Make money, not war!
Colombians will hold a historic referendum on Oct. 2 that could end a 52-year civil war, and potentially begin the most peaceful period the Americas has seen since the independence wars began in 1808.
The peace agreement with the FARC rebels not only heralds the end of widespread suffering and displacement, but it also creates an enormous opportunity for businesses to expand and generate wealth.
The peace deal will encourage companies to take full advantage of the 2012 U.S.-Colombia Free Trade Agreement. Even with a civil war, Colombia was the third-largest economy in Central and South America, and the deal eliminated tariffs and trade barriers to U.S. goods and services. Houston-based oilfield services firms and offshore drilling companies have reaped the benefits of tariff-free equipment exports to Colombia’s energy industry, which has expanded when oil prices spiked in 2014. Banks have followed the money.
Peace also allows for peaceful political transitions. Thomas Landstreet, a financial analyst specializing in Latin America, wrote a piece for Forbes hailing the end of socialism and the rise of capitalism in the region.
“I expect Argentina, Peru, Colombia and Chile to post the strongest economic growth on earth over the next five years,” Landstreet said.
U.S. businesses would do well to rethink the old stereotypes. With more pro-business leaders and less violence, any recovery in commodity prices will lead to a burst of economic growth.
The time may be right to get in on the ground floor.