Economy of Columbia

An analysis of the prevalent economic conditions of Columbia gives you an idea of the different phases of industrialization that took place at different times. The economy of Columbia has achieved great heights in the recent few decades in spite of many political crises and turmoil which at times acted as hindrance to the positive growth of the country. In the pre-historic times, the then Columbian economy was entirely based on the mining of gold and agricultural production. Though agricultural productivity remains the main source of income for people living in the rural areas, efforts are made for development of private entrepreneurship in these areas in order to increase economic self sufficiency among all. The current per capita income of Columbia is $ 2,656 and has a GDP growth rate of 6.8% as per the census of 2006. Columbia has four major industrial divisions--Bogota, Medellin, Cali and Barranquilla.

Agriculture and Natural Resources of Columbia---

Production of various agricultural products coupled together with economic reforms has established the Columbian economy as one of the fastest growing economy of South America. Columbia follows a laissez-faire economy with major industrial collaborations with U.S.A. Statistics indicate that only 2% of the land in Columbia is cultivable. Hence, stress is more on the multi crop farming in those areas where there's suitable climate and favorable topographical conditions. Major agricultural products include--- cocoa, sugarcane, coconuts, bananas, pineapples, wheat, barley, potatoes, maize and poultry products. Due to liberalized economy initiated towards the last quarter of 20th century, it led to higher industrial growth at the rate of 5% per year. Major earnings however came from the export of natural resources like oil, petroleum, gold and silver. The rich deposits of gasoline were also an added advantage in this regard. The major turning point came in the mid-90 when efforts were made to generate hydro-electric power which has bore great fruits subsequently.

Trade and Business of Columbia---

Under the able leadership of César Gaviria Trujillo various liberalized economic policies were initiated by the government. These measures of reform led to rapid phase of industrialization and saw an increase in per capita income of the people. However, this quick substantial rise suffered a great setback with the recession of 'Great Depression' in 1999 which rocked the country and widely affected the fiscal growth of Columbia. Towards the earlier part of 21st century, the country was on its way to economic recovery and the ascension still continues today. Major industries of Columbia include-- textiles, food processing, petroleum, beverages and chemicals. Business and trade collaborations with neighboring countries and other countries like Australia, China,South- Africa, Russia and parts of Asia and Europe has also significantly increased its earnings followed by direct foreign investment from U.S.A, Japan and Venezuela.

Thus, economy of Columbia has seen a positive growth and continues to play dominating role in the development of Latin American countries.

To know more about the economy of Columbia, flip through 123independenceday.com