PRESENTED BY : EDGAR CHACON

DUSAN KALENATIC

 Is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and co-ordinate domestic and international policies of its members.

This countries were taking part of this process, this international economic organization has a main role of stimulate economic progress around the word and also trade between the different countries.

ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT(OECD)

Colombia is Latin America's fourth largest economy and its short-term growth prospects remain strong by OECD and Latin American standards. To ensure sustainable and inclusive growth over the medium-term, the Colombian authorities are faced with three key challenges: adjusting to the commodity boom, boosting productivity growth and reducing income inequality.

The OECD Economic Survey tries to show the situation of Colombia, and the possibility that Colombia has to be member of this group. This opportunity can push Colombia to a big progress of its economy, productivity and potential. Colombia has been considered one of the countries with the most high development index in South America with Brazil, Chile and Argentina. But despite of the development index, there are some problems that has to be studied deeply and Colombia has to boost to approved in the OECD group.

OECD ECONOMIC SURVEY: COLOMBIA ECONOMIC ASSESMENTS

The main aspect of this study is the analysis of the current Colombia’s situation toward the option to access to the OECD of integrates Colombia to this group. We will discuss the different aspects that Colombia must to improve, between them are infrastructure, transport, economic development and

the different obstacles to overcome.

BOOSTING PRODUCTIVITY

INTERNATIONAL TRADE

Colombia exhibits an infrastructure gap with respect to other emerging countries. In particular the QUALITY ( paved roads out of total roads ) and QUANTITY ( number of roads per km2) are low.

The rail and river transport represents the 15 and 4% respectively

CHILE AND MEXICO PERFORMING MEMBERS OF OECD

• In the case of Chile and Mexico, the OECD report upped this year’s expectations fuelled by strong domestic demand, but for 2014 was less enthusiastic since exports to rich countries are expected to drop.

• For the second year running Chile becomes the OECD member with the highest GDP expansion which this year will reach 5.2% compared to the 1.4% average. November’s estimate in 0.8 percentage points higher than last May’s forecast.

• The OECD report underlines the good performance of the Chilean economy based on the strong domestic demand as real salaries have increased as well as new jobs with an unemployment rate that has dropped from an average 7.1% in 2011 to 6.5% this year

• Mexico’s GDP is poised to increase 3.8% this year, the third highest behind Chile and Turkey, mainly because of the notorious increase of productivity in the manufacturing sector which has helped the country recover its overseas markets’ share.

• So close and dependent of the US economy and its slower activity next year, Mexico is forecasted to see growth limited to 3.3% in 2013, but will rebound to 3.6% in 2014 as the global economy recovers.

• Colombia's economic growth has been relatively stable but still needs to improve.

• The country has a significant productivity gap compare to the OECD countries, which reflects the low level of human, physical and total factor productivity.

• In addition, Colombia has been a labor productivity growth low and broad-based, mainly due to a overall decline in total factor productivity since the 1980s, related to insecurity and low investments.

• The commodity boom has recently driven activity and has affected other tradable sectors.

CONCLUSIONS AND RECOMENDATIONS

• Improving the security have been conducted in the last decade have stimulated investment and growth, which should also benefit from recent reforms.

• However, order to further reduce the productivity gap and generating higher sustainable growth, adopt reforms necessary to address the main constraints. The education system should improve with new government reforms and efficiently provide public funds and to focus on the technical skills and training.

• Investment in infrastructure transport should be improved priority setting and planning.. we need to increase access to credit by regulation more efficient, more competition and a more active participation of development banks

• Colombia must invest in human and physical capital has to Improve the education system, must create better training for graduates who constitute the majority of the labor force, it would allow the workforce to adjust to technological advances and respond to market requirements.

• Multimodal strategies should be a central part of the logistics and mobility policies, implying better coordination among different entities in charge of each mode of transport.

• Develop more efficient programs to the multimodal transport to boost connectivity of different transport modes

• Improving in transport infrastructure would increase productivity, as it would give businesses greater access to markets and enable them to exploit economies of scale.

• Reduce labor costs related that are extremely high by applying the envisaged tax reform and greater reduction in social security contributions and other mandatory payments related to work. 

• Ensure that revised distribution of royalties in the whole country results in viable projects.

THANK YOU