Student Connection
Government Regulations or Deregulations
As we knew before exist some law and regulations in which we have to take care of in order to offer a legal service and guarantee the legality of the jobs companies are giving in our web side. Some of them are:
Prohibition of forced and compulsory labor: The Constitution prohibits slavery , servitude and trafficking in persons in all its forms . The Labour Code defines forced labor as work that is socially required.
Source: Art. 17 de la ConstituciĆ³n de Colombia de 1991; Art. 07 del CĆ³digo del Trabajo, modificado en 2013.
ā
Freedom to change jobs and right to waive: Labor law states that workers have the right to change jobs after giving proper notice to your employer
Source: Art. 62 del CĆ³digo del Trabajo, modificado en 2013.
Inhuman Working Conditions: Working hours can extend beyond the regular working hours forty-eight hours a week and eight hours a day. However, the total working hours including overtime must not exceed ten hours a day.
Source: Art. 161 a 168 del CĆ³digo del Trabajo, modificado en 2013
Minimum age to work: Article 35 of law 1098, 2006, states that the minimum age for admission to employment is fifteen (15) years. To work, teenagers between 15 and 17 require the appropriate authorization issued by the Inspector of Labour or, failing that, by the local authority.
Tu Salario (2013), obtenido el 13 de febrero de 2016, available at: http://www.tusalario.org/colombia/Portada/ley-laboral/trato-justo/menores
MinTrabajo (2016), obtenido el 13 de febrero de 2016, available at: http://www.mintrabajo.gov.co/preguntas-frecuentes/jornada-de-trabajo.html
Changes and Tax Laws
The taxes in Colombia have been experiencing an important increase during the last year. The rate of payroll tax is 39% for 2015 due to the high income tax (25%) and the Cree tax (9%) with the sucharge. This was stablished in the new tax reform in order to cover up the fiscal deficit in 2015.
This makes our country has one of the highest tax rates in Latin America, which turns it into an uncompetitive region. Additionally, the foreign investment could decrease due to the high corporate tax income, and therefore, the growing rate of the country could decrease.
Special Tariff
In colombia there are several types of tariff applicable to people living or consuming within the limits of the countries, such tariff are:
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Direct tariff: Those that fall into the rent, income and wealth and it could affect natural people or legal persons.
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Indirect tariff: those that fall into the production, sell of goods, service lending, imports and consumption.
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National Tariff: it consists of:
* IVA (impuesto al valor agregado).
* Rent tariff
* Timbre nacional tariff.
* Especial contributions.
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Departamental tariff: those that fall into those factors that are done witnin the department territory. Such as: consumption of beer, beverage, etc. gas tariff, and vehicle tariff.
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Municipal tariff: Those that fall into those industrial factors that are done within in a municipal territory.
Encolombia.com (S.F). taken on February 13th 2016. From: https://encolombia.com/economia/economiacolombiana/impuestoencolombia/
Political Action Committees
Ministerio del Trabajo and Ministerio de Tecnologias para la Informacion y Comunicacion are the political actions committees working together in charge of the regulations related to the offer and demand of jobs in Colombia so they promote the veracity of information available on the internet.
Taken in February 2016 from: Oferta de teletrabajo en el paĆs. MINTIC http://www.mintic.gov.co/portal/604/w3-article-8273.ht
Voter Participation Rates
Colombia is the third country with the lowest turnout in Latin America, after Haiti and Chile. One might think that this is because in our country, as in Chile, voting is not compulsory.
Number, Severity and Location of Government Protest
In 2015 we saw many protests again local or national governments, again some public politics, by 13th march 2015 there had been presented more than 283 social protests in the country.
The buses strike, protests by students of the University San Martin in different cities of Colombia and the protests of the indigenous community of Cauca are just some demonstrations that have taken place in the country last year and that currently add up total of 283.
