Colombia Second Fiscal Sustainability, Competitiveness, and Migration DPF

About the project

This Development Policy Financing (DPF) is the second in a series of two DPFs that support Colombia’s efforts to maintain fiscal sustainability, further strengthen the foundations for productivity growth and support regularization and integration of refugees and migrants in a complex external environment. The post-conflict context and the unprecedented surge in migration from Venezuela give these reforms even greater urgency. Migration of this scale generates both significant short-term challenges and medium term opportunities to contribute to growth. It also involves coordination with neighboring countries, as receiving countries provide public good services to the entire region. Fiscal sustainability remains a central priority for the government in the context of additional spending needs related to the implementation of the peace agreement and migration-related expenditure.

Project Development Objective (PDO)

To: (i) help maintain fiscal sustainability through fiscal consolidation measures and improved contingent liabilities management; and (ii) foster productivity in non-extractives sectors by strengthening the policy framework for trade facilitation, investment, competition, business regulation, innovation. The reforms under these two objectives mutually reinforce each other. Both areas of reforms are likely to raise investor confidence, de-risk the economy, reduce costs for the private sector, make the country even more resilient to shocks, and foster growth over the medium term.

Relevant Documents:

• Program Information Document (PID)
• World Bank Project Information Page