MELÉNDEZ UNIVERSITY CITY, CALI-if governments show their mettle in times of crisis, companies in these periods of unrest and difficulty are called to think depth of the problem, as called in organizations converged improvement opportunities . In the era of productivity when economies today are looked down up, think for a moment what it implies in the unemployment fund of the charge carrier in Colombia, which collapsed yesterday most important gateway to the west of Bogota. It also allows me to think of the country's vulnerability: Just a small insurrection, as in a busy commercial sector of the Colombian capital where a few vandals blocked the flow of thousands of people in the TransMilenio system, or a large as blocking roads with trucks, to disrupt an entire country.
Basically, the situation of truck is more than a legitimate exercise of the right to protest and a rupture between government and civil society sector. And be thorough in the analysis, appears on the scene a number of empirical evidence presented dramatically the context in which the crisis unfolds. Because you have to write it down, the table of rates is a tool obsolete and anti-technique that prevents the transport of goods moving in the boundaries of the regulated and free market forces to charge stiff tariffs on freight mobility, land transport In Colombia, the law of supply and demand does not exist.
The issue is not being fundamentalist market. The issue is deeper still: the Colombian economy, one of the largest in Latin America is relatively closed. Ie if you look comparatively small economies like Chile or Peru, Colombia looks set to be a closed economy without sufficient international openness and access to foreign markets is very limited. But the limitations are outside and inside. Colombian goods are expensive by the fact that, according to IDB, the transport of goods in Colombia is the second most expensive in Latin America and that is a strong barrier to entry in foreign markets.
But the lack of economic openness combined with the low competitiveness of Colombian firms export and international trade complementary services-such as to roads, ports and logistics transport, could define much of the worrying situation of unemployment in Colombia, to mention a related case. It is plausible that improvements in competitiveness, one in the liberalization of freight prices, exports will grow and in this way will create jobs. If the drop in tariffs was estimated export growth of 10%, how much could grow if you reduce transportation costs, for example?
Here's another analysis, now the World Bank: if a commodity out of Bogota to a U.S. port, the cost of assuming the Colombian economy is $ 2079 per tonne. Meanwhile, a product that comes from Cali only generate an additional cost of $ 660 per tonne, which is undesirable anyway. This situation should concern especially if Bogotá contributes 30% of Colombian GDP.
In conclusion, what is relevant to the transport strike crisis goes beyond the simple argument with a guild that is accustomed to working under the implicit demands of the economy in Colombia: this crisis is a call for modernization. Colombia today depends to a very significant majority of inland road, a costly and inefficient service by the low quality of work provided by the carriers, coupled with the lack highway, in the absence of railways, inland waterways and airports very discreet presence to handle foreign trade flows. It is time and time for reflection. It was never easy to do, but if Colombia is holding back to basics, word of Mr. Caballero Argaez hardly the ambitious goals of the rulers will be a flattering dream that extol the history books. And our roads remain blocked.
Basically, the situation of truck is more than a legitimate exercise of the right to protest and a rupture between government and civil society sector. And be thorough in the analysis, appears on the scene a number of empirical evidence presented dramatically the context in which the crisis unfolds. Because you have to write it down, the table of rates is a tool obsolete and anti-technique that prevents the transport of goods moving in the boundaries of the regulated and free market forces to charge stiff tariffs on freight mobility, land transport In Colombia, the law of supply and demand does not exist.
The issue is not being fundamentalist market. The issue is deeper still: the Colombian economy, one of the largest in Latin America is relatively closed. Ie if you look comparatively small economies like Chile or Peru, Colombia looks set to be a closed economy without sufficient international openness and access to foreign markets is very limited. But the limitations are outside and inside. Colombian goods are expensive by the fact that, according to IDB, the transport of goods in Colombia is the second most expensive in Latin America and that is a strong barrier to entry in foreign markets.
But the lack of economic openness combined with the low competitiveness of Colombian firms export and international trade complementary services-such as to roads, ports and logistics transport, could define much of the worrying situation of unemployment in Colombia, to mention a related case. It is plausible that improvements in competitiveness, one in the liberalization of freight prices, exports will grow and in this way will create jobs. If the drop in tariffs was estimated export growth of 10%, how much could grow if you reduce transportation costs, for example?
Here's another analysis, now the World Bank: if a commodity out of Bogota to a U.S. port, the cost of assuming the Colombian economy is $ 2079 per tonne. Meanwhile, a product that comes from Cali only generate an additional cost of $ 660 per tonne, which is undesirable anyway. This situation should concern especially if Bogotá contributes 30% of Colombian GDP.
In conclusion, what is relevant to the transport strike crisis goes beyond the simple argument with a guild that is accustomed to working under the implicit demands of the economy in Colombia: this crisis is a call for modernization. Colombia today depends to a very significant majority of inland road, a costly and inefficient service by the low quality of work provided by the carriers, coupled with the lack highway, in the absence of railways, inland waterways and airports very discreet presence to handle foreign trade flows. It is time and time for reflection. It was never easy to do, but if Colombia is holding back to basics, word of Mr. Caballero Argaez hardly the ambitious goals of the rulers will be a flattering dream that extol the history books. And our roads remain blocked.
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