According to the Ombudsman, 70 of those protests led to sit-ins and rallies, marches and demonstrations 69, 50 blocks and 38 mobility situations stoppage. The company also indicated that 27 departments of the country have witnessed expressions of dissatisfaction and the most active sectors were the neighbors (ie, residential communities) with a share of 25%, the carriers with 17%, the education sector with 35%, and ethnic groups with 27%.
Meanwhile, the regions most affected by these social manifestations are 43 situations Bogota, Bolivar 38, 26 Antioquia, Cauca Valley with 24 and 18 episodes.
Each protest affects every industry and individual person, sometimes protestants close avenues, streets or stop the public transportation and that causes chaos in the city that affects schedules, meetings etc.
El Espectador (2015), obtenido el13 de febrero de 2016, available at: http://www.elespectador.com/noticias/nacional/283-protestas-sociales-se-han-presentado-durante-ano-el-articulo-549206
Number of Patents
The graph shows the number of patents granted during the past 15 years in different regions of Colombia. The region with the highest number of patents through the last years was BogotĆ”.
Taken from: http://derechoeinnovacion.co/?p=264
Taken from: http://www.sic.gov.co/drupal/patentes
Changes in Patent Laws
Ones Colombia joined the Comunidad Andina in December 1th 2000. The decision 486 the new industrial property regim did enter in validaty. After that the Superintendencia de Industria y Comercio is the only one in charge of grant an patent. And that process is protected by different types of laws, such laws are: Convencion de roma; Convencion de berna; decision 486; ley 23 de 1982; ley 170 de 1994; ley 1343 de 2009; ley 1403 de 2010; ley 1455 de 2011; ley 1450 de 2011; ley 603 de 2000 and the concepto DNDA.
ComunidadAndina.org (S.F). taken on february 13th 2016. From: http://www.comunidadandina.org/Seccion.aspx?id=83&tipo=TE&title=propiedad-intelectual
Taken on february 13th 2016. From: http://www.propiedadintelectualcolombia.com/site/Detalledelanoticia/tabid/100/smid/439/ArticleID/51/reftab/108/Default.aspx
Javeriana.edu. (S.F). taken on February 13th 2016. From: http://www.javeriana.edu.co/sinfo/patentesColombia.htm
Environmental Protection Laws
Colombia is part of the Organization of American States, where in 1993 they stated a law for the environmental protection. This was the ālaw 99 of 1993ā where by articles all the environmental general principles are stated. In this law is stated that the countryĀ“s biodiversity must be used and preserved sustainably using economic instruments by the government. In Colombia it exist the Ministerio del Medio Ambiente and its objective to have a regulator in charge of the environmentās wellness.
Taken from Organization of American States. Ley 99 de 1993, Ley del medio ambiente. Available at http://www.oas.org/dsd/EnvironmentLaw/Serviciosambientales/Colombia/Ley99de1993demedioambienteColombia.pdf
Level of Defense Expenditures
data on military spending SIPRI are derived from the NATO definition, which includes all current and capital relating to military expenses, including the forces of peacekeeping; defense ministries and other government agencies engaged in defense projects; paramilitary forces, it is considering that are trained and equipped for military operations; and activities in the military area.
( http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZS)
(http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZS)
Legislation on Equal Employment
Law 1496 of 29 December 2011 guarantees equal pay and working pay gap between women and men in Colombia and the Law 1009 of January 23, 2006 created a permanent Observatory of Gender Affairs which aims to identify and select a system of gender indicators, analytical categories and monitoring mechanisms for critical reflections on policies, plans, programs, regulations, case law for the improvement of the situation of women and gender equality in Colombia.
Colombiaās ministry of labor has created an especial group together with the minister, which purpose is to have different views toward a multicultural political achievement around the theme of labor. Its main goal is to recognize and achieve that al work for Colombians must be decent, of quality and worthy.
