Colombia : The Economic Foundation of Peace

The book intends to trigger, and support
policy debate in Colombia. The first part distills four
thematic chapters, responsive to the country's current
realities, as well as to the five decades of development
partnership with the Bank, spanning the entire development
spectrum. First, violence, sustainable peace, and
development introduces the reader to the source of violence
- armed, and social conflicts, and drug trade prevalent in
the country - to form a framework of understanding on the
economic, and social costs for building peace, and enable
sustainable growth. Second, such growth is examined within
the macroeconomic, and fiscal framework, to ensure a healthy
financial system, and create a business environment to
foster private sector development. Third, such eventual
success, drives us through Colombia's traditional
socioeconomic progress, though through its recent setbacks
as well - economic recession, increased macroeconomic
instability, and judicial uncertainty - all eroding
potential welfare gains. Fourth, and ultimately, the demand
for governance and quality of government reveals the
coexisting problems faced by strong and weak governance, and
explores a strengthened governance based on selectivity and
gradualism in building high quality government. To support
this analysis, the second part, provides sector-specific
realities, including its fiscal framework, public debt
management, financial sector and pension reform. The
development agenda calls for a government to reach a higher
growth plateau, allowing a chance for sharing in that
growth, and making the state an icon of quality.