COLOMBIA: AN EXPATRIATE’S PARADISE FOUND

COLOMBIA: AN EXPATRIATE’S PARADISE FOUND

2 OF 7COLOMBIA: AN EXPATRIATE’S PARADISE FOUND

CONTENTS

I. Introduction 3II. Colombia’s Dark Past 3 III. U.S.-Colombia Free Trade Agreement 4IV. Challenges in Entering the Market in Colombia 4V. Safety Concerns 5VI. Top Reasons to Accept an Assignment to Colombia 6VII. Conclusion 6


I. INTRODUCTION

There are many regions around the world that deserve their poor reputation, but Colombia is no longer one of them. In fact, it may now be the expatriate world’s best-kept secret.

Although the country has been long associated with labor relations violations, narco-terrorist ac-tivity, and other issues of personal safety, much has changed in recent years. This constitutional republic in the northwestern corner of South America, with a population of about 46 million, was recently named the world’s happiest country. According to a 2012 poll by the WIN/Gallup Interna-tional Association, which surveyed people in 54 nations, Columbia scored highest on the “Global Barometer of Hope and Happiness” and its people were almost twice as happy as the global aver-age1.

This may lead one to question whether the country still warrants a U.S. State Department travel advisory and hazard pay allowance. Or why companies still find it hard to recruit employees for Colombian assignments.

In fact, those in the know would say that the main risk of sending employees to Colombia now is that they won’t want to leave. Colombia has become a flexible and welcoming country, eager to do business with foreign investors.

In this paper, we will explore the factors associated with doing business in Colombia (including the impact of its history and recent trade agreements), the challenges of entering the Colombian mar-ket, and the key advantages of living and working here.

II. COLOMBIA’S DARK PAST

A brief look at Colombia’s past reveals a violent struggle between its government and an extrem-ist left-wing group called the FARC. Over the past several decades, the FARC (Fuerzas Armadas Revolucionarias de Colombia) has played a role in making Colombia both an unwelcome place for capital investment and an unsafe place for its inhabitants. This group has funded itself through kidnapping, illegal drug trafficking, and outside forces friendly to its Marxist-Leninist dogma2.

Today, although the FARC movement is still alive, it has been minimized by the concerted efforts of Presidents Álvaro Uribe Vélez and Juan Manuel Santos. Their measures have included targeted attacks that have eliminated key FARC members. Organizations and companies that have invested in Colombia and helped to improve living conditions have also weakened the FARC’s influence. This, perhaps, is another reason Colombia is ranked as the world’s happiest country, as it now has much

1 “Colombia is the Happiest Country in the World.” 07 jan 2013: WIN-Gallup International Association Global Barometer of Hope and Happiness, December 30, 2012. Web. Accessed 21 April 2013. <http://www.wingia.com/en/news/colombia_is_the_happiest_country_in_the_world/46/>.

2 “Colombian Conflict (1964-present). Wikipedia. Web. Accessed 23 April 2013. http://en.wikipedia.org/wiki/Colombian_civil_war_(1964%E2%80%93present)


hope for the future when compared with many other nations.

The FARC still exists, however, and continues to replenish its ranks with kidnapped boys and dis-enfranchised men. As it is active in the Colombian jungles, it is important for foreign nationals to avoid these areas.

III. U.S.-COLOMBIA FREE TRADE AGREEMENT

In 2006, during the second Bush administration, the U.S.-Columbia free trade agreement was signed. However, it wasn’t ratified until 2011, under President Obama, and did not go into effect until May 15, 2012.

Compared with other trade agreements, such as NAFTA in 1994, this FTA generated considerably less noise. But despite the quiet, there was strong resistance against it. Human rights organiza-tions pointed to problems of civil unrest, as well as a long history of labor and human rights viola-tions in Colombia.

The rationale for the FTA signing, finally, was that such agreements would do more to strengthen Colombians in legitimate power. Additionally, the United States had already made huge invest-ments in Colombia by funding military operations to defeat FARC and other negative influences. It was also being pressured by nations already trading with Colombia and reaping rewards.

Now that the U.S.-Colombia FTA is in full effect, it has proven to be a winning bet. The influx of U.S. and other foreign money has done more to defeat Colombia’s negative forces than withholding trade.

IV. CHALLENGES IN ENTERING THE MARKET IN COLOMBIA

Today, Colombia has 10 FTAs that have opened its market to 47 countries3. Also, real estate inter-ests are fearlessly entering the Colombian market, as the time is ripe and there’s much to lose by not doing so4. Yet the following realities must be noted when doing business here.

Brand Loyalty: Though friendly to foreigners, Colombians are fiercely loyal to local brands. Un-like many other countries, Colombia has not embraced well-known U.S. brands like Coca-Cola and McDonalds. They are proud of their own culture and want to keep it intact.

Language Barrier: To enable its assignees to fully experience Colombia, companies should en-courage and pay for Spanish lessons. For anyone learning Spanish, there is no place better than

3 “Top Reasons to Invest in Colombia.” Invest in Colombia. Web. Accessed 20 April 2013. http://www.investincolombia.com.co/why-colombia.html

4 Trump and EU investing real estate in Colombia http://www.nytimes.com/2013/03/24/realestate/americans-invest-in-south-american-real-estate.html?adxnnl=1&ref=colombia&adxnnlx=1365787394-B9OzlYTh21mAJmPCZVgjhQ


Colombia, as its Spanish dialect is considered is the clearest of all to Westerners5.

