Columbia 2019

Basic statistics of Colombia, 2018
Executive summary
Key policy insights
	Growth is firming up
		Financial stability has been preserved
	Macroeconomic policies are solid but the fiscal framework could be reinforced
		Monetary policy
		Fiscal policy
		Simplifying the tax system and improving the tax mix
		Strengthening the fiscal framework
		Enhancing public spending efficiency
	Social indicators have improved, but Colombia remains a very unequal country
		Social spending does little to reduce inequality
		Reforming the pension system to increase coverage and equity
		Achieving quality education by giving priority to the most vulnerable population
	Strengthening productivity growth
		Boosting productivity through more competition
		Reducing informality: win-win for inclusiveness and productivity
		Improving governance and reducing corruption
	Green growth indicators are good but deforestation as well as production and use of hydrocarbons pose challenges
	References
		Annex. Progress in other structural reforms
		Thematic chapters
Chapter 1.  Boosting exports and integration into the world economy
	Colombia is not making the most out of international trade
		The economy is relatively closed
		Prices are high
		Good exports are concentrated in few products and destinations
		FDI has become more diversified but integration in global value chains remains limited
		Trade in services is relatively low
		Colombia’s untapped potential is large
	Cost-to-trade is very high
		Infrastructure gaps are large
		Improving roads
		Improving ports
		Trade facilitation can help
		Boosting competition in key services
		Improving infrastructure planning
	Lowering input costs for exporters
		Trade tariffs have fallen
		Tariffs dispersion is high
		Non-tariff trade measures are numerous
	Boosting innovation
		Going digital
	Easing access to finance
		Improving bank financing
		Developing the equity market
		Boosting financial inclusion
	References
Chapter 2.  Fostering high-quality jobs for all in Colombia
	Setting the scene: Job quality in Colombia
	Implementing the new OECD Jobs Strategy
	Curbing informality
		Learning from recent reforms
		Lowering the costs of formality while enhancing its benefits
		Ensuring effective labour law enforcement
	Ensuring adequate support for workers in a flexible labour market
		Finding the right balance between employment flexibility and job stability
		Reorganising unemployment insurance
		Ensuring better regional coverage of the unemployment protection mechanism
		Improving public employment services
		Focusing on active labour market programmes proved to work
	Strengthening equal opportunities
		Promoting female employment opportunities
		Boosting job-quality of ethnic minorities
		Sharing gains with workers
	Promoting skills development
		Expanding and upgrading upper-secondary Vocational Education and Training
		Boosting the relevance of vocational education at higher education
		Strengthening on-the-job and for-the-job learning
		Enhancing apprenticeships
		Getting skills right
	References
		Annex 2.A. The OECD Jobs Strategy dashboard