Articles 13 and 53 from Colombiaās Political Constitution, prohibit discrimination at workplace, among some parts from the Colombian Labor Code. In this document, article 10, states explicitly that all employees must be provided with same legal rights. In Colombia, discrimination in labor includes not hiring or not provide equal terms to an employee based on classification in: Gender, sexual orientation, race, national and family origin, language, religion, political or philosophical opinion, military status, disability
These laws are really important to us because we could infer that every student we contact can legally be hired, even though their conditions, gender or religion, that means our range of costumers is wider because by law there is no discrimination to work.
Tu Salario (2013), obtenido el 13 de febrero de 2016, available at: http://www.tusalario.org/colombia/Portada/tusalario/igualdad-salarial/brecha-de-genero
MinTrabajo (2016), obtenido el 13 de febrero de 2016, available at: http://www.mintrabajo.gov.co/equidad.html
Level of Governmental Subsidies
The government recently give a subsidy to the little and medium firms, the amount of money that they give to them was of $130000 depending on the initial invest that the investors gave, the money that was given was to increase the competitiveness of the little firms.
The government subsidies are good, because even they are giving money they are not losing it at all, if we see it in the way that government are investing money in little firms, that in a future they could create new work places, it would be better for the government in a long term.
Antitrust Legislation
Colombia is a country that seeks the protection to consumerās interest and also a fair competence within markets. To achieve this, the Superintendencia de Industria y Comercio, catalogs some aspects that are considered harmful to a fair and trust competition. Those aspects are: anticompetitive agreements; abuse of dominant position; certain unilateral acts done by companies. In the law 256 of 1996 explain how some aspects like those previous explained can make a unfair competition within industries.
According to the law 1340 of 2009, the only entity that is capable of control and monitor the antitrust legislation that can affect some market or industry by making unfair competition is Superintendencia de Industria y Comercio, that public entity has the right to establish sanctions to those that doesnāt follow the actual legislation that exist regarding to this topic.
Lawschool.edu(S.F). taken on february 13th 2016. From: http://www.lawschool.cornell.edu/research/ilj/upload/londono.pdf
OECD (2009). Taken on February 12th 2016. From: http://www.oecd.org/countries/colombia/44111213.pdf
SIC.gov.co. taken on February 12th 2016. From: http://www.sic.gov.co/drupal/que-es-la-proteccion-de-la-competencia
Russina-American Relationship
Colombia's foreign policy is focused on the consolidation and strengthening of institutions and policies that in turn respond to the pace of change emerging in the international system. For this, the Government has placed special emphasis on achieving growth and competitiveness, equality of opportunity and peace that will lead to greater regional integration and diversify relations and the agenda. It also will seek to highlight topics that Colombia has developed capabilities and potential. The State will continue to position the achievements as an international leader in the fight against the world drug problem; the terrorism; institutional strengthening and commitment to the defense and promotion of human rights.
(http://rusia.embajada.gov.co/colombia_es)
European-Colombian Relationships
Colombia has signed a treaty in 2013 with the European Union.
What is the importance of the European union market for Colombia?
The importance of this Agreement for Colombia is to achieve a preferential and permanent relationship with a key player in the global economy, then, according to the World Trade Organization (WTO), it is the largest importer and exporter of goods, with estimated figures US $ 2,132,888 million and US $ 2,349,849 million, respectively. Likewise, the EU ranks first in the world to buy and sell services trade with amounts of US $ 784,286,000 and US $ 644 360 million, in that order. The European Union has the largest GDP in the world, accounting for about 20% of world GDP, measured in terms of PPP. Regarding Colombia exports to that market, these grew 2.1% in 2012, amounting to US $ 9,050.6 million, representing 14.9 % of sales from Colombia to the world.
In 2012 the countries of the European Union increased their purchases of Colombian products were Bulgaria (213.2 %); Slovenia (188 %); Spain (70.9 %); Malta (68.7 %); Czech Republic (55.2 %); Hungary (17.8 %) and Portugal (4.8%). Products sold to the market of the European Union with greater growth in 2012 were Paper and Manufactured (38.6 %); electrical machinery (30.5%); Fuels (9.7%) and Iron and steel (0.9 %).
