Colombia’s Economic Pendulum: Right-Wing Victory and the Return to Old Economics

• Right-wing populist Abelardo de la Espriella has won the Colombian presidential election, ending the country's first left-wing administration under Gustavo Petro.
• The new government is signaling a pivot toward deregulation, austerity, and expanded resource extraction.
• Concerns are mounting regarding the potential dismantling of social programs and a disregard for environmental commitments.

Economic Policy Shift

• De la Espriella prioritizes growth over redistribution, proposing significant tax cuts, a 25% reduction in state size, and aggressive mining expansion, including fracking.
• This contrasts sharply with Petro’s efforts to lead global discussions on a new international economic order, climate responsibility, and the energy transition.
• The administration plans to tackle the national debt (52% of GDP) through strict fiscal austerity, threatening social services that support 16 million people living in poverty.

Criticism and Outlook

• Economists question the feasibility of the new president's 7% annual growth target, noting that previous commodity booms failed to address deep-seated inequality.
• Critics point to the example of El Salvador, where similar growth-first policies under Bukele have led to reduced foreign direct investment and sluggish economic growth.
• The cabinet appointments, including a climate-change denier as foreign minister, suggest a major retreat from environmental policy and international diplomatic engagement.
• Experts warn that structural inequality, which is a result of political decisions, will likely worsen under the new government's focus on deregulation rather than addressing the uneven global financial system.