The Guide for Foreign Investment in Bogotá provides essential information about the region’s business ecosystem, covering legal, tax, and administrative issues. It serves as a crucial resource for companies and investors looking to navigate Colombia’s capital’s economic and regulatory landscape.

Bogotá: A Hub for Foreign Capital

Bogotá continues to establish itself as an attractive destination for foreign capital, making it even easier for investors to enter the market. With the participation of over 200 representatives from international companies, law firms, consulting firms, public and private entities, embassies, and binational chambers of commerce, Invest in Bogotá has launched the fifth edition of the Foreign Investment Guide in Bogotá—Region, a key document for those looking to establish themselves in the city.

The Guide for Foreign Investment in Bogotá offers crucial insights into the region’s business ecosystem, addressing legal, tax, and administrative matters. “This guide contains relevant legal information that every investor should know, providing a comprehensive overview of the business process,” explained Isabella Muñoz, Executive Director of Invest in Bogotá.

Comprehensive Coverage of Key Business Aspects

The document includes details on migration processes, business incorporation, labor obligations, foreign exchange regulations, customs procedures, and dispute resolution mechanisms, among other key topics. “We are convinced that this tool will support and facilitate investment decision-making in our city,” Muñoz added.

Understanding the regulatory framework and compliance requirements is critical for investors to ensure a smooth entry into the Colombian market. The guide offers step-by-step instructions for company registration, labor compliance, and tax obligations, clarifying potential challenges and solutions.

Foreign Investment in Bogotá: A Digital Resource for Investors

Unlike its earlier editions, which were printed, the guide has been distributed digitally through the Invest in Bogotá ecosystem since 2023. This shift allows broader and more effective access for companies seeking guidance on foreign investment in Bogotá. The transition to a digital format ensures that information is updated more efficiently, reflecting changes in investment policies, tax laws, and administrative procedures in real-time.

The guide’s structure has been developed in collaboration with renowned law firms, consulting firms, and academic institutions. It covers incentives for foreign direct investment (FDI), foreign exchange regulations, intellectual property, government contracts, cross-border e-commerce, and dynamic entrepreneurship.

With resources like this, Bogotá continues positioning itself as one of the main gateways for foreign investment in Latin America, offering a competitive and secure environment for international business growth.

Balance of Foreign Direct Investment in Bogotá-Region

According to Invest in Bogotá’s 2022 balance of Foreign Direct Investment (FDI) in Bogotá-Region, the capital remains the preferred destination for investments in Colombia. The report reveals that Bogotá-Region accounted for 64.7% of the country’s new and expansion FDI projects. Additionally, the city attracted 62% of total investment and 64.5% of the jobs generated last year.

Origins of Foreign Investment in Bogotá

The data also shows that most investment projects in the city originated from countries such as the United States (30.8%), Spain (9.1%), Mexico (6.3%), and Argentina (6.3%). However, other notable contributors included Latin American countries such as Brazil (4.9%) and Chile (4.2%), European nations like Germany (4.9%) and Switzerland (3.5%), and Japan (3.5%), which emerged as the leading Asian investor, surpassing China.

Key Sectors Attracting Foreign Investment

Regarding the sectors that attracted the most FDI projects, software, and IT services ranked as the leading industry for foreign investment in Bogotá. Over the past five years, this sector accounted for 20.2% of the city’s FDI projects. In line with global investment trends in the tech industry, in 2022, the sector’s share increased to 29.4% of Bogotá’s FDI projects.

Other prominent sectors drawing foreign investment in Bogotá include financial services, infrastructure, manufacturing, and life sciences. The rise in fintech and digital services aligns with the city’s efforts to become a regional hub for innovation and entrepreneurship.

Bogotá’s Competitive Edge in Latin America

Bogotá’s strategic location, well-developed infrastructure, and skilled workforce make it an appealing destination for international investors. The city’s domestic and international connectivity enhances supply chain efficiency and market access. Furthermore, its investment climate benefits from government incentives and public-private partnerships that promote economic growth.

The Guide for Foreign Investment in Bogotá has strengthened the city’s position as an attractive destination for foreign direct investment, fostering collaboration between the public, private, and academic sectors. The impact of these synergies is reflected in the growing number of projects arriving in Bogotá, driving employment, innovation, and sustainable economic development.

