VZCZCXYZ0004
PP RUEHWEB

DE RUEHBO #2347/01 2042209
ZNR UUUUU ZZH
P 232209Z JUL 09
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 9920
INFO RUEHBR/AMEMBASSY BRASILIA 9043
RUEHCV/AMEMBASSY CARACAS 2509
RUEHLP/AMEMBASSY LA PAZ JUL LIMA 7806
RUEHQT/AMEMBASSY QUITO 8502
RUEHZP/AMEMBASSY PANAMA 3922

UNCLAS BOGOTA 002347 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON ENRG EPET PGOV CO
SUBJECT: DCM VISIT HIGHLIGHTS U.S. PRESENCE IN COFFEE COUNTRY 
 
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SUMMARY 
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¶1.  (U) On July 1 and 2, the DCM traveled to the heart of Colombia's 
coffee country to inaugurate three new AmCham branches and celebrate 
the 50th anniversary of the Manizales Binational Center, all 
critical institutions to U.S. presence in the region.  Coffee 
cultivation and processing remain the economic and cultural backbone 
of the region, but local officials and business leaders concurred 
that the region must adapt to new economic realities by pursuing 
strategic development opportunities.  End summary. 
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LOCAL GOVERNMENT SEEKS COMPETITIVENESS AND DEVELOPMENT 
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¶2.  (U) The DCM met separately with Caldas Governor Mario 
Aristizabal Munoz, Risaralda Governor Victor Manuel Tamayo Vargas, 
and Juan Manuel Llano Uribe, Mayor of Manizales, the capital of 
Caldas.  All three officials expressed the need for reinvigorated 
economic development, support for bilingual education and interest 
in deepening U.S. ties with the region. 
¶3.  (SBU) Caldas Governor Aristizabal stated that the region must 
evolve beyond its traditional dependence on coffee production, which 
directly or indirectly supports 900,000 people in Caldas alone, the 
overwhelming majority of its population.  The average coffee grower 
is over 60 years old, has only two years of formal education, 
cultivates 1.7 hectares (4.2 acres) of land and earns less than the 
Colombian minimum wage of COP$497,000 per month (approximately USD 
$235).  Governor Aristizabal presented to the DCM his comprehensive 
strategic development plan to improve the department's 
competitiveness and productivity.  With it, he seeks to address 
concerns the DCM heard separately from local business leaders that 
the region's resources have not been fully tapped. 
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OPPORTUNITIES IN BIOFUEL AND KNOWLEDGE INDUSTRIES 
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¶4.  (SBU) Governor Aristizabal was enthusiastic about Caldas's 
potential to develop an alternative energy industry and increase 
existing mining projects.  Raw materials for biofuels, especially 
castor seeds and jatropha, grow easily on land not suitable for 
either coffee cultivation or cattle grazing, the region's 
agricultural mainstays.  These crops offer a potential livelihood 
for the 350 families of formerly displaced persons who have returned 
to their otherwise agriculturally unproductive land.  Farmers with 
already productive land can diversify their crops and maximize 
land-use by growing biofuel crops. 
¶5.  (SBU) The governors of Caldas and Risaralda both seek to develop 
their departments' rich ecological resources into hydropower, 
ecotourism, and mining industries.  Caldas Governor Aristizabal sees 
the potential for hydro-electric mega and micro plants and noted the 
department's recently identified uranium reserves. 
¶6.  (SBU) Governor Aristizabal wants to foster economic and social 
development in the department by encouraging knowledge-based 
industries.  Already the region is a hub for the call center 
industry, which he hopes will expand its presence.  He also sees the 
potential for developing biotechnology around the existing 
agricultural sector, both to foster new economic development and to 
make existing agricultural endeavors more productive.  Caldas and 
Risaralda import over half of the population's basic staples, 
despite their agricultural richness.  Governor Aristizabal believes 
the department's agricultural sector can replace the imports with 
improved local supply.  In response to the DCM's inquiry about the 
potential for health tourism, the governor noted that despite 
Caldas's strng health infrastructure, there are currently no such 
projects underway. 
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BILINGUAL EDUCATION IS KEY TO DEVELOPMENT OF HUMAN CAPITAL 
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¶7.  (SBU) Bilingual education is the cornerstone of plans to equip 
the local population with the skills required by new knowledge-based 
industries.  In close partnership with the Manizales Binational 
Center (BNC), the city is pursuing an ambitious plan to establish 
bilingual programs in all public elementary schools.  Critical to 
this initiative is a teach-the-teachers program for which the BNC is 
providing English immersion opportunities and ongoing training. 
Governor Aristizabal and Manizales Mayor Llano expressed 
appreciation for the Manizales BNC and USG support of its programs. 
The DCM attended a reception for the 50th anniversary of the 
Manizales BNC, whose English language programs have already served 
nearly 1,700 students in 2009.  He also visited a BNC-sponsored jazz 
workshop for over 30 young musicians that hosted instructors from 
the Julliard School in New York. 
¶8.  (SBU) In addition to strengthening traditional schools through 
bilingual education programs and improved infrastructure, Caldas is 
encouraging higher levels of education in the indigenous and rural 
populations by designing innovative schools.  Governor Aristizabal 
detailed the creation of schools where students from rural areas 
develop agricultural businesses as a means of learning business and 
entrepreneurial skills, along with traditional subject matter.  To 
date Caldas has created 26 such schools and piloted coffee, juice, 
and jam businesses.  The National Federation of Coffee Growers has 
implemented in over 1,000 rural schools a one-room schoolhouse 
concept where students learn at individualized rates and have the 
flexibility to support their families during harvest season without 
losing a whole year of school.  These schools have a much lower 
drop-out rate thanks to the new methodology.  Caldas is working in 
partnership with the NGO One Laptop Per Child to increase the number 
of computers in the region's schools and with other private and 
non-profit organizations to increase digital access throughout the 
department.  The DCM encouraged Governor Aristizabal to look into 
USAID's Last Mile Initiative. 
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UNDERPINNING ECONOMIC DEVELOPMENT: TRANSPORTATION AND SECURITY 
--------------------------------------------- -------- 
 
