Guatemala was the only country in the region that improved its position in the global ranking monitoring businessmen's conditions for doing business, while the others went backwards.
The World Bank released the results of the Doing Business 2020 report, which measures the regulations that favor or restrict the development of business activity in different countries.
In the 2019 Global Competitiveness Index, Costa Rica, Panama, Guatemala, El Salvador, and Nicaragua fell back in the ranking, while Honduras registered no changes and the Dominican Republic was the only country that improved.
According to the report by the World Economic Forum, during 2019 Costa Rica ranked 62 out of 141 countries. It was followed by Panama at box 66, the Dominican Republic at 78, Guatemala at 98, Honduras at 101, El Salvador at 103 and Nicaragua at 109.
Salvadoran industrialists claim that with the presidential veto of the administrative simplification law, the country has lost a valuable opportunity to improve the already deteriorated business climate.
EDITORIAL
With the veto of the Administrative Simplification Act, the Salvadoran government is sending a clear message to the business community and to society in general: There is no interest in paving the way for the private sector to generate more jobs and, consequently, more wealth and socioeconomic development.
Knowing how to laugh at yourself is a virtue that every entrepreneur in Costa Rica should have, even though it might all end in tears.
This is what Alfonso Carro does in his article on Crhoy.com: laugh at himself, at the same time bringing to light the helplessness felt in light of the deteriorating conditions for investment in an economy such as Costa Rica, which was once number one in Central America.
Traders, industrialists and entrepreneurs in the agro sector disagree with the position of the main private sector union over the negotiation of new taxes.
Three business unions have ratified their opposition to new taxes in Costa Rica and have made known their total lack of empathy with the way the Uccaep, an organization that unites most of the unions in the private sector, has dealt with the Solis administration over tax issues, the negotiation of a shareholder register proposed by the government and other aspects related to the fiscal problems affecting the country.
The government has been presented with a proposal for comprehensive reform of the state which includes issues such as flexible working hours and the opening of the electricity and hydrocarbons markets.
The Costa Rican Union of Chambers and Associations of Private Enterprises (Uccaep) gave a warning in the report handed to President Luis Guillermo Solis about the "...
The private companies should have to consider the risk posed to Costa Rica's business climate by the excesses of state union leaders.
EDITORIAL
Costa Rica's democratic traditions pale before the attempt made by a trade unionist to silence the media by threatening the safety of journalists.
An article in Crhoy.com quote statements made by the union member Fabio Chaves regarding the news in Costa Rican media revealing information about unacceptable privileges enjoyed by many officials, acquired against article 57 of the Constitution itself: "Wages will always be equal for equal work under identical conditions of efficiency."
The lack of changes in the economic outlook and the business and investment climate is keeping the private sector waiting for clearer signals of the path the economy will take.
From a statement issued by Deloitte Costa Rica:
This study measured the perception of 103 executives from local and multinational companies between 20 April and 15 May this year.
A World Bank study has evaluated regulations which exist in 22 cities in the region for starting new business, registration, construction, and border trade.
From a statement issued by the World Bank:
Doing Business in Central America and the Dominican Republic 2015 compares business regulations in 6 Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) and the Dominican Republic.
Business confidence is still falling with complaints being made about the absence of an agenda which aims to improve the business climate in the country.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
Business confidence falls at the end of the year
• 6 out of 10 companies have faced significant increases in production costs over the last year.
Employers in the region are complaining about a lack of long-term development policies, and are asking for Government transparency, effectiveness and legal certainty, so that they can continue investing in the region.
During a meeting between businessmen and government called 'Expanding opportunities: promoting the private sector and job creation', entrepreneurs from different sectors shared their concerns and views on the investment climate in the region.
In the view of entrepreneurs, insecurity is still the main factor preventing the arrival of larger flows of foreign direct investment to the region.
Despite the benefits and incentives of all kinds offered by governments to encourage the establishment of foreign companies in Central America, as long as violence and insecurity is not tackled in a more effective manner, investment flows will continue to dwindle.
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):
Fiscal deficit reduction, improved infrastructure and better governance.
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
Editorial
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.