The executive director of ACI Medellín, Cristina Zambrano, said that “in 2024, we achieved milestones that position Medellín as a global leader in innovation and sustainability. We reestablished strategic relationships with countries such as South Korea, Switzerland, and Singapore, and reaffirmed our leadership in networks such as C40, where we promote priority climate and energy projects for the city.”

The technology sector led these achievements with 56% of investment projects, consolidating its position as a driver of development for Medellín. Companies from other parts of the world continue to show their confidence in the city.
Furthermore, companies from countries such as the United States, Germany, Canada, Chile, and Mexico were attracted by its human talent, its articulated ecosystem, and its strategic location.

In international cooperation, $3 million USD was secured to develop 20 projects with Germany and Japan, among others, which focused on sustainability and social and economic development. This commitment was reflected in initiatives such as implementing Urban Protected Air Zones and energy efficiency in public buildings, funded by the C40 Network, with an investment of $250,000 USD.

2024 also marked Medellín’s return to global leadership, with the commitment to the recovery of the Center for the Fourth Industrial Revolution, alongside the World Economic Forum, and the district’s return to the C40 Steering Committee. In addition, the city hosted the World Data Forum, a unique event that attracted more than 3,000 visitors from around the world.

In the educational field, a partnership with Rockwell Automation and the Ministry of Education enabled technology awareness sessions to be held for 3,050 students in Delaware public schools, fostering their interest in the technology industry. On the other hand, the Medellín and its international allies event brought together more than
150 international leaders, business leaders, and industry representatives to learn about the District Development Plan, promoting strategic projects for the city.

With these achievements, Medellín not only strengthens its leadership in innovation and sustainability but also establishes itself as a reliable destination for international cooperation and investment, projecting itself toward growth and social transformation.

Photo credit: City of Medellín.

Specifically, the Toronto-based oil and gas company, which operates oilfields in Colombia, Ecuador and Guyana, said in a statement that it has pledged to preserve and restore 2,500 hectares of biological corridors in “environmentally strategic areas” of influence by 2027. This will protect or grow the equivalent to approximately 2.6 million trees, according to Frontera Energy.

“We are dedicated to implementing actions that promote environmental sustainability, including reforestation, and contributing to a positive climate change solution,” said Orlando Cabrales Segovia, CEO of Frontera Energy. “We are proud to join this global movement as environmentally conscious stewards in our operations.”

The initiative, which was launched by the WEF in Davos, Switzerland, in January 2020, estimates that only half of the six trillion trees that once covered the planet now remain and an additional 15 billion trees are lost each year.

“Trees and forests are a crucial part of the solution to the climate crisis and biodiversity collapse,” said Nicole Schwab, director of 1t.org and nature-based solutions at the WEF. “That’s why companies, civil society and governments must continue to work together for the conservation and restoration of our forests.”

Almost two-thirds of chief economists believe a global recession is likely in 2023; of which 18% consider it extremely likely – more than twice as many as in the previous survey conducted in September 2022. A third of respondents consider a global recession to be unlikely this year.

There is, however, a strong consensus that the prospects for growth in 2023 are bleak, especially in Europe and the US. All of the chief economists surveyed expect weak or very weak growth in 2023 in Europe, while 91% expect weak or very weak growth in the US. This marks a deterioration in recent months (at the time of the last survey, the corresponding figures were 86% for Europe and 64% for the US).

In China, expectations of growth are polarized, with respondents almost evenly split between those who expect weak or strong growth. Recent moves to unwind the country’s highly restrictive zero-COVID policy are expected to deliver a boost to growth, but it remains to be seen how disruptive the policy shift will be, particularly in terms of its health impacts.

On inflation, the chief economists see significant variation across regions, with the proportion expecting high inflation in 2023, ranging from just 5% for China to 57% for Europe. Following a year of sharp and coordinated central bank tightening, the chief economists said they expect the monetary policy stance to remain constant in most of the world this year. However, a majority expect further tightening in Europe and the US (59% and 55%, respectively). They noted that 2023 is likely to involve a difficult balancing act for policymakers between tightening too much or too little.

“With two-thirds of chief economists expecting a world-wide recession in 2023, the global economy is in a precarious position. The current high inflation, low growth, high debt and high fragmentation environment reduces incentives for the investments needed to get back to growth and raise living standards for the world’s most vulnerable,” said Saadia Zahidi, Managing Director at the World Economic Forum. “Leaders must look beyond today’s crises to invest in food and energy innovation, education and skills development, and in job-creating, high-potential markets of tomorrow. There is no time to lose.”

Multiple headwinds are also expected to exert a drag on business activity in 2023. Nine out of 10 respondents expect both weak demand and high borrowing costs to weight on firms, with more than 60% also pointing to higher input costs. These challenges are expected to lead multinational businesses to cut costs, with many chief economists expecting firms to reduce operational expenses (86%), lay off workers (78%) and optimize supply chains (77%).

More broadly, the chief economists expect the global landscape to remain challenging for businesses – 100% of respondents expect global geopolitical trends to continue redrawing the map of global economic activity along new geopolitical fissures and fault lines. This wider economic shift will likely reverberate through trade, investment, labour and technology flows, creating myriad challenges and opportunities for business.

One positive signal is that supply chain disruptions are not expected to cause a significant drag on business activity in 2023.

While the Forum’s 2023 Global Risks Report recently found the cost-of-living crisis to be among the world’s most urgent risks, the chief economists see the crisis potentially nearing its peak, with a majority (68%) expecting it to have become less severe by the end of 2023. A similar trend is evident in relation to the energy crisis, with 64% expecting some improvement by year end. In addition, survey respondents highlighted a number of potential sources of optimism at the start of 2023, including the strength of household finances, growing signs of easing inflationary pressures and continued labour-market resilience.

The Peso will remain in focus this week, it closed last week at $4,688. On Friday it did move above $4,700 but there appears to be little appetite to remain at those levels in the face of a China reopening and oil trading at $85. When the Peso was above $5,000 President Petro pleaded with people not to take their money out of the country, those who did are currently badly offside.

Speaking of Petro he is off to Davos this week to discuss a variety of subjects at the World Economic Forum including the climate crisis, sustainable energy and Total Peace.

The ELN will sit down with the Colombian Government tomorrow in order to try and get the peace process back on the rails. A 6-month truce was announced by Petro in late December but the ELN then said they hadn’t agreed. Hopefully this week we will be back on track.

On the macro front this week, it will be busy with export & import data as well as the latest data from the real estate sector – again analysts will be scanning through the numbers for hints of an economic slowdown.

