The State Of Unemployment In Colombia And Its Economic Effects
1. Country and economic concern selected with brief explanation for choice:
Latin American countries have been undergoing testing times in terms of economy and public welfare. Colombia is one such country that is facing severe challenges with its economy. One of the most pressing issues facing the country of Colombia is that of unemployment. Colombia is probably best known for its drug producing mafia. Its infamy impacts tourism and trade, despite Colombia being the second largest producer of coffee in the world. The unemployment, especially among the youth, acts like fuel to the fire with regards to Colombia’s economic uncertainty. The country itself does have the potential to have a stable economy and at least the minimum acceptable level of public welfare. It will be interest to analyze why the country is embroiled in warfare instead of welfare, which is why I have chosen it to be the topic of my research.
2. Relationships between selected economic concern and country? Economy/other variables:
According to the US Central Intelligence Agency’s (CIA) World Fact Book, Colombia had a total work force of about 21.27 million (2010 estimates). For a country whose population stood at 44,725,543 (2011 CIA estimates), this figure is abysmal. The unemployment rate is at 11.8% (2010 estimates). It is also important to note that nearly half of the country’s population (45.5% - 2010 estimates) lives below the poverty line. According to a CEPAL (United Nations Economic Commission for Latin America and the Caribbean) 17% of these are homeless. It is obvious that when a person remains unemployed for a long time, he or she cannot provide the bare necessities of life for their families. However, the high level of poverty in Colombia is not just attributed to unemployment alone but to the quality of work that those who are employed have. Nearly 32% of those who state themselves to be employed do not have a formal work contract or access to a healthcare system while 48% hold informal jobs such as street vendors and garbage recyclers (CEPAL). So not only is the population of Colombia plagued with unemployment but those who are employed work in very low paying jobs.
When a person is unable to support his or her family by legal means, they find themselves to be helpless and turn towards illegal trades to earn a living. This applies especially to the youth, who find themselves without an education, without a job and without a bright future prospect. They tend to get involved in the local drug mafia in one way or the other. Those who are considered incapable of violence or physical brutality, find work on cocaine farms while the others get involved in more dangerous aspects of the trade. This draining of possible working populace towards an illegal sector that is causing more harm than good to the overall progress of the nature takes its toll on the economy.
High unemployment has also led to an increase in the economic class divide among the population. The upper class, which accounts for 20% of the population, accounts for about 75% to 80% of the Gross National Product (GNP). The rest of the 20% GNP is shared between the remaining 80% of the population. Being far richer than the masses, the elite class has access to education, healthcare and security. They also hold much political sway over the government and have the capacity to influence policies and laws. As the lowers strata of the society cannot afford something as basic as education, they remain trapped. in the depths of poverty.
3. Discussion of Trends indicated in data sets: (also include relevant data/graphs showing trends):
According to the CIA’s World Fact Book, Colombia’s unemployment rate is 2010 was estimated to be 11.8% while the figure was 12% for 2009. Given below is a table of urban employment trends [ CITATION Fre05 \l 1033 ]
Table 1. Urban unemployment (%)
1990
2002
Colombia
9.7
16.5
The above data shows that although unemployment constantly and steadily increased from 1990 to 2002, its has shown hopeful signs with a slight dip of 0.2% from 2009 to 2010. Formal urban unemployment also fell by one percent to 11.3% in December 2010 [ CITATION BBV11 \l 1033 ].
4. Citations in correct APA format
Works Cited
BBVA Research. (2011, March). Colombia Economic Outlook. Retrieved April 12, 2011, from http://serviciodeestudios.bbva.com: http://serviciodeestudios.bbva.com/KETD/fbin/mult/1102_ColombiaOutlook_16_tcm348-246552.pdf?ts=1242011
Frenkel, R., & Ros, J. (2005, September 7). Unemployment and the Real Exchange Rate In Latin America. Retrieved April 12, 2011, from http://www.depfe.unam.mx: http://www.depfe.unam.mx/actividades/11/macro-abierta/11-2_majr_03_frenkel_ros_2006.pdf
Project Mercy. (n.d.). Poverty in Columbia. Retrieved April 12, 2011, from www.projectmercy.com: http://www.projectmercy.com/columbia.html
US Central Intelligence Agency. (2011, March 9). The World Fact Book. Retrieved April 12, 2011, from www.CIA.gov: https://www.cia.gov/library/publications/the-world-factbook/geos/co.html#top
