Less Government More Market

Costa Rica is beginning to suffer the consequences of a Keynesian policy applied by the government to lessen the effects of the economic crisis.

Monday, October 4, 2010

"If there are no jobs in the private sector, let the State offer them. It is a simple remedy and especially beneficial for political parties in power as a tool to win votes and stay in power.”

The problem is that these jobs, often artificial, must be paid by taxing the private sector which must in turn tighten their belts, reducing costs, which begins normally by reducing personnel.

Juan Carlos Hidalgo, on his blog at Elfinancierocr.com, discusses this issue, along with other problems being faced by the private sector in Costa Rica, like uncertainty about currency exchange, the excesses of government red tape and differences in treatment of national investment as compared to foreign investment.

More on this topic

Costa Rica: Business Confidence Down 10%

May 2014

The business confidence index calculated by the "Business Pulse" survey reached its lowest level in the last two years, with negativity being felt in the services and construction sectors in particular.

From a press release issued by the Costa Rican Union of Chambers and Associations of Private Enterprises (Uccaep):

Costa Rica: Proposal to Tax Remittances Sent Abroad

January 2013

Representatives of business associations have proposed ten measures to prevent the entry of speculative capital into the country and to provide flexibility to the exchange rate without local currency appreciating.

Elfinancierocr.com reports that "Business representatives this afternoon delivered a plan with 10 steps to curb the heavy influx of foreign capital", among which was "a tax on speculative capital inflows, in addition to promoting a specific tax on remittances sent abroad, of 5% for national banks and 5% for ‘suitcase’ banks".

Businessmen Concerns in Costa Rica

December 2010

The slow opening of the telecommunications market and the exchange rate are key factors in the decline in business confidence over the previous quarter.

• Perception and business confidence down for the second consecutive semester
• UCCAEP urges a national agenda to boost productive activities

What Do Costa Rica Businessmen Want

February 2010

Easier government procedures, security, sufficient energy, linking education with development, infrastructure and modern labor laws.

UCCAEP, the Union of Costa Rican Private Enterprise Chambers and Associations, submitted president-elect Laura Chinchilla a list of 10 things they consider crucial for the country to move forward:

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