Future Outlook for Foreign Investment in Bogotá

Looking ahead, Bogotá aims to attract even more international investors by improving regulatory transparency and offering competitive investment incentives. The city’s economic policies continue to evolve to accommodate new business trends, such as digital transformation and green investments.

By leveraging resources such as the Foreign Investment Guide in Bogotá, businesses can confidently navigate the complexities of entering the Colombian market. With strong government support, a growing economy, and an investor-friendly environment, Bogotá is poised to remain a leading destination for foreign investment in Latin America.

Brazil, the largest economy in South America, presents a dynamic and multifaceted economic landscape. As an emerging market with vast natural resources and a growing technological sector, Brazil’s economic development is shaped by numerous variables. This blog post assesses the level of economic development in Brazil by examining key factors such as natural resources, human capital, infrastructure, innovation, and public institutions, among others.

Natural Resources

Brazil has abundant natural resources, including extensive iron ore, bauxite, oil, and natural gas reserves. It is also one of the world’s largest agricultural producers, exporting soybeans, coffee, sugar, and beef. These resources have historically played a crucial role in Brazil’s economic development, attracting foreign investment and supporting industrialization. However, dependence on commodity exports has made the country vulnerable to fluctuations in global prices.

Human Capital

Brazil has a large and diverse labor force, with approximately 108 million people actively participating in the economy. Despite improvements in education and skill development, disparities remain in workforce training and productivity levels. Brazil’s education quality varies significantly across regions, affecting businesses’ ability to access skilled labor. Continued investment in education and vocational training is essential to enhancing the country’s competitiveness.

Infrastructure

Infrastructure development in Brazil has lagged behind other emerging economies. While major cities have well-developed transportation networks, rural areas often lack connectivity. Deficiencies in roads, ports, and railways increase logistics costs, affecting trade efficiency. Government initiatives, such as public-private partnerships (PPPs) in infrastructure projects, aim to address these gaps and improve economic development in Brazil through increased competitiveness.

Technological Development

Brazil has made significant progress in technological advancement, particularly in fintech, agritech, and e-commerce. The country has a rapidly growing startup ecosystem, and cities like São Paulo and Florianópolis are emerging as innovation hubs. However, challenges such as limited access to research funding and bureaucratic hurdles hinder further growth in technological innovation.

Quality of Public Institutions

Strong institutions are fundamental to economic development in Brazil. Corruption and inefficiencies in the public sector have historically undermined the country’s governance and economic stability. While reforms have improved transparency in some areas, continued efforts to strengthen the rule of law and reduce bureaucratic red tape are necessary to foster a more business-friendly environment.

Economic Policies

Brazil’s economic policies have fluctuated over the years, with periods of state intervention followed by market liberalization. Recent reforms, such as pension and tax restructuring, have aimed to improve fiscal stability. The government’s emphasis on privatization and foreign investment has been a positive step toward strengthening Brazil’s economic framework. However, policy uncertainty and regulatory complexity still challenge long-term economic planning.

Level of Industrialization

Brazil boasts a diverse industrial base with strong automotive, aerospace, and manufacturing sectors. However, industrial growth has been hindered by high production costs, excessive taxation, and inadequate infrastructure. The country’s deindustrialization trend in recent decades calls for a renewed focus on policies that encourage innovation, productivity, and global competitiveness.

Access to Capital and Credit

Financial inclusion remains a challenge for economic development in Brazil, particularly for small and medium-sized enterprises (SMEs). While large corporations have access to credit through banks and capital markets, smaller businesses often struggle with high interest rates and limited financing options. The rise of fintech companies is helping to bridge this gap by offering alternative lending solutions.

Geographic Location

Brazil’s strategic location in South America provides access to global trade routes and regional markets. However, the country’s vast size and uneven economic distribution create logistical challenges. Regional connectivity and infrastructure investments are essential to leverage Brazil’s geographic advantages fully.

Demographics

With a population exceeding 215 million, Brazil has a young workforce that presents opportunities for long-term economic growth. However, demographic trends indicate a gradually aging population, which could strain public finances in the future. Policies that support workforce participation, particularly among women and marginalized groups, will be crucial in maintaining economic vitality.

