The Colombian General did not save enough money during the years of
economic growth to have the budget for public spending that can speed
up a recovery from the economic crisis, the country’s Comptroller
General said Friday.
Despite having enjoyed seven consecutive years of a sustained growth at
an unprecedented
rate, the government does have enough public savings now that the
economy finds itself in recession, Comptroller General Julio Cesar
Turbay said.
Turbay compared Colombian economy policies with the policies of Chile
or Mexico where
public savings increased when they had high growth rates.
According to the Comptroller General, the state has to be efficacious and effective when it adopts countercyclical policies.
Countercyclical
policies work against the cyclical tendency of the economy. They cool
down the economy when it is booming. They stimulate the economy when it
slows down.
An improvement of economic policies is required when it comes to planning and
implementing public spending and direct and indirect costs, otherwise
the countercyclical policies will end up being an illusion, Turbay said.
Making sure the country has the fiscal
space for new projects when fundamental projects have been pending for
too long is vital for the successful implementation of countercyclical
policies and to narrow the gap between quantity and quality in
infrastructure.
Other elements necessary for a quick economic recovery are strong local financial markets and economic
conditions that appeal to foreign and private investors.