Lessons from Colombia

08/18/2009

Hopelessness is an illusion, a gripping force, but an illusion. I can choose to be an actor, not a reactor.
Holly Elissa Bruno, Happiness is Running through the Streets to Find You

World Forum Alliance member UNESCO's Policy Brief No. 35, "Payroll Taxes for Child Development," written by Emily Vargas-Baron, describes how Colombia is using payroll taxes to increase private and public support for vulnerable children and families:

"In 1968, the government of Colombia created the Colombian Institute for Family Welfare (ICBF) as a semi-autonomous service agency to provide child care, parent education, child protection, and nutritional services. In 1974 Colombia established a two percent payroll tax to fund the services of ICBF, and in 1988, this tax was raised to three percent. As a result, all private and public institutions of all sizes must deposit three percent of their total payrolls each month into a central bank account managed by ICBF.

"This has resulted in significant funding for ICBF services. In 2004 the agency ECD tax income was over $540 million. In addition, ICBF attracted over $66 million in funding from a wide number of international and national NGOs. As a result, in 2004, ICBF was able to provide services to over 9 million people (over 21 percent of the population).

"The Policy Brief observes that this system is not without its challenges:

Income rises and falls based on changes in the state of the economy making budget planning difficult;
Other government ministries are competing for ICBF funding;
The tax is opposed by business leaders who claim it inhibits growth in the private sector."

Later this year (November 4, 5, and 6), the World Forum Foundation will be collaborating with CINDE in an International Early Childhood Forum to address private and public participation in ECD in Cali, Colombia. For more information contact: [email protected]

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