Módulo 1 - Finanzas públicas territoriales en Colombia y situación económica nacional (22-04-2023)

Summary

The speaker, Jeylor Espinel, a political scientist from the Universidad Nacional de Colombia, discusses the complexities of territorial public finances in the context of Colombia's economic challenges. He addresses the impact of neoliberal policies since the 1991 Constitution, the decentralization process, and the increasing burden of local taxes, particularly property tax, on citizens. Espinel also critiques the recent trend of reducing national transfers to municipalities while simultaneously increasing local tax burdens, leading to socio-economic pressures and highlighting the ongoing struggles in Soacha and Cundinamarca.

Takeaways

• 😀 The speaker, Jeylor Espinel, is a professor and political scientist from the Universidad Nacional de Colombia, focusing on territorial public finances and the current situation in Soacha regarding property tax issues.
• 🏛️ Espinel is part of the 'Escuela Manuela Beltrán', an initiative to study property tax issues and support people in making claims against unfair tax increases in Cundinamarca.
• 📚 The talk covers five main topics: an introduction to territorial public finances, the history of neoliberalism in Colombia, the process of fiscal decentralization, the current state of national transfers to municipalities, and the socio-economic impact of tax policies on citizens.
• 💼 Neoliberal policies since 1991 have led to fiscal austerity, privatization of public services, and market liberalization, which have significantly impacted Colombia's economy and the capacity of the state to provide for its citizens.
• 📉 The speaker argues that the decentralization imposed by international financial institutions has resulted in municipalities bearing more financial responsibility, leading to increased local taxes and a reduction in national transfers.
• 🏦 There is a continuous reduction in the general system of participations, which has affected the revenue generation in Colombian regions and forced local governments to increase local taxes to compensate for the decreased national support.
• 📈 The national government's increasing need for funds to service external debt has led to tax reforms and a decrease in municipal transfers, placing a greater burden on local governments and citizens.
• 🏘️ The region metropolitana de Bogotá (Greater Bogotá) has introduced new financial mechanisms that may affect municipal autonomy and create additional taxes and fees for citizens.
• 🛣️ The creation of the region metropolitana brings with it new costs, such as airport counterprestations and usage rights for transportation terminals, which could indirectly affect citizens through increased service fees.
• 📊 The speaker emphasizes the importance of understanding the complex nature of territorial public finances, as it directly impacts the lives of citizens, particularly in terms of tax burdens and municipal financial autonomy.
• 🗳️ The talk concludes with an invitation for participation in the Escuela Manuela Beltrán to study and organize against the unjust increases in property taxes and to engage civically in the upcoming elections.

Q & A

Who is Jeylor Espinel and what is his profession?

Jeylor Espinel is a professor at the Universidad Santo Tomás in Bogotá, Colombia, where he teaches in the program of Government and International Relations. He is also a political scientist by training.

What is the main issue being discussed in the script?

The main issue discussed is the problem of property taxes, specifically the abusive increase of these charges by the municipal government, which has become a significant concern for the people of Soacha and other municipalities.

What is the purpose of the 'Escuela Manuela Beltrán' mentioned in the script?

The 'Escuela Manuela Beltrán' is a space created to study the problem of property tax and cadastral updates. It also serves as a platform for organizing people who are making claims and mobilizing in the municipalities, providing them with support and reasons for their claims.

What are the three main points of neoliberalism as discussed in the script?

The three main points of neoliberalism discussed are fiscal austerity, privatization, and market liberalization.

How has the neoliberal economic model impacted Colombia according to the script?

The neoliberal economic model has led to increased poverty, unemployment, and informality in Colombia. It has also resulted in a significant increase in external debt and a reduction in state resources, leading to a reliance on taxes and debt.

What does the script suggest about the role of foreign investment in Colombia's economy?

The script suggests that foreign investment in Colombia has been based on providing cheap natural resources, low or non-existent taxes, and cheap labor. However, it criticizes this model for not contributing sufficiently to the reactivation of the economy, wealth generation, and creation of dignified jobs.

What is the 'sistema general de participaciones' and how does it affect municipalities?

The 'sistema general de participaciones' is a system where the national government allocates a percentage of its budget to municipalities. It is the main source of funding for smaller and poorer municipalities, categorized from one to six, with the smallest and poorest being categories four, five, and six.

How has the reduction in national transfers to municipalities impacted them financially?

The reduction in national transfers has forced municipalities to increase local taxes to compensate for the loss of funding, leading to a significant increase in local taxes, especially on commerce, industry, and property.

What are the implications of the 'región metropolitana' for the municipalities associated with it?

The 'región metropolitana' creates additional financial pressures on associated municipalities by introducing new taxes and fees, such as airport counter fees, usage rights for transport terminals, and additional charges on urban planning and property taxes.

What is the controversy surrounding the property tax (impuesto predial) in the script?

The controversy is the unjustified and exorbitant increase in property taxes, which has led to a significant burden on the citizens, with some cases seeing increases of up to 700% to 5000%.