The Period of Reconciliation, 1903-30
The devastation that resulted from the War of a Thousand Days discredited the factions of each party that had instigated the conflict. The moderates who assumed power in each party had similar economic interests; they recognized the need for the two parties to reconcile their differences and rule together in peaceful coexistence to ensure the survival of the country and the economy. For the first time in Colombian history, the Liberals and the Conservatives sought to share power rather than exclude the opposition party from it. Although Conservatives were nominally in control during this period, they formed coalition governments incorporating minority Liberals into the cabinet and other important political bodies. Rejecting the practice of excluding the Liberals from political participation, as had been done by the Nationalists, the moderate Conservatives removed the key element that had prompted so much political violence in the past and laid the foundation for economic progress in the country.
At the end of the civil war, the country needed a leader who was strong enough to rebuild the nation after the loss of Panama and the ravages of civil strife. General Rafael Reyes, elected president in 1904 with the support of moderate Conservatives, showed a determination to unify the republic, renew the nation's economy, and prevent any obstacle--constitutional or otherwise-- from standing in his way. Reyes's policies were a contradictory combination of political reconciliation and authoritarianism, which forced minority Liberal representation in government on the elected Conservative majority in Congress. His economic programs included a protectionist trade policy, which represented a major intervention of the state into economic activity. This trade policy encouraged domestic industrial growth, which in turn led to the growth of cities and the need to develop an urban infrastructure.
To ensure the passage of his economic reforms, Reyes greatly strengthened the executive and thereby centralized power. He abolished Congress and replaced it with a National Assembly composed of three representatives from each department, selected by department officials appointed by Reyes. This action ensured the adequate representation of the Liberal support he needed in the legislative branch. This extraconstitutional body was designed to approve his decrees and to pass constitutional amendments. The National Assembly allowed Reyes to implement policies that sometimes were at odds with orthodox economic theory and therefore would not have been tolerated by a Conservative Congress. Through these measures, Reyes established a sound fiscal administration, stabilized the monetary system, initiated a return to the gold standard, restored Colombian credit abroad, attracted foreign capital, improved transportation, encouraged export agriculture, and aided domestic industry. At the same time, however, he aroused a great deal of political opposition.
Reyes realized that the soundest path to economic development-- based on trade and foreign investment--required normalized relations with the United States, an unpopular idea at that time. In 1909 Reyes unsuccessfully tried to force legislative approval of the Thompson-Urrutia Treaty with the United States, which was to reestablish relations with that country and recognize the independence of Panama. The issue of the treaty's ratification, however, provided a focal point for opposition against Reyes, even though the treaty was ratified under a subsequent administration. In June 1909, the Republican Union, a bipartisan group of Liberals and Historical Conservatives who opposed Reyes, won a majority in the congressional elections held to reestablish the Colombian Cngress. In acknowledgment of the political current against him, Reyes secretly resigned later that month and left the country.
Carlos E. Restrepo, a Conservative who had been instrumental in founding the Republican Union, assumed the presidency after Reyes. The Republican Union represented a transformation in Colombian politics. The Liberal merchants and Conservative agriculturists found a common interest in coffee exports, which was quickly beginning to dominate the Colombian economy. Their mutual economic interest allowed the moderate factions of each party to join in a bipartisan coalition that gained political control at the end of the civil war. Although Conservatives retained nominal control of political institutions until 1930, they accepted and applied the principle of Liberal representation and participation in government. Conservative presidents appointed Liberals to their bipartisan cabinets and thus included them in political decision making. Although party conflict and rural unrest remained, the coalitions that the two parties formed provided a basis for political stability.
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