So far in 2013, until March, 14.2 % of exports from Colombia to the world turned to the European Union, amounting to US $ 1,997.6 million. The countries of the European Union demanded more Colombian products during the first quarter of 2013 were: Germany (172.7 %); Ireland (95.6%); Romania (94.9 %); Austria (89.0%); Lithuania (61.7 %); Denmark (34.0%); Belgium (34 %); Italy (25.9 %) and Portugal (8.2%).
Items increased their presence in the market of the European Union between January and March 2013 were: Metals and Manufactured (176.9 %); Textiles (31.3%); electrical machinery (28.7 %); Leather and products (3.3%); Other groups of products (2.9%) and paper and articles thereof (2.1%). The main suppliers of Colombia in that market were Romania with 87.9 % growth in imports, Greece 75.9 %, Luxembourg 69.2 %, Belgium 34.1 %, Malta with 28.6 % Cyprus with 28.2 % and Spain with 26.4 %.
Trade with the European Union is favorable for Colombia, in surplus of US $ 1,691.4 million in 2012. The positive result with UK US $ 588.8 million is highlighted; Portugal at US $ 277.3 million; Belgium US $ 200.6 million; Denmark US $ 92.1 million; Ireland US $ 28.6 million; Slovenia US $ 13.2 million and Greece US $ 9.2 million.
So far in 2013, until March, the balance remains positive at US $ 116.1 million.
What means to have a commercial agreement with the EU?
ā¢ The elimination of barriers to greater participation by Colombia in the market for a key player in the global economy.
ā¢ The reduction and elimination of tariffs and non-tariff Colombian exports more competitive for our industrial and agricultural products barriers.
ā¢ A level playing field for Colombian companies against competitors from countries such as Mexico, Chile and soon the Central American countries that benefit from preferential market.
ā¢ Improved access for Colombian service providers in the world's market.
ā¢ A predictable for more productive investment environment.
ā¢ Lower prices and better choices in goods and services.
Ministerio de Industria y Turismo (2016), obtenido el 13 de febrero de 2016, available at: http://www.mincit.gov.co/publicaciones.php?id=34
Government Fiscal and Monetary Policy Changes
Fiscal policy is "the policy followed by the public sector on its decisions on spending, taxes and borrowing" This policy aims to facilitate and encourage the good performance of the national economy to achieve acceptable or outstanding levels of growth, inflation and unemployment, among other variables. It also seeks to avoid fluctuations in the economy. Fiscal policies in Colombia are stable and generate reassurance to investors, which added to the good image that crosses the country, making Colombia an attractive place for investors to bring their money. Additionally, economic incentives in taxation for new investors or existing investors of items such as software, hotel, cinema, generate a plus to ensure that foreign investment continues to pour into the country. In fact according to GP Morgan Colombia is the fifth country in the world to protect foreign investment.
Taken from Banco de la RepĆŗblica (2013) in February 14, 2016, available at: http://www.banrep.gov.co/es/politica/monetaria
Political Conditions in Foreign Countries
The Colombians Abroad program continues to grow and reach more compatriots are already 1,170 Colombians living in other countries. Colombians living in other countries, regardless of their immigration status, may by contract Contractual voluntary savings apply for credit for the purchase of new or used housing, release of lien, housing construction and home improvement all in Colombia.
