Political, Governmental and Legal

POLITICAL, GOVERNMENTAL AND LEGAL VARIABLES

1. Government regulations or deregulations:

The regulations are understood like the establishment of norms, rules or laws in a respective location. The objective of these regulations is to keep the order, maintain a control and certify the rights of all the persons that are part of the community. As a firm, we need to work by the side of these regulations, so we can work in an appropriate and legal enterprise, don’t have problems with the law and also be an ethical company.

Regulations:

In Bogotá, the mayoralty states the Regulation 043 of 2006, which is the one that controls the realization of public displays and events in the city. This regulation includes aspects like: Purpose and scope, notion of public agglomeration, characteristics and specifications of edifications and facilities, control of edifications and facilities, contingency plans, evaluation of safety and security resources, participation of technical authorities and force of permissions. All the aspects mentioned are the ones that different event company’s needs to take in count if they want to realize a perfectly legal and decent event in the city.

2. Changes in law taxes

In the last years, the government has made some changes in the law taxes around the country, including Bogotá. We can understand a tax as a obligatory monetary contribution to the state’s revenue, assessed and imposed by a government. For example, in the last years there have been some changes like:

The government has announced important changes in the application of taxes with the Regulations 1793 and 1794. This regulation highlights the new way of calculation of the quarterly advances in May and September of each year, from part of the annual IVA reporters.
With the Law 1607 of 2012, the government want to change in three big forms the way we pay and understand our taxes. This three forms are: Tax of revenue, IVA tax and payroll contribution.

3. Special tariffs:

The special tariffs are those exceptions that benefit people who have a determinate product or service. For example: In the IVA tax, there are special tariffs for the people that:

Have insurance taken from abroad: The pending rate will be matched to the prevailing rate in Colombia.
Shipment services: Rates of production, manufacture or construction of real custom, depend on the rate of the resulting fine.

4. Political action committees:

There’s different kind of political action committees in Bogotá that can affect in diverse ways the business that we’re developing. For example: Partido Cambio Radical, Partido MIRA and Partido Polo Democrático. These political committees have different approaches to the way they apply political actions, so this can affect in different ways my business because these parties can be in favor or against the service that I’m providing to the society.

5. Voter participation rate

The voter participation rate is a percentage that shows the quantity of people that applied the right that they have to vote for their representatives. For example, in the election for president and congress the percentage for Bogotá were:

President and Vice-president election: 48,31% (2.514.235 voters)
Congress election: 35,54% (1.844.016 voters)

These statistics can be useful to our business in the form that we can assemble an idea of how many people in the city are committed to vote for their representatives.

6. Number, severity, and location of government protest.

This aspect shows the number of protest that occurs in the city, the severity of the ones mentioned above and the location of the same ones. In Bogotá:

Number of protests: The Data Base of Social Struggles of Cinep registered 1.027 in the whole country during 2013, the highest number of struggles since 1975. The report shows a graphic in which Bogotá registered approximately 120 struggles in the whole year.

Severity of protest: In the Paro Nacional Agrario, one of the biggest manifestation in the history of the country, the result of these protest left 8 death people at least, more than 400 injured and at least 512 detained people.

Location: Normally, the protests are given in these locations of the country: Bogotá D.C., Nariño, Tolima, Córdoba, Magdalena, Antioquia and Caquetá.

7. Number of patents

The patents are the exclusive right granted to an invention (product or procedure) that show a new way of doing something or a new technical solution to a problem. In the country, the number of patents has raised in a significant way. An article shows us these statics:

According to the number given by the Superintendence of Industry and Commerce, the patents solicitudes went from 1800 in 2009 to 2300 in 2012, which gives an increasing of 28%.