An interesting article in the FT suggesting that the Gilinski efforts to buy stakes in the GEA companies is going to end up in the courts as opposed to a continuation of the tender processes – being Colombia where every third person appears to be a lawyer, that is likely going to be a lengthy process, the question is who that might benefit most?

Please find below the LinkedIn Video:

https://www.linkedin.com/posts/rupert-stebbings-927b6316a_colombia-economics-activity-7020718256755757056-Ja0g?utm_source=share&utm_medium=member_desktop

That is it for this morning – have a good week

Roops

As opposed to the 2020 story, which was completely overshadowed by COVID with both government and companies explaining how they had survived the pandemic and what were the next steps, this time there was a more optimistic tale to tell. Colombia has bounced back economically at an unexpected rate with analysts constantly upgrading their GDP targets for both 2021 and 2022 – on a global basis the country looks set to be a top 10 performer this year.

This is now being manifested with a change in the interest cycle as inflation slowly rises; however, within reason, this is a good problem to have. On top of this the 2022 budget has now been approved and the problematic tax reform is now in place – in fact a lot of positive messages to share.

Within the event the BVC traditionally hosts a panel however this time we chose to go non-traditional. As opposed to the blue-chip names who have had so much digital exposure during the pandemic, we opted to take a look at the Brave New Digital World that is rapidly arriving on Colombia’s doorstep.

Rupert’s opinions & analysis as an independent expert contributor are his own and not necessarily those of Finance Colombia or the BVC.

The panel featured Rappi, Lulo Bank, TRII and our own a2censo discussing disruptive behavior in their respective sectors, whether it be Digital Banking, Trading Platforms or Crowd-Funding. The important message from all four entities was that the priority is the end user, be it retail or institutional – it was good to hear that the Superfinanciera are on message. There was a call for more government support in the field of open banking but in general there has been good support.

But of course, these four entities are simply the tip of an iceberg that is emerging quickly from the Colombian waters. Even before the World Economic Forum named Colombia (Medellin) as the LATAM center for the 4th Industrial Revolution, this country was a hub for technology development. A few years ago I had occasion to meet with one of the world’s leading satellite suppliers on a visit to Medellin, I asked if there was any interest in Colombia in making a purchase – the answer was revealing:

“They have no budget to buy one but in reality, this is one of the few countries I have visited that are capable of building their own satellite”

Over the past two years we have seen a host of new names appear in the Colombian digital ecosystem – perhaps best known is Nubank but others are constantly appearing such as Iris Bank or Avista. I even had occasion to sit down recently with a ‘Second-Life’ company dedicating themselves to education.

“…in reality, this is one of the few countries I have visited that are capable of building their own satellite”

As mentioned above, the challenge still for many is ‘Open Banking’ – the willingness for institutions to share data for the good of the end client but this is something that is not confined to the banking sector.

At a time when Brazil has thousands of independent advisers creating a cross pollination of product for the man on the street, in Colombia there is still resistance to such moves, open architecture is a watchword in many markets, but for the time being it remains only an aspiration in Colombia.

Nonetheless these are exciting times for the Colombian digital universe, be it banking, trading, libranzas or crowdfunding, the world is changing, and the end beneficiary will be the clients, either directly via the new entities or indirectly as the legacy actors are forced to adapt.

That is about it for today – remember these are just themes that jump out at me – please refer to your local analyst, economist, salesperson or soothsayer for more details.

My regards to all,

Roops

According to the survey, 55% of Colombians support more trade barriers to imports of foreign goods and services, and while a majority of 54% of Colombians still agree that “Overall, globalization is a good thing for my country,” that number is down a whopping 20 points from the last time the survey was taken in 2019.

The decline in positive views about globalization across the 23 countries averages 10 percentage points. It is steepest in Mexico, Colombia, Chile, and Peru.

Trends show 75% of those surveyed agreeing that expanding trade is a good thing, yet almost 40% believe there should be more trade barriers to limit imports of foreign goods and services. Notably, 36% are neutral or have no option.

Sean Doherty, Head of International Trade and Investment at the World Economic Forum said: “International trade and investment can grow economies, reduce poverty, improve healthcare and empower people worldwide. However, changes caused by trade can be disruptive and painful, and can sometimes undermine local reforms. The seeming contradiction in survey results is understandable: people want more of the good and less of the bad of globalization. To grow the gains and achieve fair outcomes for all, governments need to listen to local priorities and work together on policies related to the environment, jobs, tax, the digital economy and other issues which reach across borders.”

Only 1 in 2 are positive about globalization – down in every country by an average of 10 points since 2019. France, Russia and Belgium have the lowest confidence in globalization, while Malaysia, South Africa, Peru, Brazil and South Korea have the most.

About the survey

These are the results of a 25-country survey conducted by Ipsos on its Global Advisor online platform. Ipsos interviewed a total of 19,017 adults aged 18-74 in the United States, Canada, Malaysia, South Africa, and Turkey, and 16-74 in 20 other markets between March 26 and April 9, 2021.

Sustainable Development Impact Summit 20-23 September
These issues will be addressed at the Forum’s upcoming Sustainable Development Impact Summit. The virtual four-day event is hosted alongside the United Nations General Assembly and brings together global leaders from business, government, and civil society. It will focus on new technologies, policies and partnerships to advance cooperation, accelerate progress, and highlight tangible solutions to our global challenges. Find out more.

Headline image: Image by Tony-Media from Pixabay

“Latin America is home to some of the most exciting initiatives in smart cities today, but that success is not evenly spread,” said José Manuel Restrepo, Minister of Trade, Industry and Tourism of Colombia. “Colombia is honored to take on the task of coordinating the regional activities of the G20 Global Smart Cities Alliance in Latin America, so that cities across the region can benefit from both global and regional knowledge exchange.”

José Manuel Restrepo, Colombia’s Minister of Commerce, Industry & Tourism.

Set up in Medellín and Mumbai, the networks will be hosted by the Centers for the Fourth Industrial Revolution in Colombia and India, and efforts will be supported by partners of the World Economic Forum and the Center for the Fourth Industrial Revolution (C4IR) Global Network. The roll out follows the successful establishment of this model in a number of Japanese cities, led by the Center for the Fourth Industrial Revolution Japan.

Smart city technology improves sustainability, resiliency and quality of life, but about 50% of the world’s urban population live in smaller or medium-sized cities. With cyberattacks on municipalities rising and digital technologies becoming central to economic competitiveness, these cities need to invest in new technologies, but have less capacity than their larger global counterparts to implement the ensure effective governance.

