We could frame this meeting saying, dear compatriots, that when the world pointed to serious flaws in the international financial system regulations, which led him to change the notion that capital is an asset for creating social wealth, by that mistaken notion that capital is an asset endless speculation, Colombia had been spared that risk, with management for many years, always in advance of a severe regulations, without being unbalanced, which helped to reach this crisis with a financial system solid.
I want to stress, one sees the meetings of G-20, G-8, all of which are eagerly looking for new regulations to be made and Colombia had anticipated a lot.
Speaking of three important facts, we can say that this is the first:
We arrive at this crisis with a sound financial system, fortunately.
I see that Democratic critics were speaking of the profits of the financial system, but few other highlights two factors: their real contribution to the finances of the municipalities, the finances of the nation and was recently highlighted the fact that very positive for the country have been able to reach this crisis with a sound financial system.
The second fact:
During these years we have paid with government bonds Fogafin time. Years of 900 billion debt of the national budget, one trillion years to 100 billion. We have complied strictly with these bonds that once allowed the rescue of the basic banking service.
I think that there’s a very important point to highlight saving. In these years, deposit insurance has increased from 400 million to $ 3 mil. An important and well saving large.
To speak of what other indicators of the Colombian financial system. One sees in some developed countries, enormous difficulties, because the credit rating they fell below 7 percent from 6. In Colombia it has been maintained above 14. And here, the coverage reached around 0.39 in the last three months have fluctuated between 1.11 and 1.09 recently.
Another important fact to highlight is that once written off the state banks and intervened banks were sold well, timely and transparent manner.
To think about what would be happening not have done that at the time the decision was made to advance.
I can not move in these words, dear fellow countrymen, without returning to something elemental:
Governments need to have goals, sharing with the public every day, improving the way to achieve them, and by conviction, repetitive, so solidly grounded in the consciousness of the nation.
Our ultimate goal is one: to deepen confidence in Colombia, on three elements: security with democratic values, social responsible investment and social cohesion.
I would say that Colombia has advanced in years a well-balanced. Something must honor our democracy is that as we progress in the rescue of security, we have also achieved higher rates of investment and better social security coverage.
A balanced policy which is essential for social governance.
Colombia is a country which I believe has more political debate and social confrontation. AND the political debate, of course, shows no progress on the issue of governance and social agreement in the matter of the reduction of social confrontation.
This decrease is largely explained by the adoption and development of a well-balanced. Balance in which everything that is social security coverage has been accompanied with full force, the advancement in security.
Democratic Progress in Security
We have advanced security. The facts show that we have not yet reached a point where the Democratic Security irreversible. There are risks that the item was reverse. That is why we must every day and speak very clearly about the subject with all the compatriots.
I do not want fatigue figures. I will refer some of Democratic Security intangibles.
We brought two monopolies that the State should never lose the monopoly to fight the violent and the monopoly of Justice.
We dismantled the paramilitaries. The word ‘paramilitary’ was used in Colombia to refer to private criminal gangs, whose aim was to fight the guerrillas.
The country is now drug trafficker drug trafficking and guerrillas. They are kept in a mobster. In some parts of the country are united, and in other parts of the country are scrambling. Unite or face around the spoils of drug trafficking.
But basically the whole country is that it is the State, through its constitutional army, the only one that compares crime. It is a great way to have recovered the monopoly.
In many regions of Colombia guerrillas and paramilitary leaders were moved and replaced Justice. Litigation of family disputes between neighbors, major and minor crimes were not known by prosecutors and judges, but by the leaders of criminal organizations.
Justice has been recovered throughout the territory.
Reparations to victims
Something very important: the issue of victims.
Of the victims spoke at the funeral, but claimed no victims through fear or because they were useless. Repair had no importance in the national public agenda. We have made progress.
Today we have 240 thousand casualties and we have begun the repair process in the monetary component.
