested between 2013 and 2016 so that, through their plans to promote quality, institutions of higher education can make investments in strengthening their physical and technological infrastructure, teacher qualifications, regionalization, research, actions for retention and designing and adapting the academic supply.
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69
Income-Contingent Repayment Bill (FCR) Innovation #28: Mechanisms for the protection of individuals paying their loans
One of the projects in the structuring process is the renewal of the regulations for the repayment of ICETEX loans. Its objective is to ensure that installments are paid in proportion to their income, which is why the reform proposes that installments change depending on each individual’s earnings. This new progressive mechanism proposes an innovative formula that is being designed based on the guidelines of the Australian model adapted to the realities of Colombia.56
• They do not require a co-signer. • There is no interest charge. • They will not be reported to credit bureaus. • There are no arrears or default interests. • No credit analysis is required. • There is no capitalization of interests.
The main benefits of the Bill for individuals with • There is no charge during periods of unemployment. ICETEX loans: 57
MAIN ACHIEVEMENTS In particular, efforts in the higher education system have led to the system’s increased coverage, which is currently at 2,446,314 students. This figure means that Colombia achieved coverage of 52.8% by 2017, an advance of about 16 percentage points from the rate reported in the year 2010 (37.1%). The great goal is to reach 57% in the year 2018.
Higher Education Coverage 60% 47.08
50%
20%
52.8
57 *
37.05
40% 30%
51.5
14.2
16.04
1990
1994
23.01
23.09
30.04
1998
2002
2006
10% 0% 2010
2014
2016
2017
2018
* Goal for 2018
ICETEX (2017). Bill regarding Income-Contingent Finance (FCI) starts regional talks throughout the country. Accessed on the ICETEX news portal on November 25, 2017: https://bit.ly/2O1J4HR 57 Ibid. 56
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Thanks to actions aimed at mitigating the main causes for desertion, launched by the Ministry of Education with the support of institutions of higher education, the university dropout rate was reduced by 3.8 points between 2010 and 2016, going from 12.9% to 9.03%.
Figure #6. Desertion in higher education 14% 13%
12.90%
12%
11.80%
11%
11.10%
10.40%
10%
10.10%
9.30%
9.00%
9% 8% 7% 2010
2011
2013
2012
2014
2015
2016
Figure #6. Desertion in higher education
High-quality coverage reached 19.1% in 2017, which is equivalent to nearly 825,000 students enrolled in accredited undergraduate programs or institutions of higher education with high quality accreditation. High-quality Coverage Rate 20% 19.10%
18% 16%
14.90%
14%
8%
16.90%
13.60%
12% 10%
15.70%
12.90% 11.30% 10.50%
2010
2011
2012
2013
2014
2015
2016
2017
Figure #7. High quality coverage rate
On the whole, thanks to the efforts of the Ministry of Education and Higher Education Institutions, more than a million new openings have been created over the past 10 years, 225,000 of which were created between 2015 and 2017. Thanks to the incentive programs for retention and financing, about 61% of new students now entering higher education programs in Colombia come from families with incomes of less than two minimum monthly salaries.
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71
Colombia’s accession to the OECD and international cooperation for education Innovation #29: Comprehensive study of the OECD to promote deep and effective structural reforms
Since the Colombian Government announced Colombia's interest in joining the OECD in 2011, the Ministry of Education conducted a study that same year, in order to initiate the necessary reforms as soon as possible. In 2013, the formal exchanges began between the committees of the multilateral agency and, in 2016, Colombia received approval for accession on the part of the OECD Education Policy Committee. 58 In addition, this same Committee provided Colombia with the report entitled Education in Colombia: Review of National Policies for Education, which presents the recommendations that need be implemented in the medium term. In general, the two major areas that it recommends should be addressed are the closing of gaps and improvement in the quality of education for all; both topics were identified as a priority by the Colombian Government. The current challenge is to seek the means to cover both fronts in the medium and long term. One of the most important components to do so is international cooperation, by way of official development assistance (ODA) and other modalities.
The Ministry of Education has focused the efforts of its international cooperation team on strengthening links between Colombia and the countries of the region in the field of education policies. This always considers the strategic guidelines raised by the Colombian Government’s Foreign Policy. Therefore, in order to move forward in strengthening bi-national ties with different countries in Latin America and the Caribbean, actions have been taken involving the transfer of knowledge, exchanging good practices and the development of joint initiatives with the countries in the region. In this regard, it is important to mention the relationship consolidated mainly with Brazil, Chile, Ecuador, El Salvador, Cuba, Honduras and Peru, with which Colombia has exchanged experiences and good practices primarily in the areas of education quality assurance, mutual recognition of qualifications, school lunches, citizenship skills, curricula, teacher training and pedagogical support.59
Presidency of the Republic (2017). Colombia on the Path to the OECD presentation. Accessed on the DNP website on November 25, 2017: https://bit.ly/2O2qbnV 59 Ministry of Education (2017). International South-South Cooperation Report. Bogota. 58
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Children in early childhood phase. Image: El PaĂs
Comprehensive early childhood care Protecting the future of Colombia Existing scientific evidence worldwide regarding the relevance of early childhood indicates that investment in early childhood, i.e., in the first six years of life of a human being, has the highest rate of return for society in the long term and results in lower long-term social spending by the State. The impacts of investment at this point in the life cycle of every human being also make it the most effective tool for breaking the cycle of poverty and the main element to drastically reduce the gaps of inequality. In line with this evidence, Colombia prioritized the implementation of a State policy to promote the comprehensive coverage of the care required by Colombians during their early childhood. It is important to mention that, at this stage of human development, there are certain biological characteristics that are elementary and warrant multidimensional support on the part of the different actors involved the development of each child: 60
60
Presidency of the Republic (2013). Comprehensive Care: Prosperity for Early Childhood. Accessed on november first, 2017. Website: https://bit.ly/1hgyKrT
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73
1.
During the early childhood years, 80% of the brain's potential is developed.
2.
Basic functions are developed, such as vision, hearing, language, as well as cognitive and higher functions.
It is for these reasons that the country recognizes children as subjects with rights from the first moment of life, defined from the moment of conception, assuming the provisions established by international instruments, such as the Convention on Children's Rights, as well as national instruments requiring the family, society and the State "to assist and protect the child to ensure their harmonious and integral development and the full exercise of their rights�. 61
Regulatory Framework Innovation #30: Comprehensive Regulatory Framework Among the most relevant regulatory developments in Colombia in the field of early childhood, emphasis is placed on the ratification of the International Convention on Children’s Rights in 1991 through the Colombian Constitution , in which the country adopts the doctrine of the comprehensive protection of children's rights. 62 Law 1098-2006 (Code of Childhood and Adolescence) is also emphasized as it defines and promotes the exercise of the right to comprehensive early childhood development. In 2011, the National Strategy of Comprehensive Care for Early Childhood De Cero a Siempre (From Zero to Always) was launched, giving rise to the State Policy. After that, Decree 4875-2011
created the Inter-Sectorial Commission for Comprehensive Care in Early Childhood, a division of the Central Government in which the stakeholders involved meet to agree on actions for the implementation of the Policy. In 2013, the political, technical and management foundations were consolidated for what the Strategy was at the time. Finally, the Strategy became State policy through Law 1804-2016, which establishes the "State Policy for Comprehensive Early Childhood Development From Zero to Always.
State Policy for Comprehensive Early Childhood Development Innovation #31: Creation of a solid and sustainable State policy In 2010, the indicators showed a challenging picture regarding the situation of mothers and their children at the stage of early childhood in Colombia. Although the situation had begun to
61 62
Article 44 of the Colombian Constitution. Ibid.
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improve in the 1990s, the indicators still showed there was a need to intensify efforts through the construction and implementation of a comprehensive and inclusive State policy. 63
Situation of children at the stage of early childhood in 2010:
Based on the philosophy of 'building on what is already there,' considering the experience and knowledge accumulated in previous years, • 60% of children at the stage of early childhood as well as the regulatory, political, technical were living in poverty. and management advances achieved during the first term of President Juan Manuel Santos’ • Half of all births were not planned or desired. administration, Law 1804 arose, establishing the State Policy for Comprehensive Early Childhood • In rural areas, two out of every five women used Development From Zero to Always, which birth control before having their first child. In received the President's approval in August 2016. urban areas, it is one of every two. Primary objective of the Policy: • 19% of teenage girls were mothers in urban Establish the conceptual, technical and management bases to ensure the comprehensive areas and 26% in rural areas. development of children in early childhood, • One out of every five women did not attend within the framework of the doctrine of comprehensive protection. The Policy aims to healthcare services during pregnancy. strengthen the institutional framework for the • Breastfeeding lasted 10 months less than the 24 recognition, protection and guarantee the rights of pregnant women and children from zero to six months suggested internationally. years of age, as well as the materialization of the Social State of Law. 64 • The rate of malnutrition was 13%. • 54% of children had not attended any kind of early education.
Goal: The Policy aims to provide comprehensive service to 1,350,000 children in 2018. It is important to note that, due to budget effects and prioritization of efforts, the Colombian Government is focused on the vulnerable and extreme poor sections of the population.
Today is Your Day event. Image: Ministry of Education
Presidency of the Republic (2013). Comprehensive Care Strategy for Early Childhood. Political, Technical and Management Foundations. Bogota. p. 38 64 Presidency of the Republic (2016). Law 1804-2016. Accessed on the President’s policy website on November 01, 2017. website: https://bit.ly/2ptvHmv 63
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75
Key Elements of the Early Childhood Policy The Zero to Always Policy, which is part of the Colombian Government’s strategies to promote social inclusion and reduce poverty, places children at the core of its actions and is based on their recognition as subjects with rights, particularly the right to comprehensive development, which has led to a series of structural changes in the manner of conceiving the formulation and implementation of social policies in the country.
The Policy has been built on the following pillars: 65 Innovation #32: State Policy with a comprehensive perspective • Comprehensive development: The policy recognizes that children's rights are fundamental rights, that they are unique and that they inhabit different environments. It identifies the conditions and stages that occur in the life of each of them, which make their comprehensive development possible. It also considers a life course approach that takes into account the particularities and specific needs of each age group during the early childhood years. In order to focus its actions, the Policy prioritizes four environments in which the children’s lives and development occurs: the household, the educational environment, the health environment, and public space.
Also, the Zero to Always Policy defined the following structural aspects that organize early childhood care: 66 • Care and upbringing: Includes aspects related to training and support for families, and the protection of the rights and personal integrity of children. • Healthcare, food and nutrition: aims to preserve the lives of children in conditions of full dignity by promoting their well-being, preventing conditions that disrupt their wellbeing, treating disease with quality and warmth, and providing rehabilitation for their emotional and functional stability in order for them to live an autonomous and active life.
• Territorial approach: Since its creation, the Policy assumes and recognizes the cultural • Early education: aims to intentionally foster the comprehensive development of children diversity present in the regions of Colombia by favoring interactions that take place in in all its aspects. It considers the specificities enriched environments through pedagogical of each child in the national territory and experiences and care practices. understands that no two children are the same. • Inter-sectorial action: In the policy cycle, • Recreation: promotes the development of children’s autonomy and self-determination governmental institutions at national and by facilitating experiences of enjoyment and regional levels, international cooperation, recreation. academia and civil organizations involved in early childhood care identify the points of intersection of their actions in order to • Exercising citizenship and participation: favors the construction of the sense of personal coordinate and articulate them. and collective identity through the participation of children in their environments, as the exercise of freedom and inclusion (being heard, noticed and taken into account). 65 66
Presidency of the Republic (2017). From Zero to Always presentation. Bogota. Presidency of the Republic (2013). Comprehensive Care Strategy for Early Childhood. Political, Technical and Management Foundations. Bogota. p. 131.
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Intersectorial Commission for Comprehensive Care in Early Childhood 67 Innovation #33: Inter-sectorial and territorial approach Based on the integral perspective of the Policy, the need was identified for a body to bring together all those involved in the design and implementation of the policy. This led to the creation of the Inter-sectorial Commission for Comprehensive Care in Early Childhood to coordinate, implement, articulate, and manage the policies, plans, programs and actions necessary for the implementation of the State Policy for Comprehensive Early Childhood Development From Zero to Always. The entity also serves as the forum for coordination between the different stakeholders involved.
This Commission sets out the technical guidelines to be applied for the national and territorial implementation of the Policy. It also defines the mechanisms for joint work and the specific competences of the different government entities and national and territorial authorities involved, such as ministries, institutes and secretariats.
Comprehensive Care Roadmap Innovation #34: Comprehensive benchmark for the implementation of the Policy One of the great achievements of the Inter-Sectorial Commission has been the design of an instrument regulating the management of the Policy: the Comprehensive Care Roadmap. This roadmap specifies the actions that must be implemented, based on the structuring factors mentioned above. It was developed through a joint effort with territorial entities and citizens associations. 68 "This set of services aims to guarantee that, in each of the environments in which the children live, there are the human, technical, social and material conditions to ensure the promotion and
strengthening of their comprehensive development, and to recognize the characteristics of their contexts, conditions or impacts." 69 "Therefore, the Policy promotes the ongoing training of education agents and professionals, in order to ensure their understanding of the child as an integral being and for quality care to be provided in a timely and relevant fashion, aiming to meet the diverse requirements that arise during Early Childhood."70
Presidency of the Republic of Colombia (2016). Law 1804-2016. Accessed on the regulatory legal portal on November 01, 2017 website: https://bit.ly/2ptvHmv 68 Presidency of the Republic (2013). Comprehensive Care Strategy for Early Childhood. Political, Technical and Management Foundations. Bogota. p. 202. 69 Presidency of the Republic. Overall progress in comprehensive care in early childhood. Bogota. p. 2. 70 Ibid. 67
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The Roadmap organizes children’s care according to the following points: 71 a) The recipient of care (parents, expectant mothers, caregivers and children). b) The environments in which children’s development takes place. c) The vital moment or age group in early childhood (preconception, pregnancy, birth,
from zero to three months, from three months to one year, from one to three years, from three to six years of age). Three types of care have also been defined: universal, specialized and differential. The Comprehensive Care Roadmap is a benchmark for public institutions, territorial entities and other stakeholders responsible for implementing the public policy.
Child-by-Child Follow-up System (SSNN) Innovation #35: Information system for the nominal follow-up of child development The SSNN is one of the main innovations of the from the other information systems of some State Policy for Comprehensive Early Childhood of the entities belonging to the Inter-sectorial Development, which allows the recording and Commission. 72 follow-up of the care offered child-by-child. The SSNN consolidates the information of each child
Children in early childhood phase. Image: ICBF
71 Presidency of the Republic (2017). From Zero to Always presentation. Bogota. 72 Presidency of the Republic (2016). Law 1804-2016. Accessed on the regulatory legal portal on November 01, 2017: website: https://bit.ly/2ptvHmv
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ACHIEVEMENTS Colombia has made significant progress in guaranteeing children's rights thanks to the execution of the National Strategy of Comprehensive Care for Early Childhood From Zero to Always. At the beginning of 2010, 389,000 children under five received integrated care; in 2014, 1,040,351 received care through the From Zero to Always program.
intake. They also participate in an educational project in line with their development, in terms of recognition, assessment and the celebration of diversity, with a differential approach.
To begin with De Cero a Siempre was proposed as part of the strategies to reduce poverty and inequality gaps. Thanks to the efforts made by the Colombian Government to boost comprehensive By June 2018, in accordance with the policy care for early childhood, between 2010 and 2016, guidelines, 1,362,604 have been served through multidimensional poverty in early childhood has the program. This means that each of these reduced from 36.3% to 20.5%. 73 children is subject to receiving early education with qualified human talent, accompaniment for their families, and 70% of their nutritional By June 2018,
1,362,604 recieved comprenhensive care
between 2010 and 2016, multidimensional poverty in early childhood has reduced 15.8 pp
15.8 pp.
OECD and International cooperation Colombia has become an international benchmark in the field of comprehensive care in early childhood. It has been a case study of worldrenowned scholars and has received visits from 25 countries interested in learning about and exchanging experiences within the framework of the From Zero to Always policy. The recognition of the Policy’s strength has led to the creation of cooperation agendas with governments that aim to look into the Colombian experience: Ecuador, El Salvador, Guatemala, Honduras, Panama, Peru and Dominican Republic.
74
On the other hand, in conjunction with cooperation agencies, Colombia led the definition of the Regional Agenda for Comprehensive Early Childhood Development, which involved States of Latin America, stakeholders from the governmental, non-governmental and academic sectors, which constitutes an advocacy tool for political sustainability in the region's countries and provides support for more decisive progress in guaranteeing the rights of this population. The action plan for the implementation of this agenda is currently under construction.
73 Presidency of the Republic (2017). From Zero to Always presentation. Bogota. 74 Presidency of the Republic (2017). Information from meeting with the management team of the Inter-sectorial Commission for Comprehensive Care in Early Childhood. Bogota.
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SCIENCE, TECHNOLOGY, INNOVATION AND RESEARCH
Design and automation laboratory, Bogota. Image: La Salle University
The activities of Science, Technology and Innovation directly influence the increased levels of a country’s competitiveness and productivity, at the same time that they reduce social gaps in the long-term through innovative solutions that provide society with the opportunity to gain access to greater knowledge and new tools. In Colombia, these activities were not traditionally a priority among the government’s development goals and they were becoming an area of work suffering from the poor structuring of projects and programs, given that the priority fell solely on the State, ignoring that a large part of the technological changes and innovations come from private competition and the needs of the consumer market.
80
COLOMBIA HAS CHANGED
The Government of Colombia identified these shortcomings and set the objective to become a leading country in science, technology and innovation (ST&I) in Latin America in the medium term. It did so, through the formulation of a public policy that would accelerate the development of this sector. This investment is very significant in the current context of conflict in Colombia, particularly because it promotes great added value in productivity for the economy in general. The main objective of this policy, although it is very broad, denotes a need to make deep and structural changes in all the policies of the ST&I sector in Colombia.
Bioeconomy development in Colombia. Image: Colciencias
Main goal increase investment in ST&I with respect to gross domestic product (GDP) up to 1%, where 50% comes from the private sector.
Macro-pillars of the new public policy on Science, Technology and Innovation 1.
Institutional Reorganization: develop national and territorial institutional capacity to allow long-term planning and effective monitoring of the processes and results.
2.
Colombian Regulation Update: aupdate the regulatory frameworks to promote innovation and technological development as engines of business growth and entrepreneurship.
3.
Improvement of the impact of national scientific publications: encourage specialization and the impact of scientific production in the country and promote the transfer of knowledge and technology to the productive sector.
4.
Encourage the development of a culture of scientific vocation: ownership and use of technological solutions in the population, particularly among young people and business entrepreneurs.
COLOMBIA HAS CHANGED
81
PILLAR 1 INSTITUTIONAL REORGANIZATION 1. CALIDAD Since 2006, Colombia has made major structural changes within the institutional framework that makes up the sector (ST&I). The most significant changes were the creation of the National Science and Technology System that later became the National System for Science, Technology and Innovation (SNCTI), and the establishment, in 2009, of the Administrative Department of Science, Technology and Innovation (Colciencias) with the Law 1286-2009.
Biointropic, Medellin. Image: EFE Edgar DomĂnguez
82
COLOMBIA HAS CHANGED
Science, Technology and Innovation Fund of the National Royalties System Innovation #36: New mechanisms for the management of royalties ensure the increase in funds for the ST&I sector. As is well known, the programs and projects that encourage the development or use of new technologies usually entail high costs for public budgets. To cope with this challenge, the Colombian Government set out to support this sector with funds from royalties; i.e., revenue received by the State from the exploitation of the natural resources of Colombia, which have been an important source of revenue to leverage public spending.
FCTel). At present, 10% of resources received by the Colombian State from the exploitation of non-renewable natural resources are allocated to this fund, whose objective is the financing of regional projects in science, technology and innovation. 75
The CTeI Fund does not depend on Colciencias or any other entity of the sector due to the level of independence and territorial decentralization that prevails for the resources that flow to the Law 1530-2012 made major changes to the National Royalties System. Therefore, the revenue system that manages royalties at the national received by FCTel is part of a new arrangement in level in order to ensure efficiency in the use which decisions are agreed between territorial of these funds. One of the most important governments, representatives of local universities changes was the creation of the Fund for Science, and the Colombian Government through the Technology and Innovation (or CTeI Fund or Collective Body for Administration and Decisionmaking for FCTel (OCAD-FCTel). In Colombia, collective bodies (OCADs) have been created for each of its regions. These are responsible for assessing, raising awareness, approving and prioritizing programs and projects funded with resources from royalties. The OCAD is made up of three groups of stakeholders: 1. Colombian Government: one representative of Colciencias, three ministers and one DNP representative.
3. Universities: four representatives of public universities and two representatives of private universities, for two-year terms, without the possibility of immediate re-election.
2. Departmental Government: six governors or their delegates for one-year terms. While this system is an innovative territorial approach, the Colombian Government recently evaluated the possibility of making changes in order to ensure the effectiveness of the use of the specific resources of the CTel Fund, since flaws have been identified in the implementation and follow-up of projects in the sector.76 75 Colciencias (2014). Royalties for Science, Technology and Innovation, On the Path to Regional Prosperity. Accessed on the Colciencias website on October 23, 2017. website: https://bit.ly/2nj4VAk 76 Colciencias (2017). Progress report on programs led by Colciencias. Bogota. p. 6: https://bit.ly/1ljAzB9 77 Colombian Observatory of Science and Technology (2017). Financing of the sector by type of institution. Bogota. p. 24-25.
COLOMBIA HAS CHANGED
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ACHIEVEMENTS
78
During the 2012-2017 period, COP 1.8 trillion were invested in ST&I activities thanks to the Fund for Science, Technology and Innovation of the National Royalties System.
1.8 trillion were invested
Nanobioengineering alliances. Image: Ministry of Education
78 Documents prepared and approved by the National Council on Economic and Social Policy (CONPES). Chapter 6 elaborates on this Council.
84
COLOMBIA HAS CHANGED
PILLAR 2 Regulation Update 1. CALIDAD
CONPES
78
Innovation #37: Incentives and facilities for the private sector Colombia has made great strides in empowering the private sector's participation in science, research and innovation, mainly through CONPES 3834-2016. The latter defines the guidelines for stimulating private investment in ST&I, aiming for improved effectiveness of tax deductions for the sector.
79
Prior to the CONPES document, Colombia had made substantial progress, but structural problems persisted: little knowledge about deductions, errors in the procedures for applying for the deduction at the time of processing, and a lack of access for small and medium-sized businesses.
CONPES 3834, stipulated two major objectives and actions to achieve them as follows: 81 1.Broaden the scope of the tax deduction ins- 2. Improve the conditions and alternatives to trument to encourage private investment in access to tax benefits: ST&I activities a. Plan for the promotion and support of small a. The adoption of the ST&I concepts of the Oslo and medium-sized businesses. Manual (Manual focused on measurement and concepts of innovation) and the Frascati Manual b. Implementation of assessment, learning and (Manual focused on measurement and concepts feedback procedures prior to the implementation of the projects. of science and technology activities). b. The document on types of projects was updated based the OECD recommendations. Examples of ST&I projects were included, along with examples of projects that do not conform to the concepts and guidelines. Guidelines on good practices were added in the design, management and implementation of ST&I projects. c. A tax code reform was recommended. d. It was recommended that the parameters be created to prioritize projects in the event that demand exceeds the limit of tax benefits.
c. An automatic mechanism was designed for companies that have already been accredited to submit their projects without intermediation and this included companies in early phases and small and medium-sized businesses (SMBs), which, despite not generating a net income, can deduct these investments in innovation in the future when they have to pay income tax. d. A process was designed to identify highly innovative companies in order to facilitate their access to benefits.
79 Colciencias (2014). CONPES Document 3834. Accessed on the Colciencias website on October 24, 2017 80 National Council on Economic and Social Policy of the Republic of Colombia. National Planning Department (July 2, 2015) CONPES Document 3834. website: https://bit.ly/2muhKoY 81 Colciencias (2014). Ibid 82 Colombian Observatory of Science and Technology (2016). Financing of the sector by type of institution. Bogota. p. 22-23.
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ACHIEVEMENTS Prior to the new regulations defined by CONPES 3834, only 30% of the quota available to the State for tax exemptions on investments in ST&I was used. Today, 100% of the quota, equivalent to COP 650 billion annually (approximately USD 220 million) is used by companies. The following figure illustrates the leap in monetary investment by private enterprise and its participation since 2014: 82
100%
Of the quota set by the Government is used. Equivalent of USD 220 million.
Inversiรณn privada en actividades CT+I 60% 55% 50% 45% 40% 35% 30% 25% 20%
Inversiรณn CT + I en miles de millones de pesos
7000 6000 5000 4000 3000 2000 1000 0 Total Private Total ST&I %Private Inv
2010
2011
2012
2013
2014
2015
2016
2017
2018*
967,4
922,8
1620,2
1706,5
2382
2685,2
2915,8
2915,8
3078,9
3160,4
3192,1
4369,4
5473,2
5672,9
5732,6
5468,7
5461,3
5576,7
30,6%
28.9%
37%
31.1%
42%
46.8%
50.9%
53.4%
55.2%
Source: Colombian Observatory of Science and Technology
83
Colombian Observatory of Science and Technology (2017). Financing of the sector by type of institution. Bogota. p. 47.
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COLOMBIA HAS CHANGED
Law 1838-2017, incentives for the creation of technology-based businesses (spin-offs) Innovation #38: Law of incentives for public university enterprises This law, adopted in July 2017, promotes entrepreneurship projects resulting from research conducted by public universities in Colombia. 83
Therefore, with the new Law 1838-2017, this impediment was removed and Colciencias was allowed to work with public universities in providing financing and technical assistance for In the past, public universities were forbidden the creation of enterprises with public resources. from financing technological innovation projects This change is very innovative in the Latin developed by the university itself, given that the American context and strengthens the policy of return on such investment was considered a dual- incentives for the private sector. income for the university official or professor who promoted it. This regulation discouraged innovation and technological development by public universities.
PILLAR 3: Enhancing the impact of national 1. CALIDAD scientific publications
Strategy to increase the amount and level of citations Innovation #39: Direct intervention to encourage the level of citations of Colombian publications Colombia designed a system for the digital indexing of publications called Publindex, which started operating in 2002, allowing the country to make important advances, such as the standardization of publications, the promotion of the institutionalization of peer reviews, increased scientific production skills, integration and unification of the rules, promotion of the internationalization and upkeep of a system of ongoing assessment and control of the dynamics
84
of national scientific publications. According to studies by Colciencias, the publication of scientific papers in Colombia has increased significantly, but there is evidence that more than 45% of them have low or zero rates of citation and only 13% is considered to be high category (papers that are included in the best and most important journals national and internationally).
Colciencias (2016). National Policy to Improve the Impact of National Scientific Publications. Accessed on the Colciencias website on October 25, 2017. Sitio web: https://bit.ly/2L83tNe
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Therefore, the Colombian Government designed a program that aims to solve the problem of the country's limited contribution to the generation of knowledge at global level due to the small number of publications by researchers in high impact journals and the low visibility of national scientific journals.
The Publindex methodology consists of the following: 84 1. Increased publications by national researchers in scientific journals included in indexes and highimpact citations.
ACHIEVEMENTS
a. Support for researchers in the procedure to In 2010, there were 4480 high-impact papers and in 2017, this figure rose to 9,555. These results publish their papers in high impact journals. account for a 113% increase. 85 b. Effort to increase the exchange of national scientists with international peers, whose results will lead to joint publications in journals in highimpact citation indexes. 2. Increased presence of national scientific journals in high-impact citation indexes and databases. a. Profound changes to processes and tools to measure impact. b. Support to improve the editorial management of the journals.
These results account for an increase of 113%
113%
c. Digitalization of the journals. d. Journal mergers.
85 86
Colciencias (2017).2017 Report. Accessed on the Colciencias website on june 25, 2018: https://bit.ly/2LqloPz Colciencias. (2017). Patent brigades and regional patent funds. Accessed on the Colciencias website on October 26, 201. website: https://bit.ly/2uKedXf
88
COLOMBIA HAS CHANGED
Promotion of national patents Innovation #40: Patent brigades and financing funds to encourage the creation of patents Promoting the development of innovation and new technologies is of the utmost importance for a country's economic and productive growth, but there is an essential element whose importance must not be downplayed in this process: the formal registration of patents. With that in mind, the Colombian Government designed a program of incentives for the registration of national patents based on three major elements: 86
1.
The creation of patent brigades: these brigades are intended to identify projects whose results have the potential of patent protection among key stakeholders, such as institutions of higher education, research centers, technology development centers, companies and independent inventors
subsequently filing it with the Colombian Superintendence of Industry and Commerce (SIC) to later file the patent registration internationally.
3.
Regional work: With the help of the Colombian Government’s Management Unit for Business Growth (INNpulsa), work is carried out with the 2. territorial entities that do not have their own Funds for the protection of investments: this fund to finance patents, in order to identify Fund is a financial exchange that aims to promote opportunities for technological and innovative the financing of up to 80% of the costs of a patent. development to promote the registration of In turn, it provides technical advice and support patents at regional level. for the owner of the technological development in completing the patent application and
ACHIEVEMENTS The goal is to reach 600 patent applications by Colombian residents in 2018. Currently, Colombia is the second country with the most patent applications in Latin America, after Brazil. The number of patents approved by the Superintendence of Industry and Commerce: 87
129 201 209 2011 2012 2010
242 269 332 2014 2015 2013
545 595 2016
2017
Superintendence of Industry and Commerce (2017). Patent Data. Accessed on the SIC website on june 26, 2018 website: https://bit.ly/2uyNJbT 88 Colombian Observatory of Science and Technology (2016). Financing of the sector by type of institution. Bogota. p. 37. website: https://bit.ly/2Lv50cB 87
COLOMBIA HAS CHANGED
89
Technification of Human Capital Innovation #41: Active intervention to train human capital and solve market failures. One of the main problems affecting the competitiveness of Colombia’s productive apparatus is the lack of skilled human capital with the knowledge necessary to generate greater added value and to compete effectively with more developed countries. This weakness limits the capabilities of the industry, public, and research institutions to carry out science, technology and innovation activities and achieve high standards of efficiency and quality. The government has identified this problem and, through an increase in the domestic supply of loans and scholarships, has managed to significantly increase the number of people who annually graduate with master's and doctoral degrees from higher education institutions, both national and internationally.
Colfuturo scholarship. Image: Ministry of Education
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COLOMBIA HAS CHANGED
In conjunction with Colfuturo (an entity that, since 1991, has promoted, directed and financed Colombians wishing to pursue graduate studies in the world's leading universities), forgivable loans were established for students abroad, under the condition that they must return to Colombia and to work three to five years in order to have 50% of their loan erased. In addition, if the scholarship holder decides to work as a professor, a public official or a researcher, the forgivable percentage increases by 10%. Furthermore, the Colombian Government formulated and implemented a CONPES to relieve the debt of students affected by the valuation of the US dollar during their studies, granting an additional variable debt forgiveness. Meanwhile, in 2017, the government began to implement a strategy called Doctoral Stays to ease the employment of these professionals by the national productive apparatus and thus, strengthen its innovation and competitiveness schemes.
ACHIEVEMENTS
88
The program has shown positive outcomes thanks to a combination of an increased supply offered by higher education institutions in Colombia and increased resources to finance studies both in Colombia and abroad, with Colciencias, Icetex and Colfuturo as the largest providers of loans and scholarships in the country.
Below are two figures that show the effectiveness of the programs promoted by the Colombian Government to increase the number of people with doctoral degrees nationally and the increased number of scholarships, loans and scholarship-loans.
20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0
700 600 500 400
PHD
MASTERS
Number of Colombians that graduate from national master’s and doctoral programs per year
300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MASTERS PHD
3286
3485
4141
4803
5934
7669 10260 10589
91
94
139
173
211
276
339
330
12074 14602 18805 408
466
615
Source: Colombian Observatory of Science and Technology
Number of scholarships, loans and scholarship-loans for master’s and doctoral programs available to Colombians per year 7000 5000
PHD
MASTERS
6000 4000 3000 2000 1000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 MASTERS PHD
279
445
1467
1037
2941
3239
266
239
356
479
731
836
3826 1159
2130
6253
5770
5299
977
1703
1217
872
Source: Colombian Observatory of Science and Technology
89
National Council on Economic and Social Policy (2015). Declaration of the Strategic Importance of the Project to Support the Training of Highly Qualified Human Capital Abroad. Accessed on the National Planning Department website on October 25, 2017: https://bit.ly/2vrLOqg
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While the outcomes have been highly positive since 2010, in 2015, the government determined that it was not enough to merely increase the number of PhD graduates, but that it was also necessary to create other incentives for the policy to have a greater impact in the medium and long term in closing gaps throughout the country. Therefore, through CONPES 3835, the following areas were identified as being in need of improvement in order to further the impact of the policy.89 Most important elements of CONPES 3835 Areas for improvement • Decentralize the concentration of program beneficiaries, 72% of which live in Bogota. • Provide incentives for master's and doctoral programs in areas of basic sciences whose current participation is relatively low: 7.12% for graduates of master's programs and 23.8% of doctoral programs in 2012. • Increase the number of researchers per million inhabitants. In 2015, Colombia had 184 researchers per million inhabitants, while Brazil had 710 and Argentina had 1,236.
Incentives • 15% of the amount of the loan is forgivable if the activities are carried out outside the metropolitan area of Bogota. • 45% of the amount of the loan is forgivable if the studies are in the area of basic sciences, while if they are in the area of law or management, 20% of the loan is forgivable. • Increased budget for scholarships and loans: from 1,200 scholarships in 2017 to 2,000 in 2025.
Doctoral Stay Program Innovation #42: Active intervention mechanisms to employ human capital in the productive sector and solve market failures The government began to implement during the end of 2017 an employment program for Colombians with doctoral degrees in companies, State institutions or research centers in order to accelerate the absorption of talent in the Colombian productive system. This policy consists of two pillars and operates as a social network for job searches. 91
1.
Graduates with a PhD must take part in the call for applications to register in the database.
2.
Public or private institutions of the National System of Science, Technology and Innovation that are interested in employing individuals with a PhD use this database to find the talent they need.
90 Ibid. 91 Colciencias (2017). Call for applications from the Post-doctoral Stay program, Colciencias beneficiaries 2017. Accessed on the Colciencias website on November 02, 2017: https://bit.ly/2rdi5Q7 92 Colciencias (2017). Ondas Program. Accessed on the Colciencias website on Sunday, November 26, 2017: website: https://bit.ly/2rdi5Q7
92
COLOMBIA HAS CHANGED
PILLAR 4: Encourage the development 1. CALIDAD
of a culture of scientific vocation
As part of the strategy to generate more qualified human talent to participate in the processes of science, technology, innovation (ST&I) and research, the government determined that it is necessary to begin by instilling a culture in children and adolescents that encourages interest in ST&l. Innovation #43: Generate scientific culture in youth and allow the transition of young professionals Ondas Program: 92 This program emerged 16 years ago to generate a scientific culture among the new generations. It aims to inspire young people's curiosity about their environment to encourage research activities that will lead them to propose solutions.
The Ondas program is implemented through a joint effort with the Ministry of Education and the boards of education of the country's departments and municipalities.
Young researchers and innovators program: 93 is a strategy of early training for careers in The program operates in the country’s public science that aims to facilitate the involvement of schools through activities and methodologies young Colombians who have recently graduated designed for each grade level from primary to from institutions of higher education in research secondary education. The activities start with a and innovation activities. These young people research question regarding the context of the submit their research proposals and a committee issues in their communities and based on that selects the winners, who will have to further their question, the teacher and students become investigations under the supervision of Colcienresearchers searching for a structured solution. cias experts. This program develops a taste for discovery and critical thinking in children and adolescents in The winners will also have access to training, insColombia, in addition to instilling the notion of truction and technical and research skills builscience, technology and research as agents of ding to help them enter and remain in the Natiochange in society. nal Science and Technology System.
Colombia’s accession to the OECD and International Cooperation in ST&I The process for Colombia’s accession to the Committee for Scientific and Technological Policy of the Organization for Economic Cooperation and Development started in 2014, the year in which Colciencias began its efforts to
achieve the reforms requested by this body. In 2015, Colombia was accepted by the Committee, which highlighted the operation of the National Royalties System's Fund for Science, Technology and Innovation. 94
93 Colciencias (2017). Young researchers and innovators. Accessed on the Colciencias website on November 26, 2017: https://bit.ly/2NtQMcH 94 Portafolio (2015). Colombia submits to the OECD a science and technology exam. Accessed on the Portafolio news portal on November 27, 2017: https://bit.ly/2uLzQqb 95 Colciencias (2017). What does the area of internationalization do? Accessed on the Colciencias website on November 27, 2017: https://bit.ly/2AW4680
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In recent years, Colciencias has led several • The research project on biodiversity, Colombia actions to make Colombia more visible Bio, which will be conducted in depth in the abroad in the field of science, research and chapter on Environment and Sustainability, has innovation through the following three made it possible to achieve international coostrategic lines: 95 peration agreements with Brazil for technical support; with Peru for joint expeditions; and with Germany, Spain, France and England for • Strengthen relations with strategic partners. funding and technical support. • Promote the circulation of knowledge and innovative practices on a global stage. • Mobilize financial resources from international cooperation for ST&I.
• Partnership with the Max Planck Institute of Germany to share resources and generate knowledge for the processes of developing new medicines to study and fight infectious tropical diseases.
Based on these strategic lines, Colciencias has • The Newton Fund of the United Kingdom pledged GBP 30 million up to the year 2021 to fipromoted several projects and agreements for nance scholarships, joint research projects, reinternational cooperation, the most notable of search for the post-conflict period and GBP 20 which are the following : 96 million for the Colombia Bio project. • Colombia has become the host for international events related to ST&I; in 2016 and 2017, it hosted the Ibero-American Ministerial Summit of Science, Technology and Innovation. • In the quest to increase the procedural rigor of research projects, Colombia is participating in the Inter-American Evaluators (BIEN) in order to facilitate joint research projects, evaluation by expert peer researchers, mobility between countries, and the standardization of processes, profiles and capabilities of evaluators and researchers in Latin America.
• Ecos-Nord Agreement with France, thanks to which mutual cooperation is encouraged and developed between higher education and research institutions between the two countries. Between 2010 and 2016, 55 joint projects have been funded thanks to this Agreement. • Training for employees of research centers and Colombian companies in order to encourage their participation in the European Union’s Horizon 2020 program's calls for proposals. • An agreement was signed with Fulbright to finance doctoral and master's studies abroad.
96 Colciencias (2017). Report on progress in international cooperation. Bogota.
94
COLOMBIA HAS CHANGED
2
Infrastructure, Social Housing, and ICT
COLOMBIA HAS CHANGED
97
FOTO
Guaduas-Puerto Salgar highway. Image: ANI
98
COLOMBIA HAS CHANGED
Connecting Colombia to the future A revolution in infrastructure and communications Thanks to the country’s signing of over 13 free trade agreements, the beginning of regional integration processes with the creation of the Pacific Alliance, and its desire to become part of the Organization for Economic Co-operation and Development (OECD), Colombia has undergone profound structural economic changes over the past decade. In light of this policy of openness and integration into international economic chains, competitiveness levels need to be raised to reduce the Colombian economy’s vulnerabilities in light of a greater exposure to fierce international competitors. The Government of President Juan Manuel Santos understood this challenge and embarked on the difficult task of increasing the
The 2010-2014 and 2014-2018 National Development Plans have taken on this problem and prioritized increased competitiveness through different strategies; one of them being an improvement of the country’s transportation and logistics infrastructure. They stipulate the need for profound institutional and regulatory changes so as to make progress and give Colombia roads with optimum standards that will enable improved transportation of goods from production centers to the ports and viceversa, ports that are competitive and efficient, and airports with cutting edge technologies and appropriate capacities. .1
There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future. The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on. Mark Zuckerberg.
“
“
country’s competitiveness and productivity levels that had not grown in any substantial way despite the strong increase in its gross domestic product (GDP) in recent years.
1 National Plannning Department (2010). National Development Plan 2010-2014. Bogota. p. 248.
COLOMBIA HAS CHANGED
99
Diagnosis The history of Colombian transportation infrastructure includes many setbacks, and many factors have delayed its development, including the armed conflict with subversive groups that prevented access to many of the country’s regions, a difficult geography where the main production centers are far from the sea and separated by abrupt mountain ranges, a weak legal framework that made construction difficult and placed the government at a disadvantage, and a lack of financial resources and technical capabilities. These factors have kept Colombia ranked in the bottom positions of the IMD World Competitiveness Report and it is specifically in the infrastructure indicators of this report that the country’s lowest scores are found.2
Hisgaura Bridge, Santander. Image: Adaptation Fund
2 IIMD. Competitiveness Trends 2016. Accessed on October 26, 2017 from the IMD.
Website: https://bit.ly/2JwSc3y
100
COLOMBIA HAS CHANGED
Regulatory and institutional changes Since the 1990s, the government has moved forward with government policies aimed at involving the private sector in the construction of public works through concessions. The development of the legal and contractual mechanisms has been an exercise of trial-anderror, where the first works adjudicated in the 1990s presented serious problems related to their execution and cost overruns.
bank with high corporate governance standards that would help cover risks and facilitate private investment, 3) the Incentivization of private investment by eliminating structural obstacles, and 4) the protection of the State by increasing the responsibilities of the concession companies. Likewise, the introduction in 2018 of the “works for taxes” approach, based on lessons learned from a similar model implemented in Peru, is an example of the most recent regulatory changes within the infrastructure sector. Under this approach, companies can invest the amount they are required to pay in taxes, directly in road, education, healthcare, water and electrical infrastructure projects.
In 2010, the national government decided that the then-current regulations required deep reforms to solve the structural problems that overwhelmed the infrastructure sector. To do so, an infrastructure commission was set up that brought together government representatives and expert stakeholder groups around this topic and, through an important consensus, agreed The “works for taxes” approach is explained in upon the reforms that needed to be implemented. detail in Chapter 4, as it is being implemented within the framework of the Peace Agreement The proposed reforms sought 1) the creation of signed with the Colombian Revolutionary Armed a technical institute that would be in charge of Forces (FARC, in Spanish) guerrilla movement. concessions, 2) the creation of an investment
Image: ANI
COLOMBIA HAS CHANGED
101
1
Creating the National Infrastructure Agency (ANI)
Innovation #1: A new institution with a technical profile and solid structure responsible for private infrastructure investment The National Infrastructure Agency (Agencia Nacional de Infraestructura – ANI) is the architect for the implementation of the new regulations that involve the private sector. Attached to the Ministry of Transportation, the ANI was created in 2011 by Presidential decree and is responsible for formulating, promoting, evaluating, following up and defining funding mechanisms for the country’s infrastructure projects where the private sector is involved, either through a partnership with the government or through projects that are fully financed by that sector.
The construction of the ANI’s institutional structure and transparency processes was advised by Chile, Canada and the World Bank. 3
Transparency The main pillar of the ANI is transparency, an essential element for protecting the government and promoting private sector confidence. The following elements are highlights of this pillar. 4
Most important elements of this pillar are the following:
New Pumarejo bridge, Barranquilla. Image: El Heraldo
• Tendering processes are broadcast live over the Internet. • All decisions and assessments are recorded in logs that are filed and made available to the public. • A formula was designed that defines the winning bid, wherein the bids are averaged and those above and below 10% are discarded. • During construction contract execution and subsequent operation -which may last over 20 years- there is often the need for adjustment. These adjustments are identified by a team of expert observers who, together, make recommendations which are ultimately evaluated by the ANI. In the case of large-scale changes, these are submitted to review by the Consejo Nacional de Política Económica y Social –CONPES(National Council for Social and Economic Policy). • Tender documents are simple and standardized. • Supported by corporate governance with international standards and independent advisors.
These elements have proven to be successful: no lawsuits have been filed by companies due to alleged vices, and the tender document model was copied by INVIAS, an entity attached to the Ministry of Transportation in charge entirely of public investments. Finally, in 2014,
the ANI received an award for best government agency for public-private partnerships (PPPs) in the hemisphere from the prestigious English publication P3 Bulletin, and was a finalist for this award in 2017 5
3 Interview with the President of the ANI, from August 17, 2017, Bogota. 4 National Infrastructure Agency (2016). Accountability Event 2011-2016. Accessed on August 20, 2017 from the ANI website on
YouTube. Website: https://bit.ly/2usMRWr
5 Interview with the President of the ANI. August 17, 2017, Bogota.
102
COLOMBIA HAS CHANGED
2
Creating the National Development Corporation (FDN)
Innovation #2: Institutional innovation that catalyzes private international funding. The need for transformation and modernization of the infrastructure sector led the national government to innovate in institutional design. One of the products was the FDN, a first-floor development bank that works in turn as a bank specializing in infrastructure – a hybrid and pioneering entity in Latin America. Together with the ANI, these are the two main institutions that
promote infrastructure PPPs in the country: the ANI focuses on highways, ports and airports, and the FDN, despite also working with highways, focuses mainly on helping cities with complex projects, such as the Bogota Metro and healthcare and education PPPs. 6
The FDN has two main lines of action: 7 • Project Structuring: Providing technical assistance to national and regional-level public sector entities to guarantee that infrastructure projects attract private investment and financing. • Project Financing: Focusing on identifying gaps in the market to design adequate mechanisms and achieve participation from different sources of funding for the country’s infrastructure. This line concentrates on two efforts: 1) Mobilizing key actors for achieving comprehensive financing and generating trust in the Colombian market. 2) Improving the credit profile for projects through direct financial participation in innovative products in Colombia that reduce inherent risk. • Project Management: Focuses on becoming the entity responsible for project execution. This line is new and is in the testing stage. Contecar Port, Cartagena. Image: Port of Cartagena Asociation
Leveraging of Investments The FDN is an entity that mobilizes and catalyzes funding. The way in which it invests resources in projects is aimed at making those projects bankable by the private sector; this means that the FDN covers risks that reduce the general attractiveness of projects, thus getting international banks, equity markets and institutional investors interested in them.8 6 Interview with the FDN General Manager. August 15, 2017, Bogota. 7 FDN. Service portfolio. Accessed on August 22, 2017 from the FDN Website: https://bit.ly/2mngBRS 8 Interview with the FDN General Manager. August 15, 2017. Bogota.
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Innovative Elements of the FDN9 • It is not 100% public. Its largest shareholder is the Colombian Government with a 67% share, followed by the International Financial Corporation (IFC) with 16%, Sumitomo Mitsui with 8%, and the Andean Development Corporation (Corporación Andina de Fomento - CAF) with 8%. It is governed by the regulations of a mixed company like Ecopetrol, which guarantees good salaries and the attraction of excellent human capital.
the other shareholders have veto power. This eliminates the risk of making non-commercial or unsustainable decisions. • It is a first-floor bank, which means that it is able to provide direct financing. In spite of the fact that this could increase the associated risks, these are mitigated by the FDN’s specialization in infrastructure topics and its extensive knowledge of the sector.
• Its structure was designed together with the • Its corporate government is similar to that of a International Financial Corporation (IFC). There private company. In order to restrict government are no similar structures in Latin America. influence on decision-making, it does not have • International IFC and CAF standards are used for a majority vote on the Board of Directors and project and sponsor evaluations.
Cartagena Port. Image: Cartagena Port Asociation
9 Ibid.
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ACHIEVEMENTS
10
The FDN has worked to attract international financing for 4G infrastructure concessions and has promoted the use of innovative financial tools such as the issuing of bonds on international markets and investment funds from pension funds and insurance agencies. With the first eight projects that achieved financial closing of the 4G, the FDN managed to mobilize heterogeneous funding sources, in order to reduce risks, wherein 49% of the resources arose from local banks and 51% from international banks and pension and insurance funds.
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49% DOMESTIC BANKS
To finance 4G infrastructure, the FDN promoted the creation of three investment funds for 1.300 million dollars and four bond issues on international markets for 653 million dollars. These bonds won international awards from Latin Finance and IJ Global in 2016.
51%
INTERNATIONAL PRIVATE INVESTORS Finally, FDN currently has 1 trillion pesos in shared resources for supporting urban mobility, education, hydrocarbon and airport projects. This incentive seeks to make these projects sufficiently attractive for domestic and international private investors. 11
Girardot-Honda highway. Image: ANI
10 Financial Institution for National Development (2017). Presentation FDN leader in infrastructure development. Bogota. 11 Ministry of Transportation. Law 1682-2013. Accessed on October 26, 2017 from the Transportation Ministry
Website: https://bit.ly/2LoCl90
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3
Law 1508-2012: Public-Private Partnership Law
Innovation #3: PPP Law that protects the government and provides incentives for operator efficiency. In 1993, Colombia implemented a law for PPPs. However, this original version contained gaps and bad regulations that caused problems with delays and cost overruns during project execution. To remedy this, in 2012, the Congress of the Republic passed a new law, drafted with the best international experience from countries like Canada, Chile and Peru, that introduced profound changes that reduce the government’s vulnerability, creates transparency mechanisms and increases the responsibility of the public works concessionaires.
Changes introduced by Law 1508-2012: Public-Private Partnership Law
Previous Difficulties Projects were awarded with extremely basic designs, which generated cost overruns during construction.
Projects were awarded before complying with specific processes related to environmental permits and community negotiations.
There were no incentives for private companies to take the initiative to design projects.
Previously, advance payments were made that provided no incentive for the concession to act efficiently and generated cost overruns and a decrease in assets.
There were no limits on the government’s financial contributions.
Solutions SECURITY FOR THE GOVERNMENT
SECURITY FOR PUBLIC WORKS CONCESSIONAIRES AND THE GOVERNMENT
INCENTIVES FOR THE PRIVATE SECTOR
MORE RESPONSIBILITIES FOR CONCESSIONS
MORE RESPONSIBILITIES FOR CONCESSIONS
It was stipulated that only permits awarded would be for those projects evaluated as feasible and with more detailed designs, reducing margins for error and the government’s fiscal vulnerability.
