Funding opportunities for local authorities in the XXI century

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BACKGROUND In the capitalist world for local “Globalization is the tendency of markets and businesses to expand, reaching a global dimension which transcends national boundaries” DRAE. Edition 1995 …. It is for the expansion, acceleration and intensification of capitalist social relations in which the class struggle and decisive causal factor Globalization historical character is unable to accurately determine their origin submit an accelerated evolution

In the 60’s in local and national fields based on external events. It transforms the principles of protectionism phenomena of economic neoliberalism international economic and political interdependence Producing …. The greatest impact of globalization

BACKGROUND In the capitalist world for local “Globalization” as an inclusive process, necessary, due to “laws” of technological development or “progress” …. …. Marked by profound inequalities and power games

GLOBALIZATION AND TERRITORY. The space economy: “A unit whose existence depends on shared questions than answers given type. Its composition is thus plural and unorthodox by definition, putting its explanatory power in the service of the disciplines and the problems that come into contact with the “social entities (cities, municipalities): economic sphere States grew in relation to markets, both globally and domestically. State control over its territory and its population grew dramatically with legal unification process, managed growth and development of technologies for recording and monitoring social Scope constitute distinct social formations in which the dynamics of local character are generating major transformations due to the impacts of globalization.

Strictly speaking, globalization is the process resulting from the ability of certain activities to function as a unit in real time on a planetary scale. Thus, decisions and activities everywhere have a significant impact in very different and simultaneous GLOBALIZATION AND TERRITORY. The liberalization of trade and capital movements, privatization of industries and companies in various fields deregulation reforms that allowed the extension and deepening of the globalization process

Globalization in Latin America decentralization process between the different territorial levels of government change in the administrative financial policies relationship many of the basic rules of governance and access to resources on state spending and investment have undergone profound changes, with serious impacts on distribution of territorial development opportunities One of the most visible change in the regional policies of countries in Latin America and the Caribbean, the Decentralization Process … .. Impacts to sit at national and local scale … (more likely) state, departmental or provincial

GLOBALISATION IN COLOMBIA Due to civil war, Colombia was unable to join the globalization in the nineteenth century … With Coffee Exports in the twentieth century Globalisation He joined State Interventions were productive and benefited more to the national interest. The state offered little support to companies, but strictly in exchange to modernize and exported. In the 60’s, after a model of import substitution industrialization, there was some changes

DECENTRALIZATION important part of the globalized world of decentralization under the concept of generating states which involves changes in governance that has consistently evolved considerably in processes or major phases of responsibilities has been granted territorial central sector, which obeys the eagerness of territoriality to get a role of the state coordinator and generating economic growth and development

DECENTRALIZATION IN LATIN AMERICA The acceleration process of devolution of spending responsibilities to local authorities due to cyclical aspects especially the debt crisis of the eighties, and the new global conditions, technological changes, seeking public participation new spaces, and change the economic model are the key elements of the beginning of decentralization in Latin America.

DECENTRALIZATION IN COLOMBIA. The Constitutional provisions in place in 1886 established a government marked by centralization both politically, and administratively modified changes in the administrative and legislative acts in the years 1936 and 1968, led to some reforms in the administrative side, as a preamble to a decentralization

LOCAL DEVELOPMENT theoretical approach to developmental theories should focus their study from the standpoint of concept, description and origin, where schools of thought offer different views, being necessary to orient the public, under the paradigm of the local primary actor development in a modern world

STANDARDS FOR LOCAL BUDGET To achieve the goals set in planning should be used to run the operation of the multi-year investment budget of the entities that comprise the system. The budgetary system is the mechanism underlying a number of programs to achieve substantial changes in the locations able to generate progress and well-coordinated from the local to national.

2. Conditions of Funding for Local Authorities’ largest source of financing for countries of the Andean community of nations comes from transfers from the national level, with specific destination predetermined rules, in order of importance, is the income of the local character whose source is given in property taxes, consumption and wealth, taxes and fees and other income which is not mandatory. Capital resources in different locations represent very little participation as funding sources, to meet the expenditures authorized by the Constitution and laws of this region, except the towns of Bolivia that if you opt for this resource to meet their programs and development plans. In general, the sources are intended to meet various development programs and plans under the constitutions and laws, which are financial tools used by different locations in the Andean region.

