When public resources are very limited, as it happens in Central American countries, association schemes between the State and the private sector become essential for developing the infrastructure that the region so badly needs.
A report from the Secretariat of Economic Integration (Sieca) states that "...In Central America, growing fiscal constraints faced by the countriespublic sectors make it increasingly difficult to achieve efforts for long-term infrastructure projects.In this context, Public-Private Partnerships (PPP) become relevant as an alternative measure of financing where private participation sector is facilitated in partnership with the government, with the aim of improving quality of services, reducing operating costs and capital, generating additional income, improving public management and minimizing budget spending.
The Costa Rican company increased its sales by 2% compared to 2014, thanks to the dynamism of flavored alcoholic beverages in the US, foods in Guatemala, and beers, wines and spirits in Costa Rica.
Flavored alcoholic beverages, especially in America, and increased profitability in beer, wine and distilled drinks in Costa Rica and food in Guatemala, boosted Costa Rica Florida Ice & Farm's operating income in 2015, reaching $179 million, 13% more than in the previous fiscal year.
The ENADE 2015 survey reveals that 90% of Salvadoran entrepreneurs believe that the country has regressed in its competitiveness compared to other countries in the region.
In the view of the private sector, among the factors that have caused a loss of competitiveness for El Salvador are the high levels of crime, political and economic instability, constant changes to laws, lack of competitive infrastructure, and increased taxes.
Growing institutional weakness in several countries of the isthmus brings to the forefront the responsibility of the business sector to keep the economy of this region moving forward.
Currently, the governments of several Central American countries are showing signs of weaknesses which - to different degrees- point to a sharp decline in institutional quality. Whether due to severe episodes of corruption, as is the case in Guatemala, or because of the notorious political inexperience such as in Costa Rica, or exacerbated by populist practices such as in El Salvador, the normal functioning of the economy is being hampered, taking away the ability to compete in real productive activities, and opeing the floodgates to lobbying actions on the part of businesses, to the detriment of those improving the quality of their products and services.
The sum of growing state debt, increasing insecurity and lack of government actions aimed at recovering real production, is creating a perfect storm.
"... The Salvadoran Foundation for Economic and Social Development (FUSADES) said the country could be entering into a severe financial political and social crisis, if a stop is not put to the uncontrollable debt levels, and if the engines of economic growth keep being smothered. "
Businessmen are asking for "... the establishment of concrete commitments and legal limits on the financial debts that the government may take out in the name of all Salvadorans."
From a statement issued by the Chamber of Commerce and Industry in El Salvador:
The union of industrialists states that the government's five-year plan lacks any definition of concrete actions which would allow it to bring about anticipated results.
From a statement issued by the Salvadoran Association of Industrialists (ASI):
In the view of industrialists it is a document which contains some important evaluations and defines priorities for government issues, but it lacks a concrete action plan to provide solutions to the serious problems we Salvadorans are facing, especially with regard to violence, stagnation of the economy and lack of jobs.
The Law on Legal Stability for Investments has been approved, which aims to improve confidence in the country preventing changes to incentive schemes granted to foreign companies.
From a statement issued by the Legislative Assembly of El Salvador:
Legislative Plenary approves Legal Stability Law for Investment
According to entrepreneurs the government's proposal for the development of the manufacturing sector does not include a budget nor does it specify how results will be measured.
The Salvadoran Association of Industrialists (ASI) highlighted a number of deficiencies observed in the National Policy for Development, Diversion and Productive Transformation of El Salvador.
Employers point to political instability, energy costs and lack of infrastructure as the main factors keeping out investment and reducing competitiveness.
A survey carried out with employers by the National Association of Private Enterprise (ANEP) showed as its first result the lack of competitiveness of the country in terms of attracting foreign investment, due to uncertainty created by political instability.
On June 27, business leaders from the region will present their proposals to the presidents for improving and eliminating barriers to intraregional trade.
In the meeting with the presidents from the region scheduled for June 27 in the Dominican Republic, guilds that make up the Federation of Private Entities of Central America, Panama and the Dominican Republic (FEDEPRICAP), will describe once again the obstacles that currently limit the competitiveness of Central American companies.
The government has agreed to modify the terms of the tax reform proposal to take into account criticisms made by the private sector.
Salvadoran private companies have outlined to officials the adverse effects that the country would face if the proposed new tax measures were applied, receiving signals of openness to a discussion from the Government, who for the first time since 2009 and 2010 has agreed to negotiate tax reforms with entrepreneurs.
On March 20th-21st businessmen and representatives of the governments of the region will meet in Tela, Honduras.
Entrepreneurs and representatives of governments in the region will attend a meeting of the International-Latin American Business Council (CEAL) to be held in Honduras on 20 and 21 March.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand. The OHNE brand has 8 product lines: square bread, sweet...
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