In spite of Colombia's economic growth, Colombian Coffee Growers Worried...

Cafeteros rethinking strategy

Coffee growers in Colombia are rethinking their strategic, and trying to lower production costs while keeping the quality as high or better. 

However, a quick research of the global and US markets indicates that the issue is that coffee retailers are trying to improve a variety of coffee crops from their suppliers in Central America and Vietnam, major competitors to Brazil and Colombia.  Cafeteros are advised to both diversify and blend their crops into new varieties, by enhancing and creating new specialty grains.  Besides, further research indicates that from the buyers' perspective, it would be smarter to bundle coffee exports with other agricultural products such as banana and cocoa, both of which are growing markets with great profitability.  In order to do this, coffee growers would need to invest in other crops in other Colombian regions or partner with banana and cocoa leaders as well, thus creating multi-crop enterprises possibly with the government support or NGO's interested in this venture. Each one of these products sell together in most coffee retail places and they encompass together a good proportion of larger sales markets as well. Market penetration of other markets like Europe, and France, and retaking a clear presence in the Tour de France advertisement and promotion are key.  The marketing 4 Ps are good for coffee growers in the growing Latin American economy. However, the model described here could be a transparent one, where Colombian Coffee Growers Federation can still be quite independent and the actual plan and its implementation left for the export brokers to accomplish.

Cafeteros are very worried as their revenue and net profits decreased in 2012 with respect to the previous years, with a similar trend for 2013, in spite of the economic growth, and even the perception of Colombia as a new solid emerging economy in the region.

American Stock Indexes on the Rise

American indexes continue to rise and the DJI is expected to surpass the 15000 index for the first time in history.

Successful Peace Process in Colombia Projects Economic Growth

The Regional and Global Impact of the Peace Process in Colombia

For many years there have been many attempts to bring peace to history armed conflict in Colombia.  Probably, during President Andrés Pastrana's term, the nation came close to reaching that historic milestone.  However, I believe that vision failed because there was no business continuity, in the perspective that the process needs to be handled by a supra political organization, not necessarily international.  When I say supra political, I mean gathering all political forces beyond the organized existing parties, and the opposition, either organized or not. The fact that the presidential term in Colombia is only four years is a significant factor if every president has a new vision.

I believe that President Juan Manuel Santos is doing a great job and Colombians, and internationl observers, expect the best from the peace process.  While there is a need for overall will to make and keep peace, it is important to preserve life, and end violence.  The will to attain a peaceful and civilized society that generates culture rather than violence, where the youth raises their educational level and carries books instead of weapons is a milestone that not only Colombia but the entire Latin America needs to focus on.  I believe that a general change of attitude is and has been a good starting point, but also the feeling of oppression is the counterpart for many of those who have little hope for a career, and the opportunity to life a peaceful life.  This is why I see that what missed in President Pastrana's model was the need for further vision.  So, I think that the armed conflict should not only include demilitarized zones but a perspective and a plan for economic growth, and obviously the integration of rebels to the civil nation voluntarily and peacefully.  Since the conflict involves a great deal of political ideology and other relevant factors, the perspective of the demilitarized zone is that of officially opening a new community.  In several countries worldwide, there are sub nations such as aborigines and reserve nations in the United States.  During my MBA days, I started my first attempt to the International Business class with Prof. Rodríguez at Montclair State University, but after a few weeks I as disappointed about the fact that the class is based on the Indian communities in the USA only as an entire nation, which to me did not seem to be "international business".  So I actually took the class at a later time with another professor, but the weeks I was in that class inspire me to believe that a similar process could bring peace to Colombia, and that guerrillas like FARC, ELN, and others can be converted into political parties and actually found cities and formal political divisions in those territories.  Similarly, the economy of that new nation can create their own world with their own political representation once they are ready to deliver the weapons and live in the civilized world.

The positive impact to the region would be enormous.  The economic diversification of Colombia could allow the full exploration, and research and development of agriculture, cattle, and mine industries, among others; and a variety of underdeveloped transportation models could be created.  I believe in the full reappearance of the national railroad company, and its integration my dream for the Americas, that some day one can travel by developed highways or a railroad system to joins South America from Patagonia to Alaska, and that no one has to bother about the guerrillas in South America, or the gangs in Central America, or other disturbing communities in its path, just the way it happens Western and Eastern Europe.  Also, the transportation through Colombian rivers, and the on-going development of channels to join the Atlantic and Pacific Oceans will have an accelerated development.

