Colombia has risen to become the third largest economy in South America after Brazil and Mexico.

A Forbes Magazine article attributed Colombia's success to its president, Juan Manuel Santos.

In the article, titled "Where Courageous Leaders Are Not an Endangered Species," Paul Laudicina, listed the series of measures that Santos implemented to revive the Colombian economy.

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Colombia had suffered for years because of its problems with drug cartels and leftist rebels.

Laudicina recalled that 14 years ago Colombia was almost declared a failed state because the government had lost control of nearly half its 1,100 municipalities to drug traffickers and paramilitaries.

But a deal with the U.S. dubbed "Plan Colombia" paved the way for the government to be in charge again of most areas by strengthening law enforcement. The police and the military became more equipped to fight drug cartels, terrorists and guerrilla organizations.

Besides improving the security situation in the country, Colombia put its economy in order by implementing changes that were painful, but necessary. In 2000, then-finance minister Santos trimmed the budgets for police, health services and education. He also challenged a judicial decision that affected salaries in the public sector.

Laudicina said the budget cuts may have hurt Santos and his party politically, but economically the finance chief understood that the measures were essential to restoring government functions. Santos recognized that a balanced budget was necessary if the government was serious at serving and protecting the people, according to the article.

Santos was re-elected president last month. During his first term in 2010, he made an important decision to include his political opponents in his government. He formed a coalition with enough voting power to push through landmark reforms.

Laudicina commended Santos for making difficult decisions and sacrifices that he believed would produce long-term benefits for the Colombian people.

Santos's efforts seem to have paid off as Colombia replaces Argentina in South America's top three economies.

TagsColombian economic reforms, Juan Manuel Santos