Tuesday, 24 November 2020

Costa Rica: A Greek Tragedy in Central America

Tragic_comic_masks_-_roman_mosaicQCOSTARICA – The country which used to stand out in the region because of its good relative level of economic, social and educational development, is accelerating its march downhill in terms of productive competitiveness, income distribution and training.

The country has become more expensive than other countries in the region, prompting many foreign companies and now national, to invest elsewhere.

A national businessman made the point last week, after more than a half century of business growth, not experiencing financial problems, in fact in the throes of increased investment, said it could no longer maintain its production in Costa Rica because the country “became very expensive and a high risk for investment.”

- Advertisement -

“… High production costs in Costa Rica, such as electricity rates and the tax burden, coupled with uncertainty, has forced the company Alimentos Jack‘s to announce last week the transfer of 50% of its production to other countries,” said its president Andrés Ignacio Pozuelo, according to an article in Nacion.com.

The businessman added that “… Costa Rica is one of the countries with the fastest growing energy and manufacturing costs. For example in terms of the corn snacks produced by the company, the cost per kilo in El Salvador or Nicaragua, is 25% lower than it is here. The cost per kilo of potato chips produced in the US is about 30% cheaper than those produced on national soil, and for cookies and sweets production costs are 16% lower in Chile. ”

Meanwhile, during the National Congress of Private Enterprise, a representative from the State of the Nation Program, said “… Costa Rica is an expensive country, despite not having the levels of development needed to afford this luxury … “,” … one such example is that the country is 20% more expensive on average than the rest of the countries in Latin America. ” See: State of the Union: ‘Costa Rica is an inconveniently expensive country’

Representatives from the productive sectors are unanimous in concluding that the high cost of energy is one of the main factors in their loss of competitiveness compared to competitors abroad, as well as the inability of government to reduce the high and rising fiscal deficit, which is a serious factor for uncertainty over investment planning in the country.

- Advertisement -

At the same time, during the National Conference of Private Enterprise (Congreso Nacional de la Empresa Privada), the representative of the State of the Nation Program, said “… Costa Rica is an expensive country, despite not having the levels of development needed to afford it.” See: State of the Union: ‘Costa Rica is an inconveniently expensive country’

Victor Morales, Minister of Labour, referring to rising unemployment in Costa Rica says “… There is a mismatch between supply and demand in the business sector There is a demand for skilled technicians;. But the majority of hand labor in Costa Rican is unskilled, 60% have not completed a secondary education. It is a national tragedy”. See The Impssible Costa Rica.

Meanwhile, the Ministry of Finance, which is supposed to execute the necessary policies to contain public spending, is requesting a gym in the building that aims to consolidate its offices. On the other hand Albino Vargas, the leader of the main union of “privileged state officials”, urges tax reform to raise taxes “for the rich”, referring to the danger that Costa Rica suffers the same debacle that Greece is suffering Greece.

“Tax reform is the option to keep happening to us as in Greece,” says Vargas.  The union leader added , “to circumvent “… privatizations, mass layoffs of public employees, wage reductions, elimination of collective bargaining will, outsourcing and labor flexibility.” See ANEP: Tax reform is the option to keep us whatever Greece

What Albino Vargas does not understand is that the only way to prevent further exodus of productive investments, thereby increasing unemployment will lead inexorably to Costa Rica to “Greek drama” is the early adoption of the same structural reforms that now, “in extremis” Greece should adopt.

 

- Advertisement -

- Advertisement -
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Canada’s largest city going on Covid lockdown

QTRAVEL - Canada's Prime Minister, Justin Trudeau, on Friday warned so-called...

Remittances grow in Nicaragua despite the coronavirus pandemic

“Everybody sends money to family members for their daily subsistence and...

MOST READ

Dengue cases in 2020 already exceed all cases in 2019

QCOSTARICA - As the Minister of Health, Dr. Daniel Salas, remarked Friday during the noon press conference from Casa Presidencial, "Dengue has not taken...

American Airlines eliminates change fees in trips from Central America

QTRAVEL - American Airlines announced on Thursday, November 19, the immediate elimination of the US$200 fee for changing the ticket from Central and South...

This week begins the transition to the dry season in the Central Valley and Guanacaste

QCOSTARICA - The transition to the dry season in the Central Valley and the Guanacaste (North Pacific) will begin this week, as these areas...

chorotega Region promotes campaign to promote mental health and prevent suicidal behavior in times of COVID-19

QCOSTARICA - Product of the joint work of the Ministry of Health (through the Health Governing Area of ​​La Cruz), Universidad Estatal a Distancia...

19 dead and 45 injured in traffic accident in Waslala, Matagalpa

TODAY NICARAGUA – The overturning of a truck left 16 people dead and 45 injured in the community of Ocote Tuma, in the municipality...

Apple will pay $113 million settlement for intentionally slowing down old iPhones

(BUSINESS INSIDER) Apple will pay a $113 million settlement in an investigation into the company's practice of intentionally slowing old iPhones down, a move...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.