Political, Governmental and legal variables
Government regulation or deregulations
In this section we analyze all thekey variables in terms of the law and global politics, reviewing the way in which they could affect our industry.
The regulations are understood like the establishment of norms, rules or laws in a respective location.
Law 527 of 1999.
The promulgation of a regime on electronic commerce in the national legislation, is a result of a long project proposed worldwide by initiative on initiative of the Commission of the United Nations for the Development of the International commercial law (CNUDMI).
Change in patent laws
Voter participation rates
The vote is a process in which a citizen takes part in an active way in the electoral choices, by choosing the candidates that better offers have and the one who will represents the whole country .
In the last 52 years, in which 14 presidential choices have been celebrated, three of them with the second return, the percentage of participation of the electorate just has reached 46,5 %, that is to say that, more than the half of the citizens enabled to vote has abstained from attending to the urns, independently of which they have been the candidates or the conditions in which the assemblies developed.
Number of patents
The Patent is a privilege that grants the State to the inventor as recognition of the investment and efforts realized by this one to achieve a technical solution that aports benefits to the humanity.
It can be the greath growth of the economy, the increase in the flows of the foreign capital, the arrival of new international competitors, the signature of multiple agreements of free trade. One or all of them, the certain thing is that in the last years Colombia has experienced an increase in the number of requests received to register both patents (associated with inventions or designs of industrial type, between others) and distinctive signs (the properties of a product, as brand, etc.). Colombia has increased his potential entry to new markets, this is one of those, between 2008 and 2011 there is a rapidly increase in patents of ,science ,industry and brands and so on which help to the advancemt of colombian industry to obtain foreing invest.
Speccial tariffs
A tax is a money that is paid to the Public Administrations and to the State to support the public expenditures. These payments are obligatory and so many people are demanded from natural persons, since to legal persons.
In Colombia the key important taxes that entities must be attent to are the:
-rent: 25%
-occacional earnings: 10%
-income taxes:9%
-consumption tax:4%,8%,16%
-finaltial transactions : 0.4%
Political action comittees
There are different kinds of political action committes iin Bogotá such as: Partido MIRA and Partido Polo democrático, Partido Cambio Radical that affect the industry in different ways, these political actions committees have different approaches to the way they apply political actions, so this can affect the indsutry because each of these parties can be in favor or against the service offered to the society.
Colombia has experienced an increase in the number of applications received for recording both patents (related to inventions or industrial designs, among others) and logos (the properties of a product as a brand advertising slogan, etc.).
According to figures from the Superintendency of Industry and Commerce (SIC), patent applications increased from 1,800 in 2009 to 2,300 in 2012, representing a growth of 28%; showed the same behavior in applications to trademark, as 22,000 applications received in 2009, the last year recorded 31,000 (growing by close to 41%).
This growth is adding value and making a change to the creation of new technology and godos that at the same time are helping the economy of the country finantially and in terms of advance, which helps the indsutry in which we are develop.
Level of government subsidies
A subsidy is a financial assistance granted by the government to a person to satisfy a particular need.
Antitrust legislation
Legislation designed to ensure fair trade and consumer protection by blocking monopolistic practices and illegal trade restrictions.
The Antitrust legislation that are presented in Colombia is a regulatory market of Information Technology and Telecommunications ( ICT) that would favor users , promote competition , democratize the use of radio spectrum and set a precedent for monopolistic trends markets in Colombia .
According to this legislation it wants to find and equality in the percentage of participation of the big companies in Colombian economy. This is a way to give and opportunity to the other operators and mobile users to show the differences between other brands and be able to use the service in a usefull way.
This benefit the industry because as many mobile users it are more people will be able to obtain online books in and easy way and will read more.
Number, severity, and location of government protest.
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Number of protests: The Database of Social Struggles Cinep , register 1,027 protests in Colombia during 2013 , the largest number of fights since 1975. It have been for agricultural strikes, artisanal miners , labor strikes in mining multinationals and oil. The report shows that Bogotá registered approximately 120 struggles in the whole year.
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Severity of protest: One of the biggest manifestation in the history was the Paro Nacional Agrario; the result of these protest left 8 death people at least, more than 400 injured and at least 512 detained people
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Location: Bogotá D.C., Nariño, Tolima, Córdoba, Magdalena, Antioquia and Caquetá. were the principal epicenter.
The level of protest in Colombia is a big problem that are presented due to the big issues that each sector and industry of the country presents The education and the agriculture industry,production are the higher level of protest presented in the country, which can affect the industry.
Sino-Colombian relationships
China has consolidated as Colombia’s second most important ally in terms of trade. There has been no need for a FTA in order to incentive commerce. China is the third country in importance from which Colombia imports books, with a tendency to grow since 2008.
Without a FTA this commercial relationship could become unstable and it generates higher costs for titles. Forecasts see no short term date for the signing of a trade agreement so this could represent a threat.
