PanamaTimes

Wednesday, Sep 17, 2025

Colombia’s incoming finance minister wants fair capitalism

Colombia’s incoming finance minister wants fair capitalism

The economics professor who has been tapped as Colombia’s next finance minister says the left-leaning government taking office next month will focus on increasing taxes on the rich so it can spend more on poverty programs.
But Jose Antonio Ocampo said the administration will respect the autonomy of the central bank and work with ratings agencies on recovering the nation’s financial standing. He added that foreign investment will continue to be welcome in Colombia.

“We want a Western European kind of capitalism,” he said. “Not a capitalist system in which the distribution of wealth is among the most uneven in the world.”

Ocampo, a Columbia University economist who has led the United Nations Economic Commission for Latin America, was recently asked by leftist President-elect Gustavo Petro to serve as his finance minister when the former guerrilla fighter is inaugurated Aug. 7.

In an interview with The Associated Press on Tuesday, Ocampo promised that the Petro administration will be fiscally responsible and stay away from radical changes in monetary policy even as it seeks to increase tax revenues.

The new administration will not have a majority on its own in congress, so Petro has been working somewhat successfully to win over other parties to support his programs, though he likely will have to compromise.

Ocampo said Petro’s leftist coalition wants to boost tax collection by approximately $11 billion each year through a plan that would expand the nation’s tax income by around 25%. He said the added funds would go to build roads in rural areas and to implement education and health care programs to decrease social and economic inequalities.

That could be a tough sell. An effort last year by the current government to raise $8 billion in taxes, mostly from the middle class, sparked nearly two months of sometimes violent protests and forced the finance minister to step down. Eventually, President Ivan Duque passed a more modest $4 billion tax plan that avoided raising individual income taxes.

Petro is hoping to skirt political turmoil by targeting the incomes of corporations and the nation’s wealthiest individuals.

Ocampo said income taxes would be raised only for the top 1% of wage earners, which in underdeveloped Colombia means anyone making $2,500 a month or more. Petro also seeks to revoke tax exemptions given to some companies under Duque and says that a tax on wealth could be reinstated and that some pensions should be subject to taxes.

Ocampo said he will meet with ratings agencies to discuss what Colombia can do to improve its status. Last year, Standards & Poor’s and Fitch downgraded Colombia’s bonds to junk status, though Moody’s maintained the nations’ credit rating above that. That makes it more expensive to borrow, with yields on Colombian government 10-year bonds jumping to 12% from 7% over the past year.

The Colombian peso is also weakening, losing 15% of its value to the dollar since Petro’s election victory on June 19. Ocampo said the devaluation has been caused by fears of a global recession and interest rate hikes in the United States, which have also hit the currencies of other countries in Latin America.

The economist added that while the administration will seek to boost taxes, it is not planning to bolster its revenues by boosting oil exploration. He said fracking will be banned due to its potentially negative effects on the environment.

The Colombian state oil company, Ecopetrol, is currently implementing two fracking projects that are in their initial stages. Earlier this year, the company said fracking projects could add 400,000 barrels of oil per day to Colombia’s output and secure natural gas reserves for the next 25 years.

Oil is currently Colombia’s leading export. But during the presidential campaign, Petro promised to phase out dependency on oil and turn to cleaner forms of energy. He said that as president he would not approve new exploration contracts.

“We will stop depending on oil,” Ocampo said. “But it will also be a gradual process.”
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Actor, director, environmentalist Robert Redford dies at 89
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
Could AI Nursing Robots Help Healthcare Staffing Shortages?
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
In a highly politically motivated trial, Brazil’s Supreme Court finds former leader Bolsonaro guilty of plotting coup
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
Trump Responds to Death Rumors – Announces 'Missile City'
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Air Canada Begins Flight Cancellations Ahead of Flight Attendant Lockout
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
Mexico Extradites 26 Cartel Figures to the United States in Coordinated Security Operation
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Spain Scraps F-35 Jet Deal as Trump Pushes for More NATO Spending
Trump Administration Increases Reward for Arrest of Venezuelan President Maduro to Fifty Million Dollars
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
California Clinic Staff Charged for Interfering with ICE Arrest
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
AI Raises Alarms Over Long-Term Job Security
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Brazilian Congress Rejects Lula's Proposed Tax Increase on Financial Transactions
Landslide in Bello, Colombia, Results in Multiple Casualties
Papa Johns pizza surge near the Pentagon tipped off social media before Trump's decisive Iran strike
Juncker Criticizes EU Inaction on Trump Tariffs
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Sole Survivor of Air India Crash Recounts Escape
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
×