Tag Archives: Colombia

Controversy around ZIDRES law points to potential risks for investors in the agroindustrial sector in Colombia

A number of members of Congress have taken out a lawsuit against the recent passing of the Zidres law (Spanish abbreviation: developing agricultural areas of interest for rural, social and economic development), underlining the potential significant challenges that this recent economic initiative will face in Colombia. Since early conversations around the law in Congress, NGOs such as Oxfam, CODHES,  the Comisión Colombiana de Juristas, and others have voiced their outright opposition to its passing. However, Zidres is a key focus of the current government and its aims to increase investment in rural regions, particularly profiting on the likely signatory of the peace process with the FARC later this year.

One of the key elements of the law, and what is causing the most controversy, is that to fulfil its requirements, companies will have to present their projects to the Ministry of Agriculture. However, it is the companies themselves who are responsible for taking into account considerations around sustainable environmental issues, security, and the participation of local communities and individual landowners in the zones that they are keen to develop. Companies will have to navigate the complex legal challenges around who has the property rights for the areas included in any project proposals, in ways that may contradict or endanger already existing local and regional land claims or usages. Three points are worth keeping in mind to understand the potential risks posed by these projects.

• Firstly, the legal model aims to implement initiatives that would create partnerships between companies and local communities, whereby the latter would then have a stake in the project by working on it, receiving technical training and access to credit to buy land. However,  based on this provision it also underlines that local communities could end up losing their autonomy to such companies, who would have executive control over the projects and by defacto the land they operate on.

• Secondly, the law lays out that territory considered to be national property and marked as wasteland, can be used within these economic projects on the condition that the land rights remain with the state and are not transferred to the company who develops the project on the land. However, those against the law argue that this contingency allows companies – including foreign investors – access to the rights of large of swathes of national lands. The law also states that local communities could gain access to land rights on these “wasteland” areas, and reclaim the rights to them. Moreover, local communities who take part in the initiative can incorporate their land rights into the project, if they want to. At a practical level, such processes over land rights are not only deeply confusing to navigate, but open the door for possible processes of land accumulation. This is particularly problematic in rural Colombia and was one of the key drivers of the 50-year armed conflict. As such this controversial element of the law presents significant political and social tensions, both at a local and federal level.
• Thirdly, all projects from the Zidres law are likely to be in areas with heightened social and political tensions. According to the Colombian Notary and Registry office, the lands that can be used in the project will be distributed across 5 regions: La Guajira, Chocó, Norte de Santander, la Orinoquía y la Amazonía. This is another challenge as these are critical areas in current conflicts between local communities, varying other factions and the complex dynamics of the internal armed conflict. This is highlighted by an analysis study carried out by Verdad Abierta using data from the UN and other social organisations in the country. The study outlines that guerrilla groups and criminal organisations have a presence in all these regions, and there are already claims for collective land redistribution under the “local farmer/community reserve zones” and other areas of agricultural production for self-consumption. The new law does not explicitly recognise such zones, and opens them for future project development. This could cause significant tensions for companies when entering the local market, and is likely to create operational challenges as local organisations, and armed groups, react with hostility to their arrival.

  
  “What to watch out for”

At its core the Zidres law offers the potential for national and multinational companies to invest in a number of agroindustrial projects across the country. However, it is crucial that companies and organisations interested in participating in these joint initiatives move with care, carrying out thorough due diligence at a local level into the potential impacts any investment could have in these regions. Though the law has been declared unconstitutional, the national government under President Santos has underlined their commitment to pushing forward with the initiatives to tackle agroindustrial development in the country.

In the context of the expected signatory of the peace process between the government and the FARC later this year and the changing rural environment to one of post-conflict, it’s important that foreign companies looking to invest in opportunities in rural Colombia monitor two key areas. On the one hand, it is paramount to develop good relations with communities and local organisations that live and work in the project regions. Each community has a different historical and social claim and use of the land. It is important to respect social and political processes behind them to not put these communities in a vulnerable position, which would likely only hinder any long-term progress of the project.

