Rural regions in Colombia have untapped potential to boost wealth and well-being in the country. Despite remarkable economic growth over the last two decades, Colombia’s development policy needs to increase its focus on rurality, as regional inequalities remain high by OECD standards and structural challenges still prevent greater development in rural places.

Three billion people live in rural areas in developing countries. Conditions for them are worse than for their urban counterparts when measured by almost any development indicator, from extreme poverty, to child mortality and access to electricity and sanitation.

When it comes to high-tech innovations, the United States leads the path amongst OECD economies. However, in the context of the national record-breaking activities in high tech innovation, there lies distinct and growing geographical disparities. This report dives into strategies for better understanding innovation that occurs in rural places, and places outside major metropolitan areas, often going beyond science and technology.

Cities are not only home to around half of the global population but also major centers of economic activity and innovation. Yet, so far there has been no consensus of what a city really is. Substantial differences in the way cities, metropolitan, urban, and rural areas are defined across countries hinder robust international comparisons and an accurate monitoring of SDGs. The report Cities in the World: A New Perspective on Urbanisation addresses this void and provides new insights on urbanisation by applying for the first time two new definitions of human settlements to the entire globe: the Degree of Urbanisation and the Functional Urban Area.

This OECD National Urban Policy Review of Colombia provides a comprehensive assessment of the country’s national urban policy ‘the System of Cities’ and of different sectoral policies that affect urban life: transport, housing, land use, and digitalisation. Colombia has entered the 2020s facing five intertwined crises: the COVID-19 pandemic, rising levels of poverty and inequality, a wave of mass international migration, the peace process consolidation, and the climate emergency.

After a robust recovery from the COVID-19 crisis, Colombia's economic growth is returning to a low potential. Medium-term growth prospects depend on maintaining Colombia's strong macroeconomic framework and enacting reforms to create a business-friendly environment which can attract high levels of investment. Implementing fiscal consolidation and adhering to fiscal rules would prevent rising financing costs and safeguard debt sustainability. Reforms to raise tax revenues and improve spending efficiency are needed to create fiscal space for social and productive investment needs. Enhancing the investment climate requires reducing regulatory uncertainties and tackling corruption. Creating connected transport infrastructure, strengthening subnational government capacities and improving equalisation mechanisms in the fiscal transfer system would foster balanced development across the country. Addressing informality, gender gaps, and improving education quality would boost productivity and reduce social disparities. Investing in climate adaptation, renewable energy, and establishing stable regulatory frameworks are key for a climate-resilient economy and achieving carbon neutrality by 2050. SPECIAL FEATURES: RAISING PRODUCTIVITY; REDUCING LABOUR INFORMALITY; REGIONAL CONVERGENCE