Cultural and Social Factors

Brazil’s rich cultural diversity and entrepreneurial spirit contribute to its economic dynamism. However, income inequality and social disparities remain pressing issues. The country’s Gini coefficient, a measure of income inequality, is one of the highest in Latin America. Addressing social inequalities through inclusive policies can foster a more resilient economy.

Global Economic Integration

Brazil is a member of the BRICS group and Mercosur, positioning it as a key player in global trade. The country has been expanding its trade agreements to enhance economic integration. However, protectionist policies in specific sectors and high tariffs have limited foreign trade potential. Greater trade liberalization could enhance economic development in Brazil by attracting foreign investment and increasing exports.

Environmental Sustainability

As home to the Amazon Rainforest, Brazil must balance economic growth and environmental conservation. Deforestation and climate change pose significant risks to sustainable development. Promoting green energy, sustainable agriculture, and environmental regulations is crucial in ensuring long-term economic stability.

Political Stability and Security

Political uncertainty and social unrest have historically impacted investor confidence in Brazil. While democratic institutions remain strong, governance challenges, corruption scandals, and policy shifts have created volatility in the business environment. Strengthening political stability and security measures is essential for fostering economic growth and investment.

Innovation and Entrepreneurship

Brazil’s startup ecosystem is thriving, with innovative ventures in fintech, healthtech, and agribusiness sectors. Government programs, such as the Brazilian Development Bank’s (BNDES) support for entrepreneurs, have helped foster innovation. However, reducing bureaucratic obstacles and increasing access to venture capital are necessary to accelerate entrepreneurial activity further.

Conclusion

Significant strengths, including vast natural resources, a large labor force, and a growing technological sector, characterize economic development in Brazil. However, infrastructure deficits, income inequality, political uncertainty, and bureaucratic inefficiencies hinder sustained growth. By implementing long-term strategies focused on innovation, financial inclusion, environmental sustainability, and institutional reforms, Brazil can unlock its full economic potential and position itself as a global economic powerhouse.

As Brazil navigates its economic future, addressing these variables holistically will be essential in fostering a more stable, competitive, and inclusive economy.

The space industry in Peru offers significant economic and social benefits, fostering innovation and generating thousands of highly skilled jobs, which are key to the country’s technological development. Establishing a space sector provides numerous advantages, including advancements in rockets, satellites, and infrastructure construction. It also catalyzes research and development, pushing the nation toward technological self-sufficiency and positioning it competitively in the global aerospace market.

Peru will have a spaceport as part of a strategic initiative to drive economic growth and diversify its economy. Investing in the space sector not only represents progress in technological terms but also unlocks opportunities in education, science, and commercial ventures related to satellite communications, weather forecasting, and Earth observation. The construction of rockets and satellites within the national territory will provide new avenues for exploration and research, making Peru a key player in Latin America’s space industry.

Peru Will Have a Spaceport in Talara: A Historic Milestone

Peru will have a spaceport located in Talara, Piura, through a collaboration with NASA and the United States. This ambitious project represents a milestone in the nation’s history, opening doors to the aerospace industry while generating innovation and employment opportunities. The initiative, part of the National Space Policy of Peru, aims to strengthen national capabilities in the sector, with an estimated investment of S/1.000 million. According to General Carlos Chávez, commander of the Peruvian Air Force, the spaceport will allow the country to launch its first rocket within three to five years, a significant step toward technological independence.

The strategic location of Talara, just four degrees from the equator, provides substantial advantages for launching spacecraft. Equatorial launch sites require less energy for orbital insertions, making launches more efficient and cost-effective. This geographical benefit will enhance Peru’s attractiveness as a launch hub for international space agencies and commercial enterprises seeking optimal conditions for satellite deployment.

Details of the Talara Spaceport Project

An agreement between the National Commission for Aerospace Research and Development (CONIDA) and NASA backs the Talara spaceport project. This agreement, set to be finalized in the coming days, is a crucial step toward building the necessary infrastructure to support Peru’s space ambitions. General Chávez emphasized the role of Talara’s airbase, which will be transformed into a launch center for rockets and suborbital vehicles.

Additionally, Peru will have a spaceport as a hub for scientific collaboration, attracting aerospace companies and fostering research initiatives with universities and international institutions. The project will also facilitate training programs to develop a specialized workforce, ensuring that Peruvian engineers, scientists, and technicians are equipped to take on leading roles in the industry.