Cities in Latin America and India will be invited to meet regularly to analyze smart city policies and will receive technical support from the Forum’s network of global experts.

Cities in Latin America and India will be invited to meet regularly to analyze smart city policies and will receive technical support from the Forum’s network of global experts. Founding members of the Regional Alliance for Latin America are Bogotá, Colombia; Brasília, Brazil; Buenos Aires, Argentina; Córdoba, Argentina; Medellín, Colombia and Mexico City, Mexico. Founding members of the National Alliance for India are Bengaluru, Bhopal, Faridabad, Hyderabad, Indore, Kohima, Mangalore, Raipur, Shillong and Thane.

“When we launched the G20 Global Smart Cities Alliance during Japan’s presidency, we could see city governments asking for global best practices that would allow them to compete in a global, tech-driven economy. But we also knew that smaller cities would struggle to implement these practices without local support,” said Chizuru Suga, Head of the Centre for the Fourth Industrial Revolution Japan. “That is why we launched the global alliance in parallel with a national initiative to unite cities across Japan for adapting and sharing global best practices.”

“For over a year now, Kaga City has been sharing knowledge with 12 other cities to make sure we have the policies we need to deploy technology quickly and safely,” said Riku Miyamoto, Mayor of Kaga City. “We can learn from global best practices and still get a local perspective on issues that matter to our residents.”

“India already has one of the world’s most ambitious smart city programs, driven by the Government of India’s Smart Cities Mission,” said Purushottam Kaushik, Head of the Centre for the Fourth Industrial Revolution India. “Now with input from the G20 Global Smart Cities Alliance, Indian cities will have access to the world’s foremost expertise in smart city policy-making.”

“India’s Smart Cities Mission is dedicated to being at the forefront of policy innovation in data and technology for the urban sector. With the launch of the National Urban Digital Mission, we hope to scale new heights,” said Kunal Kumar, Joint Secretary, Ministry of Housing and Urban Affairs, Government of India. “The G20 Global Smart Cities Alliance being extended to regional alliances in India, led by the World Economic Forum, is a pathway in that direction.”

Here in Colombia, Cartagena has had a notoriously corrupt city administration. Newly elected Mayor William Dau was voted in on an anti-corruption platform and has quickly made some very powerful enemies taking on criminal structures. Bogotá’s political/civic culture can be described as “battle royale” where it is everyone against everyone: Private sector vs. public sector, north side vs. south side; each new administration seems to try to undo and reverse everything that was done before. Many remember former mayor and now Senator Gustavo Petro’s garbage fiasco where trash piled up on the streets of Bogotá in 2012 as Petro unilaterally canceled contracts with sanitation contractors—without a viable plan to replace them. Corrupt contractors are still in jail over the “Carrusel de Contratos” scandal where politicians and corporate thieves conspired to rob millions during the construction of Avenida El Dorado, the main thoroughfare leading to Bogotá’s international airport. Petro kept the fares on Bogotá’s Transmilenio bus system artificially low to buy popularity, creating an operating deficit and financial crisis that the following administration would have to fix, and automatically vilifying whoever would follow and have to make unpopular, drastic corrections.

On multiple occasions, Finance Colombia has reached out to Mayor Daniel Quintero for comment (on various issues), who through his press secretary has refused comment or reply.

On the other hand, Medellín’s professionally managed metro runs on-time, is clean and safe, and used by riders of almost every socioeconomic stratum. Medellín has continued to win international accolades throughout the years, hosting the World Economic Forum’s Latin America event in 2016, several UN events, and many delegations from foreign municipal governments to learn best practices. Many visit the city’s Ruta-N business and entrepreneurship incubator that can be credited, along with ACI (Agencia de Cooperación Internacionál), the city’s investment promotion agency with bringing countless jobs and investment to the Aburrá Valley; home to Medellin and its immediate suburbs like Envigado, Sabaneta, Itaguí, and Bello.

The city is home to several multinationals: Bancolombia, Colombia’s largest Bank; Grupo Sura, an insurance, investment & health care giant; Cementos Argos, which as a cement producer is the 4^th largest in the United States and exports to 27 countries; Nutresa, which is like a Latin American Unilever or Nestle, and newer companies like Viva Air. More precisely in the Medellín Suburb of Rionegro, the low-cost airline operates routes throughout Colombia & Peru, to and from the US, and is currently in expansion mode despite the COVID-19 Pandemic.

EPM Headquarters Building in Medellín’s Plaza Mayor

Another multinational with a very unusual business model is EPM, Empresas Públicas de Medellín. The public utility is responsible for sanitation, sewers, water, electricity, and natural gas in Medellín and much of the surrounding suburbs and rural areas. In a joint venture with global telecommunications provider Millicom called Tigo Une, it provides faster residential internet service than is available in many US cities. Earlier this year, they purchased the formerly insolvent utility networks of much of Colombia’s Caribbean coastal region. EPM already owns utility operations outside of Colombia, with assets of the multibillion-dollar company stretching from Chile to Mexico. EPM, though it does issue debt on international markets is not a publicly traded company. Neither is it a municipal utility. It is a separate company with professional management and (up until now) a board of directors to provide corporate governance, but with the city of Medellín as the sole shareholder. In the form of dividends, EPM provides almost 30% of Medellín’s municipal budget, but the key to this arrangement has been that it operates as a separate entity, expressly not part of the municipal administration, but of course with the city’s input. The mayor by statute is the chairman of EPM’s board of directors and has prerogative to appoint the CEO. As shareholder, the city also appoints board members.

A breath of fresh air?

Many in Medellín were pleased to see Daniel Quintero elected last year as a “breath of fresh air” and change from the traditional power families that have controlled politics, especially as he defeated Alfredo Ramos, son of a former governor and member of Centro Democrático, the party of “Uribistas,” personal acolytes of former President (now under house arrest for witness-tampering charges) Alvaro Uribe. With Medellín & surrounding Antioquia Uribe’s home turf (he was both mayor of Medellín & governor of Antioquia before becoming president of Colombia), it was something of a surprise that this local who was raised by a single mother who died when he was just 14 in a mostly poor neighborhood (Tricentenario) won the election. As a youth, Quintero worked as a street vendor struggling to put himself through college. No one knew quite what to make of him.

