Plan Colombia - Financing

Financing

U.S. Aid to Colombia, 1996-2006 (including non-Plan Colombia aid)
Last updated 11/11/05
In millions
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
(est)
2006
(req)
Military/Police 54.15 88.56 112.44 309.18 765.49 242.97 401.93 620.98 555.07 641.60 641.15
Economic/Social 0.62 0.00 0.52 8.75 214.31 5.65 120.30 136.70 134.98 131.29 138.52
% Military 99.88 100 99.53 97.42 78.12 97.72 76.96 81.95 80.43 83.01 82.23

This original plan called for a budget of US$7.5 billion, with 51% dedicated to institutional and social development, 32% for fighting the drug trade, 16% for economic and social revitalization, and 0.8% to support the then on-going effort to negotiate a political solution to the state's conflict with insurgent guerrilla groups. Pastrana initially pledged US$4.864 billion of Colombian resources (65% of the total) and called on the international community to provide the remaining US$2.636 billion (35%).

In 2000, the Clinton administration in the United States supported the initiative by committing $1.3 billion in foreign aid and up to five hundred military personnel to train local forces. An additional three hundred civilian personnel were allowed to assist in the eradication of coca. This aid was an addition to US$330 million of previously approved US aid to Colombia. US$818 million was earmarked for 2000, with US$256 million for 2001. These appropriations for the plan made Colombia the third largest recipient of foreign aid from the United States at the time. However, it was not until President George W. Bush did aid to Colombia shrink in the percent earmarked for military aid vs. humanitarian aid.

Colombia sought additional support from the European Union and other countries, with the intention of financing the mostly social component of the original plan. Some would-be donors were reluctant to cooperate, as they considered that the US-approved aid represented an undue military slant, and additionally lacked the will to spend such amounts of money for what they considered an uncertain initiative.

Initially, some of these countries donated approximately US $128.6 million dollars (in one year), which was 2.3% of the resulting total. Larger amounts, in some instances up to several hundred million dollars, were also donated to Colombia and continued to be provided either directly or through loans and access to credit lines, but technically fell outside the framework of Plan Colombia. "European countries provide economic and social development funds but do not consider them to be in support of Plan Colombia." In any case, the sums raised fell well short of what was originally called for. In addition, Colombia's eventual contribution was less than planned due in part to a 1999-2001 economic crisis.

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