Colombia is on the top of the most violent countries in the world (9th place of 140 countries), moreover is on the top of countries with worst income distribution (9th place of 140 countries) and it is on the list of most corrupt countries (80 place of 140 countries) what sad this place to life, but there is a solution still, although this ranking is a heritage from our politic servants and society who does not realize that democracy is the way to get out of this bad place, hopeful next generation can understand why democracy is a treasure to look after, meanwhile this note points out some thoughts that can contribute to get a better place to live. First: more opportunities to young throughout globalization, it means better education and better infrastructure as place to work and to carry products through colombian highways; second: better education to young and public servants to understand why democratic place is big step to sort out different thoughts without violence; and third: better education to learn how invest public funds in social projects which let high productivity such as Belén do Pará to Buenaventura highway that connect Pacific Ocean to Atlantic Ocean.
Author: Humberto Bernal,
Economist
e-mail: zhumber@gmail.com
Colombia shows one of the lowest income per capita around world, according with government official records those regions in Colombia that enjoyed the highest income per capita in 2010 were Amazonas with US$10,268 per year, Antioquia with US$10,122 per year and Arauca with US$7,222 per year, Bogotá citizens got on average US$6,363 per year, nevertheless these averages have to be adjusted by concentration income index, Colombia shows one of highest indices also, by 2010 the GINI index reached 0.56 ( 1.00 is the highest income concentration, 0.56 can be taken too high if it is compared with other countries), therefore Colombia faces two big issues to be sorted in the next 10 years, first increase income per-capita and second reduce income concentration, to solve these issues colombian government is working through improve land distribution, the land concentration reaches a GINI of 0.86 (hectares vrs owners), however there is a long history of broadcast Laws that dealt to solve it without any success (since 1930 with international cooperation), Colombians hope that Mr Santos can do it this time.
There are other ways to improve level of income per-capita in Colombia also, figure 1 shows the correlation between No-oil GDP per-capita (No Oil Gross Domestic Product) and trade per-capita by region (trade as exports plus imports divided into population according region, no oil crude export counted), one can see that high level trade per-capita lets better No-oil GDP per-capita, this figure does not take into account crude oil income due to this oil income goes to high income people in Colombia or politics take it for their own benefits (there is a new Law that works to reduce this trouble but it is not enough due to population can not watch where royalties found income goes and the amount of Ecopetrol income goes abroad), therefore this oil income obscures this analysis. Trade per-capita in Colombia was between US$0.45 in 2010, this figure was reached by Guaviare region, nevertheless this region is where most of leaves of cocain are grown, this narcotic and marihuana income shared 0.4% of total GDP in Colombia in 2010, the highest value of trade was reached by Guajira with US$3,944 per-capita in 2010, this region produce high volume of coal, on this place there is one of the biggest mines around the world, Bogotá showed a trade per-capita of US$2,736 in 2010. To improve this trade income there are many options such as well negotiated Free Trade Agreements, nowadays Colombia is getting in touch to sort out this issue with South Korea, Turkey and Japan, the most important agreements is with the States which will be enforced by the end of 2014. The most important issue that Colombia must sort out to improve trade income is working on infrastructure, there is lot of projects on the way but there is one out of government radar, it is the highway that cross Brazil and Colombia to carry products from Atlantic Ocean to Pacific Ocean, it is called Belén do Pará (Brazil) to Buenaventura (Colombia) highway, this is an important project that will be great if it is finished by the end of this government period.
Figure 1. No oil- GDP Colombia by region 2010
(US$ current)
Source: Bureau of statistics Colombia (DANE) and Bureau of taxes (DIAN).
Other solution to this income concentration is through better education and more coverage, Colombia is one of most violent countries around the world, it took the seventh place in 2010 but her citizens can get out of this irrational behavior, colombians need better education as figure 2 shows, the education rate (100% if citizens who have to go school, they really go, lees that 100% there are young according region who do not go to elementary education and secondary education), if government both central and from regions improve education to these citizens, then violence rate can be lower and income distribution can improve, moreover if public servants take courses on politics to know how to solve disagreement thoughts and political differences, then Colombia would give a big step to belongs in this world.
Figure 2. Homicide rate and primary and secondary education rate by region 2010
(per 100,000 inhabitants and %)
Source: Defense department and Planing department (DNP).
The last point to deal and can give us a light on better income distribution is to decline poverty rate (100% all citizens are in poverty state, 0% nobody is in this state), figure 3 shows the relation between No-oil GDP per-capita and poverty rate, there is a slight negative relation that means if there is a low poverty rate, then income per-capita will face an increase, to decline this poverty rate, Colombians need more education for citizens and public servants, opportunities through Free Trade Agreements and well build infrastructure to reach no fake infrastructure through low cost materials and no public servants who take benefits which must go to society such as Bogotá corruption case on its last government term (Samuel Moreno and his brother and Nule brothers).
Figure 3. No-oil GDP per-capita and poverty rate by region 2010
(US$ current and %)
Source: Defense department and Planing department (DNP).
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