¶9.  (SBU) Governors Aristizabal and Tamayo emphasized that economic 
and social development required a stable security environment. 
Although Caldas is a secure department and has not suffered from 
high levels of violence, Risaralda is recovering from a more violent 
history.  Its eastern region, which includes 10 of its 14 
municipalities, experienced guerrilla activity and displaced 
population issues.  Although guerrillas are no longer present, 
Governor Tamayo noted a rise of common criminal activity throughout 
Risaralda.  Both Governors praised the involvement of the national 
government and military in improving the security of the region. 
 
¶10.  (SBU) Improving Caldas's deteriorating physical infrastructure 
is a critical component of Governor Aristizabal's development plan. 
The governor prioritizes rebuilding roads and expanding access to 
potable water.  Caldas budgeted COP$790,500,000,000 (approximately 
USD $375 million) for all infrastructure projects and has already 
financed 75 percent of the budget.  Governor Tamayo also noted that 
Risaralda has weak physical infrastructure, especially in its 
eastern region.  Both departments are collaborating with other 
departments and the national government on regional air, road and 
port projects.  Governor Aristizabel also asked whether his 
multimodal port project, La Dorada, could benefit from the recently 
awarded USTDA grant to a similar project in Puerto Salgar.  The 
Board of Directors of Puerto Salgar will follow up on this request 
with the governor. 
¶11.  (U) Mayor Llano elaborated on the importance of a new airport 
with greater capacity for both passenger and cargo flights as a 
critical element of regional infrastructure and development plans. 
Existing local airports lack capacity to land large planes and 
suffer from frequent delays due to local weather patterns and 
outdated technology.  Separately, local business leaders lamented 
the failure to capitalize on the strategic location of coffee 
country, which is located at the center of the so-called 
Bogota-Medellin-Cali Golden Triangle which produces 70 percent of 
the country's GDP.  Improved roads and a better airport offer the 
potential of enhancing the region's competitiveness. 
--------------------------------------------- - 
AMCHAM AND USAID ARE CRITICAL TO U.S. REGIONAL PRESENCE 
--------------------------------------------- - 
 
¶12.  (SBU) At the inaugurations of new AmCham branches in Manizales, 
Pereira, and Armenia, local business leaders repeatedly expressed 
concern over the status of the U.S.-Colombia Free Trade Agreement. 
Business leaders view passage of the FTA as critical to the region's 
economy and the strength of the bilateral relationship.  The DCM, 
accompanied by the Commercial and Agricultural Counselors, noted 
President Obama's support for the FTA contingent on Colombia 
addressing concerns on labor and human rights issues during his 
meeting in Washington with Colombian President Uribe.  The DCM also 
underscored the important role of AmCham branches in promoting the 
bilateral commercial relationship, regardless of the outcome of the 
FTA. 
¶13.  (U) Both government and business leaders expressed great 
interest in extending U.S. programs, specifically USAID projects, in 
the region.  The DCM noted the success of such projects, which he 
saw firsthand on a visit to Super de Alimentos, a Caldas candy 
business.  With USAID support it has created 2,400 jobs along the 
entire value chain and improved its business practices, as well as 
the lives of its employees.  The DCM encouraged local leaders to 
reach out to USAID and other U.S. entities with specific ideas for 
further collaboration. 
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MEDIA COVERAGE OF TRIP EXTENSIVE 
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¶14.  (U) The visit received extensive local print coverage.  Press 
conferences were held following the inaugurations of the AmCham 
branches.  Press also covered the DCM's visit to the jazz workshop 
and the BNC's 50th anniversary reception.  Resulting media 
placements included an article in La Republica, an economic and 
business daily (readership: 46,600); several articles and photos in 
La Patria, local Manizales daily (readership: 53,600) and in El 
Diario, local Pereira daily (readership: 43,200); an article in La 
Tarde, local Pereira daily (readership: 43,500) and in Primera 
Plana.com, an online international tourist newsletter. 
 
BROWNFIELD