Today, for permits to be awarded, these have to be concluded, as basic negotiations with communities have to have taken place.
Now, private companies can propose projects to the ANI which will fund them 100%. These are evaluated by the pertinent entities and are published so others can make better proposals. If another bidder makes a better bid, the first proponent is entitled to match it, guaranteeing process transparency.
Now, no advance payments are made; the concession holder must now build the project with its own resources and then the government contributes its part when the work is delivered and operational. The concession holder is not eligible to receive money from active tolls before the works are delivered in optimum conditions.
The government’s contribution is 20%.
highest
maximum
financial
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4
Law 1682-2013: Infrastructure Law
Innovation #4: Definitive solution for structural issues through regulation During project design and construction phases, there were three main elements that made project development processes difficult: land purchases, environmental licenses, and service transfers. Regulations at that time did not favor the expedite resolution of setbacks, which usually resulted in project paralysis. Law 1682/2013 made great progress toward resolving these structural issues.
Changes introduced by Law 1682-2013, also known as the Infrastructure Law.
Previous Difficulties
Solutions
When the government designated a property as public interest for the construction of a highway, it was not immediately delivered to the government. A series of legal processes and agreements had to be carried out with owners, and this could take several years.
LAND PURCHASES
Today, properties that are declared to be in the public interest for expropriation must be automatically delivered to the government by a judge. Negotiations with the owner move forward later on, but the work does not stop.
ENVIRONMENTAL LICENSES
Specific deadlines were established for performing studies and issuing permits (maximum six months). The requirement was also eliminated for projects that are complementary to or expansions of existing infrastructure.
Environmental authorities had no regulatory deadlines for performing studies and issuing permits, and the process could take years. All expansion works or completely new works required licenses.
There was no regulation defining who was required to pay for the relocation of public services: the service company or the builder of the highway. Therefore, negotiations were complex, and projects were delayed.
There were no mechanisms for conflict resolution. Litigation between contractors paralyzed the work.
RELOCATION OF SERVICE NETWORKS
CONFLICT RESOLUTION MECHANISMS
The party that is required to pay for the relocation was established. If the service network is installed before the highway to be expanded, the highway concession must pay. If the highway was built first and the network after, the service company must pay for the relocation.
In the event a bidder is not satisfied with changing conditions, it can take its complaint before a group of advisors belonging to the President of the Republic’s Transparency Department, which evaluates the case and offers recommendations. This Department is external to the infrastructure sector, in order to guarantee greater transparency and objectivity.
12 Mayor’s Office of Bogota, Law 1508-2012. Accessed on October 26, 2017 from the main Bogota Mayor’s Office. Website: https://bit.
ly/2uEbheJ
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Strides in Infrastructure Driven by ANI and FDN 4th generation toll road program (4G) Innovation #5: Wave of concessions with a new contractual methodology that bulletproofs the government and provides incentives for operators This program represents the implementation of all the aforementioned regulatory and methodological changes and is designed to achieve one main strategic objective:
To close the country’s infrastructure gap, with leading participation from domestic and international private actors in rehabilitation, construction, financing and operation of the new primary road infrastructure throughout the entire country.
Bogota-Villavicencio highway. Image: ANI
Infografía #1: Resumen del programa de Cuarta Generación de Concesiones Viales (4G)
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Fourth Generation Highways Barranquilla
Cover 7,000 Km. and represent over $50 trillion pesos in investment divided into
Sta. Marta
Cartagena
30 projects Cúcuta Bucaramanga Medellín Pereira
Bogotá
Armenia Villavicencio
Cali
Mocoa
4G program Toll road projects before the 4G program
Dual carriageways: over 1,370 km Total Km of tunnels: 125 km Kms of viaducts: 146 km 13 National Infrastructure Agency (2017). Fourth Generation Highway Maps. Bogota.
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13
This is the most ambitious investment program in the country’s history and the largest infrastructure construction program in Latin America. Its purpose is to rehabilitate and build close to 7,000 kilometers of roads, 1,400 of which will be dual carriageways, with an investment of close to 50 trillion pesos (approximately 17 billion dollars). 14 To define the fourth-generation highways, the program’s integral structuring was contracted out to six groups. Some 200,000 million pesos (approximately 60 million dollars) were invested, a new contracting scheme was developed with better-aligned incentives and standardized rules of the game, and projects were promoted internationally to find global developers with experience in concession execution and new funding sources. 15
Benefits of the program 16 • It will have a multiplying effect, as it will increase the GDP by 1.5% during the construction period. • It will increase potential long-term GDP growth by up to 0.7%. • It will reduce travel times by 30% and transportation costs by 20%. • Involves 24 of the country’s 32 departments. • It will create 118,000 new jobs during peak construction, equivalent to 1% of the national unemployment index. • It will produce environmental benefits from increased transport efficiency, to the tune of 15 trillion pesos (approximately 5 billion dollars), according to international CO2 ton prices.
Financial Innovations In 4G projects, companies that are awarded concessions must then ensure project financing with a combination of their own financial capacity and financing from debt. In general terms, 75% is from debt, and 25% from their own capital.
Corporation (Corporación Andina de Fomento). Entities such as Goldman Sachs, Credit Agricole NY Branch, Natixis NY Branch, Citi, Societé Generale NY Branch and Banco Sabadell are participating in the area of direct financing. Finally, bond issues have been led by Goldman The 4G program seeks 50 trillion pesos Sachs. 17 (approximately 17 billion dollars) in investment, a figure never before seen in the country and a Así mismo, con el fin de garantizar recursos great challenge both for the companies that para cubrir fallas de mercado y apalancar así need to raise the money and for the authorities las inversiones, el Gobierno decidió privatizar that need to innovate regulations in order to use la tercera empresa de generación de energía financial tools that have never been used before eléctrica más grande del país, ISAGEN, decisión in Colombia. Thanks to the changes, debt funds que despertó mucha polémica entre la opinión were created, and foreign infrastructure bonds pública, pero los cálculos demuestran que los were issued. beneficios que traerá la inversión de los recursos de la privatización en proyectos de infraestructura World-class financial entities currently participate son superiores para el país a los ingresos anuales in the investment fund, including Ashmore, que recibe el Estado por contar con ISAGEN como BTG Pactual and the Andean Development activo estatal. 14 National Infrastructure Agency (2016). Management Report 2011-2016. Bogota. p. 27. 15 Ibid. 16Ibid. p. 21.
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ACHIEVEMENTS As of May 2018, all 30 projects had been awarded. Twenty-one are in the construction stage and the remaining 9 are in pre-construction. Of these, 26 have proved their capacity for financing infrastructure projects to the ANI, and 15 have signed credit contracts (financial closing) for close to 18 trillion pesos, opening the way for them to begin work. The purpose of the 4G program is to rehabilitate 7,000 kilometers of highways and build 1,370 kilometers of dual carriageways, 141 tunnels and 1,300 viaducts.
Thanks to new mechanisms spearheaded by the ANI, in 2012, the annual construction of dual carriageways in the country increased by 230%, from 60 kilometers per year on average between 2000 and 2010 to an annual average of 200 kilometers between 2012 and 2017. Between 2011 and September 2017, Colombia has managed to build 1,457 kilometers of new carriageways through concessions, 1,240 of which are dual carriageways. 19
Construction of dual carriageways per year 2000-2010 60 kilometers
2010-2017 200 kilometers
La Cienaga viaduct, Cartagena. Image: Ministry of Transportation
18 National Infrastructure Agency (2017). Projects' Progress document. Bogota. 19 Ibid
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AN INCREASE OF
230%
A Revolution in Ports and Airports Airports In the period from 2011 to mid-2018, the government has invested approximately 5.1 trillion pesos (over 1.7 million dollars) between public and private investment, to improve the country’s airport infrastructure. Some 2.6 trillion dollars of public monies were invested in 63 airports in charge of the AEROCIVIL and air navigation systems. As regards concessions, the ANI has awarded seven contracts that include the country’s 16 main airports and, until mid-2018, investments of over 2.4 trillion pesos have been made. The country’s 16 most important airports have been modernized and expanded, and the El Dorado Airport, Colombia’s most important air station, has a completely new terminal with the capacity for receiving 40 million passengers a year. In 2016, 2017 and 2018, this airport was recognized by Skytrax as the best in South America in the World Airport Awards and it is the largest cargo airport in Latin America.
El Dorado airport, Bogota. Image: ANI 20 Aerocivil (2018). National Government invests COP 1.5 trillion on airport infrastructure. Accessed on January 22, 2018.
Website: https://bit.ly/2ofgNSA
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The results to date have been conclusive for improving the infrastructure of all the country’s airports, allowing a growth of over 110% in domestic passenger flows between 2009 and 2017, from 19 million to 35.6 million passengers a year.
El Dorado Airport, Colombia’s most important air station, has a completely new terminal with the capacity for receiving 40 million passengers a year. In 2016, 2017 and 2018, this airport was recognized by Skytrax as the best in South America in the World Airport Awards and it is the largest cargo airport in Latin America.
Passenger growth in Colombia
Year-on-year growth in the number of passengers passing through Colombia’s airports. 40.000.000 35.000.000 30.000.000 25.000.000 20.000.000 15.000.000 10.000.000
2009
2010
2011
2012
2013
2014
2015
2016
2017
16,26
20,19
21,58
24,72
28,63
30,96
34,13
35,77
35,66
21 Aerocivil (2016). Annual passengers statistics1992-2017. Accessed on October 23, 2017 from the Aerocivil.
Website: https://bit.ly/2zIvcyR
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21
Ports Between 2011 and 2015, the ANI quantified an investment of approximately 6 trillion pesos (approximately 2.2 million dollars) for the country’s ports. 19 projects are also being processed to the tune of 3.6 trillion pesos (approximately 1,257 million dollars). Finally, an investment of 2.3 trillion pesos (approximately 800 million dollars), in the port structure of 16 airports around the country is planned for the 2014 - 2018 period. 22 Port-level outcomes have been just as positive and compelling as airport-level outcomes. The country’s main ports have increased their capacities and their loading, unloading, storage and control procedures. The Port of Cartagena has been recognized on eight occasions as the best port in the Caribbean. In 2017, it was
recognized as the most efficient and in 2013, as the safest, according to the Caribbean Shipping Association (CSA).23 The national government has also allowed the construction of new terminals in the Buenaventura, Cartagena, the Gulf of Uraba, and the Guajira regions, and has promoted a navigability project for the Magdalena River. All the modernization, expansion, and construction of new terminals throughout the country have permitted over 67% growth in the cargo processed by the country’s ports between 2009 and 2017, going from 120 million to 205 million tons.
Contecar port, Cartagena. Image: Cartagena Port Asociation
22 Ibid. p. 62 and 87. 23 El Universal (2017). Cartagena, the most efficient port in the caribbean. Accessed on January 22, 2018 from the
El Universal website: https://bit.ly/2ySqf5B
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Growth of transported tons
Annual growth of tons transported through Colombian ports
120,4
147,7
168,3
176,7
183,0
184,7
198,6
201,8
205,2
Cartagena Port, Cartagena. Image: Cartagena Port Asociation Cartagena Port-(Sociedad Portuaria de Cartagena)
24 Superintendence of Port and Transportation (2016). Port traffic statistics. Accessed on October 23, 2017 from the
Transportation Superintendent’s Website: https://bit.ly/2MvUIJL
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24
Long-term planning of primary, secondary and tertiary highways 25
Intermodal Transport Master Plan (ITMP) Innovation #6: ong-term planning for the Colombian road infrastructure
Long-term planning and investment prioritization is elementary for guaranteeing constant progress in competitiveness levels. To do this, the government is currently working on the Intermodal Transportation Master Plan. This Plan represents the consolidation of the national-level primary highway infrastructure projects to be implemented until 2035, to close Colombia s infrastructure gaps. These projects were planned together with several stakeholders in the infrastructure sector, from national and regional governments and from the private sector. The Master Plan has been organized into modules. The first of these focuses on connecting the country’s 18 most important cities, which produce 85% of the country’s GDP. The second focuses on urban mobility, administration and management of logistical corridors, and the modernization of the regulations. The Master Plan is also used for analyzing national corridors, in order to maintain the coherence with multimodal principals and transportation cost savings. An annual investment of 10.5 trillion pesos (approximately 3.5 billion dollars) is required to complete the Plan by 2035. It seeks to promote international trade, reduce transportation costs, drive regional development, facilitate the presence of the government in regions where that presence is currently lacking, and achieve the highway service levels currently found in Mexico and Chile.
Plan information: 26
12,500
7,000
kilometers of primary highways
kilometers of integration roads
1,600
5,000
kilometers of railroads
kilometers of waterways
25 ANI (2016). Management report 2011-2016. Bogota. p. 105. 26 ITMP (2016). ITMP paper explanation. Bogota. P. 56-58.
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Development of road concessions in Colombia until 2035 Barranquilla
Contracted road network 2015
Riohacha
Santa Marta
Cartagena
Valledupar
Current road network 2015 Contracted road network 2015 Waterways
Sincelejo Montería
Cúcuta Bucaramanga
Arauca
Medellín Quibdó Manizales Pereira Armenia
Tunja
Yopal
Bogotá Ibagué
Buenaventura
Villavicencio
Cali Neiva San José del Guaviare
Popayán
Pasto Mocoa
Barranquilla
Santa Marta
Cartagena
Riohacha
Valledupar
Sincelejo Montería
Cúcuta
2035 ITMP network Current road network 2015 2015 contracted road network PMTI road projects Waterways
Bucaramanga
Arauca
Quibdó Pereira
Tunja
Manizales
Yopal
Armenia Ibagué Buenaventura Cali
Bogotá Villavicencio
Puerto Inírida
Neiva Popayán
San José del Guaviare Mitú
Pasto Mocoa
118
COLOMBIA HAS CHANGED
Puerto Carreño
Medellín
Regional Plans for Intermodal Transport Infrastructure 27
Innovation #7: Territorial planning and involvement for developing secondary and tertiary roads. together with their surrounding municipalities and governments. These plans must take into account variables related to productivity, environmental protection, ethnic communities, the territory’s economic purpose and road, air, waterway With this in mind, the national government be- and rail intermodality, when necessary. gan the process of planning and creating mechanisms that will empower regions to develop Regional plans guide the regions regarding the their infrastructure and created regional inter- development of their infrastructure over 10modal transportation infrastructure plans, which year periods, all with technical assistance from must be designed by each of the 32 Governors, the Transportation Ministry related to designs, prioritization and project financing. The private sector is revolutionizing Colombia’s infrastructure. But secondary and tertiary roads are another important sector, where financial participation by the authorities is fundamental.
Construction of the second Guandalay viaduct, Tolima. Image: ANI
27 Transportation Ministry. Interview at the Infrastructure Directorate on August 17, 2017. Bogota.
Gramalote, North of Santander. Image: Adaptation Fund.
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Social Housing Public Policy Homes for Colombian families The national government, within the framework of its objectives for reducing monetary and multidimensional poverty, unemployment, inequality and closing gaps, decided that one of the great sectors that needed to be empowered was the construction sector. This planned boost, through appropriate public policy, turns the sector into an important tool for economic growth and development. As well as being a great employer, the construction sector, with the right incentives, can also help accelerate the reduction of the country’s housing shortage, provide Colombians with decent housing, favor social mobility, reduce poverty and improve the standard of living of the most vulnerable families.
Diagnosis In Colombia, there are several factors that, during the second half of the twentieth century, considerably increased the housing shortage, which reached 3 million houses in 2005. These factors are as follows:
• The armed conflict that displaced hundreds of millions of Colombian and forced them to abandon their homes and move to urban centers to live in deplorable conditions. • The absence of a regulatory framework that would facilitate housing construction. • Assistance and aid policies for the most vulnerable citizens did not have sufficient scope and did not take into account the financial restrictions of lower income Colombians regarding savings, which meant they did not have access to loans. 28
28 Housing Ministry (2017). Housing Deputy Ministry Report. Bogota. p.1.
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Taking into account these factors, the national government proposed the design of a new public policy that involves:
1) Regulatory and institutional changes and 2) Designs for programs that use new financing tools that will give all Colombians, even the most vulnerable populations, access to new housing.
Gramalote, North of Santander. Image: Adaptation Fund.
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1
Regulatory and Institutional Changes
Law 1444-2011 and Law 1537-2012
Innovation # 8: New regulation that provides structural solutions for previous failures. The national government has proposed two main regulatory and institutional changes:
1 2
Law 1444-2011, through which the Ministry of Housing, Cities and Territory was created to achieve the institutional independence required for formulating, adopting, directing, coordinating, and implementing public policy, plans and projects related to the country’s planned territorial and urban development; the consolidation of its system of cities, with efficient and sustainable soil use patterns, taking into account housing access and financing conditions; and the provision of public utilities including drinking water and basic sanitation. 29
Law 1537-2012, which seeks to modernize the regulatory framework, promote the construction of social and priority housing, and facilitate access to new housing for the country’s most vulnerable families through the following obligations and mechanisms: 30 • Institutional responsibilities and interactions between national and territorial institutions are defined in terms of resource transfers, land, public utilities, technical assistance and studies. • Guidelines for joint work with the private sector are established in relation to topics including construction processes, subsidy transfers and financing for citizen beneficiaries through private banks.
29 Bogota Mayoralty. Law 1444. Accessed on August 22, 2017, from the Bogota Mayor’s Office Website https: bit.ly 2L1QbSy 30 Bogota Mayoralty. Law 1537. Accessed on August 22, 2017, from the Bogota Mayor’s Office Website: https: bit.ly 2z1 Usk
Foto: Ministerio de Vivienda
2
Design of a New Public Policy and Innovative Programs
The aforementioned regulatory and institutional changes create solid foundations that permitted the design and implementation of a new housing policy launched by the national government in 2012. This policy was designed to be comprehensive and includes programs that target populations with diverse capacities for savings and access to credit, including populations in extreme poverty, victims of the armed conflict, victims of natural disasters and persons with monthly incomes of up to 2,000 dollars.
New Housing Access Programs Innovation #9: Comprehensive program providing all Colombians with access to new housing. The goal of this policy is to promote the social mobility of low-income individuals, reduce the vulnerability of the middle class, contribute to the creation of home equity, promote GDP growth, and reduce unemployment through the construction sector. The following are the programs designed and implemented by the national government:
Summary of the programs implemented for promoting the construction of social housing. Program Free housing
“Mi casa ya para ahorradores” (“My home now for savers”)
“Mi casa ya cuota inicial” (“My home now, down payment”)
Interest rate coverage
Interest rate subsidies for housing
Mechanism
Supply
• Prove income of up to two minimum monthly wages, approximately 500 dollars. A subsidy of 20 to 30 • The cost of the new house must not be greater than an minimum wages is amount equal to 70 minimum wages, or approximately 72,000 homes began under this assigned, approximately 17,000 dollars. mode, 58,000 of which have 7,000 dollars, and five been completed. points of the interest rate • Have saved 5% of the cost of the house. are covered for seven • Not have benefitted from housing subsidies. years. • Not be a homeowner. • Prove income of up to four minimum monthly wages, or A subsidy of 20 to 30 approximately 1,000 dollars. minimum wages is • The cost of the new home must not be greater than an assigned, approximately amount equal to 135 minimum wages, or approximately There are 91,577 quotas. To date, 32,000 have been 7,000 dollars, and five 34,000 dollars. assigned. points of the interest rate • Not be a homeowner. are covered for seven • Not have benefitted from housing subsidies. years. • Prove income of up to eight minimum monthly wages, or approximately 2,000 dollars. Five points of the interest • The cost of the new home must not be greater than an 188,000 subsidies have been are covered for seven amount equal to 135 minimum wages, or approximately assigned as of May 2018. 34 thousand dollars. years. • Not have benefitted from interest rate subsidies.
2.5 percentage points are covered for seven years.
Source: Ministry of Housing, Cities and Territory.
124
Conditions
Be a victim of forced displacement, natural disasters, The construction of 133,000 Housing is completely zones with risks that are not subject to mitigation, or a free houses has begun, 109,000 free participant in programs for overcoming extreme poverty. of which have been completed.
COLOMBIA HAS CHANGED
Families that wish to buy housing and have income Between 2016 and May 2018, equivalent to between 135 and 335 minimum wages, from 47,000 subsidies have been 34,000 to 85,000 dollars. assigned.
Innovative elements of this policy and its programs31 • Fiduciaries manage the resources destined for the programs in order to guarantee efficiency, agility and transparency. • The target population is divided into segments and five programs are designed, the benefits and conditions of which vary according to the income of the beneficiary households. This segmentation arises from studies carried out by the Inter-American Development Bank (IDB). • Experiences from the Brazilian free housing model were applied to the Colombian program in order to meet the needs of the country’s most vulnerable populations.
ACHIEVEMENTS Since 2010, the national government has invested over 7.7 trillion pesos, the equivalent of over 2.6 billion dollars, to incentivize the construction of priority and social housing in the country. As of May 2018, this has permitted the construction of over 618,000 homes through the five programs mentioned above (plus approximately 85,000 homes under programs prior to 2012), to protect the vulnerable middle class and reduce poverty and the housing shortage. In general, great progress has been made in the construction of homes around the country. Since 2010, 1.75 million homes have been constructed, benefiting 5 million Colombians, and Colombia’s housing shortage was reduced from 10% to 5%. The annual average number of homes built grew from 165,000 units in 2010 to 227,000 in 2017. 32
• The “Mi casa ya” (“My house now”) program operates under free market rules. Beneficiaries select a home on the private real estate market, and that home must meet certain cost-related conditions. • Households interested in receiving subsidies from “Mi casa ya” do not have to undergo an application process. There is a platform that verifies compliance with conditions in real time and provides them with information of the financial institutions they can access. This arises from OECD recommendations on digital government.
31 Ibid. P. 6. 32 Presidency of the Republic. (2018). Colombia exeeded the one million houses goal. Accessed on June 20, 2018 from
the news website of the Office of the President of the Republic : https://bit.ly/2L29DyK
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Web technologies. Image: SENA
126
COLOMBIA HAS CHANGED
Information and Communication Technologies (ICT) Colombia’s Fourth Industrial Revolution We are undergoing a fourth industrial revolution due to the accelerated development of information and communication technologies, which has radically changed the way human beings interact during their daily lives. This revolution facilitates decision-making and connectivity between individuals, companies and the government and, therefore, increases the country’s competitiveness and productivity and citizens’ standards of living. In Colombia, national development plans have identified, since 2010, the need to empower this revolution with the following goals: 1) To help insert the country into global development trends and production chains, and 2) to help close social gaps. All of this has been undertaken as an approach that stated: “The market as far as possible, the government whenever necessary”. 33 To achieve both goals, the national government decided that long-term government policies were required, that would not be vulnerable to changes in the government and that would guarantee the rapid and sustainable development of information and communications technologies in Colombia.
Diagnosis In 2009, the ICT outlook in Colombia was extremely challenging, but it was also clear that important progress could be made quickly, and that the promotion of this sector would bring significant changes for society.
Image: Ministry of ICT
33 DNP (2010). National Development Plan 2010-2014. Bogota. p. 1.
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2010 Outlook • Only 3.3 million Internet subscribers, 7.3% penetration. 34 • Only 2.2 million broadband subscribes, 4.8% penetration. 35 • Only 15% of homes had a connection to the Internet. 36 • 14.70 computers per 100 inhabitants (2009 figures). 37 • Only 287 of 1,122 municipalities had a fiber-optic connection to the Internet and smartphone penetration was close to zero. 38 • Only 1,000 software companies in Colombia. 39
Regulatory and institutional changes This outlook encouraged the national government to consolidate the role of Law 1341-2009 as the catalyzing legal framework the country needed to design and implement policy that would drive Colombia’s rapid inclusion in global trends related to the adoption of new information and communications technologies.
Law 1341-2009: Comprehensive reformulation of regulation and institutions Innovation #10: Complete, updated and comprehensive regulatory and institutional framework Law 1341-2009 established the regulations, institutions and guiding principles that served as the foundations for the great government plans and programs in the information and communications technology sector.
Image: Ministry of ICT
34 ICT Ministry (2017). Internet Statistics. Accessed on October 9, 2017 from the ICT Ministry Website: https://bitly/2aMnYbL 35 Ibid. 36 DANE (2010). Basic ICT Statistics. Accessed on 9 October 2017 from the website containing basic ICT indicators for Homes, DANE
historical data: https://bit.ly/2JthD61
37 National Plannning Department (2010). National Development Plan 2010-2014. Bogota. p. 153. 38 ICT Ministry (2017). Meeting at the Minister’s Office on 27-10-2017. Bogota. 39 Ibid.
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Main elements of Law 1341:40 • It defines the concepts of information and • The National Spectrum Agency is created, communications technologies for the first responsible for the strategic planning of the use time and introduces their importance for the of the radio spectrum, and for oversight and Colombian Government and Law. control throughout Colombia’s territory. • The name and the functions of the Ministry • The Information and Communications of Communications are changed to the Technologies Fund is created, allowing the Ministry of Information and Communications financing of communications infrastructure Technologies (MinTIC, in Spanish), in order to expansion projects, through a periodical make its functions align with new technological obligatory contribution by service providers. developments and their promotion in Colombia. • A vision of the free market as the cross-cutting axis for a national communications policy • A Communications Regulation Commission was consolidated, eliminating subsidies and is created, with a strong technical and liberalizing private sector competition and independent approach that improves the investment, with government intervention social impact of the ICT sector and tends to its to expand infrastructure and resolve market needs. failures.
In light of the sector outlook in 2010, the national government decided that government interventions should be made according to two guiding principles:
1)
Building and expanding infrastructure and installed capacity.
2)
Private enterprise promotion programs for incentivizing invention and innovation in creative and software industries.
40 ICT Ministry. Law 1341. Accessed on October 9, 2017 from the ICT Ministry Website: https://bit.ly/1ELbqwh
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Line 1: Broadening of existing infrastructure and capacity Plan Vive Digital para la Gente (Digital Living for People Plan) Innovation # 11: Government intervention for accelerated expansion of infrastructure and access for Colombians In the context of the Plan Vive Digital para la Gente (Digital Living for the People), the Government of Colombia began a crusade throughout the country’s territory to extend Internet access by installing hundreds of kilometers of fiber-optic cables and microwave transmission equipment in the most remote areas.
a shift from 24 children per terminal to 4. The goal for the end of 2018 is to reach two children per terminal. The same policy was adopted for the country’s teachers and currently one in three teachers in Colombia has a portable computer. 42
• Access for disabled populations: Since Thanks to this investment, Colombia went from 2014, 310,773 Jaws and Magic software making use of only 3 underwater fiber-optic licenses have been downloaded, allowing cables in 2010 to using 10 cables of this type in the population with visual limitations to use 2018 -far above the Latin American average-, computers and browse the Internet. Colombia thus guaranteeing connectivity and high data is the first country to provide this license for transmission capacities. Therefore, with an free. The Relay Center was also implemented, investment of half a trillion pesos (approximately allowing persons with hearing disabilities 170 million dollars) the country went from having to communicate more easily thanks to a only 287 municipalities connected by fiber-optic technological platform that has on-line sign cable to having 98% connected. The missing language interpreters available. municipalities are in remote departments such as Choco, Guainia, Guaviare and Vaupes; these • Free Wi-Fi zones for the public: To provide are, however, connected by microwave. 41 mass Internet access, the government deployed 1000 public access Wi-Fi zones in To guarantee ICT access for all Colombians, the high concurrence urban areas, such as parks, Government implemented several direct and marketplaces, transportation terminals, indirect measures with a view to closing the gap emblematic or tourist locations. This goal was for accessing devices such as computers and achieved, and, to date, 1,023 zones have been mobile phones at a national level. These include deployed in 363 municipalities. the following: • Vive Digital points or kiosks: 894 community • Direct intervention: The “One Laptop Per Internet access points were installed in Child” policy was adopted in Colombia, with low-income urban environments with the the delivery of 2.5 million machines with necessary infrastructure for citizens to have programmed educational content, allowing access to the Internet, training in the use of ICTs,
41 ICT Ministry (2017). Meeting at the Minister’s Office on 27-10-2017. Bogota. 42 Ibid. 43 ICT Ministry (2017). General Results Report. Bogota.
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entertainment and for carrying out government • Mid and low-end computers in Colombia are exempt from the Value Added Tax (VAT), proceedings. In turn, 6,989 kiosks were taken to making Colombia the country with the the rural populations of 936 municipalities where cheapest computers in Latin America. citizens can become digitally literate, access government services and processes and optimize their daily activities 44 45 • Mid and low-end mobile phones are VAT-exempt. At Vive Digital points and kiosks, 628,972 people have been trained in the basic use of technology, • 2.75 million homes from social strata 1 and 2 as well as in advanced commercial and productive have their Internet costs subsidized. topics, including. 46 • Indirect interventions: : Tax and customs modifications were made in order to reduce costs to import and acquire mobile phones, computers and tablets. These included the following: 47
• By June 2017, 27.9 million broadband connections were on record.
• Zero tariffs for importing computers and tablets.
Since 2014
628,972 310,773 people have been trained in the basic use of ICT
Jaws and Magic software licenses have been downloaded
Falta traducción
2.5 million
machines were delivered with programmed educational content
1,023
WiFi zones have been deployed in 363 municipalities
44 ICT Ministry (2017). Puntos Vive Digital. Accessed on November 11, 2017 from the ICT Ministry digital ecosystem Website: https://bit.
ly/1CksUwG
45 ICT Ministry (2017). Kioscos Vive Digital. Accessed on November 11, 2017 from the ICT Ministry digital ecosystem Website: https://bit.
ly/1CksUwG
46 Ibid.
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OVERALL ACHIEVEMENTS Summary of the programs implemented to drive social housing construction. Overall outlook, 2010
Overall outlook, 2015-2017
2.2 million broadband Internet subscribers, 4.8% 27.9 million broadband Internet subscribers, 56.5% penetration. penetration. (2017) 15% of homes had an Internet connection.
26% of homes had a computer (DANE 2010).
50% of homes had an Internet connection. (DANE 2017) 45% of homes have a computer or laptop or tablet (DANE 2016). 84% of homes have a computer or laptop or tablet or smartphone (Great ICT Survey-2017).
287 of 1,122 municipalities connected to the Internet by 98% of the country’s municipalities connected by fiberfiber-optic cable. optics (2017). Close to zero smartphone penetration.
Image: Ministry of ICT
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4G Coverage for 778 municipalities and close to 100% smartphone penetration (2017).
Axis 2: Promotion of private entrepreneurship Implementation of SME promotion programs Innovation #12: Comprehensive strategy for promoting entrepreneurship and training human capital, to incentivize invention and innovation in the creative and software industries
While Colombia was building and expanding its infrastructure and providing ICT access to the entire population, the government began several technology appropriation programs to facilitate and promote the development of applications, software and digital content in Colombia. These promotion programs were divided into three main lines:
a. Invention
of digital applications: 47 The APPS.CO incentive was implemented, which promotes and leverages the creation of businesses that use ICTs, focusing specifically on mobile application, software and content development. APPS.CO works by assisting teams of entrepreneurs with business discovery, growth, consolidation and training, and with identifying the potential of their projects. It also issues invitations to attract projects and finance their development and works with the private sector, so entrepreneurs can build solutions for their needs and problems. Thanks to APPS.CO, 17 Colombian startups like Tappsi® and 1DOC3® found great international success.
b. Software
industry: The government introduced the following measures to promote software development in Colombia:
• Tax incentives: CONPES 3834, presented in the section on Science, Technology and Innovation in Chapter 1, and the 2016 Tax Reform provide the guidelines for tax deductions for highly innovative companies, including tax incentives like VAT exemptions, non-taxable income or occasional earnings and exempt income due to new software. • International trade fairs: The ICT Ministry, together with ProColombia, the government agency responsible for promoting Colombian exports, annually organizes trade fairs like SOFTIC, which, in 2017, raised 158 million dollars in sales, and 70 million dollars in expected business. 49 • Centers of Excellence in Innovation: SThese are spaces created for the development of innovative ICT solutions and for strengthening new technologies and human capital that will add value to the country’s strategic sectors. These centers create synergies thanks to interaction between the country’s most
47 ICT Ministry (2017). Meeting at the Minister’s Office on 27-10-2017. Bogota. 48 La República (2017). Colombia 4.0, la cumbre de la industria digital, cerró con más de 62.000 participantes. Accessed on November 11,
2017 from La Republica’s Website
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important companies and institutions and the human capital -trained experts in ICTsat the centers. Companies and institutions such as Nutresa, Bancolombia, Microsoft, Intel, Universidad de los Andes, Universidad Javeriana and the government itself sponsor these centers, which focus on biotech, the Internet of Things, big data and data analytics and artificial intelligence.50 • Human capital: To help reduce the human capital gap in Engineering and ICTs that the sector currently presents in Colombia, the ICT Ministry began a program providing 250 scholarships a year for Ph.D. studies within the countries, and almost 9,000 scholarships for financing 100% of technical and technological studies. Also, thanks to an agreement with the International Labor Organization (ILO), 10,000 scholarships were granted for technical job studies in ICT related programs. 51
c. Creative industry: As well as promoting the
Colombian software industry, the government also promotes the development of animation, video games and digital music. The following strategies were designed with this in mind: 51
• Vive Labs: The government built 37 laboratories in the country’s most important urban centers, where technological tools and technical training are provided for the performance of digital entrepreneurship activities centered on digital content and applications. Thanks to these labs, almost 200 items of digital content have been generated and over 22,000 people have been trained in animation, programming, web page design, video games, robotics, entrepreneurship, interface design, 3D animation, application and digital content, among others.
49 Ibid.
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• Invitations to develop digital content: The Crea Digital invitation to participate has been ongoing since 2012. This invitation finances the development of video games, digital books and cultural and educational Transmedia content. Over 12 billion pesos have been awarded through this program and over 100 companies have benefitted. Additionally, in 2016 an invitation to participate called “Connecting the Video Game Industry” that promoted the transfer of knowledge between companies, benefiting 12 video game development companies. In 2017, a New Media invitation to participate was opened that promoted the development of co-productions between Colombian and Canadian companies. • International trade fairs: Every year, Colombia hosts Colombia 4.0, the second largest digital content trade fair on the continent. In 2017, 62,000 individuals, 80 buyers from 24 countries, and speakers from 78 nationalities attended. • Tax benefits: Within the framework of the 2016 tax reform, software for developing digital content, and virtual courses that strengthen skills for creating this content were exempt from paying VAT. This tax exclusion also covers Cloud Computing, Hosting and remote equipment and software maintenance services. • Internationalization: Thanks to an alliance between MinTIC and ProColombia, the country’s creative digital industries now are now able to be present at the sector’s most important international events. Colombian companies have participated at MIPCOM, Kidscreen, the Game Developers Conference and Gamescom, among others.
Currently the Colombian software and digital content industry creates over 120,000 jobs and almost 4,500 million dollars in economic activity. From 1,000 companies in 2010, there were 6,000 by 2017, which create digital animation and entertainment content for global companies like Fox and Disney.52
Image: Ministry of ICT
50 ICT Ministry (2017). General Results Report. Bogota. Meeting at the Minister’s Office on 27-10-2017. Bogota. 51 ICT Ministry (2017). General Results Report. Bogota. 52 ICT Ministry (2017). General Results Report. Bogota. Meeting at the Minister’s Office on 27-10-2017. Bogota.
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Digital government and security
The government’s strategy for the ICT sector does not only promote these technologies on a national level. Within the framework of Colombia’s inclusion in the OECD, the government has made giant steps in the areas of digital government and security.
Digital Government53 Innovation #13: Transparent and citizen-friendly digital government
Phase 1 (2002-2008) and Phase 2 (2008-2014):
Current day, 2014-2020 phase:
Since 2000, Colombia has made great efforts to digitize the interactions between institutions and citizens. The first regulatory frameworks were approved in 2000, and, between 2002 and 2008, the national government built its first virtual architecture with web portals for all its institutions, both national and regional, as well as a portal for public procurement.
The Digital Government Policy was consolidated in order to continue on the quest to use and take advantage of information and communications technologies to build a more efficient, transparent and participatory government through ICTs. Its main goal is to provide citizens with high-quality on-line services, promote citizen empowerment and government collaboration, and find different ways for making the management of public entities optimum, secure and open to citizens.
Between 2008 and 2014, the government consolidated its regulatory policies on electronic and digital signatures, access to information, personal information protection regulations, and a broadened and more structured perspective of the use of ICTs. This approach, besides helping to close nationwide gaps in the access to new technologies, brings together citizens and the government. This approach makes progress with digitizing proceedings and services, facilitating interoperability and procedural chains to make a positive impact on services provided to citizens. This was made possible by the Gobierno en Línea (OnLine Government) strategy, which stipulated the goals and hierarchical and crosscutting principles, so all public entities could begin their digital transformation. Actualidad, fase 2014-2020:
55
Institutional strengthening: In order to strengthen the sustainability and development of this policy in the long-term, a multi-level governance structure was set up that includes the Directorate of Digital Government at the ICT Ministry as the head of the policy, which articulates its task with ICT Directorates at national and territorial government levels, autonomous bodies and control entities. The National Digital and Government Information Commission was created to coordinate all the government information systems and the effectiveness of the government information policy management nationally. Based on the policy’s main objective and the creation of an appropriate governance structure, the national government implemented nine initiatives that have provided results in international studies and evaluations.
53 Ibid. 54 OECD (2017). Impact Evaluation of the Digital Government of Colombia. Accessed on November 11, 2017 from the OECD digital
government portal. p. 19: https://bit.ly/2LqPEpn
55 Ibid. p. 23.
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Today Colombia is a regional and global example of digital government Initiatives: • Open Government Information • Glass Urn • Digital Citizen Services
76%
of Colombians that interact with public entities or complete formalities do so using electronic channels.
• No more lines • Co-financing • Territorial Platforms • Path of Excellence • Electronic Government Excellence Program • Quality excellence seals
Outcomes have been very positive as regards citizen acceptance. Currently, 76% of Colombians that interact with public entities or complete formalities do so using electronic channels. Some 80% of users felt that they saved time by using electronic channels for formalities with public entities, and 74% indicated that they saved money by using electronic channels for interacting with public entities.
74%
indicated that they saved money by using electronic channels for interacting with public entities.
80%
of users felt that they saved time by using electronic channels for formalities with public entities.
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Achievements of the Digital Government Policy 56 • According to the United Nations (UN), Colombia presents one of the world's best rates of on-line service use and electronic participation. • The Colombian open information initiative has been recognized around the world as improving the available volume of public information and development and innovation initiatives. The Colombian Government’s Information Portal has over 6,000 open datasets from close to 800 public entities. • Regarding open government information, Colombia has been ranked fourth amongst OECD countries. It is also ranked 14th in the world on the Open Data Index, created by the Open Knowledge Foundation. • The Quality Excellence Seal, that certifies the quality of the digital products that public entities make available to citizens, has certified 364 sets of open information and 2 on-line processes with this seal. At the end of the 2014-2018 term in office, close to 700 digital products will bear this seal of quality.
Open-Useful-Reusable Government Data Index (OURdata), 2017 Availability
Accessibility
Government support for reuse
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1
56 ICT Ministry (2017). Great Survey ICT 2017. Accessed on November 20, 2017 from the ICT Ministry’s basic indicators for ICTs at home: https://bit.ly/2MyRGnR
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Digital Security Innovation #14: Incentives for a new secure digital economy in Colombia Over recent years work has been undertaken for strengthen digital security. Colombia was one of the first countries in the region to have a national cyber security and cyber-defense policy, contained in CONPES document 3701 of 2011.
For this reason, in 2016 MinTIC spearheaded the development of the National Digital Security policy, through CONPES 3854 of 2016, a document that incorporates OECD guidance and recommendations related to digital security risk management.
However, studies including those performed by ASOBANCARIA and MinTIC, have highlighted that one of the main barriers to accessing services over electronic channels is precisely a mistrust of these channels and of the digital environment in general.
This Policy seeks to strengthen the capacities of Colombian citizens for identifying, managing, treating and mitigating digital security risks that may arise while performing activities in digital environments.
It is evident that such barriers and "digital uncertainties" are a threat to the digitization process of different sectors of the economy and, of course, to the growth and fulfillment of goals related to the country’s social and economic prosperity.
A secure digital environment will guarantee economic and social prosperity, as its purpose is that citizens will stop being afraid to make purchases, and carry out bank and public service transactions on-line; thus, contributing to the country’s economic growth and confidence.
Image: Ministry of ICT
To achieve this, actions have been defined along five lines: 57
1 2 3 4 5
Clear and risk management-based institutional digital security framework. The creation of conditions for multiple stakeholders to manage digital security risks in their socio-economic activities and to build trust in the use of the digital environment. The strengthening of national and transnational digital security of individuals and the government, with a risk management approach. The strengthening of the defense and sovereignty of the digital environment, with a risk management approach.
The promotion of national and international cooperation, collaboration and assistance around digital security
The implementation of the Digital Security CONPES will have a positive effect on Colombia’s economy, as it will create approximately 307,000 jobs through 2020, according to the calculations of the Colombian Communications Regulatory Commission (CRC)58 with support from the National Planning Department’s (DNP, in Spanish) Directorate for Economic Studies.
the Communications Regulatory Commission, the articulating entity for the ICT sector with the OECD, received a positive evaluation of the reforms implemented and that same year Colombia was accepted by the committee.59
International Cooperation: MinTIC currently provides technical assistance on basic digital service policies to Argentina and Mesoamerican countries, specifically with regards Strategic OECD and International Cooperation Apps. It also provides assistance to the Dominican Since 2013, the ICT Ministry has worked extensively Republic on its Vive Digital Plan and to Honduras to carry out the evaluations and implement the on its Digital Government Strategy. 60 changes required for Colombia to be accepted by the OECD Digital Economy Policy Committee. At the beginning of 2016, the ICT Ministry and 57 Ibid. 58 National Planning Department (2017). CONPES 3854. Accessed on November 20, 2017 from the regulatory portal of the Bogota Chamber of Commerce: http://bibliotecadigital.ccb.org.co/handle/11520/14856 59 Comission for Communications Regulation (2016). ITC Sector ad portas of entering OECD. Accessed on November 20, 2016 from the CRC news Website: https://bit.ly/2L29zPx 60 ICT Ministry (2017). Report: Most important international cooperation agreements. Bogota.
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3
Environmental Protection and Sustainability
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Chiribiquete National Park, Guaviare. Image: César David Martínez
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Healthly environment for future generations Colombia as a regional leader in sustainability and environmental protection More and more, scientific studies demonstrate the unequivocal importance of ensuring that economic development goes hand in hand with strategies and policies that favor long-term environmental sustainability and a reduction of the environmental impact of economic activities. The increase in recent years of the intensity and volatility of climate phenomena provides evidence that human activity is altering the environmental balance. It has therefore become a priority on the global agenda for all nations, private sector actors, and other interest groups to begin working together to make human development activities more environmentally friendly, thus protecting natural resources and the health of the planet for future generations.
“
Our world faces a true planetary emergency. I know the phrase sounds shrill, and I know it's a challenge to the moral imagination. Al Gore
To this end, the nations of the world have worked together in dialogue to create mechanisms and multilateral agreements such as the Rio de Janeiro agreement, the yoto Protocol, the Doha Round, COP21,1 and the Sustainable Development Goals (SDG), which seek to gear domestic policies towards environmental protection, encouraging sustainable development and reducing greenhouse gas emissions that are causing global warming. Given that Colombia is included in the list of the 17 megadiverse countries of the planet (a ranking produced by the non-governmental organization Conservation International), that Colombia is the country with the third-largest water reserves in the world according to the Global Water Partnership (GWP), and that Colombia is one of the few countries located on the equator, the national government of Colombia prioritized environmental protection in 2010 as an organizing principle for action and the design of public policy, making it a crosscutting issue in national development policies. In 2014, the 2014-2018 National Development Plan introduced and developed the concept of Green Growth to further consolidate the basis for economic growth in Colombia through an approach that promotes sustainable development. It seeks to guarantee the wellbeing of citizens, while ensuring that the natural ecosystems that supply the resources for that development and receive the impact of economic activities maintain their ability to recover. 2
“
1 21 Sessions of the Conference of the Parties to the United Nations Framework Convention on Climate Change. 2 National Planning Department (2014). 2014-2018 National Development Plan, Bogota, p. 663.
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San Antonio water fall, Cauca. Image: Marca País
The need to begin formalizing changes in the philosophy of government to ensure green growth and sustainable development was not born exclusively from Colombia's unique biodiversity but also from its fragility. There is a high likelihood that Colombia’s economic growth is not sustainable, among other reasons, due to the high vulnerability of its population and urban centers to the effects of climate change. This fact is evidenced in the results of the World Bank's adjusted net savings indicator, used as a measure of the sustainability of national economies, which shows the true saving rate of an economy after considering the depletion of natural resources and damages caused by pollution. This indicator shows that the total value of Colombia’s resources is being exhausted. 3
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Vision Green Growth represents a great opportunity for Colombia to use its resources more efficiency while it improves productivity, innovation and competitiveness. It guides the country's efforts towards important cultural and habit changes. In order to make this vision tangible and operational, the national government set the following mid-term goals within the 2014-2018 National Development Plan, which supported the implementation of the SDGs proposed in the 2030 Agenda for Sustainable Development: 4
Although these objectives were set in within the framework of Green Growth, the structural origin of this new vision and the activation of the environmental line of action that cuts across all the actions of the state can be traced back to a critical episode that the country experienced during the extreme rains of and occasioned by La Ni a. From that moment, Colombia became aware of the urgent need to take action to address natural disasters. This environmental crisis caused more losses than any other natural disaster in the history of the country, producing damages in % of
1.
Advancing towards sustainable, low-carbon growth.
2.
Protecting and ensuring the sustainable use of natural capital and improving environmental quality and governance.
3.
Achieving resilient growth and reducing vulnerability to disaster risk and the effects of climate change.
municipalities and leaving four million people affected by floods, landslides, overflowing rivers, and broken dams. The heavy damages produced by the phenomenon across the nation catalyzed political will towards the current reformist position and drove a fundamental change in the pillars that support environmental policy in Colombia. At the same time, public policymakers were formalized and made aware of the reality of global warming and its effects, which will only grow in intensity. 5
3 Ibid. P. 655. 4 National Planning Department (2014). 2014-2018 National Development Plan, Bogota, p. 665. 5 Adaptation Fund (2015). Executive Summary of the Mid-Term Evaluation of the reconstruction process undertaken by the Adaptation Fund, Bogota, p. 1.
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Structural changes to regulations and institutions This new drive towards reform materialized in a profound institutional and regulatory reorganization from 2010 to 2012. These changes endowed the state with the technical and administrative capacity to address Colombia’s vulnerability to the effects of global warming. The crisis occasioned by La Niña made it evident that Colombia was not taking the actions necessary to adapt to climate change challenges, did not have an independent sector leader, and was not prepared to respond to
large-scale natural disasters. To address this, the government determined that the following measures should be taken: 1) create an institution to promote Colombia’s adaptation to climate change risks, 2) make the Ministry of Environment independent so that it could become the sector leader that Colombia needed, 3) profoundly reform Disaster Risk Management, and 4) create an institution that monitors and reduces the environmental impact of large investment projects. The following laws and decrees operationalized these changes:
Regulatory and institutional changes implemented by the national government
Law/Decree
Function
Decree 4819
2010 Decree 3570
2011 Decree 3573
2011 Law 1523
2012
The Climate Change Adaptation Fund is created. 6
The Ministry of Environment and Sustainable Development becomes an independent ministry. 7
The National Agency of Environmental Licenses is created.8
The National Policy for Disaster Risk Management is created along with the National System for Disaster Risk Management. 9
UNGRD (2017) Decree No. 4819-2010. Accessed on the UNGRD decree website on November 20, 2017: https://bit.ly/2uFKqip Ministry of Environment (2017). Decree No. 3570 -2011. Accessed on the Ministry of Environment and Sustainable Development website on November 20, 2017: https://bit.ly/2lt2Y0k 8 Senate of the Republic (2017). Decree No. 3573-2011. Accessed on website of the Secretariat of the Senate on November 20, 2017: https://bit.ly/2mlR4qa 9 IDEAM (2017). Law 1523-2012. Accessed on the IDEAM website on November 20, 2017: https://bit.ly/2Ar3VR5 6 7
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Decree No. 4819-2010: Creating the Climate Change Adaptation Fund Innovation #1: Recovering affected areas and ensuring long-term adaptation and resilience This institution arose as a response to the effects of La Niña in 2010 and 2011, to address this type of emergency with great technical capacity for execution, comprising the following main functions:10
1.
Provide solutions to infrastructure problems and vulnerabilities made evident by La Niña in 2010 and 2011 in the medium term. To perform this function, the fund worked jointly with regional authorities to identify their needs, arranged them by priority, structured projects, and began the construction of the new infrastructure to replace what had been destroyed or damaged, such as hospitals, schools, housing, transportation infrastructure, and aqueducts. All this was carried out through a climate change adaptation approach, built to withstand climate events such as La Niña in 2010-2011. The end goals are to be highly resilient and for infrastructure to be adapted for risk reduction. 11
2.
Vulnerability and threat analyses. All projects implemented by the Adaptation Fund are structured according to rigorous vulnerability and threat studies to ensure their resilience and sustainability.
3.
Reduce climate change risks and ensure the nation's long-term fiscal stability. This function consists of structuring and executing high-impact risk-mitigating major projects that require large investments and
great capacity for execution, projects that are structured according to deep and complex risk management studies that are the first of their kind in Colombia. Currently, the fund’s major mitigation projects are La Mojana, the relocation of Gramalote, Jarillón de Cali, and the Canal Dique project in Cartagena. Together, they are worth almost 1.6 billion pesos or approximately 500 million dollars.