8. Environmental protection laws

This laws are strictly made for the perseveration and care of the natural environment that surround the city, entities of the society have to strictly follow these rules and statements so they don’t get into legal problems with the state and, most importantly, to don’t harm the environment. Examples of these laws are:

The Regulation 19 of 1996 is the law in charge of the protection and defense of the environment that business has to take in count. This regulation is a compendium of different facets like: Achieving the consolidation of the safe, healthy and aesthetically joyfull urban and rural environment, prevent the possible social and environmental impacts caused by the use and exploitation of the environment and the natural resources, promote certain citizen behavior and knowledge of respect inside the rural and urban environment, stimulate the adoption and development of productive environmental technologies, keep and preserve the qualities of the urban and rural environments of the city and assure the fulfillment of the punishments that wants to preserve and recover the environment.

The Law number 99 of 1993 defines the fundaments of the environment policies in Colombia. This law obligates the environmental policies in Colombia to: The biodiversity of the country, owing to national interest and heritage of humanity, must be protected priority and exploited sustainably, Population policies take into account the right of human beings to a healthy and productive life in harmony with nature, wildernesses, water sources and aquifer recharge areas will receive special protection, The use of water resources, human consumption has priority over any other use, the formulation of environmental policies take into account the outcome of the process of scientific research.

9. Level of defense expenditures

The level of defense expenditures can be understood as the percentage of the country’s amount of capital that is assigned for the defense of the country. We can understand “defense” as the military forces in Colombia. Here are some data about this issue:

In 2010, Colombia spent 21,21 billions of pesos on Defense and Security, 90% of this budget was for functionality and 10% for investment.
In 2013, according to the numbers given by the Ministry of Defense, the inversion to the defense department of the country was of 24 billions of pesos. On that year, the global military spent was reduced in a 19% (1.75 billions USD). But, in the emergent countries these budget went up

10. Legislation on equal employment

This legislation works in pro of the equal employment, in public and private enterprises, for all the employees. In Bogotá, the main city in Colombia, we can find some legislation like:

The Substantive Code of Work, adopted by the Decree Law 2663 of August 5 of 1950, states the general principals that need to be taken in count like: Territorial application, relationships that regulate, public services, definition of work, occasional work, obligation of work, liberty of work, protection of work, equality of the workers, right to work, right of association and strike, minimum salary and guaranties, validation of the transaction and contracts.

11. Antitrust Legislation

These legislations are designated to secure the fair commerce and the protection of the consumers by blocking of the monopolistic activities and of illegal commercial restrictions.

12. Colombian-American Relationships

This aspect covers all the foundations of the relationships between Colombia and the United States of America. On the databases we can find information like:

The relationships between USA have been a priority for Colombia since 1822, when the mentioned country achieved the new republic and established a diplomatic mission in Bogotá. The bilateral relationship between Colombia and the USAV is based on the mutual interests with strategic partnerships, that encounter in mutual coordination and dialogue and this are the fundamental pillars for a relationship of mutual benefit. On this relationship is very important to review aspects like: Bilateral mechanisms, Free Trade Agreement, Ensemble Action plan about racial and ethnic equity, group of consular bilateral work, Complementary relative convent to the enforcement of technical assistance in the areas of cooperation on innovation, science, technical and technological, agreement about areal transportation between the both government, agreement of environmental agreement between the both countries and the economic profile.

13. Russian-Colombian Relationships

This aspect covers all the foundations of the relationships between Colombia and Russia. On the databases we can find information like:

Colombia and Russia stated diplomatic relationships in 1935. However, as result of the events occurred the 9th of April of 1948, Colombia suspended the diplomatic relationships with Russia. The 19 of January of 1968, the reestablishment of the relationships and the repertoire of the embassy of Colombia in Moscú. In 1991 the dissolution of the Soviet Union and the Union Republics that were passed to form the Commonwealth of Independent States (CIS) is given. The Russian Federation, now independent, rightful successor of the USSR was proclaimed and recognized as binding on all other international agreements concluded by it. Begins a new era of Russian-Colombian relations. Colombia, under the principle of the succession of States, expressed through statement issued on December 26, 1991, its decision to continue diplomatic relations he had with the USSR and expressed support for Russia occupied the seat of the USSR as a permanent member of the Security Council of the United Nations.

