A representative of the Inter-American Development Bank (IADB) in Colombia has said that the size of the Colombian economy has doubled over the last twenty years, but still has a ways to go to become a developed country.
Rafael de la Cruz said that the country’s per capita income has risen from $ 5,000 20 years ago to $ 10,000 today, consolidating its middle class and strengthening its economy. But Cruz explains that Colombia is now faced with the challenge of overcoming the “middle income trap” which has plagued the progress of many developing countries. The phenomenon is characterized by a slowdown in growth and the rate of productivity growth following a country attaining initially promising statistics.
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In order to rise to become a developed country, he says that Colombia needs to transition into a knowledge-based economy with strong investment in human capital and innovation, along with the development of modern, efficient infrastructure and institutions.
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He said: “The challenge is to finance the necessary investments in these tasks while maintaining macroeconomic balance achieved in these years . The state’s role is crucial and depends on a capacity to have greater spending efficiency and higher levels of revenue.”
Cruz will be representing the IADB at a meeting with the President’s Office and the Privy Council on Competitiveness, to discuss the country’s progress in competitiveness over the past 20 years.
Sources
- ¿Colombia sí está en el camino? (Dinero.com)