Visa Issues: Due to the events of 9/11, the following economic crisis, and the political climate toward immigration at the time, there was no special non-immigrant visa provision (like the TN) included in Colombia’s free trade agreement with the United States.

Cultural Bias: In good times, it seems as though the U.S. has a “more the merrier” attitude. But when the economy sours, so, too, do attitudes towards visitors. Foreign nationals (particularly from Latin America) are perceived as taking jobs away from Americans and there is often a cultural bias against Hispanics in the United States. To avoid being at a disadvantage when on assignment in Latin America, this bias must be overcome.

V. SAFETY CONCERNS

Location fear is another issue to consider when entering the Colombian market, and getting an em-ployee to accept an assignment here will most likely require coaching and education. Although the current administration in Colombia has done much to improve country conditions, the global view has not caught up with the reality.

Also, there is enough of a perceived risk that the U.S. State Department still recommends a ten percent hardship allowance6, putting Colombia in the same category as Serbia, Cuba, and even Qatar. There is also the following travel advisory7:

“The Department of State warns U.S. citizens of the dangers of travel to Colombia. While security in Colombia has improved significantly in recent years, violence by narco-terrorist groups continues to affect some rural areas as well as large cities. The potential for violence by terrorists and other criminal elements continues to exist in all parts of the country.”

But this is not as prevalent as it once was and much has changed. For example, at Colombia’s many world-renowned festivals, there are now tourists, whereas 10 years ago, there were virtu-ally none. That said, the Colombian jungles may always be unsafe, along with many other parts of the world. So regardless of location, desirable or not, all assignees should be taught how to protect their personal safety.

5 Moreno, Carolina. “21 Reasons Colombia Is The Happiest Country In The World.” The Huffington Post, 17 Jan 2013. Web. 21 Apr 2013. <http://www.huffingtonpost.com/2013/01/17/reasons-colombia-happiest-country_n_2490813.html

6 “Post (Hardship) Differential (DSSR 500) Percentage of Basic Compensation.” US State Department, 21 Apr 2013. Web. 21 Apr 2013. <http://aoprals.state.gov/Web920/hardship.asp>.

7 “Travel Warning U.S. Department of State.” Colombia, November 10, 2010. US State Department, 21 apri 2013. Web. 21 Apr 2013. <http://www.travel.state.gov/travel/cis_pa_tw/tw/tw_941.html>.


VI. TOP REASONS TO ACCEPT AN ASSIGNMENT TO COLOMBIA

There are clearly many advantages to being on assignment in Colombia. These include the follow-ing:

> Happiness is Contagious: Due to measures taken by the previous and current administration, the Colombian standard of living and quality of life has improved by leaps and bounds over the past ten years. As noted, this has resulted in a population of happy and satisfied people, more than twice as happy as the global average.

> Free Time: Colombia has more public holidays (18) and, on average, more paid days off (15) than anywhere in the world. Many Colombians like to take advantage of this by taking long weekends (a.k.a., Puentes Festivos) to be with friends and family.

> Eco-Biodiversity: During your ample free-time here, there will be plenty to see. Colombia is home to more than 1,821 species of birds, 623 species of amphibians, 467 species of mam-mals, 518 species of reptiles, 3,200 species of fish, and a mind-blowing 51,220 species of plants.

> Coffee: There will be no problem staying awake when you are working … did we mention that Colombia boasts the richest, most aromatic coffee in the world? Well, you can believe it; it’s true!

VII. CONCLUSION

Despite its reputation as a dangerous and unstable location, Columbia is a great place to live and work. Much has changed over the past decade and the country has minimized a number of key challenges. Due in part to foreign investment and the easing of trade restrictions, Colombia has become an emerging global player, with a GDP that grew 5.7 percent in 2011 (3.7% inflation)8. When economies worldwide were tanking, Colombia was growing and continues to grow.

TIME magazine heralded the dawn of “The Colombian Comeback” in its April 2012 International Edition, stating that Colombia went from a failed state to an emerging market in less than ten years. Those who recognize this will reap the rewards, especially the lucky few who are being as-signed to live and work here.

8 Moreno, Carolina. 21 Reasons Colombia Is The Happiest Country In The World. The Huffington Post, 17 Jan 2013. Web. 21 Apr 2013. <http://www.huffingtonpost.com/2013/01/17/reasons-colombia-happiest-country_n_2490813.html

Asia Pacific HeadquartersMobility Services InternationalSuite 2118, 21/Fl. Shui On Centre8 Harbour Road, Wanchai, Hong Kongwww.msimobility.com

direct +852 2156 9181fax +852 2156 9182email [email protected]

U.S. HeadquartersMobility Services InternationalOne Liberty Lane EastHampton, NH 03842, USAwww.msimobility.com

toll free +1 800 648 4018direct +1 603 274 9100fax +1 603 274 9199email [email protected]

Western U.S. Operations CenterMobility Services InternationalDenver Corporate Center 1Suite 100, 4700 South Syracuse StreetDenver, CO 80237, USAwww.msimobility.com

direct +1 603 274 9100fax +1 303 221 1090email [email protected]

EMEA HeadquartersMobility Services InternationalThavies Inn House3-4 Holborn Circus, EC1N 2HA, UKwww.msimobility.com

direct +44 (0)207 427 1902fax +44 (0)203 002 4601email [email protected]

Documents

COLOMBIA: AN EXPATRIATE’S PARADISE FOUND