Guest blog by Ernesto Correa Valderrama, LEG ’24
In Colombia, armed conflict, poverty, illicit crops and, although it may seem strange, even deforestation are located where there are no good quality roads.
That was the basis on which the Transport Infrastructure Program Roads for Equity1 was structured and awarded transparently in 2015 for more than USD 2 Billion, building hundreds of kilometers of paved roads with bridges and tunnels in regions with low political representation and traditionally separated from the national productive apparatus. That was the adaptive challenge presented in Professor Jorrit de Jong’s class at the Emerging Leaders 2014 Course at the Harvard Kennedy School (1). However, many more kilometers are needed to improve.
This presentation provides some details that could be illustrative of the situation: https://www.youtube.com/watch?v=dwysI-31ZDs
Considering this experience and the insights from Leading Economic Growth Course 2024, a Program of infrastructure can help to create development, and to take advantage of its potential even more and attack the main binding constraint in Colombia – lack of knowhow – we must adapt it. A great possibility is to include the PDIA strategy in the contracts at once.
For the road development of Colombia, the Andes with its three mountain ranges have been a huge challenge from the geotechnical and economic point of view, however, today, they can be a great advantage for the generation of more hydroelectric sources that combined with the generation of solar and wind energy in La Guajira create greater availability of green energy for industrialization and attraction of know-how.
Program: Roads and Energy for Inclusive Development of Colombia
Structure the program on a larger scale, based on the one carried out in 2015 (Roads for Equity) where roads were developed in the areas of greatest conflict in Colombia.
Include in the Tender Conditions (and therefore in public works contracts): how the support will be to carry out the PDIA strategy with the objective of developing strategic bets for each territory where an important corridor is developed and structure and implement the strategic bet for inclusive growth with the support of the Ministry of Commerce, Proexport, Bancoldex, Territory Renewal Agency, etc. Include the Mining and Energy sector for: use of oil and coal royalties3 to support investments in diversification of the economy, support with resources from business cases for financing related projects.
To structure the Tender Conditions, make an annex with the obligations to execute the PDIA strategy. To write the text, a first iterative phase must be carried out with different actors. I started (November 27th to 29th 2024) with the Infrastructure Guild of Colombia, with whom I am close. (1) (2). We are working in a USD 3 to 4 billion Program. The Program should be made up of about 70 road projects that allow include different critical areas to the economic apparatus of the country, most of which already have studies and designs to be able to tender the work.
The Colombian Chamber of Infrastructure brings together the main companies linked to the Construction sector in Colombia. They have been very close to and supported the structuring and execution of the Roads for Prosperity (2012) and Roads for Equity 2015 Programs, structurings that I had the opportunity to lead in different positions of responsibility, after many long and challenging sessions, even moments where many did not believe in us.
Given the current situation and the drop in investments that the country has been experiencing, there is an interest in having an Infrastructure Program where entrepreneurs can participate. Because of my previous experiences, leadership and transparency in them, I have the legitimacy, ability and authority to transmit the ideas and the bases of joint creation of the Program in a gradual process of building legitimacy and functionality. It is about doing what we have already done, but much more powerfully in each region.
The selection and location of hydroelectric projects in the mountains will depend on technical considerations and for wind and solar projects the main place to prioritize will be La Guajira.
With these strongly structured programs, with a solid discourse that unites us as a country, we will have support for our PDIA strategy and having interactions within the framework of the construction of strategic works, with department governors, mayors, national, regional and local private sector to create and support the strategic bets that we need to grow (given the development quadrant in which the country is located). As we have a strong tradition of not reaching an agreement by talking, we will reach an agreement by doing.
To work with current or existing practice to find ideas to try out we are checking the economic development linked to the Pathways for Equity Program, what new businesses were created, how economic indicators behaved before and after the intervention in each region. This can show us gaps and possibilities to move up the vertical axis. To support the gap analysis, we can build a model in the style of a conceptual development plan checking the economic growth that the pathways have generated in different international practices. We could identify positive deviance by identifying and analyzing successful cases of economic development linked to road paving that has been carried out. Once identified, these would be great examples to support the Program, great arguments.
A Program of this type can help us create a sense of us, it is aligned with our history and especially tends to address what is most requested in social protests4 throughout the country, roads and employment. This development and discourse around it helps us touch a sensitive nerve in the communities and the country. Mechanisms must be developed to strengthen discourse and governance, already having this “master key”.5
The size of the pie between regions of the country and this growing disparity are inhibitors of the creation of a larger pie for Colombia that allows us to have higher per capita income and less inequality and violence between people. Around 15% of total project investments are spent on local goods and services. It will be necessary to include in the contracts of the contractors the hiring of these local goods and services in merit-based selection processes, as well as to carry out greater supervision of the hiring of personnel.6
For December 2024 we are structuring the program and several sector leaders have even indicated to us that it could be useful for the presidential campaign that begins next year in view of the 2026 elections.
We will continue working like heroes to make a difference, thank you professors Ricardo Hausmann, Matt Andrews and the entire team of Leading Economic Growth for this new boost to morale and knowledge in many parts of the world.
This is a blog series written by the alumni of the Leading Economic Growth Executive Education Program at the Harvard Kennedy School. 47 Participants successfully completed this 10-week online course in December 2024. These are their learning journey stories.