Sunday, July 3, 2016

End of FARC insurgency will boost Colombia GDP by 1%


Colombia President Juan Manuel Santos said Thursday that the national economy could grow an extra percentage point per year if the country’s 52-year-old armed conflict comes to an end.

Santos has been negotiating peace with the FARC and the ELN, two guerrilla groups that have fought the state since 1964.

While talks with the ELN have yet to be formalized, the much larger FARC has already agreed to a bilateral ceasefire and its demobilization and disarmament.

“The ceasefire agreement frees up a potential that has been repressed by war. This will allow the private sector to reach the markets and areas they never were able to reach,” Santos said at a summit of the Pacific Alliance regional trade block.

Obviously an end to an armed conflict in the country will be a net positive as less resources will have to be devoted to fighting the insurgents. In addition investors will be more apt to invest in a country where their investments are not being blown up by Marxists revolutionaries. 

These are the types of changes at the margin that I look for when I am looking for opportunity. 

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