EconomyInvestingEthnic groups, protagonists in the new Royalties Law

Ethnic groups, protagonists in the new Royalties Law

The director of the SGR, Álvaro Ávila, and the Vice Minister of the Interior, Carlos Baena, explain how the new Royalties Law will work in the 2021-2022 biennium.

The General System of Royalties, of the National Planning Department, has been operating in Colombia for eight years. However, in the last two years an impressive transformation has been led in its favor that will take effect from January 1 of next year, thanks to Law 2056 of 2020, which makes the distribution of these more equitable and decentralized. resources in the regions.

This new commitment, which will begin to operate with a budget for the next biennium of more than $ 17.3 billion, will bring significant changes to the country’s municipalities and departments, by granting them greater autonomy, since they will make investments directly, formulating and approving the resources.

It will also increase the allocation to producing areas, which will go from receiving 11.2% to 25%, without affecting the allocations for non-producing territorial entities. In addition, 1,039 municipalities in the fourth, fifth and sixth categories, which today receive 11%, will receive 15%. Non-producing regions will maintain their resources and there will be more for the sectors of: science, technology and innovation, education, peacebuilding with legality and, for the first time, 5% of total resources will be allocated for the conservation and protection of the environment.

One of the most impressive facts of this new Royalties Law is that for the first time, and historically, active participation will be given to ethnic peoples and communities. For this reason, Álvaro Ávila Silva, director of the General Royalties System, and the Vice Minister of the Interior, Carlos Alberto Baena, speak in an interview to find out in detail what he left behind this teamwork and what are the changes that will favor the nearly five million of Colombians who belong to this population.

Álvaro Ávila Silva, director of the SGR:

What will be the role that these communities will play in the General Royalties System starting next year?

The new Royalties Law fulfills the promise of President Iván Duque to make the distribution of these resources more equitable. This consists of simple words, by increasing their autonomy so that they not only present projects, but they will be able to approve and execute those that will be financed with royalty resources for the benefit of their communities, a fact that before the same system did not allow them.

What will the distribution of resources be like for these communities?

In this way, the ethnic groups will now have a specific national bag that they will approve in ethnic decision-making instances. In this sense, the projects will be formulated and presented at the local level and, with a macro view from these instances, they will be prioritized and approved.

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When looking at the processes that you have led, what balance does the General Royalties System leave for this biennium that ends in eight days?

In the last two years, we have approved 4,533 projects worth more than $ 14.2 billion and in Ocad Paz, more than $ 1.5 billion have been approved. In other words, in Colombia each day, on average, six royalty projects were approved for the regions. The SGR has undergone a great transformation in favor of all Colombians and the development of the regions, which allows us to have a more agile and flexible system.

Vice Minister of the Interior, Carlos Alberto Baena:

This historic change occurred as a result of giving more participation to ethnic groups. How was it achieved?

Law 2056 of 2020 was the first in Colombia that was consulted virtually and it was a challenge that we assumed with the leadership of Minister Alicia Arango. The prior consultation process allowed indigenous peoples and the Roma people to be consulted for the first time. This fact marks the intention and disposition of the National Government with these peoples, as it is an enriching exercise for the autonomy and participation of ethnic groups with this new Royalties Law. Thanks to this work, we achieved 99% agreement between the central government and the ethnic peoples and communities.

What changes will the new law bring to reinforce this type of public policy on royalties?

The great change that this law brings, and which is a huge challenge for everyone, is that it establishes that all producing municipalities must allocate 4.5% in resources and the governorates 2% in investment projects approved by these ethnic groups . These will receive about $ 357,000 million in royalties as of January 1, 2021.

How will the articulated scheme of the Ministry of the Interior, the DNP and the Directorate of Royalties work for the coming biennium?

With the new Royalties Law we will be able to make ethnic groups visible. An example of this is that the black, Afro-Colombian, Raizales and Palenqueras communities, together with the indigenous peoples, will participate in the public tables of citizen participation, and the governor or the mayor, as appropriate, will include the result in the independent chapter “Investments charged to the SGR ”. That in the first instance.

Additionally, we will continue to work articulated with the directions of the Ministry of the Interior, on the part of the government; the Narp and indigenous people, the territorial entities, the DNP and the SGR, from the technical aspect, to provide them with an accompaniment that guarantees that the groups have effective planning and thus allow them to identify and prioritize the initiatives or investment projects susceptible of be financed with royalty resources.

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