AMCostaRica©

ARCHIVE Published Wednesday, November 14, 2018

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State of the Nation report shows economic
slowdown, unemployment and rise of poverty


By A.M. Costa Rica staff

According to the State of the Nation report presented by Pamela Jimenez on Tuesday, Costa Rica is in crisis.

The report is developed by the specialists in matters such as: equity and social integration, opportunities, economic stability and solvency, harmony with nature, strengthening of democracy and transport and mobility.

Jorge Vargas, director of the State of the Nation, says that you could summarize the situation of the country with the image of a cable almost ready to burst, as a warning signal.

"It is a partially blown cable - a warning situation - but the deterioration does not condemn us if we act with urgency," said Vargas.

According to the report, since 2017 the economy has not grown as expected, and the increase in the fiscal deficit and fears of a possible lack of liquidity in the government "are negative signals for the stability of the economy," Jimenez said.

The most alarming data of the report are:

The economic growth of 3.2 percent was lower than the average of the last 10 years.

The level of government spending was not reduced.

The Gross Domestic Product (GDP) has not grown as expected.

The level of unemployment is the highest of the last 20 years.

Exports of services grew 3.5 percent, lower than the average of the last ten years, which was 9.3 percent.

The placement of the credit was reduced from 11 percent to 3 percent due to the increase in interest rates and the weakening of the colon in relation to other currencies, mainly the dollar.

Unemployment is 10 percent, concentrated in non-professional workers, young people between 15 and 35 years old and women.

The increase in oil prices was the element that increased inflation the most, as it pushes up food prices.


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Estado de la Nación Program  courtesy photo

You could summarize the situation of the country with the image of a cable almost ready to burst,
as a warning signal.


Jimenez said that oil prices weigh most heavily on the increase in inflation “which went from 0.77 percent to 2.5 percent.” The price of oil and gasoline causes increases in the cost of transportation for individuals and for food. That cost affects all income brackets and is especially hard on lower income workers who spend much of their income on feeding their families.

In 2017, 11.4 percent of households were classified as poor, equivalent to 459,864 households and 1,695,097 people. In that same period, extreme poverty reached 5.7 percent, equivalent to 86,663 households or 306,510 people whose income was not enough to buy basic food.

Other issues in the report:

Some 50 percent of the laws approved in the period 2017-2018 did not specify or not clarify how the economic resources would be obtained for compliance.

Only 2.7 percent of the marine surface is under some protection program.

The specialists conclude that Costa Rica has the challenge of applying measures to contain public spending that is not effective and that also does not affect the poorest sectors positively.

Readers may reach the Nation State report (Spanish version) here.


Union of Chambers calls on government
to take action on economic slowdown


By A.M. Costa Rica staff

The Costa Rican Union of Chambers expressed its concern about the economic slowdown and the fiscal crisis in which Costa Rica is immersed, after the revelations of the State of the Nation.

The Chamber called on the leaders of the government to recognize the urgency of reactivating the economy, with a series of proposals and alternatives that would allow Costa Rica to have a more competitive country.

The first item for the Chamber is the passage of the Law of Strengthening Public Finances which should help contain the fiscal situation.

The Chamber also recommends the implementation and development of a real strategy for simplification of procedures and regulatory improvement in order for the nation to have an optimal and reliable business climate.

Gonzalo Delgado, president of the Chamber, stated that the data in the report on Tuesday shows us what we expected and “why it is urgent to resolve the situation in the country.”

He added that the country had been growing at a rate of 4 percent, but that “the projection of the Central Bank of Costa Rica (BCCR) tells us that, if anything, it will reach 3.2 percent, which shows us an un-optimistic path, if we do not take immediate actions."

One fact that emerges from the report and that is relevant for the Union of Chambers is the increase in the loss of employment in the last 20 years, with about 30 thousand fewer jobs.

"If we start producing in this country we will reduce the unemployment figures, because a stagnant economy does not produce income for companies, neither for people, nor for the treasury,” said Delgado.

He said that the productive sector is committed to supporting formal companies and entrepreneurship, especially that with a gender perspective. The Chamber signed the Win-Win partnership to include more women in the labor sector.”

The Chamber presented a series of topics to generate greater competitiveness and therefore reactivate the economy at the beginning of the current administration.


