Tensions rise between Columbia and Venezuela

A row has been developing between Venezuela and Columbia on the grounds that Columbia was stirring up a war with Venezuela, alleging that FARC rebels were being hidden in Venezuela. Chavez naturally denied it and cut off diplomatic ties, usually a sign that war was imminent. However, Chavez pulled this stunt two years ago during the South American Diplomatic Crisis of 2008 and it should be noted that tensions were lowered. While I don't think there will be a war at this point, I think the growing tension between Columbia and Venezuela is worth noting. I think it is likely that conflict will develop over time as long as Venezuela is anti-US and Columbia is well supported by the US.

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On a another note, it seems FARC is willing to speak with the new Columbian leadership in hopes to resolve the 46-year long conflict. We'll have to see where this goes as Columbia has been making strong inroads against the rebels in recent times and may not be willing to settle.

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Colombia coming into its own

In a time of emerging-market juggernauts, Colombia gets little notice. Its $244 billion economy is only the fifth-largest in Latin America, a trifle next to Brazil, the $2 trillion regional powerhouse. Yet against all odds Colombia has become the country to watch in the hemisphere. In the past eight years the nation of 45 million has gone from a crime- and drug-addled candidate for failed state to a prospering dynamo. The once sluggish economy is on a roll. Oil and gas production are surging, and Colombia’s MSCI index jumped 15 percent between January and June, more than any other stock market this year.

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