The General Royalties System: An analysis of its operation Does it comply with the objectives set out since its creation in the year 2012?

Since more than three decades, Colombia has been moving forward to a decentralization process providing highly autonomy to Departments and Municipalities throughout the granting of sources, competences, and political authority to those entities, in order to achieve a highly level of efficiency and t...

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Autores:: Jiménez Pinillos, Edgar Julián

Tipo de recurso:

Fecha de publicación:: 2018

Institución:: Universidad Militar Nueva Granada

Repositorio:: Repositorio UMNG

Idioma:: spa

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Summary:	Since more than three decades, Colombia has been moving forward to a decentralization process providing highly autonomy to Departments and Municipalities throughout the granting of sources, competences, and political authority to those entities, in order to achieve a highly level of efficiency and transparency in the management of public resources. As a result, this will allow the improvement of social indicators and the access to essential public assets and services to as many people as possible. In this context are the transfers made by the central government towards subnational governments, in order to in charge the promotion of local development, through their active participation in the provision of essential services. Therefore, the 1530 of 2012 law in response to the 1991 political constitution mandate, established the operation and organization of what it calls General System of Royalties (GSR), in order to regulate the management of the resources from the exploitation of Non-Renewable Natural Resources (NRNR), owned by the Colombian state. Due to the fundamental role that is taken by the SGR and its distribution. It gives the importance which represent the resources to Departments and Municipalities and the difficulty which entails as a result of the growing demands by part of all their beneficiaries and their political connotation. It becomes important its structure, operation and application study in order to find major problems and possible solutions or opportunities of improvement. First of all, it is found that the SGR is structured under two fundamental pillars: The differential approach based on the principle of equity and the Project approach based on the principle of good governance. Those are composed by turning the principles of transparency, efficiency and sustainability; However, performing a deeper analysis of the system composition, it is observed that despite of its intention to respond on both fronts, in practice the project approach ends up prevailing, prioritizing the search for adequate management of resources but neglecting aspects such as the improvement of social indicators and the incentivation to territorial entities to generate evident results in terms of social impact. Moreover, regarding the application of the SGR; the operation of the science technology and innovation fund was studied, finding that a large part of the resources allocated to investment in this sector since the system was created in the year 2012 has not been used as a result of the lack of presentation of projects in the matter. As a result, it caused a lack of political will and lack of institutional capacity to the projects presentation by territorial entities. In addition, it was found that this problem occurs with high intensity in those poorer and less resource-rich entities. For these reasons, it is considered important to reinforce the structuring of the SGR, in relation with the evaluation of its results and social impacts. Besides, to evaluate the possibility that the results may be taken as criteria for the distribution of resources in a medium term. Likewise, it would be pertinent to engage more specialized entities to the central level such as the National Planning Department throughout the assignment of specific functions in the area of technical assistance (mainly to entities with fewer approved resources), and the evaluation of the management.

The General Royalties System: An analysis of its operation Does it comply with the objectives set out since its creation in the year 2012?

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