Economic Policies in Sharing Revenues Among Local Governments in Colombia Orientaciones económicas en la política de transferencias a las entidades territoriales

Abstract

The Colombian sharing revenue system was changed in 2001 and 2007 by introducing new articles to the Constitution. This document examines the controversies that took place regarding the transformations in the method used to calculate the amount of resources to be distributed among local governments and the assumptions in economic theory that justified the reforms to the Constitution in those years. This article analyses the agreements between Colombia and the International Monetary Fund, the portray of poverty by international financial institutions and how it determines the administration of sharing revenues for local governments in Colombia.