Quintero had politicked at different times as a member of Colombia’s Liberal Party, Conservative Party, and Green Party before establishing the “Tomato Party” as a publicity stunt to get himself noticed (see the headline photo). He gained attention by throwing tomatoes at pictures of politicians and people he didn’t like, such as Alvaro Uribe and then President Juan Manuel Santos, though he decided to support Santos’ re-election in 2014. He was then rewarded with the political appointment of running InnPulsa, Colombia’s national entrepreneurship promotion agency, then becoming vice-minister for ICT (Information & Communication Technologies) under Santos. In the last presidential election, Quintero initially supported mainstream liberal candidate & peace negotiator Humberto De La Calle, before switching his support to controversial former mayor of Bogotá Gustavo Petro’s (mentioned above) candidacy.

So no one knew what to expect, though it is clear they wanted more of the vice-minister of technology or InnPulsa director than the tomato throwing stunt man who once handed former EPM general manager Jorge Londoño a chunk of cheese (nonverbally calling him a rat).

A whiff of Limburger—stinky cheese.

Finance Colombia being primarily a business and finance publication rather than a political journal, heard some low intensity criticism of appointments that Quintero had been making in the city administration and the way he was making them, but did not actively pursue the stories at the time. Quintero made some other moves that seemed politically silly, such as writing the Cuban government to ask for doctors to help with the COVID-19 pandemic. Regardless of the merits of Cuban medical missions (which are very dubious), it is inconceivable that the current national government would permit such activity, and the action could only embarrass the mayor, which it did. Finance Colombia chalked it up to benign political inexperience.

The mayor also fought back a scandal where he was accused on social media of inappropriate sexual conduct before he was mayor, but even more ominous was his reaction to the press, which brought condemnation from Colombia’s Foundation for Press Liberty, FLIP:

“FLIP was able to document that Quintero personally pressured media executives and pointed out journalists as being opponents of his administration as a way to avoid questions about matters on which he must be held accountable…In events related to this situation, administration officials tried to force national and local media to improve the image of the mayor in exchange for advertising. Telemedellín (City government’s official TV channel) officials asked W Radio to rectify a truthful publication and also that the media agree to subscribe and publish a joint statement with Telemedellín to disseminate as true a situation that did not correspond to reality,” said the journalism rights defense group.

In other words, “I will buy advertising with your paper if you help me bury this scandal.” FLIP also denounced the mayor for pressuring newspaper El Espectador to block coverage of the scandal. According to FLIP, and El Espectador’s own account of the misdeeds, the publisher, Fidel Cano, responded by sending the questions to the mayor that his reporters had been trying to ask. “The mayor of Medellín assured the director of the newspaper that he would take legal action if the publication affected his reputation” (he never did).

All this so far and the mayor has served only his first 8 months of a 4-year term.

The mayor’s official press conference, canceled at the last minute, crowing “Why Medellin is the world’s standard in the assertive management of Covid-19” as cases in the city began to skyrocket

On June 27, the Quintero administration scheduled a press conference titled “Why Medellín has one of the lowest contagion and mortality rates in Latin America?” scheduled for July 2^nd, and led by Daniel Quintero himself, backed by Andree Uribe, Medellin’s Secretary of Health, Alejandro Arias, Medellín’s Secretary of Economic Development, and Eleonora Betancur, the director of ACI Medellin. The day before the press conference, it was abruptly canceled. It seemed the mayor wanted to take credit for good news but avoid bad news. The headlines that day in El Colombiano, Medellín’s largest daily? “100,000 cases of Coronavirus in Colombia, Where are we going?” and with 40% of ICU units full, “Doctors of Antioqua appeal for total & obligatory quarantine.”  The last weekend of August the ICUs are now 70.79% full. The day the press conference was to be held, a headline in El Colombiano announced a coronavirus outbreak with 36 infected in the La Paz prison in Medellín’s southern suburb of Itaguí.

The cases—and deaths were just beginning to skyrocket and two months later Colombia has one of the world’s worst mortality rates on a trailing 7 day average. According to the Colombian government, Antioquia department (Medellín is the only large city in Antioquia) alone has had 77,709 cases so far. Colombia now has over 18,000 deaths from COVID-19, most within the past two months. 1,603 in Medellín & surrounding Antioquia.

Last month, EPM general manager Álvaro Guillermo Rendón announced a memorandum of understanding with InnPulsa, the same national government agency formerly run by Quintero himself, that would, if more than just talk, “convert EPM into a laboratory of smart cities, the 4^th industrial revolution, and the orange economy.” All well and good (maybe, but that doesn’t sound like the function of a utility), but what the public did not know was that this fundamental change in corporate strategy and negotiations with the national government were worked out without the knowledge, discussion or approval of the company’s board of directors. EPM was being treated not as a separate entity but part of the municipal administration.

OFFICIAL STATISTICS: As of August 28th, Antioquia had 77,709 total COVID-19 cases, 1.603 deaths and hospital intensive care wards were over 70% of capacity over 80% of Antioquia’s cases are from metro Medellín.

The $2.7 billion dollar WTF

On August 10, EPM sent out a press release (and the mayor tweeted) that EPM would be initiating legal proceedings in the amount of  approximately $2,7 billion US dollars against the consortiums responsible for construction of EPM’s troubled Hidroituango dam that suffered catastrophic setbacks due to unexpected flooding in 2018 and design flaws that were thus revealed. Whether such legal action is a good idea is debatable: On one hand there certainly were defects that have cost the company millions and delayed the project by over a year. On the other hand, litigation could potentially bring the project to a halt, as EPM is still depending upon the parties it is suing to complete the project before certain deadlines, or it faces economic penalties in power generation commitments of over $150 million USD. It is also far from certain that EPM would prevail in its legal crusade against all the parties named, some of which have nothing to do with the construction defects that led to a tunnel blockage during construction.

The shocking thing is that Mayor Quintero along with Rendon and Alexander Sánchez Pérez, EPM’s vice president for legal affairs, declared this multibillion dollar action without discussion, input or even knowledge of the company’s board of directors!

The next day, the entire board of directors, except for Quintero himself, resigned.

Soon Quintero tried to justify his actions saying “there was no time” and he had to act, but he had already been mayor for 8 months and ran on a campaign of rectifying the Hidroituango situation (remember his cheese stunt with the former general manager?) and so was aware of the situation. If not, he had 8 months to be brought up to speed. At any rate, without board ratification, such actions have dubious legal force, and as bad or worse, prove a lack of corporate governance at EPM and direct political control. CEO Rendón clearly answers not to the board of directors but to a politician.

