This paper takes an in-depth look into the culture of the country of Colombia and how it supports the clothing manufacturing industry. It analyzes the political, economic, social and technological structure in Colombia and how they affect the business environment. Colombia is the fourth-largest country in South America whose textile and apparel industry accounts for about 7.5 percent of the manufacturing industry in the country. There have been economic reforms in the country in recent years as the government sought to open the economy for FDI. The changes have been in the form of tariff reductions, flexible exchange rate, financial deregulation and privatization of state companies.
There is political stability in the country with the absence of violence making it an ideal business environment. There have been ongoing peace talks between the government and FARC guerrillas that have changed the political landscape of the country ( Rettberg, 2004) . The peace talks have seen the paramilitary group ceasing all military operations and enhance political stability. However, there are issues of corruption and impunity that affect the business environment of Colombia. The corruption perception index that focuses on bribery, embezzlement, and payment of kickbacks is still high.
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Secondly, the Colombian economy has been experiencing a stable and reliable growth within the past two decades thanks to its market size. The economic growth of Colombia is driven mostly by exports and private consumption, with the government promoting exports by negotiating FTA with other countries and trade regions. The country has strong international relations with other countries as the government moves to establish foreign ties. Its foreign policy has focused on regional alliances and relationships with South and Central American countries, thus supporting the integration of stock markets. The implementation of FTA is expected to create more job opportunities and enhance economic growth ( Rose-Ackerman & Tobin, 2005) .
The government has launched an ambitious reform program looking to strengthen taxation and competitiveness of the economy. It has been focusing on promoting foreign trade, improving accessibility through transport networks to foster regional development and developing the free trade agreements ( Aguilera, 2009) . The implementation of fiscal policies has also made it possible to control the inflation of the country, thus increasing household consumption. At the same time, Colombia has strong macroeconomic fundamentals with economic growth creating millions of jobs and reducing the unemployment rate. The government has also been emphasizing on increased investment by stabilizing the macro-economy and control inflation in the country. While inflation is still significant, there has been an improvement that has led to its reduction. There is also an aspect of economic freedom in the country that makes it easy to conduct business.
Technology has also changed the culture of Colombia as more people move into the e-commerce business. The national digital plan has removed any obstacles to internet access while increasing the number of broadband connections. The government has also invested for 4G to improve regional and international connectivity and foster foreign trade. Technology plays an active role in influencing consumer taste and can support the clothing manufacturing industry.
In essence, the Colombian economy is sufficiently robust to support the growth of the clothing manufacturing industry. The primary drivers of economic growth include a young population, good business environment, and skilled labor. The country has a large young people that are in the fashion industry and can support the clothing fashion industry. A majority of the population belongs to the 15-64 age groups with a median age of 30 years, making Colombia a demographic advantage regarding individuals of the working period. At the same time, the sound monetary policy, favorable weather conditions, and weak external demands have reduced commodity prices and inflation and improve the business environment. The main obstacles to economic growth in Colombia include a poor transport infrastructure that affects its competitiveness as well as the productivity of companies. Poor support restricts access to markets and the ability to exploit economies of scale. The government needs to bolster the infrastructure to achieve steady economic progress and be able to attract foreign investment.
References
Aguilera, R. V. (2009). A comparative analysis of corporate governance systems in Latin America: Argentina, Brazil, Chile, Colombia, and Venezuela. In Corporate governance in developing economies (pp. 151-171). Springer, Boston, MA.
Rettberg, A. (2004). Business-led peacebuilding in Colombia: fad or future of a country in crisis?.
Rose-Ackerman, S., & Tobin, J. (2005). Foreign direct investment and the business environment in developing countries: The impact of bilateral investment treaties.
