Archive for February, 2010

Costa Rica - A Developed Country?

Friday, February 26th, 2010

I read and interesting article in the Tico Times that posed this question.  I have always wondered who it is exactly that determines whether a country deserves the coveted status of “developed.”  The article answered that question for me…it is based on determinations by two organizations.  First, there is the 30-member Organization for Economic Co-operation and Development (OECD).  Then there is the United Nations “Human Development Index.”  Each have their own criteria for determining if a country makes the cut.  The OECD bases the issue in large part on gross national income and amount of foreign aid received.  Basically, whether a country can stand on its own two feet without help from other nations.  Based on this analysis a country is placed in one of five categories, the top being Developed and the bottom being Least Developed.  Costa Rica at present is in the Upper Middle Income category.  You cannot actually be a member of the OECD until you reach the top category and have the capacity to actually help other countries do the same.  The HDI of the United Nations lists Costa Rica as the 54th most developed country in the world, with a index rating of 0.854.  To be developed a country must reach a level above 0.90, with 1 being the highest possible score on the scale.  Chile is the most developed in Latin America on the HDI scale and is considered the 44th most developed country.  Norway is at the top of the world list with a rating of 0.971.  The HDI scale is not as economically weighted and considers such things as life expectancy and education.  The Tico Times article went on to note that despite Costa Rica’s rapidly rising development status, there are many contrasts that would counter the trend.  Things like poor infrastructure, expending gap between rich and poor, and others.  Roman Macaya, a businessman who unsuccessfully sought nomination of the Citizen Action Party (the part of Otton Solis) for Presidency, stated that there are two Costa Ricas, one for the rich and affluent and another for the poor.  In my opinion that is a bit overstated.  I have spend considerable time in Nicaragua, for instance, and I would say Mr. Macaya’s statements would be true if he were talking about that country.  However, here it is the middle class that experts the most power, both politically and economically.  So, while there are problems with crime and poverty, Costa Rica is definitely making steady progress.  Laura Chinchilla made a campaign pledge that Costa Rica would become Latin America’s first true developed country (Chile might argue that point with her) and I believe if she can continue the good progress of her predecessor and mentor, Oscar Arias, perhaps the country has a shot.

Costa Rica Reaches for Retirees

Monday, February 22nd, 2010

Important governmental arms of Costa Rican promotion like the ICT (Ministry of Tourism) and the Ministerio de Comercio Exterior have joined to make attempts at attracting more retirees, or pensionados, to Costa Rica in the national interest.  All that remains necessary is for President Arias to sign on to the idea and it becomes part of the governmental plan of promotion.  In which case, important things could happen that could really have an impact, like giving tax breaks on the importation of autos and household furnishings and possible even income taxes.   As to the specifics of the plan, that is still to be studied, but Costa Rica has recognized that “baby boomers” in places like, Texas, Florida and Arizona may take a more than serious look at Costa Rica as a potential permanent, or temporary, retirement home.  Government prognosticators have estimated that in the next few years the number of retirees could grow to 10,000, generating some $340 million in income annually and creating the need for 40,000 new jobs.  The idea is to have retiree-focused communities in places like San Pedro de Poas, where a new development dedicated to retirees is already in operation (see www.retirementhomecr.com).  These places would focus on the specific needs of those who are getting up in the years (this is a little offensive, since I am technically a “baby boomer, but nowhere near ready for a “retirement home”).  Private hospitals like Clinica Biblica and Catolica want in on the act and propose that there be a certification for those specialized to care for the needs of retirement age persons (clarified….above 65 years of age).   This all sounds like an idea whose time has come.  I have always believed Costa Rica could be a retirement haven and with the rapidly improving infrastructure it begins to look all the more appealing.  I just hope everyone in their rush to cash in on the growing trend resolve to keep efforts 100% sustainable, remembering always that it is Costa Rica’s great natural bounty that draws so many of all ages, shapes and sizes to its borders each year. 

Link to Article in La Nación

Carretera Caldera - My Ten Cents

Tuesday, February 16th, 2010

Well now that I have utilized the new and greatly anticipated “carretera Caldera” that extends from Escazu to Esparza (where it connects with the Pan American Highway), I do have an opinion on the matter.  I have heard the criticisms about the fact that the road is only two lanes in some areas, that there has been some environmental damage and that residents in communities along the highway have been negatively affected in various ways.  But I guess with a project this big, there is always going to be some controversy, i.e., someone’s ox will get gored.  I am sure that some of the criticism is valid and deserved.  However, on the whole, my opinion is that this highway is the best thing that has happened in this country for a long time, at least as long as I have been here, even better than passage of the T.L.C., whose anticipated positive effects may take as long to be realized as the highway did to construct.  In short, the new highway cuts drive time by about an hour to points along the entire Pacific Coast.  I made a trip to Monteverde using the new highway to get from San Jose to Esparza and then the Pan American to the point where you exit to go up the mountain in a little over TWO HOURS!  That is nothing short of amazing.  Moreover, I used far less gas than I would have before and the trip was far less stressful, both to my car and to my nervous system.  This highway is a godsend for people who want to travel within Costa Rica and that includes just about everyone.  I anticipate it will be good for foreign investment and real estate values (I read recently that Atenas is already gearing up for it) and it will be good for tourism.  One of the most oft-heard complaints from tourists is the difficulty in getting from Point A to Point B in Costa Rica.  Well, this new highway, while not perfect, is a major stride towards fixing that issue.  The times I have used it, which have been both during the week and on the weekend, my average speed was around 80 kph, or more, versus the less than 50 average one would experience crossing the mountains either via San Ramon or the dreaded (though picturesque) Monte de Aguacate route.  The new highway should also relieve some of the congestion from those old routes as the many trailers will opt to take the new highway..and they were the principal source of the problem on those more mountainous routes.  I was highly skeptical of all the talk over the last decade of how great this new highway would be, primarily for Jaco.  However, now I am convinced and the benefits will extend far greater than Jaco, which as of late has gone from being Costa Rica’s most popular beach town to Cost Rica’s biggest eyesore.  My hats off to the Arias administration for getting the job done.  Thirty-two years was a long time in the making, but better late than never.  Okay Laura, let’s see some more of that over the next four years!  But start with a pocket full of ”monedas” for the many tolls on the road (5 in all) and gas up, because you won’t see any gas stations along this route, probably for a while.