Legal notice EU (project) The Extension of the EU-AFD Research Facility on Inequalities in partnership with Fedesarrollo and in close collaboration with the Ministry of Finances implemented the methodology of the Commitment to Equity (CEQ) to analyze the country's fiscal structure and its impact on inequalities specially after major changes caused by the Covid 19 pandemic and the fiscal reform passed at the end of 2022.
Context
Prior to the pandemic caused by COVID - 19, Colombia had shown positive results with respect to the reduction of poverty and inequality. For example, total poverty was reduced by 6.1 percentage points between 2012 and 2018 from 40.8% to 34.7% as was extreme poverty, which went from 11.7% to 8.2%, according to official statistics. Likewise, although Colombia is among the most unequal countries in the region, it reduced its Gini index by about 0.03 units from 0.539 in 2012 to 0.508 in 2017, according to data from the National Administrative Department of Statistics (Departamento Administrativo Nacional de Estadísticas, 2021).
However, with the public health contingency, many people lost their jobs or had their incomes reduced due to pandemic containment measures that affected both aggregate supply and aggregate demand. Naturally, according to official statistics, poverty levels increased significantly and inequality rebounded to the levels of five years ago. In fact, by 2020, the country was, according to the latest ECLAC Social Panorama, the most unequal in Latin America (Economic Commission for Latin America and the Caribbean, 2021).
In this sense, the country's tax structure plays a fundamental role to the extent that direct, indirect and in-kind transfers are transformed into support for the most vulnerable households so that they can meet their basic needs and balance these inequalities to some extent. In addition, taking into account that progressivity is one of the principles of the tax system, those with higher incomes should pay higher taxes to finance social spending. In this sense, the tax reform that began to take effect in 2018 and now the Fiscal Reform adopted at the end of 2022 made some major modifications to the corresponding statute with the objective of increasing revenues.
This project is part of the Extension of the EU-AFD Research Facility on Inequalities. Coordinated by AFD and financed by the European Commission, the Extension of the RFI will contribute to the development of public policies aimed at reducing inequalities in four countries: South Africa, Mexico, Colombia and Indonesia over the period 2021-2025.
Objectives
The methodology developed by the Commitment to Equity institute (CEQ) has been used to carry out this study. The CEQ methodology allows to do a fiscal incidence analysis, that is, to analyze the redistributive impact of public policy instruments, on the tax side, as well as on the social spending side, on poverty and inequalities. In this sense, based on household surveys, it is possible to assess the redistributive capacity of taxes and transfers (whether direct or indirect) to guide public policy in this area.
The aim of the study was to identify which policies, either from the tax side or from the expense side, allow a greater impact (negative or positive) on inequalities. This then gives us, and the government, a clearer picture of the effects of the fiscal structure.
In addition, the project sought to build a tool that parameterizes the tax structure and social spending and allows making microsimulations that are useful for policy discussions. In this sense, this project sought to accompany the teams of the Ministry of Economy, providing them with a tool that allows them to carry out the necessary simulations to evaluate the impacts of different policies. The recently adopted tax reform was also analyzed through the lens of this tool.
Research findings
You will find below the research paper related to this project:
Contact
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Anda DAVID
Economist, scientific coordinator of the EU-AFD Facility on Inequalities
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Reducing spatial inequalities through efficient public service delivery in Colombia
Completed
2024 - 2025
Often referred to in the singular, the ocean is nonetheless a plural space, built according to the diversity of society’s relationship to the sea. Through the study of an oceanographic phenomenon in the Eastern Tropical Pacific – the Costa Rica Thermal Dome – this thesis focuses on the extension of biodiversity conservation challenges to the high seas and the socio-political dynamics that this generates.
Context
Even though it covers 43% of the Earth's surface, the high seas – designated by jurists as being beyond national jurisdiction – tends to be defined only implicitly. Yet it is the site of various human activities (navigation, fishing, mineral exploration, etc.) and, in the current context of climate change and anthropogenic pressures on ecosystems, its ecological state is the subject of growing concern.
For more than 15 years, these issues have been discussed at the United Nations in informal exchanges. This led to an intergovernmental conference opened in September 2018 on the conservation and management of biodiversity in areas beyond national jurisdiction. In connection with this diplomatic process, various sites on the high seas are made visible by the advocacy of non-governmental organizations (NGOs) calling for their protection. These include a phenomenon located in the Eastern Tropical Pacific: the Costa Rica Thermal Dome.
Goal
This thesis aims to study the socio-political emergence of the Costa Rica Thermal Dome. This oceanic upwelling phenomenon is a rise of cold waters rich in nutrients, produced by the main winds and marine currents of the region, which moves seasonally between the waters under the jurisdiction of several Central American States and international waters. Discovered in the late 1940s by American oceanographers, the different issues related to the conservation of its biodiversity have emerged over the past decade, mainly under the action of the regional NGO MarViva.
As this matter involves a wide range of actors (NGOs, offshore fisheries, scientists, States, intergovernmental organizations, etc.), this research looks into the interactions and problems of collective action associated with the Thermal Dome, in order to question the conditions of emergence of a “common” of such complexity: how is the dome “built”? By which actors, through which discourses and using which knowledge? What collaborations and polarizations does it crystallize?
Method
This thesis is based on a multi-location qualitative survey, centered around the gathering of a corpus of written documents (multidisciplinary scientific literature, grey literature, legal texts), semi-directional interviews and ethnographic moments.
The survey is conducted between France, Costa Rica and Nicaragua. A Central American trip was organized in 2021 to collect most of the data through interviews with stakeholders located between different coastal sites (Puntarenas, Cuajiniquil, Playas del Coco, San Juan del Sur) and the capital of Costa Rica, San José.
Results
The main result is the production of a PhD thesis in human geography: A limit to the ocean Frontier? The offshore construction of the Costa Rica Dome (defended on July 2nd, 2024)
A research paper has also been published: Questioning fishing access agreements towards social and ecological health in the Global South (Editions Agence française de développement, 2021)
Lessons learned
This research explores this phenomenon’s social construction in the three main fields that have approached it: oceanographic sciences, fisheries, and biodiversity conservation.
Since its inception as a social object, the Dome has remained an offshore space, hardly accessible, manageable or governable to actors who have deployed various strategies to know and utilize it. Oceanographic research has increasingly mobilized remote technical mediation to decipher a geophysical space with fuzzy contours. Various fisheries, especially industrial and from distant-water fishing nations, recurrently came close to the Dome’s occurrence. These encounters nevertheless did not prove strategic on a stable basis and fishers still relate to it as a fluid space whose dynamic configurations serve them in labile ways.
More recently, the Dome has also become a subject for the global marine conservation sector. Under the leadership of Environmental Non-Governmental Organizations, it is being constructed as a geography of promise to advocate governance solutions for the protection of biodiversity in the High Seas. Yet, as an offshore feature, the Dome appears at the limit of the human world. Beyond appropriation, it invites us to consider a narrative other than the "ocean Frontier" – which has been a particularly strong narrative over the past years, building on views of oceans’ openness and emptiness as opportunity for human expansion and control.
Contacts
- Nadège Legroux, PhD in Human Geography, UMR SENS
- Stéphanie Leyronas, research officer, AFD