NEWTOWN, Conn. -- Colombia has been investing heavily in its military for years to combat drug cartels and leftist guerillas. In fact by 2006, President Alvaro Uribe intended to increase defense expenditures to 6 percent of GDP. However, that goal was not reached and defense spending continues to hover above 3 percent of GDP.
Between 2013 and 2017, defense spending increased at an annualized rate of 4.2 percent. However, due to inflation, Colombia's defense budget actually declined at a rate of 0.6 percent annually in real terms and 7 percent in U.S. dollars. Even though spending has increased, buying power has decreased.
Colombia plans to increase spending by 17 percent in 2018 to COP31.4 trillion ($10.7 billion). However, after that, defense spending increases are expected to slow. The November 2016 peace treaty between the government and FARC will reduce the need for high defense spending. Resources will be able to be shifted from the fight against guerillas to drug cartels without substantially raising defense budgets.
Between 2019 and 2023, defense spending will increase at an annualized rate of 2.7 percent, reaching a high of COP35.8 trillion ($12.2 billion) by 2023. The small increases will enable Colombia to maintain purchasing power while continuing the fight against drug cartels and a few remaining guerillas that refuse to surrender.
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