Last week, on Sunday in the city of Popayán (Cauca) started the process. This Sunday will continue in the city of Monteria.
This year, apply the first $ 100 million for some 10 thousand victims, and include the budget for 2010 and preparing the preliminary draft budget of 2011, items for moving forward the process of monetary compensation to victims.
Total repair there, but any effort to repair, repair efforts, helps to nullify germs of revenge and hatred.
The country must make a strong effort in the fiscal area. Our legislation has advanced. What we can not is that by election worries of the eve of democratic elections, issuing laws of the Republic, by their exaggerated amounts, ending with an inability to refuse the application that finally reparation for victims.
The bill that Congress rejected, and finally had all the alternatives that were being built from the Redress Act, Justice and Peace, would have rejected the project cost the treasury 85 billion pesos, a national public sector that raises This year around 67 billion.
Another important theme:
Colombia has faced a challenge of terrorism, the most serious of the continent, a criminal terrorism and rich, with more than self-sufficiency in terms of resources, Colombia has been confronted with ordinary legislation, not martial law. It has faced without suspending liberties, with full guarantees of political rights. I think that honors our democracy.
Colombians were the trend in many regions of the Fatherland to seek to resolve the security problem on its own.
Today it has regained confidence in the institutions. A growing number of compatriots who come to institutions in pursuit of public safety, and cooperates with them.
Starts to retrieve something very important that the country can not lose sight of: in Bogotá and in the regions already have to call, and representatives of institutions who go in search of security.
In Bogota, citizenship was martyred permanently Antonio Nariño by militias of the FARC, paramilitary groups by Miguel Arroyave, and others.
That was unknown. The public is suffering, and the institutions they wanted to hide. And that went on in all regions of Colombia.
I repeat my daily which is very important to involve officials in efforts to be vigilant at all times to receive complaints, to meet the demands of citizens for security.
Financing Security
This work has been funded security without sacrificing the social.
What would be a serious argument that it was argued at the start of the Democratic Security that the country entered the war to the detriment of social support had been in reality.
We financed the security effort with a more affluent sectors of the Nation. We have not funded the security at the expense of social policy.
Just see, as I said, how the progress of security has been accompanied by social investment. The second major point for building confidence, trust investment.
And this is not unrelated to the financial sector. I know that we can discuss about the regulation, which in some countries it is alleged the lack of regulations, and in the case of Colombia it is also alleged over-regulation.
I know that you can discuss this antitécnico tax is 4 per thousand, at one point today deductible and which are not applicable to the accounts of any amount, up to approximately eight million pesos monthly turnover, you may have today every citizen.
I know that we can discuss whether or not to allow political economy, whether or not advised that the state has usury ceilings.
All this can be discussed, dear compatriots.
But confidence in Latin America today depends on a more substantive point: the security policy to private. The enterprise security policy is not assured in the continent today. Is at risk in many countries.
I would say that is the first point that distinguishes Colombia is a country moving in the enterprise security policy, security policy in a private enterprise, and this is important, of course, with the requirement of social responsibility.
Social responsibility that we transparency in relations between investment and public sector in investment commitments to the vulnerable sectors of the Nation, as I appreciate the growing financial sector with the Bank of Opportunity.
Social responsibility is also mirrored in the fraternity in labor relations, as opposed to class hatred or unbridled capitalism. Social responsibility implies that the path back to recognize that capital is a factor in building social wealth, and not a speculation.
To build that trust, Colombia has made a series of reforms and others are pending. And many of these reforms have been facing opposition from many years compared to the subjects.
The reform approved transfers valiantly to Congress, where the Plaza de Bolívar was crowded with citizens who were opposed to such reform.
Something similar happened with the reform that dismantled privileged pension schemes.
Administrative Reform
Have introduced major reforms in labor, as pension, I would say that the most important of these is the administrative reform, which allows us to go on making the transition state bureaucracy that destroys value, a community that builds value .
We have reformed 427 state entities. Further reform of state institutions until the last day of government.
