As a result of the economic slowdown and the imbalance in public finances, Costa Rica faces a complex and high-risk future, in which the margins for action and maneuver will be increasingly limited.
The State of the Nation 2019 report explains that the economic slowdown and imbalance in public finances created a scenario of great complexity and risk, both economic and political, which aggravated the structural weaknesses or "blind spots" of the national development style.
In Guatemala, businessmen are asking the incoming government to create a public policy on foreign investment that incorporates issues such as fair and equitable treatment of investments, the minimum standard of treatment and the definition of arbitrariness.
Foreign direct investment (FDI) in the country is not having its best moment, as figures from the Bank of Guatemala indicate that in 2018 the flow captured was $1.031 million, 12% less than the $1.170 million reported in 2017. See official data.
The plan being designed by the Guatemalan government is in the revision phase, and has the aim of encouraging production of the sector and relations between producers and consumers.
Regarding the objectives of the new policy being prepared by the authorities, Pablo Girón, head of the unit of the National Council for Agricultural Development (Conadea) at the Ministry of Agriculture, Livestock and Food (Maga), explained to Prensalibre.com that "...'The idea is to make economic development strategies for fruit production, with a vision, mission and pointing northwards, in the direction of where we want to go towards the future'."
In Guatemala, the National Competitiveness Policy has come into force, which aims to promote development through 11 economic clusters.
The Ministry of Economy reported that the National Competitiveness Policy, which is part of the 2018-2032 period, will focus on "... the 11 clusters chosen from a list of 25 that had been previously identified, those being: forestry, fruits and vegetables, processed foods, beverages, textile clothing and footwear, metalworking, light manufacturing, tourism and health services, TIC's software & Contact Centers, transport and logistics, construction."
The Committee of Chemists has endorsed the policies of management of industrial chemical products, care and prevention of chemical accidents, and registration of transfers and polluting emissions.
From a statement issued by the Ministry of Foreign Trade:
The Committee of Chemists that evaluates policies related to the management of industrial chemical products in the process of our country's adhesion to the Organization for Economic Cooperation and Development (OECD), has issued a formal opinion in favor of the entry of Costa Rica to this Organization.
In spite of the economic progress that has been achieved in Costa Rica, employment growth has stagnated, results in education are deficient, and anti-competitive regulations continue to hinder business development.
The latest OECD economic study on Costa Rica details the factors that support the significant socio-economic achievements of the last decades, as well as the pending challenges to ensure sustainable and more inclusive growth.
In the first projects that are planned to be developed as part of the plan, around $116 million will be invested in construction works, vehicle purchases and other things.
The first investments will be made in seven departments, and the province to which the most resources have been allocated is Quiché, which will receive an investment of $46 million.In this region, 43 projects will be implemented, including the construction of a service center and the acquisition of garbage trucks.
The plan proposed by the Morales administration to increase the country's competitiveness focuses on the development of forestry, agriculture, textiles, clothing and footwear, metalworking, light manufacturing, tourism and construction, among other things.
Authorities at the National Program for Competitiveness -Pronacom- presented guidelines for the National Competitiveness Policy 2018-2032. This set of strategies, which aims to establish guidelines on competitiveness at the national and regional level for the next 15 years, was developed jointly by the productive sector, public sector, academia and civil society.
The OECD Consumer Policy Committee has approved policies on insurance and private pensions, and recommended improving risk-based supervision and promoting the participation of more insurers.
From a statement issued by the Ministry of Foreign Trade:
San José, January 31, 2018.After a technical review of the regulations in the insurance and private pension sectors (supplementary and voluntary pension schemes), the Private Insurance and Pensions Committee of the Organization for Economic Co-operation and Development (OECD) has issued a favorable ruling for the entry of Costa Rica to said Organization.
In the view of the OECD, "the country depends to a large extent on a few sectors, such as construction, the financial sector and the Panama Canal, which will be insufficient to support greater socio-economic progress and greater inclusion."
The "Multidimensional Study of Panama," produced by the Organization for Economic Co-operation and Development (OECD), concludes that the country needs more resources to finance investment in key social areas, including education and skills.
An ICEFI study concludes that corruption in Guatemala, El Salvador and Honduras covers "virtually all sectors" and in Guatemala alone, the losses generated are estimated at $550 million per year.
The book "Corruption: Its Paths and Impact on Society and an Agenda to Confront it in the Central American North Triangle", "... studies the relationship between corruption and democracy, highlighting that corruption in the C.A.N.T -El Salvador, Guatemala and Honduras - has special characteristics derived from historical aspects, such as the construction of weak states, periods of authoritarianism, civil war and counterinsurgency systems, and the impairment of judicial independence."
"When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed."
The OECD Committee on Agriculture has approved a policy for the sector, but warned of the need to raise productivity and reduce excessive agricultural institutions.
With the approval of the Agriculture Committee of the Organization for Economic Co-operation and Development (OECD), the agricultural sector becomes the third of 22 sectors to obtain the necessary approval to complete the process of incorporating the country into the bloc. The OECD has already endorsed public policies on trade and health.
The public sector felt to be the most corrupt is still Nicaragua (transparency level 26 on a scale from 0 to 100), followed by Guatemala (28), Honduras (30), El Salvador (36), Panama (38) and Costa Rica (58).
In 2016 the perception of corruption in public institutions increased in all Central American countries except Guatemala, where it remained as in 2015 and in Costa Rica, where it fell.
The choice of Donald Trump as the 45th President of the United States is another clear example of how the deterioration of liberal democracies enlightens the way for the emergence of authoritarian leaders.
EDITORIAL
(Both the article by Kevin Casas on Nacion.com as well as this editorial prologue on CentralAmericaData.com were written one day before the presidential election in the United States, when the prognosis was that Hillary Clinton had a more than 80% chance of win the election.)
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