One day after the board of directors of EPM resigned, the entire board of directors of Medellín’s storied Ruta-N also resigned, along with its executive director, Juan Andrés Vásquez. Ruta N was already under its third executive director in Quintero’s 8 month old administration. Vásquez learned that Quintero was replacing him after Quintero announced Trump-style, in the media, saying he “had drifted away from the administration.” Like EPM, Ruta-N is not a city agency directly under the administration, but a public-private partnership with professionalized management and governance, and internal merit-based personnel policies.  Sources inside Ruta-N say that Quintero had been trying to circumvent the qualifications-based hiring of the business incubator to install friends and supporters into sinecures. People inside both organizations indicate that morale is at bottom.

Beverage giant Postobón rescinded its financial support of a health initiative spearheaded by Ruta-N saying it no longer had confidence in the entity’s governance. Postobón had already spent $4 billion pesos on the initiative to build respirators for coronavirus patients but said it would continue to donate, just elsewhere after the board resignation.

That same week, in reaction to what it called “a deterioration of corporate governance controls at the company,” global ratings firm Fitch downgraded EPM’s credit as a bond issuer to one notch above junk bond status. In a statement, the foreign, independent agency stated:

“Fitch believes recent actions taken by the company are contrary to the Governability Agreement, signed on April 23, 2007, between the City of Medellin and EPM’s management, in which the municipality agreed to respect the autonomy of EPM as an industrial and commercial enterprise of the state and to act exclusively through the board of directors.”

Flailing about

The mayor scrambled to assemble a new board of directors for EPM, which as an issuer of debt in the international capital markets, must answer to institutional bondholders. Over the ensuing days, Quintero variously announced that Claro Colombia CEO Juan Carlos Archila would join EPM’s board (creating a conflict since Claro competes with Tigo Une), Grupo Santo Domingo’s Alberto Preciado,  Luis Fernando Rico, formerly of Isagen, another Colombian utility, and Sandra Suarez, the former general manager of newsweekly Semana all rejected Quintero’s oddly public nominations. Did he not confirm with them beforehand if they would accept the appointments, or did they publicly reject the nominations as a rebuke to the mayor?

Meanwhile, EPM’s board representative to Tigo Une, Federico Arango Toro also resigned in a public letter saying he wanted no part of Quintero’s administration.

Banks and insurers are already turning their back on EPM, citing a lack of control at the organization. EPM had to admit that certain loans and lines of credit had been shut off after the board resignations. An internal document seen by Finance Colombia stated that the firm may have difficulty finding or renewing certain insurance coverages.

In the midst of all this, Colombia’s human rights tribunal set up as part of the 2016 Peace Accords, the JEP (Special Jurisdiction for Peace) has subpoenaed general manager Rendón under threat of arrest for ignoring during his 8 months as the utility’s legal representative, a year old subpoena for documents regarding possible obstruction of the search for the remains of victims of violence during the construction of Hidroituango, before Rendón’s appointment.

Medellín’s city council is on scheduled recess, but they have publicly asked the mayor to reconvene a session to discuss the governance crisis. Under law, (article 23, law 136 of 1994), they can only formally convene during a recess at the mayor’s request.

Labor unions & business community united

EPM’s largest labor union, SINPRO has called for a protest on Wednesday, September 2nd, for everyone in the city to turn out their lights for 30 minutes at 8pm, and for workers and the public to gather outside of the company’s headquarters in Plaza Mayor at that time for a rally in defense of EPM.

“When Medellín turns off, we hope that our leaders will understand that this is everyone’s problem, and that a city shut down doesn’t serve anyone. If EPM is in crisis, it doesn’t just shut down the city, it shuts down the country,” said union President Olga Lucia Arango.

The union is also demanding explanation of EPM general manager Rendon’s alleged private gym and luxury remodel during a time the company is under self-imposed austerity orders.

Civic leaders, executives, and nonprofits from across the region have begun to organize in reaction to the mayor, forming on August 25, a veeduría, or citizen’s oversight group ”made up of people with no particular economic interests in either EPM or the mayoralty that will work to take care of the heritage of the city and the interests of all Medellinenses.”

The initiative, called “Todos por Medellín” (Everyone for Medellín) is backed by over 40 groups, including the Chamber of Commerce of Medellin (in Colombia, chambers of commerce perform a quasigovernmental function, for example, as the registry of corporate and nonprofit organizations, and their articles of incorporation), the Intergremial committee (a grémio is a trade group or business association), and Proantioquia, the region’s primary civic benevolent foundation.

The mayor gets combative

Last Thursday, Mayor Quintero showed no contrition, but tried to dismiss the concerns as political machinations. “The oversight is fine, but we need oversight agencies to see everything. They didn’t see a lot of things, for example, $17 trillion of debt in the last 15 years. How come they didn’t see Orbitel, UNE, Antofagasta, Porce III and Hidroituango? A mayor appears to them who responds, has character, then a lot of politicians come out to do oversight. The veeduría is welcome but we are going to review everything. That the mayor is the one who manages the networks and they govern? No!” he said in a press conference.

Taking a page from the playbook of his preferred presidential candidate and apparent ally Gustavo Petro, who had a disastrous term as mayor of Bogotá and was temporarily removed from office by the national government, Quintero frames it all as a nefarious plot against him (does he think international ratings firm Fitch is in on the plot?)

“There are some groups full of politicians who want to carry out processes to revoke the mayor, that have been moving for a long time, we are ready, we have no problems in showing results and what we have done. They are worried because a long time ago they did not meet an independent mayor, a mayor who is not beholden to politicians or businessmen, but to the people,” said Quintero.

Navegamos entre fuerzas oscuras que se resisten al cambio. Con fe y sin miedo seguiremos adelante con transparencia, honestidad y contra la corrupción y la politiquería.

— Daniel Quintero Calle (@QuinteroCalle) August 26, 2020

CAPED CRUSADER? Quintero seems to fancy himself a hero navigating “between dark forces that resist change. With faith and without fear we will continue forward with transparency, honesty, and against the corruption and politicking” he tweeted last week after learning of the group Todos por Medellín.

Analysis

Quintero’s plan seems to be to blame his woes not on his own actions, but on former President Alvaro Uribe. Uribe’s reputation has steadily declined since his presidency, and where he was once seen as the man who rescued Colombia from communist rebels and drug cartels, his legacy has steadily soured as an avalanche of allegations and evidence piles up that tie him directly to paramilitary death squads during his time as governor, and indirectly to narcotraffickers and civilian massacres committed during his presidency. As if that were not enough, he is currently under arrest and confined to his northern Colombia ranch on charges of witness tampering, attempting to frame leftist senator Ivan Cépeda, a nemesis of Uribe in the Colombian senate.

