Costa Rica II: The green goldmine

Aired November 2008

During his fourth voyage to the New World in the early 16th Century Christopher Columbus washed up on an exotic green shore. He named the land Costa Rica believing it was full of precious metals.

The Rich coasts earth never did reveal the prosperous reserves he expected but to this day it remains the jewel of Central America.

But its wealth lies not only in its history…this is the story of a country looking to the future.

A country that is using its best natural resources to put it on the tide of prosperity.

Stunning beauty, A business environment that is its environment And wonderful people are the jewels in the crown of all that Costa Rica has to offer today.

But what has put this tiny nation on the global business map?
How can its people maneuver the wave of globalization to capitalize on its situation in the heart of Central America?
How can investors be sure their needs go hand in hand with the needs of the future vision of Costa Rica?

Forget your past perceptions…US Television is proud to bring you; “Costa Rica; the Green gold mine”.

Costa Rica’s culture and history comes from the grand variety of diverse ethnicity that makes up its citizens.

The Central American country has a territory of almost 32,000 miles. This is sparsely inhabited between a population of almost 4 million.

Mountains spread from the northeast to the southeast forming a fertile central valley. The great majority of the population is concentrated here and it includes the capital, San Jose.

As the political centre, San Jose has been seen as a rock of stability In the midst of the unrest that rocked Central America during much of the past 20 years. This long tradition of permanence is recognized worldwide and today Costa Rica has a reputation as one of the most stable, prosperous, and least corrupt in Latin America.

This was acknowledged internationally in 1987 when the current

BANKING

A good example of where Costa Rica’s business environment is at today can be observed through its banking sector.

Offshore banking here is not necessarily the kind associated with tax havens and illicit financial schemes.

In fact, the Costa Rican authorities are some of the most stringent in Latin America. They cooperate with international agencies to prevent money laundering and report possible drug related transactions.

The financial and political stability over the past decades have helped to create a secure investment climate. As a result of the developed financial structure the country’s national banks are not free to sit on their laurels in finding a solution for local and international clients alike.

Banco de Costa Rica for example is promoting investment for all types of growth; from development and loan programs to support and assistance for small and medium businesses.

TRADE & INDUSTRY

Costa Rica's central location provides easy access to American markets. It has the same time zone as the central part of the United States and direct ocean access to Europe and Asia.

During the last 20 years, Costa Rica’s trade policy has shifted from being highly protected. Today it is all about promoting openness and active trade negotiations internationally.

As a showcase for all of this transition the government is in the final stages of brining in a controversial free trade agreement with the United States.

Signed in 2005 by U.S. President George Bush the Central American Free Trade Agreement, known as CAFTA is designed to eliminate trade, investment and business barriers.

One of the goals of CAFTA is to increase the financial viability of Costa Rica on the international market. Business leaders are working together to make sure CAFTA becomes a fast reality. Successful implementation is critical to the broader U.S. policy goals for the Americas to strengthen democratic governance, expand economic opportunity, and invest.

There has been a dramatic drive towards diversification in the critical mass of exports available from Costa Rica.

The establishment of new trade regimes such as the Free Trade Zones has served to attract a new wave of transnational companies, utilizing the country as an export platform of goods and services to the world.

This is also reflected in the structure of exports. After being comprised of primary and textile products, they now include an important portion of products with a high technological component.

The Costa Rican workforce is considered perhaps the most important attraction for foreign investors. The population is highly literate and well educated as the government has long placed a high priority on public education. As a reflection of these efforts, Costa Rica now has one of the highest Human Development Indexes among developing nations.

The government now hopes to bring foreign investment, technology, and management into the telecommunications and electrical power sectors, which are currently monopolies of the state. However, political opposition to opening these sectors to private participation has stalled the government's efforts.

On of the more high profile clauses of the passing of CAFTA is an obligatory opening of the telecommunications sector.

Ticos (D), as the people of Costa Rica are known, are famous for being hospitable. But they also seem to be well aware that their country is a special place, and while they are making every effort to accommodate their visitors, sustainability and environmental concerns are key to every future step.

TELECOM

The government now hopes to bring foreign investment, technology, and management into the telecommunications and electrical power sectors, which are currently monopolies of the state. However, political opposition to opening these sectors to private participation has stalled the government's efforts.

On of the more high profile clauses of the passing of CAFTA is an obligatory opening of the telecommunications sector.

Ticos (D), as the people of Costa Rica are known, are famous for being hospitable. But they also seem to be well aware that their country is a special place, and while they are making every effort to accommodate their visitors, sustainability and environmental concerns are key to every future step.

ENERGY

As a country rich with renewable energy Costa Rica in fact gets about 99% of its electrical energy from clean sources. Some of Costa Rica’s energy sources include geothermal energy, solar and wind energy.

However, the largest source of energy is hydroelectricity — its hydroelectric dams provide more than 82% of the country’s electricity. Ambitiously now the government are aiming for Costa Rica to be the first country to become carbon neutral.

What is about to happen in the telecom and energy sectors are just some examples of how the infrastructure in Costa Rica has been and is being seriously transformed.

There is also a growing level of infrastructure to accommodate the demands of every tourist, be it for leisure or business.

Hear the rumbling of heavy lorries? The creek of a crane? The buzz of a saw? That is the sound of paradise in the making. Since the 1970s Costa Rica has become a hugely popular destination for holiday homes. The stable government married with a reasonable cost of living, along with the laws outlining that foreigners enjoy the same rights as Costa Rican citizens make it the perfect draw.

REAL ESTATE

The boom sector in the country's housing industry are homes in complexes with varying financing and ownership options somewhere between outright ownership, time shares and condominiums. They are usually large beachside, that come with golf courses, swimming pools and restaurants. One of the most popular second home areas is without doubt, the Jaco (haco) region.