US$300-million approved for Colombian government programs

With an operation for US$300 million, the Andean Development Corporation (CAF) today approved the partial financing of the support program for reform of the state, competitiveness, and social investment, which the Colombian government is executing in the country.

CAF Executive President Enrique García said that the financial operation followed the objectives of the Uribe administration’s National Development Plan, which were to provide democratic security, recover economic growth, improve distribution of the gains from growth, and increase the efficiency and transparency of the State.

García recalled that in October 2002 in a joint declaration with the Colombian government, the CAF made a commitment to grant the country financing of US$3.50 billion for the 2002-2006 period.

The executing agency for the long-term financing approved today is the Ministry of Finance and Public Credit. The funds are to be used for three priority fields of action: reform of the state, promotion of competitiveness, and social investment.

As part of the structural reform of the state, actions will be taken to improve efficiency in all areas of the public administration and in the use of resources, redirecting public spending into social investment and the provision of goods and services that are fundamental for sustainable human development.

The promotion component of competitiveness is formed by strategic projects in the transport and foreign trade sectors, especially in the areas of infrastructure, technological development, and business associativity.

The social investment objectives of the program are linked to support for an important package of projects in strategic sectors (rural development, potable water, basic sanitation, social infrastructure and others) which contribute to poverty reduction, increased employment and sustainable growth.

García said that the program’s objectives were in line with the proposal formulated by the Corporation for the definition of a new regional development agenda aimed at stimulating sustainable growth and integrating the economic, social, environmental and institutional variables into a competitive, transparent and equitable regional setting.