Colombia’s economic growth linked to peace

It took four years of difficult negotiations between the Colombian government and The Revolutionary Armed Forces of Colombia (FARC) to strike a historic peace accord to end the 52-year-old conflict that claimed over 260,000 lives, displaced 6.8 million and left 45,000 missing. The pact will now stand the crucial public test when it goes for a referendum on October 2 —which incidentally is also the birth anniversary of a champion of peace:
Mahatma Gandhi.
The plebiscite is believed to tilt in favour of the agreement. And it rightly should. People must ratify the deal because it would also translate into economic stability for the country — which is in dire need of measures to check the growing financial strain. The deal will pave way for tax and agrarian reforms. These, in turn, will bolster revenue and raise the currency. Already, peso saw an uptrend after the peace agreement was announced last Thursday. Moody’s Investors Service senior analyst Samar Maziad has reportedly said that the accord will be positive for Colombia’s creditworthiness. It is structural tax reforms that can contain fiscal stress the country is reeling from due to the current oil price slump.
While the government takes concrete steps to boost the economy, it should also start talks with ELN — another Marxist guerrilla group — which has shown inclination to abandon arms. Precious time must not be wasted over nitty-gritty while dealing with ELN so that the benefits from the FARC deal don’t pale into insignificance. There are fears that if ELN is not checked, it may fill in the gaps that FARC fighters have left. This would make it difficult for the government to consolidate the gains achieved through the agreement with FARC. And only when total peace returns to Colombia can the country prosper.
The pact with FARC will open opportunities for investors to pump in money in violence and insurgency-affected areas that have long been languishing. Rural and remote regions that have paid the heaviest price for the strife need to be uplifted from poverty and underdevelopment. Oil companies can see a revival of sorts in an environment that is business-friendly. Agriculture — that got neglected due to the internal war — will also get a vital rejuvenation. While adopting steps to enhance agrarian growth, the government has to ensure that the illegal production of drug crops is stopped. And all channels for drug cartels plugged.
After he signed the pact with FARC, President Juan Manuel Santos in a national address said, “We don’t want any more of our youth to be cannon fodder in an absurd and painful war.” The peace deal underlines that an amnesty will be granted to FARC fighters with less serious offences. Such fighters have to be brought into the mainstream. Six months after disarmament, the FARC’s new party will be able to contest the 2018 elections. The democratic process has to be upheld through the political participation.
The road to the FARC peace deal was tough. But there are tougher challenges ahead for the government. Santos’ critics — mainly his predecessor Alvaro Uribe — feel he has given too much to FARC in the bargain. They are sceptical about the deal’s outcome. However, Santos truly wants Colombia to give peace a chance that can guarantee economic progress for its people. Can Colombians afford to miss this chance?