Balance of Power: Colombia. Topic A: Improving Colombian Quality of Life. Chair: Ho Hyun Sun. Moderator: Brian Lee. Vice Chair: Robert Bourret

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1 Balance of Power: Colombia Topic A: Improving Colombian Quality of Life Chair: Ho Hyun Sun Moderator: Brian Lee Vice Chair: Robert Bourret Crisis Staffer: Pooja Saxena April 10 13, 2014 Sun 1

2 Improving Colombian Quality of Life Introduction Colombia has been experiencing satisfactory economic growth over the past decade and continues to rapidly expand its economy. While Colombia has been taking advantage of its natural resources and South American economic prominence, the average worker within the nation has not reaped the rewards of economic growth. Colombia has one of South America s highest unemployment rates, its infrastructure lags behind the rest of the region and over a quarter of its population lives below the poverty line. Growth over the past decade resulted primarily from oil profits, which has caused income inequality in the country to be one of the highest in the world and led to issues with civil order. Colombia s education system has made modest improvements but still requires a great deal of aid to provide the country with the educated citizens it needs to attain long term economic growth. Although Colombia has massive economic potential, it needs to focus on developing a strong middle class and lifting large numbers of its citizens out of destitution. Colombian citizens expect progress in areas like education, wages, and job opportunities. As cabinet members of Colombia, it is vital that you focus on reducing income inequality and providing ways for Colombian citizens to escape the cycle of poverty. Sun 2

3 Background and Current Situation Colombia has rapidly been shifting away from an agriculturally based economy and this has caused extreme tension with its farming population. Poverty is heavily concentrated in rural communities (over 60 percent of the rural population is impoverished) as a result of multiple factors. Security concerns over the past 50 years have caused millions of Colombian farmers to have to move to avoid issues with rebel groups. Millions of Colombians are also internally displaced, which was mentioned at the beginning of the background. The Global Humanitarian Assistance Organization reported in 2013 that Colombia has the highest recorded number of internally displaced persons (IDPs) in the world, with 3.9 million people 8.5% of the population displaced since 1996, and between 150,000 and 200,000 continuing to be displaced each year (Stirk 1). An overwhelming proportion- around 83 percent- of these people live in extreme poverty. Ongoing conflict has been the primary cause of displacement, mostly attributable to violence, whether due to FARC or labor disputes. These problems must be solved in order to aid millions of Colombians throughout the country. The Colombian government up to this point has attempted to take a variety of actions, yet few have resulted in meaningful change. Just under three years ago, the Colombian Government enacted the Victims and Land Restitution Law, which provides economic assistance to those affected by the civil conflicts and returns land to displaced farmers. However, the law has only affected around 200,000 of these displaced citizens. Much more effort is required on the behalf of politicians to properly ensure that they have a chance to escape poverty. Millions of poor rural citizens have also flocked to the cities for security, but lack any potential job opportunities due to inadequate education. This has further expanded poverty in Colombia while also heightening income inequality. The Rural Poverty Fund also explains: The importance of agriculture as a source of income has dwindled over the Sun 3

4 last 50 years in Colombia. Poor rural people are no longer typically small-scale farmers who struggle to increase their crop productivity. Instead, most rural households are involved in microenterprises. But whether they farm or pursue other activities, rural women and men are held back by limited access to productive assets including land, irrigation and financial services and to social services, education, technical assistance and skills training. Lack of infrastructure prevents them from engaging with competitive markets (IFAD 1). This lack of access to assets and services prevents millions of Colombians from escaping poverty, which has caused much of the violence in the country, as those in poverty find it impossible to see change occurring without taking up arms. The rural poor feel particularly excluded from typical Colombian life and lack any form of opportunity, serving as a potential source for future violence. The New York Times reported that in May 2013, The agreement announced [between FARC and the Colombian government] calls for the government to distribute land to small farmers and undertake development projects that would improve education and infrastructure, among other measures (Neuman 1). The Colombian government now must decide the best course of action and how to best achieve these goals while keeping in mind long-term poverty and income inequality reduction are of paramount importance. These issues have motivated dissent within the rural population of Colombia and continues to be a cause for violence in the country. In August, Tens of thousands of farmers took part in a nationwide strike that has pitched the country s agricultural sector, from coffee growers to dairy producers, against the government of President Juan Manuel Santos, over promised subsidies to help offset rising costs in transportation, fuel and public services (Emblin). These strikes have only worsened, as issues like food and gasoline shortages and inspire more discontent toward the Colombian government. There were 283 work protests in Sun 4