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A.M. Costa Rica wire services photo

The Chamber called on the leaders of the government to recognize the urgency of reactivating the economy.

Among those proposals are:

• Law to regulate Teleworking.
• Update the work days.

• Regulate the accumulated day.
• Promote dual training.
• The Law of Electric Contingency.
• Merge and unify government organizations.
• Accelerate bureaucratic procedures to make the country more efficient.
• Issue an Executive Decree that gives a guideline to the entire government to comply with the principle of efficiency, economy, and efficiency in public procurement.
• Set electricity export goals and apply the revenues to reduce the tariffs of the productive sector.

"Costa Rica must be ordered and set on safer paths in the fiscal balance,” said Delgado and added that the nation must “curb state spending, promote the digitalization of the state and its institutions in all transactions, as well as support small and medium-sized companies in this process, as well as betting on a single pension scheme and controlling salary bonuses."

The Costa Rican Union of Chambers is a non-profit organization that groups and represents the Costa Rican private business organizations belonging to the productive sectors of greater economic dynamism in the country such as the Agricultural sector, Trade, Industry, Services, and Tourism.


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Second news page

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Public Transport Chamber blames
the fees for bankruptcy of companies

By A.M. Costa Rica staff


According to the National Transportation Chamber the model for fixing bus fares is the reason why the companies that provide this service are bankrupt.

The Chamber is holding Public Services Regulatory Authority responsible. That authority is the government institution in charge of setting the prices for public transport services and those prices are responsible for the difficult situation in which the companies find themselves.

The companies are demanding that measures be taken to correct the proven errors of the current tariff model, which puts thousands of routes in the country at risk due to financial instability.

Silvia Bolaños, director of the Chamber has stated that, "We have had a long time to demonstrate that this tariff model is ruinous. Several studies have shown that it is not sustainable for any company."

Carriers called on the government to issue a balanced methodology which supports the investments that must be made to implement the necessary actions for the modernization of transportation. In particular they call on the Public Transportation Ministry since that is the organization responsible for transport in the country.

"Employers are in favor of the improvement of the transport sector, great progress has been made,” said Bolaños. She went on to say that the current Public Transport Policy does not take into account the financial realities of the companies involved. She said the Chamber asks that the regulatory authority not hinder the modernization processes “with a methodology that lacks logic.”


Bus111418.jpg 
A. M. Costa Rica archive photo
 
 
Periférica bus line announced its exit from
operations due to lack of revenue.


The Chamber warned that, just as in the case of the Periférica bus line which announced its exit from operations due to lack of revenue, there are many companies that could reach the same situation in the coming months.

The National Chamber of Transporters, is a non-profit association, is made up of the most representative companies dedicated to land transport, public transport service, commercial cargo, as well as various industrial and commercial companies that are directly related to this sector.























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Third news page
....

AmCham accuses the deputies of weakening
draft Law of Extinction of Domain

By A.M. Costa  Rica staff

The American Chamber does not agree with the changes to the project of law Domain Extinction made by the deputies.

Domain extinction is a term that is used in several countries to refer to a particular way in which the government seizes  property from a person linked to illicit activities. Those activities include: as profits generated by drug trafficking, money laundering, corruption, terrorism, or human trafficking, among others. When the person – or company – is convicted of one or more of those crimes, he must demonstrate that his property came from legitimate sources. 

The Chamber finds it is regrettable that the deputies have ruled on a bill that, according to the criteria of the Attorney General's Office, the Judicial Investigation Agency and the Costa Rican Institute on Drugs, has been weakened by the deputies who excluded parts of the original text that included crimes such as corruption, smuggling and fraud.

AmCham states that the eventual approval of this bill is essential to increase effectiveness in the fight against organized crime, illicit trade, corruption, drug trafficking, money laundering, and other similar crimes.

Elías Soley, president of AmCham, states that “excluding from the scope of this law, crimes such as corruption and illicit enrichment in the public service,” is inexcusable.

