Análisis del impacto que tiene la burocracia requerida para crear empresa, en la economía colombiana y en la Inversión Extranjera Directa durante la pandemia generada por el Covid-19

Abstract

The improvement plan evidenced in an analysis and in an improvement proposal, was applied in the preparation of a bill that aims to reduce bureaucracy in business creation, in order to generate a contribution to the Research Area of the Legislative Work Unit (UTL) of the Representative to the Chamber David Racero, where the experience in business issues that impact the international sector is not very broad.

The pandemic generated by Covid-19 has generated a serious crisis especially in the economy and health sectors, which is why it is so important to analyze the impact of the bureaucracy on some of the most important economic variables, because, although this it will not solve the consequences caused by Covid-19, its decrease is an incentive for the creation of companies and, therefore, for the generation of many jobs. According to the National Federation of Merchants (Fenalco) 2020, during the first half of this year, 80,000 commercial establishments closed completely. According to the National Administrative Department of Statistics (DANE) in April, the month with the greatest restrictions, the unemployment rate reached 19.8%, equivalent to 4.1 million people.

The figures for Foreign Direct Investment (FDI) in Colombia in recent years have been very positive, however, in the first half of this year, Colombia obtained the lowest FDI in the last ten years. The Bank of the Republic announced that in May 2020, FDI had a drop of 8.3%, according to World Bank reports, this was caused by the political uncertainty generated, among others, by trade protectionism; that is why the bureaucracy is indirectly related to FDI, which is why it is ideal to reduce its level in order to attract more economic resources for Colombia, which generate employment, innovation and in the long term, taking into account other factors, less inequality.

The analysis and the improvement proposal were used in the explanatory statement and in the articles of a bill with which it is expected to reduce to two days the time an entrepreneur takes to set up his company in the cities of Medellín, Cali, Barranquilla and Cartagena.