5 various forms through August, on track to surpass the record of 290 set last year, according to Medellin-based research institute Escuela Nacional Sindical (Willis 1). Santos has also signed multiple Free Trade Agreements (FTAs) that have caused greater competition for goods, hurting farmer s and industry s profits. This influx of cheap, foreign-made goods, has affected the productivity of the country s manufacturing sector, and growth forecasts for the industrial sector were slashed in recent months. A strong peso has forced out of the market many locally-made goods and continues to impact farmers negatively (Emblin). Miners and teachers have also taken part in strikes to fight for better pay, health and work security, and the opportunity for education. For example, teachers in the capital city of Bogota have recently marched due to delayed payment of their salaries. Additionally, miners throughout the country have caused nearly two-month delays in production, leading to more power shortages throughout the country and decreasing the appeal of foreign investment in natural resource sector. Many of these issues stem primarily from the issue of fair pay, meaning the Colombian government must find a way to please workers and increase productive stability. Another major issue lies within the trade-union community in Colombia. Anti-union violence by paramilitary groups threatens the growth of unions, which prevents workers from making progress in wage equality and fair labor practices. The International Labor Rights Forum explains, Colombia is the most dangerous country in the world to be a union activist. According to the Solidarity Center of the AFL-CIO, roughly 4,000 Colombian trade unionists have been murdered in the past 20 years, more than 2,000 of them since Workers are also intimidated through the use of death threats, attacks, disappearances, black lists, arrests, and dismissals for organizing and widespread contract labor arrangements, which limit collective bargaining rights. Only 1.2% of workers in Colombia are covered by a collective bargaining agreement and the rate Sun 5

6 has been declining over the years as workers see the danger in organizing. Without ways for Colombian workers to organize safely, the economic inequity within the country will continue to exist. The only way workers are able to voice their grievances with their employers has been through mass strikes, which tend to achieve very little and often result in greater violence. The FTA the United States signed with Colombia largely went into effect last year and does have clauses aimed at protecting union leaders. As cabinet members, it is your duty to ensure the safety of Colombian workers through pro-security policies so they can hope to achieve economic progress. Colombia also stands in stark contrast with its neighbors when it comes to education. Colombia prohibits for-profit educational institutions, which means it is solely the government s responsibility to educate the population. Santos attempted to allow for-profit universities by bringing about changes to Ley 30, the law responsible for the restriction. His reforms were vehemently opposed and caused them to be put on hold. Determining if for-profit education could benefit Colombian society is currently a major issue in the Colombian government. The government has also made gains in accessibility as UNESCO describes, in 1985, just 65.5% of eligible students were enrolled in primary school. Today, that figure is closer to 90%. Nevertheless, these gains have been tempered by continued struggles to reach students in rural areas. Moreover, the quality of education remains unevenly distributed, particularly in nonurban areas and resource-poor jurisdictions (Carvalho 1). Gains in quality, however, are hard to measure, and these gains are still leaving a large portion of the rural population at risk because of safety concerns and poverty. As technology advances and companies demand highly educated workers, Colombia is in danger of falling drastically behind. Colombia only has 32 universities that can take around 600,000 students, with an estimated 3.5 million being unable to attend Sun 6

7 college simply because the country has no room for them. In addition, A University of Los Andes report found that fifty percent of the funds designated for public universities were going to only three of the schools (Carvalho 2). As inequality with funding also increases, public universities are hard pressed to educate a new generation of workers that will require degrees to transform Colombia s economy. Reforming Colombia s education system will be necessary in order to ensure gains in Colombian quality of life. Another vital area that must be addressed when debating quality of life is the healthcare system. Colombia has a primarily public healthcare system, enacted in 1991 and known as Law 100. However, as Professor Luján of Pontificia Universidad Javeriana in Bogotá explains The central problems [of the Colombian health care system] are corruption, the failure of the government to adequately fulfill its regulatory function, and the inherent ideological conflicts embedded in the system" (Lujan 1, 4). The system, he says, "offers financial incentives to extract money, but no incentives to actually provide quality health outcomes." The issue stems from a lack of quality control, since the insurers and providers cannot be held accountable by any minimum standards or results. The Health Ministry was ordered in 2007 to come up with standards for health care providers, yet they have still not produced them. There is evidence that health insurers have overpaid their executives, overcharged for drugs, and refused to reimburse members for their health care procedures. The system s corruption is so deep that institutions like the World Bank believe the system needs extreme regulatory overhaul and some internal medical think tanks are calling for an entirely new healthcare system. Either way, the system needs to be changed in order for millions of Colombians to have access to reliable health coverage. Another issue relating to the healthcare system is lack of physicians and nurses. There are only 1.5 physicians and 6.2 nurses per 10,000 in the country compared to 20 doctors and 72 Sun 7