Voluntary Savings process lasts a year and is looking for people to save at the end of the process, at least the value of a salary in the country of residence (http://www.elespectador.com/noticias/economia/avanza-plan-del-fna-colombianos-el-extranjero-adquieran-articulo-595700)
On the other hand talking about visa there are the countries where the Colombians can go without Visa:
1. Andorra
2. Argentina
3. Bahamas
4. Barbados
5. Belize
6. Bolivia
7. Brazil
8. Chile
9. South Korea
10. Dominica (up to 20 days)
11. Ecuador
12. El Salvador
13. Philippines (up to 30 days)
14. Georgia
15. Guatemala
16. Honduras
17. Israel
18. Kosovo
19. Jamaica (up to 30 days)
20. Maldives (up to 30 days)
21. Mexico
22. Palau
24. Panama
25. Paraguay
26. Peru
27. Dominican Republic
28. Russia
29. Saint Kitts and Nevis
30. Samoa
31. Saint Vincent and the Grenadines
32. Singapore (up to 14 days)
33. Hong Kong
34. Trinidad and Tobago
35. Turkey
36. Uruguay
37. Venezuela
European countries do not require visas from December 3
1. Germany
2. Austria
3. Belgium
4. Czech Republic
5. Denmark
6. Slovakia
7. Slovenia
8. Spain
9. Estonia
10. Finland
11. France
12. Greece
13. Hungary
14. Iceland
15. Italy
16. Latvia
17. Lithuania
18. Liechtenstein
19. Luxembourg
20. Malta
21. Norway
22. Netherlands
23. Poland
24. Portugal
25. Sweden
26. Switzerland
(http://www.eltiempo.com/politica/gobierno/paises-que-no-piden-visa-a-colombianos/15934813)
Special Local, State and Federal Laws
Laws are a huge system of rules that all individuals and companies must follow in order to govern behavior from all the people in a country and thatās why we have to know and follow them to have a sustainable company. Below we find some of the most important law we have to take care of:
Prohibition of forced and compulsory labor: The Constitution prohibits slavery, servitude and trafficking in persons in all its forms. The Labour Code defines forced labor as work that is socially required.
Source: Art. 17 de la ConstituciĆ³n de Colombia de 1991; Art. 07 del CĆ³digo del Trabajo, modificado en 2013.
Freedom to change jobs and right to waive: Labor law states that workers have the right to change jobs after giving proper notice to your employer.
Source: Art. 62 del CĆ³digo del Trabajo, modificado en 2013.
Inhuman Working Conditions: Working hours can extend beyond the regular working hours forty-eight hours a week and eight hours a day. However, the total working hours including overtime must not exceed ten hours a day.
Source: Art. 161 a 168 del CĆ³digo del Trabajo, modificado en 2013
Minimum age to work: Article 35 of law 1098, 2006, states that the minimum age for admission to employment is fifteen (15) years. To work, teenagers between 15 and 17 require the appropriate authorization issued by the Inspector of Labour or, failing that, by the local authority.
Tu Salario (2013), obtenido el 13 de febrero de 2016, available at: http://www.tusalario.org/colombia/Portada/ley-laboral/trato-justo/menores
MinTrabajo (2016), obtenido el 13 de febrero de 2016, available at: http://www.mintrabajo.gov.co/preguntas-frecuentes/jornada-de-trabajo.html
Import/Export Regulation (Political Forces)
In order to control the amoung that is been exported of imported the government has established some general rules to import or export to of from Colombia, those rules are:
For import: Consist in six simple steps, that determine de process of import, describing how should people import. Those six steps are:
* Finding which āsubpartida arancelariaā is best work for the importer.
* Subscribe in to the Camara de Comercio, in order to acquire an importer register.
* Develop a marketing research to know how the performance of the product you choose is.
* Identify the product, by knowing if it is under regulations by the government or if it can be imported easily.
* It must be reported to the Ministerio de Comercio, Industria y Turismo which importation the company is going to do. It should contained the description of the product, the costs, the country selling that product.
* The payment of the merchandise, and other expenses.
* Other aspects to deal with, such as checking Inconterms, cargo responsibility.
* Process of nationalization.
For export: In order to export, an exporter must complete with series of steps, those steps are:
* Get ready to export: by knowing which product has the highest potential to be exported.
* Identifying internationalization potential, and requirements for product: finding all the potential markets your product can get in, evaluated access conditions.
* Requirements of market and potential buyers: Find out which are the opportunities and tendencies of those markets the product is going to be in.