He continued that “the Deputies must have been consistent with their mission and responsibility towards a society that demands the strengthening of values on all fronts. Within that responsibility, undoubtedly, legislative actions must be aimed at decisively combating corruption, which is a scourge that threatens the governability of the country, undermines trust in institutions and affects the rights of people. Attacking corruption with tools such as those demanded by the institutions that will be the operators of the future Law of Extinction of Dominion, would be a great favor to the political and democratic system of Costa Rica, which has been damaged by acts of corruption that distract government decisions, public policies and public funds of the destination for which they should be used," said Soley.

The Chamber finds that corruption and illicit enrichment in the public service damage democracy, undermines the foundations of society by attacking supreme values such as honesty, responsibility, solidarity, among others.

AmCham Costa Rica called on the legislature to be consistent with their investiture and represent, with their decisions, the needs of the society that led them to occupy those positions of privilege.
Money111418.jpg
A.M. Costa Rica wire services photo


Domain extinction is a term that is used in several countries to refer to a particular way in which the government seizes  property from a person linked to illicit activities.


They must respond to the country and strengthen this bill that will be a fundamental tool to combat macro-criminality in all its manifestations.

"With the approval of an appropriate text, the operators of the law will have an additional instrument to beat the criminals and dissuade them from using our country as territory to execute their criminal activities, besides, it would be a step in the right direction and adapt us to better practices that allow us to be more effective in the fight against organized crime, the legitimacy of capital, corruption and any other manifestation of ‘macro crime’ that is shown in the country,” said Soley.

Chamber statistics state that developing countries currently lose between 20 and 40 billion dollars each year due to corruption.

The huge gap between what is stolen and what is recovered evidences the need to break down the barriers of recovery of assets from this scourge.

Data from the StAR Initiative (Stolen Assets Recovery) and the United Nations Office on Drugs and Crime (UNODC) estimate that only 5 trillion in assets have been recovered in the last 15 years.

Since 1973, AmCham has been promoting bilateral trade and investment between the United States and Costa Rica. It is the largest international chamber of commerce in Costa Rica, representing more than 400 companies and more than 150,000 employees of the productive sector in Costa Rica.


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Fourth news page


Cabagra Indigenous Cultural Festival 2018 begins
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By A.M. Costa Rica staff

The indigenous community of Cabagra, located in Buenos Aires of Puntarenas, announced the start of the Bribri Cabagra Cultural Festival 2018.

The Festival originated in 1986, with the support of the local educational sector, to highlight and strengthen the cultural identity of the Bribri indigenous community.

Cabagra 2018 starts on Thursday, November 15, at 9 a.m. in the village Konyo Ú, in Cabagra, and will offer dances, musical presentations, traditional medicine, craft workshops, and a fishing competition, among other samples of the Bribri culture.

According to the Indigenous Association, "the public will have the opportunity to know how our ancestors hunted using weapons as rudimentary as the bow, the arrow and the blowpipe. During the day they will be able to see some exhibitions about the ancient ability to use grind stones to crush grains such as corn and cocoa, and to know one of the most symbolic traditions of the Bribri culture: the Jalada de Piedra (is pulling a large stone). This event represents the unity and cultural loyalty of the participants with their ancestral principles."

During the Festival, visitors will also come to know the richness of the ancestral languages of the Bribri and the Cabécar, their foods, environment, ways of life, social stratification and the mythical design of the constructions of the Ú Suré, the cosmic house of the Bribris, which collects the knowledge of its ancestors related to the cosmic universe.

According to Rafael Delgado, organizer of the festival "this festival represents the existence of a living culture, of a people that persist, strengthen and empowers, transmitting to the present and future generations those ancestral legacies that identify us."


Bribri111418.jpg
Culture Ministry courtesy photo

Visitors will be able to see some exhibitions about
the ancient ability to use grind stones to crush
grains such as corn and cocoa.




Among the novelties announced for this year is the visit and intercultural coexistence of other indigenous groups in the region.

The indigenous community of Cabagra is located 15 kms northeast of Buenos Aires of Puntarenas. All activities are open to the public.

For more information about this festival, you can call the Festival organizer Rafael Delgado at 8770-8420 or email: adicabagra@gmail.com.



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Fifth news page

Government spent more than
$567,000 on 23 meter bridge

By A.M. Costa Rica staff

The new pedestrian bridge on the Bernardo Soto highway in Alajuela will be completed on December 24 said the Ministry of Public Works.