European-Colombian Relationships
Colombia has maintained close relationships with European countries, principally with the members of the EU. In 2012 a FTA was signed, incentivizing trade relationships. Two European countries (Spain and England) are in the top ten zones from which Colombia imports books, being Spain the most important commercial ally in the sector. The FTA will help maintain stable commercial relationships between local book sellers and European suppliers
Import-Export regulations
In the last past years it has been in the main agenda of Colombia’s president the bettering of commercial relations with foreign countries. The strategy pursued has been the signing of FTAs. In terms of books, they are listed as preferential, meaning that there’s no tariff on their importation. The free market will benefit book sellers lowering their prices but it will endanger local book producers and editorials by increasing competition. Competition could help book sellers as suppliers will need to become more attractive and a way to do so is by lowering prices.
Size of government budgets
Is the amount of money that the government leads to invest in the economic áreas of the country to help to the development a long the years.
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Budget of 2014 ascents 203 billion of pesos which represents an increase of over 6 % compared to 2013. 17.6 % of the total will be devoted to education and 11.6 % to health.
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The estimated budget of 2013 in Colombia was of 185,5 billions of pesos
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The total budget of 2011 was of 147,3 billions of pesos.
This benefits the industry because as the government invest in the education sector, allows Access for a big number of students to quality education leading to the need of resources such as books, which are easier to get in and online way, to perform in optimally and lead to a rise in market demand
Government Fiscal and monetary policy changes
The monetary politics is the process in which the government, the central bank or the monetary authority of a country controls, the monetary offer and the interest rates In order to achieve a set of aims orientated towards the growth and the stability of the economy. And
The fiscal politics refers fundamentally to the administration of the income, expenses and financing of the public sector.
Monetary policy in Colombia is regulated by a system of inflation targeting, which aims to maintain a low and stable rate of inflation and output growth achieved in line with the potential capacity of the economy. This means that the objectives of monetary policy combine the goal of price stability with maximum sustainable growth in output and employment.
Government will give subsidies of education superior to students With the intention of promoting the access to the technical, technological or university education of displaced young persons and of the level 1 of the Sisbén, the National Government created the Incentive Fund for Higher Education (Fines ) For his implementation, the Colombian Institute of Educational Credit and Technical Studies in the Exterior (Icetex) and the Presidential Agency for the Social Action and the International Cooperation (Social Action) they signed an agreement for 7.600 million pesos. In this strategy, Social Action will contribute to the (Fines) a subsidy for 500 thousand pesos anually, during six periods, for the students' maintenance. These subsidies that the government provides benefits the industry because the students will need books which gives them a solution of obtaining different types that they want in an easy and virtual form and help the intellectual development of the country.
Legislation on equal employment
Law No.1496
The present law has as object guarantee the wage equality and of any form of labor remuneration between women and hungers, fix the mecanisms that allow that the above mentioned equality should be royal and effective so much in the sector public bed in the private one and to establish the general lineamientos that allow to eradicate any discriminatory form as for labor remuneration.
Level of defense expenditures
Colombia spent 21,21 billions of pesos on Defense and Security, 10% for investment and 90% of this budget was for functionality in the year 2013.
By the year 2013, the inversión to the defense department of the country was of 24 billions of pesos, according to the numbers given by the ministry of defense.
By the year, the global military was reduce in 19% ( 1.75 billions USD). But in the emergent countries these budget went up.
Russian-Colombian relationships
In the last years there has been a lot of talks around the topic of relationships between Colombia and Russia, given the possibility that both countries could benefit from a FTA. But negotiations are still not concrete. In terms of books imports, relationship with Russia is insignificant as in 2013 not a single book was imported from that country. Further negotiations between the countries could represent an opportunity for new authors and titles to arrive to the Colombian market. Trade relationships with Russia could bring uncertainty to the environment given the political differences between the countries.
African-Colombian relationships
Colombia has been seeking for international cooperation with african countries but still Africa doesn’t represent a strong ally. there’s not a single African country among the 50 most important commercial allies in the book industry. For now relationship with African countries is irrelevant but the bettering of international relations could represent a new literature sector to exploit.
Estadísticas del Libro en Colombia. (2013). P. 75,76. Retrieved February 6, 2015, from ftp://ftp.camlibro.com.co/Estadisticas/Estadísticasdel Libro en Colombia 2013.pdf
Location and severity of terrorist activities
According to the report released by the State Department of the United States in 2013 the FARC made a total of 830 terrorist attacks. Thus, the organization becomes more attacks committed throughout the Western Hemisphere in 2013 .
According to a report published the FARC " activated bombs, killed , fired mortars , kidnapped , extorted , and launched attacks against political , economic, military and civilian targets. They used landmines indiscriminately .." This terrorist group brings negative effects on the economy , it has great impact on the productivity and efficiency of an industry along with financial capital, as well as productivity and investment activities that it develop
World oil, currency, and labor markets
We talk about the world oil currency and the actual labor markets that are being applied in Colombia nowadays.
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There are 1.237,8 KMbls reserves of oil in the world; each barrel of oil costs 93.74 dollars.
The high unemployment and the low creation of formal employment continue being important necks of bottle in the Colombian economy, preventing that a robust growth affects in a major reduction of the poverty and in major well-being. To understand the source of these problems and to face them is key to guarantee the sustainability of the growth and that of the systems of social safety, which functioning depends on the labor market.