Costa Rica: More of the Same

The initiative for a National Strategy for Employment and Production created by the new Solís administration shows that there is still a belief that public officials know how to produce wealth.

Thursday, August 14, 2014


The Costa Rica entrepreneurs' opinion is convincing: the Union of Chambers states that "employment is not generated by decree, but through policies which improve the business climate" ... "Ronald Jimenez, president of the Costa Rican Union of Chambers and Associations of Private Enterprise (UCCAEP), explained that although the private sector generates 85% of employment in the country, the strategy of the Ministry of Labour was not put to consultation with the business community. "... "The productive sector requires legal certainty, competitive rates on energy and fuel, effectively simplifying procedures, coordinating education policy with business, better infrastructure and economic stability. These factors, to name some, are absent from the document. "

See National Employment Strategy and Production

After explicitly detailing the - more than well known - analysis of the situation regarding the Costa Rican economy, the "National Strategy for Employment and Production" expands on the statement of generic measures that are likely to be feasted on with delight by the corporation of consultants to SMEs, MSMEs, cooperatives, entrepreneurs, etc, and the "NGOs" dedicated to the management of credit for all of them. The government of the President makes clear that Solis believes that productive development and employment generation depends on the work of these consultants and public officials who administer the funds which will be used to pay the salaries of these consultants.

Regarding the real factors that affect economic development and through this create genuine jobs, as were announced by the leadership of UCCAEP , namely legal security, competitive rates on energy and fuel, effectively simplifying procedures, an education policy coordinated with business, better infrastructure and economic stability, this initiative by the Solis administration, brings little or nothing.

And as befits any government "initiative" it includes the creation of more bureaucracy: the "Executive Unit of the National Strategy for Employment and Production," and several other programs and offices.

See statement about the topic by the UCCAEP.

More on this topic

Costa Rica: Business Cohesion In light of the Crisis

July 2015

In the face of virtual political paralysis the productive sectors have agreed to an agenda of projects and initiatives to promote economic growth and employment generation.

From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector:

Costa Rica: Businessmen in Competitiveness Council

September 2014

Starting October the private sector and government will be working together to implement measures to improve the competitiveness and productivity of the economy.

From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):

Quo Vadis Costa Rica?

August 2014

The productive private sector is signalling a lack of dialogue and clarity as well as conflicting messages from the authorities of the new Costa Rican government, which is also proposing laws that discourage investment.

An increase of more than 4% in the salaries of public officials, lack of action over lowering the cost of energy, lifting barriers which generate legal uncertainty, and initiatives to increase the tax burden on the formal productive sectors are the issues concerning entrepreneurs in Costa Rica.

Costa Rica: Businessmen Ask For Concrete Actions From Government

August 2014

There are concerns related to lack of definition in key areas and the Solis administration's true implementation capacity is being questioned.

The guild of private companies has also criticized the fact that they were not included in the development of the employment strategy to be presented in the next few days by President Solis.

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