Silvia Gómez, from the National Road Council, said, "that is the expected date, as long as weather conditions allow it and taking into account that the dry season is already entering the Central Valley."

According to the Ministry, the bridge is in front of the Lanco Company in an area called El Coyol in Alajuela. It is 23 meters in length and was built at a cost of more than $567,000.

The structure will provide greater safety for pedestrians in the area, where approximately 38,000 vehicles pass daily creating serious danger for pedestrians who had to cross the highway.

Bridge construction started in August but there are still finishing details such as painting and building the ramps that allow access to the bridge to be completed.


Bridge111418.jpg
 Public Works Ministry courtesy photo

It is 23 meters in length and was built at
a cost of more than $567,000.


The structure could be expanded when the number of lanes on the road is increased. That increase is foreseen in the plan for the construction of the highway between San José and San Ramón.


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Sixth news page




Police arrest more suspects in abduction case

By A.M. Costa Rica wire services


The Judicial Investigation Organization detained 12 people on Tuesday as a second group of suspects linked to a group of kidnappers.

According to Cristian Montenegro, Investigator in Chief, these 12 detainees are the second group of people captured in relation to the case. On October 4, a group of six people, suspected as being part of the same criminal organization, was arrested.

The kidnapping took place on September 30, when a gang threatened a Chinese citizen woman with a pistol while she was entering at her house and forced into a vehicle.

They then covered her face and transferred her to an unknown location. She was held there initially, but was later transferred to three different places during four days.

The victim and her husband own a company that imports articles from China.

The police state that the kidnappers asked the family for $200,000 in exchange for the woman’s release. She was released on October 3, in Escazu but the police were in the area monitoring the delivery of the victim and arrested six people believed to be members of the gang of kidnappers.

"In that operation, six people, one woman and five men were arrested, and two cars were confiscated," said Montenegro.

The operations on Tuesday took place at the houses of the suspects. Raids were carried out in Quircot, Caballo Blanco, Paraíso and Taras, in Cartago and in Barrio Cordoba and Ajaluelita in San José. During those raids, shotguns, rifles, marijuana, and cell phones were seized.


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Security Ministry courtesy photo

One of the detainees is a man a Chinese citizen, known as Xen, who apparently had a friendly relationship with the family of the kidnapped woman.

Investigators report that "one of the detainees is a man a Chinese citizen, known as Xen, who apparently had a friendly relationship with the family of the kidnapped woman." He is suspected of knowing the possible economic situation and the businesses that the victim and her family have.

With Tuesday’s operation, the capture of 18 suspects is nearly complete. Because the investigation is in the initial phase, the police are withholding some information on the people arrested.

Police state that they still need to capture two suspects identified with the surnames Bejarano and Segura. According to the police, they already have enough information and hope to capture these two last suspects in the next few hours.



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Seventh news page


US Embassy donates 250 soccer balls to children's aid program


By A.M. Costa Rica staff

Embassy of the United States joins the foundation of the Saprissa soccer team with the donation of soccer balls to the child aid program of the Ministry of Security.

Saprissa was founded in 1935. Its majority partner is the Costa Rican investment consortium called Horizonte Morado, whose members include Juan Carlos Rojas Callan, Edgar Zurcher, and Televisora de Costa Rica channel 7, among others. The name of the team honors its founder, Ricardo Saprissa.

The Saprissa Foundation and the Embassy allied to support the program of the Ministry of Security, known as LaMejenga (the game).

This program seeks to support children who live in areas of high crime, enabling them to practice a sport and create healthy life habits.

A representative of the Ministry of Security said that the donation of 350 balls (250 from the embassy and 100 from Saprissa) will help promote sports and physical development, empower children and help them develop the good values they need for the construction of a successful life.

The La Mejenga project promotes the practice of sport as a form of prevention through the organization of football matches in communities with the highest crime rate.
The purpose of this donation is to boost the efforts made by the Ministry of Security.



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U.S. Embassy courtesy photo

U.S. Ambassador, Sharon Day donated 250 soccer balls.



The program includes local police who provide advice on the dangers and risks of drug addiction, violence and crime.

The Embassy and Saprissa confirmed that they use their resources to carry educational and empowerment activities through sports, among which is the organization of an important event for kids that will be announced in 2019.