Distribution of royalties in Colombia

change in search of equity

Abstract

In Colombia in the last twenty years the royalties have become an important source of financing for investment projects, given that over time these funds have increased significantly due to the increase in the exploitation of natural resources nonrenewable. However, the distribution of royalties was not homogeneous throughout the national territory, the distribution scheme previously established governing greater involvement of the royalties to municipalities and departments producers through direct allocations wich initially be invested in projects that would allow expansion of health coverage, education, clean water, basic sanitation and infant mortality decreased. The rest of the country could benefit from royalties through the National Endowment Fund through projects aimed at promoting mining, environmental protection and regional impact. Starting January 2012, took effect on General Royalties System, which states that the distribution of this resource should be done under an equity criterion throughout the country given that subsoil resources belong to the State. This new distribution scheme allocates resources to investment in science, technology and innovation, competitiveness and regional development, savings and direct royalties allocated to a lesser extent.