COLOMBIA: 10 Years Growing Together

"Colombia, the risk is that you will want to stay” was an advertising campaign from the early 2000s that successfully carved out a space in the heart of every Colombian. While its primary aim was to attract international attention in the tourism sector, it ended up leaving a strong lasting mark on a generation of Colombians who had lost hope, partly due to a wave of violence and pain comparable to the terror experienced by that same generation, caused by narco-terrorism a couple of decades ago.

Today, our country leads the lists of internet users and expert travelers who seek not only incomparable landscapes, but increasingly a destination for both international and national investment. Those who go beyond news headlines and take a panoramic view may find this perspective influenced by a certain over-optimism; however, it accurately reflects the resilience that has consistently enabled Colombia to adapt to its historical reality. It can be said that Colombia has learned to navigate through diverse challenges, primarily guided by the strength of its institutions, standing tall even amidst the social, political, and economic storms that have struck.

Violence, which became part of our daily conversation since the early 20th century, combined with that deep and unhealthy patriotism, are two constant elements that, among others, have led Colombia through a political oscillation of extremes. Paradoxically, this has allowed the construction of the foundations of its social agreement on the basis of institutions, often unaffected by the ebb and flow of political conflicts. These institutions, with orthodox policies, are the ones that have bravely maintained our nation as a reference for stability, both economically and politically, in the region, at least over the past seventy years.

While there are historical events we might wish to forget, they have allowed us to strengthen the institutional framework we now take pride in. Take, for instance, the decades-long scourge of drug trafficking that deeply entrenched itself, even in the highest echelons of power. It served as the painful prelude to the establishment of an entire system and regulation for Anti-Money Laundering and Combating the Financing of Terrorism (AML/ CFT) risk management, which undeniably stands as a reference for the entire region.

The economic ecosystem of our country, since the 1991 Constitution, has been shaped by globalization.

Although precarious and defenseless initially, this marked the path that enabled investors to transcend the physical and economic borders of our territory, leveraged at that time by what coffee and its prosperity could contribute. This openness, despite its ups and downs, has now, more than thirty years later, resulted in positive outcomes for those who have understood what Colombia has to offer. Our country is in a constant race to avoid stagnation, always striving to maintain a normative structure that addresses the economic realities it faces. Generally, a common denominator in this pursuit is the technicality governing the entities of regulation and financial supervision. These entities have consistently maintained a vision that is not only technical but also global and receptive to the main actors in the economy.

Furthermore, our regulatory authorities have adeptly employed tools to “Colombianize” international standards and guidelines, adapting them to the nature and needs of the country while aligning them with a global reality that demands uniform regulations. A prime example of this is the International Financial Reporting Standards, which have echoed in the financial sector for the past decade. With steadfastness, they continue to progress in constructing an accounting infrastructure that enables a cross-sectional and comparable analysis.

Another compelling example of this national interest in strategically aligning with global trends is the increasingly diligent implementation of ESG (Environmental, Social, and Governance) criteria in business decision-making. This trend, strengthened globally, particularly since the Paris Agreement on climate change, has not been overlooked by local regulations. Gradually, these regulations have been encouraging the implementation of these elements to address a global reality from which our country aims to stay at the forefront.

Thus, Colombia can boast not only of its landscapes, diverse climates, and biodiversity but also of its political stability and institutional strength, allowing investment projects like Nacional de Seguros to become tangible realities. Ten years ago, this company dared to do things differently, entering a highly specialized market, and today we can say that this bet on the country has been worthwhile. Our hope is that Colombia continues to be a place where risk-taking investors decide to stay.