Quintero wants to blame Uribe & his Centro Democrático for his woes, but since Uribe founded the party in 2013 it has never won a mayoral election in Medellín. The last Uribe supporter to hold the office was Luis Pérez from 2001-2004. Perez later abandoned Uribe for President Santos, working in 2015 as his regional campaign coordinator to defeat Uribe’s chosen presidential candidate Ivan Zuluaga.

Blaming the Uribe bogeyman may be a good tactic after the damage that has been done, but those aghast at recent developments extend far outside Uribe’s sphere of influence. Uribe did tweet support for the citizens movement, and Petro in support of Quintero, but opponents of Uribismo are also speaking out against Quintero. Former mayor of Medellín (2004-2008) and governor of Antioquia Sergio Fajardo immediately wrote a letter of concern, on August 12, admonishing Quintero’s actions.

Medellín’s previous mayor, Federico Gutierrez, nicknamed Fico, surprisingly upset Uribe’s candidate Juan Carlos Vélez to win the mayoralty in 2016. His letter, also dated August 12 is even more blunt. “EPM & Medellin are in danger.”

Letter from former Medellín Mayor Federico Gutierrez: “EPM & Medellín Are In Danger”

“The discourse of Quintero is based on lies. He talks of social struggle, of a class struggle, the same ideas of Gustavo Petro, who furthermore was the first to celebrate and support the mayor’s decision to deinstitutionalize EPM, which obliged the board’s renunciation. But look at the contradictions: What kind of social struggle destroys the motors of progress? EPM is that very thing, an incalculable help for the most vulnerable communities, a tool to breach social divides.” – excerpt from Federico Gutierrez’s letter.

Paisas, as people from Medellín & Antioquia call themselves tend center to right on the political spectrum and have less appetite for the far-left adventurism much more popular in Bogotá. Marxist talk like “class struggle” doesn’t go over so well here. Before this editor started Finance Colombia or even moved to Colombia, representatives from the city (going back to before 2013) would call and extend invitations: “Come to Medellín, let us show you what we are doing” with genuine pride. At the time, this editor was an analyst covering the Latin American services sector for a Connecticut-based research firm. “Look, we want to show you the good things we are doing!” Apparently with no other motivation beyond civic pride and attracting investment and positive attention. “We are building the Metrocable system” a network of cable cars extending far up into low income hillside neighborhoods on the valley walls. “We are building it so everyone can participate in our economic growth,” they said, beaming with pride. Not politicians or political appointees, but entry-to mid-level civil servants.

After moving to Colombia, first to Bogotá and launching Finance Colombia, the outreach didn’t stop. Medellín kept calling. “Come see what we are doing!” In 2015, Finance Colombia published “Social Inclusion: The Secret Sauce To Medellín’s Incredible Renaissance.”

They were going about it pragmatically, person to person, neighborhood to neighborhood, but without any ideological polemics or Marxist-Leninist babbling. There was no talk of class struggle, no attack on the city’s beloved institutions, whether well-established like EPM or new innovations like Ruta-N. Generally, each succeeding administration handed the keys over to the next politely, and with decorum.

One thing that unites Paisas, especially those in Medellín is the progress the city has made, going in less than 3 decades from one of the most dangerous on earth to an international showcase. Startups and international businesses have entered Colombia by first setting up operations in Ruta-N then moving out into larger spaces as they gain a foothold in the country. Get in a taxi and instead of trying to rip you off like in some parts of the country, if the driver realizes you are a foreigner, they will inevitably ask “What do you think of Medellín?” and beam with pride like you just presented them their firstborn child if you have something nice to say.

When protesters rioted in Bogotá last November, partially destroying their own transportation infrastructure and battling with police, Paisas marched peacefully. A few vandals were quickly confronted by peaceful protesters, and students came to undo the defacing they caused.

Medellín has built a strong credit rating in international markets for municipal debt, and EPM has enjoyed an investment grade credit and risk profile. There has been a level of peace between labor and employer, business and government rarely seen elsewhere in Latin America. Is it run by saints? Of course not. But that is precisely why the checks and balances of good governance are important, and Quintero seems to either not understand this, or have other priorities. EPM provides the city with more than electricity, water, and natural gas services. The international corporation provides almost 30% of the city’s revenue by way of operating profits. The fortunes of every residence and business in the Aburrá Valley (where Medellín is the largest city) are tied to EPM. The vitality of the city’s foreign investment attraction is tied to Ruta-N. Investors, both institutional and global-minded individuals are attracted by collaboration and progress, and repelled by scandal, conflict and controversy.

Being a crusader is easy. Throwing tomatoes at pictures is easy. A child can do it. Governing is complex and requires accountability. Medellín Mayor Daniel Quintero is sawing at the very foundations of Medellín’s success, by attacking its governance and institutionalism. It may very well be a good idea to take legal action against the consortiums that are (still) building the Hidroituango dam. But to launch a multibillion-dollar lawsuit behind the back of your own board of directors? No deliberation by the body designed to deliberate such fundamental issues? Are we seeing dictatorial tendencies, the likes of which one would expect from a Banana-Republic Caudillo?

When criticized, the new mayor goes into attack mode. Seeing everyone from the labor unions to civic leaders as a cabal “out to get him.” This editor remembers seeing such behavior at the beginnings of Chavismo in Venezuela. It is also Donald Trump’s style. Attack someone who is offering constructive criticism and they often will instinctively get sidetracked trying to defend the legitimacy of their criticism, allowing attention to be shifted from the original critique, no matter how legitimate.

“Ah, he’s going after the elites,” one more populist journalist friend said to this editor, when the conflict between former directors and the mayor became public. “Who the hell do you want running a multibillion-dollar international energy company?” this editor replied. “They had damn sure better be elite and know what they are doing!”

The former EPM board had directors like Javier Gutiérrez, who was former president of oil giant Ecopetrol, and general manager of energy company ISA; Manuel Mejia, former general manager of Colombiana de Comercio (distributor or manufacturer of brands in Colombia such as AKT motorcycles, Foton trucks, Castrol lubricants, Royal Enfield motorcycles, and Kalley appliances); Andrés Correa, formerly part of the insurance multinational SURA; and one of EPM’s own retired executives: Jesús Aristizábal Guevara, a civil engineer.

