Achieving greater social equity is a goal of every developing country. There are two ways to achieve it: through a widespread improvement in access to goods and services - such as education and health - or the expansion of opportunities linked to individual merit. There are successful and disastrous experiences of both, and their different combinations. What is clear, whatever the formula, is that equity is only possible with resources. It is impossible to close the gaps without wealth generation.
Except in economies where the State owns the means of production, it is primarily the private sector that generates wealth, the result of individual initiative and business freedom. From a private sector, made up of the independent work of individuals and micro, small, medium, and large companies. These are the ones that energize the economy and generate the resources to achieve greater social equity. Productive sectors that generate income for individuals and contribute resources to the State.
That is why it is surprising that some aim to achieve greater equity by preventing the private and public sectors from operating. Preventing formal commerce from functioning, agricultural products from reaching consumption centers, people from going to work, and children from going to school is not the way to achieve greater equity. On the contrary, it moves us away from this worthy goal. Such contradiction within society, combined with vandalism and violence, only generates unease, uncertainty, and affects investor confidence.
It is noteworthy, for example, the attack on the growth law. A law that, before being declared unenforceable due to procedural flaws, has demonstrated its benefits. It is no coincidence that the country is one of the fastest-growing in a stagnant region and a tumultuous world. It is true that economic growth per se does not guarantee greater social equity, but without growth, this is definitely impossible. Opposing a law that promotes growth and formal employment and now includes a mechanism for VAT refunds to the poorest is nonsensical.
In the same vein, it is also an attack on sectors that operate within the framework of legality, contribute to growth, and generate resources to have where to distribute wealth and generate greater equity. Even television actors have come out to promote the use of cash and have invited people not to make financial transactions in December. An irresponsible call that would have a serious effect on commerce. Only with the protest days in Bogotá have more than 700,000 merchants been affected. Absurd.
A similar situation occurs with those who oppose, not only in this context but for some time now, the oil and gas industry, one of the largest contributors of resources to the country, at both national and regional levels, and which, along with mining, represents half of Colombian exports. Specifically, they also oppose exploring new deposits and researching new techniques that would allow the country to develop its full potential before it is too late, in addition to generating more wealth and employment.
In terms of resource generation, the most recent economic report from the Colombian Petroleum Association, ACP, indicates, for example, that companies dedicated to the exploration and production of oil and gas contributed 15.9 trillion to the country in 2018 in income tax (collected in 2019), royalties, contractual economic rights, and other taxes. This represents about 70% of the net income of 2018 and a 59% increase compared to the contribution in 2017. If we add Ecopetrol's dividends, the total contribution in 2018 amounted to 27.6 trillion, which is equivalent to 20% of the Current Revenues of the Central Government and a quarter of the income tax collection from corporations. A sector, like few others, capable of generating resources for the country. Resources for public investment, and to achieve greater equity.
These contributions have been and will continue to be fundamental for fiscal sustainability and to support social and economic development programs, the productive and energy transformation led by the National Government. That is to say, to contribute, along with other economic sectors, to greater social equity. Equity that can only be achieved with a dynamic private and public sector, capable of generating resources and investing them well.
Colombian Association of Oil and Gas