Colombia strengthens regional economies and promotes cooperation instead of competition

Published: Friday, January 12, 2024 at 8:50 am

Colombia Embraces Solidarity Economy, Challenging Neoliberalism

**BOGOTA, COLOMBIA** - Colombia, under the leadership of President Gustavo Petro, is actively restructuring its economy, shifting away from neoliberal principles and embracing a solidarity-based model. This move, aimed at fostering cooperation over competition, is gaining momentum and attracting attention as Latin America explores alternatives to traditional economic systems.

The Colombian government is focusing on supporting small businesses, cooperatives, and micro-enterprises, particularly in sectors like coffee production, food vending, and construction. Initiatives include establishing solidarity-based associations across eleven regions, with plans for a total of 33 projects. These "circuits" connect businesses, creating cross-sector networks to facilitate collaboration and resource sharing.

A key aspect of this shift is the government's commitment to awarding 30% of state contracts to joint cooperatives, opening opportunities for smaller entities to participate in larger projects, such as road construction. This strategy aims to strengthen the local economy and provide a more equitable distribution of resources.

President Petro emphasizes the strategic importance of this solidarity sector, envisioning associations of small shopkeepers and farmers working together to secure subsidized loans and industrialize their products. This approach contrasts sharply with the neoliberal emphasis on individual competition, promoting instead a collaborative environment where businesses can thrive collectively.

The project, which includes training programs for entrepreneurs, has already seen significant progress, with 3,200 organizations celebrating the development of the solidarity economy at a recent year-end meeting. This initiative demonstrates a commitment to empowering local communities and building a more resilient and inclusive economic model.

BNN's Perspective: While the shift towards a solidarity economy in Colombia presents an interesting alternative to traditional neoliberal models, its long-term success hinges on effective implementation and the ability to navigate potential challenges. The focus on cooperatives and small businesses could foster economic growth and social equity, but careful management and oversight will be crucial to ensure transparency and prevent unintended consequences.

Keywords: Colombia, Gustavo Petro, Solidarity Economy, Neoliberalism, Cooperatives, Small Businesses, Micro-enterprises, Economic Cooperation, Latin America, State Contracts, Local Economy, Economic Restructuring, Circuits, Coffee Producers, Construction Sector.

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