CONFIDENCE and

LEADERSHIP

Inside the transformation of Colombia

Remarks by Alvaro Uribe VélezAPRIL 2012

Issues to address

1. A historical problem

2. Facing the problem: From campaign to Government

3. Generating change in times of crisis

1. A historical problem

“Every creative journey begins with a problem”

Colombia in 2002 was a fragile State

Security

28.837 homicides

2882 kidnappings

69 homicides per 100.000 habitants

1645 terrorist attacks

350 mayors out of their municipalities

158 municipalities without police

Economy

Average Economic Growth 1994-2001: 2.1%

GDP per Capita: US$2377

Investment as % of GDP: 16.5%

Exports: US$11.975 million

FDI: US$2.100 million

Inflation: 6.99%

Fiscal balance: -3.2%

SocialUnemployment: 16.2%

Health Coverage: 25 million Colombians.

Pension affiliates: 4.5 million

Poverty:57%

Education Coverage: Primary 97%, High school: 57%, University: 24%.

Mobil Phone Lines: 4.6 million

Internet coverage: 1.9 million

The Colombian Paradox: a long and stable democracy in a permanent threat from terrorist groups, drug dealers and organized

crime…

1. A historical problem

Colombia faced a Confidence Deficit

The elusive quest for peace

Many governments exhausted all their political capital attempting to reach

peace through political dialogue…the result was military strengthening

from illegal armed groups and a rapid growth in their

criminal activities (68% thought the country was going in a negative track)

Terrorist Groups (Guerrillas and

Paramilitaries) had created a sense of

defeat in the Colombian people.

Fear impacted in the Colombian people

Mindset

The lack of investmentThe drain of human

capitalThe sense of danger in

Colombian roads.The expansion of

massive kidnappings created an emotional

domino effect

2. Facing the problem

Vision

Policy

PRINCIPLES

CommunicationInnovation

Leadership

Results

2. Facing the problem

VISIONOur vision was to build a Comunitary State:

• CONFIDENCE was our main goal

• Without Confidence: • No investment• Unemployment• Lack of opportunities• Brain Drain (Young people wanted to leave

without a return ticket)

• Three main Policies:

• Democratic Security

• Investment with fraternity

• Social cohesion

• For the First Time a National Development Agenda had Security as a driver of Development (Security = Investment = Social Cohesion)

• No more a debate between left and right

2. Facing the problem

POLICY• Democratic Manifiesto (100 Points)

Democratic Security

Security for All

Fight all forms of crime

Security without Martial Law

Security with liberties and Human Rights

Victims recognition

Investment with Social

ResponsibilityInvestor Security (Human, Legal

and Political)

Sound Macroeconomics

Incentives

Access to markets

Competitiveness Factors (Infrastructure, Connectivity,

Banking,)

Social Cohesion

Education Revolution

Health with coverage and quality

Access to credit (Banca de oportunidades)

Vocational Training

Conditional Cash Transfers

2. Facing the problem

Principles

Political Pedago

gy

Build a citizen coalition

Macro Vision & Micro

Management

Permanent dialogue with citizenship.

Beyond traditional

politics (Colombia

FIRST)

Accountability

Security as a Democratic

Value

MessagesSecurity as a Democratic

Value.

Strong hand with a big heart.

To work, work and work.

Against corruption and traditional politics

2. Facing the problem

Communication

2. Facing the problem

InnovationBefore

Presidents inside the office

Presidents not engaged in details

Lack of an effective vision communication

Solve problems through political

channels

Political calculations

Secretaries appointed by Political

Representation

Secretaries rotated on a permanent basis

Luxurious governments

Congressional Governance

InnovationPresident with the People(Consejos Communitarian)

Macro vision & Micro Management

Three eggs

Face problems with regular citizens

Pedagogic policy formulation

Secretaries appointed by experience

4 year term secretaries

Austerity

Citizen Governance

2. Facing the problem

Innovation in SecurityRecovering

SecurityMacro Vision and Detailed Follow up:•Daily commitment to monitor security in every region.

•How citizens had the President Mobile Phone Number

Early Victories :•Road caravans

•Massive kidnappings are over

Strategic Force Integration•All Forces working together.

•Share success

National Informant Network•Citizens became active in denouncing criminals

•Reward Mondays

Commander in Chief assumes responsibility•The Granda Story

•Operation Fenix: Fire the Air Force Commander

•Operation Jaque: The pressure for a humanitarian exchange and the final outcome

Smart Weapons:•The importance of strategic warfare

Extradition:•The decision to extradite the Paramilitary Kingpins

2. Facing the Problem

Leadership

Mobilization

Drivers

306 Communitarian Councils

Weekly Security Councils

52 Economic dialogues

Result Driven

Administration

Leading by example

Direct Democracy

(Sate of opinion)

Determination to find solutions

Communication with the

truth

2. Facing the problem

• Moments of truth:1. Nogal Bomb: Bogota cries but never surrenders2. Killing of 11 regional senators: Facing their

families when rejecting humanitarian exchanges.3. The rescue of Fernando Araujo4. Meeting Chavez after the Bombardment in

Ecuador: a debate in live T.V5. The rescue of National University President6. The story of Emanuel7. The military agreement with the U.S

Leadership: Tough Decisions

2. Facing the problem

Indicator 2002 2010

Homicides 28838

15000

Kidnappings 2882 228

Homicides per 100K Habitants

69 35

Terrorist attacks

1645 250

Municipalities without mayors

presence

350 0

Municipalities without police

158 0

Security EconomyIndicator 2002 2010

Average Economic Growth

2.1% 4.3%

GDP per Capita

2377 5300

Invest % GDP

16.5% 24.6%

Exports US$11.000

US$ 39.000

FDI US$2.100

US$ 7.000

Inflation 6.9% 2.5%

SocialIndicator 2002 2010

Unemployment 16.2% 11.6%

Health Coverage 25.1 million

43.1 million

Pension affiliates 4.5 million

7.1 million

Poverty 57% 37%

Education coverage (Primary,

Hs, University)

97%57%24%

100%79.4%35.5%

Mobile phone users

4.6 million lines

41 million lines

The combination of our Policies produced significant results: Lowest violence levels in two decades, highest levels of social coverage in Colombian History and highest levels of

Exports and FDI in more than 5 decades.

Results

2. Facing the problem

• Leadership, governance based on citizen support and political Will, helped built significant historical changes in strategic sectors:

• Reform the oil and gas sector: 1. Colombia is close to produce 1 million barrels per day from 250.000 in 2002. 2. Ecopetrol Reform 3. Created the National Hydrocarbon Agency

• Reform the Telecom Sector:1. Restructure the Colombian Telecommunications Agency

• Reform the Colombian Social Security Agency• More than 2000 criminals were extradited• Paramilitary structures were dismantled• FARC suffered its biggest historical defeats• Colombia experienced its largest historical FDI flows• Biggest historical reduction in illicit crops• More than 10 FTA’s signed and negotiated• Largest historical health and education coverage• Largest historical credit expansion• Largest historical tourism flows to the country

Results

3. Change in times of crisis

Lessons

Lincoln• Get out of the

office• Honesty• Courage• Strong Hand• Commit to

results• Preach a vision• Talk to people

directly

Kotter• Honesty• Energy• Competence

Moss Kanter• Consistency• Congruence• Competence• Caring

Final Thoughts

1. Human problems require human solutions

2. Our strategy worked because it was conceived by the people, by the people for the people.

3. Our esence was pedadogy not demagogy

4. Macro Vision and Micro Management are esential to succed in times of crisis

www.alvarouribevelez.cpm