By mid 2009, Colombian President Alvaro Uribe had decades of virtual civil war ended and strengthened the economic climate, but he faced tough economic challenges. Although he had taken prominent market reforms, and inflation brought strong, Colombia seemed stuck in a middle ground, industrially behind Brazil and Chile, but most poorer countries of Latin America. Traditional export – coal, coffee, oil – still more than half of the total included, while manufactured exports is only f … Read more »

By mid 2009, Colombian President Alvaro Uribe had decades of virtual civil war ended and strengthened the economic climate, but he faced tough economic challenges. Although he had taken prominent market reforms, and inflation brought strong, Colombia seemed stuck in a middle ground, industrially behind Brazil and Chile, but most poorer countries of Latin America. Traditional export – coal, coffee, oil – still more than half of the total included, while manufactured exports only a fifth together. Public investment in transport and other infrastructure – an eternal obstacle to growth in mountainous Colombia – was too low. A great ambition Uribe or its possible like-minded successor was signed by the U.S. Congressional approval of a free trade agreement in 2006 to secure. But it would really help Colombia to diversify its economy? Colombia already had access to the U.S. market, but still a relatively closed economy compared with its neighbors such as Mexico or Chile.
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from
Aldo Musacchio
Richard H.K. Vietor,
Jonathan Schlefer,
Carolina Camacho
Source: Harvard Business School
23 pages.
Publication Date: Jan 21, 2010. Prod #: 710012-PDF-ENG
Colombia: Strong fundamentals, Global Risk HBR case solution

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