After the multi-sector dialogue in Costa Rica was concluded, the main risk qualifiers agree that because the agreements signed to reduce the deficit are not enough, the government should execute its fiscal policies in a timely manner.
Although Costa Rica's fiscal situation was already precarious before the health and economic crisis that led to the covid-19 outbreak began, the scenario started to worsen since March of this year.
After the UCCAEP in Costa Rica began to negotiate the lifting of the blockades with the self-proclaimed group Rescate Nacional, promoter of the protests, several business chambers distanced themselves from that decision and others have expressed their support.
Given the wave of protests and blockades that have been reported in the country, which arose after it was reported that to access a loan from the International Monetary Fund for $1.75 billion, the government planned to tax financial transactions, raise the tax on the profits of companies and persons, and increase the tax on real estate. The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) decided to negotiate the lifting of the blockades.
Faced with increasing chaos in Costa Rica due to demonstrations and blockades, a part of the business sector decided, unilaterally, to negotiate with representatives of the movement that incites to protest, and to reject the official call by the President of the Republic.
Costa Rican business leaders have expressed their dismay at the executive branch's apparent contradictions regarding the proposed agreement on fiscal issues and the strike threats made by public unions.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
Private Sector puzzled by attitude of the Executive Branch
A ship's captain is the person legitimately appointed to rule the ship, and must not relinquish power to rebellious sailors who want to set a course that serves their own interests and not the rest of the passengers.
EDITORIAL
In Costa Rica the crucial debate today is the weight in the country´s economy and productivity, of a minority of state officials who enjoy privileged salaries and working conditions, notably different to other workers, both in the public and private sector.
The dismantling of a network of corruption at the highest level in the Superintendency of Tax Administration has forced an analysis of the stability of the government of Otto Perez Molina.
Calderon raises three possible scenarios:
"...First scenario: precarious balance, which means continuing the current pace of deterioration in the political system and levels of governance, and at the same time assuming an increased fragmentation of the government bloc.
In some countries in the region the gap between those who have to manage a business and those who seek to govern a country is widening, with appalling consequences for the economic and social development of those nations.
EDITORIAL
Opportunity in decision-making and risk management.
- An entrepreneur who does not make decisions threatens the existence of their company, and consequently their personal assets, and often the family economy and in turn their children's future.
A Working Group has suggests fundamental changes in the conformation of the branches of government and their interrelationship.
In June of 2012, President Chinchilla announced the formation of a group of "experts on democratic governance," who took on the mission of "making concrete proposals for improving the institutional and democratic life in Costa Rica."
New economic approaches give prime importance to the issue of governance and transparency as prerequisites for development.
An article in Capital.com.pa reports on the damage caused by corruption to the possibilities of development for societies, focusing on the possible routes that Panama can take to combat the problem. But beyond that, all of the concepts of the writer can extrapolated to the unfortunate reality that, in terms of corruption, is seen in all Central American countries.