Colombia and the Economic Premium of Peace

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Publication Date:
January 29, 2015


Harvard Business School

Colombia, the fastest growing country in Latin America, continues to struggle with productivity. Both labor productivity and total factor productivity have been low for the past decade, despite economic growth of 4.7% annually. Many factors contribute-everything from infrastructure, to banking, to informality. President Santos, one year into his second term, is well aware of these difficulties and has put in place new policies to mitigate them. His focus, however, is on peace negotiations with the FARC-a possible settlement of the 50-year struggle which itself would significantly impact productivity.

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Colombia and the Economic Premium of Peace

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