8 nurses per 10,000 in the rest of the region. It is essential that the government incentivize medical professions to ensure citizens do not experience massive waits or are denied access because of an overburdened system. Income inequality, education, healthcare and employment are all vital issues affecting the Colombian people. As delegates, it is your responsibility to agree upon measures that will sustain long-term economic growth and increase Colombian quality of life. Bloc Positions The cabinet will agree that Colombia needs to improve these quality of life indicators: education, health care, protecting labor unions, and wage equality. The end goal will be primarily to reduce poverty and reduce income inequality. Debate will consist of what type of policies the government should pursue and how they should be enacted to achieve a more equal Colombia. Some ministers may take a more liberal approach with a large amount of government involvement while others view the private sector as the solution to Colombia s problems. The cabinet has to keep in mind the current state of affairs with regard to Colombia s population when debating the various issues outlined above. Current government policies are not popular, especially when regarding labor and education. The public reaction to what the cabinet decides must be taken into account to avoid further conflicts or uprisings in the country. To ensure longterm improvements are made to Colombian quality of life, cabinet members must find a common ground when deciding the course of action to take in each area. Conservative members may advocate for more for-profit educational institutions, less business regulation to spur growth, or involvement of religious institutions in fighting poverty. On the other hand, liberals may support greater government involvement in the economic sector through more wage regulation, Sun 8

9 increasing the number of government run colleges, or reforming the healthcare system while still keeping it publicly run. Questions to Consider 1. What has the Colombian government done in the past with regard to these issues? How have they affected poverty and income inequality and what has the public reaction been? 2. Would appeasing labor unions and raising wages stagnate growth and anger paramilitary groups? 3. How can Colombia effectively target the rural populace that is in dire need of assistance with regard to poverty? 4. How can Colombia deal with income inequality in a way that ensures long-term economic growth? 5. What policies can the government enact to incentivize people to join the medical field? 6. Would allowing greater private, for-profit education in the country increase educational outcomes while also allowing lower income students the same access? What could the government do with private education to ensure equal educational opportunities? Recommended Sources ntentmdk: ~iscurl:y~menupk:435735~pagepk:148956~pipk:216618~thes itepk:430367,00.html Sun 9

10 3. (OECD analysis) 4. %20Tertiary%20Education%20in%20Colombia% pdf Bibliography Carvalho, Andre. "Education in Colombia: Is There a Role for the Private Sector?" Wharton School. University of Pennsylvania, 02 Jan Web. 07 Jan < Emblin, Richard. "Strike: Santos' Big Challenge - The City Paper BogotÃ." The City Paper Bogota. N.p., 26 Aug Web. 07 Jan < IFAD. "Rural Poverty Portal." Rural Poverty Portal. IFAD, n.d. Web. 05 Jan < "International Labor Rights Forum." Colombia. ILRF, n.d. Web. 07 Jan < Lujan, Francisco. "Colombia: A Healthcare System in Crisis." Siemens, Nov Web. 7 Jan < Sun 10

11 2-13_1_cc_essay-columbia_release pdf>. Neuman, William. "Deal Reached to Reduce Inequality in Colombia." New York Times. New York Times, 26 May Web. 7 Jan < Stirk, Chloe. "Resources for Humanitarian Response and Poverty Reducation." Global Humanitarian Assistance, Apr Web. 7 Jan < Willis, Andrew. "Strikes Surge as Killings of Colombian Union Leaders Fall." Bloomberg.com. Bloomberg, 25 Oct Web. 07 Jan < Sun 11