Economic and Employment Impact of the Spaceport

The development of the space industry in Peru has the potential to impact the national economy significantly. With thousands of high-skilled jobs created, the country will be able to attract talent and foster technological innovation. The construction of the Talara spaceport will lead to the emergence of new technology-driven businesses, creating an ecosystem that supports sustainable economic growth.

Historical precedents demonstrate how investment in space technology drives economic expansion. During the Cold War, the space race spurred industrial and technological progress in multiple nations, leading to advancements in computing, telecommunications, and materials science. Peru can follow a similar trajectory by committing to aerospace development and integrating itself into the modern space economy.

Peru will have a spaceport that facilitates satellite launches and strengthens national security capabilities through enhanced Earth observation and monitoring systems. These technologies can be applied to environmental conservation, disaster response, and defense strategies, making the investment even more valuable.

Furthermore, collaboration with NASA and other international partners will provide access to cutting-edge knowledge and best practices, ensuring that Peru can develop a robust and competitive space program. As commercial space activities expand globally, the country can position itself as a preferred location for launching services, satellite manufacturing, and aerospace research.

The Future of Peru’s Space Industry

Peru will have a spaceport, a bold step forward in embracing the technological revolution shaping the global economy. This initiative is a scientific endeavor and a strategic move to elevate Peru’s standing in the international aerospace community. By establishing space exploration and satellite technology infrastructure, the country is setting the foundation for long-term economic benefits and scientific breakthroughs.

The Talara spaceport will serve as a literal and figurative launchpad for Peru’s ambitions in the new space era. With government support, private sector involvement, and international collaboration, Peru is well-positioned to reap the benefits of its foray into the aerospace sector. By committing to space exploration, Peru embraces an era of innovation, progress, and global competitiveness that will shape its future for decades.

Argentina’s growing mining sector is rapidly gaining attention, with an emerging role in South America’s copper production. The country’s burgeoning copper projects are creating a potential challenge to its mining neighbor, Peru. With a series of copper-focused initiatives, Argentina is positioning itself as a key competitor in the region. The Argentine copper projects are at the heart of this potential transformation, attracting significant investments and could radically change the country’s standing in the global mining landscape.

A Promising Future for Argentine Copper

According to the Argentine Chamber of Mining Companies (CAEM), the country is home to six major mining projects, representing a cumulative investment of approximately US$25 billion. These projects, many of which are located in Argentina’s San Juan province, are expected to produce a combined 1.2 million tons of copper annually at full capacity. The development of these Argentine copper projects could make the country a serious competitor to established mining giants like Peru and Chile.

Some of the most prominent projects include El Pachón, managed by Glencore; Josemaría, owned by BHP and Lundin Mining; and Los Azules, operated by McEwen, Stellantis, and Rio Tinto. These three projects are among the most significant in Argentina’s copper mining landscape. In addition, other important projects, such as Taca Taca (led by First Quantum) in Salta, San Jorge in Mendoza, and Agua Rica in Catamarca, are also on the horizon, further reinforcing the country’s rise as a potential mining powerhouse.

As Roberto Cacciola, president of CAEM, pointed out, these Argentine copper projects are part of a broader strategy to use mining as a key economic driver. The Argentine government has identified mining as a crucial sector in generating foreign currency and stabilizing the country’s economy. According to Cacciola, if all six projects reach full production, Argentina could see its mining exports grow from US$11 billion to US$12 billion, with projections reaching as high as US$20 billion when factoring in other resources, like lithium.

Why Argentina Is Attractive to Investors

Argentina’s mining sector has long had potential, but past economic instability prevented many of these copper projects. However, in recent years, the country’s macroeconomic situation has improved, and a series of investor-friendly reforms have made Argentina an increasingly attractive destination for mining investment.

Miguel Leiva, head of Credicorp Capital’s Equity Research Peru team, noted that the Argentine government has implemented policies encouraging mining investments, including economic liberalization and reducing bureaucratic hurdles. One of the key measures is the Investment Incentive Regime for Large Investments (RIGI), which came into effect in October. Under this framework, mining companies can access more foreign currency while benefiting from a reduced corporate income tax rate (35% to 25%) and shifting to taxing mining revenue rather than production.