Such reform would have saved the budget 6.28 percent of GDP. This reform has included companies such as Telecom, and Ecopetrol, the Social Security clinics.
If you go to the Social Security clinic in Cartagena, the Clinic Enrique de la Vega, who has found a large transit: the transit of desgreño state social efficiency.
This government did not close hospitals, but many have reformed and will culminate with the reform of the Social Security clinics.
In Bogotá, for example, these clinics are no longer handled by the political and trade union excesses, but by a partnership between the Foundation of the Brothers of St. John of God, the Compensation Fund to offset and the University of Rosario.
Ecopetrol reforms, against the prevailing political trend in Latin America.
When warned that some Latin American fundamentalism does not allow the private sector in the state oil companies, not only here did the labor and pension reform Ecopetrol, but also to move more than 10 percent of its capital structure were provided by nearly 500 thousand Colombians.
But administrative reform needs to continue every day and that is a commitment by the Government.
Legislative agenda of Congress
Welcomed the recent legislative agenda approved by the Congress.
I think there are very important to give more confidence in the transparency of the financial system, such as publications of which has already mentioned, very diligent in his speech, Dr. Maria Mercedes Cuellar, President of Asobancaria.
Featured reform:
The greater flexibility to better manage pension funds. The three levels, the accounts for younger workers, the level for the accounts of workers intermediate level and to manage the savings of workers who have an expectation of pension closer.
And a second point of a serious problem in Colombia is the social area is that despite the growth in membership of the Colombian pension system, nearly 19 million of our citizens who are part of the population, more 10 million seems to have no expectation of pension.
A big problem of Colombian society that must be resolved for the new generations, as they recover at a rate of growth and that growth will allow us to go with this transit of the high levels of informality, with higher percentages of formality.
The Constitutional Reform of 2005 authorized the government to under the Act could ensure a retirement income to workers in vulnerable sectors without expectation of pension.
Financial reform law that Congress has just approved a regulation that was already ordained by the Constitution.
The Government, in the period it remains, will advance with all speed to enable the Fund of Solidarity, to invite the Colombians to be vulnerable to opening up their retirement accounts and the government is guaranteeing the delivery of resources that accompany these retirement accounts, so that these compatriots, when they reached the age of the Act, may have a retirement income that is not equivalent to a pension because the pension in Colombia, by constitutional definition, no may be less than minimum wage.
But I think that is why we take a practical step of great social importance, while the country is linked to the pension system to cover more citizens.
We have very important pending reforms.
We hope that in the period that begins the congressional July 20, approval be given to a number of justice reforms, one of which is that which streamlines procedures for the courts to decongest structurally.
This process, security, the assurance of political entrepreneurship, the various reforms, has achieved considerable success in the face of the investment.
On June 19 was certified in Colombia this year received as foreign direct investment more than 3,800 million dollars. Of course, it is less than last year, but it is much more than in any previous year’s average.
In previous years, FDI stood at 500, 700, 1000; peaks 2 billion dollars.
In recent years, we had investments of 8 thousand 500 (million), 6 thousand 500. In 2007, 9 million 28 thousand dollars. Last year 10 thousand 564, and June 19 a figure in excess of three thousand 800 (million dollars).
The country is in fashion. I think a very important issue for investment in all sectors of economy and investment in the financial sector.
I think it is a fundamental issue. And build that confidence in the country must be a purpose of the vast majority of compatriots.
I do not see, dear compatriots, differently, in a society of 46 million people to overcome poverty and build equity, I see no way different from that of maintaining a high rate of investment, sustained over time. It depends on, well, domestic investment, return on investment from the Colombians who had fled the country, our territory.
The investment rate has risen in recent years from 14 percent to levels between 24 and 28. In the first quarter of this year, despite the difficulties of the economy, that rate stood at 25 percent.
We must make the effort to ensure that the investment rate in Colombia is not reduced below 25 percent.