Reducing costs and barriers to foreign trade in Central American economies is key for the region to overcome the economic recession caused by the outbreak of Covid-19.
A report prepared by the World Bank explains that boosting economic activity and employing a higher percentage of the labor force are objectives that can be achieved through reforms that strengthen the private sector and attract investment.
Although the end of the year holidays is a threat to Central America for a second wave of covid-19 infections, it is expected that total closures will not be decreed since there are currently effective health control options, and less costly for the economy.
When the first cases of covid-19 were reported in the region in March 2020, most governments decided to paralyze a large part of productive activities and decree home quarantines.
The Inter-American Development Bank has warned that it will make conditional a loan of $419 million for the 2016 on restructuring of the Tax Administration and adoption of anti-corruption measures.
The loans granted by institutions such as the Inter-American Development Bank (IDB) and the World Bank to Guatemala are in danger if key transparency aspects relating to the functioning of the Superintendency of Tax Administration (SAT) are not restructured, as well as the Law on Procurement and Contracting State.
Between 2011 and 2014 the number of people with bank accounts grew in all Central American countries, with noteworthy growth in El Salvador of 23%.
In Guatemala bankariztion grew by 19% in the period in question, reaching 9.2 million people with at least one bank account. In Honduras' growth was 11%, Costa Rica's 14%, Panama's 19%, and in Nicaragua, the increase was only 5%.
Between 2010 and 2014 internet access in households in the metropolitan urban area in the country increased from 18.3% to 27%.
In 2010, it was reported that in rural areas of Guatemala only 1.4% of households had internet access, a figure that hasn't changed to date. Nationally, 12.8% of the population has access to the internet.
The manager of the National Institute of Statistics, Ruben Narciso, told Estrategiaynegocios.net that "...
Analysis of the characteristics of the business of supplying ships in Panama, participating companies, products and services required, and eligibility requirements.
From a statement issued by the Costa Rican Foreign Trade Promotion Office (Procomer):
- Expansion of the Panama Canal opens up opportunities for Costa Rican exporters to supply vessels
Between October 28th and 30th, Guatemala City will host a meeting between businessmen from various productive sectors in Spain and representatives from Central American companies.
This multilateral meeting aims to find business opportunities in the energy industry, transport, water and real estate development, among others.
SMEs in developing countries could generate jobs and significant growth by taking advantage of the market opportunities offered by clean technologies.
From a report by the World Bank:
SMEs in developing countries could generate significant growth and jobs if they take advantage of market opportunities that offer clean technologies, which reach up to $1.6 trillion.
The World Bank cites weak economic growth, low tax collection and low public investment as the factors affecting productivity and preventing greater economic development from being achieved.
Less taxes and consequently poor tax collection, coupled with limited public spending, are preventing Guatemala from achieving a better level of socioeconomic development, despite having achieved timid growth rates of GDP in recent years.
Although they are "often as dynamic and innovative as formal companies" enterprises in the informal sector say they see no benefit to regulate their situation.
A study by the World Bank concluded that "... 73% of informal firms have no interest in becoming regulated," not only because of tax payments, but simply because they say they receive no benefit from it.
The Minister of Finance in Nicaragua has signalled the need for public officials who lead the implementation of internationally funded projects to streamline processes.
Minister Ivan Acosta said in an article on Laprensa.com.ni that "... public officials and Bank staff -with the introduction of technology- can spend up to six months chatting by email about whether there is any objection to the process or not, while people are waiting for the projects. "
Out of the $80 million awarded in Costa Rica to the Limón Port City Project 5 years ago, only 12% of it has been spent, mainly on paying the salaries of public officials connected to the project.
Editorial
A few months ago a controversy arose in Spain over the allocation of funds for development, such as low-interest financing for development projects by a private construction company.
Through a mutual fund, the World Bank and other multilateral institutions, will be awarding $50 million to finance small and medium enterprises in the region.
With a mix of capital and a long-term soft loan the III Caseif fund, managed by Lafise Panama, will have $50 million for small and medium businesses who require funds to finance their operations.
The World Bank could provide $45 million required for the first phase of the project in Puerto Quetzal, Guatemala.
The International Finance Corporation, a member of the World Bank Group, is looking at providing a loan of $45 million to finance the first phase of the Quetzal Container Terminal. The director of the bank could approve the loan next month.
To be successful you need a good idea to accompany an indispensable ability and entrepreneurial drive.
A report entitled "Entrepreneurship in Latin America: A Lot of Companies and Little Innovation," prepared by the World Bank (WB), reports that in the region one in three workers are self-employed or a small employer. However, most of them rarely hire workers and remain small, even after decades of operation.
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