The new EPM board of directors is notable for having a preschool teacher, community activists, former politicians, lawyers, but no large company leadership experience. The mayor did nominate a few, but they all refused. Now, the mayor’s new board will have to navigate the $2 billion USD litigation that he unilaterally launched, and the war he has started with what seems the entire political, business, civic, and even labor community of Medellín. What do they know about international capital markets and the mechanics of bond pricing and currency risk? This editor wishes them luck. We want to see EPM succeed and Medellín do well. The only way this will happen is if they make drastic course corrections. It is not too late for the mayor.

On the other hand, we are only 8 months into a four-year mayoral term. This editor has never seen so many disparate people and institutions unite since the 9/11 attacks in the US. There, the population at least temporarily united behind then President Bush. In August, 2020, sectors from labor to enterprise are all uniting against Quintero. He is at a juncture in his mayoralty. He can attempt to reconcile, or he can take Gustavo Petro’s style book and fancy himself the martyr and class-struggler that everyone is out to get.

Mayor Quintero talks about making Medellín what he calls “software valley,” but foreign investors will not locate to a destination mired in conflict that can’t keep its lights on. He was elected without a power base, to some degree a rejection of the Uribista alternative. He clearly views the civic dissatisfactions with his moves as an Uribista plot. Surely they are included in his menagerie of new opponents, but they weren’t the ones who led to a loss of $30 million USD in EPM’s outstanding bond value in the space of 3 days. There were no Uribistas behind Wall Street firm Fitch deciding to lower the utility’s credit ratings. The only “forces of darkness” Fitch cited was Quintero’s “deterioration of corporate governance controls at the company.”

In this editorial, Finance Colombia calls on the mayor to rectify his course and work in a more collaborative, professional and transparent spirit with all the city’s stakeholders, or alternatively on Paisas to democratically and civilly protect the trajectory of amazing progress the city has made in the last two decades. Choose quiet progress over loud and bombastic stagnation. Cooperation over tomato-throwing confrontation.

Medellín Mayor Daniel Quintero (Photo courtesy Alcaldia de Medellín)

Finance Colombia: So we are here with Catalina Restrepo. What is your title formally?

Catalina Restrepo: Yes, the Executive Director of the Agency for International Cooperation and Investment for Medellín and the Metropolitan Area, but “ACI Medellín” is nicer (smiles).

Finance Colombia: Right, and how much time do you have in this role?

Catalina Restrepo: It’s been one year and six months.

Finance Colombia: And what did you do before? Tell me a bit about your story. Are you a local or from another part of Colombia?

Catalina Restrepo: I was born and raised in Medellín. I studied high school here in the city of Medellín, and then when I graduated I went to the United States. I went to Minnesota, first to learn English, although I was already in a bilingual school, and then I decided to stay to do my professional studies there in Minnesota. I did my Bachelors in Business Management, and I did a minor in French.

Finance Colombia: University of Minnesota?

Catalina Restrepo: University of Saint Thomas. Then I had the opportunity to enjoy the Minnesota cold.

We can’t fall into the trap that “yes, Medellín is the best” no. Medellín is the best for us who love it very much, but we all have challenges, we all have to learn, so let’s say that it’s still surprising, that when they come here they come as with “could it be? Is it not?” And when they get to know us they say “oh well, yes!”

Finance Colombia: Yes, it’s like the coldest state except Alaska.

Catalina Restrepo: Of the United States. The nine months of winter, and the three of summer, but I have eternal gratitude to the Twin Cities (Minneapolis, St. Paul) because I was really happy while I was there, then I had the opportunity to work in finance in the United States, then I returned to Colombia, and returned to Medellín. I worked at the Museum of Antioquia as Director of Events, then I went to Bogotá, worked in the Presidency of the Republic for four years, after that I worked for the Governor of Antioquia, then to the Ministry of Commerce. I worked in the World Bank in Bolivia on all issues of competitiveness indicators, and finally I worked in SENA, and then I arrived at the Mayor’s Office.

Finance Colombia: Wow, fascinating.

Catalina Restrepo: So during all that time gaining work experience, I continued my studies; I studied a specialization in Communications and Corporate Social Responsibility. I also did another specialization in Public Government at the J.F.K. School of Government at Harvard University, and finally I did a Master’s Degree in Public Relations and Communications.

Finance Colombia: Excellent, then you have a good balance between finance and the technical, also for human relations and public relations.

Catalina Restrepo: When I worked at the Presidency of the Republic, I worked on issues of international cooperation. In the Ministry of Commerce I had the opportunity to work with multilateral organizations, then in all my work experience, I’ve always had my counterparts, and here in the ACI I had all these counterparts in the same job, so that’s what I do. Make this work fascinating, make sure this work is enriching, that it contributes a lot to myself as a person and as a professional, and it’s a job… I say that I have the most beautiful job of all, because here in ACI we work to create good news every day.

If there is a public entity that can offer good news, it’s ACI: Who would complain about the fact that we generate employment? Who can complain about the fact that we improve the capabilities of the citizens’ territory through cooperation? Companies arrive here and demand to make us their base city, to have better human talent, to have more competitiveness, but also these citizens have formal job opportunities, so we show them every day how Medellín has transformed through all those delegations that come from all over the world, to see what happened in Medellín? In the nineties it was a city that nobody wanted to see, the most violent city in the world, to now be today the Medellín of the Fourth Industrial Revolution; that recently the World Economic Forum decided that Medellín is that “focus” for Latin America, it’s the fifth city in the world that has a center of that type, so they ask me what do Tokyo, Mumbai, Beijing, San Francisco and Medellín have in common? I tell them that we are the cities for the Fourth Industrial Revolution.

Finance Colombia: It’s fascinating how Medellín has changed. I remember my first time in Colombia, in 2004, and looking at what Colombia is like now, and specifically Medellín, how the reputation has changed and how Medellin is like the Silicon Valley of South America. There are companies that are migrating from Uruguay, the United States, Europe, and not because it is cheaper—although it is cheaper—but because of the quality of life, because of its human resources, there is human talent, the connectivity that it has. Tell me then: When you arrived at ACI Medellín, the agency was already established, it already has a good reputation because of professionals like Juan Carlos Valencia and his colleagues but sometimes I think it is less of a challenge to change or to fix something that is broken, than taking something that is working and take it to the next level, as you see when you arrived. What are you proud of what you have achieved? You don’t have much time since starting, but what I’ve seen as a journalist, looking at what’s happening here, the arrival of more businesses, as there are always announcements of a company that is coming to Medellín, which chose Medellín to grow, then what do you see as your main achievements that you have made as in the last months?

