The process of change brought with it new political, economic, and social problems, which stemmed from uneven development, unequal gains, and a growing perception that the benefits of higher income were not widely shared. Since 1974 limited progress has been made on those issues; however, the Colombian economy has grown despite pervasive violence, fed both by guerrilla insurgencies and traffic in narcotics.

As the National Front era was ending, a new problem surfaced in Colombia—narcotics. The country’s role as a supplier in the international drug market developed rapidly following the major interdiction efforts launched by officials in Mexico in 1975. Colombia soon was providing as much as seven-tenths of the marijuana being imported into the United States. Using the profits from marijuana, drug leaders—especially from Medellín—diversified to cocaine trafficking, and shipments grew from individuals carrying small amounts to large quantities on boats and low-flying airplanes. Two major Mafia-like organizations—dubbed drug cartels—evolved from this illicit, lucrative trade: the first in Medellín, led by Pablo Escobar, and the second in Cali.

In the political sphere the transition from National Front to moderate political competition between Liberals and Conservatives in 1974 was reasonably smooth. Alfonso López Michelsen of the Liberal Party served his four-year term as president (1974–78) and handed power to Julio César Turbay Ayala, a centrist Liberal. Low rates of voter participation continued, keeping alive fears that military alternatives to democratic elections might be sought from the right or the left.

In 1982, however, the Liberal vote was split, and Belisario Betancur Cuartas, the Conservative candidate, was elected president. His presidency was marred by extremes of violence that tested Colombia’s long-term commitment to democracy. In 1984 individuals linked to the international drug trade assassinated the minister of justice. The next year M-19 guerrillas entered the Palace of Justice in Bogotá and took scores of hostages; when the military assaulted the building, some 100 people were killed, including half of the Supreme Court judges. These events pointed to an ominous growth in the power of drug traffickers and to an apparent inability of the government to control terrorist activities.

Betancur attempted to end guerrilla violence. In November 1982 he signed a law granting amnesty to almost all insurgents, and in the following years he was able to convince the FARC and the M-19 to enter into cease-fire agreements. At the same time there was an increase in vigilante groups in the country, which, depending on one’s point of view, were called either “self-defense” or “paramilitary” organizations. In many cases these groups represented attempts by landowners to protect themselves from guerrillas. Quite often the Colombian army helped equip and train the groups, which existed within the law and had been encouraged by the government since the 1960s.

The presidency of Virgilio Barco Vargas, a former mayor of Bogotá, began in August 1986 with hopes of improving civil order, but instead guerrilla groups became more active than ever, and paramilitary groups caused even more deaths than the leftist insurgents. Drug groups, especially the Medellín cartel, also began using terror to increase their bargaining power with the government. As a result, homicide became the leading cause of death in the country and 1989 was the most violent year in Colombia’s brutal history, with more deaths per capita from violence than during any year of La Violencia.

Barco’s other main challenge was to reverse the long-term decline in the rate of economic growth, which was confounded by low efficiency in manufacturing. The discovery in 1985 of a large petroleum reserve was a major boost toward improving the economy and reducing Colombia’s dependence on external energy sources.

The drug trade, while always a political problem, was at times an economic asset, making annual trade balances positive when they were negative for legal goods. Further, as drug dealers became wealthier, they spent money refining cocaine, organizing groups for protection, and constructing buildings (both residential and commercial), ironically benefiting more Colombians than the legitimate economy.

In the 1990 presidential campaign, three presidential candidates, including the poll-leading Liberal Luis Carlos Galán, and hundreds of other people were killed by drug traffickers in a backlash against tougher drug-trade policies. Despite threats of terrorism, however, about half of the population voted in the peaceful May election, which was won by former finance minister and hard-line anti-drug candidate César Gaviria Trujillo of the Liberal Party.

During the Gaviria years the question of continuing violence was addressed more than ever before. The president played a leading role by calling a constituent assembly, which replaced the 1886 constitution with the constitution of 1991; negotiating with the FARC and ELN, especially in Caracas, Venezuela, in 1991 and in Tlaxcala, Mexico, in 1992; and striking plea-bargain agreements with drug cartel chiefs and with paramilitary leaders.

The constitutional changes were significant, at least on paper. Presidents, who were limited to one term, were to be elected by an absolute majority, with a second-round vote if need be. The Senate was to be elected by a national constituency, which in theory gave minority parties a chance to elect a senator with only 1 percent of the vote. New electoral rights (including initiative and recall) were instituted, and a new National Prosecutor’s Office (Fiscalía) was set up to make the Colombian prosecutorial system more like that of the United States.

Gaviria’s negotiations with the guerrilla groups yielded no agreements. Plea bargaining did lead to the surrender of most leaders of the Medellín drug group, although the most notable one, Pablo Escobar, escaped after only 13 months in jail. (Following an extensive manhunt, Escobar was killed soon afterward by government forces.) Statistics indicate that violent activities were as common at the end of the Gaviria years as they were previously, despite the attempts to negotiate peace.

The Gaviria government continued the economic opening begun by Barco. In keeping with the neoliberal mood throughout Latin America, the Colombians began a new economic order, with lower tariffs on imports, fewer subsidies for the poor, and a lower role of the government in the economy. The fact that Colombia privatized fewer state-run industries than did other Latin American countries did not indicate a lower enthusiasm for the neoliberal order; rather, it reflected a lower level of initial governmental ownership.

The 1994 presidential election, the first under the new constitution, was won in the second round by Ernesto Samper Pizano, a Liberal, over the Conservative candidate, Andrés Pastrana. Samper’s entire term was coloured by the accusation made by Pastrana that he had an audiotape of Samper advisers bargaining with representatives of the Cali drug mafia for campaign contributions. Ironically, during the Samper presidency the leaders of the Cali cartel surrendered, were tried, and were sent to jail.

Although Congress later refused to impeach Samper, he was considered guilty by the extralegal guerrillas and paramilitary units and by the U.S. government. Violence increased over previous levels, and the paramilitary groups, under the leadership of Carlos Castaño, founded a national organization called the United Self-Defense Groups of Colombia (Autodefensas Unidas de Colombia), who emblazoned their group’s initials (AUC) across their battle fatigues but typically wore ski masks to conceal their identities.

The 1998 election was won by Andrés Pastrana, whose first years in office included controversial attempts to negotiate with the FARC and the ELN, such as granting them de facto control over a large portion of the southern state of Caquetá. Also during that period the Colombian economy entered its worst recession since the Great Depression.