On the other hand, companies must be fully aware of the illicit activities of armed groups in the region. Some may attempt to use the land rights issues to increase their property titles and then make financial gains by re-selling this land, or offer services that could put pressure on local communities living in these regions. In particular, future investors will have to carry out significant due diligence at a local level to understand the dynamics armed groups may play in any future investment, and ensure they are fully compliant with international and Colombian laws, to protect their ability to operate in a peaceful environment.

Peace commitment signed between FARC and Colombian government

Colombian President Juan Manuel Santos has signed a breakthrough peace commitment with the leaders of the country’s largest rebel group, FARC, and in so doing has laid the groundwork for a possible end to Latin America’s longest running armed conflict.

“We are adversaries, but today we advance in the same direction, the most noble direction of any society, which is peace,” said Mr. Santos, speaking from the Cuban capital, Havana, where negotiations between the government and the rebels have been taking place since November 2012.

In a joint statement issued on Wednesday, Santos and high ranking members of the Revolutionary Armed Forces of Colombia said that they had overcome the last major obstacle to rapprochement by agreeing on a strategy for compensating victims and punishing those who had engaged in human rights abuses. The terms of this agreement stipulate that fighters who confess their crimes and promise never to take up arms against the state again will face up to eight years of restrictions to their liberty. Meanwhile, negotiators are still working on establishing a mechanism for allowing fighters to surrender their weapons and demobilise. If all goes well, a definitive peace deal is
expected to be signed in six months. However, Santos has also promised the Colombian people that they will be given an opportunity to voice their opinions in a national referendum and that any future deals with the rebel group must also pass through Congress.

Over the past three years, negotiations between the two sides have been marked by advances and setbacks. Before yesterday’s signing ceremony, both sides had already agreed to plans on political participation for former FARC guerrillas, on land reform and measures to combat drug trafficking. In a further gesture of goodwill, earlier in the year FARC also declared a unilateral ceasefire and agreed to help the Colombian government remove thousands of land mines planted by the rebel group. Yet in spite of all the progress being made, negotiators have so far been unable to resolve an issue which still has the potential to undermine any hope of lasting peace in the war-torn South American nation: how to adequately punish rebel fighters and commanders for atrocities committed since the first shots in the conflict were fired? Resolving this problem to the satisfaction of both
parties is likely to be foremost in the minds of negotiators as the countdown to the peace deal begins.

Authorities Seize Over Two Metric Tons of Cocaine

Authorities in Colombia and Mexico have seized over two metric tons of cocaine disguised as printer toner. At Bogota’s El Dorado airport, police officers discovered the first batch of cocaine when a drug-sniffing Labrador detected traces of the narcotic concealed inside a shipment of forty eight boxes bound for an as yet unnamed company in the Mexican state of Sinaloa. After chemical analysis confirmed that the substance was in fact cocaine, Colombian police then notified their Mexican counterparts of the discovery, which led to the seizure of a second batch which had arrived at Mexico City Airport on a flight from Bogota some hours earlier.

“None of the operations resulted in arrests, but Colombian police and their Mexican counterparts have indications of the two caches’ owners: apparently the cargo would be received by member of the Sinaloa cartel and was sent by a drug trafficking networking rooted in Colombia’s Atlantic coast,” said the director of Colombian police, General Rodolfo Palomino in an official statement.

Referred to as “coca negra” or “black cocaine”, the practice of mixing cocaine base and/or cocaine hydrochloride with other substances in order to disguise its appearance and to make it undetectable to drug sniffing dogs has been used by Colombian drug smugglers since at least 1998. Once the substance has reached its destination, the drug is then extracted by passing it through a chemical solvent such as acetone.

According to the latest Colombia Coca Survey, which is produced by the United Nations Office on Drugs and Crime (UNODC) in association with the Colombian Government, the cultivation and production of cocaine has increased exponentially over the previous year. In 2014, the net coca cultivation area alone had risen from 48,000 hectares to 69,000 hectares, an increase of 44 percent. This substantially increased production capacity and allowed Colombia to produce a staggering 442 metric tons of cocaine over the same period.

