Colombia's Economy Essay example

1741 Words 7 Pages
What Are The Real Effects?
Introduction
Colombia’s Economy
General Context
Economic Sector
Economic Policies
Economic Facets
The Crisis
Economic Growth
United States - Colombia Free Trade Agreement
Negotiations
Implementation
Effects
Gross Domestic Product (GDP)
Colombian Farmers
Illegal Drugs
Lost of the Internal Market Share
Conclusion
Works Cited

I. Introduction
Colombia is one of the oldest democracies in Latin America with solid functioning institutions, progressive laws, an active civil society, and one of the most ecologically diverse countries in the world. Economically speaking, Colombia has had a surprisingly turnaround over the past decade due to the confidence and business opportunities that the investors have found in its
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From the pre-Colombian era in the XV century, where the economy was based on emerald and gold mining and agriculture to the XX and XXI century, where monetary and fiscal policies were marked by prudence, creating macroeconomic balances sufficient to sustain the economic growth (Avella, 1987). This historical process is what defines this country’s economy today. However, in order to understand the magnitude of the negative effects of the FTA in Colombia’s economy, one must first understand how this economy is divided, how it works, its laws, and how culture and traditions might play a huge role in the development of economic policies.
1. Economic Sectors
The economic activity in Colombia is divided into sectors. Its division is made according to the production processes that occur inside each sector. The primary or agricultural sector is the sector that gets the products of their activities directly from nature, without any transformation process. Agriculture, livestock, forestry, hunting and fishing are part of this sector. The secondary or industrial sector comprises all economic activities of a country related to the industrial processing of food and other types of property or goods, which are used as a basis for the manufacture of new products. It is divided into two sub-sectors: extractive industry (mining and oil) and industrial transformation (packaging of vegetables and fruits, soft drink bottling, manufacturing fertilizers, vehicles, cement,

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