If Colombia wants to reduce the social gaps, improve the quality of life of its citizens and become a country that generates permanent wealth, which can be irrigated towards the most needy and vulnerable sectors, not only It must ensure that there is joint and coordinated work between the State and the business sector: This union must take place under a scenario of consensus and a frank dialogue that allows the efficient participation of all.
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This is part of the formula that María Claudia Lacouture, president of the Colombian-American Chamber of Commerce (AmCham Colombia) and Alianzas, Associations and Trade Unions of Colombia (Aliadas), used to prevent these social gaps from continuing to widen in the country, even more so. given the panorama of deceleration and current economic mistrust.
In an interview with EL TIEMPO, The directive said that education, employment and innovation are three fundamental tools for economic and social development, but there are five factors that today play against that purpose: the little generation of wealth, the high growth of its population, the armed conflicts, some weak state institutions and the corruption and neglect that have bled the state dry.
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About 11 out of every 100 households in the capital can hardly meet their basic needs.
Carlos Durán / EFE
What leads to a very poor distribution of wealth in the country?
The problem of the distribution of wealth in Colombia does not have a simple explanation and a multiplicity of factors must be understood. The first is that the country has not achieved the growth and development rates necessary to create the necessary levels of wealth. The figures for the evolution of the total gross domestic product (GDP) and per capita GDP are evidence. The second is that Colombia had a very high population growth rate. The combination of the first two factors explains part of the phenomenon: for many years the number of inhabitants among whom wealth had to be distributed increased significantly, which did not grow at the same rate (or higher, as is desirable). The inevitable result is widespread impoverishment.
What other factors go into that game?
Of course, a third factor is added to this, which are armed conflicts that impact security and the absence of the State. The fourth factor is that we have weak state institutions that have failed to create robust infrastructure. And the last is the corruption and laziness that have bled the State dry, which threatens the creation of wealth.
Are we far behind in terms of poverty reduction?
In the last two decades in Colombia there has been a notable reduction in extreme poverty. For example, multidimensional rural poverty was 87 percent in 1997 and in 2020 it was 40 percent. This indicates that, although there is greater access to services, there is still a long way to go in terms of equity and inclusion. Closing social gaps, reducing levels of insecurity and improving the quality of life for all.
What should be the role of the State and private companies for a change to take place on this front?
They are different roles, but complementary. The private sector cannot grow without the necessary conditions of security, infrastructure and support that only the State can provide for the proper development of the economy; and the State cannot play its role without a robust and thriving private sector. Joint and coordinated work is urgently needed. The priority of the State is the management of social spending, the articulation for the provision of social services and guaranteeing the rights of citizens. In turn, the productive sector must offer tools that help solve problems, promote quality jobs, improve competitiveness and contribute to social investment and environmental conservation, in the fall of cultural values and integrating into their community environment.
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Private, local and foreign investment is key for the economy to grow in a sustained manner, but businessmen still ask for clear and stable rules of the game for this. This is certainly key, but is it enough?
Clear rules of the game are an important prerequisite for encouraging investment by entrepreneurs. But he’s not the only one. We cannot forget that 80 percent of the country’s growth is due to household consumption, and this grows when there is more employment, credit and remittances. It is essential to generate trust and certainty so that jobs can be created and maintained, facilitate access to consumption and unleash virtuous circles of investment. Both for private, local and foreign investment, it is essential that there be social investment, such as education and public goods such as social, technological, financial, physical and environmental infrastructure. It is of little use to invest if the State and local and regional governments do not contact the business community, academia and the community to jointly project a development plan with ambitious challenges, achievable goals and serious commitments.
With a slowing economy, as the main indices corroborate every day, will it be easy for companies to generate wealth and for this, in turn, to spread it to the most vulnerable and needy sectors?
During a slowdown in the economy it is more difficult to generate wealth, but we have to work to reverse this scenario. It is not an easy task if one takes into account that 2023 is a challenging year for the economy and particularly for the business fabric; not only because of the national context but also the international one. To achieve this, a public and private effort is needed, not to stop seeking consensus and to maintain a frank dialogue –in a real and not merely formal way– to allow the efficient participation of all. Companies are committed to generating opportunities and well-being for Colombians. It has been shown that if there is more business and investment, there is more quality employment. Work is the formula for less poverty.
Can the business sector generate social welfare without generating monetary wealth?
The role of the business sector goes beyond the generation of monetary wealth, because its task is to solve problems and create opportunities that promote the well-being and quality of life of Colombians. Being the great generator of income for the State through taxes, it contributes to closing social gaps.
The contribution of the companies is not limited to employment or the payment of taxes, because it promotes the promotion of a culture of inclusion. In addition, it offers training and education programs for its employees; works to close the gender gap by offering equal opportunities for men and women in terms of hiring, promotion and salary; and closing the digital labor gap to provide access to technology and connectivity.
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The family compensation funds are a clear example of the commitment of the Colombian business community with the well-being of its workers. But, of course, if the companies do not have sufficient income, it will not be possible for them to contribute with the necessary efficiency in the social programs.
What role does business competitiveness play in reducing those social gaps that make Colombia look like the country with the worst redistribution of wealth?
Business competitiveness plays a fundamental role in reducing social gaps to the extent that, if companies do not have viable conditions, it will be difficult for them to consolidate in the market and compete against other countries. This can also generate an increase in unemployment and informality rates that deepen the social gaps. The Colombian business fabric has shown that its role, not only in economic stability but also in social development, is fundamental.
Education also plays a fundamental role in all this machinery. What are those gaps on this front that do not allow companies to advance, especially in terms of competitiveness?
Education is definitely one of the essential variables to close social gaps and provide access to opportunities to improve their quality of life. Colombia has made progress in access to education, but if the question is whether it meets the needs of the market and new industries, the answer is no. We have to work for a relevant education, taking into account the advances in technology and the economic challenges that countries face today. In Colombia, a more technical education is a priority, which synchronizes business demand with human talent, since this is one of the great shortcomings that the labor market has today.
Aware of this panorama, together with our affiliated companies, at AmCham Colombia we created the Empleo Hay program, developed with resources from the Howard G. Buffett Foundation and the support of APC Colombia, which precisely trains young people in the skills required by the business fabric and facilitates their access to formal employment. Thanks to this initiative, we have achieved that 6,429 young people have indefinite formal employment in more than 750 companies and we have 21,000 young people in the process of training relevant to the needs of the more than 12,000 vacancies that are still valid.
Crises are always present in all economies and at any time, but how much do they prevent progress in a country like Colombia, is it possible to stop talking so much about them and rather move on?
Beyond ignoring crises, it is about facing them, and Colombia has overcome multiple crises in recent decades thanks to its macroeconomic strength and business dynamism. However, we must be aware that, if a favorable environment for trade and investment is not fostered or the viability of companies is weakened, it will become increasingly difficult to face these crises and the possibilities of growth for the country will be substantially reduced. country.
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In your opinion, what are these three fundamental factors for the country to generate greater wealth and social welfare over time?
Education, employment and innovation are three fundamental tools for economic and social development. With an education relevant to the needs of companies, a greater generation of formal employment and a better technological development, we have a great opportunity to close the social gaps and the economic growth of the country. To achieve this, we must maintain a growth rate that allows the generation of employment as a mechanism to lift Colombians out of poverty.
According to a study carried out by the Fedesarrollo economic studies center, in the period from 2002 to 2017, 72 percent of the reduction in poverty is explained by increases in employment and labor returns to education; while only 9 percent is explained by monetary transfers. Today, 84 percent of formal employment is generated by the business fabric.
