So the history of Colombia includes the settlements and society by indigenous peoples, most notably, the Muisca Confederation, Quimbaya Civilization, and Tairona Chiefdoms; the Spanish arrived in 1499 and initiated a period of annexation and colonization, most noteworthy being Spanish conquest of the Muisca; ultimately creating the Viceroyalty of New Granada, with its capital at Bogotá. Independence from Spain was won in 1819, but by 1830 the "Gran Colombia" Federation was dissolved. What is now Colombia and Panama emerged as the Republic of New Granada. The new nation experimented with federalism as the Granadine Confederation (1858), and then the United States of Colombia (1863), before the Republic of Colombia was finally declared in 1886. Panama seceded in 1903. Since the 1960s, the country has suffered from an asymmetric low-intensity armed conflict, which escalated in the 1990s, but then decreased from 2005 onward. The legacy of Colombia's history has resulted in one of the most ethnically and linguistically diverse countries in the world giving rise to a rich cultural heritage; while varied geography, and the imposing landscape of the country has resulted in the development of very strong regional identities
The capitalist economic model relies on free market conditions for the creation of wealth. The production of goods and services is based on supply and demand in the general market.
