Category Archives: Country

Colombia’s President-Elect Cuts Peace Commissioner, Multiple Agencies

Leave a reply

Colombia’s President‑Elect Abelardo de la Espriella, in his third national address since being elected, announced on July 13 a major restructuring of the presidential administrative structure, eliminating multiple advisory councils and agencies and abolishing the position of Peace Commissioner. De la Espriella said the move aims to avoid “duplication of functions and waste” and to build a “lean, efficient, results‑oriented” state.

Multiple Agencies Dismantled, 229 Positions Eliminated

Under the reform plan announced by de la Espriella, the agencies to be abolished include the Office of the High Commissioner for Peace, the Advisory Council on National Reconciliation, and the Presidential Advisory Council on Human Rights and International Humanitarian Law. In addition, several other presidential offices whose functions overlap with those of line ministries will also be eliminated. The functions of the Unit for the Implementation of the Final Peace Agreement will be transferred to the newly created National Security Commissioner. The Presidential Regional Advisory Council will not be dissolved but will be transformed into a “Regional Administration Bureau” responsible for coordinating relations between the central government and local departments and municipalities.

De la Espriella said the reform would eliminate about 229 positions, saving the government approximately 10 billion pesos (about €2.7 million) in annual fiscal expenditure. The funds saved would be used for “projects that directly benefit the Colombian people.” He emphasised: “I want to transform the structure of the Presidency into an administrative coordination centre, with a lean staff, no ties, no positions used to pay political favours or bureaucratic quotas. This will be a lean, efficient, always results‑oriented structure.”

“No More False Peace Processes”

The most closely watched aspect of the reform is the abolition of the Peace Commissioner position. In his address, de la Espriella made it clear: “The Peace Commissioner will cease to exist, because there will be no more false peace processes in my government.” He announced that, as of his formal inauguration on August 7, the government’s top priority will be “guaranteeing the security of the people and completely eradicating the current prevailing impunity system that feeds criminality.”

At the same time, de la Espriella criticised the “Total Peace” policy promoted by the outgoing government of President Gustavo Petro. He instructed the new National Security Commissioner, the Minister of Justice, and the Minister of the Interior to “immediately eradicate, in accordance with the Constitution and the law, all impunity hidden behind the illusion of false peace.”

He also took aim at the Special Jurisdiction for Peace (JEP) – the transitional justice mechanism established under the 2016 peace agreement. De la Espriella criticised the JEP for authorising Rodrigo Londoño, alias “Timochenko,” the last leader of the former FARC guerrilla group, to travel to Spain for an event. “The war criminal Timochenko should be sentenced to life imprisonment. I will work for that,” he said.

Reform Sparks Controversy

This reform is one of the most controversial policies announced by de la Espriella since he defeated left‑wing candidate Iván Cepeda in the second‑round vote on June 21. Abolishing the Peace Commissioner means that Colombia will cease political negotiations with illegal armed groups, a move that has drawn concern from international human rights organisations and some international media. Analysts have pointed out that the lack of institutionalised negotiation channels could exacerbate cycles of violence and reduce the likelihood of peaceful resolution of armed conflicts.

Meanwhile, de la Espriella’s plan to hold his inauguration ceremony at a military base in the south has also brought him into direct conflict with current President Petro. Petro has ordered that no military or police facilities be used for the inaugural ceremony, emphasising that the Constitution requires the ceremony to take place in Congress. De la Espriella responded that he would ignore the “opposition of the outgoing government.”

De la Espriella also announced the creation of a digital platform called the “National Talent Bank,” promising that all future public appointments would be based purely on merit and performance, putting an end to “nepotism” and “political favour‑trading.” He also appointed María Nohemí Arboleda, an electrical engineer with 30 years of industry experience, as Minister of Mines and Energy.

The restructuring of the presidential agencies will take effect after de la Espriella is formally inaugurated on August 7.

IMF Downgrades Chile’s 2026 Economic Growth Forecast to 1.8%

Leave a reply

The International Monetary Fund (IMF), in its recently released 2026 Article IV Consultation report, has downgraded Chile’s economic growth forecast for 2026 to 1.8%, down from its previous projection of 2.2%. At the same time, the IMF projects a rebound to 2.6% in 2027. This marks the second downward revision of Chile’s growth outlook by the IMF this year.

Slowing Growth Amid Multiple Headwinds

In its report, the IMF noted that while Chile’s economy remains resilient, growth momentum is weakening due to a confluence of factors. Data shows that Chile’s GDP grew by 2.5% in 2025, driven largely by robust non‑mining domestic demand. However, after entering 2026, conflicts in the Middle East pushed up energy prices, fueling inflation. Although inflation had fallen back within the central bank’s target range in early 2026, it subsequently overshot the target again due to rising energy costs.

At the same time, domestic economic indicators are also concerning. The latest Economic Expectations Survey from Chile’s central bank shows that experts project the economy will grow by only 1.3% in 2026, with an unemployment rate of 9.4% and annual inflation still at 4.3%, above the central bank’s 3% target. The economic activity index (Imacec) has now declined for five consecutive months.

Copper Prices Offer Support, with a Rebound Expected in 2027

Despite the dimmer short‑term outlook, the IMF maintains a relatively optimistic view of Chile’s medium‑term economic trajectory. The report projects that, supported by factors such as rising copper prices, Chile’s economic growth will rebound to 2.6% in 2027. As the world’s largest copper producer, Chile’s economy is closely tied to copper price trends, and sustained strength in international copper prices could provide important momentum for economic recovery.

The IMF also warned that if high oil prices persist longer than anticipated, they could further dampen growth and fuel inflation, and the central bank should stand ready to tighten monetary policy as needed. The report added that external risks remain tilted to the downside, with geopolitical conflicts and global supply chain disruptions posing major threats.

Fiscal Consolidation Challenges Remain; Structural Reforms Called For

On the fiscal front, the IMF noted that Chile’s fiscal deficit persists, mainly due to lower‑than‑expected fiscal revenues, although public debt levels remain moderate. To achieve the government’s stated goal of reaching fiscal structural balance by 2030 and keeping the debt‑to‑GDP ratio below 45%, the IMF said “additional fiscal efforts” are still required.

The IMF Executive Board recommended that the Chilean authorities continue to rebuild fiscal and external buffers, including by pressing ahead with reserve accumulation plans, while advancing structural reforms to enhance long‑term growth potential. The report also suggested that the government prioritise and sequence reform measures prudently under the national reconstruction plan, and carefully assess the fiscal costs and growth impacts of tax and other reforms.

Government Response: On the Right Track, Confidence Unshaken

In response to the IMF’s downgrade, the Chilean government sought to play down concerns. Arturo Squella, President of the ruling Republican Party and a senator, said, “When an international organisation emphasises that Chile is making the right decisions, it shows that we are on the right track.” The government insisted that Chile’s economic fundamentals are sound and that there is no risk of recession.

However, market analysts pointed out that, against the backdrop of a slowing global economy, inflationary pressures, and a weak domestic job market, the performance of Chile’s economy in the second half of the year still faces considerable uncertainty. The upcoming release of the June economic activity monthly index will be a key indicator for judging whether the economy can regain growth momentum before the third quarter.