Going stag never sounded as fun as it does now, in times of Coronavirus. In fact, you are encouraged to stay as far away from everyone else as possible, and look slightly mysterious. Here’s my two cents about Colombia Economic Outlook, Post-COVID-19.
I feel the need to get moving economically. It’s times like these, fortunes will be won and lost by the ability to provide strategic resources, at the right time.
That being said, I don’t make any claims to be a guru of economic choices. On the contrary, I definitely haven’t made my fortune yet, in monetary terms.
Residents benefit from a wide variety of tropical fruits and vegetables, at cheap prices. Even cold climate fruits like blueberries and apples, are grown in Colombia.
The upside to Colombia is the exotic beauty of every microclimate you could imagine. We enjoy a culture that is warm, and intimate. Depending on region it comes in varying degrees of overall friendliness towards foreign visitors, and residents.
That being said, there are two principal benefits to living in Colombia…
- Food Quality/Availability
For the sustainability and overall resource potential, Colombia is a very interesting destination for the survival inclined. If food and water resources are important to you, then Colombia continues to be a great option.
Understanding Colombian Economics
This isn’t the first time Colombia has faced economic, social and political upheaval. In fact, many working age adults in this country have experienced some degree of economic hardship due to violence, corruption, and upheaval, in their lifetimes.
Interestingly, many people here still know how to work the land with limited resources, construct machines from basic parts, butcher animals, and defend home, and/or community. In the first world, some of this knowledge is lost, or confined to obscure hobbyists.
I am mostly indifferent to political parties in Colombia. They all have blood on their hands. But, the USSA isn’t so very different either, they simply hide it better. Grassroots activism in a low key, and discreet atmosphere, is the future of independence and individual choice.
I digress, this is not meant to be a heavy political commentary, but the political ruling class have a heavy impact on Colombia Economic policy.
Here’s a link for a report on the IMF website about Colombian Economic Recovery. They were making great strides when everything happened. https://www.imf.org/en/Publications/CR/Issues/2020/05/04/Colombia-Request-for-an-Arrangement-Under-the-Flexible-Credit-Line-and-Cancellation-of-the-49392?fbclid=IwAR2h05AgG6IMUCFrb3ti5RJ1B–_P4m_jRy5Voa5cJlAGP8vhTPK6aevlDA
To really understand the economic reality of Colombia, you should listen to the podcast embedded below, which goes to the historical roots of the issue.
Keep in mind, most people here do not understand Libertarianism. They have no party here and their political tradition is inherently socialist, which has led to inflated bureaucracy and disaster.
In the podcast Daniel Raisbeck, interviewed by Brendan Corrigan, examines the history of independence, and some of its impacts on current Colombia Economic policy – from a libertarian perspective. He makes a few key points:
- Simon Bolivar based his vision off of the Roman Empire – creating a republic style of government for New Granada.
- Colombia has a complex and fragmented tax system that doesn’t enable small business enough to actually earn the taxes required to support their socialist programs. Corporations and legal businesses are heavily taxed lowering operational incentive.
- Due to tremendous hurdles, only 4% of the total population actually pay taxes, with more than 50% working on an informal basis.
- The challenges to trying to implement a global basic income.
Essentially, cronyism and monopolies rule the day here. Colombia does not create the necessary conditions for foreign investments to really succeed. The people want free health/social programs, but they aren’t willing to pay for it.
As someone who has fought hard to create her own business concepts over and over again, I can concur that the reality is, that most of us are forced to work informally. Most investor-types who I have met have actually failed in their goals or left with empty hands, even after they went ahead with their plan.
Colombia for Entrepreneurs 2020/2021
Agricultural resources from farm to table must be contained in small and efficient business models that avoid middle men, yet still reach consumers. Most of these business models must start informally and only “go on paper” when they prove their success – if ever.
Debt must be avoided at all costs due to long term instability of traditional economic models. People should have various types of physical value such as band-aids, beans, bullets, seeds, silver, gold, and on digital networks – Cryptocurrency. The government isn’t going to save you here.
But don’t take my word for it. Here are a few people I follow for economic insight and advice:
Our favorite example includes someone like Jeff Berwick, of The Dollar Vigilante, who gives very real, but positive, economic advice. He is an expat in Mexico, and understands our overseas lifestyle struggles.
Another very interesting economic field warrior, is Francis Hunt, of The Market Sniper. Bringing to the table an abundance mindset, practicing imperviousness to outward conflict. Positive and common sense economic mentality.
Colombia Economic Outlook
While I don’t have a crystal ball, I have been able to draw a few conclusions about a Colombia Economic Outlook.
Digital marketing, online magazines, and high quality products delivered to your door, are en vogue. People here largely submit to the quarantine, and have time available to consume content.
Restaurant models which guarantee quality and post-transport appeal are going to be winners.
Imagine a camera setup where you interact with a chef who is preparing your meal. He has a camera showing his hands, or workspace, and another where he can see and interact with you, in between tasks. When everything is ready, it is delivered to your door 15-20 minutes later.
Agricultural assets are abundant and ready to be farmed, via permaculture, and small, local farm networks. Which are already in place to some extent. If you have a special talent for a food-producing discipline, you can find subsistence potential in places like Pereira, and Bucaramanga. This isn’t a get-rich-quick type of activity. You either have those before arriving, or you work hard for it. There is virtually no in-between.
Digital privacy products aren’t very common here. They could be something innovative to introduce over a long period of time.
Colombian Economic Potential is going to depend heavily on our ability to be innovative, private/informal, and liquid.
These are a few of the examples that came to mind based on my own personal experience. Possibilities are infinite, but keep in mind that diversity of raw material options are limited. Businesses which aren’t tied to monthly rent/office overhead costs, will do better.
Colombia Economic Potential is open to interpretation, there really isn’t much due to overreaching bureaucracy. You won’t ever find a perfect situation, but if you are willing to work hard for it, there are some opportunities.
As a survival destination, Colombia is interesting. We have ample food, water and natural resources. The scenery is gorgeous, the men/women beautiful, and life is always adventurous. Click here for top 10 Coffee Axis destinations!
For economic potential, there isn’t much unless you have corporate, criminal, or bureaucratic allies, who are firmly committed to helping you succeed. This is, and will continue to be, a great destination for retirees, but mediocre at best for someone wants to start a small business.
If I could go back and change history, I would have taken my entrepreneurial ambitions to a place like Uruguay, or even Chile. Going forward, I will probably stay here the rest of this year, but if given the opportunity to leave and go somewhere else – I really don’t know at this point if I would stay, or go.
Additional advice and context provided by John Ramirez, to learn more about him, click here: https://www.linkedin.com/in/john-fredy-ramirez-rios-a4a0a756/
For up to one hour of my time each month via WhatsApp, where I personally give you insight, click below! Your support makes a huge difference in my ability to publish regularly and create high quality content while being able to feed my family!
Tyler B BirdAugust 8, 2020 at 9:59 am
You seem out of touch with basic económic concepts and provide no real details as to why you say you cant have a small business in colombia.
You seem surprise by the factor that “people here still farm with limited resources” ….. have you not seen the rural countryside outside of the tourist-heavy coffee región?? Most farmers in colombia are working under these condition. Nothing novel about it.
Is your económic outlook 100% ranking about bloggers? You ignore many industries and económic sectors.
Yes colombia is corruptos and terrible inefficient and registering a business can be a nightmare.