Multidimensional approach The fund executes mitigation projects through infrastructure, and it focuses on the mitigation of environmental risks through establishing the boundaries of protected areas, watershed management plans, and a program of early meteorological warnings. It also strengthens communities through economic and social reactivation projects that are sustainable and resilient to future environmental crises and through educational projects for generating cultural changes to better address risks.12
10 Office of the Mayor of Bogota (2017). Decree No. 4819-2010. Accessed on the Office of the Mayor of Bogota’s regulations website on November 20, 2017: https://bit.ly/2Lp6Xas 11 Adaptation Fund (2015). Executive Summary of the Mid-Term Evaluation of the reconstruction process undertaken by the Adaptation Fund, Bogota, p. 2. 12 Ibid.
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In the future, the Adaptation Fund aims to continue working with the National Information System for Disaster Risk Management (SNGRD) to identify major climate change risks that could affect the country's fiscal sustainability, generating the relevant studies, and executing projects to mitigate those risks.
International cooperation The fund was structured based on models of similar institutions developed in Japan and on risk assessment models from the Netherlands based on joint work through collaborative and cooperative schemes. Colombia’s Adaptation Fund has become a regional example. Ecuador and Peru have closely evaluated the model and Kenya has sent a delegation to learn more about the methodologies it applies.
Law No. 1523-2012: National Policy for Disaster Risk Management Innovation #2: Comprehensive and effective Disaster Risk Management policy As part of this public policy for environmental protection in Colombia and given the general shortcomings identified within the country after the La Niña phenomenon, the government determined that it was necessary to create an institutional framework13 to support the identification, management, and reduction of risks, one that would modernize the capacity of the nation’s institutions to respond appropriately to disasters. This new institutional framework came to life with the National Policy for Disaster Risk Management, approved through Law No. 1523-2012, which set a precedent for innovation in Latin America through the following functions: 14 • Provide a logical order and define the hierarchy of inter-institutional action for national and regional disaster risk management in Colombia, creating the National Information System for Disaster Risk Management and establishing the National Unit for Disaster Risk Management at the head of the system.
• Establish the general and specific objectives of the Disaster Risk Management policy. • Specify the responsibility for risk management that belongs to ministries, institutions, municipalities, cities, and regional governments. • Specify planning instruments and particular actions to be undertaken by national institutions with regards to the integration of regional governments and their secretariats. Regional governments must have their own local risk and disaster management plans. • Establish which information systems are to operate at the national and regional levels. • Establish funding mechanisms for disaster risk management, requiring national, departmental, and municipal funds to be established for cities with a population of more than 250,000 people. • Define concepts and procedures for disaster situations.
13 Office of the Mayor Bogota (2017). Accessed on the Office of the Mayor of Bogota’s regulations website on November 20, 2017: https://bit.ly/1FJwpT4 14 Ibid.
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El Cocuy National Park, Boyacá. Image: David Pérez
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Image: Marca PaĂs
15 The Constitutional Block is the method used by Colombia to uphold the force of law of regulations passed within Colombia and in the international community, in order to maintain the coherence of national and international standards that the country subscribes to, ensuring that all commitments are upheld both inside and outside the borders of Colombia. To learn the official legal definition, see: https://bit.ly/2L0nxBf 16 Ibid.
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The National Policy for Disaster Risk Management was designed in accordance with the parameters of the Hyogo Framework for Action 2005-2015, the international framework on Building the Resilience of Nations and Communities to Disasters, which establishes the terms and characteristics that each nation’s disaster risk management policies should follow at the global level. To complement this policy, new laws and regulations were approved that strengthened key partners, such as volunteer and firefighting systems, and created the National Unit for Disaster Risk Management. All this promotes a harmonization between standards and regulations that guide actions and decision-making at national, local, and international levels.15
The disaster risk management policy’s main tools and institutions 16 The National Information System for Disaster Risk Management: A set of public, private, and community institutions, policies, standards, processes, resources, plans, strategies, instruments, and mechanisms that work in a coordinated fashion under the leadership of the National Unit for Disaster Risk Management. National Unit for Disaster Risk Management, created by Decree No. 4147-2011: Institution attached to the Presidency of the Republic that is endowed with the responsibility to manage the National Information System for Disaster Risk Management at national and regional levels, develop prevention and response plans and strategies, and implement information systems. 2015-2025 National Disaster Risk Management Plan: Concerted with 20 national ministries and institutions, the instrument of Law No. 1523 that defines the objectives, programs, actions, authorities, and budgets through which the processes of risk mapping, risk reduction, and disaster management are executed within the national development planning framework.
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Methodology and achievements 17 The National Unit for Disaster Risk Management (UNGRD) operates under the following structure in pursuit of three specific objectives: 1) Risk awareness: risks are identified, studies are conducted, and risks are subsequently monitored.
3) Disaster management process: response and recovery plans are prepared and carried out in affected areas when a disaster strikes.
2) Risk reduction: corrective and prospective interventions are carried out to prevent more risks from arising, and financial protection is also guaranteed through funds and financial protections for goods.
Acvhievements
18
• More than 5,400 corrective and prospective in- • We have the only Latin American system of tervention works have been built, ensuring that emergency logistics centers. In addition to the national logistics center, there are 5 additional over 7.5 million Colombians are now settled regional centers and 13 strategic regional warein safe areas. houses that support immediate response. • Response capacity has been strengthened throu• Colombia is one of the few countries in the world gh meteorological early warning systems. that has a regulatory structure that describes how to coordinate international cooperation in • We have cutting-edge technology and training the event of a disaster, in accordance with the for undertaking rescues from collapsed structuHyogo Framework for Action standards. res. Colombia currently ranks third (alongside Chile and behind the United States and Canada) • Today, the country has guaranteed funding for among countries with an international certificate disaster recovery through a national fund dein this type of rescue. signed for this purpose, automatic loans from the World Bank, and regional funds. In addi• We have a staff of 300,000 specialists between tion, a technical team is dedicated to working firefighters, military personnel, Red Cross, and consistently with municipalities throughout police who are trained and certified in accordan- the country to manage financial funds, develop ce with the highest international standards. municipal guides, and help prepare risk management manuals.
17 UNGRD (2017). UNGRD Presentation, Bogota, p. 1. 18 Ibid. P. 3.
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International cooperation 19 International cooperation has been decisive and fundamental to achieving the level of solidity and robustness enjoyed by the current Colombian system of comprehensive risk management and disaster resilience. In building its National Policy for Disaster Risk Management, Colombia received advice from the International Red Cross, Japan, Switzerland, the United States, and neighboring countries, consolidating a robust and multidimensional
regulatory framework. Colombia is also upheld in Latin America and the rest of the world for its bilateral agreements and 25 international agreements for sharing technical knowledge in risk and disaster management policies. Third, Colombia consulted with Argentina, Chile, Costa Rica, Ecuador, Mexico, Paraguay, Peru, the Dominican Republic, the Northern Triangle, and Uruguay in order to inform its regulatory frameworks for risk and disaster management. All this led to Colombia being chosen to host the VI Regional Platform for Disaster Risk Reduction.
Chiribiquete National Park, Guaviare. Image: El Espectador.
19 Ibid. P. 4.
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Colombian Pacific Ocean. Image: APC-Colombia
Decree No. 3570-2011 and Decree No. 3573-2011: Creating the Ministry of Environment and the National Agency of Environmental Licenses Innovation #3: New institutions to guarantee environmental governance
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The government determined that an independent institutional leader within the cabinet of the national government was needed in order to ensure national environmental governance. To this end, by Decree No. 3570-2011, the Ministry of Environment and Sustainable Development 20 was created to lead the planning and execution of the country's environmental policy and the institutions that report to it. At the same time, given the importance of non-renewable natural resource extraction to Colombia's economy, the National Agency of Environmental Licenses (ANLA) was created through Decree No. 3573-2011 within the framework of environmental sustainability policy
and the 2030 Agenda that prioritizes sustainable consumption and production. The creation of ANLA arises from the need for a technical and administrative institution that is financially autonomous and responsible for the study, approval, issuance, and subsequent monitoring of environmental licenses and permits granted to companies and public bodies as part of the supervision of infrastructure, mining, and energy projects. ANLA therefore conducts monitoring to verify that all of these works and projects have effective mechanisms that guarantee the smallest possible environmental impact.
are undergoing restructuring in order to implement a new methodology that will make the requirements progressively more stringent in proportion to the magnitude of the project. This will eliminate incentives for informality for small or medium projects, which since 2011, have been subject to the same requirements as large projects in Colombia. This national restructuring process enjoys support and consulting from Germany, Mexico, and Sweden.
Currently, environmental licensing processes 20 Ministry of Environment (2017). Decree No. 3570-2011. Accessed on the Ministry of Environment and Sustainable Development website on November 20, 2017: https: bit.ly 2lt2 0k
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Environmental protection and sustainability Protection of Natural Areas in Colombia and mechanisms for driving environmental sustainability Innovation #4: Comprehensive policy for sustainability and environmental protection The objectives outlined in the 2014-2018 National Development Plan established that the Colombian Government would set policies to protect natural areas and ensure environmental governance. To this end, goals were established for an increase of continental and marine protected areas and new mechanisms of intervention were planned to use green taxes and tax incentives to promote private sector investment in environmental projects. In addition, sustainable community development projects were implemented within post-conflict strategies such as Forests of Peace and projects to be derived from the Colombia Sostenible Fund.
Strategy for natural areas 21
protecting
Protected areas. The national government determined that it was necessary to increase the number hectares contained within protected areas in order to ensure that Since 1994, the national government has been building the National System of Protected Areas (SINAP), which is made up of protected areas, social stakeholders, strategies, and management instruments that coordinate their activity. This system contributes to fulfilling the country’s
conservation goals. It includes all protected areas governed by state, private actors, or communities at national, regional, and local levels. SINAP is in charge of the National Policy Council for the National System of Protected Areas, which establishes the guidelines to advance in the consolidation of SINAP as a complete, ecologically representative, and efficiently managed system, in a way that contributes to the environmental and land-use planning to fulfill national conservation and sustainable development goals. SINAP’s regulatory and policy framework has made significant progress in recent years, with Decree No. 2372 issued on July 1, 2010, which regulates various elements of the National System of Protected Areas, and through CONPES 3680, made official on July 21, 2010. Natural heritage is preserved for future generations. For this purpose, the 2014-2018 National Development Plan determined a 100% increase in the total protected area, from 13 million hectares to 26 million. As of June 2018, the Ministry of Environment and Sustainable Development had registered 43 million protected hectares, surpassing its goal.
21 Ministry of Environment (2017). Presidential Legacy Document for the Environment and Sustainable Development Sector, Bogota, p. 11. 22 Semana Sostenible (2016). National Carbon Tax. Accessed on Semana Sostenible’s website on November 20, 2018: https://bit.ly/2NmTznF
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Notable protected areas
1
Chiribiquete Mountains Declared world heritage site by UNESCO
2
Alto Manacacías Declared national park
3
Cinaruco
Declared national park
4
Manglares Cape Declared national park
Páramos (moorlands): They are the main sources of drinking water in the country. From 2010 until September 2017, the national government had defined the boundaries of 24 p ramos. All together, these cover over one million hectares. The goal is to have three million hectares of p ramos delimited by mid-2018. Wetlands: Progress has been made as well in the declaration of wetlands, in accordance with the Ramsar Convention, comprising an area of one million hectares over eight wetlands by September 2017. By 2018, Colombia will have 14 protected wetlands.
Green taxes and tax incentives Several mechanisms have been created that encourage investment in projects that have a positive impact on the environment. These are directed and implemented by the private sector to encourage responsible consumption by citizens. The aim is to achieve a 20% reduction in the production of greenhouse gases by 2030, in accordance with goals set in international agreements. • Carbon tax: Implemented in 2017, it seeks to generate 15,000 pesos (approximately 5 dollars) for each ton of CO2 released into the atmosphere by the burning of fossil fuels. Specifically, a tax of 135 pesos (approximately 4.5 cents of a dollar) is levied for each gallon of kerosene consumed. A tax of 149 pesos was applied per gallon of jet fuel consumption, 152 pesos per gallon of diesel, and 177 per gallon of fuel oil. Natural gas is also taxed, but only when it is used in the refinement of hydrocarbons and in the petrochemical industry. 22 Decree No. 926 regulated the mechanisms for the non-causation of the carbon tax for companies and subjects that certify that they have compensated for their greenhouse gas
emissions. This can be done by supporting projects that capture, remove, reduce, or avoid carbon emissions through purchasing their verified carbon units, also known as CU or carbon credits . 23 • Plastic bag tax: A tax of 50 pesos per bag (approximately 1.6 cents of a dollar) was implemented to encourage the recycling of plastics and reduce the consumption of plastic bags. This tax has yielded great results and the consumption of plastic bags has diminished by 30% since the beginning of 2017. 24 • Green tax incentives: In 2017, a series of benefits was implemented to incentivize renewable energy projects and provide discounts for projects that invest in environmental monitoring, reforestation, and watershed recovery. A 20% discount is applied to net income from investments in environmental monitoring and improvement. Similarly, value added tax ( AT) is waived for equipment, parts, and machinery sold for environmental monitoring and improvement systems as well as equipment imported for this purpose. Electric vehicles only pay 5% in AT and tax benefits for ecotourism projects and investments in energy generation from non-conventional renewable sources such as solar or wind are also maintained. 25
23 Presidency of the Republic (2017). Decree No. 926-2017: Accessed on the Presidency of the Republic’s regulations website on January 10, 2018: https: bit.ly 2t1xx3e 24 Ministry of Environment (2017). Presidential Legacy Document for the Environment and Sustainable Development Sector, Bogota, p. 11. 25 Portafolio (2016). Environmental tax reform for a future of sustainability. Accessed on Portafolio’s news website on November 20, 2017: https: bit.ly 2Jtp mp
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Colombian System of Environmental Information (SIAC) 26 Innovation #5: Constant monitoring of the state of the environment and the impact of human activity
The generation of environmental data and its subsequent analysis and integration into the design and execution of policies and programs is a structural element that ensures exactitude and precision, as well as sustainability and good results over the medium and long terms.
biodiversity, soil, and air. It is managed by the Institute of Hydrology, Meteorology, and Environmental Studies (IDEAM) and is supplied by various institutions operating in the environmental space both national and regionally.
In Colombia, the tool designed for this is the Colombian System of Environmental Information (SIAC), which began to be developed in 2007. The main goal is to facilitate environmental information management within the country to support decision-making and to promote the participation of the public in sustainable development. Its competence lies in generating, analyzing, processing, storing, and exchanging information that may support environmental management and research in Colombia.
Although the system began to be implemented in 2007, its technical and technological complexity and the interinstitutional action required to supply data from various systems of measurement from each institution occasioned setbacks and the system presented important opportunities for improvement. In 2015, the 2015-2020 SIAC strategic plan was implemented in order to make the system more robust, according to the recommendations made by the Organization for Economic Cooperation and Development (OECD) within the process of Colombia’s incorporation.
Essentially, SIAC processes data and information regarding the quality, quantity, use, vulnerability, and sustainability of the environment, water,
26 Ministry of Environment (2017). Strengthening SIAC, Bogota, p. 1.
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Gulf of Urabรก. Image: APC-Colombia
The plan has four elements: 1. Strengthening the system’s institutional framework through greater investment, the consolidation of the battery of indicators, and the prioritization of information necessary for decision-making at various levels of government, especially in situations where there is a loss (or risk of loss) of biodiversity. 2. Interoperability to facilitate its interaction with other active systems.
27
3. Regionalization. Building regional environmental baselines with certain thematic priorities in order to systematize information at the regional level. 4. User access to environmental information, with the goal of making the information available to the public and promoting wide distribution.
In addition, various studies have been conducted aimed at estimating the monetary value of ecosystem services. The National Parks institution (PNN) attached to the Ministry of Environment and Sustainable Development conducted an economic valuation of ecosystem services provided by Colombia’s national parks. In addition, PNN made progress in the search for new economic instruments that could contribute to justifying the conservation of ecosystem resources. On the other hand, the manual of compensations for the loss of biodiversity was updated and a methodology was designed for its regional implementation. Criteria were established for approaching compensations for net biodiversity loss in marine and coastal areas. The methodology considers compensation for biodiversity loss.
International cooperation
28
Various countries and multilateral bodies have aided Colombia in the process of consolidating and improving its System of Environmental Information (SIAC). From 2014 to December 2016, the German international development agency (GIZ) supported institutional strengthening workshops and capacity building around topics related to SIAC for officials from the Ministry of Environment and Sustainable Development. For its part, the Korean cooperation agency (KOIKA) provided financial support for the development of the SIAC information platform and supported the creation of a monitoring system by donating air quality control stations that feed into SIAC. Swiss cooperation supported IDEAM financially and technically in developing the water quality monitoring plan. The Norwegian government lent support to introduce information on forest cover into SIAC. Finally, the United Nations, through the UNDP (United Nations Development Programme), contributed to the climate change adaptation plan.
27 Ibid. P. 3. 28 Ibid. P. 5.
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Regulatory modernization to guarantee environmental protection Innovation 6: Regulation is accordance with the OECD recommendations Payments for Ecosystem Services (PES) 29 Through CONPES 3886 and Decree No. 8702017, the national government determined that one of the main ways to provide incentives for the conservation of protected areas was through payments for ecosystem services (PES). This is a very innovative mechanism by which the national government makes payments to owners of lands in strategic areas for environmental conservation so that their labors may focus on the recovery and total or partial conservation of the lands through sustainable activities. Lowincome owners of small or medium-sized lands and those subject to constitutional protections are given priority. The goal is to have one million hectares protected under this scheme by the year 2030. So far, 14 PES initiatives have been implemented in the country with 58,808 hectares preserved and 2,439 families receiving payments. The largest initiatives have been led by Colombian Sustainable Livestock (25,270 ha), Proyecto BanCO2 by the Río Nare regional environmental authority (20,000 ha), the environmental authority of northeastern Antioquia, and the Conservar Sí Paga by the Regional Government of Cundinamarca (6,462 ha). National Policy for the Comprehensive Management of Solid Waste. 30 Through CONPES 3874-2016 and as part of Colombia’s entry into the OECD, the national government began to make progress in the transition from a linear economy in which goods are produced, sold, used, and finally discarded as waste, towards a circular economy in which the value of products and materials are maintained for a long as possible in a cycle of production. To this end, CONPES 3874 presents policy aimed at reducing the generation of waste, providing
incentives for recycling and the reuse of waste, and reducing the volume of waste in landfills. The new policy for waste was a learning experience for Colombia in terms of design and implementation, given the characteristics of developing countries such as Colombia, where informality exists at every stage of the process from collection to final disposal. Important processes of bringing together various interest groups and drawing commitments from them was key to guaranteeing a policy that could achieve the proposed goals and be sustainable in an environment inclusive to both private enterprises and informal recyclers. Colombia is currently in the first stage of the policy’s implementation, focusing on resolving failures in the management of municipal waste and especially their final disposal. The sevenyear goal is for 30% of the nation’s waste to be reutilized successfully. CONPES 3868: Risk Management Policy for Chemical Substances. Chemical substances are elemental to industrial processes, but carry an inherent risk to human health and the environment. For this reason, their management and storage should be appropriate to each substance’s level of risk. Colombia has been making significant effort since 1998 to make progress in the comprehensive management of chemical substances through regulations and public policies, but there were structural failures that had to be resolved, and for this reason the national government formulated CONPES 3868 as part of Colombia’s entry into the OECD, which stipulates the Colombian policy for the management of risks associated with the use of chemical substances, effectively
National Planning Department (2017). CONPES 3886. Accessed on the DNP’s regulations website on November 17, 2017: https://bit.ly/2uGGOwN 30 ANDI—Colombian Association of Businesspeople (2017). CONPES 3874 de 2016. Accessed on ANDI’s regulations website on November 20, 2017: https://bit.ly/2rNsvIa 29
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bringing together mechanisms built since 2001. The purpose is to define and elaborate guidelines for reducing risks associated with the transformation, manufacturing, consumption, packaging, and blending of chemical substances, every stage in the life cycle except for disposal, given that for this had already been established.32 The general goal of the policy is to strengthen risk management associated with the use of chemical substances throughout their life cycle, setting forth a series of specific objectives that should be met by the year 2020. These come to life with the launch of: i) the Management Program for Industrial Chemical Substances (PGSQUI), ii) the Major Accidents Prevention Program (PPAM), and iii) cross-cutting instruments to strengthen the institutional, financial, and legal capacity to manage industrial chemical substances and prevent major accidents. 33 In the year 2017, Colombia made headway in the implementation of this policy by issuing three fundamental decrees. The first seeks to prevent major accidents such as spills and fires. The second establishes a program for the management of industrial chemical substances. The third regulates labelling and classification for these substances according to the risks they pose for human health and the environment. 34
Caracara, Antioquia. Image: Alex Pareja
Ministry of Environment (2016). CONPES 3868. Accessed on the DNP’s regulations website on November 20, 2017: https://bit.ly/2NnN2cu 33 Ibid. 34 Ministry of Environment (2017). Colombia enters the OECD Chemicals Committee. Accessed on the Ministry of Environment’s news Caracara, Antioquia. website on November 20, 2017: https://bit.ly/2JxOBlP Foto: Alex Pareja 32
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Community and sustainable development projects for the post-con ict era
1
Innovation #7: Achieving peace through environmental conservation
Bosques de Paz (Forests of Peace)35 This program, driven by the Ministry of Environment and Sustainable Development, promotes sustainable land management in the regions, integrating biodiversity conservation into enterprises that benefit organized communities and build living monuments of peace and historical memory commemorating the end of the armed conflict in Colombia. The program promotes social and environmental reconciliation through the restoration and conservation of areas strategic for the provision of ecosystem services. The main partners that are typically involved in a Forest of Peace are the regional environmental authorities (CAR) and private sector companies that must invest 1% in environmental compensation through four components:
members of the community involved in the project. The goal is to promote awareness regarding the biological richness of the local ecosystem and provide leadership training for the enterprises.
d.Living
monuments of peace: historical memory. Each Forest of Peace must include a Living Monument of Peace which symbolizes historical memory of the armed conflict and the conservation of forests that were epicenters in the war. They are monuments built with natural elements that preserve memories of the conflict.
The goal is for the Forests of Peace program is to have 150 forest projects by 2018. At the time of this document’s drafting, Colombia has 15 Forests of Peace with a total investment of 300 million pesos.
a.Biodiversity
conservation and watershed management. The program ensures the conservation of forest ecosystems by restoring areas that have suffered interventions and by reducing deforestation.
b.Enterprises for organized communities. Every Forest of Peace includes a working area for building and strengthening enterprises that benefit the populations settled in prioritized ecosystems. Coffee and cacao crops are promoted along with sustainable silvopasture systems.
c.Environmental
education: water guardians and forest rangers. Every Forest of Peace has an educational function that benefits
35
Ministry of Environment (2017). Forests of Peace. Accessed on the Ministry of Environment’s Forests, Biodiversity, and Ecosystem Services website on November 20, 2017: https: bit.ly 2zLsngH
Agricultural land. Image: APC-Colombia
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2
Fondo Colombia Sostenible (Sustainable Colombia Fund) Created in 2017 under the leadership of the Presidency of the Republic, the fund seeks to protect natural areas formerly in war zones that could become vulnerable to development after the peace process. The fund operates under a holistic and multisector approach, establishes innovative mechanisms for drawing finance from philanthropy and private funds, and deploys new tools based on international standards to ensure an impeccable execution of funds. Its function is to finance sustainable community development and environmental protection projects that are selected through a tendering process. The countries that participate in the fund are Norway, with contributions of up to 200 million dollars; Sweden, with 6 million dollars; and Switzerland, with 5.5 million dollars. For its part, Colombia will contribute 100 million dollars from an Inter-American Development Bank (IDB) loan. 36 The fund was designed with a 15-year focus, recognizing the importance of integrating conservation and environmental sustainability into state policy to contribute to SDGs and COP21 commitments.
3
Visión Amazonia and REDD+ in Colombia 37 The purpose of this program is to bring deforestation in the Colombian Amazon down to zero by the year 2020. It operates under the Colombian branch of REDD currently in development and is a pilot for the implementation of the strategy.
isión Amazonía seeks to protect natural ecosystems while driving economic development in communities, in alignment with the execution of the commitments of the peace agreement. The project currently enjoys the support of the governments of Germany, Norway, and the United ingdom. Through the REDD Early Movers (REM), they have agreed to develop a scheme of payments by results that delivers resources based on verified reductions in emissions from a gross reduction of deforestation in the Amazon. The three countries together have committed 100 million dollars (subject to exchange rates and parliamentary approval) to support the initiative.
4
Bancos de Hábitat (Habitat Banks) 38 These banks are lands in which companies and owners of private properties invest in ecosystem conservation, improvement, or restoration to compensate for the negative impacts of their business activities. In this manner, compensatory measures and environmental investment are guaranteed to be geared towards results. Colombia is a pioneer in Latin America when it comes to regulating habitat banks through Resolution 1051-2017. This resolution enabled several companies to undertake environmental compensation through a mandatory investment of 1%, to be destined to the sustainable use of ecosystems and biodiversity in the regions where they operate. It also allows for the investments from multiple companies to be destined to a single habitat bank to ensure greater impact, sustainability, and success. These banks also have an advantage in that their structure allows
36 Government of Colombia . Colombia Sostenible, Building a Sustainable Colombia in Peace, Bogota. 37 Ministry of Environment . isión Amazonía. Accessed on the Ministry of Environment’s news website on November , ly 2tnFv7R 38 Terrasos . Habitat Banks in Colombia. Accessed on the Terrasos website on November , : https: bit.ly 2Lva5Bq
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: https: bit.
long-term sustainability thanks to their financial, technical, and legal guarantees whereby companies make payments as various design, structuring, and maintenance milestones are hit for units of biodiversity which are measured in hectares. The first habitat bank in Latin America is in the Colombian Department of Meta, in the municipality of San MartĂn de los Llanos. A private investment of 1.5 million dollars has been made to preserve 600 hectares of ecosystems, and it is expected that 30 direct and indirect jobs will be created, increasing incomes for the owners of the lands while reducing the environmental compensation costs of companies. Habitat banks and Forests of Peace are wagers to maximize the social and environmental returns of peace. 39
5
Ambientes para la Paz Environments for Peace 40
At the same time, it promotes sustainable economic development, conservation, regional peacebuilding, and good livelihoods for communities within the Regional Spaces of Training and Reincorporation (formerly called Transitional Normalization Zones). The program supports point 3.2 of the peace agreement regarding reincorporation and will be implemented by the Ministry of Environment, the Norwegian Refugee Council (NRC), the UNDP, and FARC-EP. Thanks to an investment of 3.5 million dollars from the Government of Norway, the program is developing a reincorporation strategy in three areas: Miravalle (San icente del Cagu n), Playa Rica (Macarena), and Buenavista (Mesetas). It seeks to involve 3,800 people, of which 30% are former FARC combatants and 70% come from local rural communities. The social organizations present in these territories will play a fundamental role in executing the program, as will organizations of former FARCEP combatants such as FUCEPAZ and ECOMUN.
This project focuses on reincorporation and drives environmental training activities for local communities and former FARC-EP combatants.
Moorland Oceta, BoyacĂĄ. Image: Javier Vargas
39 Ministry of Environment . Summary of Habitat Banks, Bogota, p. 1. 40 UNDP . Environments for Peace: Decent Life and Reconciliation. Accessed on the UNDP website on November , https: bit.ly 2zPZ8cA
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La Miel Farm, Cรณrdoba. Image: APC-Colombia
Vision to the future National Policy for Climate Change Innovation #8: Building a cross-cutting and structural policy with a long-term vision Since 2011, Colombia has made profound regulatory and institutional changes in order to drive economic growth that is friendlier towards the environment and preparing the country to face risks associated with an increase in phenomena caused by global warming, however, it was considered necessary to consolidate a macrostructure that would align all the efforts the country was making and at the same time improve synergies and further establish the cross-cutting importance of addressing climate change. To this end, the government built the National Policy for Climate Change to allow the state’s technical and financial efforts to focus more sharply on reducing critical indicators of Colombia’s vulnerability to the effects of climate change.
This national policy brings together all the efforts begun in 2011 to manage climate change and broadens their strategic focus, specifically on mitigation and adaptation. In particular, it brings together the National Plan for Climate Change Adaptation, the Colombian Strategy for Low Carbon Development, and the National Strategy for Reducing Emissions from Deforestation and Forest Degradation, as well as other national policies such as the National Strategy for Climate Funding, the National Plan for Disaster Risk Management, and the Strategy for Financial Disaster Protection.41
Macaw. Image: Ministry of Environment
41 Ministry of Environment (2017). National Policy for Climate Change will turn Colombia into a resilient and low-carbon country. Accessed on the Ministry of Environment’s news website on January 16, 2018: https://bit.ly/2L1EMCd
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The goal of the national policy is to incorporate climate change management in public and private decisions in order to make progress along the path of climate-resilient and sustainable development, reducing climate change risks and allowing Colombia to take advantage of the opportunities that climate change presents. The long-term aspiration to which this goal contributes is to make the country carbon neutral. 42 The policy is structured according to a management framework that combines mitigation and adaptation. The former is about reducing greenhouse gas emissions; the latter about reducing risks from the medium- and long-term effects of global warming. The design of the framework is based on Colombian regional diversity. It seeks to influence the development of models of urban systems, rural systems, and energy systems; strategic investment in infrastructure that has an outsized impact on climate risks and potential to reduce greenhouse gas emissions; and factors that stimulate innovation and the efficient use of resources. All of this carried out through collective regional and national efforts that involve every ministry. This management framework and the formulation and implementation of the policy itself represents a great leap forward and is an international example of how a developing country with a high degree of vulnerability takes charge of its situation and executes all the relevant reforms to guarantee the long-term sustainable development of its society.
42 Ministry of Environment (2017). National Policy for Climate Change. Accessed on ANDI’s news website on January 16, 2018: https://bit.ly/2zLSRP7
National Park Valle del Cocora. Photography by: Tierra Colombiana
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National System for Climate Change (SISCLIMA) Innovation #9: National and regional governance for the National Policy for Climate Change The National Policy for Climate Change was created by the National System for Climate Change (SISCLIMA), which is made up of the set of institutions, interest groups, regulations, policies, and programs on climate change. Their interaction allows actions and measures to reduce greenhouse gas emissions to be coordinated, which in turn helps the country adapt to climate change. 43 This system is coordinated by 1) the Intersectoral Commission for Climate Change, which brings together eight central government institutions, essential to the objectives of the system, and
2) the Regional Climate Change Nodes, which are institutions made up of department and municipality representatives and are in charge of implementing regional programs and actions.44 This institutional architecture represents a great achievement because it guarantees the governance necessary to achieving the goals set by the policy, and because of the interinstitutional synergies generated at the national level with the commission and at the regional level by the nodes.
43 Ministry of Environment (2017). National System for Climate Change SISCLIMA. Accessed on the Ministry of Environment’s regulations website on January 17, 2018: https://bit.ly/2uK0gJ4 44 Ibid.
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Colombia as a leader in the international agenda Sustainable Development Goals (2030 Agenda) Innovation #10: New progressive focus driven by Colombia Colombia has played a notable environmental leadership role in the 2030 Agenda and the Sustainable Development Goals. At the same time, it is the first country to implement a peace process as it aligns with these goals. Formerly, the climate change negotiations were led by developed countries, which are the greatest greenhouse gas emitters. The fact that developing countries ought to also take action to adapt their highly vulnerable societies to extreme climate phenomena and implement programs to protect their natural areas was not taken into account. With this in mind, Colombia drove a new, progressive, and mediating approach in order to include all countries in the negotiation agenda, balance positions and responsibilities, and empower developing countries in the negotiations. This position made Colombia a leading actor and increased cooperation efforts directed towards the country, because it was understood that Colombia had implemented the necessary internal changes. New schemes of payments by results were created, whereby Colombia executed programs to later receive the funds. This scheme is highly revolutionary, as its grants nations sovereignty over their projects, drives internal reforms, ensures results, and places the beneficiary country at the same level as those providing cooperation assistance.
Leadership for this new progressive approach45 In order to continue driving this progressive approach, in 2012, Colombia took the initiative to form the Independent Association of Latin America and the Caribbean (AILAC), made up of Colombia, Chile, Costa Rica, Guatemala, Honduras, Panama, and Peru. This is a negotiation group that adopted Colombia’s approach and strengthened the position of developing nations at the Conferences of the Parties to the United Nations Framework Convention on Climate Change. AILAC has played a leading role, particularly at the negotiations at the 2015 conference where the Paris Agreement was signed.
2030 Agenda and the Sustainable Development Goals The 2030 Agenda for Sustainable Development signed in 2015 is a Colombian creation that began to be planned and designed at the Colombian Ministry of Foreign Affairs in 2011, in anticipation of the 2015 expiration of the Millennium Development Goals (MDG) set forth in 2000.
45 AILAC (2017). About AILAC. Accessed on AILAC’s website on November 21, 2017: http://ailac.org/sobre/
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Through this design exercise, the Government of Colombia considered that while the MDGs had generated great social changes, it was necessary to broaden the vision in order to cover three major pillars of development: the social, the economic, and the environmental. At the same time, it was necessary to design goals that could be implemented both in developed and developing countries, since the MDGs only applied to the latter.
Structural changes in the 2030 Agenda • Principle of universality: One of the main structural changes brought by the Sustainable Development goals was the principle of universality. The goals applied not only to developing countries but to every nation on the planet. The purpose was to address the dichotomy between the needs of the developed world and those of the developing world. • Resolution of tensions between the pillars
of development (economic, social, and environmental): The environmental and economic pillars were included through a vision that seeks to articulate and reduce tensions between each. The concept of sustainable development was included to this end.
• Inclusion of new actors: The 2030 Agenda
sets the foundation for creating spaces for the participation of non-state actors, including universities, NGOs, civil society, businesses, and others.
• Funding mechanisms: At the same time,
the 2030 Agenda took into account the need to support developing nations in the formulation and execution of projects. A series of funding mechanisms were stipulated to allow countries with limited financial means to access resources for driving progress towards the Sustainable Development Goals.
• Monitoring mechanisms: It was determined
that mechanisms for evaluating and monitoring progress towards the goals had to be implemented. The purpose of this is to create incentives for each country to formulate and execute public policies and programs that lead to an attainment of the goals. To achieve this, the High-Level Political Forum was created to provide guidance and recommendations regarding the implementation of the 2030 Agenda and conduct permanent follow-up on progress towards the Sustainable Development Goals.
El Cocuy National Park, Boyacá. Image: Outlanders
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Colombia’s Third National Communication Innovation #11: Compiling and consolidating regional information regarding climate change One of the Colombia’s main achievements with regards to climate change efforts is the action taken to compile and consolidate all the information necessary for adopting appropriate decisions and keeping every national and regional sector informed. The product of this effort is the Third National Communication framed within the commitment that all parties to the United Nations Framework Convention on Climate Change hold to keep the world and their own citizens informed regarding the impacts and challenges around the topic. 46 The Third National Communication was a great interinstitutional and scientific effort within Colombia, with the support of the UNDP, the Global Environment Facility (GEF). It is a new and innovative way of consolidating and presenting the mass of information regarding the various aspects of climate change in Colombia: 47
•Greenhouse gas emission scenarios for the year 2100.
•National Inventory of Greenhouse Gas Emissions with detailed regional data.
• Climate change risk analysis. • Mitigation, adaptation, education, funding, and
institutional strengthening being implemented by Colombia. Likewise, the report was prepared with a comprehensive regional approach, allowing any department within the country to know what its greenhouse gas emissions are, and which economic sectors and subsectors are key to designing and implementing climate change mitigation projects in their territories.48, 49
OECD and international cooperation 50 The environmental requirements for Colombia’s admission into the OECD comprised more than 60% of the reforms to be implemented in the country and involved ensuring that all procedures for managing waste, chemicals, and emissions complied with the highest standards. While Colombia had already begun reforms in 2010 in the areas mentioned above, the process of admission into the OECD accelerated the approval and implementation of all the
necessary reforms. This willingness on the part of authorities allowed access to the Environment Policy Committee (EPOC) on February 9, 2017, and the Chemicals Committee on April 27, 2017. This indicates the OECD’s support and acknowledgement of the progress achieved and Colombia’s commitment to continue improving environmental practices and standards. It is an important step to achieving the national government’s goal of admission into the organization.
46 El Tiempo (2017). The most important achievement of this years for the environmentalists . Accessed on El Tiempo’s news website on January 17, 2018: https://bit.ly/2DQpw3P 47 IDEAM-UNDP (2017). Third National Communication. Accessed on the IDEAM website on January 17, 2018: https://bit.ly/2LfJnzZ 48 El Tiempo (2017). The most important achievement of this years for the environmentalists . Accessed on El Tiempo’s news website on January 17, 2018: https://bit.ly/2DQpw3P 49 In order to obtain the inventory of greenhouse gases, four major sources of emissions were taken into account: energy, agriculture, industrial processes, and waste. In addition, eight sectors of the country's economy were considered: mining and energy, manufacturing, transportation, residential space, commercial space, agriculture, forestry, and sanitation. 50 Ministry of Environment (2017). Presidential Legacy Document for the Environment and Sustainable Development Sector, Bogota, p. 13.
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Colombia aimed at the bioeconomy Colombia BIO The signing of the Peace Agreement allowed Colombia access to many natural areas that had previously been the epicenter of heavy fighting, this situation kept these areas relatively protected from economic development and human activities. Now thanks to the Agreements, Colombians have access to this great treasure of biodiversity.
The Colombian Government identified this as a great comparative advantage, these areas were completely unexplored and unstudied, that should be developed in a sustainable way, through Science, Technology and Innovation. That is why, in 2014 the Colombia Bio program was created, which has the status of national strategic importance.
Colombia BIO main goal 51 It seeks to strengthen knowledge of the country's biodiversity and, consequently, the understanding of its possible uses and applications, in order to have solid foundations that will allow the emergence of a national and regional economy based on the sustainable use of that biodiversity, mainly on medicine, pharmacy, agriculture, food and cosmetics. Within this objective, there are components that make up a value chain, because without knowledge of Colombia's biodiversity, its economic potential cannot be developed, which is why Colciencias designed the following methodology:
1. Realization of scientific expeditions to the 2. 3. 4. 5.
prioritized areas. Strengthening of the country's biological collections and biodiversity information systems. Support for research and development projects aimed at expanding knowledge of biodiversity and its possible uses. Research upon the findings and construction of a biologically based products portfolio. Execution of a communication strategy, carried out through documentaries about the scientific expeditions and publications shared in social networks, to promote the social appropriation of biodiversity in Colombian society.
Scientific expeditions 52 These expeditions were designed in together with the National Environmental System (SINA), they were designed with the strictest international standards that allow the best results in the studies and generation of information on biodiversity.
20 expeditions were structured, 4 in marine areas and 16 in continental areas with the participation of more than 70 technical, NGO and decision-making institutions, both regional and national. The prioritized zones were chosen based on the high
52 Colciencias (2017) Colombia Bio. Accessed on November 21, 2017. Website: https://bit.ly/2NLIgWh 53 Colciencias (2017) Colombia Bio. Accessed on November 21, 2017. Website: https://bit.ly/2AcJ84B
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Marine Fauna, Malpelo Island. Image: Dive Magazine
biodiversity prospects and that previously were impossible to reach due to the armed conflict. The specimens collected during the expeditions are saved in the biological collections of the country,
and the associated information is recorded in different international databases that collect genetic, taxonomic information and location in coordinates.
Research and product portfolio 53 Regarding the Research, Development and Innovation component, Colciencias designed Portfolio 100, a strategy that seeks to promote the creation of 100 biological-based products, such as bio-pesticides, bio-fertilizers and natural ingredients for the food, makeup and chemicals industry. For this purpose, Colombia Bio has promoted two open calls directed to research groups and companies, with the objective of financing projects that lead to the commercial validation of products based on Colombian biodiversity.
53 Ibid.
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One of the main innovations of Colombia Bio is that it makes a structural change in the approach to the management of biodiversity by the authorities: It seeks that the biodiversity of Colombia's territory should not only be managed through a protection approach, but rather through an active approach to economic development, under strong sustainability and protection standards. This seeks to ensure that Colombia enters the world trend to migrate to biologically based ingredients, the use of renewable energies and reduce the use of products based on the synthesis of hydrocarbons.
Communication strategy 54 It was identified that it was necessary to implement a communication strategy in order to generate social appropriation of Colombians towards the biological heritage of the country, knowledge about the great dimension of it and to be proud
that Colombia is the second most biodiverse country in the world. To do so, 8 documentaries have been produced and are being presented nationally and internationally.
Strategies and achievements: 1. Colciencias resources were used for phase 1 and open calls for phase 2. 2. The Government works strongly with the territorial entities generating well structured projects to take advantage of the resources coming from the Royalties Fund for ST&I activities. Boyacá BIO is an example of the success of this strategy. 3. We actively seek, through international cooperation, resources not only for financing but also for technical work in conjunction with other countries.
These strategies have allowed to materialize great direct results of the project, but also a territorial and international support has been achieved that will allow Colombia Bio to continue in the medium and long term. Until the beginning of 2018, 11 of the 20 expeditions have been completed. They bring together scientists specialized in different taxonomic groups and they have proven the great diversity of these prioritized territories. New possible species have been discovered, 125 threatened species, 131
endemic species, new records in Colombian territory and extension of the distribution range of the species. 55 The 11 expeditions have been made at the following: 2 in the Pacific Ocean on Malpelo Island and two in Caribbean areas in the Seaflower Biosphere Reserve. The expeditions in continental zones have been carried out in the Darién in the Chocó, in the southwest of Antioquia, in the Peñón in Santander, in the foothills of Caquetá, in the Chiribiquete National Park, in Vichada and the last in Cauca. 56 Phase 2 is already beginning to see the first outbreaks of activity thanks to the participation of companies such as CasaLuker, Team R, Ecoflora Agro and Nutresa and academic institutions such as ICESI, Universidad Industrial de Santander and the University of Antioquia in projects of biodiversity research. Colombia is currently the intertropical country that drive the most the development of its bioeconomy. Rapid progress is being made on conceptual and regulatory issues of the policy and also on the implementation of projects and programs.
54 Ibid. 55 Colciencias (2017) Colombia Bio presentation. Bogota. P. 4 56 Colciencias (2017) Colombia Bio. Accessed on November 21, 2017. Website: https://bit.ly/2AcJ84B
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Regional component Work began with the regions so that they present projects for expeditions and / or research and development projects under the Colombia Bio umbrella, to be financed with resources from the Royalty Fund for CT + I activities. These projects have the Colciencias technical support to ensure the structural rigor and success of them.
In 2017, 6 regional projects were approved in Cundinamarca, Boyacá and Santander, where 40 billion pesos will be invested in scientific expeditions, Research and Development and Innovation projects. By the end of 2017, 9 projects are under study and approval process from Nariño, Valle del Cauca, Risaralda, Meta, Vichada, Vaupés and Chocó.
Tarapopo Lake, Amazonas. Image: APC-Colombia
International cooperation57 The United Kingdom is the most important ally of Colombia on issues of ST&I on biodiversity. This international cooperation alliance was signed in November 2016 in the framework of the State Visit of President Juan Manuel Santos to the United Kingdom. During this meeting, an agreement was signed to develop partnerships in Science, Technology and Innovation focused on biodiversity in Colombia with the Newton Fund, in coordination with the Colombia Bio program for a value of £ 20 million. The Newton Fund is a technical-scientific cooperation strategy of the United Kingdom that
57 Colciencias (2017) Colombia Bio presentation. Bogota. P. 4
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seeks, through science and innovation, to promote economic development and social welfare in developing countries. This Fund is managed by 15 Delivery Partners (implementing partners) in the United Kingdom in collaboration with entities with the capacity to provide a counterpart in the 16 beneficiary countries. Currently, the Delivery Partners (most important executing partners) for the Colombia Bio Program are the Natural Environmental Research Council (NERC), the Arts and Humanities Research Council (AHRC) and Royal Botanic Gardens.
4
Peace Agreement and Period of Post-Con ict
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Principal Cathedral of Bogota. Image: APC-Colombia
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Peace in Colombia Achieving Sustainable, Innovative and Inclusive Peace in Colombia Throughout the 19th and 20th centuries, Colombia was marked by the violence of continuous political processes at the expense of the Colombian people. According to the National Center for Historical Memory (CNMH), this recurrent violence led to the displacement of more than 7 million people and caused 220,000 deaths, 82% of which were civilians.1 Violence in Colombia has been the primary obstacle to the country's progress towards a prosperous and competitive future: it has obstructed institutional structures and their ability to reach remote regions throughout the country, it has increased the social divisions between remote areas and large cities and it has reduced the State’s ability to address other issues such as drug trafficking, social inequality and corruption. By 2012, Colombia was home to the only internal armed conflict in the western hemisphere, which was also the second oldest conflict in the world.
1
El País (2013). Over a 54-year period, 220,000 people have died as a result of the armed conflict in Colombia. Accessed on January 22, 2018, from the El País newspaper Website: https://bit.ly/1jmAkd3
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Bolivar Square, Bogotรก. Image: Michael Kragh
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Vision For Colombia to achieve peace, substantial change lies ahead for the country including communities from the most affected regions, local governments, the private sector, civil society organizations, the government in general and all citizens. For the national government, this involves completely changing how problems are addressed not only in terms of national security, but of how to shape strategies to deal with the great challenges the nation is experiencing. The strategy for dealing with the violence in Colombia therefore seeks to restructure Colombian social paradigms and pave the foundation for a nation with more humanitarian, inclusive and global ideals.
“
If you want to make peace with your enemy, you have to work with your enemy. Then he becomes your partner
“
Nelson Mandela
Achieving peace in Colombia means making the transition from having been an isolated country absorbed in an internal war to establishing itself as a regional leader for Latin America and the Caribbean, a foreign investment destination, and as a country that is immersed in global value chains, is on a pathway towards sustainable economic growth, and is aware of the need to achieve development within a framework that improves the quality of its citizens’ lives. With the approval and implementation of the Victim Assistance and Land Restitution Law, this vision began to take shape in 2011. It began with significant institutional reforms for developing a comprehensive institutional network to address victim reparation and the sustainable reincorporation of ex-combatants to civilian life. Also, the exploratory phase began by holding conversations with the Revolutionary Armed Forces of Colombia-People's Army (FARC) guerilla group, which ended with the signing of the Peace Agreement on November 24, 2016. The new networks of Colombia’s institutions, its regulatory frameworks and the FARC negotiation process itself were valuable learning experiences for the country and for all nations throughout the world experiencing similar situations. This chapter is divided into two sections that reflect the reforms and changes Colombia is experiencing in its peace process. Arising from these reforms and changes are Colombia’s most significant achievements to developing comprehensive peacebuilding policy as implemented by the national government: Changes resulting from the negotiation process with the FARC Institutional and regulatory changes
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1
Innovation in the negotiation and in the peace agreement with the FARC
Colombia has been in armed conflict with guerilla groups, paramilitary groups and drug lords since the 1960s. The conflicts turned its rural areas into territories of crime and poverty; a situation that gave the country its image as a violent, failed state. Provided this context, achieving peace always seemed like a utopia in the minds of Colombians. Over 50 years of armed conflict had normalized the violence in Colombian society and in governmental institutions, where military and war strategies were always the modus operandi. After the change in government leadership in 2010, however, President Juan Manuel Santos (Minister of Defense of the former administration) had concluded that this strategy –which had achieved significant success on a tactical level and had restored security to a substantial number of regions throughout the country in the second half of the previous decade– was no longer functioning. Despite the political cost and
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opinions it would cost him, this recently elected president acknowledged that the war, a defining mechanism of conflict today, had become obsolete and that it would be necessary to make profound changes to what was then perceived as the "duty" of national security. For President Juan Manuel Santos, a leader must focus on the political objective of peace and must, at all costs, avoid the easy pathway of war just to follow the currents of public opinion. The FARC’s retreat and loss of power attained by the Armed Forces of Colombia was key to bringing this irregular armed group to the negotiating table and it helped achieve the impossible and unthinkable. Not only did it lead to the signing of the peace treaty with illegal armed groups and the end of a war that had left the country in ruins, but it also made the vision of a country at peace a reality; where there was space and tolerance for all opinions to be expressed about the political system, where the State fulfilled its
constitutional duties all throughout the country, and where society would approve of short-term change, and in the mid and long-term, adopt a culture of peace and democracy. The task that lay before the government was therefore not easy. Not only did it have to transform the structure of the State through the institutional reforms described in the above pages, but it also radically changed how Colombian diplomacy was conducted. This change improved relationships with neighboring countries and with the rest of the region, facilitating the beginning of the peace process. The government also prepared meticulously for negotiations through technical studies and by accounting for the lessons learned from previous negotiation processes.
In 2012, a negotiation process began with the oldest guerilla group in Latin America. This process was as participatory, inclusive and as transparent as possible without affecting the stability of negotiations and conducted with strict protocols and regulations agreed upon by all parties. For these reasons, the methodology for designing, developing and implementing the Peace Agreement with the FARC broke the mold of previous agreements implemented in other countries and brought in innovative tools that could involve citizens in the process. These innovative methodologies and the details of the stages and points of the Peace Agreement are explained in the following section.
