Colombia

Oxford Economic Country Briefings, Sep 25, 2008

* This has delayed the start of peace talks with leaders of FARC, whose active members are believed to number at least 17,000 and which is also believed to have become heavily involved in the drug trade. Despite the release of 15 high-profile hostages, including former presidential candidate Ingrid Betancourt and three US contractors, FARC continues to hold around 45 prisoners in pursuit of a wider release plan for jailed guerrillas and drug traffickers. Levels of public violence remain high and FARC continues to accuse the government of failing to address the poverty and inequality that was its original motivation. Past governments were suspected of sponsoring the right-wing counter-insurgency actions and the present government has been criticised for failing to prevent reprisals against the human rights groups who exposed their activity. It has also been accused of exaggerating the continued threat from FARC, or allowing the armed forces to do so, but Uribe's popularity has been helped by the harder line that he has adopted towards the guerrilla movement.

* After limiting its financial assistance to previous governments because it judged their drug enforcement and antiterrorism efforts inadequate, the US has stepped up aid since 2000 under its Plan Colombia, under which cumulative commitments now total some US$4bn. This finances tougher action against drug growers and traffickers and promises additional funds conditional on progress against illegal crops, the rebel movements having been financed from these, and corruption within a public bureaucracy and police force that is suspected of having been widely co-opted by the drug trade. In return for the Plan and an associated free-trade agreement, Colombia has agreed to various liberalisations requested by the US. The free-trade deal seemed to be assured in August 2006 when Colombia removed import restrictions on US beef, but aspects of the deal were put at risk given the shift in power in the US Congress, something that was made apparent when the US finalised the FTA with Peru. It is now unlikely that the accord can be finalised until there is a new administration in the US.