Authors:
José Alberto López Rafaschieri and Luis Alberto López Rafaschieri
www.morochos.net
In Colombia, considering the bad results of employment and economic growth, it seems unreasonable the cut of nearly $300 million, announced by President Alvaro Uribe, in government spending for 2010.
Although the government justified the cuts by appealing to the public deficit reduction, it does not match the 5% of GDP; however, the 14% of unemployment rate is a figure that should pressure the Colombian Executive to apply development plans -increase spendings- in order to expand the employment opportunities.
In the same vein, Colombia grew -0.3% in 2009 -the economy needs stimulus- so if the government makes an adjustment to investment programs in 2010, it will cut oxygen to a weakened market.
Uribe and his cabinet should have calculated that we come from a severe international economic downturn: this is a year for recovery, not for cuts. In any case, if things go well in 2010, 2011 may have been the time to apply budgetary constraints.
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