Signature of the Peace Agreement. Image: Presidency of the Republic
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María Clemencia Rodríguez, First Lady. Image: Nelson Cárdenas
Innovation in the design of peace talks with the FARC Change # 1: A participatory, technical and regulated negotiation process When two parties of an armed or political conflict begin to consider embarking on negotiations and entering into dialogue, a world of opportunities opens, more of which are positive than negative. This is the starting point for guaranteeing the success of such a process and for lowering the chances of failure, as it establishes how the negotiation process itself will be designed: "How you negotiate is just as important as what you negotiate." In the case of Colombia, the national government determined that in order to guarantee the sustainability of the negotiation process, this technical aspect would be crucial. The negotiation process was therefore divided into three phases, explained in the table below. 2
1 Exploratory phase: This phase was
confidential. Its objective was to confirm that the intent of these rebel armed groups was sincere and to establish a roadmap that would help lead to the end of the conflict. The participation of international guarantors of the process –such as Venezuela, Cuba and Norway– was fundamental, as well as the fact that all negotiating was held outside of Colombia.
Institute for Integrated Transitions-IFIT (October 2017). Consideraciones prácticas para el diseño de procesos de negociación política y de paz (Practical Considerations for the Design of Political Negotiation and Peace Processes). Accessed on February 4, 2018, on: https://bit.ly/2Lvo9eh - Pp. 1.
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2 Negotiation phase: This phase took
place at conversation tables that were led directly by the parties. The purpose of this phase was to reach agreements on issues identified mutually by both parties as priorities to ending the conflict and to building the foundations for a peaceful society.
3 Implementation phase: Part of
achieving a regional vision for peace is the simultaneous implementation of all that was agreed upon with the corresponding guarantees and mechanisms for verification and citizen participation.
Signature of the Peace Agreement. Image: Presidency of the Republic
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1. Exploratory phase (February-August 2012). It was conducted with extreme caution and confidentiality with the delegate members of the FARC in order to: confirm that the armed group’s intent to put an end to the conflict was sincere, exchange visions about the end the conflict, develop a roadmap, and to avoid any instability that could influence public opinion during this sensitive phase. This took place in Havana between February and August of 2012. An important factor to establishing the trust and comfort of both parties, especially with the FARC, was to hold negotiations outside of Colombia’s borders and under unofficial mechanisms of contact (completely confidential meetings). Also fundamental to this phase was the international support of Venezuela (especially during the initial encounters between the parties), as well as that of Cuba and Norway, as their involvement helped to establish trust, smooth dialogue and cordial treatment between both parties.
2. Negotiation phase (August 2012-August 2016)
process was negotiated and agreed upon. The characteristics of the work agenda and the six points of the Peace Agreement were recognized by global experts as an example to be followed for the design of negotiation processes that guarantee the successful culmination of similar negotiation processes.3
3. Implementation phase (December 2016- today) It consists of activating all the mechanisms and agreements agreed in the Peace Agreement. This phase is currently underway and began on December 2, 2016 with the installation of the Monitoring, Promotion and Verification Commission for the Implementation of the Peace Agreement (CSIVI). Subsequently, on January 31, 2017, the Ethnic Commission for Peace and Defense of Territorial Rights was installed, which will ensure that the peace process reaches the territories effectively. Finally, on July 27, 2017, the Special Instance was installed to guarantee the gender approach in the implementation of the Peace Agreement. These 3 instances are key to guarantee the principles of equality and legitimacy in the third phase.
After the exploratory phase, on August 26, 2012, the following document was signed: "General Agreement for the Termination of the Conflict and the Construction of a Stable and Lasting Peace." This general agreement established a national roadmap for the negotiation phase with the following six points or aspects to implement in Colombia: comprehensive agricultural development policy; political participation; end of the conflict; solution to the problem of illicit drugs; victims; and the agreement's implementation and verification methods. These six points that were mutually agreed upon for the negotiation follow the working agenda and technical aspects of this phase, which both parties committed to. This was the first time in recent international history that an agenda establishing the framework for the entire negotiation 3
OACP (2015). Mesa de conversaciones con las FARC-EP (Conversation Table with the FARC-EP). Accessed on February 4, 2018, on the OACP Webpage: https://bit.ly/28SXCrL
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The Colombian government's negotiation process with the FARC includes innovative aspects that helped guarantee its success. First, its technical aspects were critical throughout the entire negotiation process. From the beginning, with recommendations from experts on how to design negotiation processes, through the negotiation itself, technical teams organized sessions and roundtables and prepared both parties for the issues that would be addressed in order to ensure all parties had a firm grasp on the issues at hand and to avoid missing information. Second, the general and specific objectives of negotiation were agreed upon and clear ground rules were established with the Framework Agreement, which designated a detailed agenda, identified the issues that would be addressed and set rules about how negotiations would be conducted. Also, the rules for how information would be handled were agreed upon, as well as other rules for establishing how often sessions would occur, how to handle confidentiality and communication with citizens, how to manage citizen participation, and how to manage the agreement's referendum; clear roles were also established for the participation of international actors. It was determined that territories would not be demilitarized and that military operations would not cease. The nature
of the roundtable sessions between the parties was cautious and direct in order to work with seriousness and discretion. Conversations were held under the principle that "nothing is agreed upon until everything is agreed upon" in order to promote the flexibility and consistency of the structure of the three phases. Specifically, identifying an objective of the negotiations, designating a detailed agenda and setting ground rules, helped achieve the following: i) measures could be addressed and implemented to remedy the inevitable lack of trust between the negotiating parties; ii) the expectations of party of the other could be determined; iii) trust could be established among the population involved in the process; iv) resolutions could be prepared for any crises that would arise during the process; and v) what was agreed upon could be adhered to. The following is a table that compares the Caguรกn negotiation process (1998-2002) with the Havana process (2012-2016) based on the study "Innovations in the Colombian peace process" conducted by NOREF Norwegian Centre for Conflict Resolution, a study that itemizes the successes and innovations of the Havana peace process:4
4
NOREF (2016). Innovations in the Colombian Peace Process. Accessed on February 4, 2018, on the Conciliation Resources Webpage: https://bit.ly/2LazBjt
Signature of the Peace Agreement in Cartagena. Image: Presidency of the Republic
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Innovations of the Havana negotiation process Tema
CaguĂĄn Process (1998-2002)
Objective
General goal. Sought to reform the State in its entirety.
Specific goal. Sought to end the conflict.
Agenda
General agenda. Included large economic, judicial and social reforms.
Detailed agenda. Only included six points that focused on rural development and guarantees for political participation.
Technical aspects
Not technically rigorous in the planning of the negotiation process.
Very technically rigorous in the planning of the negotiation process. i) Submission of proposals and comments, both
Citizen participation
Weak. Mechanisms involved public hearings with a limited and undefined scope and parties at the negotiating tables were seen as the only representatives of Colombian society.
Role of victims and women
Completely absent from the agenda and in negotiations.
Fundamental. 60 victims visited the negotiating tables. One of the six points of the Peace Agreement addresses victims’ rights and a gender sub-committee was created to oversee the entire process, adding a gender focus to it.
Timelines
Relaxed and inconsistent. There was no meeting schedule or general timeline for negotiations.
Media
No structure, no regulations and no confidentiality. This caused confusion and resistance as the talks progressed.
Havana Process (2012-2016)
in writing and electronically; ii) Direct consultations.
Strict and planned. A strict timeline was developed for workdays, and on how hours would be distributed between negotiation and preparation. Structured and regulated. Any progress made on each of the points of the Peace Agreement was published by the Conversation Table through official reports and with a format that both parties agreed on. The national government also created different types of informational publications and initiatives in order to aid in understanding the process.
Implementation
An agreement was not reached.
Rigorously planned. An institutional preparation process was held to implement the agreement and thorough follow-up, and support systems were created for implementation with strong international participation.
International actors
Lack of structure and planning for international participation.
Clear roles were established that guaranteed the efficiency of their work, contributing to reaching the negotiation objectives.
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Signature of the Peace Agreement. Image: Presidency of the Republic
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Primary innovations in the design of the negotiation process
1.
Citizen participation. Throughout the negotiation process, maintaining the confidentiality of the negotiations was critical to preventing their obstruction; however, obtaining as much participation as possible was also important. A written form of participation was therefore developed in which mayors' offices and governors' offices would issue forms to be filled out by citizens. These forms were then sent to Havana by mail. An online participation model was also created in which citizens could fill out the form with their proposals, to be read in Havana. Negotiating teams were required to read and process these proposals before the electronic system would proconfirm to the Colombian citizen that their pro posal had been analyzed successfully. consulThis was the procedure by which direct consul tations were made to scholars, peasants, victims and ethnic communities. In addition, national and regional forums were held with the United Nations and Universidad Nacional in order to foster discussions about the negotiations and moreceive input from civil society. The use of mo dern technology and innovative participation negotiamechanisms helped establish a stable negotia tion process that was highly confidential. Towards the end of the negotiation process, the teams in Havana had received, processed, and analyzed more than 68,000 proposals from citizens which helped contribute input to negotiations on a daily basis, making this citizen participation mechanism one of the strongest mechanisms used in negotiation processes around the world.
5
2.
Victim participation. The search for participation mechanisms that could contribute, stren strengthen and accelerate the development of the process was led by Universidad Nacional, the UN and the Catholic Church (through the Co Colombian Conference of Bishops). Together, the these entities developed a mechanism to coordinate five delegations consisting of 12 victims each to visit Havana. The objective of these visits was to give each delegation the opportunity to share their testimony, suggest proposals and express their expectations for the peace process, and to implement the Peace Agreement before the two delegations at the Conversation Table. This type of interaction between the victims and the leaders of the negotiating parties is globally unprecedented. It helped add an element of awareness that fostered and accelerated the development of negotiations, and contributed to further promoting, protecting and guaranteeing the rights of victims, making them the focus of the negotiation process and of the process to solve the armed conflict.
3.
Gender focus and participation of ethnic communities. Another aspect of the negotiations unprecedented to military or political negotiation processes, was the inclusion of a gender focus and the participation of ethnic communities throughout negotiations. A gender focus was taken by creating a gender a sub-committee, which helped to incorporate its perspectives in the Peace Agreement. This sub-committee also ensured that women and LGBTI communities participated in the agreement, that they had equal rights, that their rights
OACP (2017). Innovaciones en el proceso de Paz 2012-2016 (Innovation in the 2012-2016 Peace Process). Bogota.
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5
were respected, and that their opinions were included in these negotiations. Also critical to implementing the agreement, were the mechanisms that promoted the participation of ethnic communities in Colombia in overseeing and monitoring the agreement’s implementation. To achieve this, the Special Authority on Ethnic Communities was used to monitor and implement the agreement.
4.
Referendum. On October 2, 2016, a referendum (plebiscite) took place, which did not pass by a small margin. The national government accepted the result of this referendum and, immediately, dialogues were held with leaders from different civilian sectors that supported and opposed the agreement in order to listen to proposals regarding the modification of the agreement. Following this, modifications were made together with the FARC and the new version of the document was approved in the Congress of the Republic.
5.
Strict rules for both parties. After reaching a clear objective that was agreed upon by both parties, and after agreeing upon a detailed, sixpoint agenda, previous experiences proved that it would also be necessary to establish a series of strict rules regarding issues of confidentiality and media communications. The purpose of this was to ensure the stability of both parties and ensure that cordial language was used between them; this also served to establish structured work schedules, and to avoid inconsistency and excessive delays with negotiations. In order to regulate confidentiality and media communications, protocols and formats for press releases were established; it was agreed that press releases would be published on the
official webpage for the peace talks only once agreements were reached on each point. Also, in order to ensure that the negotiations advanced quickly and that they remained on schedule, a strict timeline was instituted: Havana would have 11-day work cycles and Colombia would have 7-day work cycles. The 11-day cycle in Havana was divided into 3-day work periods: the mornings were for negotiating, the afternoons were used to prepare for the next day’s topics, and the morning of the third day was a break period. The negotiations had three working modalities: i) one modality was a negotiation table consisting of 10 delegates from the FARC, 10 delegates from the Government of Colombia, a guarantor from Norway and a guarantor from Cuba; ii) a 4x4 modality was also used, which consisted of four plenipotentiary representatives from both sides without the presence of guarantors or technical advisors; iii) finally, there was a drafting committee consisting of two plenipotentiary members from each delegation and technical advisors from both international guarantors who would exchange their documents in order to draft the agreement. It is important to note that the agreement was only made effective once it became final: unless everything was agreed upon, there would be no agreement. This concept was fundamental in order for the design of the three proposed phases to stay flexible and consistent, and it was also a critical part of reaching partial agreements. Despite the ground rule that stated that no part of the agreement would be implemented until the third phase, public events had to be held and announcements made to defend and demonstrate the transparency of the process; for example, the release of prisoners, and the FARC’s commitment to stop engaging in kidnapping and the joint efforts of mine clearance. COLOMBIA HAS CHANGED
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Innovation in the Peace Agreement between the Colombian Government and FARC Government and FARC Innovation #2: Peace Agreement designed under solid principles of legitimacy and equality
While the Peace Agreement included a detailed, six-point structure and had a clear objective for ending the armed conflict between the Colombian State and the FARC, it also aimed to bring about deep reforms that would not only put an end to the conflict, but also solve the structural problems that allowed the conflict to persist for over 50 years.
Summary of the points in the agreement 6
Point Point 1: Comprehensive Rural Reform
Point 2: Political Participation
Point 3: End of the Conflict
Point: 4 Solution to Illicit Crops
Point 5: Victim Agreement
Point 6: Implementation and erification Methods
6
Most important aspects • Land access and use • National rural development plans • Development Programs with a Territorial Approach (PDET)
• Greater citizen participation • Special transitory peace electoral districts • Observance of rights and guarantees of participation
• Vereda areas (rural districts) • Disarmament and accreditation process of excombatants • Ex-combatants’ reincorporation to civilian life • Security guarantees • Voluntary and comprehensive substitution of illicit crops • A new humanistic approach to illegal drug use • Solutions to the production and sale of narcotics • Solución a la producción y comercialización de narcóticos. Commission for the Clarification of Truth, Coe istence and Non-Repetition • Special Jurisdiction for Peace • A Search Unit for People Reported as Disappeared • Comprehensive reparation measures for peacebuilding and guarantees of non-repetition
• Implementation Framework Plan • Mechanisms for guaranteeing implementation (CSIVI, CNR) • International monitoring and support
OACP (2017). Presetnación de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota
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Abandonment of armament event. Image: Presidency of the Republic
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Point 1: Comprehensive Rural Reform
Point 2: Political Participation
The Government of Colombia believes that if the country wishes to reverse the impacts the conflict on its territory, and prevent the conflict from being repeated, significant change must be made to the country’s rural areas through comprehensive rural reform.
In order to foster peacebuilding after the end of the conflict, a new democratic opening had to be reached that would promote political inclusion through all the guarantees of transparency and equality established in the ground rules. Transitional mechanisms that would contribute to strengthening the role of the most affected regions in Colombia were required, and political representation movements had to be established. To achieve this, the agreement implements the following measures:
This point of the agreement seeks to establish mechanisms to eradicate extreme rural poverty and reduce rural poverty by 50% in a period of 10 years. Mechanisms will also be established to promote equality, close the gap between rural and urban areas, and revitalize the economy of rural areas. In particular, new mechanisms will help develop agriculture among peasants, families and communities. There are three pillars to this point: 7
1.
The mass formalization of rural property and distribution of public land to peasants that are not land owners or who do not have enough land. The National Lands Fund, administrated by the National Land Agency (ANT), was created for this point.
2.
The comprehensive access to funding and technical support for peasants through comprehensive rural development plans that increase the productivity of the land and income of families. The ADR was created for this point.
3.
The design and implementation of special Development Programs with a Territorial Approach (PDET) in the regions most affected by the conflict. These programs aim to coordinate the State’s big initiatives and impact plans in order for institutions to work together with communities to stabilize and rebuild Colombia’s most affected regions, and to achieve reconciliation throughout these regions. The Agency for Regional Renewal (ART) was created for this point. 7
1.
Facilitate the creation of new political parties, without compromising progress made in the establishment of the party system. This involves separating the need to surpass the electoral threshold from the ability to obtain representation as a party, as well as establishing special conditions so that during the transition period, the new powers that arise receive enough State support.
2.
Creation of 16 Special Transitory Peace Electoral Districts in the regions that were hit hardest by the conflict. The purpose of these districts is so that, temporarily, during the transition phase, inhabitants can elect additional representatives to the House of Representatives of the Congress of the Republic of Colombia under a special set of rules.
3.
A series of specific measures was agreed upon to strengthen the transparency of the electoral system and perform a comprehensive review of both the electoral system and structure in order for these guarantees to be applied and to put Colombia at the forefront of the Latin American region. Strengthening citizen participation also involves supporting social organizations that play an important role in peacebuilding.
OACP (2017). Presetnación de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota. p. 9
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Coffee grower. Image: BBVA COLOMBIA HAS CHANGED
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Point 3: End of the Conflict This point establishes the terms for reaching the end of confrontations with the FARC through a bilateral and definitive ceasefire and cessation of hostilities. It also sets a specific timeline for disarmament and for beginning reincorporation to civilian life. This timeline was developed thoroughly and in great detail, with the leadership and support of the UN, recognized internationally for its experience in these types of processes. The Monitoring and Verification Mechanism was also created at this time, consisting of representatives from the UN, the national government and the FARC. This mechanism performed follow-up and gathered information on the disarmament process. It also made recommendations on issues that arose as problematic or inefficient. The following are the main elements of point three as well as its specific outcomes, as this is the point that proved to have the most immediate results: 8
1.
Sub-Committee for the End of the Conflict: This point’s negotiation process involved generals and other active officials from the Military Forces and National Police in order to reach with the greatest technical standards possible an agreement for a bilateral and definitive ceasefire and cessation of hostilities, as well as disarmament.
2.
Disarmament and accreditation: According to figures from the United Nations, in a three-month period, about 6,800 guerilla members from the FARC turned in 8,994 individual weapons, a ratio of more than one weapon per person. Also, as a result of the thorough, detailed and step-bystep design of this point, 750 arms caches belonging to the FARC were dismantled. 8
3.
Accreditation and transition to living under the law: : This consists of each FARC member’s commitment to end the conflict, lay down their arms, not use them again, adhere to the agreement, transition to civilian life and begin the reincorporation process. This occurred through a rigorous procedure that involved several control and national security entities. The number of FARC members accredited was 12,366, a figure that can be divided as follows: 6,186 were internal members, 3,061 were external militia, 58 were foreigners and 3,061 were persons deprived of liberty.
4.
Vereda zones: In fulfilling the agreement’s protocols for a bilateral and definitive ceasefire and cessation of hostilities and disarmament, 19 transitional vereda zones (rural districts) for normalization were established as well as 7 transitional normalization points. The OACP established these zones and points after an assessment was made of several zones. This assessment was based on 60 different criteria for ensuring a Social State of Law 9 and security conditions for both the general population and ex-combatants. Next, these zones became Espacios Territoriales de Capacitación y Reincorporación (Regional Training and Reincorporation Sites) led by the Reincorporation and Normalization Agency. These sites serve to train FARC members to reincorporate to civilian life, create productive projects and meet the training needs of ex-combatants in a supportive environment with surrounding communities through a community reincorporation model.dades aledañas a través de un modelo de reincorporación comunitaria.
OACP (2017). Presetnación de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota. p. 11. 9 Translator’s note: Included in the 1991 Constitution of Colombia, the Estado Social de Derecho (Social State of Law) is a system that promotes the guarantee of rights considered essential to maintaining a lifestyle which allows participation as a full member of society.
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UN verification and monitoring mechanisms. Image: FARC
Point 4: Solution to the Problem of Illicit Drugs While the armed conflict came before the rise of drug trafficking in Colombia, building stable and lasting peace is not possible if drug trafficking is not addressed in a structural manner. Colombia has been the world’s primary exporter of cocaine for the past 30 years. During this period, coca crops destroyed thousands and thousands of hectares of tropical forests with devastating consequences to the environment and to climate change. The Peace Agreement, and specifically this point of the agreement, benefits countries such as Mexico and Central American nations where drug cartels are increasingly affecting their populations. This point also positively affects the United States, all other drug-consuming countries and West Africa, which has become a transit point for drug trafficking routes from South America to Europe in recent years.
of drug trafficking networks, played a significant role in this point. Its war machines were financed by the illegal drug trafficking market, which led to and furthered this lucrative source of financing. It was therefore a fundamental and unprecedented success for this guerrilla group to commit to ending all ties with drug trafficking and, in exchange, help the government with illicit crop substitution programs and with destroying laboratories located deep in tropical forests, where cocaine is manufactured. In addition to standard measures for fighting drug trafficking, this point has three main elements that effectuate substantial change to how Colombia addresses the issue of illicit drugs. 10
1.
Solving the problem of illicit crops through the creation of the Comprehensive National Program for the Substitution of Illicit Crops and Alternative Development, This program
The FARC, which was one of the main leaders 10 OACP. (2017). PresetnaciĂłn de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota p. 11
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Colombian farmers. Image: APC-Colombia.
seeks to transform the conditions of the regions affected by the presence of these crops and establishes conditions for the wellbeing of the communities that live there. Specifically, it assists those who grow illicit crops in transitioning towards a legal economic activity. All of the program’s efforts take a voluntary substitution approach and technical and financial support is provided from the State.
2.
3.
A comprehensive strategy was agreed upon to reinforce and expand efforts to dismantle organized crime and other networks, This strategy seeks to concentrate its efforts on mapping, investigating and prosecuting crimes related to drug trafficking with a focus on the most profitable links of this value chain.
Changing the focus of drug use as a problem of national security, to one of public health. This focus will be coordinated by the National Comprehensive Intervention Program against Illicit Drug Use. Through a humanistic lens, this program seeks to coordinate relevant institutions with experience in this issue and establish a participatory process for reviewing, changing and implementing policy on illicit drug use. It also seeks to build local capacities to address the problem of illegal drug use, coordinate State efforts on the issue and generate knowledge on the phenomenon. 11 OACP (2017). P&R: Sistema integral de Verdad, Justicia, ReparaciĂłn y no RepeticiĂłn (Agreement Regarding the Victims of the Conflict). Accessed on February 4, 2018, on the OACP homepage: https://bit.ly/2O4zC6f
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Point 5: Agreement Regarding the Victims of the Conflict Both parties agreed that victims must be the central focus of any agreement and that the agenda for the end of the conflict must include a point in their interest. Thus, point five was created: the Agreement Regarding the Victims of the Conflict. The purpose of this point is to realize the rights of victims to the fullest extent possible, ensure accountability for the events that occurred, and protect the judicial security of those who participated in the conflict. It also seeks to contribute to guaranteeing coexistence, reconciliation and the non-repetition of the conflict; thereby securing the armed conflict’s transition to peace.11 This point consists of different mechanisms and measures, both judicial and extrajudicial, which will be put in place at the same time and in a coordinated fashion to realize the rights of victims. It also honors Colombia’s international obligations, including those from the Rome Statute of the International Criminal Court and, of course, obligations originating from national law. This point consists of the following mechanisms:12 • Commission for the Clarification of Truth, Coexistence and Non-Repetition: This is a non-biased, independent, transitional and extrajudicial mechanism that uses a regional approach to contribute to realizing the right to truth for victims and society as a whole.
12
OACP (2017). Presetnación de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota. p. 16. Victim's physical rehabilitation. Image: APC-Colombia
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• Search Unit for People Reported as Disappeared in the context and as a result of the armed con ict: This is a humanitarian and extrajudicial special unit that seeks to determine the circumstances of people considered to be disappeared in the context and as a result of the armed conflict, thereby contributing to realizing the rights of victims to truth and comprehensive reparations. • Special Jurisdiction for Peace (JEP): This jurisdiction seeks to realize victims’ rights, especially their right to justice. However, it also contributes to guaranteeing their rights to truth, reparations and non-repetition. This jurisdiction will apply to all those who, as a result of their direct or indirect participation with the armed conflict, committed crimes in the context of or as a result of the conflict. The JEP consists of magistrates chosen through a transparent process that ensures they possess a high moral character and that they meet international standards of judicial independence. This is the first time that a government and an illegal armed group settle on including an accountability system in a peace agreement that includes a national court for investigating, trying and sanctioning actions committed in the context and as a result of the armed conflict; especially those most serious crimes and those most characteristic of the armed conflict. It is also the first time that an agreement has been reached within the framework of the Rome Statute of the International Criminal Court.
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• Comprehensive reparation measures for peacebuilding: The end of the conflict is a unique opportunity to strengthen the Comprehensive Victim Reparation Program that the State has been implementing. This program includes measures for: acknowledging collective and individual responsibility, taking specific reparation actions for both parties, coordinating reparations with development programs, providing psychosocial rehabilitation and implementing programs for land restitution and for the return of displaced persons. • Guarantees of Non-Repetition: The guarantees of non-repetition of violations, and of the conflict itself, are the result of implementing different mechanisms and measures from the Agreement Regarding the ictims of the Conflict. The measures that were agreed upon in point 3 (End of the Conflict) of the General Agreement Agenda are designed to achieve the final resolution of the armed conflict. In addition to these measures, all the points of the final agreement regarding Comprehensive Rural Reform, Democratic Opening for Peacebuilding, and the Solution to the Problem of Illicit Drugs, contribute to reversing the impacts of the conflict, changing the conditions that allowed violence to persist in the country, and therefore, contribute to guaranteeing non-repetition in the mid- to long-term.
Signed Peace Agreement. Image: Presidency of the Republic
Point 6: Implementation and Verification Methods 13
In order to ensure adherence to the agreement, both parties agreed to create a Comisión de Seguimiento, Impulso y erificación a la Implementación del Acuerdo Final CSIVI (Commission for Follow-up, Promotion and erification of the Implementation of the Final Agreement), responsible for following-up on the agreement’s different components, among other tasks. The CSIVI consists of three members from the Government and three FARC members. Its objective is to resolve any differences that may arise between both parties during the implementation phase, and verify that what was agreed upon is being implemented correctly. Also, as part of including a differential approach and gender focus to this commission, two Special Authorities were created for women and ethnic communities. The aim of these authorities is
13
to promote the principles of respect for equality and non-discrimination, and to ensure that other interpretations of the agreement are considered and addressed. Finally, in order to further strengthen the verification and support aspects of the agreement, this point has a strong international and external technical advisor component in which different actors play specific roles according to their area of expertise. This support includes the involvement of former presidents Felipe Gonzáles, from Spain, and Jos Mujica, from Uruguay; they are supported by the Conflict Analysis Resource Center (CERAC) and the Centro de Investigación y Educación Popular CINEP (Center for Research and Popular Education). erification processes will also receive technical support from the University of Notre Dame's Kroc Institute for International Peace Studies (U.S.).
OACP (1207). Presetnación de las Innovaciones del proceso de paz en Colombia (Introduction to Innovation in the Colombian Peace Process). Bogota. p. 19.
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2
Regulatory and Institutional Changes
With the new national government in 2010, structural changes were brought to the paradigms used to address the Colombian armed conflict. It believed that the mistakes of previous failed demobilization processes had to be resolved in order to reach a successful peace agreement and make it sustainable over time. Problems with the peace processes that began in the 1990s were therefore addressed as well as issues with peace processes from the first decade of the 21st century.
14
Because of this belief, the Government of Juan Manuel Santos knew that it had to take a comprehensive approach involving a solid institutional network that could protect the rights of ex-combatants as well as those of victims going through reparation processes. This network would have to include: acts of restitution, compensation, rehabilitation and guarantees of non-repetition.14 To do this, the government had to implement the following strategies:
Duque Morales and Torres Restrepo (2015). The Guarantees of Non-repetition as a Permanent Mechanism for the Obtaining of Peace. Accessed on January 23, 2018, from Universidad Javeriana legal sciences webpage: https://bit.ly/2Lm4gcW
Public manifestation supporting the Peace Agreement, Bogotรก. Image: APC-Colombia
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a. Strengthen the regulatory and administrative frameworks of ex-combatants' reintegration and reincorporation. b. Implement a new institutional framework that would allow to effectively serve victims of the conflict, provide land restitution when applicable and provide incentives for economic development.
c. Implement an institutional framework that would solve the structural problems that caused the conflict, mainly related to underdevelopment in rural areas. d. Empower the Armed Forces of Colombia to face the challenges emerging with the implementation of the Peace Agreement.
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The table below summarizes the main institutional reforms implemented by the national government between 2010 and 2018 in the search for sustainable peace.
1 2 3
Creation of the Reincorporation and Normalization Agency In 2011, the High Presidential Council becomes an independent agency with its own budget, allotting it more autonomy and a greater executive capacity. It is responsible for the reincorporation, reintegration and normalization of excombatants of the armed conflict.
Implementation of the Victim Assistance and Land Restitution Law (Law 1448-2011) This law establishes a regulatory framework that fully recognizes victims’ rights to truth, justice, and reparation with guarantees of non-repetition. It also establishes the foundation for creating the Victims Unit and the Land Restitution Unit.
6
Creation of the Land Restitution Unit This institution is created as part of the same Victim Assistance and Land Restitution Law (Law 1448-2011) with the objective of processing all the land restitution claims of peasants whose lands were taken during the armed conflict.
Creation of the Victims Unit
4
5
This institution is created in 2012 under Law 1448 in order to provide comprehensive assistance and reparation to victims of the armed conflict.
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7
Creation of the National Land Agency This institution is created in 2015 to fulfill the commitments of the first point of the Peace Agreement with the FARC-EP. It is responsible for implementing the rural land tenure policy formed by the Ministry of Agriculture and Rural Development, and aims to guarantee land access and use as a productive aspect of Colombia’s judicial, economic and social frameworks.
Creation of the Rural Development Agency This agency is created in 2015 to fulfill the commitments of the first point of the Peace Agreement with the FARC. It seeks to efficiently implement the comprehensive rural development plans of the Ministry of Agriculture.
Creation of the Agency for Regional Renewal This institution is created in 2015 to meet the commitments of the first point of the Peace Agreement with the FARC. It manages processes for transforming prioritized lands through institutional coordination and effective participation as part of the framework for the Land Renovation Plans. It is also the head of the pioneer program, Development Programs with a Territorial Approach (PDET).
Reincorporation and Normalization Agency Innovation #3: A comprehensive and sustainable approach to the reintegration and normalization of ex-combatants. As part of the strategy to strengthen regulatory and administrative processes in order to reincorporate ex-combatants into civilian life, and in taking previous reintegration processes of demobilized combatants into consideration, the national government decided that it was necessary to reorganize the institutional structure responsible for these processes. To do this, a technical approach was taken and a cooperative platform was created to build upon its existing structure. Also accounted for were lessons learned from processes that began in 1991 with the Presidential Reincorporation Program, a program that later became the Office of the High Council for Reintegration in 2006. Through this agency, ex-combatants from groups such as the M-19, Quintín Lame, and the Ejército Popular de Liberación (EPL, Popular Liberation Army) were reintegrated into civilian life; and in the year 2000, the demobilization process began with the AUC and combatants from the FARC and the ELN. The reintegration processes implemented by the national government has been significantly developed since the 1990s; but it wasn’t until 2006 that the foundations of the current model were established, made possible as a result of the creation of the reintegration model. This model was created after analyzing more than 30 national and international experiences and cases; but in order for it to be implemented successfully, institutional capacity needed to improve. For this reason, in 2011 and with the implementation of Decree 4138-2011, the national government established the Colombian Agency for Reintegration (ACR) (known today as
15
the Reincorporation and Normalization Agency, ARN), as an independent entity under the Presidency of the Republic. The objective of this agency was to manage, implement, coordinate and evaluate the plans, programs and projects related to reintegration policy in collaboration with competent authorities.15
Reintegration Model The reintegration model applies when a Colombian over the age of 18 is certified by the Ministry of Defense or by the Office of the High Commissioner for Peace (OACP) as an excombatant and verification has been provided that the combatant has gone through the disarmament process. Once they are verified, the ex-combatants begin a 6-and-a-half-year process called the "Reintegration Route." This route involves a six-dimension approach in which the State offers ex-combatants the opportunity to complete the reintegration process in order to overcome their vulnerable situation and re-establish themselves as Colombian citizens. These individuals accomplish this by exercising their rights and obligations and by being involved in the everyday activities of society. The aim of the Reintegration Route is to prevent dependency on the government and to aid in the adaptation of ex-combatants to a context in which they are treated equally as citizens and exercise their rights and obligations to the fullest without preferential treatment so that each reincorporated individual has the same opportunities as the average citizen. This helps eliminate the incentive of disarmament as a means to receive special treatment from the State.
Presidency of the Republic (2011). Decree No. 4138-2011. Accessed on February 20, 2018, from the regulations webpage of the Presidency of the Republic https://bit.ly/2O0wWH3
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Elimination of ilegal farming, Nariño. Image: Acción Social
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Dimensions and achievements of the Reintegration Model16 As of February 2017, 60,000 people had begun the Reintegration Route and 20,000 had successfully completed it. Half of this group is represented by the AUC and the other half by the FARC. In 2018, the number of participants from the AUC is expected to reduce considerably, as demobilization occurred halfway through the last decade. All of these participants are in the productive stage and, as a group, can be categorized as an economically active population.17 The Reincorporation and Normalization Agency’s ability for its institutional structures to reach remote regions is one of the main factors that helped achieve these figures. The ARN has 34 regional offices in 28 departments and in 224 municipalities throughout the country. It has also managed to work in 904 of the 1,102 municipalities in Colombia. 18
Personal A psychologist or reintegration specialist supports the person throughout the entire reintegration process, by keeping a check on their mental health. At the time in which this report was created, there was one reintegration specialist for every 30 people. This practice seeks to meet 90% of the needs of ex-combatants, who experience post-war psychosocial conditions such as post-traumatic stress and family problems.
each person learned by doing, always within the framework of the reintegration model. It sought for people to have the skills to integrate into the traditional educational models.
Of the individuals involved in reincorporation processes, 93% of those who began the process with mental health problems were able to overcome the issue they were struggling with, and the remaining 7% are receiving more specialized help through the Ministry of Health.
The new education model has been applied to 4,000 people in 10 different regions in the country and is designed for those who need special treatment due to their high levels of functional illiteracy. Others receive support through traditional models similar to those used in the public education system. Through this system, 22,000 people passed primary school (grades 1-5), 8,000 people passed secondary school (grades 6-9), 16,000 are in high school (grades 10-11) and 3,000 passed classes in higher education.
Educational
Productive
In partnership with The Netherlands Organization for International Cooperation in Higher Education (NUFFIC), the Ministry of Education, the National Training Service (SENA) and with the Reincorporation and Normalization Agency (ARN), an educational model was created and certified in 2013 to serve adults who lived in contexts of violence and experienced high levels of functional illiteracy. This model was primarily based on practical methodologies in which
This dimension seeks to foster skills and knowledge that can be applied in the productive sector, facilitating people’s insertion into Colombia’s economic life. Towards the middle of 2018, 650 companies in Colombia employed people who are currently or who were previously involved in reincorporation processes.
16
Currently, more than 27,000 ex-combatants have completed employment training courses
Reincorporation and Normalization Agency (2018). Dimensions of the reintegration route. Accessed on April 1, 2018, from the ARN’s main Webpage: http://www.reintegracion.gov.co/es/la-reintegracion/Paginas/dimensiones.aspx 17 Ibid. 18 Ibid.
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and 70% of people that have started the reintegration process are currently working. Also, as part of the joint responsibility strategy, 650 companies in the country support the ARN by hiring people who are currently in reintegration processes or who have completed them.
Citizenship Aimed at achieving reconciliation, and in agreement with their communities, people participating in the Reintegration Route must provide 80 hours of community service. This is performed through community development projects that foster reconciliation in regions that have been more seriously affected by violence; these projects also involve the dynamics of joint reconstruction. About 29,000 people completed their community service hours, benefiting 50% of Colombia’s municipalities. Also, 20,000 people benefited from the Community Reintegration Model, applied in 104 municipalities. Finally, 103 initiatives improved recreation and sports activities in an effort to prevent the recruitment of minors, benefitting more than 4,500 children, adolescents and youth.
process and their family, about the importance of accessing the healthcare services available to them. The purpose of this is twofold: to ensure they have access to healthcare services so they receive specialized care when they need it, and to contribute to adopting healthy lifestyle habits. Currently, 77.2% of people involved in reintegration processes are enrolled in the General System of Social Security in Health.
Security In this dimension, the ARN focuses on preventing the revictimization and recidivism of individuals who have been demobilized. Security-centered programs also help improve awareness of specific actions that threaten the security of people in reintegration processes. Eight of every ten ex-combatants do not return to engage in violence; this system costs 70% less than the prison system, which shows opposite success rates (eight of every ten ex-convicts reoffend).
Health Participants of the Reintegration Route have access to the General System of Social Security in Health. Awareness campaigns also teach the person who is participating in the reintegration
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2016 Peace Agreement with the FARC and the ARN With the Peace Agreement signed with the FARCEP, specific changes were introduced to the reincorporation processes of this armed group’s ex-combatants, which were evaluated by both parties during the agreement’s negotiation process. With Decree No. 2027 of December 7, 2016, and in adherence to the provisions of the Peace Agreement, the Consejo Nacional de Reincorporación CNR (National Reincorporation Council) was created in order to identify activities, establish timelines and monitor the FARC member’s reincorporation processes. 19 Under the oversight of the CNR, it was agreed that the activities and timelines for reincorporation would be implemented through two methods: early reincorporation and longterm reincorporation. Both methods involve the collaborative actions of the national government and the FARC. Primary successes of early reincorporation • 12,050 ex-combatants earn 90% of the monthly minimum wage, 2 million pesos are issued to each ex-combatant in the form of a single normalization payment and 8,239 ex-combatants are enrolled in the pension system. • In order to reinsert ex-combatants in the productive sector, the ARN and the Ministry of Labor provide legal and technical support to establish and implement a national cooperative for the majority of ex-combatants (ECOMUN). Also, 5,433 FARC members enrolled in an introductory course on solidarity economies. • Currently, about 4,000 ex-combatants are enrolled in SENA (National Training Service) courses and more than 3,000 participate in the Ministry of Education’s flexible educational model.
20
• In order to train and certify agricultural specialists and technicians, partnerships were built with expert entities and companies from the agricultural sector to provide educational programs through the "Learning-by-Doing" method. • If ex-combatants complete their projected levels of education and manage to create a productive project successfully, they will receive an 8-million-peso bond designated to carry out the project (these funds may also be used for a collective project). The primary achievements of long-term reincorporation . In order to establish a long-term reincorporation program with a solid foundation, the following three censuses will help identify the FARC’s needs, aspirations and situations. • Socioeconomic Census: Universidad Nacional de Colombia was responsible for conducting a socioeconomic census in order to provide the information needed to reincorporate the FARC into civilian life. The census surveyed a total of 10,015 people and the information it gathered is currently being analyzed by a technical team created by the CNR. • Educational Census: The Ministry of Education, the Norwegian Refugee Council and the FUCEPAZ Foundation (consisting of pardoned FARC members) conducted a census with rgards the educational characteristics of the population that will reincorporate. • Health Census: The Ministry of Health and Social Welfare (in collaboration with the OACP), the Nueva Entidad Promotora de Salud (an EPS) and the FARC spearheaded the process to classify the states of health of the FARC members’ located in Transitional Rural Normalization Zones and Transitional Normalization Points.
Consisting of the General Director of the Reincorporation and Normalization Agency, the High Commissioner for Peace and two FARC members.
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The findings of these census helped identify short-, mid- and long-term strategies to serve the primary needs of FARC ex-combatants that will reincorporate into civilian life. International cooperation and the ARN 20 International cooperation has played a fundamental role in achieving social and economic reintegration policies. Currently, the ARN’s good practices, experiences and outreach methodology are internationally recognized; as the Colombian reintegration process was considered one of the most thorough processes in the world by Harvard University. In part, this is due to the commitment of international cooperation to Colombia’s peace process. Beyond being a stakeholder in international cooperation, this agency also became a provider of technical cooperation for the reintegration and reincorporation of demobilized ex-combatants. More specifically, with the contributions made by the United States Agency for International Development (USAID) and the Government of Sweden, initiatives in target communities were carried out in order to create new dynamics for coexistence; economic reintegration models were created and implemented; and through the Reintegration Route, differential approaches were taken in regard to gender, ethnicity and disability. The European Union also contributed to fostering the development of intervention strategies for
communities in order to strengthen their social fabric. This helped to reduce stigmatization and was beneficial to reintegrating ex-combatants to civilian life. The Netherlands-based NUFFIC organization was a key partner in the development of the current adult education model that is being implemented nationwide in collaboration with the Ministry of Education. Contributions to reintegration policy are also worthy of noting: the official development assistance projects of the World Bank, the United Nations, the German Development Bank (KWF), and the Governments of France and the United Kingdom. Through South-South Cooperation, the ARC established a strategy to strengthen capacities with knowledge transfer and reintegration methodologies. One of the primary mechanisms of this strategy were the six tours of South-South Cooperation organized by the ARN and the Colombian Presidential Agency of International Cooperation (APC-Colombia). These agencies facilitated the dialogue and the exchange of good practices on peacebuilding with representatives from over 60 countries. Projects were also created in relation to technical exchange with Argentina, South Korea, El Salvador, the Philippines, Indonesia, the Democratic Republic of the Congo and Thailand.
21
AHarvard University (2015). A hard look at war’s reparations. Accessed on May 20, 2018, from The Harvard Gazette newspaper Website: https://bit.ly/2M4AiKG Public manifestation supporting the Peace Agreement, Bogotá. Image: APC-Colombia
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Victims' reparation and land restitution Law 1448-2011: Victims and Land Restitution Innovation #4: The comprehensive acknowledgement of the victims of the armed conflict and new institutional structures to provide them with adequate reparations The purpose of Law 1448-2011 is to establish a set of judicial, administrative, individual, collective, social and economic measures that benefit victims of the armed conflict Colombia has endured for decades. These measures are effectuated through a framework for transitional justice that enables victims to effectively exercise their rights to the truth, justice and reparation with guarantees for non-repetition, recognizing and honoring their situation through the realization of their constitutional rights.22 This law was approved by President Santos in collaboration with the Secretary-General of the United Nations and Ban Ki-moon and it is one of the national government's main achievements in relation to the Colombian armed conflict. As stated by the former director of the Victims Unit, Paula Gaviria, "This reparation project is more inclusive, ambitious and complex than any other reparations program" on a global level. Through this judicial mechanism, the State makes a strong statement about its political will to promote and continue victim reparation efforts with its legal support and strong financial assistance.23 Innovative Aspects of Law 1448-2011 24
•
It takes more types of victimization into consideration from a longer period of time than any other law in the world. • Reparation is not dependent on verifying the events that caused victimization. This support 22
is unprecedented in the history of the nation, as it recognizes the need to acknowledge victims; declares the events they experienced as unacceptable; and, above all, it helps facilitate the development of projects and compensation payments. • Due to the combination of its economic, symbolic, psychological, educational and political strategies in serving the population subject to reparations, this law includes response mechanisms characterized for their unprecedented level of comprehensiveness. • It includes and transforms many of the reparation efforts from Justice and Peace Law 975-2005, and it gives institutional continuity to nearly a decade of addressing reparation issues in Colombia. • The institutional framework used to implement the Victim’s Law was able to establish a presence in several different regions throughout Colombia, it was successful at making the registration and assistance process for victims and ex-combatants efficient, and it managed to systematize the information of those declaring themselves as victims, all of which, in turn, allowed for close monitoring and smooth implementation. This led to the establishment of the Victims Registry (RUV, Registro Único de Víctimas),25 a special administrative unit of the Victims Unit and a com-
Victims Unit (2011). Law 1448-2011. Accessed on January 24, 2018, from the regulations webpage of the Victims Unit: https://bit.ly/2mwdsO0 23 Angelika Rettberg (2015). Victim's Law: Achievements and challenges. Accessed on January 24, 2018, from the opinion column of the El Espectador newspaper Website: https://bit.ly/2zSPhT8 24 Ibid. 25 The RUV can be accessed at: https://rni.unidadvictimas.gov.co/RUV 26 Victims Unit (2011). Decree 4802 of December 20, 2011. Accessed on March 20, 2018, from the regulations webpage of the Victims Unit: https://bit.ly/2NwRlCb
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prehensive system with budgetary and judicial autonomy that is part of the Department for Social Prosperity. 26
• This
law helped develop Colombia’s technical capacity and to provide anything from psychological support to investment assessments for the variety of communities receiving reparation resources.
• The law also takes the fiscal protection of the
Nation into account by declaring that reparation expenses are based on fiscal sustainability criteria. One of the most important aspects of this law is the institutional structures it creates to implement reparation efforts and programs for victims of the armed conflict; of which the Victims Unit and the Land Restitution Unit are entities both worthy of mention.
Unit for the Conflict Victims Innovation #5: A new entity for implementing policy to help victims and provide reparation. The Policy for Comprehensive Victims’ Assistance and Reparations was developed as part of the framework of the Victim’s law and CONPES 3726-2012. It was designed and implemented by the Victims Unit. With the main purpose of making reparations to victims of the Colombian armed conflict and ensuring the protection of and respect for their rights, this policy began to take shape in 2011. This was one of the national government’s most ambitious goals, as it would need to
provide comprehensive assistance to more than 6.6. million victims (more than 13% of the country’s population) and it would have to change citizens’ perceptions of victims towards which indifference and stigmatization were the prevailing sentiments. Designing and implementing this policy prior to the end of the armed conflict was an innovative approach that had never before been seen in the world; it also allowed for victims to be placed as the central focus of solution to the conflict.
Main Aspects of the Policy for Comprehensive Victims’ Assistance and Reparations Colombia implemented a comprehensive victims’ assistance and reparation model in the context of a conflict that was prolonged, massive (in terms of the number of citizens that need assistance) and complex (as a result of the diverse nature of impacts on citizens). The following highlight the most important aspects of the Policy for Comprehensive Victims’ Assistance and Reparations.
1. Transversal strategy
communication
Implementing this model was an enormous challenge for the Victims Unit as it sought for its victims to be informed and empowered, for there to be alignment among authorities, for the
Victims Unit to have motivated human capital and staff, and for a country that saw its victims as capable and resilient people deserving of acknowledgement and reparations.2. Integralidad del modelo de reparación para las víctimas
27
Documents drafted and approved by the National Council for Social and Economic Policy (CONPES). This council is further addressed in Chapter 6.
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2. Comprehensiveness of the victims’ reparation model The assistance model designed by the Colombian Government is based on the notion that victims are not passive subjects that depend on the State, but rather, political subjects. They are participatory and social agents whose decisions have impacts on the life of their community. As subjects, they have rights and obligations, and as individuals they are different from each other and require differential and personalized treatment. Finally, they must be acknowledged by civil society and by the State in order for reconciliation and reparation to be successful. The opinions and participation of victims in their own processes is therefore essential. No two victims are the same, and this is why the reparation model contemplates the different impacts of the armed conflict (including internally displaced victims and victims abroad) as well as different types of reparations – while keeping the requirements to be considered a victim flexible. 28
3. A detailed and mass victims registry The Colombian Government has implemented the most complex and detailed registry of victims in the world: its nature and complexity allow for a detailed record of data on the victims to be kept, including their unique individual characteristics and a history of the issues they have experienced; it can cross-reference information with the different State entities that are also involved in implementing this policy; and it includes enough information to design, implement and make corrections to programs and strategies – the result of its ongoing updating
process that even involves making home visits to the country's most remote areas. This registry also helps to promote aspects of historical memory and symbolic reparation. Currently, the Victims Registry includes the detailed data on more than 8.6 million victims, 6.6 of which are subject to reparation. At the beginning of 2018, 800,000 victims received compensation as the result of an administrative process and 350,000 displaced victims overcame a situation of vulnerability, a figure that is expected to reach 500,000 by the end of 2018.29
4. Access to services and state outreach CIn facilitating the reparation process, the State designed a victim outreach strategy by establishing large regional assistance centers and assistance units in addition to sending mobile units to some of the country's most remote areas. Through these three types of systems, citizens can receive guidance and support and access all the services and institutional programs designed specifically for victims. These systems were reinforced with the comprehensive communication strategy in order to keep victims informed and begin to establish institutional legitimacy between them and the State, a necessary aspect for repairing the breaches and loss of trust that occur in armed conflict Currently, there are 24 regional assistance centers in operation, 7 that are being built, and 35 victim assistance units distributed strategically throughout the country. Additionally, there is also a telephone contact center that provides guidance to citizens 24 hours a day.30
28
Harvard University (2018). Evaluation of Integral Reparations Measures in Colombia. Accessed on February 20, 2018, from the USAID reports Website: http://pdf.usaid.gov/pdf_docs/PA00KSXQ.pdf
29
Victims Unit (2018). Unique Victims Registry. Accessed on February 20, 2018, from the Victims Unit Website on statistics: https://rni. unidadvictimas.gov.co/RUV
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5. A psychosocial approach to victim assistance The approach taken with victim assistance is not just specific to individuals, it also includes an essential community-based aspect. The intrinsic characteristics of the conflict are a reflection of its impact on collective groups and communities. In the Colombian conflict, entire populations were deeply impacted which is why assistance and reparation programs were designed to work together with communities to reconcile and recover commonplace cultural activities that were negatively affected or potentially even lost due the to the strong dynamics of self-protection and internal changes in terms of how individuals relate to one another. The community rehabilitation programs implemented to deal with such issues are recognized as one of the most innovative aspects of the implementation of the Policy for Comprehensive Victims’ Assistance and Reparations. This initiative seeks to rebuild relationships among community members, especially among victims, ex-combatants and vulnerable populations; and between these groups and local and national institutions in order to take steps toward a peaceful coexistence, socioeconomic inclusion and reconciliation.
