Netherlands and Colombia have been dealt many issues since XIX century. For instance, there were many economic transaction between Colombia, Netherlands Antilles, Curacao and Netherlands where Colombia exported raw products and Netherlands exported finished products. Dutch people in Colombia have business in trade firms, manufacture firms, and they work in education as professors and volunteers to eradicate Colombia violence. Moreover, this relation is narrow through political advices to finish the internal political war, fact that we really thanks. However, although the number of Dutch that live in Colombia have increased in the last years, the big economic business have declined. In addition, although Colombia has gotten a positive trade balance, the 90% of exported goods are non-renewable resources. There are issues that Colombian government has to work on in the next years; for instance, take an active actions to avoid the outflow of Dutch FDI (in 2012 there was an outflow of US$ 1.9 billions, what’s going on?!!!); second, to give incentives to diversify colombian exports (not just minerals). Nonetheless, the GDP cycle has been Contra-Cycle in the last 8 years, it means good news for Dutch investors in Colombia; they can invest in Colombia and sent their profits to Netherlands to improve their activities in headquarters. Finally, it is right to remember that in Cuba there is a girl called Tanja from Netherlands that is part of guerrilla group to achieve the Peace in Colombia. This note briefs the Dutch status in Colombia during XIX, XX and XXI century.
Author: Humberto Bernal,
Economist,
e-mail: zhumber@gmail.com
Twitter: Humberto_Bernal
Netherlands has invested human and economical sources to improve Colombia development through XIX, XX and XXI centuries. Dutch people started to immigrate to Colombia after second half of XIX century. They trade with Colombians tobacco, indigo, spirits, textiles and so; it was a mutual benefit; fact that helped to get an important trade was the closeness of Colombia with Netherlands Antilles and Curacao. By 1843, the number of Dutch people recorded in Census of 1843 were 93, most of them lived in Barranquilla and cities located close to Atlantic Costs such as Cartagena, Santa Marta, Maicao, Sincelejo and Rioacha. However, they showed a decline to achieve 89 in 1851 as figure 1 shows; it was because of hot weather in Caribbean Costs and deep culture differences at the beginning, so they decided to come back to Netherlands. By 1951, the Dutch population in Colombia increased due to WWI and WWII that pushed people to find better life conditions. Some of Dutch people who decided to take Colombia as a home were Jan Gerbrand Slagter and Aukje Mobach who had 8 decedents (sons and daughters); others with surname De Hart, Van Houten, Slagther and Esbra as Odette (2012) says. After 1951, Dutch decided to emigrate from Colombia because of internal political conflict started to take high level of violence; by 2000, the number of Dutch were 287 in Colombia. Nonetheless, by 2011 the number of Dutch increased to 836 because of better economic environment compared with european, and better political environment because of meetings in Havana between Government and Guerrilla. These foreigners have contributed to improve education, trade, health and voluntary work in Colombia.
Figure 1. Dutch population in Colombia 1843-2011
(number of people)
Source: Censos, World Bank, Colombia migration department.
Dutch enjoy living in Colombia. Nowadays, according to census information, Dutch enjoy living in Bogotá with 47% of total Dutch who live in Colombia; there are others who like living in Cali with 10%, Manizales with 10% and Santa Marta with 10%; there are other municipalities with low Dutch such as Puerto Colombia with 3% and El Playón with 3% as figure 2 shows. One realized that they are located in main cities, and it is because of security issues; this cities do not face high violence as rural areas, but nowadays rural security is improving; therefore, they can travel around Colombia. Dutch in Colombia are young; those who are between 0 and 19 are 36% of total Dutch in Colombia; most of them have Colombian nationality also, so most of them born in Colombia; 57% are between 20 and 60 years; and 7% are elderly people. Dutch women are about 50% of total Dutch in Colombia. Most of Dutch are single; they are 47% of total Dutch in Colombia; there are 43% that are married, and the others are separate and widower. Most of them have high education such as university studies; there are few that just have primary studies; most of them are young. Dutch come to Colombia to give employ; from 100%, there are 37% that work as employers, and 13% work as employees. They work in Real Estate (13% of total Dutch in Colombia), Trade (10%), Services (teaching and voluntary jobs, 3%), Agriculture (3%) and Truism and Food (3%). Unfortunately, there are 13 Dutch that are in troubles with Colombia Law in 2013. Moreover, since 1975, there have been 16 kidnappings of Dutch in Colombia where 2 cases were in 2011 and null in 2012. This information come from colombian census, INPEC and government organisations.
