Robbing the poor to give to the rich: the injustice of Colombia mining royalties

[Judi Lynn]

Robbing the poor to give to the rich: the injustice of Colombia mining royalties
Mar 3, 2014 posted by Kai Whiting

Colombia has developed various strategies to attract foreign direct investment. One of them is tax exemption. It makes economic conditions more favorable for mining and fuel companies. Royalties are a different kind of “tax” used to compensate the Colombian people for the stripping of their mineral resources. The problem is for every $100 COP paid in mining royalties, $132 COP is given straight back to the mining corporations in tax deductions. The government does not just give it away – it actually pays corporations to take it.

Export in Colombia has been and remains a significant driving factor for large scale mineral exploration, extraction and production by multinationals. According to the central bank, the country’s hydrocarbon sector alone attained a record high proportion of total exports in 2012, at 71%. This contributed a record $40 billion to the economy.

Yet how much of this wealth was given over to the Colombian Government? And how much did that same government assign to badly needed improvements in public infrastructure projects, health care or education?

The world awoke in 2011 to various Colombian mining scandals. ABColombia, the British newspaper The Guardian, NGO Peace Brigades International and Guillermo Rudas of Colombia’s Universidad Javeriana were all particularly vocal on the subject. They highlighted the enormous benefits enjoyed by multinational companies residing in and exploiting pristine areas of Colombian land. Many, if not all, such companies still continue to miscommunicate or partially conceal their true financial figures.

More:
http://colombiareports.co/injustice-colombia-mining-royalties/

[rambo_csm]

1. Thanks for posting my work

Here is another article you might be interested in Ms Lynn.

https://www.greenleft.org.au/node/56027

Let me know your thoughts.

Kai

[gbscar]

2. Ordoñez has persecuted the left, but Petro's poor management added fuel to that fire

Not just because of the waste administration issue, though Petro's handling of the matter has been full of improvisation, broken promises and various actions of questionable legality. Petro had his heart in the right place, truth be told, but even his own officials admit that several undeniable mistakes were made, including failing to open a new contractual process on time.

Which led to a preventable rush to import used, broken-down garbage trucks under less than optimal legal conditions.

And when you make mistakes as a public official, you carry a certain responsibility and must accept being punished.

Of course, Ordoñez has exaggerated the specific punishment, in terms of how he has used his own vast powers to punish public officials, including but not limited to Petro. Ironically, that vast power was given to his office in part because of the left, back in the day, so there is technically nothing illegal about what he is doing.

So you can't entirely blame Ordoñez, as much of a fascist as he is, for Petro's relative degree of incompetence in certain matters.

It's also incredibly ironic to suddenly hear Samuel Moreno being called an "elitist Mayor" when he was elected by Petro's own former left-wing party, the Polo Democrático Alternativo. The fact that he was corrupt doesn't magically make Moreno "elitist" unless one happens to be half-joking. He wasn't poor, but his polices were left-wing enough, in spite of the scandals.

In fact, Petro eventually split with the PDA over their support of Moreno (and their lack of bowing at this feet after the 2010 elections to name him party president, but that's another discussion)...who was being backed by both the Communists and the MOIR at the time. In other words, the most orthodox left-wing part of the left was against Petro, not Moreno.

It's also silly to claim that Petro has been silenced, when both him and his supporters have received a lot of media coverage, including both local and national outlets. Lots of people, even many who aren't left-wing at all, have criticized Ordoñez and considered that his punishment is exaggerated.

[Judi Lynn]

3. What a jolt, seeing your post here! Completely unexpected.

It was also a surprise to see your by-line at Green Left, another outstanding publication in a business with so few trustworthy sites in English. Amazing.

Have been deeply interested from reading the first words on the subject of what could have ever happened to cause an Inspector General the belief he had the right to terminate someone of the quality of Gustavo Petro, and to also ban him from future office-holding for 15 years, or more.

Gustavo Petro has won his reputation, the respect of the human race by working so hard, at at such a great cost to himself.

Could never get a legitimate view beyond the surface at what had happened. Your Green Left article opens that information to us, which helps so much. Petro had a wonderful idea, changing the game, making it helpful for people who needed paying jobs, and taking it out of the hands of corrupt politicians and their cronies. That would rub a criminal the wrong way.

I believe I read that Alejandro Ordonez was originally appointed by Álvaro Uribe. The way he has behaved makes him appear to be taking "guidance" from that narrow group of right-wingers.

I read last week what had seemed like a possible opening has been closed, and nailed shut with the last action. Is there any possibility for one final appeal for Gustavo Petro, or is it simply all gone?

It has been a shock, by all means, not seeing President Santos do something human to correct the conspicuous political assassination going on.

Learning how much Uribe seems to hate Santos made it appear that maybe Colombia might be moving ahead, after all. Maybe it's just too much to expect so much needed progress to happen without enough time to keep the right from trying to overthrow Santos himself.

[center]~ ~ ~[/center]
Regarding the mining royalties and the tax giveaways to corporations, it appears as if time has stood still, and nothing will be done on the behalf of the masses of people of the country. This is such a disappointment, anywhere it happens.

It's a desperate shame that the Drummonds who wore out their coal mining welcome in the US have inflicted so much destruction in Colombia already.

Thank you for taking the time to share this information. It will be a big help to others who have been watching this unfolding.

[rambo_csm]

4. Updates

Hello Ms Lynn,

Petro is back in town. No time to write about it though. I did do an update on mining and would really appreciate your thoughts... as always

http://www.americasquarterly.org/content/colombian-oil-scraping-bottom-barrel

There are various references so you can be better informed.

Where are you based?

Kai

[Judi Lynn]

5. It was interesting to learn Petro is temporarily reinstated. That was a surprise.

It was not a surprise to read that Juan Manuel Santos intends to appeal this decision.

It would be nice if he backed away from it but apparently he feels he will lose too many votes, and can't afford it. Pity.

Your article is perfect for people who live outside Colombia and haven't had time to get many of the details of the oil industry together to form a clear picture.

I immediately was reminded of the countless articles which have surfaced going back so many years concerning the horrendous black market sales in Colombia of pilfered Venezuelan products.

You can be sure our own corporate media in the U.S. never felt we should have to bother our little brains over the awareness that most of Colombia's oil leaves the country and very little remains behind for the citizens.

The deadline is shockingly close, too, before solutions are implemented. Can't imagine why all hell won't break loose first! So much pressure, so little room for alternatives.

It was excellent getting the chance to see the article you've shared with us.

Living in the dead center of the U.S., Kansas City suburb.

Thank you for this completely useful, interesting information.