2. Conditions of Funding for Local Authorities Local authorities in the new context of modern democracies makes direct part of development plans aimed at boosting economic sectors and meet the basic needs of people with investments in education, health, and the provision of infrastructure and growth costs seeking tributaries are divided into direct and indirect, compared to income. Legal direct entry as the farm, see the capacity of the taxpayer directly, while indirect tax such as that required of industry and commerce, does not determine the earning capacity, if not the generation level of activity to which it belongs indirectly. The tax does not correspond to the rates, fees, fines, sale of services. The fees are charged to ensure a service, and fees are due at the price for services purchased or consumed.

3. Finding Funding for local sources of local financing, come in a significant percentage of transfers from earmarked national order and free resources dedicated to ensuring their destination and investment functions, especially for programs not supported with transfers. The disinvestment occurs in public works infrastructure, services, municipal equipment, private sector support, credit obligations and their financial expenses (amortization, interest and other expenses), they reduce the ability to operate and therefore the quota of indebtedness. One of the important aspects for the development of the localities referred to the management of the leaders in the administrative and fiscal. Focused on optimizing management of their resources through the use of modern administrative and financial instruments combined with the use of information technology, management must also actively involve the public through citizen oversight.

3.1 Securitization In South America, Argentina and Brazil started the process in 2000, and Colombia is beginning to find the mechanism of securitization in 1955, Act No. 50 which established the possibility of issuing bonds and securities representing property rights, mechanism was not welcome. Money is a scarce resource, so obtaining cash in the short term can be difficult and expensive for most local authorities, if only uses the money market (commercial banks), as a source of funding. American Historical Process 3.1.1 Securitization in Latin America 2004 TOTAL EMISSIONS: 7.9 BILLION DOLLARS

3.1.2 In Colombia’s financial sector in Colombia is governed by the money markets and capital markets (values). The money market is offered by commercial banks to accept short-term and capital markets, which consist of a number of participants who buys and sells stocks and debt instruments in order that the financiers meet their capital needs and investors put their excess capital in businesses that generate performance. 3.1 Securitization is worth mentioning that the financing scheme in Colombia are short and long term, the former are mainly used to fund liabilities under one year, its main source is spontaneous and the offer is given by commercial banks in terms of second type are aimed at developing large projects or long-term assets and its main sources of financing are commercial banks and the capital market, being the cheapest source.

3.1.3 Process description The Originator is the person who transfers the property or assets of the securitization process base, can individuals or corporations, domestic or foreign. Management Agent, is the spokesman of autonomous assets. It is responsible for collecting the proceeds of the issue and is related to such investors under spokesperson, according to the rights enshrined in the titles. The Administrator is in charge of administration, custody and preservation of assets or property subject to the securitization and transfer of the collection and management agent flows from such assets or property. The Dealer: are defined as financial intermediaries authorized to serve as a link between savers (workers, companies, government) and demanders of capital (business and government, family). 3.1 Securitization 1) corporate securities or to participate: In which the investor acquires an aliquot of autonomous assets or fund and shares in the profits or losses it generates. 2) credit content Titles: Incorporates entitled to the cancellation of principal and interest in accordance with the conditions stated in the title. 3) mixed Titles: The mixture of the two. That is, they can see a minimum or maximum profitability or both.

FOREIGN DIRECT INVESTMENT This phenomenon occurs when there is reason to locate production in different countries and firms have incentives for internationalization, ie, stimuli to maintain control over production processes

Foreign investment in Colombia. Foreign direct investment in Colombia in recent years presents a positive balance in its economy, the product of a conscious management of economic policies in productive sectors, ensuring the benefits of foreign capital, legal, security and logistics for those who want to invest in our country.

SOCIAL COHESION FUNDS source funds from cohesion becomes another opportunity to access resources to countries seeking to balance social, becoming a key issue in the integration process due to the disparities that can arise between regions that are established in the case of the European Union (EU), is a long term objective of reducing aid granted by many member states to their own regions, it is clear that only the Community can act effectively to correct these imbalances.

INTERNATIONAL FINANCIAL COOPERATION Latin America and the Caribbean proportional undoubtedly the best example of a well-developed network of sub-finance institutions, which consist of three major entities. The Corporacion Andina de Fomento (CAF), the Central American and Caribbean (BCEIA) and Development Bank (CDB). These institutions were created in the sixties with the aim of supporting the corresponding sub-regional integration processes and provide essential service to small and medium-sized countries in the region.