Figure 2. Dutch population in Colombia by municipality 2005-2011
(% of Dutch people in Colombia)
Source: Censos and Colombia migration department.
Big business between Netherlands and Colombia
Foreign Dutch capital in Colombia showed and important volume until 2006, but after this year it has shown an important decline. Foreign Direct Investment (FDI) from Netherlands into Colombia started to come since the end of XIX century through trading companies, but the bulk started to come since 1953 as figure 3 shows. The first Dutch big firms that came to Colombia were IMS Netherlands Holding B.V and Koninklijke Vopak N.V. Nowadays, Dutch FDI goes to Trade sector with 58 firms in 2012; these firms have Dutch capital of type Mixed, Fusion and Acquisition or Greenfield. Some of them are Makro and Diaego (United Kingdom and some Netherlands capital). In manufacture sector there are approximately 47 big firms with Dutch capital such as Provimi, Parmalat, Tetra Pak, Friesland, Unilever and Coltabaco (mixed capital). In Real State there are 13 firms; some of them are in hydroelectric sector and firms that give services in architecture. In financial sector are important firms such ING and Sudameris Bank. However, ING sold an important share to colombian firm called Protección in 2012; Shell have been sold colombian branches also. It means that Dutch capital have been going out since 2006. It is important to highlight that Dutch capital as stock in Colombia achieved US$2.5 billion at 2012 prices in 2006 as figure 3 shows, but after this year it started to decline to reach US$2.0 billion in 2011 and US$60 millions in 2012!!!; this huge decline in 2012 in about US$1.9 billion is because of most of European firms are fitting their portfolios due to 2008 international meltdown; for instance, Carrefour (from France and few Dutch capital), ING, Shell and Micheline (Icollantas Colombia) and so; these firms have taken their capital out from Colombia since 2006. Moreover, in 2006 there were 307 Dutch big firms in Colombia, but in 2012 this number declined to 163.
Figure 3. Dutch FDI as Stock 1953-2012
(US$ million of chained 2012)
Source: De Lombarde. 1997. La Inversión Extranjera en Colombia; Central Bank Colombia.
International trade between Netherlands and Colombia
Netherlands and Colombia have traded since XIX century, but it has been declined as a share of total Colombia trade since 1968. Colombia has exported raw goods to Netherlands since XIX century; for instance tobacco, indigo, gold, silver, crude oil, coal, iron, steel, fruits, flowers and coffee; nowadays, these products are the main ones still. On the other hand, Netherlands has been exported to Colombia finished products such as technology, pharmaceutical products, fertilizers, ships’ parts, medical technology and so. Although the trade balance has been in favor of Colombia since 1954, the trade index shows a decline as figure 4 shows. Nonetheless, this index (exports plus imports between Netherlands and Colombia divided in total Colombia trade) increased since 2001, but most of goods exported are minerals. Therefore, although FDI from Netherlands showed a huge decline, the trade has increased in the last 8 years; it makes an economic compensation, but the products exported by Colombia are 80% crude oil, coal and ferronickel; 10% iron and steel. It means high dependence of non-renewable resources.
Figure 4. Trade index Netherlands-Colombia 1951-2012
(%, trade indicator*)
Source: United Nations.
Economic cycle between Netherlands and Colombia
The Gross Domestic Product cycle between Netherlands and Colombia is Pro-Cyclical with a correlation coefficient of 0.3; it means that these two economies show similar cycles as figure 5 shows. However, this cycle is changing after 2008 crisis, so while colombian cycle goes upward, the Dutch goes downward or the other way around. This fact can be an advantage for Dutch investors to keep their long run capital in Colombia while Dutch economy change her tendency. They can make profits in Colombia and send them to Netherlands to improve their headquarters dynamic. It is expected that Dutch GDP cycle change her tendency through 2014, and reach a positive economic growth.
Figure 5. Netherlands and Colombia GDP cycle
1977 - 2013
(quarterly data normalised)
Source: FED ST. Louis and Bureau of Statistics Colombia (DANE). Own calculations Stata 12.1.
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