Venezuelan President Accuses Colombian Government Of Approving Plan to Assassinate Him

While on a state visit to Vietnam, Venezuelan President Nicolas Maduro accused the Colombian government of approving a plan to assassinate him, as both countries struggle to garner regional support over an ongoing border dispute that has resulted in steadily worsening diplomatic relations. No further details or evidence to back up his accusation were forthcoming from the Venezuelan leader, who has in the past accused the Colombian government of trying to topple his administration.

Maduro’s remarks came as an emergency meeting of diplomats was held at the Organization of American States in Washington to discuss the deteriorating relationship between the two South American powers and the humanitarian crisis it has provoked. So far, Venezuela has closed six border crossings and forced around 10,000 Colombians who have been living illegally in Venezuela back across the border. On Thursday last week Colombian President Juan Manuel Santos condemned Venezuela’s actions as unacceptable and ordered the withdrawal of his ambassador. “I have favoured dialogue and diplomacy and I will keep doing so, but I cannot allow Venezuela to treat Colombia and Colombians this way,” Santos said in Bogota. In response, Venezuelan Foreign Minister Delcy Rodriguez announced that Caracas would also be recalling its own ambassador to Colombia for further consultations. A day later, President Maduro declared a state of emergency in the western state of Tachira, after smugglers in the troubled border region injured three Venezuelan soldiers and a civilian.

For many years, Venezuela has been a destination of choice for Colombians who wanted to escape from conflict and seek out a better life in the wealthy, oil-rich country, and Maduro has promised to maintain his position until Colombian authorities help to restore order to the porous 2,200 kilometre border. It is, however, possible that the Venezuelan leader has been motivated by factors other than the desire to control undocumented migration and paramilitary activity. Falling oil prices and inadequate currency and price controls have led to nationwide shortages of basic commodities which in turn have led to widespread looting and criminality. As Venezuela’s December 6 elections grow ever nearer, it is possible that Nicolas Maduro has exaggerated the seriousness of the border crisis to distract voters from the steep downturn in the economy and the failures of his own administration.

Bombs Explode in Colombian Capital

Two small bombs exploded in the offices of Porvenir, a private pension fund in Bogota, Columbia’s capital on Thursday, injuring eight people. Defence Secretary Luis Carlos Villegas has described the incidents as acts of terrorism, but has refrained from assigning blame to any particular group. No one has stepped forward to claim responsibility for the explosions, but there has been on-going speculation that the country’s largest rebel movement, the Revolutionary Armed Forces of Colombia (FARC), was behind the attack. Bogota’s police commander, General Humberto Guatibonza, has been unable to confirm or deny these allegations, saying only that investigators are still in the process of interviewing witnesses and examining footage captured on nearby security cameras.

The explosions have come at a time of increased tension between the government and the rebel group, who have recently launched a number of high profile attacks on Columbian infrastructure projects.  After implementing a unilateral ceasefire in December last year, 11 members of FARC were killed by government forces in an ambush in April, resulting in the resumption of hostilities. Since then, both sides have launched a series of attacks on one another, throwing into jeopardy the two and a half year long peace talks that have been taking place in Cuba. In addition to its suspected involvement in the Bogota bombings, FARC has, over the past few weeks, bombed several oil pipelines, causing thousands of litres of crude oil to run into nearby rivers, causing an environmental disaster that experts believe will take decades to resolve. Because of this, the Colombian government’s chief negotiator has said that unless FARC shows greater commitment to the peace process, the government may pull out altogether, thereby condemning the Colombian people to a bloody civil war with no foreseeable end.

In response, rebel commander Pastor Alape, a member of the FARC negotiating team in Cuba, said on Sunday that both sides needed to take steps to “deepen the de-escalation of the armed conflict.” He called on President Santos to make “strong gestures…to prove that (he) will become a president of peace.” FARC insists that the Colombian government should agreed to bilateral ceasefire, a move which, until recently, President Santos has entirely rejected. However, the government may be prepared to consider entering into such an agreement if FARC is ready to 1) accept judicial responsibility for any acts of violence perpetrated by its members and 2) renounce its illicit activities including extortion and the drug trade.