14. Import and export legislations

These laws are the ones that control all the materials, products and goods that exit and enter the respective country. These laws are crucial for the economic flow of the country. On these legislations we can find aspects like:

Import with a franchise, importation for passive perfectionism, importation in the same state and the accomplishment of the guaranty.
The aspects that have to be taken in care in the moment of the importation or exportation are: Classification of the product in a tariff position, study on market intelligence, definition of the INCOTERM to negotiate, definition of the way of payment and logistics risks.

15. Government fiscal and monetary policy changes

In the past years in Colombia, there haven’t been a lot of changes when we talk about the fiscal and monetary policies of the country, but there has been some important changes when we talk about the same laws, that are the ones that take in count the control of the labor contracts and the relationship between the metals that are used of the coins that circulate along the economy. However, we can find important changes in these laws like:

The tax reform that was approved in 2012. Is a reform of the structure of the tax system in Colombia that is protected by the law 1607 of 2012. The main goal of this reform is the generation of employment and the reduction of inequality. It also searches to improve the distribution of the tax charge so it can favor the Colombians with less income.

16. Political conditions in foreign countries

These conditions are the ones that the country that is inside a foreign one imposes a set of rules that they have to accomplish so the relationship between both of them finds a good stable point.

17. Special local, state and federal laws.

These are the state and federal laws that governed a determinate city or population. On the business that we are in, that is the event organization business, we can find specific laws that condition the application of or labor like:

The Decree 350 of 2003 is the one that occupies about the regulation of raffles, games, competitions, public events and massive event in the city. These law covers very specific aspects like: Localized games, raffles, games of ability and skill, competitions, massive events, public shows, supervision and raise of the tax.

18. Lobbying activities

Are all the activities that are applied by the lobbyers, that are those individuals or corporations, domestic and foreign, that develop in the form professional and duly registered with the competent authority, all kinds of activity in defense of individual, sectorial or institutional interests in relation to decisions issued by the Legislative and Executive, or local administrative, subject to the terms and conditions determined. The goal of this law Colombia is to:

The lobbying activities law in Colombia is to stipulate the rules and principles governing lobbying activities in order to preserve the integrity of the powers decision of the government, making them transparent practices, regulated so that the people know the identity, expenditure and activities of people contacted to influence a bill, for or against.

19. Size of the government budgets

Is the amount of money that the government have saved to invest in the economic areas of the country to help it and make it better a long the years. Here is some data about the government budget in the last years:

The total budget of 2014 ascents 203 billions of pesos
The estimated budget of 2013 in Colombia was of 185,5 billions of pesos
The total budget of 2011 was of 147,3 billions of pesos.

20. World oil, currency, and labor markets

On this part, we talk about the currency of oil in the world today and the actual labor markets that are being applied on these days in Colombia. Here are some data about these mentioned things:

There are 1.237,8 KMbls reserves of oil in the world; each barrel of oil costs 93.74 dollars.

Here are some aspects that have been important in the actual labor market in Colombia: The fast growth of telework, the impact of an eventual end to the armed conflict in the work market in Colombia, the young unemployment in Colombia, what is happening with the sub employment in Colombia, the disadvantage that woman are facing in the work market in Colombia and the debate of the extra hours.

21. Location and severity of terrorist activities

These are the frequent location and the severity of the terrorist attacks and activities that have been happening in the last years:

According to the monitor of conflict events (OCHA), the “red zones” in Colombia are: Antioquia, Cauca, Caquetá, Nariño, Valle del Cauca, Norte de Santander, Arauca, Putumayo y Meta.
Recent attacks of the FARC (Fuerzas Armadas Revolucionarias de Colombia) in Inzá, located in Cauca, left 8 death people and more than 40 injured.

22. Level of government subsidies

The government subsidies are the economic support given by the government to a determinated economic sector normally with the intention of promoting economic growth and social policies.

BIBLIOGRAPHY

http://www3.registraduria.gov.co/presidente2014/preconteo/1v/99PR1/DPR1600199_L1.htm

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POLITICAL, GOVERNMENTAL AND LEGAL VARIABLES