Catalina Restrepo: Look, Loren, I think that the achievements are immense, and the agency has been founded for seventeen years now. It’s an agency that has been transforming and adjusting to the needs of the city, and has been an agency that has been able to adapt to its changes.

So, one, the agency’s human team is invaluable, and that’s the first thing. Two, the great achievements? That last year we worked very hard and we achieved almost all the goals of the development plan, from “Medellín Cuenta con vos 2016-2019.” So, to achieve that in such a short time it’s not just my issue, it’s a matter of team commitment and working with the team and for the team, because what is the point for me to do certain things if I don’t know how to give that communication to the team so the results of the agency is everyone’s? We are a team, we have a great leader who is our mayor, and the mayor is convinced that this is a very important opportunity, and when I say this, this is the daily work of the agency.

It’s very important for the economic development of the city, so what have we done? we have focused a little more, we have not tried to do a little bit of everything. What is the focus of 2018? What is the focus of 2019? We’re doing very well, but let’s demand more from ourselves because I know we can do better.

So if you see the achievements we have so far, that is, in direct foreign investment, Medellin has today $1.01 billion US dollars as of May 31, and we hope to end December 31, 2019 with almost 1.2 billion dollars. If we compare ourselves with other cities, for example with Barranquilla, Bogotá, with Cali, Medellín is second, it’s supremely well ranked, not in vain last week FTI Intelligence from Financial Times recognized us as the fourth city globally in strategy.

So the challenges have always been there and it is to demand more because I know we can do more, capitalize on that human talent, focus much more that human talent and work hand in hand with the administration, because although we are a decentralized entity, we are the Mayor of Medellín, we are the Municipality of Medellín, we are the metropolitan area as our name says, so we  work very actively with these actors, with these allies, with the chambers of commerce, with private companies, with universities, which is what has characterized Medellín’s transformation and keeps transforming and there is a continuity in processes, which is that work between university, company, state. So, if we continue to work together, the results are seen, and this is proof that the results are visible and the impact is much greater.

Finance Colombia: If you look for example at the next five years, what do you see? There are some things that are within the control, of ACI, as an agency, but there are also external factors, nobody knows what will happen to the economy, the price of oil, but for what can ACI do? Specifically talking to the world, talking to investors and businesses, what is your vision of the potential that ACI has?

Catalina Restrepo: I would love it if the ACI had, I don’t know if a department, a space or some professionals, dedicated solely and exclusively to offer cooperation. The ACI and Medellin is now ready. We in our time need the world to transform us, I believe that today, and given the flow of delegations that we receive weekly to learn from Medellin, my dream is that Medellin can begin to deliver that knowledge and those good practices, because what happens? It is not that they are going to be copied verbatim, no, because Medellín has a reality, San José de Costa Rica has another reality.

But if there is something here that has already worked, and can be adapted to San José de Costa Rica, how not to share it with that city? So that this city also grows. So that would seem incredible to me, we have made progress, but it takes a lot of time and it requires people dedicated exclusively to that, then that would be one of my dreams, I would love it if that could be achieved. In other terms also specialize a little more in investment, Medellin has great potential.

If we could have more, if the human team was bigger for the investment issue, which I think is key, because if we compare ourselves today with the different investment promotion agencies in the country, our team is small for the results we have achieved. So I know that with a little more human talent, we can achieve many more things, and I’m sure the agency will continue to grow, it will continue to transform and will continue to achieve great things for Medellín, and that is all that one wants, starting because we are locals, and we want Medellín to do well, because if Medellín is doing well, we are doing well.

Finance Colombia: Yes.

Catalina Restrepo: As a citizen.

Finance Colombia: Talking to investors and business people everywhere, it’s like Medellín has achieved a lot in the last decades. Medellin largely has already overcome its historical reputation of Medellin 1993 for example, as we talk about figures, crime, welfare or those things, also Medellin has a recent reputation for its talent, for technology. With many software companies and industrial investment companies that have industrial production centers, when you talk to these executives, who may already understand that, they already know “ah yes, there is technology in Medellin,” Medellin is safe and certainly I won’t be hijacked at the airport or all those risks, but the reality still surprises businesspeople when they come or when you talk to them and you’re talking about the value of Medellin or offering of Medellin or what is in Medellin, what still surprises those who have not visited? That there are people—there is technical talent, I know it’s already safe, I know I can fly there to three hours from the United States, what is the thing that still surprises you, what is it that you still don’t understand about Medellín, what frustrates you in this process of orientation to the city?

ACI Medellín’s Catalina Restrepo with Finance Colombia’s Loren Moss

Catalina Restrepo: More than frustrating me, I am also surprised, because every time we are in the streets or every time a delegation arrives here, and right now for example I am quite surprised with the World Mayors Summit, which we had from July 10 to July 12, where had mayors from the other side of the world, I’m talking about Asia, Indonesia, China, which are very far from Medellín, we don’t speak the same language, and they know us know very well, so it’s something that is very surprising, because I say, what is it? What did we do well? That they know us, but what are we not doing so well for everyone to recognize the capabilities, because, many times when they arrive here, some make the first contact, they still have that doubt, about Medellín being the right decision: “is it?” “Could it be that they are just talking a lot of chatter?” It’s like that disbelief because it’s very difficult to go from being the ugly girlfriend to being the girlfriend that everyone wants to have, that’s what happens with Medellin, and I tell you Loren, we’ve come a long way, but we lack immensely.

Finance Colombia: Yes.

Catalina Restrepo: We lack immensely, we can’t fall into the trap that “yes, Medellín is the best” no. Medellín is the best for us who love it very much, but we all have challenges, we all have to learn, so let’s say that it’s still surprising, that when they come here they come as with “could it be? Is it not?” And when they get to know they say “oh well, yes!” already convinced, yes it’s true and when you walk in the streets, when you talk to people, because, talking is our job.

It’s our job, but to hear people say how it has been transformed, how they have seen the positive impact of investment, cooperation, work, administration, it’s another story, because people are honest and the people I could say something “that doesn’t work”, “I love that” and understand that process, how it benefits our work to each citizen on foot, that is what still surprises me, and I hope it doesn’t stop surprising me, because the day I stop being surprised, then the work has lost its meaning.

Finance Colombia: Yes, yes. Thank you very much for your time.

Catalina Restrepo: No Loren, to you, thanks to you.

The World Economic Forum’s (WEF) Tropical Forest Alliance annual meeting just concluded in Bogotá, Colombia, and the WEF has announced a number of commitments that will contribute to the Alliance’s goal of protecting the world’s tropical rainforests.