Introduction

Within the World Bank’s classification, Colombia is at present considered as an upper-middle-income economy. The country’s growth performance for almost 50 years, its sound macroeconomic management, and its democratic tradition, are some factors that have been recognized by leading international economic institutions. Other recent positive developments that have been praised are, among others, its accelerating economic growth between 2002 and 2007—mainly due to advancements in domestic security, to rising commodity prices, and to the current administration’s pro-market economic policies. Moreover, investor friendly reforms to the hydrocarbon sector and the US-Colombia Trade Promotion Agreement (CTPA) negotiations have attracted record levels of foreign investment during the last years. Taking into account that at the end of the 1990s this nation stood on the brink of a social and economic collapse, the above mentioned accomplishments appear particularly impressive. As stated by the World Bank (2010a), while other Latin American and Caribbean nations have been fighting against inequality, poverty or violence, Colombia has been facing all three at the same time.