Política tributaria e incentivos fiscales: consideraciones para el desarrollo económico de Cartagena de Indias

Abstract

This paper develops a set of criteria for tax policies that contribute to local development in Cartagena, Colombia. For this purpose, I review the empirical evidence on the use of local and regional tax policy in other countries. Though the results are not conclusive in favor of using tax policy to attract private investment, in four of the cases reviewed there is a predominance of policies to promote the relocation of firms. Empirical analysis does not prove its effectiveness to attract investment, in particular, DFI. Some lessons for territorial development in Cartagena are drawn from the Brazilian experience. The cases examined show that state participation is an indispensable element in any strategy to attract private investment; it is necessary to use a variety of instruments, from land grants to labor training programs. All this requires a significant fiscal effort, via the creation of financial funds to support incentive programs.