6. Victim participation mechanisms Policy on comprehensive reparations for victims cannot be successful if it does not involve the
victims themselves at regional and national level in making policy decisions. As such, the Victim’s law establishes new mechanisms of participation to include victims of the armed conflict in regional, departmental and national decision-making processes. Victims Participation Roundtables: The Victim’s Law enacts the creation of Victims Participation Roundtables at municipal, and departmental and national levels. These roundtables are consultative bodies that evaluate and propose policy development recommendations to regional, departmental, and national authorities. These roundtables must be comprised of victims in equal representation of the different types of impacts affected upon them and of their different characteristics, maintaining a 50% participation of women. Currently, about 90% of the country's municipalities have established roundtables that are in operation.31 Regional Transitional Justice Committees: These committees are present at municipal, departmental and national levels and mainly consist of representatives from corresponding government authorities as well as two representatives from the Victims Participation Roundtables. The purpose of these committees is to include all victims’ assistance and reparation policies from the National Development Plan (or any equivalent body) in municipal and departmental entities.32
30
Victims Unit. (2018). Regional Attention Centers. Accessed on February 20, 2018, from the Victims Unit citizen services Website: https:// bit.ly/2LowhR2
31
Victims Unit (2011). Law 1448-2011. Accessed on February 20, 2018, from the regulations Website of the Victims Unit: : https://bit. ly/2gxDRbo
32
Ibid.
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International Cooperation and the Victims Unit With the development of the Policy for Comprehensive Victims’ Assistance and Reparations and the establishment and implementation of the Victims Unit, the contributions of international cooperation have been key in terms of both financial and technical assistance. With regards to financial contributions, USAID was the primary cooperating agency, whereas for technical assistance, there were
many cooperating agencies, including: the International Committee of the Red Cross (ICRC), the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), the Norwegian Refugee Council, the Economic Cooperation Organization (ECO), and the United Nations High Commissioner for Refugees (UNHCR), among others. Also worthy of mention are the governments of Sweden, Spain and Japan as well as contributions made to the Victims Unit by the World Bank Peace Fund for Colombia.
Land Restitution Unit Innovation #6: Colombia: A pioneer in land restitution One of the characteristic aspects of the Colombian armed conflict is land dispossession and forced displacement of hundreds of thousands of peasants and farmers from their land by illegal armed groups. To address this issue, Law 14482011 established a joint administrative and judicial procedure within the framework of transitional justice to restitute and formalize land to victims of any land dispossession and forced displacement occurring after January 1, 1991. The following is a detailed description of the different stages of this process which included the coordinated participation of social, private and government stakeholders. Initial or administrative stage: The purpose of this stage is for people who are victims of land dispossession or forced abandonment to file claims with the Land Restitution Unit 33 in
33
order to include them in the Land Restitution Unit Registry. The unit then performs respective studies as part of the procedural requirements to continue on to the judicial stage. Judicial stage: In this stage, judges analyze cases to issue an order that encompasses all of the judicial aspects that may affect the respective plots of land. During this stage, the unit can also represent and provide support to victims, it is responsible for administrating the productive projects program for beneficiaries of land restitution processes, and is also responsible for issuing financial compensation if it is not possible to provide restitution for the land claimed by the victim. These judicial aspects, as with other programs that address issues other than those involving the restitution and legalization of victims’ lands, are not only innovative in terms of their approach, but they are also bold institutional policy because for the first time in many years, they actually clearly acknowledge the victims of violence in Colombia.
Land Restitution Unit (2015). About us Accessed on January 24, 2018, from the Land Restitution Unit Webpage: https://bit.ly/1OBzOkQ
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Agricultural lands, Boyacรก. Image: Santiago La Rotta
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The innovative aspects of the restitution process are rooted in the following factors established through traditional justice:
•
Victims must demonstrate that they were wrongly dispossessed of their land and the Land Restitution Unit (LRU) must offer their complete institutional capacity to assist them in submitting the technical evidence that judges need to make restitution decisions.
• In accordance with the guidelines in the fra-
mework for transitional justice established by the Special Jurisdiction for Peace (JEP), certain stipulations exist that make this an expedited process over ordinary systems of justice.
• Judges have
the authority to follow up on these processes through people referred to as "judicial operators" to ensure that the orders stipulated in the land restitution and land formalization orders are adhered to.
There are currently very few cases throughout the world of land restitution processes that derive from an armed conflict. As such, Colombia therefore designed all of its own procedures and institutional frameworks, making the country a global pioneer in the design of the legal frameworks for land restitution. Colombia is now considered a worldwide reference for countries with similar problems and it has already shared its experiences with many African and Latin American countries such as Argentina and Honduras.
34
It is important to clarify that the LRU operates in regions that are secure enough for beneficiaries of land restitution to return to; this ensures that the measures establishing the conditions that guarantee the stability of their return are strong. The Land Restitution Unit and other State entities therefore serve as a support network of productive project programs, housing and financial benefits that assist beneficiaries comprehensively. Lastly, it is important to emphasize that as a positive outcome of the Peace Agreement with the FARC, the risks and presence of illegal armed groups (mainly the FARC) were dispelled from many of the country's regions, allowing for the LRU to operate. The actions of the LRU would not have been viable during the period of conflict with the FARC. The departments where conflict was dispelled that now have a special presence of the LRU include Caquetá, Guaviare, Huila, southern Meta, Nariño, Putumayo and southern Tolima, which are all regions where stable access was previously difficult.
ACHIEVEMENTS As of December 31, 2017, the Land Restitution Unit received more than 110,000 claims on behalf of 76,000 landowners. Of these claims, 80,631 were accepted by the Ministry of Defense, 57,284 of which completed their administrative procedures with the LRU and 21,561 of which were entered into the Land Restitution Unit Registry. Of this last group of claims, 14,763 are currently in legal proceedings with judges and 6,819 have already been issued restitution orders, representing a total of 234,206 hectares of restituted land from over 33,000 beneficiaries nationwide. The first restitution orders were issued in 2013.
Land Restitution Unit (2018). Land restitution statistics. Accessed on January 24, 2018, from the goals and indicators Website of the Land Restitution Unit. https://bit.ly/1WPerDr
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Land Distribution and Rural Development One of the historic reasons behind the Colombian armed conflict was the unequal distribution of land and the limited access that peasants had to them, a problem that was exacerbated by the lack of State presence in the country’s rural areas. These situations fostered an environment in which peasants, in dissent, demanded better conditions. In order to ensure sustainable and lasting peace, the national government mandated a series of reforms to implement policies and projects aimed at resolving these problems. In 2015 and 2016, the management of land ownership processes and rural development programs was therefore
thoroughly restructured. In order to make this restructuring possible, significant institutional changes were made in the rural sector beginning with the dissolution of the Colombian Rural Development Institute (ENCODER). This led to the creation of the National Land Agency (ANT), the Rural Development Agency (ADR), and for the regions most affected by conflict, the Agency for Regional Renewal (ART). Together, the mission of these agencies is to address the historical and structural causes behind the armed conflict in Colombia, ensuring the achievement of sustainable peace.
National Land Agency (ANT) Innovation #7: Formalization of Colombia’s rural lands with new methodologies The National Land Agency (ANT) is the entity responsible for implementing policy on rural land tenure planning created by the Ministry of Agriculture and Rural Development. The objective of the agency is to promote productive development and full legal certainty for property owners. As a pathway towards progress for rural Colombia, the agency was created on December 7, 2015 through Decree 2363. Its main premise is that when peasants are able to own the lands upon which they work, they can then access the rural development programs and financial
and technical assistance offered by the national government. This notion is established to fulfill point one of the Peace Agreement with the FARC on comprehensive and rural development. The ANT provides plots of land to people who do not have land, it formalizes the property of those without property titles, it protects special environmental interest areas, it establishes agrarian jurisdiction for land conflicts and it provides support and guidance to Colombia’s ethnic communities. All of these processes are overseen by the Lands Inspector in order to avoid potential acts of corruption. .
COLOMBIA HAS CHANGED
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Coffee plantation, Tolima. Image: CafĂŠ de Colombia
The ANT works towards achieving two central national goals 35 1. Formalize 7 million hectares, supporting peasants throughout the entire process until they receive a property title and issuing land to peasants without land.
2. Formalize 3 million hectares in 10 years to
include it in the National Lands Fund.
These main goals, related to the Peace Agreement, are achieved through three mechanisms led by the ANT. They include:
1. Helping citizens to request land ownership
where they are currently living.
2. Eliminating the congestion of inefficient processes from previous entities. 3.
Providing on-the-ground outreach of institutional structures. This is the most noteworthy mechanism as it consists of designing a comprehensive methodology to assess, plan and take actions with land issues in Colombia. In 2019, it will begin a massive sweep methodology with the goal of formalizing all land in Colombia by 2030. It is important to note that the methodology that will be used originates from five pilot projects that took place in 2017 in different regions throughout the country with the support of USAID, the French Development Agency (AFD), the World Bank, the government of Holland and the Governor’s office of Antioquia.36
Decree 902-2017: These three mechanisms were introduced with Decree 902-2017. They reorganize and reduce bureaucratic processes for citizens requesting land ownership to just one simple, online process. This decree also established the 35
National Lands Agency (2017). Opening introduction to the entity. Bogota.
36
National Lands Agency (2015). Decree 2363 de 2015. Accessed on January 24, 2018, on the ANT regulations Website: https://bit.ly/2LAEw9p
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National Lands Fund, a fund that is sustained by public land to be donated by the government to peasants without land and that creates information systems for providing a general map of land access and land use on a national level.37 Lastly, the ANT implemented transparency and anticorruption mechanisms to eliminate problems that occurred in public entities responsible for land ownership processes in Colombia in the past. While the ANT has 15 regional offices, a regional committee is responsible for reviewing the decisions regarding each plot of land in detail and in Bogota. Also, the leaders of each regional office are selected through a process for guaranteeing transparency created by the European Union. Cases are also organized in order of priority through an automated computerized points system.38 Currently, the ANT’s information systems are being reorganized, simplified, and joined into one information system. Also, as a result of the ANT, the Observatorio de Restitución y Regulación de Derechos de Propiedad Agraria (Observatory for the Restitution and Regulation of Agricultural Property Rights) was created. This entity consists of a technical and independent investigation program that monitors the land market; it also provides theoretical and technical support to implement land formalization policy.
ACHIEVEMENTS Since this entity began operations in 2016, its outcomes have been very positive: The National Lands Fund currently has one million hectares of public land that will be issued to peasants without land; and in 2017, 9,781 plots of land were formalized as part of its rural development
efforts. Also, more than 34,600 hectares were classified by ownership, occupation and land use, and over 168,000 families from ethnic communities were beneficiaries of the ANT’s efforts.40 International Cooperation and the ANT In Colombia, a land formalization process of this magnitude had never before been conducted; however, similar experiences throughout the world have occurred that serve as inspiration for the Colombian process. The exchanges of knowledge and good practices through international cooperation are therefore a key element for the ANT. The exchanges of technical knowledge were mostly conducted with Mexico due to the predominantly rural conditions similar to both countries. Exchanges were also conducted with Italy, due to their territorial approach, and Thailand, due to the speed with which they formalized their land and to their additional experience in replacing illicit crops. South-South and Triangular Cooperation were also very important for the agency. From 2016 through 2018, the ANT developed an international cooperation and strategic alliance plan that served to: 1) develop sustainable strategies for creating valuable relationships and leveraging resources, 2) establish networks, with the support of international cooperation, to strengthen the country and leave installed capacities in the intervention regions, and 3) identify different experiences and lessons learned from processes involving the implementation of public policy and legislation on land in other countries. All of this provided the ANT with useful information to form and implement its public policies in order to identify the role of international cooperation efforts, guide management and promote intersectoral coordination.
37 38
National Lands Agency (2015). Decree 902-2017. Accessed on January 24, 2018, on the ANT regulations Website: https://bit.ly/2zSRAFM National Lands Agency (2017). Transparency and access of public information . Accessed on January 24, 2018, on the ANT transparency Website: https://bit.ly/2zTv1Rl 39 Lands Observatory (2017) About us. Accessed on January 24, 2018, on the Land Observatory Website: https://bit.ly/2uBdmJf 40 National Lands Agency (2018). Management Report 2017. Bogota. p. 12.
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Agency for Regional Renewal (ART) Innovation #8: Community-driven development to build trust and legitimacy
The Agency for Regional Renewal is the third entity comprised in the institutional architecture that was created at the end of 2015 to transform Colombia’s rural sector and to close the gaps between rural and urban areas. Specifically, the agency aims to coordinate the efforts of national and regional entities in rural areas affected by the conflict. The Colombian Government establishes these areas as priority through plans and projects for regional innovation. This agency also fosters the economic and social recovery of these areas and strengthens their institutions, so they may integrate sustainably into the country’s development.41 This new agency began operating at the beginning of 2017 in 170 municipalities identified as priorities from 16 regions throughout the country. It uses a new approach to improve development, basing it on the work of communities. The agency’s objective is for government institutions to have a presence in regions where it was previously limited or nonexistent as a result of the armed conflict with the FARC. The focus of this new approach is entirely regional and it requires all decisions that are made to be reached as a community. The ART also seeks to guarantee the fundamental rights of each person and provide them with basic public services. As a result of this approach, legitimacy and trust in State entities will be restored among rural inhabitants; citizen participation and the notion of a participatory democracy will improve; and the government’s institutional structures will strengthen throughout Colombia’s different regions.
41 42
The ART has two main lines of action: : 42
1.
Immediate Impact Plan: The purpose of this plan is to implement strategies in 50 of the country’s most critical municipalities in terms of demobilization and FARC ex-combatants. Its strategies will also be implemented in municipalities that have been most seriously affected by illicit crops with severe rural-specific issues. These municipalities are where immediate efforts must be targeted in order to provide institutional support to inhabitants that endured decades of suffering as a result of the conflict. This plan has two main strategies. The first is Plan 50/51, which improved 50 kilometers of tertiary roads in specific areas identified by the community, the Mayor’s Office, the National Roads Institute (INVIAS) and the ART. The second strategy is the Pequeñas Obras de Infraestructura Comunitaria PIC (Small Projects for Community Infrastructure strategy), which seeks to establish trust and promote smooth interactions between the community and this new State presence.
2.
The design and establishment of Development Programs with a Territorial Approach (PDETs): The objective of the PDET is to establish a 10year development plan for the 170 municipalities identified as priority zones, located within the 16 regions. By the end of 2018, the goal is to have all the action plans ready for the regional transformation of all these prioritized municipalities. Similar to the Immediate Impact Plan, the PDETs are developed in collaboration with local communities, thereby aiding in reduced corruption; this is because when the community is involved, levels of accountability increase.
Agency for Regional Renewal (2017). About us. Accessed on January 24, 2018, on the ART Website: : https://bit.ly/2mvsRhv Agency for Regional Renewal (2017). About us (About Us). Accessed on January 24, 2018, from the ART Website: : https://bit.ly/2mvsRhv
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San José de Oriente Town, Cesar. Image: UN Colombia
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ACHIEVEMENTS While the ART is a very new agency, it has managed to establish itself quickly and achieve significant results since its creation. In part, this is because the ART consists of a solid team of 10 people located in the capitals of each department, as well as either four or five officials that work in each of the municipalities identified as priorities. Along with SENA and the Colombian Family Welfare Institute (ICBF), this makes it one of the government institutions with the greatest regional presence. In 2017, Action Plans began to be created in 45 municipalities and between January and February of 2018 another 122 were created. PIC projects started in July 2017: by the beginning of 2018, 135 projects had been completed, 191 projects were in process, and by mid-2018, 1,000 projects are expected to be completed. Part of the ART’s strategy is to strengthen Community Action Councils and local social organizations. The purpose of this is to not only involve these councils and organizations in participatory development and in prioritizing needs, but to ensure they implement other PIC projects, commit to monitoring and maintaining them, and foster the local development of their regions. By mid-2018, between 250,000 and 300,000 people are expected to participate in preasambleas comunitarias (rural community councils open to the public), steering committees, and commissions, both at municipal and regional levels. The objective of these groups is to make decisions, designate the priority of different projects, and develop Action Plans for Regional Transformation (PATR) through joint participation.
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COLOMBIA HAS CHANGED
International cooperation and the ART Throughout the process of its recent establishment, the Agency for Regional Renewal received international support and consulting from several countries. The German Cooperation Agency (GIZ) contributed technical knowledge to develop a community participation model. Similarly, USAID provided technical support for the community participation of ethnic groups and also provided financial support in order to: strengthen Community Action Councils, implement Small Projects for Community Infrastructure (PIC), strengthen community radio stations, improve productive projects and supplement funding for the 50/51 Plan for tertiary roads. Also, cooperating countries such as the United Kingdom were key to supporting the process of inviting communities to participate in the development of the PATR. Turkey also contributed by endowing 13 schools in seven municipalities, Spain is a partner to the departments of Nariño and Chocó and supports the addressing of ethnic and gender issues, and Sweden and Canada provided technical knowledge to the ART. Both the United Nations Multi-Donor Fund and the European Union Trust Fund required all the projects for which funding was requested to coordinate directly with the ART and its programs. The purpose of this request was threefold: to avoid the duplication of efforts in Colombia’s different territories, to direct resources towards needs identified by communities (within the framework of participatory development for the Action Plans for Regional Transformation), and for each project to contribute to the implementation of the PDETs.
Fondo Colombia en Paz (Colombia in Peace Fund) Innovation #9: Financial innovations to ensure speedy compensation payments In order for the post-conflict to be sustainable, one of the structural requirements of the Peace Agreement is to promote the presence and efficient actions of the State throughout the nation, especially in those regions affected by the absence of an efficient public sector and by the internal armed conflict itself.
• It provides incentives for the private sector to
To recover from this situation and promote the outreach of institutional structures to Colombia’s most remote areas, a financial mechanism is needed that can manage and implement funds efficiently and expedite the issuance of resources allocated for post-conflict. To address this, the national government created the Colombia en Paz Fund in April 2017, which is structured in accordance with the guidelines of CONPES 3850-2015. The fund functions as an independent trust fund, is recognized by the law as a private legal entity, and has its own independent board of directors. This fund also coordinates other financial instruments created for peacebuilding initiatives.43
• The fund is administered by four trust compa-
Innovative aspects and transparency of the fund: 44
• The international firm Ernst & Young was hired
• The fund consists of resources from the na-
• The fund does not have its own administrative
tional budget, royalties, and private sector resources, which helps to ensure that resources are implemented efficiently and quickly. The fund is also based on the same infrastructure as the Fondo de Adaptación al Cambio Climático (Climate Change Adaption Fund) and the Fondo de Financiamiento de la Infraestructura Educativa (Educational Infrastructure Fund).
participate and coordinates national, departmental, municipal and community efforts.
• It has a seven-member board, the majority of which (4 members) are independent representatives from the private sector.
nies from the private sector.
• The Colombia Office of the Comptroller has
a special post-conflict monitoring team that oversees and controls the management of resources allocated to the fund.
• An observatory for citizen transparency was
established in regions throughout the country that receive the most resources from the fund, and all contracts are published in the Portal de Transaprencia para la Paz (Transparency for Peace Portal) in order to ensure that citizens have access to it.
to oversee the fund’s contracts and actions.
structure; its resources and projects are implemented by Colombian state agencies.
43
Presidency of the Republic (2017). Decree 691-2017. Accessed on January 24, 2018, from the Presidency of the Republic regulations Website: : https://bit.ly/2L96z3Q 44 Presidency of the Republic (2017). Presidente firmó decreto que crea el Fondo Colombia en Paz (President Signs Decree to Create the Colombia en Paz Fund). Accessed on January 24, 2018, on the Presidency of the Republic news Website: : https://bit. ly/2oOnjNT
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The fund began to operate in mid-2017 with $750 billion pesos (approximately US$250 million) provided by the Colombian State. By the end of May 2018, the fund had been in operation for eight months and had a capital of $884 billion pesos (approximately US$300 million), $752 billion (85%) of which are already allocated to different
post-conflict programs, and $409 billion (46%) of which were already paid to contractors for their progress made in implementing projects and programs
Implementation of Incentives for ZOMAC (Areas Most Affected by the Armed Conflict) Innovation #10: Progressive tax incentives to stimulate the business sector With the aim of finding new mechanisms to promote the development of remote regions in Colombia where the conflict has left greater impacts, the national government established Decree 1650 for regions referred to as the Areas Most Affected by the Armed Conflict (ZOMAC). This decree grants tax benefits to the businesses and new companies that perform their economic activities in these areas.45 The motivation behind providing these benefits is to accelerate the growth and development of those regions that, for decades, were hit the hardest by violence. They also provide incentives to business owners throughout the country to occupy these areas that have historically been isolated by the conflict, offering them tax benefits that apply only to ZOMAC areas.
Developed by the Ministry of Finance and Public Credit, this strategy includes 344 municipalities from throughout the country and it will benefit the following sectors: agriculture, commerce, transportation services, construction, real estate, tourism, education, healthcare, automobile dealerships and telecommunications.46 The primary benefit to business owners who bring their company to a ZOMAC area is a progressive rate income tax that is granted for a period of 10 years starting in 2017. This rate varies depending on the size of the company:47
Progressive tax benefits in ZOMAC areas
Year
Micro-enterprises & small businesses
2017- 2021 2022-2024 2025-2027 2027 After
45
0% 25% 50% 100%
Medium-sized and large enterprises
50% 75% 75% 100%
Presidency of the Republic (2017). Decree 1650. Accessed on May 15, 2018, Presidency of the Republic news Website: : https://bit. ly/2kZtr9a 46 Portafolio (2017). ¿Cómo acceder a beneficios tributarios a través de las Zomac? (How to get tax benefits through Zomac). Accessed on May 15, 2018, on the Portafolio newspaper Website: https://bit.ly/2LyyVk9 47 Presidency of the Republic (2017). Decree 1650. Accessed on May 15, 2018, Presidency of the Republic news Website: : https://bit. ly/2kZtr9a
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These benefits were applied to municipalities in Colombia where the multidimensional poverty index was greater than 49% and also where institutional presence was low; in other words, they apply to municipalities that lack the capacity to generate their own income. They were also applied to municipalities where the conflict over
the previous 10 years was particularly intense and to municipalities that are farther away from their municipal capitals. By May 2018, as the result of Decree 1650, 407 companies were established in ZOMAC municipalities.
407 Companies created in areas most affected by the armed con ict (ZOMAC) LA GUAJIRA
MAGDALENA
2
CESAR
11
BOLÍVAR
5
SUCRE
3
NORTE DE SANTANDER
25
SANTANDER
6
ANTIOQUIA
80
ARAUCA
31
CALDAS
3 1
CASANARE
16
RISARALDA
META
7 18 64
QUINDÍO
3 34 34
10
GUAVIARE
VALLE DE CAUCA
CAQUETÁ
HUILA
2
CAUCA
MARIÑO
19
TOLIMA
11
PUTUMAYO
CUNDINAMARCA
5
15
Source: Ministry of Finance and Public Credit
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Works-for-taxes modality
48
Innovation #11: Substituting income tax payments for companies with projects in OM C areas Obras por Impuestos (Works-for-taxes) is an innovative mechanism that was passed with the tax reform of 2016. It allows for income tax to be paid by investing in social projects in the Areas Most Affected by the Armed Conflict (ZOMAC). This policy proved to have satisfactory results in improving the implementation and quality of infrastructure projects in other countries such as Peru, where it has been in effect since 2007. In Colombia, this mechanism can be used by companies whose gross revenue is equal to or greater than $1,071,000 pesos for the year 2017 (approximately US$350,000).
There are two means by which this mechanism can be accessed • Payment Method 1: For investments amounting up to 50% of the company’s income tax from one fiscal year.49 Must be used to implement priority projects or social projects in ZOMAC municipalities. • Payment Method 2: For investments that exceed 50% of the company’s income tax in a fiscal year. In this case, the taxpayer may apply the discount to the income tax of a fiscal year (in the amount of up to 50% of their income tax amount) in equal installments for a period of 10 years. This period may be extended for 5 years if
the company experiences tax losses for the tax year following the project’s approval. The Agency for Regional Renewal (ART) has a web module with a project bank in which one or several taxpayers can submit and select project initiatives to be developed. The national government provides taxpayers with support and follow-up for these projects in accordance with the type of project:
Types of projects proposed and the entity responsible for reviewing the project’s viability and approving it. Type of project
48 49
Entity responsible for providing support and follow-up
Road infrastructure
Ministry of Transportation
Public education
Ministry of National Education
Public health
Ministry of Health and Social Welfare
Drinking water or sewage systems
Ministry of Housing, Cities and Territories or the Ministry of Agriculture and Rural Development
Energy
Ministry of Mining and Energy
Post-conflict (2017). Incentivos para el sector privado en la construcción de paz (Incentives to the Private Sector for Peacebuilding). Accessed on May 15, 2018, on the Ministry of Post-conflict Website: https: bit.ly 2hWQ51p Fiscal ear: Period for which taxes must be filed and paid.
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ACHIEVEMENTS In the first call for bids conducted by the Ministry of Finance towards the end of 2017, 23 projects from 30 companies amounting to $220 billion pesos (approximately US$78 million) were approved, covering nearly all $250 billion pesos allocated by the Ministry of Finance for this call for bids.50
220.000
billion pesos (approximately US$78 million)
Institutional innovation and the participation of Colombia’s Armed Forces Innovation #12: Transformations for the efficiency, modernization and implementation of good practices Since the Colombian government started the peace process, the Armed Forces have played a key role and have actively participated both on the battlefield and at the negotiating tables. First, the Military Forces had to show that they were willing to negotiate, and second, they had to collaborate in the process of negotiating and planning demobilization and post-conflict. In adopting the advice of the Israeli Prime Minister Yitzhak Rabin, President Santos followed his principle of, "We must fight terrorism as if there's no peace process and work to achieve peace as if there's no terror." This vision was achieved by sending two high-level plenipotentiary negotiators from the Military Forces to participate in the negotiating tables in Havana. This helped initiate the creation of: protocols for returning vereda (rural district) zones to normalcy, protocols for disarmament, and safety mechanisms for ensuring safe demobilization and reintegration. The Military Forces also served to guarantee cordial interactions between the authorities and ex-guerilla members when staying in demobilization areas.
The active participation of the Military Forces also extended to the Special Jurisdiction for Peace (JEP), where they were involved in developing the entire jurisdiction. This is a first in the history of peace processes throughout the world given that in the majority of conflicts, when new institutions are created, military forces tend to withdraw and not participate. In the case of Colombia, the human talent of an entire pillar of the Colombian State was involved, giving legitimacy to the Peace Agreement both within this military institution and externally. The biggest achievements of the Armed Forces of Colombia are not a noteworthy part of the peace process; it is also important to mention that as a result of the tireless efforts of Colombian soldiers towards the end of the first decade of the 21st century, insurgent groups lost strength and had to retreat, and the Colombian government was able to bring the FARC to the negotiating tables
50
Semana (2018). Obras por impuestos, la revoluciĂłn para el posconflicto (Works-for-taxes: A revolution for Post-conflict). Accessed on May 15, 2018, on the Semana news magazine Website : https://bit.ly/2KkUyUa
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Throughout these years, the FARC was confronted with some of the hardest hits in their history. First, on October 24, 2007, the commander of the 37th front, alias Martín Caballero, was killed during Operación Alcatraz, Following this, came the death of Tomás Medina Caracas (alias Negro Acacio) on September 2 through Operación Sol Naciente. On March 1, 2008, Raúl Reyes, the commander of the FARC’s Southern Bloc, was killed in Operación Fénix. During these years, the country also witnessed the demobilization of thousands of guerilla members and, in May 2008, alias Karina, the commander of the 47th front, surrendered to authorities.
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Finally, on July 2, 2008, the Armed Forces of Colombia achieved one of their greatest accomplishments: Operation Jaque. With a meticulously designed strategy, and without firing a single bullet, this operation resulted in the successful rescue of presidential candidate Íngrid Betancourt, three people from the U.S. and 11 members of the Colombian police and military who had been kidnapped –in some cases– for over 10 years. For these achievements, and many more, the Nation can say that the Armed Forces of Colombia are a successful institution of the Peace Agreement. They put up an honorable and brave fight and today they are Colombia’s guardians of peace.
The institutional innovations of the Armed Forces of Colombia As the FARC lost strength towards the end of the first decade of 2000, the Armed Forces’ involvement in the negotiating and planning process –and in reconfiguring organized criminal networks after the FARC were demobilized– led to changes in the internal and external conditions and threats of the strategic environment of security in Colombia. This situation required an internal and structural evaluation of the Armed Forces of Colombia that would allow the forces to address this new environment of security in
an efficient and effective way, as well as operate within it. This environment went from one of war with organized guerrilla groups that promoted their own ideology, to one in which irregular, dissident and dispersed groups had to be controlled. Also as part of this environment, a greater emphasis had to be made on public security and on fighting drug trafficking.
Soldiers with the National Flag. Image: Juan David Tena
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235
The innovations that were implemented involve a complex and extensive process that was led by the Transformación del Ejército del Futuro COTEF (Colombian Army's Transformation Plan), which, over recent years, has made over 300 changes to the military. This plan seeks to make the military evolve –in terms of its philosophy, culture, doctrine, training, education and to improve its operational processes– without ever losing sight of its overarching objective of protecting the State, its institutions, and constitutional order. All of these innovations included in Colombia’s institutional architecture are supported by
vigorous comparative studies and are conducted in collaboration with agents from Germany, Brazil, Canada, Chile, Spain, the United States, France, Israel and the United Kingdom. They were also divided into three phases stretching from the year 2014 to 2030. In pursuit of these innovations, Colombia started by modifying the processes that affect the leadership structure of the Armed Forces’ commandos and institutions. The objective of this was to ensure that human capital had suitable training; to verify that the duties of different positions were structured and coordinated adequately in accordance with
51
COTEF (2018). Misión y Visión (Mission and Vision). Accessed on May 15, 2018, on the COTEF Website: https://bit.ly/2uCvMcx
Military Forces of Colombia. Image: Webinfomil
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Transparency and good practices the rest of the team; and to eliminate inefficient practices, build functional processes, and establish effective techniques. One example of these innovations was the modification and simplification of the National Army Policies Manual, which was reduced from 29,000 to 13,000 pages. COTEF is the government body in charge of managing and creating the strategic plans to transform the army under an eight-item matrix structure, a structure that helps ensure the efficient use of the new capacities of the Armed Forces: organization, specialized human talent, doctrine, trainings and certifications, ongoing maintenance, technological support, infrastructure and processes involving sustainability. All of these innovative processes also have the support of the Comando de Apoyo Tecnológico del Ejército Nacional COATE (National Army Command for Technical Support). This command fosters research and technology development projects either independently or in coordination with different entities from the Sistema de Ciencia y Tecnología del Ejército Nacional SICTE (National Army's Science and Technology System). COTEF and COATE unified the entire innovation possess in order to guarantee the effective use of resources and to achieve results with an impact. All of these efforts have allowed the Armed Forces of Colombia to build their capacity; improve their mobility, logistics and outreach; access more technology; and make significant changes to their intelligence, operational system and to how they train troops in combat and in recruitment processes. The Armed Forces have also introduced a new vision of active participation internationally among its counterparts abroad and have gained an enormous capacity to support civilians in responding to natural disasters.
An overarching aspect of all of the systems of the Armed Forces of Colombia has been the development of a cultural institution for comprehensiveness and transparency. In 2016, the Dirección de Aplicación de Normas de Transparencia del Ejército Nacional DANTE (Office of the Application of Norms of Transparency in the Army) was established. This office aims to implement anti-corruption regulations and dictates regulations to improve mechanisms for preventing, investigating, and penalizing acts of corruption.53 Similarly, in collaboration with the Ministry of National Defense, an agreement was signed with the North Atlantic Treaty Organization's (NATO) Building Integrity Program, which consists of 150 transparency regulations and protocols that are to be applied to all processes performed by the Colombian army. Towards the end of May 2018, President Juan Manuel Santos announced that Colombia would join NATO as a global partner, granting privileges to the Nation in terms of cooperation, technical support, equipment and training, without having to commit to providing mutual defense to other members or having to participate in military operations other than trainings. By applying these protocols for transparency with NATO, this also fostered the rigorous task of implementing good practices with Colombia’s inspection bodies (such as the Attorney General’s Office, the Office of the Comptroller, and the Office of the Inspector General), as well as with international non-governmental organizations such as Transparency International and Transparency Colombia.
52
National Army of Colombia (2018). Comando de Apoyo Tecnológico del Ejército Nacional (Technology Support Command of the National Army). Accessed on May 15, 2018, on the Colombian Army Website: https://bit.ly/2Nsq97Q 53 Nuestros Héroes (Our Heroes) (2016). Dante, por un Ejército transparente (DANTE: Towards a Transparent Army). Accessed on May 15, 2018, on the Nuestro Héroes de las Fuerzas Armadas de Colombia Website: https://bit.ly/2Nsq97Q
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Finally, regarding good practices, at the end of 2017, the Armed Forces of Colombia announced the creation of the Colombia Task Force (FTC). This force consists of 900 male and female members of the Colombian military who, throughout 2018, are being trained in human rights, international humanitarian law, and on the function of the commandos of the United Nations Peacekeeping Operations and its doctrine. The goal is for these good practices to be shared among the peace missions that the UN leads throughout the world by 2019.54
Humanitarian demining Innovation #13: Mine clearance with a comprehensive and global vision Along with Afghanistan, Cambodia, Pakistan and Yemen, Colombia is one of the countries that has been most seriously affected by anti-personnel mines; including government forces and civilians, more than 11,000 people have been affected by them since 1990. This complex situation led the national government to develop and implement comprehensive mine-clearance policy with primary goal of declaring Colombia a country free of anti-personnel mines by 2021. In order to categorize the actions that should be taken in these municipalities, the policy titled, "Comprehensive Action against Anti-Personnel Mines" (AICMA) divides the country’s municipalities into four categories according to how the presence of mines affects them. Categories53 • Category 1:High (199 municipalities). Municipalities that have reported anti-personnel mining accidents in the last five years.
nel mining accidents in the last five years, but have reported them for the years prior to 2010. • Category 3: Low and without human impact (183 municipalities). Municipalities that have only reported incidents that do not involve human victims. • Category 4: No registered impact (429 municipalities). Municipalities with no record of anti-personnel mine events. In accordance with these categories, the Comisión Intersectorial Nacional de Acción Integral contra Minas Antipersonales CINAMAP (National Intersectorial Commission for Comprehensive Action against Anti-Personnel Mines), overseen by the Ministry of Post-conflict, established a series of comprehensive actions that involve principles of humanity, impartiality, neutrality and the application of a differential approach.
• Category 2: Medium (291 municipalities). Municipalities that have not reported anti-person-
54
Diálogo (Dialogue) (2017). Colombia participa en misiones de paz (Colombia Participates in Peace Missions). Accessed on June 6, 2018, on the Diálogo digital military magazine: https://bit.ly/2DrM75C 55 Ministry of Post-conflict (2016). Introduction to Comprehensive Action against Anti-Personnel Mines. Bogota. 56 Consisting of: the Office of the Ministry of Post-conflict, Human Rights and Security; the Ministry of Internal Affairs, the Ministry of Foreign Affairs, Ministry of National Defense, Ministry of Health, the National Planning Department and the Comprehensive Action against AntiPersonnel Mines Authority.
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Areas of intervention and actions taken on humanitarian demining policy
Areas of Intervention Collaborative efforts at a national, departmental and municipal level
Actions Implemented By collaborating, planning, dialoguing, coordinating and following-up with each other, regional entities and other actors involved work together to strengthen the local capacities of the AICMA.
Mine risk education for communities
Community awareness strategies are implemented to reduce the risk of anti-personnel mine-related accidents by spreading information about safety, education, training and risk management.
Comprehensive assistance for victims
Entities coordinate with each other to facilitate the access of victims of anti-personnel mines to all institutional programs in order to receive adequate treatment.
Information management
Information systems are implemented to gather, store, analyze, validate and spread information on Comprehensive Action Against Anti-Personnel Mines.
Humanitarian demining
This process involves identifying and marking affected areas, eliminating anti-personnel mines, and eliminating other unexploded ordnances and explosive remnants of war.
Impact assessment
Impact assessments of the mines on the population and affected region are conducted before and after the implementation of AICMA.
Source: Ministry of Post-conflict.
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Humanitarian Demining Brigade. Image: APC-Colombia
Colombia is a world leader in mine-clearance techniques and has the institutional and investigative structure necessary to address mines, explosive ordnances and mine clearance. Led by the Armed Forces of Colombia, the Centro Nacional Contra Artefactos Explosivos y Minas CENAM (National Center against Explosive Ordinances and Mines), and the Geneva International Centre for Humanitarian Demining (GICHD) were created. Established in 2017, one of the main functions of the GICHD is to work in collaboration with NATO and the UN to build its own capacity for humanitarian demining; after which it can later share this knowledge through international cooperation. As a result of the hard work of the Armed Forces of Colombia and along with the governments of Japan and the United States, NATO and through international philanthropy, the OAS certified a brigade consisting of 6,000 men from the Armed Forces of Colombia. In a record amount of time of eight months, all of these men were selected and trained extensively in accordance with international standards. By mid-2018, 673 municipalities that had encountered problems with anti-personnel mines
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were cleared of their mines. Of these municipalities, 227 were declared no longer mine suspected areas. Currently, humanitarian demining organizations (officials from the national government and civilian organizations) are working in 230 municipalities. Of these, the Humanitarian Demining Brigade of the National Army is expected to certify more than 40 municipalities as mine free by August 2018. Intervention efforts remain for 216 municipalities for which a national capacity-building process is being conducted in order to create a second humanitarian demining brigade. In 2017, the U.S.-based Howard G. Buffet Foundation became the first private organization to donate resources to the Colombian State through the Presidential Agency for International Cooperation. This foundation donated $38 million dollars to go towards humanitarian demining. This donation supported the National Army’s mine clearance-efforts in at least 17 municipalities throughout the country and helped contribute to the national government's goal of having a mine-free country by 2021.
5
Economy, Tourism and Trade
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Contecar Port, Cartagena. Image: Cartagena Port Asociation
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Colombia’s presence in international markets Responsible economic openness and sustainable finances A global trend towards economic liberalization that became consolidated in Latin America during the 1990s is interesting because, although it opens up a range of opportunities for domestic producers and raises regulatory and production standards, it simultaneously exposes economies to a competitive environment where less efficient sectors tend to disappear.
On the one hand, Colombia has achieved a solid regulatory and institutional structure that has allowed it to stand out in the areas of sustainability, fiscal prudence, and macroeconomic stability, not just because national accounts are managed with great rigor, but also because the Colombian financial system is one of the most solid amongst countries with similar contexts. On the other hand, it has moved forward compellingly with Prudence and fiscal responsibility are required its insertion into international markets, seeking within this context, as is a national government to promote the development, growth and that is committed to promoting the country’s sophistication of its business fabric at all levels most competitive sectors, gaining from its thanks to a government that is committed to improving the country’s competitiveness within comparative advantages. the framework of consolidating the country’s Colombia has faced these challenges in an economic openness. exemplary fashion for countries from similar contexts, with outstanding results and great resilience that has been highlighted by investors and credit rating agencies around the world. It is worth remembering that this has been achieved within an environment of internal instability There are no great caused by the armed conflict and narcotics barriers to growth trafficking in the country's most remote regions, the financial crisis in 1998, the great recession in because human 2008 and, more recently, falling oil prices.
intelligence has no limits Ronald Reagan
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“
“
245
The following table contains the positive progress made between 2010 and 2018 in macroeconomic indicators related to fiscal stability and macroeconomic health: Progress of Colombia’s macroeconomic indicators INDICATOR
2010
GDP per capita PPA
USD 10.775 5,31%
Average inflation
(2002-2010)
Projected 2018
3,94% (2011-2018)
(2002-2010)
(2011-2018)
As % of GDP at current prices
As % of GDP at current prices
11,8 % Overall domestic
Non-traditional exports 13.386 million USD
(2017)
Increase of 6.5 pp
Decrease of 2.4 pp
15.801 millones de USD Projected for 2018
BBB - with a stable outlook
Moodys
BB+ with a positive
BBB with a stable outlook
Fitch
BB+ with a positive
BBB with a stable outlook
outlook
Decrease of 1.29 pp
Overall domestic
Ba1 with a positive outlook
39% growth
9,4%
S&P
outlook
OBSERVATIONS
Forecast to December 2018
27,6%
Unemployment
Credit Rating
USD 14.993
21,1% Average investment rate
(all exports except: coffee, coal, banana, oil and derivatives, flowers, ferronickel and gold)
2018
18% Increase
Moved up two levels
Source: Ministry of Finance and Public Credit
These results demonstrate an exemplary capacity for fiscal discipline, while the country moves forward with economic growth and competitiveness. This chapter will expand on the details of the institutional and regulatory structure Colombia created to ensure fiscal health and facilitate its insertion into international markets through open trade policies and regulatory standardization under the highest international standards in the financial sector, among others.
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Fiscal discipline and macroeconomic stability in Colombia Historical context At the same time as the change in the Constitution in 1991, Colombia embarked upon a process of economic openness and territorial decentralization that required regulatory changes to protect and guarantee both fiscal health and medium and long-term macroeconomic stability.
The regulatory and implementation processes progressed gradually, and the structure that has been consolidated today has allowed Colombia to become a regional example in the areas of fiscal discipline and macroeconomic stability.
The following are the most important regulatory Territorial decentralization provided departmental elements implemented by the Government of governors and municipalities with greater Colombia. budgetary autonomy. This important step for developing the administrative capacities of the country’s regions was not problem-free during the implementation phases, which required the creation of control and oversight mechanisms at a central level. On the other hand, an openness towards international markets and financing required the implementation of components that would guarantee proper monetary and fiscal management to maintain confidence and low levels of risk.
BogotĂĄ. Foto: Grupo Elite
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Control framework for fiscal health Innovation #1: Solid regulatory framework for healthy and sustainable territorial finances Currently, Colombia has a decentralized system under which subnational governments are legally autonomous and where the central level collects most resources and directs their sectorial use through a transfer system called the Sistema General de Participaciones SGP (General Participation System). This system partially finances municipalities and departments (the remaining financing comes from territorial taxes).1
During the 1990s, after decentralization, there were problems associated with poor fiscal management by certain departments and municipalities, and, at the end of that decade, this situation began threatening the country’s fiscal stability. Responding to that situation, a range of territorial fiscal responsibility reforms and the creation of institutions to promote territorial fiscal rehabilitation were successfully promoted. 2
Regulatory reforms adopted to guarantee territorial fiscal health Regulation
Main Elements • Defined debt solvency and sustainability indicators.
Debt control (Law No. 358-1997)
• Established performance programs for entities with excessive debt. • Linked territorial payment capacities to bank portfolio ratings.
Provision for pension liabilities (Law No. 549- 1999)
• Law No. 549 created the Fondo Nacional de Pensiones de las Entidades Territoriales FONPET (National Pension Fund for Territorial Entities) to identify and provision pension liabilities. • National, department and municipal revenues with a specific destination were defined to feed into this fund. • Exceptional legal mechanisms were defined for restructuring all kinds of current liabilities.
Liability restructuring (Law No. 550-1999)
• In exchange for legal immunity, territorial entities agreed to reduce expenditures and direct income for paying off their liabilities through agreements with their creditors.
• Established the growth of transfers from the Nation towards territorial entities. Distribution of competencies and resources (Law No. 7152001) • Specified national, departmental and municipal competencies for the provision of basic services. • Law 617 set limits upon operational expenditure for territorial entities as a function of their own revenue collection. Limits on operational expenditure (Law No. 617-2000)
• Hardened requirements for the creation of municipalities. • Defined mechanisms for merging financially unsustainable municipalities. • Establishes the obligation of defining yearly goals for primary territorial surpluses in order to guarantee debt sustainability with the Medium-Term Fiscal Frameworks for territorial entities.
Transparency and fiscal responsibility (Law No. 819-2003)
• Obliges territorial entities to make annual tax results public. • Reinforces debt and expenditure controls through budgetary process.
Source: Ministry of Finance and Public Credit 1 Bank of the Republic (2014). Historical context of the SGP. Accessed on March 21, 2018 on the Banco de la República de Colombia documentary Website: https://bit.ly/2zMKO4q 2 Ministry of Finance (2004). Territorial Fiscal Sanitation Colombian Experience 1998-2003. Accessed on March 21, 2017 on the Economic Commission for Latin America and the Caribbean (ECLAC) Website: https://bit.ly/2Ln24BKK
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ACHIEVEMENTS These reforms increased transparency levels in the public accounts of Colombia’s territorial entities and cleaned up municipal accounts, without increasing the national debt and without the need for a direct and unconditional bailout by the Nation. Today, the Ministry of Finance and Public Credit has the Dirección General de Apoyo Fiscal DGAF (General Directorate of Fiscal Support), entirely dedicated to strictly overseeing the fiscal performance of the country’s 1122 municipalities and 32 departments. The main objectives of the DGAF are: 1) To contribute to the financial and fiscal recovery of and the consolidation of institutions in territorial entities, and 2) To consolidate fiscal sustainability and develop a culture of fiscal responsibility and institutional consolidation within territorial entities. 3
From the effective date of the territorial fiscal recovery regulatory framework until May 2018, 112 territorial entities made use of liability restructuring processes under Law No. 550. 70 of them completed their processes successfully and 31 continue to execute them with the support and technical assistance of the Ministry of Finance. Until December 2017, liabilities had been restructured for close to 7.1 trillion (approximately 2,400 million dollars), and payments of close to $5.2 trillion (approximately 1,800 million dollars) had been made, such that only 22% of the adjusted balances, or $1.5 trillion (approx. 500 million dollars) are pending payment. The fact that, during this government (2009 – 2018), 32 territorial entities began liability restructuring processes, while 57 entities completed theirs satisfactorily is evidence of the success of the territorial fiscal discipline and sustainability policy.
3 DNP (2018). Manual of Institutional Supply of the National Government towards the Territorial Entities. Accessed on March 21, 2018 on the DNP Portal for mayors and departmental governments: https://bit.ly/2L3pBIN
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Law No. 1530-2012: National Royalties System Innovation #2: Equitable distribution of royalties and investment in regional development projects In Colombia, royalties are an important source of funding for territorial investments, partly due to the considerable natural resource exploitation activities including coal and oil in different parts of the country. The importance of these resources for Colombia’s regional development drove the government to implement structural reforms to the regime that regulates royalties, as the previous model had shortcomings in the areas of resource distribution and execution control. Law No. 15302012 designed a new policy for managing these resources according to the following principles: 4 • Implement savings mechanisms for times of scarcity.
• Generate greater equality in the distribution of income arising from the exploitation of natural resources, so that poorer regions receive more. • Invest these resources to generate competitiveness and development among regions, through participation of their territorial entities in common projects. These objectives are especially important because Law No. 1530 – 2012 introduces a range of deep modifications to the system to remedy shortcomings related to distribution equality, investment quality and pertinence in monitoring the resources received from natural resource exploitation activities.
The following table compares the previous system with the new royalty administration system that began operations in 2012 5
Comparative table of the two royalty management and distribution systems in Colombia Subject
Law No. 141-1994 and Law No. 7562002 (Previous regime)
Law No. 1530-2012
Investment categories
Reduced to 5: 1) Savings to maintain pension liabilities, 2) There were 54 ways to invest royalties and the Financing for territorial development projects, 3) Investments requirements made it difficult for the most in education, and science, technology and innovation ST+I, 4) vulnerable municipalities to meet requirements. Oversight of extraction activities, 5) Knowledge generation and geographic cartography of the land.
Resource distribution
80% of total royalties were distributed directly 80% of all royalties are distributed amongst 70% of Colombia’s amongst only 3 out of 32 departments, or, in population. other words, 17% of Colombia’s population.
Funds with specific destinations
Specific destination funds were created to incentivize the There were no savings funds or funds with development of ST+I, and savings funds for periods when the specific destinations. price of hydrocarbons drop.
Control and participation mechanisms
Órganos colegiados de administración y decisión OCAD (Collegiate management and decision-making bodies), are Each territorial entity decided how to use the created, with the intervention of different territorial entities and resources independently. responsible for defining projects, evaluating them, making them sustainable, prioritizing, approving and designing the executor for them.
Joint territorial control and participation mechanisms
Centralized entities like Colciencias are involved, several OCAD are created for specific ST+I projects and to promote the postThere were few control mechanisms and conflict. The National Planning Department supervises the projects had a meager scope. project bank and their execution through the Monitoring, Followup, Control and Evaluation System.
4 DNP (2013). Presentation of the General Royalty System. Accessed on March 21, 2018 on the Banco de la República Website: https:// bit.ly/2et8gne 5 General Royalty System (2018). About the system. Accessed on March 22, 2018 on the SGR main Website: https://bit.ly/1ljAzB9
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Órganos colegiados de administración y decisión OCAD (Collegiate administration and decision-making bodies) Collegiate administration and decision-making bodies are responsible for defining investment projects subject to their consideration that will be financed with resources from the Sistema General de Regalías SGR (General Royalty System), and for evaluating, making sustainable, approving and prioritizing financing timeliness and opportunities, as well as appointing an executor for each project. This mechanism is extremely innovative as it seeks to approve projects through joint work that will create productivity and competitiveness with a multidepartmental or multi-municipal scope, while
generating new technical and administrative capacities for project formulation and execution within territorial entities. The OCADs are structured such that their members will represent civilian sectors and regional (mayors and governors) and nationallevel (ministers and directors) authorities. There are six regional and 32 departmental OCADs; one OCAD for post-conflict projects; one OCAD for science, technology and innovation (ST+I); and one OCAD for autonomous regional corporations.6
ACHIEVEMENTS Regulatory reforms to the SGR have produced great changes in the way in which resources are distributed nationally and have generated new dynamics for interactions and collaborations between the country’s different departments and municipalities thanks to new participatory decision-making mechanisms.
