Foreign direct investment Colombia

Topics: Colombia, Investment, Macroeconomics Pages: 6 (1931 words) Published: October 1, 2013

Foreign direct investment Colombia

In the last two decades the Colombian economy has experienced the rising tide of foreign investment, it is the country in Latin America that has more registered upturns in flows of foreign direct investment, because of neo-liberal policies adopted by the Colombian Government since 1990, applied rigorously by the Uribe Government, its further consolidation and deepening with the current Government of Santospolicies that have promoted the growth of financial institutions, since its inception following with a regime of privatizations and concentration of wealth, where 50% of the population is between misery and poverty, companies face a significant reduction of the participation in the domestic market who feel asphyxiated due to unequal competition with multinationals now operating in the countryravaging the producer and industrial apparatus of Colombia, but all of this is justified by a structural change in the economy and an expansive economic cycle that must take advantage to keeping the trust and investment flows to maintain the sustained growth of the Colombian economy.

In the wake of economic openness, Colombia remain a power in the richness of its soil for planting and agricultural production has decided to import foods such as wheat, this measure backed by a subscription part of the country as buyers of cereals and staple foods; in order to receive subsidized credits. From this national production capacity was diminishing, "Colombia was imported in 1989, 1' 700.000 tonnes to import 10' 000.000 tons of agricultural products last year" 1 (2011). ]

Another good example is Chile, the comparative advantage model used to finance the import of food products with exports of copper, clearly as Aurelio Suárez stated in an interview to a national news channel, this policy is not favorable "to be subject to the conditions of net import of foodstuffs, it loses the capacity self-sufficiency significantly affecting the nation's sovereignty" 2. Something that many analysts and experts have warned countries like Colombia that has notoriously lost its capacity to decide where the Nations that provide the largest volumes of foreign investment are that according to its policies ensure the interests of their corporations and transnational corporations, and fix it when and how decisions that correspond you by sovereignty to the Government.

A particular case which has shocked Europe and the world, so much that it has become to waver the dogmas of neo-liberalism is the case of the Celtic Tiger; Ireland, since being a decentralized market economy, parliamentary democracy, economy usually based on private property and agricultural products, Ireland became an industrialized economy and provider of services especially in software, no doubt the Celtic Tiger had a structural transformation, a spectacular economic growth and a drop unprecedented due to the global crisis of 2008. During the 1990s the Irish Government support measures to curb inflation and increase the productivity of the labour force, there was an economic growth based on investment of multinational companies in the area of manufacturing for the purpose of exportacion.3 taking into account that the Irish economy was sustained by the domestic industry, the bursting of bubbles .COM and the real estate bubble had a devastating impact on the Irish economy that ended with the fictitious sustained growth in foreign investment and in the magic of neoliberalism.

Obviously these as many other cases may demonstrate that the measures taken by the Colombian Government put in a situation of "check" to the Colombian economy severely affecting the industry and domestic production where the magnitude of involvement of foreign investment flows and the multinationals does not correspond to a mutual benefit and equal, but it captures the internal market depriving farmers of opportunitiesproducers by reducing benefits to the regions exploited by...
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