Carlos Gálvez, former president of Peru’s National Society of Mining, Petroleum, and Energy, highlighted that Argentine President Javier Milei has actively worked to create an environment conducive to mining development. As Gálvez explained, the Argentine government is working to make it as easy as possible for investors to set up operations in the country, thus laying out a figurative “red carpet” for foreign mining companies.

In addition to these incentives, the location and geological characteristics of Argentina’s Argentine copper projects make the country even more attractive. The copper deposits in Argentina are relatively accessible, with many high-grade ores located near the surface, reducing the need for costly and complex deep excavation. This could make mining operations in Argentina cheaper than in other countries where deep excavation is required, further improving the overall economics of the Argentine copper projects.

The Situation in Peru: Challenges to Competitiveness

While Argentina is making strides in mining, its neighbor, Peru, has faced several challenges impacting its competitiveness in recent years. Peru, historically one of the world’s largest producers of copper, has seen a decline in its global mining investment ranking. The Fraser Institute’s global mining investment attractiveness ranking shows that Peru fell from the 32nd percentile in 2019 to the 69th percentile in 2023.

Leiva attributed this decline to increased tax burdens in Peru, particularly the introduction of corporate income taxes and an extraordinary mining tax. In addition, Peru’s mining projects are often delayed due to the country’s lengthy and bureaucratic permitting process. According to Gálvez, mining projects in Peru require an average of 265 permits before they can begin operations. This bureaucratic bottleneck has led to project delays, sometimes stretching for a decade or more before reaching production.

For mining companies, time is money. As Leiva pointed out, the rate of return on investment depends heavily on how quickly a project can reach production and start generating revenue. In Peru, the drawn-out permitting process and complex regulatory framework can make it more challenging for mining companies to recover their investments in a reasonable time frame, making Argentina’s Argentine copper projects even more appealing.

The Future of South American Mining

While Peru has traditionally dominated the South American copper market, Argentina’s efforts to streamline its mining sector and create a more investor-friendly environment have the potential to disrupt the balance of power. The development of the Argentine copper projects could lead Argentina to become a key player in the global copper market. With an expected output of 1.2 million tons of copper per year from these six significant projects, Argentina is positioning itself as a serious competitor to Peru, especially if its mining reforms continue to attract foreign investment.

However, as Leiva stressed, Peru’s future mining competitiveness will depend on its ability to reform its mining sector, reduce bureaucratic red tape, and maintain legal and tax stability. For mining companies, long-term stability is critical to making the large investments necessary to develop mining projects. If Peru can address these challenges, it can continue to leverage its rich mineral resources and skilled workforce to maintain its competitive edge in the global mining industry.

In conclusion, Argentina’s copper sector is rapidly expanding, with the Argentine copper projects positioning the country as a viable competitor to Peru. The country’s policy reforms, favorable economic environment, and low-cost mining operations make it an increasingly attractive option for investors. While Peru remains a key player in South American mining, Argentina’s rise could challenge the status quo, and the future of the region’s mining industry may be shaped by the growth of Argentina’s copper projects.

El Salvador Yields to IMF for a USD 1.4 Billion Deal

El Salvador’s legislators hurriedly approved a reform to the Bitcoin Law to meet the conditions of a multi-billion-dollar agreement with the International Monetary Fund (IMF). The decision marks a significant shift in the country’s Bitcoin policy, initially implemented in 2021 under the leadership of President Nayib Bukele. The reform makes Bitcoin acceptance voluntary and removes its designation as legal tender, reflecting the government’s need to comply with the IMF’s financial requirements.

Legislative Approval of the Salvadoran Bitcoin Law Reform

On Wednesday, El Salvador’s Legislative Assembly approved a bill introduced by President Bukele to amend its Bitcoin Law. The bill was sent to the legislative body, dominated by Bukele’s New Ideas Party, just minutes before being voted on. Despite the lack of prior debate, the bill was swiftly approved with 55 votes in favor and only two against. This move demonstrates the administration’s urgency in securing financial assistance from the IMF.

The Salvadoran Bitcoin law reform modifies key provisions of the 2021 legislation that had made Bitcoin a mandatory payment method for businesses. The revised version eliminates the obligation for businesses to accept Bitcoin, allowing them to decide whether they want to transact in the cryptocurrency. Furthermore, the reform restricts the exchange of digital assets to businesses and citizens, removing the state’s role in its use. This shift aligns with the IMF’s longstanding skepticism toward Bitcoin and digital currencies.

