Economy - MAHAMAG Magazine beyond boundaries

COLUMBIA - Revival from ruin

Colombia, entered the cocaine trade in the early 1970s. drug lord Pablo Escobar' collaborated with other criminals to form the Medellin Cartel and eventually controlled over 80% of the cocaine shipped to the U.S. . He got his start as a petty street thief, stealing cars before moving into the smuggling business. Escobar’s early prominence came during the “Marlboro Wars,” in which he played a high-profile role in the control of Colombia’s smuggled cigarette market. This episode proved to be a valuable training ground for the future narcotics kingpin.

In 1982 Escobar was elected as an alternate member of Colombia’s Congress. He attained popularity by sponsoring charity projects and soccer clubs.

Colombia came to dominate in the cocaine trade. Beginning in the early 1970s, the country became a prime smuggling ground for marijuana. But as the cocaine market flourished, Colombia’s geographical location proved to be its biggest asset. Columbia situated at the northern tip of South America between the thriving coca cultivation epicenters of Peru and Bolivia.

Escobar moved quickly to grab control of the cocaine trade. Under Escobar’s leadership, large amounts of coca paste were purchased in Bolivia and Peru, processed, and brought to America.. By the mid-1980s, Escobar controlled more than 80 percent of the cocaine smuggled into the United States. More than 15 tons of cocaine were reportedly smuggled each day, netting the Cartel as much as $420 million a week. He positioned himself as a Robin Hood-like figure, which was echoed by many locals as he spent money to expand social programs for the poor.

In 1982 Escobar was elected as an alternate member of Colombia’s Congress. His ambition and ruthlessness made him one of the wealthiest, most powerful and most violent criminals of all time. But later terror campaigns that resulted in the murder of thousands turned public opinion against him.

But the reasons for his wealth could not stay hidden and two years after his election. He was forced to resign, with the justice minister who had revealed Escobar's notorious background. Escobar was killed

in 1993.

After Pablo Escobar era

The drug trafficking days has gone. Many entrepreneurs graduated from Hub BOG's program. According to Government, between 2007 and 2012, Colombia's tech industry grew 177% to $6.8 billion. The International Monetary Fund observed, Colombia's economy has tripled its size from a decade ago.

Google (GOOG), Facebook (FB, Tech30) and Microsoft (MSFT, Tech30) have opened offices in Bogota in recent years. Along with those big-name arrivals, Colombians are also leading their country's tech surge.

The Government reported, Colombia's murder rate is lowest point in a decade. According to World Bank report, Colombia's middle class grew by 50% last decade. The growth is attracting corporate America's attention.

In recent years, Starbucks (SBUX) opened up its first cafe in Bogota with plans to open 50 more in five years. Car companies like Ford (F) and GM (GM) have sales surging in Colombia.

The Fords, the GMs, Mitsubishis are seen Colombia as a growth market. People have money to spend," Companies have got a lot of entrepreneurial spirit in Colombia.

Many say the country's diversifying economy and open policy to foreign investment is the secret sauce to the turnaround. U.S. exports to Colombia have increased nearly 400% since 2003. It's signed trade agreements with America, Canada and Europe. The country is part of the Pacific Alliance, a Latin American trade group that promotes ties with Asia.

Like other regional economies Colombia still relies on oil, coffee and sugar exports to support its economy. But, experts say, the

growth of tech and other service sectors is why American businesses are going to Colombia which is Colombia's booming economy.

The Colombian government and the rebel forces -- called FARC -- reached a peace deal. The two sides had been negotiating for years in Havana. FARC rebels agreed to remove land mines in the Colombian jungle Cuba, after decades of bloody fighting. Colombia's President, Juan Manuel Santos announced that his government has stopped its bombing raids over FARC territory.

This peace progress is another sign that Colombia is turning to normal. "It's just a different country," says one observer. For those people who still have in Colombia, would be shocked to see where Colombia is today."