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USAID Information:
External Links:
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Colombia
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Democracy |
514-007 |
23,950 |
22,000 |
19,000 |
| Alternative Development |
514-008 |
60,844 |
70,694 |
83,257 |
| Internally Displaced Persons |
514-009 |
36,685 |
32,000 |
22,500 |
| Total (in thousands of dollars) |
121,479 |
124,694 |
124,757 |
|
The Development Challenge: Since taking office in August 2002, President Alvaro Uribe Velez has worked relentlessly to establish state control throughout the country, revitalize the Colombian economy and combat corruption. Although the Colombian economy grew at roughly 3.5% per quarter during 2003, this trend slowed slightly during 2004. The fiscal deficit has fallen from 3.7% of gross domestic product (GDP) in 2002 to a projected 2.5% of GDP in 2004; while private investment rose by approximately 20% in 2003. Largely as a result of improved investor confidence and the resulting spike in private investment and exports, GDP increased by 4.2% in 2003 and is projected to expand by an additional 3.5% in 2004. Unemployment fell to about 10% in late 2004; the lowest rate in the last three years.
In 2004, Colombia maintained its ranking in Transparency International's corruption index which reflects significant improvements since 2000. Between 2003 and 2004, the country's human rights record improved significantly as the national homicide rate fell by 12%, trade unionist murders were reduced by 37%, and kidnappings fell by 42%. Moreover, for the period from January 2004 through September 2004, the Human Rights Observatory reported an 80% reduction in the number of attacks on populations and a 41% decrease in the forced displacement of Colombian families. Furthermore, according to United Nations figures, the combined tactics of eradication, interdiction and alternative development resulted in a decrease in coca cultivation from 163,290 hectares of coca in 2000 to 86,340 hectares in 2003 -- a 47% reduction. USAID will provide technical assistance in support of the Government of Columbia's program to demobilization 20,000 paramilitary combatants by the end of FY 2005.
Despite these significant accomplishments, Colombia continues to face several challenges. Numerous rural municipalities are isolated by poor infrastructure and fragile institutions and thus, remain prone to violence, illicit crop cultivation, forced displacement and human rights abuses. Colombia faces severe income disparities, poverty, and inadequate social services. The World Bank estimates that 65% of the population lives below the poverty line. The poverty rate for rural dwellers in Colombia is estimated at 80%, of which 42% is considered extreme. Also, only 62% of rural dwellers have access to potable water and 32% to sewage treatment services. These conditions are exacerbated in rural areas by a 15% illiteracy rate. Improvement in Colombia's social sectors is especially challenging considering that the Uribe Government has tightened fiscal spending. Finally, while Colombia's illegal armed groups have been weakened, their presence and ability to exert violence against the state and civilians continues.
The USAID Program: The three ongoing objectives to be funded in FY 2005 and FY 2006 focus on promoting more responsive, participatory, and accountable democracy; stemming the flow of illegal drugs into the United States by encouraging small producers to join the legal economy through licit economic activities and infrastructure projects; and relieving the plight of displaced persons. During FY 2005, USAID will expand initiatives to bolster Colombia's trade capacity under the Andean Trade Promotion and Drug Eradication Act, and will support Colombian efforts to prepare for and take full advantage of the income, employment, and export opportunities associated with the impending Andean Free Trade Agreement with the United States.
The Colombia program's principal focus remains the promotion of alternative development, which coupled with U.S. Government-supported eradication and interdiction efforts, is designed to reduce the cultivation of illicit crops and stem the production and flow of illicit drugs to the United States. The program will strengthen and expand the presence of state institutions while simultaneously weakening the efforts of the three principal illegal armed groups (a total of approximately 40,000) whose ruthless pursuit of drug profits has a destabilizing effect upon the country. Increasing licit economic opportunities will provide strong incentives for producers to permanently abandon illicit crop production. USAID's democracy activities will promote a strong government presence to counter the negative effects that illicit activities have on transparency, accountability and the ability of local officials to practice good governance. By providing licit economic and social assistance to Colombia's internally displaced persons and other vulnerable groups (including child ex-combatants, youth at risk of recruitment by illegal armed groups, and host communities), people will be deterred from participating in illicit narcotics-related activities.
Other Program Elements: USAID assists the Government of Colombia in the management of a $45 million environmental fund created under the Enterprise for the Americas Initiative, which forgives foreign debt in exchange for environmental and child protection initiatives. A similar agreement for $10 million was signed under the Tropical Forest Conservation Act. In addition, programs in democracy, environment, and health are implemented in Colombia through the Latin America and the Caribbean Bureau and the Democracy, Conflict Prevention, and Humanitarian Assistance Bureau.
Other Donors: Multilateral assistance to Colombia from the World Bank, Inter-American Development Bank, the European Union, United Nations agencies, the Andean Development Corporation and others totaled $66.7 million in 2003. Other bilateral development assistance to Colombia reached roughly $107 million in 2003, with Germany, Spain, and the Netherlands being the most significant contributors.
USAID, representing the United States Government and as the major donor to Colombia, has actively participated in the "Group of 24" international donors committee. This committee comprises the 24 primary donor countries active in Colombia and meets on a regular basis to discuss and coordinate programs and policies. The committee also provides the forum for sharing lessons learned.
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