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Bogotá is the capital of the Republic of Colombia, and houses the national legislature, the Supreme Court of Justice, and the center of the executive administration as well as the residence of the President of the Republic (Casa de Nariño). These buildings, along with the Principal Mayor's office, the Lievano Palace (Palacio de Liévano), are located within few meters from each other on the Bolívar Square (Plaza de Bolívar). The square is located in the city's historical center, La Candelaria, which features architecture in Spanish Colonial and Spanish Baroque styles.

The Principal Mayor and District Council – both elected by popular vote – are responsible for city administration. In 2007 Samuel Moreno Rojas was elected Mayor; his term runs from 2008 to 2011. Previous recent mayors of Bogotá include Luis Eduardo Garzón, Antanas Mockus Sivickas and Enrique Peñalosa Londoño.

The city is divided into 20 localities: Usaquén, Chapinero, Santa Fe, San Cristóbal, Usme, Tunjuelito, Bosa, Kennedy, Fontibón, Engativá, Suba, Barrios Unidos, Teusaquillo, Los Mártires, Antonio Nariño, Puente Aranda, La Candelaria, Rafael Uribe Uribe, Ciudad Bolívar, Sumapaz.

Each of the 20 localities is governed by an administrative board elected by popular vote, made up of no fewer than seven members. The Principal Mayor designates local mayors from candidates nominated by the respective administrative board.

Bogota is the main economic and industrial center of Colombia. In 2008 the city ranked as the fourth most influential financial center of Latin America. In the period 2003-2006, its commercial GDP grew by 10.3% annually, accounting for 25.3% of GDP national trade. However, the unemployment rate reached 11.3% and a 31.6 percent underemployment. The city is one of the largest industrial centers in Latin America. Nationally, the import of capital goods has been spurred by the government, benefiting in particular the city of Bogotá which is involved in 24.4% of total domestic industry (2003). This is due in part to its geographical location, which makes the city a strategic point in terms of logistics, since transportation of goods to other parts of the country is relatively fast. This also facilitates the supply of raw materials for industry in the city, by its proximity to agricultural regions like the Eastern Plains. Several multinational companies have established their regional operations here during the last decades. However, the distance from the ports reduces the competitive advantages for exporting industrial products. Thus services (including telecommunications and trade) are gaining share versus industry.

In 2005, consumer goods led industrial production, followed by intermediate and capital goods. Of the 248,000 companies available to Bogotá, 78% are linked to service activities, contributing to 76% employment and 79% of GDP. The highest concentrations of industrial establishments are in Puente Aranda, Fontibón, Kennedy, Martyrs, and Barrios Unidos Engativá (in that order). Important business include the food industries, chemical, pharmaceutical, textile, publishing and metalworking. Also in 2005, the town with the highest labour productivity was Tunjuelito, followed by Teusaquillo and Chapinero.

Bogotá is a major tourist destination, an industry which has seen positive growth at the national level in recent years. Another industry that has grown is construction, contributing directly to reactivate economic activity in the capital.

The main international trading partner in Bogotá in 2003 was the United States, followed by the European Union. The city exports mainly agricultural products (30%), chemicals (10%) and textiles (7%), and imports transportation materials (17%), machinery except electrical (17%) and electrical machinery (14%).

In 2008, the World Cities Study Group and Network (GaWC) from the United Kingdom ranked Bogotá as a beta level city, one of their highest rankings. Beta level cities are important world cities that are instrumental in linking their region or state into the world economy.