World Bank outlines five strategies to reduce poverty and regional gaps in Colombia

World Bank outlines five strategies to reduce poverty and regional gaps in Colombia
Banking & Financial Services
Webp axelvantrotsenburg
Axel van Trotsenburg, Senior Managing Director | The World Bank

Colombia continues to face significant territorial disparities, with regions such as Tumaco experiencing high levels of poverty despite the efforts of local communities and authorities. These inequalities are evident in access to education, healthcare, and employment, as highlighted in the World Bank’s recent Poverty and Equity report, "Trajectories." The report shows that poverty rates differ widely between regions like Bogotá, Chocó, and Cesar. An upcoming World Bank report, "Regional Disparities and the Path to Integration," also points out economic differences and lack of integration across various areas of the country.

Peter Siegenthaler, Country Manager for Colombia at the World Bank, outlined five policy areas that could help reduce these territorial gaps and combat poverty. He stated, "First, we must invest in equipping people—regardless of where they live—with access to quality education and healthcare, public services, and productive assets such as financial capital. This could include, for example, a national policy for educational materials in core learning areas, and prioritizing rural, remote, and peri-urban zones for primary healthcare services."

He continued, "Second, through targeted infrastructure investment, we must ensure physical and digital connectivity in poorer and more remote areas, while also strengthening links between major economic centers and external markets. Today, more than 20 percent of Colombian municipalities suffer from limited access to economic hubs that could offer greater employment and services."

"Third, we must strengthen subnational institutions and their coordination with national entities, including their technical, fiscal, and management capacities. This could involve investing in municipal capacity to collect local revenues and manage resources effectively," Siegenthaler said.

"Fourth, we must reinforce the national and subnational fiscal frameworks to sustainably promote fiscal equity, enable necessary public investments, and ensure efficient and targeted social spending. This includes reducing rigidities in public expenditure to meet both fiscal goals and development objectives—without relying solely on cuts to public investment," he added.

"Fifth, we must build stronger partnerships with the private sector and other actors to mobilize capital and scale up policies aimed at sustainably reducing poverty across the territory. In La Guajira, joint efforts between private companies, government, and local communities are helping meet basic needs in food security, water supply, and energy solutions," Siegenthaler explained.

Siegenthaler emphasized the importance of learning from successful experiences in Colombia and scaling them up. He said, "On the International Day for the Eradication of Poverty, observed on October 17, let us remember that Colombia has successful experiences in closing gaps and fighting poverty. Learning from these and scaling them up is a step forward in expanding opportunities for all, promoting social mobility, and driving economic growth."

The World Bank’s recommendations come as Colombia faces a crucial moment in addressing long-standing inequalities among its diverse regions and population groups.