The SGR savings funds served, during 2016 and 2017, as an anticyclical mechanism for maintaining investments in the poorest regions of the country during the years that oil prices fell. Since 2013, the SGR has had almost 22 trillion pesos in investment available for the country’s regions, the equivalent to approximately 7,000 million dollars. 7
6 General Royalty System (2018). (OCAD). Accessed on March 22, 2018 on the main SGR Website: https://bit.ly/2FgCAno 7 Ministry of Finance(2016). Biannual Royalty Budget. Accessed on March 22, 2018 on the Finance Ministry’s budgetary Website: https://bit.ly/2KLPs2P
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National regulatory mechanisms to ensure fiscal discipline Just as the Colombian Government created a mechanism for maintaining regional control and fiscal discipline, another one was needed at a central level to reduce financing costs, maintain low risk levels, and increase resilience to external shocks within a policy of increasing economic openness. To do this, the national government created a range of mechanisms that, together, have generated high levels of international investor confidence.
Constitution of 1991 together with article 372, which stipulates the Independence of the Banco de la República and the constitution of its board of directors. However, the Colombian financial crisis during the second half of the 1990s brought with it a downgrading of its long-term debt ratings and forced the government to implement measures that would ensure fiscal health and transmit security to international markets and investors. In the midst of this situation, Law No. 819-2003 on Fiscal Responsibility was approved, which creates a range The construction of this structure began with of mechanisms that shield and protect Colombia’s the enactment of the Colombian Political fiscal health in the long term.
MedellĂn. Image: Virginia
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Regulatory framework for fiscal responsibility Innovation #3: igorous mechanisms for ensuring Colombia’s fiscal health The process for building a regulatory framework that will ensure the responsible management of government resources began with the approval of Law No. 819 2003, which introduced the government mechanisms that ensure government decisions are planned
from a financial perspective, their real impact on the Nation’s taxes is assessed, as is their sustainability. An analysis of the long-term effects of the fiscal impact of indebtedness, bill approvals, management of future terms, among others, was begun.
The following are the main mechanisms implemented within the framework of Law No. 819-2003 at a national, rather than a territorial, level: 8
1
Medium term fiscal framework
The Marco Fiscal de Mediano Plazo MFMP (Medium-Term Fiscal Framework) is a document prepared by the Ministry of Finance and Public Credit and submitted to the Congress of the Republic in June each year. This instrument emphasizes the results and purpose of fiscal policy. It provides an overall account of the most important events related to the country’s economic and fiscal behavior over the previous year, and the government's expectations for the following 10 years can be observed. It also operates as a tool that guarantees transparency and sustainable management of the Nation’s resources.
Main characteristics of the MFMP • Presents estimates for the current year and the next 10 years. • Shows the consistency of budgeted figures with primary surplus and public debt goals. • Reports on the previous year’s macroeconomic and fiscal results. • Estimates the fiscal cost of tax exemptions, deductions or discounts. • Indicates the fiscal cost of the laws passed over the previous year. • Contains disaggregated budget management
and objective achievement, plan and program indicators. • Indica el costo fiscal de leyes sancionadas durante el año anterior. • Contiene indicadores de gestión presupuestal y logros de objetivos, planes y programas desagregados.
2
Primary balance and sustainability
3
Medium term expenditure framework
Every year, the national government must decide, for the following year, a primary balance goal for the non-financial public sector that is adjusted to the macroeconomic program, and goals for balances over the following 10 years. This ensures debt sustainability and economic growth. Adjusted primary balance goals per economic cycle, on average, cannot be less than the primary structural surplus that guarantees debt sustainability.
The Marco de Gasto de Mediano Plazo MGMP (Medium-Term Expenditure Framework) enjoys regulatory support by Law No. 819 2013 and Regulatory Decrees Nos. 4730 2005 and 1957 2007. It is a process for projecting and prioritizing expenditures, through which yearly
8 Función P blica (2018). Law 819-2003. Accessed on March 23, 2018 on the Regulatory Assistance of the Public Function Website https: bit.ly 2uNN7ym
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4
budgetary decisions are governed by policy 11 priorities and adapted to medium-term resource Fiscal Rule restrictions. This means that it is a fundamental input for determining Colombia’s annual budget distribution, as it is an annually reviewed exercise The Fiscal Rule is the latest tool created that performed with a view to the next four years. 9 encompasses the entire regulatory framework to ensure Colombia’s fiscal sustainability. It was "Under the MGMP, the annual nature of the implemented under Law No. 1473 2011, under budget system is maintained, but the possible the direction of the Government of President effects and restrictions for future expenditure Juan Manuel Santos. are made explicit. Thus, based on government policy priorities and existing medium-term The Fiscal Rule consists of defining an annual limit macroeconomic and fiscal goals, expenditure under which the country’s structural expenditures quotas are defined for each sector that cover four- cannot surpass its structural income. Currently, year periods and are renewed annually, wherein and after the sudden fall in oil prices during 2014, the first year’s quota is consistent with the yearly which tested the Fiscal Rule, the goal is that the budget, while ceilings for the following years are structural deficit will not be greater than 1% of indicative estimations that become the baseline the gross domestic product (GDP) as of 2022. for future annual budgets." 10 The main principles of the Fiscal Rule are: This makes the MGMP the core that allows the 1) Recurring expenditures are not financed with articulation of policy design, medium-term debt, but with permanent income. macroeconomic and fiscal planning, and annual 2) Temporary reductions in income are financed budget planning. with dissaving or debt, whereas transitory income, such as that obtained during oil price Main benefits of the MGMP bonanzas, must be saved. • Provides consistency between expenditure levels and short and medium-term resource The Fiscal Rule has allowed the national government to plan its anticyclical behavior; availability. i.e., it prevents the government from having to • Reconciles national government priorities with behave with austerity during "rainy days" and what fits within sectorial payment possibilities. from splurging during economic upturns (pro• Guarantees spending efficiency and cyclicality). This maintains a stable behavior that effectiveness to provide quality goods and prevents accentuation of economic cycles; in services that will contribute to fulfilling political other words, the government increases its debt priorities at a reasonable cost. during decelerations and eliminates fiscal stimuli as growth recovers. 12
9 Ministry of Finance (2007). Conceptual and Normative Basis of the Medium Term Expenditure Framework (MGMP) Accessed on March 23, 2018 on the On-Line Judicial Solutions Website: https: bit.ly 2vSs7qI 10 Ibid. Pp 2. 11 Presidency of the Republic (2018). Law 1473-2011. Accessed on March 23, 2018 on the regulatory portal of the Office of the President of the Republic: https: bit.ly 1pd56UC 12 Portafolio (2011) Why fiscal rule Accessed on March 23, 2018 on the Portfolio news Website: https: bit.ly 2NuIc
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ACHIEVEMENTS One of the main outcomes of national-level fiscal sustainability mechanisms has been that, since 2005, Colombia’s credit rating recovered after the downgrading suffered during the final years of the 1990s. But it was thanks to the implementation of the Fiscal Rule in 2012 that the regulatory framework was completed, and Colombia managed to raise its credit rating to BBB and consolidated its investment rating.
Today Colombia has an investment rating from the three main credit rating agencies in the world. The country has also managed to overcome the 2008 United States mortgage crisis and the fall of oil prices in 2014 without entering an economic recession thanks to the countercyclical mechanism contained in the Fiscal Rule, while maintaining inflation at optimum levels over the last decade.
Improvement in Colombia’s credit rating
COLO
Año
Commodities super-cycle, Ascending phase
dic-13 abr-13
BBB
Commodities super-cycle, End jul-14
"Investment Grade"
Fitch Moody’s
BBB
may-11
BBB-
mar-11
jun-11
S&P
BBB-
dic-17
jun-07 jun-08 mar-07
BB+
BB+
"Speculative Grade" BB 2005
2010
Años
2015
2017
Source: Prepared by the Anif, based on S&P, Fitch and Moody’s
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255
% Growth
Annual growth of Colombia’s GDP, per periods of international crisis
7 6 5 4 3 2 1 0
Fall in oil prices
6.6
US mortgage crisis 4.4
4
3.5
4.6
4.3
3.1
3
1.7
2008
2009
1.8
2
2010
2011
2012
2013 Year
2014
2015
2016
2017
2018 *
Source: Ministry of Finance
Variation of the Consumer Price Index in Colombia (1991-2018) Annual Inflation in Colombia(1991-2018)
30
% In ation
25
16.82 22.61
20 15
17.68 19.47
10
7.65 9.23
5 0
6.77
5.69 4.85
2
3.73
1.94
3.47 4.09
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2018* Source: Ministry of Finance
256
6.49
COLOMBIA HAS CHANGED
Regulation and financial inclusion
Bancolombia headquarters, Medellín. Image: Bancolombia Archives
In the case of the financial sector, since 2010, the national government, under the leadership of the Unidad de Proyección Normativa y Estudios de Regulación Financiera URF (Regulatory Projection and Financial Regulation Studies Unit), has been working constantly to consolidate the efficiency, solidity and inclusion of the Colombian financial
system. These three elements are materialized through different actions and strategies framed by three lines of action: development of capital markets, financial inclusion, and the adoption of prudent regulations for convergence with international standards.
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Development of capital markets Innovation #4: Regulatory reforms to facilitate citizen access and improve standards The meager size of the country’s capital market has frequently been questioned; currently only 80 companies trade on the stock exchange. Market capitalization is also small when compared to similar economies. This situation, in an economy the size of Colombia’s, means that the capital market is not an option for those that wish to invest their savings and, simultaneously, discourages companies from issuing stock because there is only a small group of buyers. In light of this situation, the URF has been working intensely over the past eight years to facilitate the inclusion and expansion of Colombian capital markets. The following are the main modifications implemented and their outcomes.
In 2013, the URF and the Finance Ministry issued Decree No. 124213, which specifies each type of FIC. It defines that fund management and offer distribution are in the hands of different actors. It also introduces the figure of the custodian, who is independent and responsible for overseeing the correct management of resources invested by citizens. This change allows the following: 14 • It provides the capital market with greater efficiency and transparency. • It provides guarantees for protecting investor capital. • It brings Colombia up to the highest international standards.
1) Greater access to mutual funds (FIC): FICs are an excellent tool that allows people with small amounts of available capital to pool their individual capital to create large collective funds, the sum of which enables investment in large projects or sophisticated investment portfolios. Outcomes Implementation of these rules increased FIC participation in the Colombian GDP by 100%, from 5% in 2009 to 10% in 2018. It also increased their use by the population, from 1% in 2009 to 3% in 2017. 15 2) Internationalization of capital markets 16 In order to increase participation on the Colombian stock market by new agents, the following important regulatory reforms were implemented:
13 Finance Ministry (2013). Decree No. 1242-2013. Accessed on March 24, 2018 on the regulatory portal of Asofiduciaria: https://bit.
ly/2murboo 14 Ministry of Finance (2014). Capital Markets. Accessed on March 24, 2018 on the Finance Ministry Website: https://bit.ly/2L6bWkc 15 Money Magazine (2018). The good time for collective investment funds continues in 2018. Accessed on March 24, 2018 on the
Dinero news Website: https://bit.ly/2zMNiQi
16 Ministry of Finance (2014). Capital Markets. Accessed on March 24, 2018 on the Finance Ministry Website: https://bit.ly/2L6bWkc
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• 2012 tax reform (Law No. 1607-2012): Implemented new regulations that simplifies tax management for foreign investors, reduces withholding taxes from 33% to 14%, and provides for the accreditation of foreign tax payments. • International Financial Reporting Standards (IFRS): Colombia’s transition to the IFRS is made obligatory. The rule came into effect on January 1, 2017, and its main objective is to bring Colombia’s accounting procedures in line with international standards to incentivize the entry of foreign investors to the country. • Decree No. 1068-2015, simplification of the foreign exchange regime: With a view to increasing Colombia’s competitiveness in foreign markets and facilitate the performance of foreign transactions, a decree was issued that modifies the foreign investment regime to include a comprehensive definition that matches international standards, simplify the registration process and update the sanctioning
regime. During 2018 modifications were made to this document that seek to simplify the foreign exchange regime even further in the areas of foreign investments in private capital funds and eliminate administrative barriers to the export and import of goods. • Pacific Alliance: 17 The Alliance created by Colombia, Chile, Mexico and Peru has worked hard to achieve the free circulation of goods, services, capital and workers and to strengthen cooperation in several areas. Since the creation of the Alliance in 2011, important progress has been made regarding these objectives, especially in the financial sector and capital markets. Main advances focus on stock market integration with the creation of the Mercado Integrado Latinoamericano Mila (Latin American Integrated Marketplace) and regulatory standardizations that enable equal treatment and operations between the financial systems and markets of these four nations.
World Bank. Image: APC-Colombia
17 Interamerican Development Bank (IDB) (2017). Financial Integration in the Pacific Alliance. Accessed on March 25, 2018 on the IDB
publication Website: https://bit.ly/2zSkYfm
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259
Financial Inclusion Innovation #5: Strategies to promote access in rural and remote regions Financial inclusion is a very important element in guaranteeing access to financial products and services, which allow citizens to save, finance their studies and request consumer credits or loans for starting up businesses. Increasing bank access in Colombia has been a strategic objective for the national government as a tool to promote economic development and formalization. Colombia’s strategy has focused on designing simple products that will facilitate access by persons that previously considered the financial system too complex or unreliable. A strategy was also implemented that facilitates the presence of the financial system in rural or remote populations. The following are the most important strategies implemented for improving financial inclusion in Colombia.
260
COLOMBIA HAS CHANGED
Bancolombia headquarters, MedellĂn. Image: Why Medellin
COLOMBIA HAS CHANGED
261
Medellín. Image: LCN
1. Increased coverage through correspondent banks 18 This strategy contributes to the national government’s goal of achieving 100% financial system coverage in all the country’s municipalities. To do this, the URF, together with the Banca de Oportunidades (Bank of Opportunities) program managed by Bancóldex, developed a branchless banking program that grants decreasing monetary incentives over a period of 24 to 36 months to commercial outlets with suitable characteristics, chosen after a call for proposals to turn them into bank correspondents. The following financial operations and transactions can be performed within this system:
• Checking savings and checking account balances. • Cash deposits for savings and checking accounts. • Cash withdrawals using a debit card tied to a savings or checking account. • Public utilities payments in cash or by debit card. • Payment of personal products like credit cards and loans.
18 Banca de Oportunidades Program (2018). Program for extending coverage through Banking Correspondents. Accessed
on March 25, 2018 on the Bank of Opportunities program Website: https://bit.ly/2KGtRJ3
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Thanks to this program, in 2018, 100% of Colombia’s municipalities had a financial sector presence. The program for expanding coverage through bank correspondents allowed the transfer of the financial system to 197 municipalities in rural areas of the country that previously had no financial entities, and to 22 underprivileged neighborhoods in larger cities. 19
2. Law No. 1735-2014, Corporations specializing in deposits and electronic payments (SEDPE) 20 Law No. 1735-2014 authorized the creation of corporations specializing in deposits and electronic payments (SEDPE, in Spanish), that act exclusively as receivers of resources through a financial product called the electronic deposit, which is very simple to open, as it only requires a mobile phone and an ID document. From there on, the holder can pay bills, transfer money electronically to other savings or checking accounts, add minutes to prepaid mobile phones, pay at commercial establishments and make withdrawals from automatic teller machines.
It is important to mention that to open accounts with balances that amount to less than three minimum wages and where transactions are carried out under the same restrictions, a simplified procedure is applied that only requires a mobile phone number and an identification document. However, if these limits are surpassed, the regulations to be applied will be the same as those governing normal commercial banks.
In 2018, four licenses were being processed and one SEDPE was in operation. However, the country’s main financial entities are also The SEDPEs were created with minimum capital authorized to provide electronic deposit services requirements far lower than the ones for banks and have implemented this product in their so that they would exclusively focus on electronic portfolio. SEDPEs allow users to start creating deposits. For this reason, they have the following a transaction history that can then be used to legal restrictions: i) monthly withdrawals cannot apply for loans, as it is an additional source of be greater than the equivalent of three current information for banks in the event a person legal minimum monthly wages (SMMLV, in decides to request credit from any of the main Spanish), ii) their balance cannot be greater entities in the Colombian financial sector. than three SMMLV at any time, iii) they cannot grant any kind of loan, and iv) Resources must be deposited with commercial banks or the Bank of the Republic.
19 Ibid. 20 Presidency of the Republic(2014). Law 1735. Accessed on March 25, 2018 on the legal portal of the Office of the President of the
Republic: https://bit.ly/2MBrXvd
COLOMBIA HAS CHANGED
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Bogotรก. Image: Tecnoglass
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3. Intersectorial Financial Inclusion Commission 21 Decree No. 2338 was issued in December 2015 to create the Intersectorial Financial Inclusion Commission, with the participation of eight public entities, including four ministries, representing different economic sectors.
strengthened institutional capacities, increased coordination between public and private entities, and formulated a holistic national financial inclusion strategy. The Commission’s work plan has clear and ambitious goals on four fronts:
This is an instance of political coordination that aligns efforts leading to more efficient work on • Expand access to and the use of financial inclusion policies promoted by the national services in rural areas. government. Along these same lines, the Commission approved the National Financial • Generate alternative financing schemes for micro-businesses and SMEs. Inclusion Strategy in 2016. • Promote the use of financial services. As a complement to this Commission, the • Strengthen financial education. Consulting Committee was installed with participation from eight private entities including representatives from the rural and electronic commerce sectors. These instances have
ACHIEVEMENTS The strategies implemented to increase financial inclusion levels in Colombia have borne fruit: at the beginning of 2018, 80% of Colombia’s adult population had an active financial product. This figure represents a growth of 9 percentage points since 2013, when the figure reflected 71% inclusion, and a variation of 23 percent points compared to inclusion data for 2009, which was only 57%. 25
21 Finance Minsitry (2016). Memories of the Ministry 2015-2016. Accessed on March 25, 2018 on the Finance Ministry
Website: https://bit.ly/2Ou7w42
22 Members: Ministry of Finance and Public Credit; Ministry of Agriculture and Rural Development; Ministry of Trade, Industry and
Tourism; Ministry of Information and Communications Technology; Director of the Administrative Department for Social Prosperity; Financial Superintendent of Colombia; Superintendent for the Solidarity Economy; Director of the Regulatory Projection and Financial Regulations Studies Unit. 23 Finance Ministry (2016). National Strategy for Financial Inclusion in Colombia. Accessed on March 25, 2018 on the Ministry of Finance Website: https://bit.ly/2nuXm7E 24 Members: Asobancaria, Asomicrofinanzas, Asomóvil, Colombian Electronic Chamber of Commerce, Confecoop, Fasecolda, Fenalco, SAC. 25 Portafolio (2017). In Colombia, 78% of adults have at least one financial product. Accessed on March 26, 2018 on the Portafolio news Website: https://bit.ly/2L7Jsqf
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85
Financial Inclusion in Colombia 80%
80
74%
Data in %
75
71%
40
65%
65 60
57%
55 50 2009
2011
2013
2014
2017
Source: Asobancaria
Adoption of prudential regulation for convergence with international standards Innovation #6: Implementation of structural reforms to guarantee a solid financial system, with authorities that are capable of exercising oversight and control The URF, together with Colombia’s Financial Superintendent, has made great progress towards including international prudential regulations within the Colombian framework, not just with the goal of making Colombia more attractive to international investors, but also to strengthen and shield the Colombian financial system and reduce its levels of risk and vulnerability to international crises. These reforms, designed and implemented under the recommendations and with the assistance
of the Organization for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF) and the World Bank, have been instrumental, given that the financial sector is the second economic sector that adds most value to the country’s economy, with a constant growth of over 4% per year. The main changes that have been implemented regarding prudential regulations are:
1) Law No. 1870-2017, Law of Financial Conglomerates 26 This Law is considered the most important financial reform of the last 15 years in Colombia. Its design was based on recommendations made by the Joint Forum, made up of the International Organization of Securities Commissions (IOSCO), the International Association of Insurance Supervisors (IAIS) and Basel, as well as the experience of other jurisdictions that are more advanced in this area. In Colombia, there were many holding companies that owned banks but did not have a specialized entity to oversee them. The Financial Superintendent only oversaw banks, but not the corporate structures that owned those entities. This new regulation defined an appropriate regulatory framework for performing this kind of oversight. 27 26 Presidency of the Republic (2017). Law 1870 2017. Accessed on March 25, 2018 on the legal portal of the Office of the President of the Republic: https: bit.ly 2yaR04C 27 Dinero (2017). The new Conglomerates law is the mother of all reforms. Accessed on March 25, 2018 on the Dinero news Website: https: bit.ly 2MANDHE
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COLOMBIA HAS CHANGED
Its implementation was necessary due to the great size and complexity achieved by the Colombian financial system, with the acquisition of entities in other countries and the consolidation of large corporate groups, bringing with it new supervision and oversight challenges.
Changes in and advantages of Law 1870: 28 • Previously, there were conceptual flaws that prevented control entities from overseeing the true owners of these companies that act within the Colombian financial market. The new law solves this problem and establishes new definitions for the concepts of holding company and financial conglomerate. This enables a supervision of the holding company or the financial conglomerate’s entire structure, and the government can verify to what extent the capital of the controlling company is sufficient for providing financial services, thus preventing duplicate capitals. • The definition of controlling company is expanded, as it no longer refers only to a majority share (half plus one of the company’s shares), but also to those cases in which shareholder agreements exist that imply control of a financial entity’s administration bodies or where one actor has the capacities to elect the majority of the board members.
others). It also defines a range of faculties that allow the authorities to require changes to the conglomerate or holding company in specific situations, such as in the case of risks associated with weaknesses in the financial systems of other countries that could have a systemic effect upon the Colombian system, or when the controlling person has conflicts of interest because it is both the shareholder of a bank, and holds shares in a stockbroker or pension fund.
2)Implementation of Basel III: This is a set of measures agreed upon internationally and adopted by the Basel Committee on Banking Supervision in response to the 2007-2009 financial crisis. The goal of these measures is to reinforce regulations, supervision and risk management for banks and they constitute the minimum regulations that all jurisdictions belonging to the Committee must implement within a 10-year period. 29 Colombian banking has made important progress, including adjusting decisions on basic capital and additional capital by virtue of international standards to include instruments that can effectively support risk at financial entities. For example, convertible bonds are included when equity levels at entities reach extremely low levels. 30
• Colombian authorities can oversee in detail each of the risks arising within the conglomerate (liquidity, market, credit, among
28 Ibid. 29 Bank for International Settlements (BIS) (2018). Basel III: international regulatory framework for banks. Accessed on March 25, 2018
on the main BIS Website: https://bit.ly/2mtE7ed
30 La República (2017). Basel III is the biggest challenge for local banks.. Accessed on March 25, 2018, on the La Republica news Website:
https://bit.ly/2LrdeG1
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Preventing and fighting money laundering Given Colombia’s historical conditions related to the presence of organized crime, especially during the 1990s, the national government has designed and implemented a solid regulatory and institutional framework for fighting money laundering. This has been an international example, especially for emerging nations.
National Policy Against Money Laundering and Terrorist Financing Innovation #7: Comprehensive policy for contributing to a single, integrated regulatory and institutional system for preventing money laundering and terrorist financing The main objective of the national policy is to have a single, coordinated, dynamic and effective system for preventing, detecting, investigating and judging money laundering and terrorist financing. The idea behind this policy is to provide the country with the required tools to properly identify and appraise the risks of this criminal activity and the means to mitigate it, as well as perfecting the regulations applicable to these crimes to provide the entities responsible for this struggle with the required capacities for protecting Colombian citizens and the country’s economy. 31 The Ministry of Justice and Law designed a nation policy by virtue of the stipulations contained in CONPES 32 3793- 2013 33, which proposes an institutional structure made up of the Comisión de Coordinación Interinstitucional para el Control del Lavado de Activos CCICLA
(Interinstitutional Coordination Commission for Controlling Money Laundering). This is a consulting entity that coordinates actions for fighting these crimes. Additionally, its main executors are the Colombian Financial Superintendent and the Unidad de Información y Análisis Financiero UIAF (Financial Information and Analysis Unit). Recently trade committees were set up because of the way in which these crimes evolve and the impact they have across different sectors of the economy. The following committees work together with the authorities, regulatory entities and private sector actors: • Compliance Officers Committee. • Trade Committee for Preventing Laundering and Terrorist Financing.
Money
31 UIAF (2013). CONPES 3793. Accessed on March 25, 2018 on the UIAF communications Website: https://bit.ly/2vZbCcz 32 Documents drafted and approved by the National Council on Social and Economic Policy (CONPES). Chapter 6 details this Council in
greater depth.
33 Ibid. 34 Made up by: Ministry of Justice and Law or the Vice-Ministry of Criminal Policy and Restorative Justice; the Ministry of Finance and
Public Credit or its delegate; the National Ministry of Defense or its delegate; the Public Prosecutor or its delegate; and the General Director of the Special Administrative Unit for Financial Information and Analysis or its delegate.
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Risk Management System for Money Laundering and Terrorist Financing (SARLAFT) Innovation #8: Integrated system for facilitating the detection of suspicious activities in the financial, stock market, lottery and gaming sectors One of the main elements of the National Anti-Money Laundering and Terrorist Financing Policy, that is also a reference for countries that have similar conditions to Colombia’s is the Risk Management System for Money Laundering and Terrorist Financing (SARLAFT). This is a system adopted to promote a risk management culture and to prevent crimes associated with money laundering and terrorist financing. It works by reporting suspicious and unusual operations sent to the UIAF by the entities overseen by the Colombian Financial Superintendent. 35
SARLAFT is made up of two phases: 36 1. It involves risk prevention and focuses on preventing financial resources arising from activities related to money laundering and/or terrorist financing from entering the system.
2. It involves controls detecting and reporting operations that are intended to be performed or have been performed with the purpose of providing a legal appearance to activities linked to money laundering and terrorist financing.
ACHIEVEMENTS SARLAFT is used to report apparently unusual or suspicious operations to the UIAF, the government entity responsible for regulating, examining and collecting data related to money laundering from the financial, stock market, lottery and gaming sectors. In 2017, the UIAF managed to trace over 37 billion dollars in financial transactions that
are analyzed by the Public Prosecutor’s Office to detect possible crimes like money laundering and terrorist financing. The Public Prosecutor’s office had on its radar over 60,000 companies, 100 of which had direct links to companies that managed smuggling in the country. 37
35 Infolaft (2018). About us. Accessed on March 25, 2018 on the Infolaft Website: https://bit.ly/2M7vVzm 36 Ibid. 37 RCN (2018). UIAF tracked financial operations for $ 10.8 billion in 2017. Accessed on March 25, 2018 on the RCN news Website: https://
bit.ly/2uxZnUk
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269
Incentives for foreign trade, tourism, and small and medium enterprises
270
COLOMBIA HAS CHANGED
Colombia has implemented an international insertion policy for the economy to promote economic growth, competitiveness, and consolidate the convergence of national regulations with strict international standards. Public policy on this topic covers three fronts. The first covers incentives for business sector development that will promote greater competitiveness; the second front covers all things related to trade openness and integration with the region and the rest of the world; while the third front focuses on promoting the tourism sector as a formal employment creator and economic driver.
Cartagena Port. Image: Cartagena Port Asociation
1
Business development and promotion
The following are the main policies, practices and strategies on those fronts:
Bancóldex: Colombia’s Foreign Trade Bank Innovation #9: Financial products and services developed under a comprehensive approach and focused on driving the Colombian business sector In 1990, the national government, under recommendations from the Inter-American Development Bank (IDB), set up the Banco de Comercio Exterior de Colombia Bancóldex (Colombia’s Foreign Trade Bank), a development bank with the mission of promoting the country’s exports within a new context of economic openness and wherein the business fabric was lacking in export-orientation and low levels of competitiveness. Although at the beginning the bank’s operations simply provided credits in dollars for large Colombian companies to successfully place
their products on international markets, after 2010, it embarked upon an expansion process and developed a new product portfolio. Today, Bancóldex is a corporate financial group that also specializes in promoting micro, small and medium enterprises and has developed a comprehensive vision that is a model for the region. Bancóldex is a second floor, public and development-focused financial entity that operates under a private corporate governance and contracting regime, which provides it with the flexibility, efficiency and rigor that are the
Colombian leathergoods. Image: Zonalogística
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COLOMBIA HAS CHANGED
characteristics of entities that operate under a private regime, but also allows it to meet its commitments as a public entity. Currently, it is an economic group made up of a fiduciary (Fiducóldex), an insurance company (Segurexpo), and a leasing company (Arco). The rest allows it to have a comprehensive product portfolio, so it can fulfill its mission of being a development bank that will promote the country’s business sector, covering gaps where the market has not arrived due to a lack of knowledge or risk aversion. 38
Main characteristics of Bancóldex
01
02
It has a comprehensive strategy designed for understanding the different circumstances of the growth plans for micro, small, medium and large enterprises. Each circumstance is different and deserves different treatment; for this, specialized financial and assistance service portfolios were built for exporters, whether large, medium or small, for companies that want to grow within Colombia; companies that decided to physically expand into other countries, such as the multi-latinas; companies with high growth potential, productive chains or startups, among others. 39
Understanding that financing for micro and small businesses does not only merit a specialized product portfolio, Bancóldex built a very complete assistance program including a credit application process, training and management education that allows businesspeople to both access financing successfully and to improve their administration and management skills. Thanks to this non-financial approach, between 2010 and 2018 over 5.1 trillion pesos have been disbursed in over a million operations to more than 1,205,000 micro businesses around the country, with average loans of 4.9 million pesos.
Comprehensive strategy
Non-financial approach 40
Currently, 80% of the Bancóldex credit portfolio is destined to promoting micro, small and medium corporations, for which it has consolidated an extensive network with over 74 financial intermediaries on a national level that channel resources from Bancóldex to the businesses receiving credits.
38 Bancóldex (2018). About us. Accessed on March 28, 2018 on the Bancoldex Website: https://bit.ly/2dxZBE9 39 Bancóldex (2018). Presentation structure of Bancóldex and International Cooperation. Bogota. 40 Bancóldex (2018). Consulting and training for entrepreneurs. Accessed on March 27, 2018 on the Bancóldex Consulting and Training
Website: https://bit.ly/2msXBzH
COLOMBIA HAS CHANGED
273
03
Smart capital promotion41 Bancóldex has developed a strategy for promoting improved standards and competitiveness amongst Colombia’s business fabric through the provision of "smart capital" to those companies. This strategy is called Bancóldex Capital and consists of Bancóldex, after a rigorous analysis, investing in buying shares in companies that may be private equity (consolidated companies that need to improve their processes) or venture capital (companies in the early stages with high potential and risk). This stock acquisition does not simply represent new resources for these companies, it also helps raise corporate government and management standards to those required by the new partners. When this program was created in 2010, there were 39 private equity funds in Colombia and today there are over 100. The Bancóldex Capital has invested over 150 billion pesos in Colombian equity funds, and thanks to this, close to 2 trillion pesos from private investors has been leveraged.
04
Countercyclical functions and public policy execution The extensive structure of financial intermediaries that Bancóldex has consolidated throughout the country has allowed it to implement public policies with a countercyclical approach or to deal with specific junctures like natural disasters. It can receive contributions directly from the national government to create critical credit lines with favorable conditions for specific populations that require special attention. During the rainy season of 2011 and the natural disaster in Mocoa in 2017, aid portfolios were designed specifically for helping merchants and small businesses in the affected region. In Mocoa, Bancóldex credits have a grace period and special interest rates, as well as the backing of the National Guarantee Fund that allowed affected merchants to reactivate their economic activities. Between 2010 and 2018 close to 11.8 trillion pesos have been disbursed over special lines of credit.
41 Bancóldex (2018). Bancóldex Capital. Accessed on March 27, 2018 on the Bancóldex Capital: https://bit.ly/2f0nqWU
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At the same time, Bancóldex has managed three special programs that have public policy objectives. These programs are described in the following table:42
Special programs managed by Bancóldex. PROGRAM
INNpulsa
Productive Transformation (PTP)
Bank of Opportunities
DESCRIPTION
OUTCOMES
This program was created in 2012 and promotes corporate innovation and entrepreneurship, through calls that seek to select the most innovative proposals with the greatest potential for national and international growth to receive assistance and financial aid.
Over $616,260 million pesos (approximately 210 million dollars) have been disbursed to attend over 101,851 beneficiaries, (56,329 companies, 1,753 entrepreneurs, 14,688 in productive inclusion, 28,741 in mentality and culture and 340 institutions) through seed capital, e-commerce, open innovation, intraentrepreneurship, production improvements, cluster development, financing industry consolidation, preparation for international markets, and technology transfer initiatives, among others.
The program, together with the public and private sectors and academia, built 18 roadmaps (business This program seeks to transform plans) for 30 export industries with a long-term vision Colombian industry and promote (2032). the development of companies in 20 strategic subsectors of the national To date, the PTP has intervened the productivity economy within manufacturing, agro- of around 1,100 companies to help them improve industrial and service sectors. their production processes; optimize their times, costs and resources; and elevate their management The program approaches the company, levels to cover domestic and international markets. analyzes productive processes, identifies Through the "el Agro Exporta" Alliance, the PTP also needs and proposes improvement implements 29 projects that help increase the export plans that have repercussions for areas and marketing quality and capacity of around 11,000 like human capital, sales, production, small and medium producers from 18 departments marketing, logistics, among others. and eight agricultural subsectors: cocoa, beef, avocado, pineapple, palm, dairy, mango and fish. The Bank of Opportunities Investment Program is a long-term national government policy aimed at providing access to financial services for the country’s entire population, focusing especially on lower income and small and remote populations. This program is explained more extensively in the financial inclusion section.
The program achieved 100% financial presence in all the country’s municipalities. Some 1,086,932 people accessed the financial sector in 2017, raising the percentage of adults with at least one financial product to 79.9%, which means that 27 million adults have some kind of formal financial product. This indicator has increased 17.9 percentage points compared to the value of 62% recorded in December 2010.
42 iNNpulsa Colombia and the Productive Transformation Program are managed by Fiducoldex as of 2017.
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05
06
Product portfolio for environmental sustainability43
Important international cooperation component at Bancóldex
Since 2010, Bancóldex has been developing financial portfolios to incentivize the development of environmentally friendly projects and startups, becoming a pioneering development bank on a regional and global level in these topics. Currently, thanks to the eight years of experience with the analysis, development and implementation of these programs and this portfolio, Bancóldex is seeking accreditation from the Green Climate Fund, which will allow it to access new resources available for sustainable development, climate change and green growth. Over 357 billion pesos have been disbursed for sustainable development and energy efficiency between 2010 and 2018.
International cooperation is a very important component for the growth and consolidation of Bancóldex. International support has been fundamental for perfecting its corporate strategy and governance, implementing new innovative products, and improving processes for covering gaps in the market. The IDB, the Latin American Development Bank (CAF), the International Finance Corporation (IFC) and the Knowledge Sharing Program with Korean cooperation have been fundamental for improving Bancóldex corporate strategy and governance. With regard to formulating and implementing programs and the product portfolio, the IDB, Japanese cooperation (JICA), the United States Cooperation Agency (USAID), the European Union, German cooperation (GIZ), and British cooperation have provided technical knowledge.44
43 Bancóldex (2018). Portfolio of products to finance sustainability projects. Accessed on March 27, 2018 on the Bancóldex SME Website:
https://bit.ly/2w0DAVg
44 Bancóldex (2018). Presentation on Bancóldex’s structure and International Cooperation. Bogota.
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Competitiveness development policy Innovation #10: Program analysis and reorientation to promote productivity Advances in economic openness towards international markets are an opportunity for Colombia’s economy, but they also represent a great challenge for the industry, especially in the sophistication and diversification of the export portfolio. Between 2000 and 2014, Colombia was one of the countries with the highest economic growth in the region, with an average rate of 4.2%. However, this growth did not occur due to productivity growth, but because of other factors, like the accumulation of physical capital and the work force.
productivity and diversify the Colombian productive apparatus towards more sophisticated goods and services. To do this, it promotes the use of instruments that will help solve market or management failures at the level of production units, production factors or the competitive environment, especially in those activities where the country and its regions display comparative advantages.
The business development policy focuses on a set of actions that foster a transition of the productive apparatus towards more sophisticated activities When analyzing the different factors that led and production and export chains, with greater to a slowdown in productivity, the need for a growth potential and greater possibilities for comprehensive policy that would help transition adding value and technological content. the country’s economic structure towards sustained, long-term economic growth became These actions involve several national clear. government46 and departmental government institutions, with a 10-year work horizon that Construction of the Business Development Policy configures an integrated, multidimensional in Colombia began at the start of 2015 in a public- policy, built around six strategic pillars: i) private effort, with participation from over 30 knowledge and technology transfer, ii) innovation people from different public and private entities, and entrepreneurship, iii) human capital, iv) including the National Planning Department finances, v) quality, vi) productive chains, and vii) (DNP), the Ministry of Agriculture and Rural foreign trade. Development, the Ministry of Information and Communications Technologies, the Ministry of The policy is intensive in articulating actors Trade, Industry and Tourism, and the National involved in productive development and defines Industrial Association (ANDI), the Private guidelines for prioritizing departmental-level Competitiveness Council (Confecåmaras), productive projects to focus efforts and resources among others. on sectors that generate greater added value and prove to have growth potential, both nationally CONPES 3866 on Business Development Policy45 and internationally. was approved in August 2016. Its main goal is to provide lines of public policy to increase
45 DNP (2016). CONPES 3866. Accessed on March 26, 2018 on the DNP regulatory Website: https://colaboracion.dnp.gov.co/CDT/
Conpes/Econ%C3%B3micos/3866.pdf
46 Main entities involved: Colciencias; Ministry of Information and Communications Technologies; National Planning Department;
Ministry of Trade, Industry and Tourism; Ministry of Agriculture; Ministry of Labor; among others.
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2
Trade openness
Opening and deepening commercial relationships Innovation #11: Deeper commercial openness and simplification of customs regulations and rules for investors It is a priority for Colombia to diversify its export portfolio away from commodities. To do this, it has implemented a strategy that seeks to increase trade in goods and services from outside the
Aguadulce port, Buenaventura. Image: ANI
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mining and energy sectors. It has also focused on increasing foreign investment flows through trade and investment agreements, simplifying customs policies in order to facilitate trade.
The following are two important strategies and achievements made in this area.
01 Trade agreements
47
Today, Colombia has a network of 16 trade agreements with 62 countries, which opens doors to over 1.4 billion consumers. It also has 15 investment instruments in place for preventing double taxation, highlighting agreements in place with the Pacific Alliance, Canada, China, the United States, India, Japan, the European Union, Switzerland and the Northern Triangle. This strategy has allowed thousands of Colombian businesses to access international markets and has allowed international competition to come into Colombia, fostering competitiveness amongst Colombia’s business fabric and bringing in billions of dollars in foreign investment.
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Foreign direct investment in Colombia 16.210
millions of USD
16.000
14.648
16.168
15.039
14.518
14.000 13.849
12.000
10.565
11.736
10.000 8.036
8.000
8.886 6.430
6.000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: Banco de la RepĂşblica
The following trade and investment achievements have been reached in Colombia since 2010: 1. Implementation of the Free Trade Agreement with Canada in 2011
5. Implementation of the Free Trade Agreement with the European Free Trade Association (EFTA) coordinated. 2. Implementation of the Free Trade Agreement with the United States in 2012. 6. Free Trade Agreement signed with Costa Rica in 2016. 3. Free Trade Agreement signed with the European Union in 2012. 7. Currently, Colombia is negotiating free trade agreements with Japan, Turkey and, 4. Free Trade Agreement signed with South within the framework of the Pacific Alliance, orea in 2013. with Australia, Canada, New Zealand and Singapore.
BogotĂĄ. Foto: Alexander Shafir
47 Ministry of Commerce, Industry and Tourism. Main trade and investment policy achievements in Colombia. Bogota.
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02
International investment agreements 48
International investment agreements (IIA) are treaties aimed at attracting foreign investment and promoting Colombian investments overseas. To do this, they create and maintain favorable conditions for the investors from one State in the territory of another State.
In other words, these treaties establish clear and predictable rules of the game for foreign investors and guarantee protection, clarity, predictability and mutual security in investment management.49
Colombia currently has 13 international These agreements define a fair and transparent investment agreements in place and has signed 6 legal framework for investment, and include more that are awaiting approval by the Congress standards recognized by international law in the of the Republic. 50 area of investment promotion and protection.
03 Legal protection Although it has been part of the Colombian government’s trade policy to sign international investment agreements since 2001, the institutions for settling disputes with investors need to be improved. This activity was previously the entire responsibility of the Colombian Ministry of Trade, Industry and Tourism, which was charged with seeking amicable arrangements with investors while at the same time preparing a defense in the legal environment. For this reason, the International Legal Defense Department was created in 2017 under the Government Legal Defense Agency to cover arbitration proceedings, with expert litigation.
made efforts to modernize previously ratified agreements through tools like joint interpretative notes with other countries. It also began processes for renegotiating the oldest investment agreements, such as the one with Canada, which was renegotiated and modernized by technical teams from both countries in November 2017 and formalized in a bilateral presidential meeting to modify the investment chapter. This led to regulatory improvements for the Colombian Government and to strengthened possibilities for defending the country in current and future investment arbitration proceedings.
Today Colombia is better prepared to deal The Colombian Government also incorporated with international investment claims while new tools into international investment maintaining investor confidence with appropriate agreements that are being negotiated and spaces to talk about their concerns.
48 Ibid. 49 Ministry of Commerce, Industry and Tourism (2018). Investment Agreements. Accessed on June 6, 2018 on the Ministry of Trade,
Industry and Tourism Website: https://bit.ly/2vX2N2R
50 Current agreements: Pacific Alliance, Northern Triangle, ALEC, Canada, the United States, Spain, Japan, Switzerland, Peru, China,
India, the United Kingdom. Signed agreements: European Union, France, South Korea, Singapore and Turkey.
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Flowers export. Image: Lan Cargo
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ProColombia Innovation #12: Promoting the country brand with innovative methodologies
ProColombia is the entity that promotes the export of Colombia’s goods and services from outside the mining and energy sector, Colombia as an international tourism destination, foreign direct investment, Colombian company’s international expansion, foreign direct investments and the country’s brand. The following are some of the achievements obtained between January 2011 and December 2017: 51 • Exports: 5,789 companies from 24 departments participated in commercial activities and did business with 16,917 buyers from 166 countries to the tune of 15,639 million dollars.
• The country became consolidated as a destination for international tourism forums: The number of international events captured by the country has grown at an annual composite rate of 24%. In 2011, businesspeople captured 75 world-class events with support from ProColombia and, in 2017, this figure reached 272. Between 2011 and 2017, a total of 1017 international events were held (47% corresponds to incentive trips, 25% to conventions, 18% to congresses, and 5% to other types of events). • Foreign perceptions of Colombia have changed:
ProColombia worked rigorously on changing foreign perceptions of Colombia and promoting a positive image thanks to the Peace Agreements Around 116,191 appointments between expor- and improvements in security indicators in the ters and buyers in Colombia and overseas. Over country’s main cities. Additionally, it has been 8,000 international buyers from 92 countries proven that regions that previously suffered unhave come to Colombia to learn what it can offer der the conflict, now have a massive tourism in business appointments with 6,900 domestic potential. companies during buyer missions at fairs, and The following are the main strategies implebusiness macro-round tables and round tables. mented by ProColombia that enabled the achievement of these important results. • Foreign investment in Colombia: ProColombia facilitated visits by 459 investors from 43 countries that began 591 projects in 24 departments of Colombia worth approximately 18,206 million dollars and that generated 245,000 jobs. The agency also stays in permanent contact with over 600 potential investors that have stated their interest in Colombia as an investment destination.
• Launch of the country brand and effective campaigns: In 2012, ProColombia presented the country brand "CO" to the rest of the world, along with tourism and investment campaigns and promotions. The "Colombia is Magical Realism" tourism campaign was also inaugurated in 2013. • Business macro-roundtables: Since 1997, the year in which the first business macro-roundtable was held, ProColombia has become a
48 Ibid.
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point of reference for the implementation of these commercial meetings that bring together international buyers and Colombian exporters in a single space enabling them to establish commercial relations and promote the possibilities and businesses of Colombian companies. This is one of many activities organized for bringing together international buyers and Colombian businesspeople. The macro-roundtables are efficient and effective tools for bringing together, on the same stage, international buyers and Colombian companies that have export experience or are just beginning the process. It also allows attendees to save time and money by contacting buyers from different countries within the same space and with previously agreed appointments. • Services for increasing exports: New services were designed according to corporate strategies and the needs of Colombian companies according to size and export experience. Some of these are: 1. Futurexpo: Academic events in cities around the country to share the benefits of internationalization with students, entrepreneurs and businesspeople. 2. ExportStars: A strategy for promoting ProColombia’s export strategies where large exports advise small exporters on how to export and provide advice to prevent the most common mistakes made when exporting.
3. The +PRO: A strategy that focuses on promoting global thinking and an export culture as a goal for "The PRO," the first web-based series related to exports, promoted by ProColombia. • Adjustments for adapting domestic offerings to international requirements: The adjustments program allows companies to develop and adapt their offerings to the international market, according to consumer trends and requirements. This initiative was recognized by the TPO Network Awards 2014 in Dubai as the best promotion agency in developing countries for the efforts it makes to move the country towards sustainable growth with inclusion through trade. • Interinstitutional cooperation for better-prepared businesspeople: ProColombia implements different projects with national and international cooperation to improve the export assistance provided to companies. One of these, implemented together with the IDB, is on NonTariff Requirements (NTRs) and called Export Access, made available to businesspeople in April 2018. This project seeks to incentivize exports by micro, small and medium Colombian businesses by mitigating one of the main fears or obstacles for businesses, namely a lack of information on different tariffs in order to export successfully. This tool enables users to query information on packaging, certifications, sanitary and phytosanitary requirements, among others, for 800 tariff headings in the agricultural, agro-industrial and cosmetic sectors for the United States market.
BOGOTÁ
284
COLOMBIA HAS CHANGED
Colmotores. Image: GM
BOGOTÁ
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285
Cartagena. Image: Revista Avianca
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Simplifying and optimizing foreign trade procedures at points of entry and exit Innovation #13: Modernized export processes and proceedings under the highest international standards To facilitate foreign trade and speed up the transit of goods, the Colombian Government has implemented the following three strategies: 53 1) Simultaneous Merchandise Inspection System The Simultaneous Merchandise Inspection System module was implemented in 2011. Through this system, the actions of the Foreign Trade Department extended to ports and airports to optimize the country’s entry and exit points for goods. This has increased efficiencies in coordinating control entities, simplifying and streamlining foreign trade operations. Regarding exports, with participation from the National Customs and Tax Department (DIAN), the Narcotics Police, the Colombian Agricultural Institute (ICA) and the National Institute of Food and Drug Monitoring, as control entities, a single cargo inspection at ports was guaranteed. 2) One-Stop Foreign Trade Window (VUCE) The One-Stop Foreign Trade Window (VUCE, in Spanish), received the National Export Award in 2014, awarded by the Colombian National Export Association (ANALDEX), in the Export Cooperation category. This recognized the cooperation, streamlining, process rationalization and transparency the process brings to the country’s foreign trade. It also considered a substantial reduction in response times that helps optimize associated procedures, processes and costs, in part due to the following: • Entities that participate in the VUCE import model respond to import requests in no more
than two business days. This enables a reduction of the response time for the entire import registry approval process, from 30 business days to 3 business days in total. • Implementation of the VUCE’s Simultaneous Inspection System (SIIS) has optimized the cargo inspection process at the country’s ports, increasing coordination efficiencies between control entities and generating a single cargo inspection through electronic shifts. This reduces inspection times from three to a single day for exports. • A Risk Management policy was also implemented as of October 30, 2015, through the VUCE’s Risk Management System (SAR, in Spanish), that allows the analysis of risk profiles when evaluating import records to have MinCIT automatically approve or manually check the merchandise. Users benefit by having their records approved in three minutes. 3) Use of inspections
scanners
for
non-invasive
Thirty-seven scanners for non-invasive inspections have been installed at Colombia’s most important seaports: Santa Marta, Barranquilla, Cartagena, Buenaventura and San Andres. This reduces the time required for the inspection by the Narcotics
53 Ibid.
COLOMBIA HAS CHANGED
287
Police, from three hours for a physical inspection to 15 minutes with a non-invasive one. This represents a 40% reduction in the time needed for a physical inspection with the support of a small package scanner.
Pacific Alliance
Innovation #14: Pragmatic, efficient and effective regional integration With the installation of Juan Manuel Santos’ Government in mid-2010, within a competitive environment of international economic openness, but with a surge in protectionist ideologies throughout Latin America, it was decided that nations with similar economic models in Latin America needed to join forces and promote regional competitiveness and integration. Under Colombia’s leadership, the creation of the Pacific Alliance was announced in 2011. The Pacific Alliance (PA) was born as an economic and development initiative between four Latin American nations: Chile, Colombia, Mexico and Peru. The fundamental objective of this Alliance is to create political and economic synergies to drive greater growth and competitiveness within its four member economies. This is achieved with the implementation of reforms and policies that will allow progressive movement towards the free circulation of goods, services, capital and persons. All of this from a pragmatic perspective, without the creation of new bureaucracy and consolidating an open economic and free market model for all four countries. 54
involve other areas like climate change research, facilitating student and academic mobility, migration and tourism promotion. These agendas are organized through 34 sectorial committees 55 made up by representatives from counterpart institutions in each country.
Private sector participation 56 In 2012, the Pacific Alliance Business Council (CEAP), was created, made up by recognized business leaders from the four countries. Their function is to bring the rhythm of private corporations to the development of the AP, assist with the development of the Alliance with Government-directed initiatives, ensure fulfillment of the AP’s agenda and promote this trade block internationally. The CEAP currently has close to 60 working groups that work on topics of interest for the private sector, which they promote in all four countries with support from the public sector.
