IV. POLITICAL ENVIRONMENT NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES Since the election of President Cesar Gaviria in 1990, the foreign Policy of the Government of Colombia has focussed on enhancing Colombia's image as a responsible global and regional player. In pursuing this overall strategy, Colombia has concentrated its limited resources in three major areas: regional integration and security, economic growth, and counternarcotics. In developing pragmatic means to further these interests, the Government of Colombia has pursued a foreign policy which in many key areas parallels that of the United States. To promote regional integration and security, the Government of Colombia has taken an active part in regional and international organizations such as the Rio Group, the Ibero-American Summit, the APEC, Caribbean Common Market (CARICOM), the Organization of American States (OAS) and the United Nations (UN) and its specialized agencies, and developed close bilateral relation with its neighbors, the European Community and the United States. In international organizations, Colombia has taken an active role in seeking to limit the illegal transfer of arms and stop international narcotics trafficking. During 1993, Colombia was President of the economic grouping of non-aligned countries in the U.N. called the Group of 77 (G-77). Its voting record in the U.N. is poor from the U.S. perspective, voting with us less than 20 percent of the time. Regionally, Colombia joined Mexico and Venezuela (G-3) to encourage investment in Central America and the Caribbean and to seek political solutions to civil strife in El Salvador, Nicaragua and Guatemala. Colombia rejects the internationalization of civil conflicts, and opposes military solutions to regional political problems. In elections held in late March, President Gaviria was elected Secretary-General of the Organization of American States. In June, Colombia hosted the fourth Ibero-American Summit in Cartagena. In the area of trade, Colombia's foreign policy has created lasting effects for Colombian citizens. As part of his foreign policy goals, President Gaviria accelerated the reversal of Colombia's import substitution policy and radically reduced tariffs and other trade barriers. The success of this initiative in promoting economic growth and creating jobs in many sectors, has placed Colombia among the countries likely to be considered for eventual membership by the U.S. in the newly established North American Free Trade Association (NAFTA). Conscious of its poor international image as a narcotics producing country and a human rights violator, Colombia has implemented sweeping reforms in the judiciary, police and military designed to improve the situation. Seeking more effective international counternarcotics cooperation, Colombia has forged close bilateral relations with the United States, the United Kingdom, France, Holland and the Dublin Group. The destruction of the Medellin narcotrafficking cartel and the death of its infamous leader Pablo Escobar in December 1993 is perhaps the most notable recent achievement in the fight against powerful narcotics organizations. MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE The all-encompassing issue of narcotics will continue to affect nearly all aspects of Colombia's political and economic environment. But the abandonment of fingerpointing characteristic of Colombian political life five years ago in favor of dialogue among political opponents has facilitated the GOC's ability to disrupt the traffickers. It has also led to greater cooperation between the GOC and its neighbors and Europe in destroying narcotraffickers grip on the country. In addition to narcotraffickers, the high crime rate in all large cities in Colombia affects adversely the business climate. President Gaviria has implemented some controversial short-term measures as well as long-racing reforms in the judiciary, the police and penal law which he believes necessary to allow the economic and social progress he envisions. The new government of Ernesto Samper, inaugurated on August 7, 1994, is expect to continue these policies. BRIEF SYNOPSIS OF POLITICAL SYSTEM Notwithstanding Colombia's commitment to democratic institutions, its history has been characterized by violence. This situation has been exacerbated by the government's lack of control of vast areas of the country leaving them to guerrilla bands and narco traffickers. Colombia has experienced fundamental changes in the last four years under President Gaviria especially in the economic area with structural reforms being initiated in the financial, labor, exchange, trade, social security and tax sectors. The 1991 constitution, also adopted during the Gaviria administration, was intended to have far reaching effects. It alters and will hopefully strengthen the judicial system, creating an Office of the Prosecutor General (Fiscal) and the basis for a more aggressive prosecutorial system of criminal justice. The new constitution also grants the right of "tutela", providing citizens with a legal resource to protect their constitutional rights. The constitution legalizes participation of guerrilla factions as formal political parties with the prospect of non-elected seats in Congress and opens the way for decentralization of state authority by elections of regional officials. However, problems in implementing these multifaceted constitutional reforms have led to some confusion in the government, as legislators, the executive, and the courts struggle to interpret them. Traditional political parties remain the backbone of Colombian democracy. Despite a strong voter participation drive, the March congressional elections were marked by a disappointing 70 percent abstention rate. The results of the election strengthened the apparent demise of the ex-guerrilla Democratic Alliance AD/M-19 which suffered a resounding defeat at the polls while the Liberal Party maintained its majority in Congress. The presidential election was held on May 29, 1994. The leading candidate must win by a fifty percent plus one vote or submit to a runoff election. The run off election was held on June 19, 1994 and Ernesto Samper of the Liberal party was elected as the next President of Colombia Narcotrafficking continues to have a significant impact on the political situation despite the demise of the Medellin Cartel and the death of Pablo Escobar in December 1993. The Government faces a strengthened Cali Cartel which is considerably more entrenched and subtle in its tactics than was Medellin. While Senator Kerry's characterization of Colombia as a nation in danger of becoming a narco-democracy, brought protests from many quarters in Colombia, it is widely recognized that narco money and intimidation continue to result in alarmingly high levels of official corruption. Narcotrafficker strength was exemplified last October when they "lobbied" Colombia's congress, through intimidation and other means, to ensure passage of a revised penal code favorable to their interests. The new president who will be inaugurated in August and his government will be confronted with the same fundamental task of building institutions that will enable it to expand the economy and address social problems while also pursuing the struggle against narcotraffickers and guerrillas bent on undermining those institutions for their own ends.