This peace process will greatly united the South Americans and secure the tourism of the nation with the many unexplored regions full of wealth and beauty, as well as those historically given for granted.  It can also enhance the oil and coal industries for both domestic consumption and exportation, when appropriate.

Finally, Colombia would become another economic leader in the region, with further integration with Brasil, and the original Great Colombia nations. Then, Colombia could be a much better role player with North America, as well as other emerging economies in the world, with well calculated protectionist laws in place.

Factors for a Crisis

Money Exchange and Other Factors
Related Link

Economists have carefully analyzed the recovery from global economic crisis, and have made very few recommendations and listed very few factors, if any.  I have mentioned in an earlier blog that excessive regulation could be listed as a factor.  In that sense, those controls, that try to make business more ethical, inhibited the ability to do business for some. Likewise, the mechanisms use to enhance security -not only in the USA- can be perceived as intimidating or even discriminatory for many individuals, affecting their ability to partake in economic activities or even being productively employed.  

However, there are other factors.  For instance, the instability of money exchange rates affects the economic balance resulting from the Euro crisis, caused systematically by the slow regional economic growth and the deficit due to the Greek default and other countries in need of a bail out. Similarly, Monetary regulations in China have not looked at the global impact and subsequent retro-impact not to maintain a stable money exchange with other countries. 

Significantly so, since aggregate economics have acquired a more complex dimension doing business on the web, I have observed that there are a few main streams, and that they should converge as martingales that can be equated in an equilibrium point. Such it is possible to list the coins that are aligned with or pegged to the dollar and Euro, and those that are neither aligned nor pegged and are in constant adjustment in a protectionist fashion, which while normal, on excess could have critical consequences as the difficult financial times the world is living today.

I am enclosing my presentation on Money Exchange during my MBA years at Montclair State University. The presentation was part of my International Business class.

Call Centers go to the Phillipines

Phillipines beats India

In an unprecedented strategic outcome, Phillipines, where it rains torrentially these days, beats India in the call center market. This takes place at a time, when Indians consider that the population living at the poverty level is still there due to the lack of creation of safficient jobs. This is also in spite of the US perception that India is being given sufficient promotion to their emerging market competing also regionally with China.

On the other hand, India which deals with a diverse population with a good percentage still living below the poverty level suggests that it has not generated enough employment to overcome it, in spite of the large number of H1B visas and outsourcing jobs migrated to that country from the USA in the past decade.

IT Sectors Recent Views and Questionable Predictions

Will there be a new predictable 

IT Stock Bonanza?

As the economy shows some signs of recovery and corporations feel in the mood to invest in information technology, positive-minded CE0s drive decisions that can also raise the IT sector into a multi-year bonanza.

The politics economics are quite complex and the lack of stability in other aggregate economic sectors could convey an unpredictable scenario in a financial sector that has suffered significantly since the beginning of the millennium.

Apple shows signs of turning around an unusual recent slip, and has overcome its results to nearly 40% YTD growth.

Other companies such as Oracle, IBM, and Microsoft have provided a perspective towards a long-term recovery in the information technology financial market landscape.

The Tough Life of Artists

 An art and fashion exhibit at the Museum of the City of New York

In a difficult, yet recovering economy, artists of all genres are facing the most difficult times of their life ever.

A study shows how the reduction in the number of grants, scholarships, a direct government funding has greatly affected the artistic world in many dimensions, including galleries, museums and activities and events at these and other venues.

But most importantly the quality of life seems to be deteriorating, in comparison to others who work regular jobs, and have kept it consistently for many years. But artists could smile as the economy improves greatly in the right direction.

It seems though that the ("private") philanthropists have been more consistent with their investment in art, as non-government organizations (NGO’s), than the government itself.

The return on investment in art has greatly failed to meet the expectation of many artists who have for the most part put a great deal of their talent capital and their personal investments, as well as that of venture capitalists.

However, a small minority of artists has consistently succeeded in project networking and has predictively attained a resilient increasing income, which entices them to further creative work, validating their sense of independence as well as their ability to work in group projects, with private and public investments.

Certainly, museums, historic art sites, galleries, and artists deserve better appreciation of their talent and creative capital in a difficult economy.

A couple of decades ago, I read an interesting article on professions that suggested for artists, writers, and poets, to be a more loved community among professions in the 21st century, in comparison to professions such as engineers, doctors of medicine, lawyers, and other liberal arts and traditional professions.  While the truth remains to be seen, the quality of life fluctuates with more realistic difficulty than those with white-collar jobs, wearing a tie or not, or even solidly established blue-collar professionals or technicians.