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COLOMBIA

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Colombia is located in Northern South America, bordering the Caribbean Sea, between Panama and Venezuela, and bordering the North Pacific Ocean, between Ecuador and Panama

Colombia was one of the three countries that emerged from the collapse of Gran Colombia in 1830 (the others are Ecuador and Venezuela). A four-decade long conflict between government forces and anti-government insurgent groups, principally the Revolutionary Armed Forces of Colombia (FARC) heavily funded by the drug trade, escalated during the 1990s. The insurgents lack the military or popular support necessary to overthrow the government and violence has been decreasing since about 2002, but insurgents continue attacks against civilians and large areas of the countryside are under guerrilla influence or are contested by security forces. More than 31,000 former paramilitaries had demobilized by the end of 2006 and the United Self Defense Forces of Colombia (AUC) as a formal organization had ceased to function. In the wake of the paramilitary demobilization, emerging criminal groups arose, whose members include some former paramilitaries. The Colombian Government has stepped up efforts to reassert government control throughout the country, and now has a presence in every one of its administrative departments. However, neighboring countries worry about the violence spilling over their borders.

degree of risk: high food or waterborne diseases: bacterial diarrhea, hepatitis A vector

illicit producer of coca, opium poppy, and cannabis; world's leading coca cultivator with 167,000 hectares in coca cultivation in 2007, a 6% increase over 2006, producing a potential of 535 metric tons of pure cocaine; the world's largest producer of coca derivatives; supplies cocaine to most of the US market and the great majority of other international drug markets; in 2007, aerial eradication dispensed herbicide to treat over 153,000 hectares with another 67,000 hectares manually eradicated, but aggressive replanting on the part of coca growers means Colombia remains a key producer; a significant portion of non-US narcotics proceeds are either laundered or invested in Colombia through the black market peso exchange; important supplier of heroin to the US market; opium poppy cultivation is estimated to have fallen 25% between 2006 and 2007 with a corresponding estimated 27% decline in the yield of pure heroin to 1.9 metric tons; (2007)

mestizo 58%, white 20%, mulatto 14%, black 4%, mixed black-Amerindian 3%, Amerindian 1%

tropical along coast and eastern plains; cooler in highlands

petroleum, natural gas, coal, iron ore, nickel, gold, copper, emeralds, hydropower

Colombia has experienced accelerating growth since 2002, with expansion above 6% per year in 2006 and 2007, chiefly due to advancements in domestic security and to President URIBE's promarket economic policies. Colombia's sustained growth has helped to reduce poverty by 20% and has cut unemployment by 25% since 2002. Additionally, investor friendly reforms to Colombia's oil sector and the US-Colombia FTA negotiations have attracted record levels of foreign investment. Inequality, underemployment,and narcotrafficking remain significant challenges, and Colombia's infrastructure requires significant updating in order to sustain expansion. Economic growth slipped in 2008 as a result of the global financial crisis and weakening demand for Colombia's exports. In response, URIBE's administration has cut capital controls, arranged for emergency credit lines from multilateral institutions, and publicly reassured investors that Colombia is a safe place to invest. The government has also encouraged exporters to diversify their customer base away from the United States and Venezuela, Colombia's largest trading partners. Nevertheless, the business sector continues to be concerned about the impact of a global recession on Colombia's exports, as well as the approval of the FTA, which is stalled in the US Congress.