Once again conservationism is at the service of sectoral interests, paralyzing investment in infrastructure which is essential for halting the deteriorating competitiveness of the economy.
EDITORIAL
In Costa Rica an investment of billions of dollars to build a container port has been held up by six years of legal proceedings, and added to this will be a further 5 months due to maneuvers made by uncompromising conservationists in league with unionists.
Those who are elected to perform executive positions such as the Presidency of the Republic must be EXECUTIVES, not hide behind their shields by calling for assemblies when it comes to the responsibility for decision-making.
EDITORIAL
In Costa Rica energy, specifically electricity, has been for many years, a subject continuously on the agenda of business and policy makers because of the negative impact of its high cost on competitiveness.
In Costa Rica President Luis Guillermo Solis is urging the national population to consume nationally grown instead of imported rice, "even though it is more expensive."
Extracted from Reportearroz.com:
ASIA
India and Thailand, a tug of war for first place.
As part of Asian exports, India and Thailand are playing in first position. According to official data, Thailand will be the largest rice exporter after India held the lead for two years.
In Costa Rica the main political operator of the new government has stated that from now on they are paying attention "not only to the productive business sector, but also to the social sector."
EDITORIAL
An editorial in Elfinanciero.com analyzes statements made by the Minister of the Presidency, Melvin Jimenez, who in a recent interview given to that newspaper noted that "...
The complaints made by industrialists revolve around informal trade, the fight against smuggling, competitiveness and innovation.
From a statement issued by the Chamber of Commerce of Costa Rica:
At a meeting between the President of the Republic, Luis Guillermo Solís, and representatives of the Chamber of Commerce of Costa Rica several concrete proposals were presented to the Government in four priority areas for the work of the organization, in order to start work together.
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):
The Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP) and the Executive have agreed to the formation of a council to facilitate the coordination and monitoring of public policies on competitiveness, innovation and employment.
Moody's has removed the country's rating of "investment grade", citing the increase in public spending and political inability to implement fiscal reform.
From a statement by Moody's:
New York, September 16, 2014 -- Moody's Investors Service has today downgraded Costa Rica's government bond rating to Ba1 from Baa3. Moody's has also changed the outlook to stable from negative.
In Costa Rica the Solis administration, which promised that no new taxes would be applied in the first two years of its government, has granted a huge increase for public employees, and these are the same people who are now proposing a "Robin Hood" tax.
EDITORIAL
President Luis Guillermo Solís seems to be increasingly disconnected from the Citizen Action Party which brought him to power, and his government seems more and more to be the result of complex interactions within an academic union corporation, where the dominant political concepts seem to be drawn from melodramas of the sixties and seventies of the twentieth century. The main feature of the members of this outdated corporation - especially its main leaders - is the disconnect with the world of the real economy which allows them to regularly receive their salaries regardless of actual productivity of their labors.
The Tourism Regulatory Commission has not managed to meet since the month of May, which creates uncertainty and could lead to negative economic implications for the country.
From a statement from CANATUR and the Costa Rican Chamber of Hotels (CCH):
Chambers in tourism sector demand that the Ministry of Economy convene the Tourism Regulatory Commission
The academic corporatism which has come to power in Costa Rica brings a "vision of the world of the Social Democrats of the sixties and seventies."
An analysis carried out by Juan Carlos Hidalgo on his blog on Elfinancierocr.com on the proposed Costa Rican state budget points to a decalogue of macroeconomic horrors that besides contradicting election promises on cost containment and austerity, show an outdated vision of the new government regarding the alleged benefits of increased public spending in the functioning of a modern economy.
An announcement has been made that operation permits will be extended to 18 companies already operating under the scheme and licenses granted to four new firms who will enter the scheme in the short term.
According to indications made by the president Luis Guillermo Solis to AmeliaRueda.com, 22 decrees have been signed which "... relate to expanding and awarding new licenses to these companies ...
The new organization decreed by the executive branch no longer considers tourism to be a major industry but as a dependent subsector of the Ministry of Economy.
Tour operators expressed dissatisfaction with the measure, while the President himself Luis Guillermo Solís, signer of the decree in question, declared he was unaware of the situation.
From a statement issued by the National Chamber of Tourism (CANATUR):
Mer-Link and CompraRed are fighting each other, "as if they were two private companies seeking to address the issue of the Costa Rican state."
An article on Crhoy reports that "Deputies are asking the government to accelerate the transfer of purchases to the Mer-Link system ... Members of the Committee on Revenue and Public Expenditure yesterday received representatives from Digital Government and the Ministry of Finance, who are fighting over which is the best system to use for public procurement."
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.
EDITORIAL
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" ...
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.