economy
Coffee: Parafiscals with Results
The National Coffee Fund was Colombia's first parafiscal fund and remains an example of the model. It is an account made up of resources with a specific destination for the strengthening of the coffee sector, whose administration has historically been entrusted to the National Federation of Coffee Growers within the framework of a decentralization by collaboration scheme recognized by the legislator. The administration contract is renewed every ten years, and it is prudent, on the eve of that decision, to review its management.
TL;DR
- The National Coffee Fund (FoNC) is Colombia's first parafiscal fund, managed by the National Federation of Coffee Growers.
- Investments in public goods ($6 trillion COP) have exceeded contributions ($3.7 trillion COP) over the last decade.
- Public goods include scientific research, technical assistance (Servicio de Extensión), and social projects (schools, health centers, infrastructure).
- The FoNC has managed liabilities such as the pension deficit for the merchant fleet.
- The Federation has successfully built the 'Café de Colombia' brand, generating royalty income.
- The Federation provides guaranteed coffee purchases by securing private financing, supporting 33 coffee grower cooperatives.
- The Federation's administration is legitimized by the democratic and participatory nature of the coffee guild.