Evolution of the royalty regime in Colombia after the Political Constitution of 1991

Abstract

The exploitation of non-renewable natural resources owned by the Colombian government generates economic considerations known as royalties and compensation. Since the issue of the Political Constitution of 1991, the regimen of administration of funds from that source has had a fairly important evolution. The recent Legislative Act 5 of 2011 introduced rules that give a one hundred eighty degree turn to the existing scheme. The reform seeks greater equity in the distribution of wealth from the exploitation of non-renewable natural resources and to ensure that they become a driving force that generates sustainable development for all regions of the country.