General system of royalties opportunities in Colombia and challenges behind the reform

This chapter analyses the main characteristics, strengths and potential challenges of the system of royalty payments in Colombia, and notably its contribution to territorial development policy. The chapter is made up of three parts. The first offers historical background on the reform of royalty payments and discusses the political economy of reform challenges that have faced the government in the transition towards the new system. The second illustrates the chief characteristics and advantages of the new system. The third part assesses the system’s key challenges and presents a set of policy recommendations.