Currently, joint agendas do not only seek to promote business and strengthen competitiveness, they also 54 Alianza del Pacífico (2018). About us. Accessed on may 20th, 2018, form the main website of the Pacific Alliance.
Website: https: bit.ly 29eUGTt
55 Thirty-four technical committees: Promotion agencies, Digital agenda, Institutional affairs, Expert committee (CEAP), Public
purchases, Cooperation, OTC-Regulatory cooperation, Culture, Mining development, Education, Communications strategies, Trade facilitation and customs cooperation, Gender, Ad hoc fishing group, Innovation, Labor, Environment, Movement of persons, Intellectual property, Consumer protection, SMEs, Foreign relations, Services and capital, Tourism. 56 Portafolio (2018). 'The best of the Pacific Alliance is coming'. Accessed on April 11, 2018 on the Portafolio news Website: https: bit. ly 2JI2Cy
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Strengths of the Pacific Alliance 57
• An infrastructure fund was created, which will allow countries to finance their projects with trade block resources.
• The Pacific Alliance is the eighth economic • The block structured insurance coverage against natural disasters. power and the eighth export power globally. • The block represents 37% of Latin America and the Caribbean’s GDP, it concentrates 52% of all its trade and attracts 45% of foreign direct investment.
• The VUCE was implemented as a common platform to allow foreign trade operators in AP countries to carry out administrative processes over a single channel.
• Its four member countries have a joint population of 225 million persons with an average GDP per capita of 16,759 dollars (in terms of purchasing power parity).
• A system for free transit for citizens was implemented between the four countries, and a simple and streamlined system is being implemented for the validation of university degrees to facilitate greater academic and professional mobility amongst the four countries.
• Its population is mostly young and constitutes a qualified workforce, as well as an attractive market with a constantly increasing purchasing • In cooperation with the IDB, an analysis is being performed to know what reforms need to be power. introduced into the legislation of each member company to bring trade practices up to par with the best in the world.
Main achievements 58
• In 2016, a commercial protocol was implemented that eliminated tariffs on 92% of our internal trade. This is expected to reach 100% by 2030. • Financial obstacles were removed for pension funds to be able to invest in the capital markets of all four countries, and these are intended to be considered local investments in the future. • The Mercado Integrado Latinoamericano MILA (Integrated Latin American Marketplace), was created, allowing transactions to be carried out easily between the stock markets of all four countries.
57 Alianza del Pacífico (2018). About us Accessed on March 28, 2018 on the main Alliance Website: https://bit.ly/29eUGTt 58
Portafolio (2018). 'The best of the Pacific Alliance is coming' . Accessed on April 11, 2018 on the Portafolio news Website: https://bit. ly/2JI2CyK
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Agora Convention Center, Bogota. Image: Enrique Guzman
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3
Promotion for the tourism sector
Driving the tourism sector Innovation #15: Mechanisms for achieving quality, sustainable and inclusive tourism Tax incentives The tourism sector is one of the fastest growing sectors around the world. It generates formal employment and is a great driver of sustainable development when it operates judiciously. Colombia has been making great strides in the development of this sector over the past eight years, thanks to tax incentives granted for hotel construction since 2003. This meant that the number of available hotel beds in the country increased 241% over 14 years . 59 These tax incentives were recently extended to promote this industry in municipalities with less than 200,000 inhabitants or those that were affected by the armed conflict, in order to consolidate this sector in remote rural areas of the Colombian territory. The benefit granted is that tourism sector businesses that begin the construction of new hotels will have their income tax reduced and only have to declare 9% of their income, a far lower figure than what is declared today, equivalent to 39%.60 This seeks to provide the greatest possible benefit for regions with natural attractions that are located in remote areas and do not have high quality tourism infrastructure, and to take economic development to rural areas with high levels of poverty or that were previously scenarios for the armed conflict.
Quality Policy so that tourism service providers, tourism industries, and the academic world focus their activities and efforts on fostering, implementing and defining continuous improvement actions to raise the quality standards of tourism services in Colombia. As of the start of 2018, Colombia has had a total of 58 technical standards for the sector that covers accommodations and hospitality, cuisine, travel agencies, tourist guides, timeshares and sustainable tourism subsectors. An additional tool for driving standard implementation, normalization and certification processes made available to all businesses in the sector is the Virtual Certification Platform. The purpose of this platform is to virtually certify tourism service providers in the Sectorial Technical Standards for Sustainable Tourism and also provide support for implementing these standards. The Tourism Quality Certification Mark belongs to the Ministry of Trade, Industry and Tourism, and recognizes those destinations and tourism service providers that have been certified in tourism quality. As such, it is an informative and commercial tool to set apart tourism services that offer comparatively better performance.
Quality improvements TIn light of the fact that quality is a decisive process for the competitiveness of the Colombian tourism sector, the national government designed the Tourism 59 Ministry of Interior and Justice (2013). Decree No. 2755-2003. Accessed on March 28, 2018 on the regulatory Mayor’s Office Website:
https://bit.ly/2Lsb4pn
60 Ministry of Finance (2016). Law 1819-2016. Accessed on March 28, 2018 on the regulatory Mayor’s Office Website:
https://bit.ly/2rXjADT
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Tayrona National Park, Magdalena. Image: Lukeei
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ACHIEVEMENTS Colombia has enjoyed very positive outcomes in the area of tourism. The national government set itself a goal to receive 5.1 million non-resident foreign visitors in 2018, but in 2017, the country had already managed to receive 6.5 million. Likewise, during the first quarter of 2018, 2.1 million visitors were received, 47.7% more than the same period in the previous year. The following is a figure that shows the growth of non-resident foreign visitors to Colombia.
Non-resident foreign visitors to Colombia.
Non-resident foreign visitors
7.000.000
6.531.455
6.000.000
5.000.000 5.357.418 4.778.717
3.747.945
4.000.000
4.192.743
3.354.458 3.491.714
3.000.000
2.000.000
2.610.690
2010
2011
2012
2013
2014
2015
2016
2017
Source: DNP Sinergia.
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293
Entry into the OECD Economy and finances The work carried out by the national government in order to become a member of the OECD in the economic and financial sectors was very important, given that up to five committees of the 23 that evaluate Colombia belong to this sector.61 EFor this reason, the Ministry of Finance took over this process and promoted the agenda of relations and regulatory changes requested by the committees after performing their evaluations. One of the main changes needed was related to the organizational structure of the Ministry of Finance. A new department was created that was responsible for managing public shareholding in companies and Ministers were removed from their boards in order to guarantee decisionmaking without political influences.
greater legal protections for its employees. This enabled the guarantee of ongoing control and supervision of financial markets.
The three commercial challenges of the country to enter the OECD The Colombian Government worked hard to implement the requirements requested by the Trade Committee, as it had to implement 10 corporate commercial commitments on topics that were sensitive for Colombia and its main trading partners.
The most relevant topics were the implementation of tariff and regulatory modifications to incentivize the entry of new competitors into the Colombian market, particularly in the pharmaceutical sector, where registration and pricing schemes for the pharmaceutical sector needed to be changed, as Regarding private companies, the Country well as the scrapping scheme for the land cargo Code was approved. This is a reference made transportation sector. Another important topic up of 33 measures for companies that issue was the formulation and approval of a statutory securities. These measures group together 148 law for the regulations that govern copyrights and recommendations on topics related to the law modernizes Colombian regulations in this area, a and equitable shareholder treatment, general vital recommendation made by the United States shareholder meetings, boards of directors, to protect industries in OECD Member States. control architectures and transparency in This new law was passed by the Congress of the financial and non-financial reporting. Republic at the end of May 2018.62 Another important element implemented was the Financial Conglomerate Law that creates new regulation and oversight mechanisms for financial sector holding companies. This law is considered the most important financial reform of the last 15 years in Colombia.
Approval of the law together with the implementation of tariff modifications meant that, on May 17, 2018, the Trade Committee approved Colombia’s entry into this multilateral entity. This was the last of the 23 committees to sign off on Colombia’s application to belong to this organization.
Reforms were also implemented to strengthen the Financial Superintendence and achieve greater independence from the political cycle and ensure
61 Financial Markets, Tax Affairs, Investment, Corporate Governance and Insurance and Pensions Committees. 62 El colombiano (2018). The three commercial challenges of the country to enter the OECD. Accessed on May 6, 2018 on the El
Colombiano news Website: https://bit.ly/2qSetBq
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6
Social Welfare and Poverty Reduction
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297
Beneficiario del programa Familias en Acciรณn. Foto: Prosperidad Social
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More Prosperous Colombians
“
As long as poverty, injustice and gross inequality persist in our world, none of us can truly rest.
Colombia is a country with great ethnic and social diversity, with regions that are culturally very different from one another. While this makes for a very rich, varied and attractive country, at the same time, these characteristics impose a task on the national and regional authorities that is particularly demanding when it comes to promoting measures that contribute to equality among populations. 1
Nelson Mandela
In spite of this, and thanks to an average economic growth of more than 4% of the gross domestic product observed since 2002 along with an increasingly robust social policy, Colombia has made unprecedented progress in terms of equality and poverty reduction, particularly in the 2010-2018 period.
“
Over the past eight years, profound institutional reforms and cross-cutting public policies were implemented, leading to significant progress in the provision of social goods and services, the formalization of the job market, productive development and connectivity, among other aspects. Although Colombia must continue to implement reforms and strategies to carry on the path to the rapid improvement of social welfare indicators, progress has been overwhelming, making Colombia one of the countries with the best performance on the continent.
1 National Planning Department (2014). Development Plan 2014-2018. Accessed on the DNP’s Website on May 17, 2018. p. 57: https: bit.ly 2dGW y
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Advances in social welfare indicators INDICATOR
2010
2017
VARIATION
Unemployment
11.8%
9.4%
- 2.4 pp
Multidimensional poverty
30.4%
17%
- 13.4 pp
Monetary poverty
37.2%
26.9%
-10.3 pp
Extreme poverty
14.7%
7.4%
- 7.3 pp
0.560
0.508
- 0.052
Informal employment
52.9%
48.4%
- 4.5 pp
Middle Class (Consolidated + vulnerable)
57.6 %
70.8%
13.2 pp
Gini coefficient
Vision
(year 2009)
2
Colombia's State policies promote comprehensive human development, where each of the socio-economic development objectives are articulated in building a society with opportunities for everyone.
Public policies must be geared toward inclusion, social promotion and building equal-opportunity scenarios, with a multi-sectorial approach that serves the population's needs in a comprehensive and coordinated manner.
It aims to implement a free market model of economic development, but within a regulation that will encourage it to be inclusive and work to make all Colombians partakers of the benefits of growth.
Everyone, regardless of their origin, ethnicity, gender, age or disability, must enjoy the possibility to access better public services, appropriate living conditions, roads to connect to the regions and the country, quality healthcare service and education that will allow them to build their future. These conditions are necessary for reducing inequality and poverty.
2 Ibid. P. 63.
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Main Objective Based on this perspective, the main objective proposed by the Government of Colombia through targeted public spending is to eradicate extreme poverty by 2024 with a focus on closing population and regional gaps, achieve the provision of quality healthcare, education and public services, and infrastructure and connectivity to boost social mobility. The achievements in social welfare so far in 2018 are the achievements of an articulated and joint effort by all the State entities. Two of these institutions have a cross-cutting task that is fundamental: the Administrative Department for Social Prosperity and the National Planning Department. Both constitute successful experiences and they have implemented very successful policies and strategies that are explained in this document. With the institutional rank of an Administrative Department, both have the status of a Ministry, but their task is
cross-cutting and not sectorial, enabling them to have major positive impacts on the most vulnerable population and on the effectiveness of the public policies implemented in Colombia. Below are the most succesful practices of both institutions that led to the achievement of these positive outcomes. This chapter will also discuss the case of the Findeter bank of development as an effective and sustainable mechanism of regional development, and the case of the policy for reducing informal employment and the simplification of government paperwork for citizens and businesses.
Chocรณ. Image: APC-Colombia
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Creating the Social Inclusion and Reconciliation Sector Innovation #1: Creation of an innovative institutional architecture, with a cross-cutting approach and high executive capacity
In the year 2011, the country was facing major challenges to respond to the needs of the most vulnerable population. These conditions led the Colombian Government to work on restructuring its strategies and service centers that would provide the most effective solutions for overcoming poverty, inequality and victimization in the framework of the armed conflict. Law 1448-2011 for the comprehensive assistance, care and reparation of victims is a direct result of the government’s commitment to respond to these challenges, because it determines the transformation of the Presidential Agency for
3 Victims Unit (2011). Law 1448-2011. Accessed on the regulatory Website of the Victims Unit on May 22, 2018 https://bit.ly/2Lo4LmL
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Cartagena. Image: APC-Colombia
Social Action and international cooperation in two agencies: the Administrative Department for Social Prosperity (DPS) and the Presidential Agency for International Cooperation (APCColombia). Since then, the DPS has been responsible for establishing policies, plans, programs and projects for the assistance, care and reparation of victims of the armed conflict, social inclusion, care for vulnerable groups and social and economic reintegration. Later that same year, the Congress of the Republic granted authority to the President of the Republic to change the structure of public administration. Also, among its other provisions,
it created the Social Inclusion and Reconciliation Sector through Decree 4155-2011. In this context, it aims to integrate the new objectives and the new institutions created in a logical manner. The goal is to respond to the challenge of achieving a more equitable Colombia with social mobility and to address the challenge of building stable peace throughout the territory, understanding that it is not about taking the State to the territory, but rather about building the State from its own territory.
4 Presidency of the Republic (2011). Decree 4155-2011 Accessed on the regulatory Website of the Presidency of the Republic on May 22, 2018: https://bit.ly/2Lv6eED
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As a result of the transformation and restructuring, the Social Inclusion and Reconciliation Sector is currently made up of the following entities: • Administrative Department for Social Prosperity: the leading entity for the sector, which designs, coordinates and implements the policies, programs and projects for overcoming poverty, social inclusion, reconciliation and recovery of the territories affected most by violence. • The Unit for the Victims: an entity in charge of leading the actions of the State and society to care for and provide comprehensive reparation for victims, in order to contribute to social inclusion and peace. • The Colombian Family Welfare Institute: is the State entity responsible for implementing the policy for the prevention and comprehensive protection of early childhood, childhood, adolescence and the well-being of families in Colombia. • The National Historical Memory Center: is the entity responsible for the construction of truth through the memories of the different actors who have participated in the conflict.
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Pinillos, BolĂvar. Image: Prosperidad Social
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Administrative Department for Social Prosperity (DPS) Innovation #2: Ranking as a ministry for the entity responsible for implementing the policy of reducing multidimensional poverty Prior to 2011, the responsibilities of the DPS were distributed among three different institutions, which had an intermediate rank on the vertical structure of State institutions, making the implementation of projects difficult due to their inefficient interaction with the Ministries. After identifying this situation, the Colombian Government decided to create an entity that would bring together the responsibilities that were previously scattered among several entities and gave it the rank of an Administrative Department. This hierarchy provides it with a seat on the Council of Ministers and facilitates interaction with the ministries and other high-ranking entities, which allowed it to promote the articulation of the efforts of the different government sectors, in order to overcome poverty, as well as achieve social inclusion and reconciliation. That new architecture sent a clear message: development and social inclusion are a priority for the Government of Colombia.
Main objectives of the DPS 5 • Formulate
policy guidelines for reducing poverty and extreme poverty and contribute to the consolidation of the middle class and reconciliation.
• Coordinate
and implement actions that contribute to the creation of conditions for equality and reconciliation in the regions.
• Articulate
and manage the social welfare offerings of public entities, private partners, third sector and innovative agents for the social inclusion of households and communities.
• Improve
the management of the entities' support processes.
• Strengthen
strategic communication and citizen participation.
Cross-cutting Roles of the DPS The DPS, unlike the ministries, has a characteristic that makes it very innovative. Its roles are cross-cutting because it focuses on helping the most vulnerable to overcome multidimensional poverty, which has to do with healthcare, education, housing and infrastructure. Thus, efficiency in its articulation with other sectors is of the utmost importance. The institutional architecture of the DPS is very different from that of a ministry, as it has a sectorial approach and covers the entire population. The DPS works the other way around, as it does not have a specific sectorial theme and it focuses on the vulnerable population, providing it with greater autonomy for implementation, thus promoting rapid results with a high-impact. The DPS can carry out work in healthcare, education, transportation and agriculture targeting vulnerable populations in order to help them overcome vulnerability. In the event that the magnitude of a given project warrants the participation of ministries, the DPS’ rank as an administrative department enables it to carry out quick and effective articulation.
5 Social Prosperity (2018). Strategic Objectives. Accessed on the Social Prosperity’s main Website on May 22, 2018: https://bit.ly/2my2Pu5
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Migration Festival, Chocรณ. Image: APC-Colombia
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Public policy with programs designed for milestones in the lives of vulnerable citizens Innovation #3: Structure of the DPS to support citizens until they reach adulthood and overcome poverty The programs implemented through the DPS aim to resolve the risks inherent to each stage of an individual’s life cycle:
1.
3.
In early childhood, they aim to reduce maternal and infant mortality, strengthen prenatal care, provide care during delivery, enforce the vaccination schedule, and reduce malnutrition and child labor. .
In adulthood, the programs focus on preventing unemployment, achieving greater job quality, boosting entrepreneurship and encouraging savings for old age.
2.
Finally, in adulthood, the programs aim to fight abandonment, abuse, lack of care, lack of healthcare and the lack of income.
In childhood and adolescence, the objectives of the programs focus on reducing truancy, dropouts, child labor, teenage pregnancy, abandonment, gang membership and the lack of social cohesion.
4.
Current structure of the programs by life cycle of the citi en beneficiaries
Early Childhood
Adults
• Program of Comprehensive Care for Early Childhood.
• Programs for income generation. • Periodic Economic Benefits (BEPS).
• Colombian Family Welfare Institute (ICBF) Homes.
Children and young people
The elderly
• Colombian Family Welfare Institute (ICBF) Homes.
• Periodic Economic Benefits (BEPS).
• Primary School • M s Familias en Acción • outh in Action. • Ser Pilo Paga.
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• Colombia Mayor.
Current structure of the programs by life cycle of the citizen beneficiaries • Contributory and subsidized healthcare
• Food security network.
• Unidos Strategy.
• Generations with Well-being.
• Immediate humanitarian care for the displaced population.
• Families with Well-being.
• 100% subsidized housing.
Source: Social Prosperity, Planning dvisory Office
Arboletes, Antioquia. Image: Prosperidad Social
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The DPS’ approach does not focus on handouts; rather, it seeks to create the infrastructure and capacities necessary for vulnerable Colombian families to generate sufficient income to overcome multidimensional poverty. Through the aforementioned programs, the State provides support, institutional supply, education at all levels, access to healthcare, long-term training for households to become self-sufficient, sustainable and solid, thus preventing them from going back to facing poverty and vulnerability when the institutional support of the DPS ends.
The programs that provide financial assistance have specific objectives and requirements of compliance that require individuals to acquire knowledge, training, or tools to help them out of poverty in the long term. It is important to mention that some of the programs mentioned in the table are explained in other chapters of this document because they discuss outstanding innovative experiences.6
Implementation of the Multidimensional Poverty Index (MPI) Innovation #4: Use of the MPI as a key tool for the development of public policies Colombia decided to implement a multidimensional poverty measurement in view of the need to complement the estimate of income poverty to generate a scoreboard that would, on one hand, track the living conditions of households living in poverty and, on the other, make comparisons between population groups in terms of the variables that might be susceptible to public policy interventions.
In the case of Colombia, the unit of analysis is the household, for the following reasons: 1.
The Constitution provides that guaranteeing living conditions is not based solely on the responsibility of individuals.
2.
The instruments, programs and strategies for poverty reduction focus on the household, and not on separate individuals.
3.
Evidence also shows that, in adverse situations, the answer is usually a combination of actions within the household and not on an individual basis.
The Colombian Government defined five dimensions of the household that are susceptible to modification by means of public policies and for which there was already statistical information available: (i) education, (ii) childhood and youth, iii) work, iv) healthcare, and (v) housing and public utilities. In each of these dimensions, the levels of deprivation of each household were also established. In addition, the Colombian Government approved CONPES document 150-2012, which establishes the methodologies and institutional arrangements for measuring poverty in Colombia. It specifically states the following:8
6 Program of Comprehensive Care for Early Childhood (Chapter 1), Ser PIlo Paga (Chapter 1), 100% Subsidized Housing (Chapter 2). 7 Documents prepared and approved by the National Council on Economic and Social Policy (CONPES). More about this Council later in this chapter. 8 National Planning Department (2012). CONPES 150-2012. Accessed on the DNP’s regulatory Website on May 22, 2018: https://bit.ly/2L4j4gQ
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• The methodology for measuring poverty due to insufficient income.
• The sources of information to make the estimates.
• The methodology for the measurement of multidimensional poverty.
• The institutional arrangement for making the measurements, their validation, and the formalization of periodic results.
MPI as a tool for the design and assessment of public policies The Colombian Government implemented the MPI in order to improve the focalization of financial and technical resources, by implementing public policies in the dimensions where the greatest shortcomings are identified. The MPI is not simply a measurement factor; it is also a mechanism that allows the setting of specific targets for the reduction of multidimensional poverty and specific goals for various sectors, all of which are included in the National Development Plan. Finally, it is a generator of early warnings that allows the design and implementation of the relevant public policies.
The operation of the cross-cutting board consists of reviewing the figures of the poverty and inequality scoreboard and the decision-making process to solve problems if the milestones set are not being achieved. The scoreboard covers four general indicators, which can be updated once a year: the monetary poverty rate, the Gini Coefficient, the MPI, and the number of families that have overcome extreme poverty within the UNIDOS social security network. These general indicators correspond to each of the official objectives of the National Development Plan. The scoreboard also shows the individual indicators of the MPI.12
Furthermore, two innovative mechanisms were established for follow-up and inter-institutional coordination in collaboration with McKinsey & Company, which were decisive factors in the implementation of the goals set forth in the development plans. The first, the Cross-cutting Poverty and Inequality Board9, which is a council chaired by the President of Colombia and whose meetings are attended by all ministers and authorities whose work could affect the MPI indicators. The second component was a scoreboard system, which reflects the progress made on different indicators, including the 15 indicators10, of the MPI for Colombia.11
The instances of articulation, such as the Poverty Board, and the continuous monitoring of the monetary and multidimensional poverty indicators served to generate warnings that led to the design of programs and strategies for the most deprived population, which resulted in significant achievements in terms of coordination of public policies and worked as a tool for transparency and accountability. An example that illustrates how the MPI defines the focalization of State resources is the decision made by the Poverty Board in 2011, under which
9 Members: President of the Republic, Ministry of Education, Ministry of Health, Ministry of Housing, Ministry of Agriculture, Ministry of Labor, Ministry of Finance, Family Welfare Institute, National Administrative Department of Statistics, Administrative Department for Social Prosperity. 10 National Planning Department (2011). Multidimensional Poverty Index for Colombia (MPI-Colombia) 1997-2010. Accessed on the DNP’s website on June 10, 2018: https://bit.ly/2uLsC5A 11 Multidimensional Poverty Peer Network (2017). Cross-cutting Board and Scoreboard for the reduction of poverty in Colombia. Accessed on June 10, 2018: https://bit.ly/2JATEC0 12 Ibid.
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it declared the urgency of reducing the gap in housing. As a response, the 100,000 free homes program was formulated as a subsidy in kind. This program is discussed in further detail in Chapter 2 of this document. It is important to mention that in Latin America, Colombia and Mexico are the pioneers in the implementation of this index.
El Retiro, Antioquia. Image: Prosperidad Social
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Legal armoring to ensure the continuity of public policies Innovation #5: Public policies signed into Colombian law In order to avoid structural changes in public policies caused by changes in government, the Government of Colombia decided that when a public policy or program has proved to be successful and has had a significant positive impact, it would be treated as a bill through Congress to legally protect it, and thus reduce the risk of losing its continuity in the long-term. Through this mechanism, the government turns the programs or public policies into State policies. In the case of the Social Inclusion and Reconciliation sector, the Red Unidos and M s Familias en Acción programs have been approved and protected through Congress. Red Unidos Strategy (Law 1785-2016):13 This is the strategy of the Colombian State to provide a comprehensive response for the multiple dimensions of extreme poverty. Public sector entities that provide social welfare are involved in this strategy, including the Ministry of Health and Social Protection, the DPS and the Colombian Family Welfare Institute (ICBF).14 The overall objective of the strategy is to improve the living conditions of 1.5 million families in extreme poverty through the comprehensive, preferential provision of social services and a form of individualized family support carried out by social workers. Más Familias en Acción Program (Law 1532-2012):15 M s Familias en Acción is the Social Prosperity program that provides economic support for all the families with children and adolescents under 18 years of age requiring it in order to gain access to healthy food, timely healthcare for growth and development, and retention in the school system.16
13 Presidency of the Republic (2016). Law 1785-2016. Accessed on the Presidency of the Republic's regulatory Website on May 22, 2018: https:// bit.ly/2LkO1Nm 14 Ministry of Health and Social Protection (2018). Estrategia Unidos Accessed on the Ministry of Health Website on May 22, 2018: https://bit. ly/2NZRLSU 15 Presidency of the Republic (2016). Law 1532-2012. Accessed on the regulatory Presidency of the Republic Website on May 22, 2018: https:// bit.ly/2mvL5zk 16 Social Prosperity (2018). Más Familias en Acción. Accessed on the Social Prosperity’s main Website on May 22, 2018: https://bit.ly/2oZG7wK
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Villanueva, Guajira. Image: Prosperidad Social.
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Information Centralization and Data Management Policy Innovation #6: Implementation of an information system to enhance the effectiveness of DPS public policy Since 2012, through the restructuring of the Administrative Department for Social Prosperity, the entity began a process of change in order to concentrate the information on the population served by all its mission departments in a single place. This gave rise to the idea of designing a tool to collect the basic information of all the attached programs and entities that, in turn, can determine, through predefined rules, the uniqueness or distinction of registered beneficiaries. This project was firsts called the Maestra de Ciudadanos and was subsequently changed to Llave Maestra. In short, Llave Maestra is a tool that allows the collection and consolidation of information on the beneficiaries served by both the entity and by the sector. It is also used to collect the best available data to compare the information that is being loaded with the data in the application, so as to fill in the blanks that other programs did not complete at the time of registration.17
Thanks to the system, the population can be classified to establish different criteria for analysis that may be useful for strategic decision-making within the entity. This is done using the latest information provided by each of those responsible for entering the data from the programs. The system classifies the population according to the beneficiaries’ personal information, data on their location, data relating to their differential approach and records of the care provided by the entity. It also has the ability to receive and cross-check information from other sources outside the Department of Social Prosperity. Llave Maestra has managed to consolidate a cross-checking of information with the information systems of the ICBF and the Victims Unit, thus facilitating the inter-agency action, improving information quality and greatly increasing the effectiveness and relevance of all the programs and policies implemented through the Social Inclusion and Reconciliation Sector.
CONPES 3920-2018: National Data Exploitation Policy (Big Data) Innovation #7: Policy for defining Colombia’s path in the context of the fourth industrial revolution In 2017, the Government of Colombia determined that the country's development must be planned and promoted with the fourth industrial revolution as a cross-cutting pillar. While great strides were made in expanding the infrastructure and broadband Internet access in all the regions of the country, access in low-income households is still limited, low quality and low speed. At the same time, it must be acknowledged that, in the context
of a digital economy, the main objective is not necessarily technology adoption, but to enable people, regions and countries acquire the ability to develop knowledge through new technologies. The use of the data allows the following: • The creation of social welfare and economic development through the production of information and knowledge to improve or create processes, products and services.
17 Online Government Innovation Center (2015). Llave Maestra. Accessed on the Government Innovation Center experiences Website on May 22, 2018: https://bit.ly/2zRamgH
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• The effective solution of problems through public policies, of any business, academic, or civic initiative process. • It facilitates innovation because it brings to light hidden patterns and correlations that could not be seen otherwise.
is important to mention that Colombia is the first country in Latin America and eighth in the world to implement a State policy aimed at promoting the use of Big Data. Australia, South Korea, China, the United States, France, England and Japan are the only ones with autonomous, comprehensive national public policies for data exploitation.18
CONPES 3920 recognizes that technology adoption is only one link in the chain and that progress does not come by itself. Thus, the Colombian Government establishes one primary objective and the four structural pillars to be promoted. It
General objective of CONPES 3920 19 Increase the use of data in Colombia through the development of the conditions for them to be managed as assets in order to create social and economic value. Specific Objectives • Maximize the availability of data from public entities that are digital, accessible, useable, and of quality. • Provide legal certainty for data exploitation. • Have the human capital to create value with the data. • Create a culture of data in the country. CONPES 3920 sets out the conditions for the transformation of Colombian state entities through the concept of Big Data. To do so, it sets out specific goals of results that will be obtained by implementing 45 actions. Through these goals, the competencies of 10 public entities will be articulated with investments amounting to approximately COP 16.728 billion to overcome the identified barriers.20
The goals of the Colombian Government in terms of Big Data for the year 2022 are: • Go from 51% average public assets being digitalized and published in 2017 to 100%. • Increase the percentage of entities that have at least one data exploitation project, which was 9.3% in 2017 and is expected to be 90% by 2022.. • Ensure that at least 50% of public entities develop data exploitation projects to improve the services provided to citizens. Finally, the CONPES document will contribute to the fulfillment of the Sustainable Development Goals (SDGS). It is expected to directly promote the goals related to the development of innovation, the promotion of public access to information, and the significant increase in timely, reliable and high-quality data. Colombia has challenges to face in terms of the measurement of 46% of the global SDG indicators. The main challenges occur due to the low frequency
18 National Planning Department (2018). Colombia is the first country to exploit big data in Latin America. Accessed on the DNP’s main Website on May 22, 2018: https://bit.ly/2Hywm2V 19 National Planning Department (2018). CONPES 3920. Accessed on the DNP’s main Website on May 22, 2018. P. 69: https://bit.ly/2JUR4Z6 20 El Tiempo (2018). Colombia is the first country to exploit big data in Latin America. Accessed on the El Tiempo news Website on May 22, 2018: https://bit.ly/2NkS6yk
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of measurement and the lack of disaggregation, which is why data exploitation (Big Data) will be a fundamental contribution to the improvement in monitoring these objectives. 21 21 National Planning Department (2018). Colombia is the first country to exploit big data in Latin America. Accessed on the DNP’s main Website on May 22, 2018: https://bit.ly/2Hywm2V
Forest rangers, Sierra Nevada. Image: APC-Colombia
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Comprehensive rural interventions Innovation #8: Long-term multidimensional and sustainable interventions It used to be common for State interventions to focus on an intervention mechanism. For instance, if we wanted to improve the situation of the most vulnerable peasants, the State provided them with subsidies, but it did not ensure that they were used appropriately and that the improvement in their quality of life was sustainable. That is why the concept of an integral perspective was introduced, which involves several components and ensures that the improvement in the quality of life of the policy beneficiaries is sustainable.
The Government of Colombia, through the DPS, found that among the goals of reducing gaps between rural and urban areas, it was necessary to improve the quality of life of rural populations and ethnic minorities through programs with comprehensive approaches. To do so, it designed a series of programs to generate new knowledge and a vision of self-improvement, where overcoming poverty is a duty of the members of the household with the support of the State, but not an exclusive duty of the latter.
Below are the three major programs of the DPS to boost exit from poverty in rural areas.
1 Familias en su Tierra
22
The Familias en su Tierra (FEST) program is aimed at the rural population that has been the victim of forced displacement and has returned or been relocated, contributing to their socioeconomic stabilization through comprehensive intervention. The program’s intervention involves all the members of the household, allowing it to influence the family dynamics, which in turn strengthens their relationship with the social and community environment. Its main objective is to contribute to their sense of belonging, socio-economic stabilization, the effective enjoyment of rights and comprehensive reparation for the population that has been the victim of forced displacement and has returned or been relocated, through a system of support to households for the delivery of conditioned incentives in the following components: • Food security. • Reduction of basic housing deficiencies.
• Support for productive ideas. • Strengthening of the social organization and collective activities of symbolic reparation. The methodological design of the FEST program recognizes that the effects have an individual component, and a collective one; therefore, strategies are developed to mobilize the internal resources of each person, such as their creativity, project for the future, sense of humor, resilience, emotional intelligence, the recovery and assessment of their own culture, and motivation to succeed, among others. These individual mobilizations lead to community mobilization, embodied in positive interactions in the form of meetings, community days and the self-management of their needs. At the same time, the FEST program implements a regional approach that can be adapted to the sociocultural realities and educational levels of the participants, thus promoting a differentiated service.
21 National Planning Department (2018). Colombia is the first country to exploit big data in Latin America. Accessed on the DNP’s main Website on May 22, 2018: https://bit.ly/2aZQDtv
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ACHIEVEMENTS Until mid-2018, over 61,000 households of victims of forced displacement who have returned or been relocated were served by the special support system of the FEST program, through the following interventions: • Technical support was provided for the establishment of home gardens and the improvement of healthy habits in 132 municipalities. • The improvement of the homes of victims of forced displacement who have returned or been relocated was promoted and financed in 19 departments of the country.
2 IRACA Program
• Actions were implemented to strengthen community integration among the inhabitants of the region through community days, which are sessions with a reparation approach, and the implementation of 459 community projects. The goal of the FEST program is to serve 10,920 new households during the 2018-2019 period and, from 2019 to 2022, to serve a total of 108,514 households, to reach the goal of 200,000 families in accordance with the CONPES 3276-2016 of the Victims Plan.23
24
The IRACA program carries out comprehensive intervention with a differential approach aimed at indigenous and Afro-Colombian communities in situations of extreme poverty or vulnerability or who are victims of forced displacement throughout the country. To do so, it implements food security, productive and social empowerment and organizational development projects that contribute to the empowerment of the communities in their own development.
economies by increasing production, productivity and the participation of households or communities in traditional, local or regional markets.
The program has a differentiated methodology for its implementation, which seeks the participation and consultation with communities, by addressing the particular conditions and characteristics of the ethnic regions to be intervened. The components developed during the intervention are as follows.25
Based on the characteristics of the population, the methodological design of the IRACA recognizes that impacts have an individual component, as well as a collective one. Therefore, strategies are designed to mobilize the internal resources of each community, such as their sense of belonging; the use of raw materials from the area, the exchange of knowledge, teamwork, the use of ancestral techniques and methods; and the inclusion of youths, women, men and children in the social and organizational development of the community. The IRACA program also implements a regional approach that can be adapted to the sociocultural realities and educational levels of the participants, thus promoting differentiated service.
• Food security: aimed at promoting food security through access to food for enrolled households. • Community productive projects: aimed at strengthening community productive projects that contribute to the invigoration of their own
• Social empowerment and organizational development projects: promote social and organizational development processes of ethnic communities through the improvement of organizational and planning capacities of the strategic stakeholders that manage the territory.
22 Social Prosperity (2018). Familias en su Tierra Program. Accessed on the Social Prosperity’s main Website on May 22, 2018: https://bit.ly/2L2ILLk 23 National Planning Department (2012). CONPES 3726. Accessed on the DNP’s regulatory Website on May 22, 2018: https://bit.ly/2L2ILLk 25 Social Prosperity (2018). IRACA. Accessed on the Social Prosperity’s main Website on May 25, 2018: https://bit.ly/2zT9Yyy
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ACHIEVEMENTS During the 2012-2014 and 2015-2016 periods, IRACA served more than 20,000 households in 51 municipalities of the Colombian territory, which received support in the development of food safety projects, productive projects and social empowerment and organizational development projects, which show the progress made
in decreasing the needs of each community. For 2018, the program will help 10,000 vulnerable households throughout the country to achieve progress in their food security and strengthen their territory. For the 2019-2020 period, the goal is to serve a total of 15,000 households.
3 Rural Families Program
26
The fundamental characteristic of the Rural Families program is its priority focus on the comprehensiveness of human development. This means that the program design responds directly to fighting the multiple dimensions of poverty, by addressing the problems of human and social capital through specific interventions. The Rural Families program is investing in a differentiated methodology in three fundamental aspects: • Social empowerment: a path that goes from the individual to the family, and from the family to the community allows the reconstruction of the social fabric through the scenarios where participants coexist. This component comes into play alongside two final objectives: on one hand, the development of a life plan for each participant and, on the other, the realization of a community project. • Food security: a premise has been set for this program, which states that food security is one of the pillars that support overcoming poverty. Therefore, the fact that healthy eating habits are
promoted and educated is provided in nutrition and the proper use of resources, contributes to the physical and personal development of each household. • Productive projects: This component involves turning the previous efforts into direct actions to fight monetary and multidimensional poverty, through support for the generation of income, productive supply chains and business partnerships. The Rural Families program is a venture with a regional approach aimed at overcoming poverty in vulnerable communities. Its innovation lies in targeting the population without distinction of any kind of additional condition, whether they are victims or ethnic minorities. Thus, the program is a fundamental pillar of the work done in communities with low levels of quality of life, which in many instances have not been victims of the armed conflict, but that have been historically excluded from government policies. It is implemented through work in conjunction with the Food and Agriculture Organization (FAO).
26 FAO (2017). The Rural Families project started in Cauca. Accessed on the FAO news Website on May 25, 2018: https://bit.ly/2uI45yh
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Valparaíso, Caquetá. Image: APC-Colombia.
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ACHIEVEMENTS Through the strategy applied in the department of Cauca, 1,500 households benefited from the capitalization of their productive projects by means of technical assistance, productive supply chains and business alliances. The following outcomes are highlighted, among others: • About 68 productive groups/productive partnerships were created.
• Food and nutrition indices improved in the 1,500 households. • 31 works from the initiatives component were delivered with community-wide impact. • 1,500 life plans were developed, which allowed the creation of objectives and goals, and proposed the mechanisms to achieve them in the different social areas of each household intervened.
Social Impact Bonds Innovation #9: PPP method for social projects Social impact bonds are a new method that completely changes the way in which the State implements social programs through operators, third-parties or the contractors that carry them out. In the past, the Colombian State paid operators to implement a social program and, if there were any failures or unexpected results, the entire cost was borne by the government. Under the method of social impact bonds, the risk to the State is reduced and transferred to operators, similar to public-private partnerships in infrastructure, as explained in Chapter 2 of this document. The mechanism consists of the State designing the policy or program and paying operators that implement it for the results obtained and not for executing the contract. The private operator of the contract must finance the implementation with its own resources and subsequently, if the results are as expected, the State will pay. If, in contrast, the results are not as expected, the costs are borne by the operator. This also introduces the concept of sustainability as a cross-cutting pillar, where after three months, the government assesses the outcomes of the program that was implemented and pays part of
the amount agreed if the results are positive. At six months, another assessment is conducted, and it pays the remaining part if it determines that success has been maintained. Colombia is the first country in Latin America to implement this methodology for social programs and the first developing country to do so worldwide.27 The methodological bases come from the success experienced in the United Kingdom, and the design and implementation in Colombia was achieved thanks to the collaboration of the Inter-American Development Bank (IDB) and the Swiss Program of Economic Cooperation and Development in Colombia (SECO). Until mid-2018, the first social program implemented using the method of social impact bonds was showing positive results. Its main objective was to improve the results of employability and income generation among vulnerable populations in urban areas of Colombia and to improve knowledge and skills regarding the financing of payment for results, social impact bonds and impact investment.
27 Social Prosperity (2018). Specifications of the Social Impact Bonds project. Bogota.
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It was implemented in the cities of Bogota, Cali and Pereira. By April 2018, the goals of each of
the phases had been achieved beyond 100% and the last two phases were being implemented with significant progress, thus demonstrating the capacity to replicate this methodology in other parts of the country.28
National Planning Department (DNP)
Innovation #10: Technical institution to ensure organized, planned and harmonious national development The National Planning Department (DNP) is an administrative department that belongs to the Executive Branch of public power and is directly dependent on the Presidency of the Republic. Its mission is to lead, coordinate and articulate medium-term and long-term planning for the country's sustainable and inclusive development.
3
It conducts studies and research, and proposes public policies, but it does not implement them.
4
It assesses and follows up on the development projects financed by royalties from the exploitation of non-renewable natural resources.
It is a technical entity that promotes a strategic vision of the country in the social, economic and environmental areas, through the design, guidance and assessment of public policies in Colombia, the management and allocation of public investment and the fulfillment of these government plans, programs and projects .29
The technical capacity coupled with its powers of oversight, planning and inter-sectorial coordination make the DNP a very important State in ensuring the harmonious implementation of all public policies at the national level. It also provides strong technical support for the Presidency of the Republic to ensure that the goals of the national government are met.
The National Planning Department is planning the country’s future in the short and medium-term. To do so, it does the following:
The DNP is an entity with few counterparts in Latin America. It was created in the year 1968 during a time where there was strong State involvement in the development models in Latin America, following the modification of previous entities with similar powers. As part of these policy changes, the National Council on Economic and Social Policy (CONPES) was also created. Over the decades, the DNP became consolidated as an essential technical entity within the structure of the Executive Power as the guarantor of the implementation of development approach of the Presidency of the Republic, and as an entity that also ensures the continuity of the State approach in the long term that transcends political changes.
1
It structures the Nation's General Budget with the Ministry of Finance and provides a strategic pattern indicating where the line of investment must be allocated.
2
It designs and conducts follow-ups and monitoring of the National Development Plan.
28 Ibid. 29 National Planning Department (2018). About the Entity. Accessed on the DNP’s main Website on May 24, 2018: : https://bit.ly/25050IU 30 National Planning Department (2018). Mission, Vision and Origin. Accessed on the DNP’s main Website on May 24, 2018: https://bit. ly/2uvPVRk
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Since the mid-twentieth century, the DNP was given decision-making capacity and as of the 1950s, it began to develop general plans and programs for the country with the collaboration
of international technical missions. Later, in the 1970s, the elaboration of more structured development plans began, so its approaches were focused on the country’s economic growth, with emphasis on the planning process.30
National Council on Economic and Social Policy (CONPES): As seen throughout this document, the CONPES has been a very important element as a guiding entity in the development of the different public policies in Colombia. The Council is the highest national planning authority and serves as an advisory body to the government in all aspects related to the country’s social and economic development. To do so, it coordinates and guides the bodies responsible for economic and social management in the government, through the study and approval of documents on the development of general policies presented at the meeting.31
The National Planning Department plays the role of Executive Secretary of the CONPES and, as such, is the entity responsible for coordinating and submitting all the documents for discussion at meetings. These meetings are attended by the Vice President of the Republic, all ministers, the Director of the Administrative Department of the Presidency of the Republic, the Director of the National Planning Department, and the Director of the Administrative Department of Science, Technology and Innovation (Colciencias).
31 National Planning Department (2018). National Council on Economic and Social Policy. Accessed on the DNP’s main Website on May 24, 2018: https://bit.ly/2Lsscbb
Valparaíso, Caquetá. Image: APC-Colombia.
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National Development Plan (PND)
Innovation #11: Sustainable and innovative planning to define the direction of Colombian public policy The National Development Plan is the document that serves as a basis and provides the strategic guidelines for the public policies designed by the President of the Republic through his government team. This document sets out the vision, goals, objectives and policies that must be implemented by all public entities during the four years of the presidential term. Its development, socialization, assessment and follow-up is the direct responsibility of the DNP.
The plan has three main pillars:32 • Diagnosis: an assessment is provided of the situation at the time that the presidential term begins, which allows the structuring of a baseline.
• Public investment plan: contains the multiannual budgets of major public investment programs and projects at the national level, and the specification of the financial resources required for their implementation and their sources of financing. The legal framework governing the PND is part of Law 152-1994, by which the Organic Law of the Development Plan was established. This includes, the general principles of planning, the definition of the national planning authorities and bodies and the procedure for the preparation, approval, implementation and assessment of the National Development Plan.
• General part: indicates the long-term national aims and objectives, goals and priorities of State action in the medium term, and the strategies and broad guidelines of the economic, social and environmental policy to be adopted by the government. 32 National Planning Department (2018). National Development Plan. Accessed on the DNP’s main Website on May 24, 2018: https:// bit.ly/2dXrUZO 33 Ministry of Finance (1994). Law 152-1994. Accessed on the Ministry of Finance's regulatory Website on May 24, 2018: https://bit.ly/2LtP22a
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The DNP must lead the process of formulating the National Development Plan and coordinate the inclusion of relevant comments on the part of the National Planning Council and the National Council on Economic and Social Policy. It must also approve the methodologies for the design, monitoring and assessment of policies, programs and projects and the methodologies
for the identification, formulation and assessment of projects financed by domestic resources. Finally, the DNP coordinates all the public entities and agencies to ensure due compliance with and implementation of the policies, programs and projects contained in the National Development Plan.
Recent innovations In the last PND, All for a New Country 2014-2018, the following three main pillars were established: :34
1
Colombia in Peace, which seeks the full exercise of citizens’ rights through strengthened institutions that are making progress in closing gaps.
2
An equitable Colombia free of extreme poverty, to promote comprehensive human development with equal opportunities for everyone.
3
Colombia, the most educated, which encourages education as a mechanism of social equality and economic growth in the long term..
In order to fulfill the vision of these three pillars, the PND implemented six crosscutting strategies: infrastructure and strategic competitiveness, social mobility, transformation of the countryside, consolidation of the social State of law, good governance, and green growth. Two substantial innovations implemented in the 2014-2018 PND are: (i) the proposition of a results-based work plan, with specific and clearly defined goals that are consistent with the Medium-Term Tax Framework. This removes part of the aspirational spirit and good intentions of previous plans and turns it into a clear and specific roadmap that must be complied with; and (ii) a bottom-up approach was implemented, which was built in conjunction with the different regions of the country by stipulating individualized strategies for each of them, through visits by the DNP to the authorities, stakeholders, trade unions and the civil society in twelve cities in Colombia.35
34 Portafolio (2014). National Development Plan base lists. Accessed on the Portafolio news Website on May 24, 2018: https://bit.ly/2L9JTAk 35 Armenia, Cali, Cúcuta, Leticia, Montería, Mosquera, Neiva, Pasto, Pereira, San Andrés, Soledad and Yopal.
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Arboletes, Antioquia. Image: Prosperidad Social
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System for Selecting Beneficiaries of Social Programs (SISBEN) Innovation #12: New system for the classification of beneficiaries for State aid The System for Selecting Beneficiaries of Social Programs (SISBEN) is a tool, comprised of a set of rules, standards, and procedures for obtaining reliable and up-to-date socio-economic information that divides the citizens of the country according to a score, which determines whether or not they are eligible for receiving government aid, such as subsidies or support in social programs. This classification of citizens by scores allows the central government and regional entities to focalize public spending so that social spending is allocated for the poorest and most vulnerable population groups.36 Through a survey, it identifies the potential beneficiaries of social programs in the areas of healthcare, education and social welfare, among others. The SISBEN is the gateway to the government’s subsidized system. Although the SISBEN is the main individualfocused instrument used by the vast majority of social programs in the country since 1995, there have been profound changes to the system since then to solve problems regarding the approach and quality of information that decrease its effectiveness. In 2016, the Colombian Government approved CONPES 387737, which stipulates the creation of a new SISBEN. It introduces several changes for the quality of the information collected in the survey. By doing this, the government ensures that the most vulnerable individuals are precisely the ones that receive support and assistance, thus improving the focalization of State resources. One of these structural changes is that the new SISBEN also assesses the monetary income and expenses of families, rather than just their material standard of living (for example: the number and types of appliances in the home). At the same time, validation processes and quality
controls are implemented to check the records of people according to different criteria; a record undergoing verification cannot be used by a social program to grant a subsidy or benefit. The New SISBEN (SISBEN I ) was launched at the end of the year 2017 through the implementation of surveys throughout the national territory to completely update the database and ultimately replace previous information. The goal of SISBEN I is to reach 11.5 million surveys by 2019, which is 4 million more compared to those administered in SISBEN III. Through the 11.5 million of surveys, around 40.5 million Colombians will be classified. One of the major innovations in the collection of information is that pollsters have an electronic device at their disposal with advanced software that ensures speed in the collection of information, as well as greater accuracy and quality. The new methodology uses mobile capture devices, which improves the identification of citizens, because accurate data are obtained by scanning their identity document. Also, the information is planned to be cross-checked with 25 databases of various State entities to ensure even more detailed and comprehensive information. Until March 2018, the cross-checking of information with different information systems, such as the Solidarity and Guarantee Fund of Colombia’s General System of Social Security in Health (FOS GA) and the Parafiscal and Pension Management Unit (UGPP), has identified more than 100,499 cases of individuals included in the system without having met the requirements. Also, the surveys had been administered in 189 municipalities in the country to almost two million people, which corresponds to phase 1 of the data collection for SISBEN I .
36 National Planning Department (2018). SISBEN. Accessed on the DNP’s main Website on May 24, 2018: : https: bit.ly 2uG DdB 37 National Planning Department (2016). CONPES 3877-2016. Accessed on the DNP’s regulatory Website on May 24, 2018 : https: bit.ly 2wb 2 c
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Villanueva, Guajira. Image: Prosperidad Social.
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Family agriculture project FAO, Nariño. Image: APC-Colombia
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Financial Institution for Territorial Development (Findeter) Innovation #13: Development bank with a comprehensive portfolio to boost the development of the regions of Colombia Like BANCOLDEX, an innovation discussed in Chapter 5 of this document, the Colombian Government established a development bank in 1989, specifically designed to boost the development of infrastructure at the regional level; this bank is the Financial Institution for Territorial Development (Findeter). It was created as a credit establishment, under private law, attached to the Colombian Ministry of Finance and Public Credit and overseen by the Financial Superintendence of Colombia. Although Findeter was operating as a secondtier credit establishment since it was created, providing financing to the regions of the country in order for them to implement regional infrastructure projects, in the year 2011, it underwent a transformation process with the aim of making it a development bank to be the strategic partner of the regions to generate well-being for their inhabitants through comprehensive and sustainable financial and non-financial solutions for the implementation of projects.39 This main objective, which was set by Findeter in 2011, gave rise to a rigorous and enriching process of transformation and continuous improvement. To do so, it received financial and technical support from multilateral organizations, cooperation agencies and development banks from the around the world, since the ambitious transformation not only warranted the contribution of financial experts, but also required experts in regional planning and the preparation, follow-up and implementation of projects to build Findeter’s new comprehensive structure, which is based on three pillars.