* Logistics and physical distribution: Determine how the product is going to get to the international market, which Inconterm is going to be use, what is the kind of insurance and transportation itās going to be use.
* Commercial management: the product must be shown in order to get know by people who has not try it yet.
Procolombia.co (2016). Taken on February 15th 2016. From: http://www.procolombia.co/ruta-exportadora/
Mincit.gov.co. (2016). Taken on February 15th 2016. From: http://www.mincit.gov.co/mincomercioexterior/publicaciones.php?id=16268&dPrint=1
Lobbying Activities
The lobbying activity is a political activity that is regulated because of the potential impact in the integrity of decision-making. Itās important to regulate this activity because it stands between private interests and public decisions. In Colombia doesnāt exist a specific law that regulates the lobbying activity, but there is a proposition from various people from the government to issue a regulation in these areas to provide certainty to the authorities that are addressed by lobbyists and allow the exercise of this activity in a transparent manner. Even though it doesnāt exist a specific law to regulate this activity, it does exist a law, Ley del estatuto anticorrupcion, where it prohibits the gifting or benefit not justified for favoring him or another person.
Taken from: http://leydelobby.cl/que-es-el-lobby.html
Taken from: http://www.portafolio.co/opinion/analisis-regulacion-lobby-colombia
Size of Government Budgets
The government budget for 2016 is for an amount of COP$215, 9 billion, meaning that, comparing with the year 2015, is has had a growth of 2, 5%. This budget is destine for investing and use it on aspects such as education and agro (government has destine COP$31, 1 billion in those two aspects). Also the government is looking to invest part of that budget in certain types of investments. For direct investments the government has destine COP$40,6 billion; for investments throw local entities, the government has destine COP$43, 3 billions, meaning that with that investment the growth of transfer investments will be approximately of 9, 3%. The chart below explains how the budget is divided by sectors and how much is destine to those sectors.
Minhacienda.gov.co (2016). Presupuesto General de la Nacion. Taken on february 13th 2016. From: http://www.minhacienda.gov.co/portal/page/portal/HomeMinhacienda/presupuestogeneraldelanacion/ProyectoPGN/2016/08112015-Folleto_PGN_2016-WEB.pdf
World Oil, Currency and Labor Markets
Oil is trading near a 12-year minimum, while the West Texas Intermediate fell more than 16% in the past five sessions. WTI for March delivery touched US $ 26.42 a barrel at 11:09 am London time.
Low oil prices dropped by tens of billions of dollars the value of reserves of nations and energy companies. In Colombia the dollar traded at record high of $ 3,446 in response to falling oil prices.
Taken from Revista Dinero in February 14, 2016. El dĆ³lar toca mĆ”ximo histĆ³rico de $3.446 en 'jueves negro' published in February the 11th, 2016. Available at: http://www.dinero.com/economia/articulo/el-precio-del-petroleo-llega-a--minimo-en-12-anos-y-el-dolar-llega-a-maximo/219131
Precio del PetrĆ³leo Hoy. Taken February 14, 2016 from http://www.preciopetroleo.net/
Location and Severity of Terrorist Activities
(http://www.kienyke.com/politica/las-zonas-de-mas-violencia-en-colombia/)
Local, State and National Elections
Colombia counts with different kind of elections, presidential ones (made in the last Sunday of may), the congress ones which are divided in 1. The representative chamber and 2. The senate of the republic. Colombia have also elections for governors and mayors together, all of that elections are made by popular choice.
Local, state or national governments could affect every company in different ways, by changing laws, implementing new systems, creating new governmental companies and more, thatās why every company have to take care and have prevention of each government in order to be benefited from its rule instead of been affected.
Registraduria PĆŗblica (2016), obtenido el 13 de febrero de 2016, available at: http://www.registraduria.gov.co/Asi-se-organizan-unas-elecciones.html
The political sector presents actual and potential restriction on the way an organization operates. Therefore, political, governmental and legal forces can represent key opportunities or threats for organizations.