OECD Investment Policy Reviews: Colombia 2012
This Investment Policy Review examines Colombia's achievements in developing an open and transparent investment regime and its efforts to reduce restrictions on international investment. The Review shows that, in the past few years, Colombia has made tremendous progress in promoting investment liberalisation and improving its investment policy framework. Colombia has also recently undertaken important policy reforms in many of the areas covered by the Guidelines for Multinational Enterprises, including human rights, labour issues and bribery.
In recognition of its progress in pursuing policy reforms to promote investment liberalisation and improving the business climate, Colombia became the 43rd country to adhere to the OECD Declaration on International Investment and Multinational Enterprises. As an adherent to the Declaration, Colombia commits to providing national treatment to foreign investors and to promoting responsible business conduct, in line with the Guidelines for Multinational Enterprises. In turn, the country benefits from similar assurances from other adherents to treat Colombian investors fairly.
The Role of Foreign Direct Investment in Colombia's Economic Development
Colombia’s efforts towards political stabilisation and sound macroeconomic policy have enabled the country to boost its economic development and enhance its investment climate. As a result, foreign direct investment (FDI) inflows have increased rapidly, also benefiting from the commodity price boom. After a temporary decline in 2009-10 due to the world economic crisis, Colombia’s FDI inflows are expected to reach a record level in 2011. The surge in Colombia’s FDI outflows reflects a more general trend shared with other Latin American countries, which have become an important source of FDI abroad, notably within the region.Privatisation, which is open without any limitations to foreign investors, has led to a significant increase in the weight of the private sector, which today accounts for 85% of GDP. According to the National Development Plan for 2010-14, FDI annual inflows are forecast to exceed USD 13 billion in 2014. However, rather than simply increasing the amount of FDI, the government’s objective is to enhance the qualitative role of FDI in the country’s development, notably its contribution to job creation and infrastructure improvement.