Productivity is low and its growth has declined. Better innovation policies to generate knowledge-based capital are needed to boost productivity. Strengthening competitiveness through simplified customs procedures, infrastructure investment and streamlined regulation are required. Increasing quality of education and reducing informality is also needed to boost productivity and allow the fruits of growth to be shared more equitably.
- Sustain the increase in public investment and finance more infrastructure programmes on a regional basis. Continue with the swift implementation of the road infrastructure program (4G) and guarantee that Private-Public-Partnerships continue to have proper cost-benefit analysis.
- Provide more grants and loans for R&D to enterprises and fund R&D projects that bring industry and academia together.
- Further reduce barriers to trade and competition, which remain relatively high, preventing entry of new innovative and dynamic firms.
- Remove regulations on public ownership and vertical integration in electricity, vertical integration and market structure in rail.
- In order to reduce informality, continue reducing taxes and fees on wages (non-wage labour costs) and establish social dialogue to discuss differentiating the minimum wage by age and regions.
- Expand access to and make greater use of active labour-market programmes.
- Establish a national curriculum for school education and professionalise teachers’ careers.
- Provide more public support to increase enrolment rates of disadvantaged children in less developed regions and increase quality of education.
Source: OECD May 2017 Economic Outlook database
Eslava, M., M. Meléndez & G. Perry (2014). "Public-Private Collaboration on Productive Development Policies in Colombia," IDB Publications (Working Papers) 84135, Inter-American Development Bank.
Eslava, M., J. Haltiwanger, A. Kugler & M. Kugler (2014). "The Effects of Regulations and Business Cycles on Temporary Contracts, the Organization of Firms and Productivity," CEDLAS, Working Papers 0154, CEDLAS, Universidad Nacional de La Plata.
Gallego, J. M., L. H. Gutiérrez & R. Taborda (2015). “Innovation and Productivity in the Colombian Service and Manufacturing Industries” , Emerging Markets Finance and Trade, Volume 51, Issue 3, May 2015, pages 612-634.
Gallego, J. M. & L. H. Gutiérrez & Sang H. Lee, 2015. "A firm-level analysis of ICT adoption in an emerging economy: evidence from the Colombian manufacturing industries," Industrial and Corporate Change, Oxford University Press, vol. 24(1), pages 191-221.
Productivity - enhancing institutions