Scaling Back El Salvador’s Bitcoin Policy

In June 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. The move was intended to boost financial inclusion, drive innovation, and attract foreign investment. However, more than three years later, the nation has scaled back its policy to meet the IMF’s conditions for a much-needed financial assistance package.

The IMF had repeatedly warned about the risks associated with Bitcoin, citing concerns over financial stability, regulatory oversight, and the potential for illicit economic activities. As part of the agreement, El Salvador was required to modify its Bitcoin-related policies, leading to the approval of the latest Salvadoran Bitcoin law reform.

IMF Loan Agreement and International Financial Assistance

Last month, El Salvador reached a preliminary deal with the IMF that includes a USD 1.4 billion loan to support the country’s reform agenda and address its balance of payments. The agreement is expected to unlock an estimated USD 3.5 billion in additional funding from the World Bank and the Inter-American Development Bank over the coming years.

The IMF’s requirements included limiting several Bitcoin-related activities to establish the financial support package. One of the most significant changes required under the agreement was making Bitcoin acceptance voluntary, a stark contrast to the original law, which had mandated businesses to accept cryptocurrency as a form of payment.

Changes to Bitcoin’s Legal Status in El Salvador

The reform addresses Articles 1 and 7 of the Bitcoin Law. The original Article 7 stated, “All economic agents must accept Bitcoin as payment when offered by the purchaser of a good or service.” The revised version allows businesses to decide whether to accept Bitcoin, making its use optional.

Additionally, Article 1 has been reworded to specify that Bitcoin transactions must be conducted “with voluntary acceptance by natural or legal persons, exclusively within the private sector.” This change eliminates any obligation for public institutions to engage in Bitcoin transactions, reinforcing the government’s pivot away from its initial pro-crypto stance.

Other repealed provisions include articles that previously permitted taxes to be paid with Bitcoin and mandated the state to provide mechanisms for Bitcoin transactions. These mechanisms included automatic and instant Bitcoin-to-U.S. dollar conversion to reduce volatility risks for businesses and individuals.

Implications for El Salvador’s Bitcoin Ecosystem

Stacy Herbert, director of El Salvador’s National Bitcoin Office, stated that Bitcoin will remain legal tender but will be limited to private-sector investments. This clarification underscores that the government is not entirely abandoning its Bitcoin experiment but is instead shifting the focus away from state-mandated adoption.

Furthermore, Herbert revealed that the government’s Chivo Wallet, introduced to facilitate Bitcoin transactions among Salvadorans, will either be “sold” or “discontinued.” The Chivo Wallet was initially promoted to facilitate Bitcoin transactions, particularly for remittances. However, its widespread adoption faced technical glitches and security concerns. The discontinuation or privatization of Chivo Wallet signals the government’s further retreat from its role in Bitcoin adoption.

IMF’s Skepticism and Bitcoin’s Future in El Salvador

The IMF has consistently expressed doubts about Bitcoin’s viability as a national currency. It has issued multiple warnings to El Salvador regarding the risks associated with cryptocurrency adoption, including financial instability and regulatory uncertainties. With the approval of the Salvadoran Bitcoin law reform, the government has demonstrated its willingness to compromise on its initial vision in exchange for international financial support.

While Bitcoin remains legal in El Salvador, its economic role has been significantly reduced. The new legislation departs from the bold ambitions that initially positioned El Salvador as a pioneer in cryptocurrency adoption. Moving forward, the success of Bitcoin in the country will largely depend on voluntary adoption within the private sector rather than government-mandated use.

Conclusion: A Pragmatic Shift in Policy

The approval of the Salvadoran Bitcoin law reform reflects El Salvador’s pragmatic approach to securing financial stability. While the country initially embraced Bitcoin as a revolutionary financial tool, economic realities and the need for external funding have forced a policy shift. The government’s willingness to amend its Bitcoin Law to align with IMF requirements highlights the delicate balance between financial innovation and economic stability.

As El Salvador moves forward with its IMF-backed reforms, the role of Bitcoin in the nation’s economy will continue to evolve. Whether Bitcoin adoption will thrive in the private sector or diminish over time remains to be seen. However, one thing is clear: El Salvador’s experiment with cryptocurrency has entered a new phase, prioritizing financial pragmatism over ideological commitment.