Structuring pillars of Findeter’s comprehensive offering40 • Planning the development of Colombia’s territories and regions through comprehensive solutions in the short, medium and long term. • Financing of public and private entities through rediscount loans, with terms of up to 15 years that allow the financing of up to 100% of the total project costs. • Implementation of projects through the service of technical assistance to carry out precontractual and contractual processes, and by monitoring the implementation of social infrastructure programs. International cooperation for the transformation of Findeter For the successful transformation of Findeter into a comprehensive development bank, the international cooperation of multilateral agencies, development banks and cooperation agencies was essential. Until mid-2018, it had the financial and technical contribution of more than 33 international institutions whose donations enabled Findeter to go from being just a recipient of technical cooperation to becoming a successful case study that annually receives delegations from different countries that are implementing reforms similar to those being implemented by Findeter since 2011. To date, Findeter has received or managed funds of non-reimbursable technical and financial cooperation amounting to USD 50 million.42
38 Findeter (1989). Law 57-1989. Accessed on the Findeter corporate document portal on May 24, 2018: https://bit.ly/2LvrWIL 39 Findeter (2018). Who we are? Accessed on Findeter’s main portal on May 24, 2018: : https://bit.ly/2JAnneu 40 Ibid. 41 Rediscount loans are extended through commercial banks; Findeter is a second-tier bank that lends money to commercial banks and they, in turn, lend it to the territories. 42 Findeter (2018). Presentation on the structure and progress of Findeter programs. Bogota.
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A clear example of the stability achieved by Findeter in recent years thanks to international cooperation and the implementation of strict procedures and standards is that the bank’s funding sources went from being almost entirely from the local capital market to having at least 30% coming from multilateral banks and international trade. At the same time, it managed to make the transition from financing under a State-backed guarantee, through financing with the endorsement of the World Bank, to finally sign a loan with the German Development Bank KFW without the need for guarantees backed by the Colombian State or the World Bank, because Findeter's stability is sufficient to ensure a reduced risk premium. This shows that the Entity’s procurement and internal processes have the seals that certify the highest quality and transparency. Main programs and outcomes Findeter implemented three programs for the transformation of regions through the territory based on comprehensive short, medium and long-term solutions; these are as follows.43 • Competitive and Sustainable Cities: This is a platform led by the IDB and Findeter to promote strategic projects aimed at transforming intermediate cities through organized planning, improving the quality of life of their inhabitants and competitiveness with a sustainable development perspective. The plans are developed using a bottom-up approach, where communities are the central pillar to ensure that the proposals are effective, sustainable, relevant and legitimate. Up to mid-2018, 23 intermediate cities in Colombia have benefited from the program, 11 plans had been delivered to the relevant authorities and 12 were under construction. These plans are benefiting more than 11 million inhabitants, 1.2 million of which are populations
displaced by the armed conflict. Colombia is the country with the largest number of cities under this program.44 • Flagship Cities: This is a program whose purpose is to close the gaps of inequality and support the planning and development processes of cities of strategic importance to the country, located in areas of vulnerability. This program is based on five dimensions: environmental, tax, urban, economic and social. The methodology used arose from Findeter’s process of capacity building and learning from the methodology of the Sustainable and Competitive Cities Program to adapt it to the needs of cities with conditions of greater vulnerability and reduced competitiveness. The technical cooperation of the French Development Agency (AFD) was very important for the implementation of this program. Until mid-2018, 28 cities in Colombia were under this program, benefiting more than two million inhabitants and five million people displaced by the armed conflict. Also, through this methodology, Findeter designed a program that delves into the details of the economic development and competitiveness of cities, which is currently benefiting five cities. • Caribbean and Santanderes Diamond: this initiative was implemented in a partnership with Microsoft, the Metrópoli Foundation and Colciencias, and allowed the identification and management of physical or digital projects that, in the long term, could improve the competitiveness of the 12 departments that make up the region, all under a regional integration and development approach. Until mid-2018, strong gains were reported in areas of tourism, agriculture, environment, logistics, transportation, and science, technology and innovatio.46 Findeter also carries out sectorial planning aimed at improving mobility of cities in order for
43 Findeter (2018). Who we are? Accessed on Findeter’s main Website on May 24, 2018: : https://bit.ly/2zGQEUQ 44 Findeter (2018). Presentation on the structure and progress of Findeter programs. Bogota 45 Ibid. 46 Ibid.
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them to be sustainable and discourage the use of cars. Until mid-2018, 13 cities in the country were part of this program. The commercial results of Findeter’s work in Colombia's regions are overwhelming. Between August 2010 and April 2018, more than COP 18 billion (approximately USD 6.3 billion) were financed in six sectors (infrastructure and transportation, housing, water and basic sanitation, health and education, energy, innovation, and ICTs) through more than 4,000 projects in 414 municipalities. This shows that regional planning is not only desirable, but also profitable.
Finally, in regard to the pillar of technical assistance, Findeter implemented multiple government programs, through projects that account for investments of over COP 8 billion (approximately USD 2.8 billion), in water, infrastructure and housing, through 864 projects in 29 departments. It is important to mention that the technical assistance provided by the bank to the housing sector emerged from the programs Free Housing and My House Now for Savers, both discussed in further detail in Chapter 2 of this document.
47 Ibid. 48 Ibid.
El Retiro, Antioquia. Image: Prosperidad Social
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Policy for reducing employment and business informality Innovation #14: Reduction of informal employment through mechanisms of modernization, simplification of paperwork and tax reduction Colombia’s performance in reducing unemployment since the beginning of the last decade has been positive. The unemployment rate in Colombia went from 14.6% to 8.6% between January 2001 and January 2017, mainly thanks to sustained economic growth. Also, this decrease in unemployment was combined with an increase in labor participation from 63% in 2001 to 65.6% in 2017. However, its performance in reducing the levels of informal employment was not proportional to the good performance of employment indicators, which revealed that there were intrinsic elements of the formal job market in Colombia that had to be modified. At the same time, it was necessary to implement policies to encourage the reduction of frictional and structural elements of formal unemployment and encourage the formalization of employment. In an economy like Colombia’s, a high level of informality has a negative impact on levels of productivity and competitiveness. Furthermore, it decreases the ability of the citizens with informal jobs to cope with adverse situations such as unemployment or, in the long term, make it through old age with good quality of life given the lack of investment in social security and savings.49 In view of this situation, the Colombian Government began to implement changes in the tax and contribution regimes hanging over Colombia’s formal payroll, while implementing programs and policies that encouraged the formalization of employment even further. Barrancabermeja Oil Refinery, Santander. Image: Ecopetrol
49 Inter-American Development Bank (2016). "Colombia. On the way to becoming a high-income country with social mobility." Accessed on the IDB document portal on June 11, 2018: https://bit.ly/2JB6DDM
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Reduction of taxes and contributions on the payroll of formal workers 50 Innovation #15: Implementation of policy reforms to reduce non-salary-based labor costs in the payroll paid by the employer Law 1429-2010 reduced the contracting costs of small businesses, which began this process of decreasing costs in the payroll. Law 1429 exempted small businesses from the payment of contributions to family compensation funds, the SENA, the ICBF and solidarity component of contributions for health care, during the first two years following their formalization or startup of their activity. After that, these payments are made in proportion to 25%, 50% and 75% in the following three years. At the same time, small companies were exempted from income tax and the cost of the business registration during the first two years, and only paid the proportion of 25%, 50% and 75% in the next three years.52 Law 1607-2012 (Tax Reform) Until the year 2012, there were major non-salary-based labor costs in the payroll that had to be paid by employers. They had to pay 12.38% of the worker’s salary toward pension; 8.5% to healthcare; 9% as parafiscal contributions to finance the SENA (2%), ICBF (3%) and the Family Compensation Funds (4%); 8.33% to unemployment insurance; and 12.5% in the form of a paid vacations and bonuses. Therefore, further reforms had to be implemented in order to relieve employers’ burdens and accelerate and consolidate the formalization process in Colombia. It was in the year 2012, under the Government of President Juan Manuel Santos, that a tax reform was adopted (Law 1607-2012)53 which consolidated the formalization trend and became a key element which has made it possible to reduce informal employment in Colombia from 56.8% to 49.4 % as illustrated in the figures below.
50
51
52
53
All taxes, contributions and other benefits that must be paid by the employer, but do not reach the employee in the form of salary. A small business is defined as one that has less than 50 employees and assets of less than the equivalent of 5,000 minimum monthly salaries. Ministry of Finance (2010). Law 1429-2010. Accessed on the Bogota City Hall regulatory portal on June 11, 2018: https://bit.ly/2rkABIm Ministry of Finance (2012). Law 1607-2012. Accessed on the ICBF regulatory portal on June 11, 2018: https://bit. ly/2O0v1SL
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Col-Col, Florencia, Caquetรก. Image: APC-Colombia COLOMBIA HAS CHANGED
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Evolution of formal jobs and employment indicators Rate of Informal Employment National Total – Annual Average 2012 Tax Reform
70.2 69.4
69.9 69.9
70.2
67.3
64.9
65.4
63.7
2008
2009
2010
2011
2012
2013
2014
2015
2016
63.2
2017
Rate of informal employment and formal jobs 13 most important urban areas of Colombia- Anual Average 57.9
57.0 57.7
56.8
2012 Tax Reform
57.8
53.1 50.4
54.9 51.9 46.9 43.0
2008
48.1
49.6
50.6
49.4
43.2 42.3
42.1
42.2
2009
2010
2011
45.1
2012
2013
2014
2015
2016
2017
Implementation of programs and policies for the formalization of jobs and business Innovation #16: Use of new technologies and digitization to encourage the formalization of jobs and business As a complement to the tax policies discussed above, the Colombian Government designed four programs focused mainly on the use of new
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technologies to consolidate the formalization of jobs in Colombia.
Special Administrative Unit of the Public Employment Service: In 2013, through Law 1636 and the issuance of Decree 2852, the Colombian Government strengthened the public employment service financially and institutionally and created the Special Administrative Unit of the Public Employment Service. It is under the supervision of the Ministry of Labor and plays the role of consolidating the provision of the service under a new concept based on the centralization by law of all job openings at the national level and their full availability via website serviciodeempleo. gov.co. The Public Employment Service (PES) is an institution that serves as an intermediary on the job market in Colombia to reduce friction in the job search. The PES helps workers to find a job that fits their profile, while it helps employers to hire workers according to their needs, in order to increase the productivity and competitiveness of their businesses. Through the changes implemented in 2013, the PES is backed by a network of service providers in which public, private, mixed, for-profit or non-profit agencies are centralized with authorized service centers throughout the country. The PES brings together supply and demand under a centralized management, unlike the case before 2013, where there was a lack of effective articulation between the public and private sectors. Currently, family compensation funds, department and city governments, employment exchanges of universities, unions and private agencies participate in the PES, consolidating more than 257,000 available openings. It is also developed a smartphone app called Mi SPE, which is available for all citizens.
Electronic billing:
decided to gradually implement electronic billing until making it mandatory in the year 2019. It is one of the most important tax projects in the history of Colombia, which is being implemented in the framework of Article 308 of Law 1819-2016, the most recent tax reform. It will provide all the information in detail, at the sectorial level in real-time regarding most of the transactions of goods and services that take place in the country, thus helping to formulate more effective and appropriate public policies. Electronic invoices are digital documents that back the transactions of purchase and sale of goods and services. The seller issues this receipt to the buyer through the technological platform provided for this purpose.
This mechanism has the following features:55 • It allows an increase in tax control, by reducing evasion and informality and improving tax collection. • It leads to greater efficiency in operational processes of negotiation, delivery and payment of goods and services between companies. • It reduces costs associated with printing invoices, as well as product storage and distribution. • It facilitates financing for micro, small and medium-sized businesses (SMBs), through tools such as factoring. Electronic billing began in Colombia in 2017 in 58 large companies that volunteered to implement it. By May 2018, there were more than 620 taxpayers issuing electronic invoices on their own initiative.
Inspired by the trend in Latin America, and particularly in the Chilean model, Colombia 54
55
Special Administrative Unit of the Public Employment Service (2018). Public Employment Service (PES). Accessed on June 11, 2018 https://bit.ly/2oc2UUS Dinero (2014). The benefits of electronic billing. Accessed on the Dinero news Website on June 11, 2018 : https://bit.ly/2O4tHOO
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By September 2018, 3,500 major taxpayers will have the obligation to issue such receipts. The two groups represent around 65% of the national
taxation.56 Finally, by the beginning of 2019, 500,000 taxpayers will be expected to issue their invoices electronically.
Paperwork reduction and simplification policy Innovation #17: Reduction of paperwork and creation of a centralized information system to monitor bureaucracy at the national and regional levels
The Colombian Government has also carried out a number of initiatives to facilitate the opening of new businesses, by reducing costs associated with the formalization of their activities and providing citizens with quick access to the State’s institutional offering. The main initiative was the adoption of Decree Law 019-2012,57 also known as the Paperwork Reduction Act, which creates a new relationship between the State and citizens as the users and recipients of its services. The aim is to make life a little friendlier, with the commitment of public institutions to be more efficient and effective, through the abolition or reform of unnecessary paperwork, procedures and regulations corresponding to the Public Administration. The decree implemented a very important innovation for the policy on paperwork rationalization and streamlining, the Centralized Paperwork Information System (SUIT). It consists of a supporting tool whose purpose is to be the sole valid source of information on the procedures offered by all national and regional State institutions. This information system is a fundamental tool because it allows all entities and, particularly the Administrative Department of Civil Service (administrator of the policy), to centralize all information so as to improve the effectiveness of the implementation of the paperwork reduction and simplification policy.58
Furthermore, the Ministry of Information and Communication Technologies, in a partnership with the DNP and the Administrative Department of the Civil Service (DAFP), is working on the citizen service strategy, to ensure excellence in the provision of the services offered by the State to citizens. The main achievement of this partnership is the implementation of the nomasfilas.gov.co website, a centralized site to carry out procedures with the State online, quickly, easily, and safely. It centralizes all the formalities and organizes them by categories such as education, healthcare, housing and transportation, among others.59 Similarly, up to May 2018, the Ministry of Trade, Industry and Tourism, together with the businesspeople and local authorities, had managed to intervene in 175 procedures (25 eliminated, 89 simplified, and 61 automated) as part of the actions to facilitate transactions and increase the competitiveness of the country’s small, medium and large businesses. In short, since 2012, the government has managed to eliminate more than 1,500 procedures and aims to eliminate 2,000 by the end of 2018.
56 La FM (2018). What is electronic billing and for whom will it be mandatory starting in 2019? Accessed on the La FM news portal on June 12, 2018: https://bit.ly/2NtLqxM 57 Presidency of the Republic (2012). Decree 019-2012. Accessed on the regulatory portal of the Presidency of the Republic Website on June 11, 2018 https://bit.ly/2ucJG2S 58 SUIT (2018). Centralized Paperwork Information System (SUIT). Accessed on the SUIT’s main portal on June 11, 2018: https://bit.ly/2L3lkoN 59 No Más Filas (no more queues) (2018). What is No Más Filas. Accessed on the No Más Filas main portal on June 11, 201: https://bit.ly/2Ly2q5p
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7
International Development Cooperation
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Col-Col, Vereda el Polo, Cรณrdoba. Image: APC-Colombia BOJAYA
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Positioning Colombia in the world International cooperation has constituted the tool, and the comprehensive method used by countries around the world since the end of World War II to position themselves on the global stage and strike a balance between the tensions caused in other areas such as trade, economy or social inequality. As defined by President Juan Manuel Santos in his opening speech for the Colombian Presidential Agency for International Cooperation (APC-Colombia) in 2012, cooperation involves the firm belief that no one can achieve a goal unless we all want to achieve it; cooperation is a solidarity-based system that allows the stakeholders involved to walk toward the same destination together, joining forces that articulate needs and opportunities so that no one is left out. Today, international cooperation is a fundamental aspect of international relations in any country and, as in the case at hand, of Colombian foreign policy. It is the tool that complements the efforts made in economic, social and environmental areas because Colombia offers and receives cooperation in these areas. As a result, cooperation positions each country as an international stakeholder, which extends its hands to contribute to the progress of others or requires support to continue striving towards a decent level of development for its inhabitants.
nuel Santos’ administration, cooperation has made it possible to leverage resources for building peace and the post-conflict period, in addition to showing a side of Colombia other than international drug trafficking or violence. International cooperation has been a fundamental tool for economic and social development in developing countries. In the case of Colombia, the government agreed on a roadmap in 2011 for the country's accession to the Organization for Economic Cooperation and Development (OECD), which required the synchrony of various thematic areas such as the environment, trade, labor regulations and the healthcare system, among others. This chapter outlines the major cooperation innovations of the government under President Juan Manuel Santos aimed at achieving this objective and that of long-term comprehensive development. Below are the good practices and innovations in the field of international cooperation achieved over the last eight years.
As a result of this dynamic and the very nature of cooperation, Colombia has made significant progress in this area, positioning the country as a provider and recipient of cooperation resources in the region and in the world. However, cooperation is not an isolated issue and by its very nature, it works to the benefit of other areas. Thus, throughout the two terms of President Juan MaCOLOMBIA HAS CHANGED
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Decree 4152 of 2011: Creation of APC-Colombia Innovation #1: New institutionality as the technical focal point for international development
International development cooperation in Colombia has been evolving since the 1970s, when the Special Division for International Technical Cooperation was created in the National Planning Department (DNP),responsible for coordinating cooperation at national level together with the Ministry of Foreign Affairs. In the 1990s, Colombia was classified by international multilateral organizations as a middle-income country. This led to the drafting of CONPES 2768, which provided the public policy guidelines for the management of the country’s international cooperation policy. At the same time, in 1993, the Colombian Agency for International Cooperation (ACCI) was created
1 Documents prepared and approved by the National Council on Economic and Social Policy (CONPES). Chapter 6 elaborates on this Council.
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Col-Col 2018, Medellín. Image: APC-Colombia
as an entity attached to the DNP, which together with CONPES 2768 structured the institutional basis for the management of international cooperation in Colombia.2
The 2002-2006 National Development Plan: Toward a State for the Community explicitly refers to the topic of international cooperation for the first time and, in 2003, the government decided to attach the Agency to the Administrative Department of the Presidency of the Republic (DAPRE). However, in 2005, the government decided to merge the topic of international cooperation with social programs that
depended on the Presidency of the Republic, creating the Presidential Agency for Social Action and International Cooperation (ACCIÓN SOCIAL). The topic of international cooperation was relegated as a mission objective in this new institution.3 During the first term of President Juan Manuel Santos’ administration, the need was identified to strengthen the institutionality of international cooperation in the country. Thus, in November 2011, by Presidential Decree, the current Presidential Agency for Cooperation was created, as an entity attached to the DAPRE, decentralized from the executive branch of the national government. According to the creation decree, APC-Colombia has legal capacity, administrative
In 1999, this attachment was changed to the Ministry of Foreign Affairs. APC-Colombia (2013). Management of non-reimbursable technical and/or financial cooperation resources. Accessed on the DNP on May 12, 2018: https://bit.ly/2vCbPmH
2 3
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and financial autonomy and its own capital, with "the mission objective of technically managing, guiding and coordinating the public and private, national and international, non-reimbursable financial and technical cooperation received and granted to the country; as well as implementing, managing and supporting the channeling and execution of resources, cooperation programs and projects, according to the foreign policy objectives and the National Development Plan."4 This change, driven by the Government of President Juan Manuel Santos, ratified a significant step in the evolution of the institutional framework for cooperation, since it allowed the technical specialization of cooperation topics, complementing the foreign policy led by the Ministry of Foreign Affairs and steering international cooperation toward the country's development priorities. The creation of APC-Colombia has enabled the implementation of projects with cooperation counterparts around the world, making it a strong technical support for the country's foreign policy. In addition, it has established the lines for the traditional cooperators, first through the 2012-2014 National Strategy for International Cooperation (ENCI) and then with the 2015-2018 Roadmap for International Cooperation, as a way of adapting cooperation to the priorities set out in the National Development Plans. As a result, as of June 2018, 92% of the cooperation received by the country has been adjusted to the priorities established by the national government.
4
Ibid.
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This has allowed the guidance of Colombia’s traditional cooperators, such as Germany, the United States, the United Kingdom, Sweden and Switzerland, which lead important projects through their cooperation agencies and operators in the country. Thus, through its technical liaisons with cooperating countries, APC-Colombia has generated important synergies in the allocation of resources and the implementation of development projects in the country.
Matching funds 2016, Rabanal moorland, Boyacรก. Image: APC-Colombia
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Information regarding the cooperation and its analysis One of the roles of APC-Colombia is "to produce, process and share information and knowledge for the analysis of the international cooperation dynamics in the country."5 APC-Colombia created an information system called CĂclope, which currently consolidates all the cooperation projects registered in the country, and in the next few months, it is also expected to show all the cooperation projects offered by the country. This tool currently georeferences more than 3,800 international cooperation projects, with their respective technical specifications, at the municipal level, making it an exercise in transparency before the international community and at the service of all citizens. This information has also enabled the country to produce analyses on international cooperation, keep up with the global trends on this topic and attract resources from new sources of cooperation, such as the global environmental funds, the countries of the Middle East, and international philanthropy, in order to mitigate the effect of declining movements in Official Development Assistance (ODA) around the world.
5
Decree 4152-2011.
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ELE Fealac Project, Cartagena. Image: APC-Colombia.
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Implementation of international cooperation funds Innovation #2: Design and implementation of financial instruments to channel the support of the international community To strengthen the process of transition to peace, the Colombian Government prepared CONPES Document 3850 called the Colombia in Peace Fund. This document defined the general framework and the guidelines for the creation and startup of the Colombia in Peace Fund (FCP), as a tool to facilitate the articulation and coordination of the various initiatives and investments for peace. As part of the definition of the institutional framework of coordination for the operation and financing of peacebuilding projects, the FCP is complemented by four international financing instruments, which draw on resources from international cooperation to support the peace process and sustainable development. These four instruments have received the support of the international community, with commitments in excess of USD 410 million exclusively through these vehicles; they are:
1. World Bank Fund for Peace and Post-conflict, created in 2014. 2. United Nations Post-conflict Fund, created in
2016.
3. European Union Fund, created in 2016.
the European Union, the Inter-American Development Bank (IDB) and the World Bank, which manage the funds at their headquarters. The Colombian Government is responsible for issuing the strategic line and prioritizing the investments according to the country’s needs. With the support of the Presidency of the Republic and the Ministry of Foreign Affairs, APC-Colombia provided support in the design of these financial mechanisms and established a thematic specialization for each of them, with a view to generating efficiency and diligence, as well as avoiding duplication and competition over funds between these mechanisms. In the case of the United Nations Post-conflict Fund, in 2015, the Colombian Government and the United Nations jointly identified the need for an expedited instrument to finance rapidresponse projects for peacebuilding. Both parties worked together in the creation of this fund and had it ready for project implementation by the end of 2016, at which time the negotiation of the Peace Agreement between the government and the Revolutionary Armed Forces of Colombia (FARC) was coming to an end. This exercise in preparing a financial instrument of international cooperation made it possible for the Fund to finance 11 community infrastructure projects (schools, bridges and roads) by the end of 2016.6
4. Sustainable Colombia Fund of the Inter-American
By that time, another of the Fund's programs called Manos a la Paz managed to send more than 250 university students from different Colombian cities to a number of Colombian towns to support local development projects.7
These financial instruments were created in conjunction with Colombia's main multilateral partners, such as the United Nations,
In the case of the European Union Fund, the government reported the need to prioritize
Development Bank (IDB), created in 2017.
6
United Nations Post-conflict Fund (2016). 2016 Annual Report of the United Nations Post-conflict Fund. Accessed on the Post-conflict Website on May 15, 2018: https://bit.ly/2NVMv2F
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four departments for the Fund’s intervention (Caquetá, Guaviare, Nariño and Putumayo), as well as establish priorities for rural development and reintegration issues. As for the World Bank Fund, the government defined the need for the Fund to complement efforts on issues of reparation for victims of the armed conflict, which was achieved through the implementation of a multi-year project with the Victims Unit (UARIV). As for the IDB's Sustainable Colombia Fund, and thanks to the instruction given by the President of the Republic, the government managed to sit six government stakeholders at the same table, enabling coordination between the environmental and rural sectors, together with international cooperation to direct the funding of projects related to sustainable development. This instrument of cooperation is unique in the world due to its capacity to coordinate between multiple actors, and it has become a State endeavor for promoting sustainable development in the country over the next 15 years.
7
International cooperation funds have allowed the donor countries and the Colombian Government to make joint decisions in Colombia concerning the allocation of cooperation resources. This coordination effort has been led by three government entities (the High Counselor for Post-conflict, APC-Colombia and DNP), which sit on the boards of directors or the governing boards of the four funds and respond directly to the line marked by the oversight bodies such as the President’s Council of Ministers and the Postconflict Cabinet. The funds have also been a clear example of how international cooperation can contribute directly to a country's development objectives, particularly a country at conflict or in a post-conflict scenario.
Ibid.
Matching funds 2017, Yondó, Antioquia. Image: APC-Colombia
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Diversification of Colombian cooperation throughout the world Innovation #3: Change of approach in the country’s offer of international cooperation The 2010-2014 National Development Plan: Prosperity for All States expresses Colombia’s wish to consolidate its offer of cooperation and position itself in global scenarios. Specifically, it included the topic of international policy, along with two objectives: 1) strengthen and diversify international cooperation, and 2) continue with the South-South Cooperation strategy and design cooperation strategies for Africa and the Asia Pacific region. Also, the 2014-2018 National Development Plan: Everyone for a new country set the goal of "promoting and ensuring national interests through foreign policy and international cooperation," building on the provisions of the previous National Plan. In this sense, through important actions of SouthSouth cooperation aligned with the country’s foreign policy, Colombia has successfully positioned itself on all continents, going from having cooperation activities in 17 countries in August 2010 to having cooperation projects in 92 countries by May 2018. At the same time, cooperation activities have aimed to contribute necessarily to the level of development of the countries that have received Colombian cooperation. Below are some examples of initiatives of Colombian cooperation for the world, which have helped to improve the country's image as one of the key stakeholders for development in the eyes of the international community.
a.
Cooperation with Asia for teaching Spanish as a foreign language The ELE FEALAC initiative began in 2012 with the visit of the Deputy Minister of Foreign Relations to some countries in Southeast Asia. During the mission, the authorities of the tourism sector in the region highlighted the increase in tourists from Spanish-speaking countries and asked the Colombian Government for its collaboration teaching its tour guides Spanish. Thus, in the year 2012, the Colombian Ministry of Foreign Affairs called on APC-Colombia, the Colombian Institute for Educational Loans and Technical Studies Abroad (ICETEX), the Caro y Cuervo Institute, and institutions of higher education with recognized programs in teaching Spanish as a foreign language to develop the initiative. The program has been running since 2013 thanks to the joint work of these entities and it consists of receiving 60 scholarship holders each year to learn Spanish in Colombia. Between 2013 and 2017, a total of 283 tour guides, tourism journalists and undergraduate and graduate students from East Asia have benefited from this initiative, thus opening pathways to trade and cultural exchange, and the growth of tourism from Asia to Colombia. The program also aims to contribute to the internationalization of Colombian educational entities and consolidate the country's offer in teaching Spanish.
DNP (2010). 2010-2014 National Development Plan: "Prosperity for All." Accessed on the DNP’s main portal on May 15, 2018: https:// bit.ly/1yc1ff8 9 DNP (2014). National Development Plan 2014-2018. "Everyone for a new country." Accessed on the DNP’s main portal on May 16, 2018: https://bit.ly/2os5HdC 8
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The success of the ELE FEALAC program, led to the emergence of the ELE ASIA program in 2017 in order to extend the benefits of the ELE FEALAC program to other countries in the region such as Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka, by providing scholarships to nationals from these countries. Also, in 2017, as a cross-cutting element of these two projects, the Colombian Government decided to include the component of teaching Spanish as a foreign language in East Asia through the ELE IN ASIA program, which complemented the classroom-based activities offered to undergraduate and graduate students and tour guides of these countries in Colombia. Since its inception in 2013 and until August 2018, the total number of beneficiaries in all the programs reached 383 scholarship holders from 52 countries.
b.
Consolidation of the Fund for International Cooperation and Assistance (FOCAI) The Fund for International Cooperation and Assistance (FOCAI), created in 1996, works as a special account of APC-Colombia -without any legal capacity-, which operates to support the non-reimbursable technical and financial cooperation actions and those of international assistance that Colombia carries out with other developing countries.
Between 2012 and 2018, the FOCAI had an accumulated COP 85 billion to position to Colombia through cooperation exchanges with other countries of the global South, complying with the objective of diversifying the offer of cooperation and taking Colombian know-how to 92 countries. FOCAI is the main instrument pertaining to the Colombian Government's foreign policy to carry out this task, and it presents Colombia as a benchmark in various regions of the world in areas of safety, entrepreneurship and food security, among other topics. The FOCAI also plays the role of supporting other countries in emergency situations or natural disasters. During the administration of President Juan Manuel Santos, Colombia has provided support and solidarity to 21 countries, including the following: 1) Central America and the Caribbean, for natural disasters; 2) Somalia, on issues of food crisis and drought, in a partnership with the World Food Program (WFP); 3) Lebanon, Jordan, Palestine and Turkey, on humanitarian crisis. Thanks to the effectiveness of this instrument, Colombia became the first country to contribute to the fund created by the UN to address the crisis in Africa caused by the Ebola virus.
The Fund's resources are intended to finance programs, projects and activities that Colombia carries out with other countries of a similar or lesser degree of development, in accordance with the priorities of the country’s foreign policy. Thus, the resource planning of this instrument is carried out jointly with the Ministry of Foreign Affairs.
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c.
Creation and implementation of regional strategies for SouthSouth Cooperation Another important achievement of the administration of President Juan Manuel Santos in the area of cooperation was the creation of regional strategies for South-South Cooperation to bundle the demands of various countries in order to optimize the resources of South-South cooperation and organize them under a single category. This is how six regional strategies for cooperation were implemented in a phased manner as described below.
iv)
Colombia's Cooperation Strategy with Africa (from 2013) aimed mainly at Egypt, Ghana, Kenya, Morocco, Mozambique and South Africa and focused on the areas of income generation, integral security, social protection and promotion, culture, education and sports and tourism.
v)
Regional Cooperation Program with Mesoamerica (since 2010) aimed at Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama and Dominican Republic in areas such as social promotion, public utility quality management, local governance, security and support for micro-enterprises and SMBs.
Colombia’s South-South Cooperation Strategy with Southeast Asia (since 2014), which has promoted and facilitated closer relations with countries such as Indonesia, Malaysia, the Philippines, Thailand and Vietnam, through cooperation in climate change and disaster risk management, social promotion, promotion of knowledge and innovation in the agricultural and tourism sectors.
ii)
vi)
i)
Cooperation Strategy with the Caribbean (since 2010), which benefited 25 countries of the Caribbean Basin (2010-2012) and 13 countries of the English-speaking Caribbean (since 2013) in four areas: technical job training, food and nutrition security, environment and disaster risk management and social development.
iii)
Cooperation Strategy for Integral Security (since 2012), aimed at Africa, Central America and Eurasia to share experiences and good practices of the Armed Forces, the National Police and partner entities on capacity building in the fight against transnational organized crime, drug trafficking and terrorism.
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South-South cooperation strategy with Eurasia (since 2015), which has facilitated dialogs with some of the countries in the region such as Azerbaijan, Georgia, Kazakhstan and Turkey, in the areas of promotion of productive development, mining and energy development, public management and governance, and culture and education.
Humanitarian Health Brigade, Jurubirรก, Chocรณ. Image: APC-Colombia
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Pacific Alliance volunteers, Bogotรก. Image: APC-Colombia
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More cooperation resources for Colombia Innovation #4: Design and implementation of a resource mobilization strategy for Colombia With the aim of mobilizing resources from international cooperation, APC-Colombia defined a strategy to increase the flow of international cooperation, invigorate it, and diversify it. This strategy is intended to channel and distribute the resources provided by cooperating countries in an orderly manner toward existing multi-donor instruments and bilateral mechanisms. Such a strategy recognized that peacebuilding in Colombia would require joint efforts in which the support of international cooperation played an important role. Therefore, using this strategy, the government intends to align, articulate and effectively leverage the cooperation flowing into the country to support the phases of prior and following the signing of the Peace Agreement and thereby, allow the cooperation to contribute efficiently to peacebuilding in Colombia. Finally, it was established that the technical, financial or in-kind resources that flow into the country should be used efficiently and leverage other resources, which would provide sustainability to the initiatives undertaken. At this stage of the country’s situation, the strategy was not limited to only a traditional view for the mobilization of resources. In general, when a country wants to attract more international cooperation resources, a board of donors is established to formalize the request. On the contrary, this strategy identified various instruments to achieve its objective and even sought alternative methods for the mobilization of resources, considering Colombia's context as a middle to high-income country that was also aspiring to accede to the OECD. The following instruments were identified for the effective mobilization of resources for the post-conflict situation:
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• Multi-donor funds. • Traditional bilateral sources of international cooperation operating in the country. • Roadshows and global platforms of support for the post-conflict. • Philanthropic commitment and support (unofficial sources). • Exchange of experiences within the framework of South-South Cooperation (SSC).
The initial results of this strategy have been positive. On December 31, 2017, the Government of President Juan Manuel Santos mobilized a total of USD 4.156 million in cooperation, a record inflow of resources on account of international cooperation to Colombia, making 2017 the year in the country’s history in which the most resources have been received with a mobilization of USD 664 million . The figure below illustrates the official aid for development received by Colombia since 1989 in US dollars.
360
700 600 500 400 300 200
COLOMBIA HAS CHANGED
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1991
0
1990
100 1989
ODA received by Colombia
Official id for Development eceived by Colombia 1989-201
Public-private cooperation Innovation #5: Design and implementation of a strategy to leverage resources from the private sector. The 2030 Agenda for Sustainable Development, which encompasses the Sustainable Development Goals (SDGs), is the result of a consultation process that, unlike the Agenda of the Millennium Development Goals, included not only the States, but also promoted the active participation of business and social sectors. This new agenda constitutes a global consensus, in which the SDG 17 proposes a solid basis for partnerships aimed at achieving the SDGs. At the same time, it provides a view in which articulated and synergetic work with governments and stakeholders from civil society and the business sector is even more relevant.
In this context, at the beginning of 2017, APCColombia created a strategy for articulation with the private sector in line with the 2030 Agenda and SDG 17 on partnerships to achieve the objectives. The purpose of the strategy is to articulate resources from the private sector -both national and international- with international cooperation in order for the projects underway in post-conflict territories to have additional resources that will allow their continuity. It was implemented in coordination with the private sector, government entities and regions surrounding projects on three strategic areas: peacebuilding, rural development and conservation, and environmental sustainability, in accordance with the Roadmap for International Cooperation established by APC-Colombia.
Howard Buffet visit, Planadas. Image: APC-Colombia
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Methodology proposed for the strategy of coordination with the private sector
Companies and Foundations
Financial and Technical Resources
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Donations
Entrepreneurial initiatives
APC-COL Coordi
Public Sector and International Cooperation
LOMBIA inates
Projects and programs
Knowledge and experience
Measurement of impact and documentation
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The added value of this strategy has made it possible to connect Colombian Government initiatives with the interests of entrepreneurs and private organizations, aiming at joint work in the country's most deprived areas. The strategy has:10 • Highlighted and positioned the actions carried out in the regions between the public and private sectors. • Helped to measure the private sector’s contribution to territorial development and progress in the fulfillment of the SDGs. • Supported the creation of shared agendas between civil society and the public and private sectors. • Supported the exchange of successful experiences at national and international levels. • Connected international cooperation projects underway in the territories with the strategies and private sector initiatives. • Generated high-quality decision-making.
information
A milestone of this cooperation strategy was the donation of USD 38.12 million from the Howard G. Buffett Foundation to strengthen the actions of the Humanitarian Demining Brigade of the Colombian Army. These resources are managed by APC-Colombia and will allow the Colombian Government to uphold its international commitments in order to have an anti-personnel landmine-free country by 2021. Today, the donation has made it possible to intervene in 160 municipalities affected to a high and medium extent by antipersonnel mines. This contribution is a major achievement for the country, as it ratifies the commitment of global private philanthropy to Colombia and the Colombian Government’s investment in achieving stable and lasting peace. It also marked the first time that a private international organization has donated resources directly to the Colombian State. Also, through this donation, the Howard G. Buffett Foundation became Colombia’s fourth main cooperator in 2017, together with Germany and Switzerland, following the United States, the European Union, and United Arab Emirates.
for
• Coordinated and leveraged projects from the public sector and international cooperation with private sector initiatives. • Identified and documented good practices from the private sector that contribute to the fulfillment of the 2030 Agenda. • Strengthened relationships with State entities at national, territorial and local levels, as well as with official and unofficial international cooperation entities.
10
APC-Colombia. (2017). Private Sector Strategy. Accessed on the APC’s main portal on May 15, 2018: https://bit.ly/2Jt8pH4
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Clayuca Project, South-South Cooperation, Cali. Image: APC-Colombia
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Taking cooperation into the regions Innovation #6: the use of different tools and types of cooperation to bring cooperation to the most deprived regions of the country In view of the country’s different territorial realities and the need to close development gaps, but also recognizing the enormous potential of the country's regions to carry out international cooperation projects and programs in areas of particular relevance to the country’s sustainable development, the Colombian Government has set out to boost international cooperation in all of the country's territories with the direct involvement of communities. In this sense, from January 2012 to date, it has benefited nearly four million Colombians throughout the national territory thanks to cooperation initiatives directly managed by APC-Colombia. This figure is equivalent to the sum of the beneficiaries of an institutional offer with a territorial vocation centered on short courses, Col-Col Cooperation, in-kind donations and matching funds.
a.
Short Courses The short courses are short duration training workshops (between 15 and 20 days) aimed at public officials, leaders of organizations, researchers and private sector representatives. They are taught in different countries that have managed to consolidate and be internationally recognized for their good practices and that are willing to share their knowledge to support development processes in other countries. Participants' expenses are borne in full or in part by the offering country. Between January 2015 and June 2018, a total of 1,078 short courses were offered, for which 3,102 individuals applied. The main objective of these courses was to build and strengthen the capacities of officials of entities, territories, and partner organizations. The departments with the highest
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number of participants are Cundinamarca, Antioquia, Boyacá, Atlántico and Caldas. Also, this institutional supply was taken to the most remote departments, such as Amazonas, Guajira, Vaupés and Vichada. Of the 3,102 applicants, 50% (1,550 individuals) were selected, and 62% of them were from regions that do not belong to the country's primary cities.
b.
Col-Col cooperation - Colombia cooperates with Colombia Col-Col cooperation is a category of cooperation that promotes intra-national territorial development in Colombia through the exchange of knowledge, practices and local learning, and their subsequent appropriation and adaptation in a number of the country's territorial contexts. This category, which was designed and implemented by APC-Colombia in 2016, is a management tool that serves the Agency’s purpose of innovating the types of cooperation to and from the territories, based on the exchange of knowledge, the replication of successful cooperation projects in other areas of the country and value creation. Col-Col cooperation promotes the strengthening of social capital capacities in the territories, integration and dialog on common problems and needs and possible solutions and answers. Socio-cultural affinities and shared challenges are used to maximize the results of the exchange. To date, there have been 28 Col-Col exchanges on issues of reconciliation, reparation for victims, community reintegration, prevention of child recruitment, strengthening of community
action boards, citizen oversight, participatory budgeting, territorial planning, local development, youth employment, alternative development, arts and crafts with an ethnic approach, community-based tourism, artisanal fisheries, tertiary roads and rural education. Over 1,160 local stakeholders representing peasant and productive organizations, community leaders, victims of the conflict, individuals in the process of reintegration, young people and local authorities took part in these exchanges, in a total of 136 municipalities in the country's 32 departments, most of them highly affected by the armed conflict. The main cooperating partners of the Col-Col exchanges include the United States Agency for International Development (USAID), through its Colombia Transforms program, and the Spanish Agency for International Development Cooperation (AECID). With regards to national partners, 23 Colombian Government entities were engaged after seeing an opportunity in the Col-Col exchanges to strengthen their presence and work in the regions.
their economic value, these contributions are of great value to the country because they support the work of all State entities in childhood, education, healthcare, nutrition, care for the victims of armed conflict and aid for victims. In order to achieve this goal, APC-Colombia leads the process of creating strategic alliances with public entities responsible for the import and customs formalities, facilitating the inflow of in-kind donations within the legal framework and through efficient management of the procedures required for the nationalization of these donations and tax exemption for the goods. It also coordinates arrangements between the benefiting actors or organizations with donors to promote the maximum benefit from each item that enters the country. As a result, Colombia has become a regional benchmark in the management of in-kind donations, so APC-Colombia is required to provide advice on how to make in-kind donations to the country to government entities at the central and territorial levels, and to international agencies operating in the country.
c.
In-kind donations APC-Colombia channels in-kind donations from national and international entities, public or private, intended to support productive projects, educational programs, social initiatives and to contribute to the strengthening of entities through the provision of equipment and technology. During the administration of President Juan Manuel Santos, vulnerable populations and ethnic minorities from Colombia's 32 departments have benefited from in-kind donations amounting to nearly COP 19 billion. These donations mostly consist of school kits, humanitarian aid, desalination plants, supplies for emergency response equipment, computers, solar panel accessories and equipment, and clothing and shoes. Based on more than just
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Total valuation of in-kind donations (data in million COP$)
Year 2013
2,475.1
2014
1,119.5
2015
467.1
2016
6,398.2
2017
7,716.3
2018*
770.9
TOTAL
18,947.2
For the period ending in May 2018 Source: APC-Colombia, 2018.
d.
Matching funds In order to generate greater synergies with cooperators and contribute to the country’s development, APC-Colombia has the authority to promote international cooperation projects with resources from the Nation’s General Budget. These matching funds have allowed the leverage of 179 international cooperation initiatives during the administration of President Juan Manuel Santos, for the benefit of 3.5 million Colombians in over 600 municipalities. The impact of these investments is, in part, due to the technical specialty acquired by the institution for the management of such resources, but
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mainly due to its ability to leverage COP 3.5 of international cooperation for every COP 1 invested by the entity. Through these matching fund projects, value has been added to cooperation initiatives underway in the country, managing to expand their impact on Colombian territory and contributing to the country’s development in accordance with the priorities defined by the Colombian Government.
Colombia’s accession to the OECD Innovation # : illingness to implement reforms, commitment, and full articulation of the entire government in order to accede the multilateral organization of good practices In January 2011, President Juan Manuel Santos advised the OECD of Colombia's interest in joining the multilateral organization, with the conviction that being part of this good practices club will be of great help in terms of Colombia's continued advance, its continued reduction of poverty, its attraction of even more investment to the country, its guarantee of a fairer, more inclusive, more sustainable development, and its conservation of the environment.
This was the start of an intense technical effort in which the OECD, through 10 committees, began a series of processes to assess the quality of public policies between 2011 and 2013. Following this assessment, the OECD Council formally invited Colombia to begin the accession process in May 2013 and, in September that same year, the country received the roadmap to be fulfilled. Then, in 2014, the multilateral agency indicated the process for working with the 23 sectorial committees that conducted the detailed assessment of Colombia’s progress in the implementation of the recommendations. These committees12 subsequently opened the approval processes, which lasted until May 2018 and where the last committee, that of trade, approved Colombia’s accession to the OECD.13 11
12
13
“
Being a member of the OECD will enable us to do things better, to show us what failed and what worked in other countries. In short, it allows us to improve our public policies. Juan Manuel Santos
“
After this announcement, the President designated the High Presidential Adviser for Governance and the Ambassador of Colombia to France to lead the effort. They created a team made up of the Ministers of Finance, Trade, Justice, Labor, ICT and Agriculture, among others, to boost the agenda within Colombia. 11
Colombian Ministry of Foreign Affairs (2013). ABCs of Colombia in the OECD. Accessed on the Colombian Ministry of Foreign Affairs’ main portal on June 12, 2018: https: bit.ly 2uD9Ugf Agriculture, Social and Welfare Issues, Biotechnology and Chemical Safety, Science and Technology, the Fight against Corruption, Competition, Trade, Development, Regional, Rural and Urban Development, Sustainable Development and Green Growth, Economy and Growth, Education, Employment, Business, Industry and Services, Energy, Tax, Governance and Public Administration, Corporate Governance, Fishing Industry, Investment, Environment, Financial Markets, Migration, Healthcare, Insurance and Pensions, Information and Communication Technology. Presidency of the Republic (2017). Colombia on the Path to the OECD. Accessed on the DNP’s presentation file portal on June 12, 2018: https: bit.ly 2O2qbn
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Colombia accession to the OECD, Paris. Image: Presidency of the Republic.
During the joint effort, which took place between the Colombian Government and 23 sectorial committees, Colombia sent its best technicians to Paris, where they identified work priorities, hand in hand with the OECD, on issues of taxes, employment, environment, science, technology, investment and competition, among others. At the same time, under the leadership of the President of the Republic, a process of interinstitutional articulation began, along with the exemplary willingness to undertake reforms in order to formally accede to the OECD by August 2018.
share and promote the best strategies for achieving the economic and social well-being of their inhabitants.
The OECD is an international organization of great prestige that brings together the countries with the best practices from around the world; the governments of countries as diverse as Germany, Australia, South Korea, Chile, the United States and France meet here to study,
The main advantages for Colombia resulting from its accession to the OECD14
14
Ibid.
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The OECD is also the highest-level think tank in the world. Its essential purpose is to promote good governance, meaning that Colombia’s accession is a fundamental achievement in the country’s modernization process, as it will allow for a better overall performance, by showing what has failed and what has worked in other countries. In short, it will lead to the improvement of public policies in Colombia.
• Seal of approval that requires the design and implementation of serious and transparent policies and builds investor confidence.
• It allows the Colombian Government to impose and require the highest social and environmental standards from domestic and foreign investors.
• It allows Colombia to influence the global agenda, making it a regional leader in Latin America and possibly in the world at a later stage.
• It encourages the Government of Colombia and stakeholders to assess themselves continuously and compare themselves with the best.
• It provides Colombia with access to a valuable source of statistical, economic and social data, in addition to participating in a privileged think tank with top-tier experts.
• Colombia will have loans at lower interest rates, since banks prefer and grant more favorable conditions to OECD member countries. It will also increase the number of international investors seeking business opportunities in Colombia because there are many who only invest in OECD countries.
• It provides the opportunity for government officials and technicians to learn from the experiences of other countries and to participate in the design of the new standards of public policies at the global level.
• As a multilateral meeting point, it allows all organization members to share their successful experiences.
The benefits represented by Colombia’s accession to the OECD became evident from the moment that the accession process began. The reforms implemented already represent a breakthrough for the country, affecting citizens' quality of life, the effectiveness of the government actions and the stability and confidence for investors and entrepreneurs.
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Set out below are the most important achievements and reforms that have been implemented by Colombia thanks to its accession to the OECD.15
In educational issues, a joint effort was made by South orea and Finland; the countries with the best education systems in the world. This brought Colombia increasingly closer to the goal of being the most educated country in Latin America in 2025. To do so, having elements of international comparison to measure progress is crucial, and based on this line, the implementation of the PISA test and the new measurement mechanisms, such as the ISCE and the SABER test are fundamental. In the field of labor rights, the Ministry of Labor was created to ensure compliance with labor standards and the defense of workers' rights. Its capacity of labor inspection and protection for trade unionists was strengthened. On the matter of the fight against corruption, the OECD has been very, very important. Many of Colombia’s achievements in this area are, to a great extent, due to the policies implemented in order to accede to the OECD. To mention a few, the anti-bribery statute, the publication of all public contracts, the tightening of the control of conflicts of interest and of Colombia Compra Eficiente (Efficient Procurement Program), have saved the nation a great deal of money. To fight tax evasion through tax havens, Colombia signed the Convention on Mutual Assistance on Tax Issues. Now, the National Tax and Customs Directorate (DIAN), in order to tighten the net on tax evasion, exchanges data with more than 117 countries, a number which previously only amounted to 4. Environmental protection and the reduction of the effects of climate change is one of the country’s many priority themes. The OECD devotes much effort to this matter and under this line, the Ministry of the Environment was created, protected areas increased threefold, and the carbon tax and the tax on the use of plastic bags were implemented. Today, Colombia is a regional and global leader in the implementation of the Sustainable Development Goals. In corporate governance, the main reform boosted by the country to strengthen the boards of directors of state-owned enterprises was the exclusion of ministers from their boards. The Financial Superintendence, the Superintendence of Companies and the Superintendence of Industry and Commerce were also endowed with greater independence and legal protection through the establishment of fixed four-term periods for their superintendents.16
15
16
Presidency of the Republic (2018). Address of President Juan Manuel Santos on the occasion of the Colombia’s accession to the OECD. Accessed on the President’s Addresses portal of the Presidency of the Republic on June 12, 2018: https: bit.ly 2Nm StB La Rep blica (2018). Ten changes boosted by the OECD in Colombia since the accession began. Accessed on the La Rep blica news portal on June 12, 2018: https: bit.ly 2IT9d W
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Image: APC-Colombia, ANSP, DPS
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