 Hi everybody. I will present one of the papers we are doing here in Colombia. The paper is called the Distributive Impact of Taxes and Social Spending in Colombia. These are my co-authors of the paper. Okay, let me explain some ideas. First, this paper has the objective of establishing the incidence of taxes and social policy and social spending on poverty and inequality in Colombia. So we use our tools, combined with the CIQ, the commitment to equity of the Tulane University. And the work we have done at Fez Arroyo here in Colombia with the support of the AFD includes analysis from 2017 to 2020. In summary, we find that the incidence of state redistribution mechanism is important but after ruining a set of simulations, there is enormous room to improve the policy. Let me explain the CIQ methodology. We start the analysis here using the market income, from household service and aiding the pension contribution from the employers. So after this, we add to the income the direct taxes. The direct taxes. Sorry. So we add the direct cash transfer, the program, families and action, pensions, ingreso solidario here in Colombia. And we subtract the direct taxes, like income tax, to get the disposable income. Next, we add all the indirect transfers. That is stratified public service like water, energy, gas and so on. And subtract the indirect taxes, the EVA or BAT, value-added taxes, to obtain consumable income, consumable income. And finally, we add in-kind transfers. This is a health and public education. And subtract payments from the use of these services. So in each state, from market income, disposable income, consumable income, and final income, we estimate in each state the poverty and the genetic coefficients to see where it is working the distributed mechanisms here in Colombia. And these are the main results. Here, there is the total poverty. So regarding total poverty, we find that the distributed effects of taxes and social spending are not significant. Yes, except for the spending here, the spending on health and education, which reduce the poverty, the initial poverty from 43.4% to 38.9%. And regarding the extreme poverty, the results are more sensitive because they catch transfer subsidies and other transfers. The total effect from market income to final income is a reduction of seven points in extreme poverty after all the social spending and all the taxes in Colombia. And regarding to income distribution, we start the genetic coefficient in Colombia from 0.59%. And the results have the same tendencies. And the most important effects are those of education and health. The genetic coefficient reduced by six points. All the distributed mechanisms in Colombia reduced six points in the genetic coefficient. And here are the results from Palma indexes that have the same tendencies. Okay. We did some policy simulations from taxes and social spending. First of all, first of all, we increased the tax base in Colombia in such a way that the income limit to declare taxes was half of the current value, first. And then we increased the tax base, first. We modified the progressive tax structure to obtain higher effective rates. And we could exemptions in Colombia from 34% to 17% of net income. And the last simulation, we doubled the nominal tax rates on dividends and occasional earnings at 10% on dividends and 20% on occasional earnings. And with the social spending, first, catch transfers during the pandemic period, the program ingreso solidario in Colombia, the coverage of this program was increasing for 3.1 to 4.1 million. And we introduced in the simulations a progressive subsidy that was previous flat for everybody, for every household in Colombia. And we introduced in the simulation a universal coverage of the program for older adults living in poverty with a transfer of one poverty line for each household. And last, an extension of the value added tax reform from 1 million to 2 million households. And we will see the results of the change of all these changes in the policy. Let's see the main results. First on total poverty and then on extreme poverty. Then we see that thanks to changes in social programs, to change in social programs, poverty was reduced by 9.5 percentage points in disposable income. And the combined effect on taxes and spending reduced the poverty in Colombia in the simulations, in the joint simulation by 14.5 points in final income from 43 to 29%. Just doing these improvements in taxes and social spending. And regarding to extreme poverty, it was reduced 9.5 points in disposable income and 11, 11 points in final income from 16 to 6% a reduction of 1 third in the extreme poverty. Okay. And let's see the joint simulation on results to income distribution. First on genie. Then the simulated changes in social programs and taxes have a huge effect, a huge effect on disposable income inequality by reducing the genie coefficient by 9 points. Just because the cash transfer improvements compared to the current three points reduction in 2020. And the final effect on all policies, taxes and transfers, the final effect reached 11 genie points which would leave Colombia with a distributed effect like that of some developed countries. And these are the results on palma coefficients. Conclusions. Then we see a package that improves the basic income and the universal pension may be the best tool to sustain a population that lives in very precarious condition of hunger and access to basic services. Second, the current redistribution of disposable income reached three points in the genie coefficient now in 2020. But with the improvements in taxes and social spending, improvements of a additional points in the genie coefficient, 11 points in total could be achieved. And from market income, the final income, the changes are transcendental even with such a market initial concentration of the genie coefficient in Colombia. And that's all. And thank you very much.