Events

February 22, 2012, The CCA and the Embassy of the Republic of Costa Rica presented a luncheon with Dr. Luis Liberman, Vice President of the Republic of Costa Rica:  “Costa Rica’s Economic and Democratic Stability”

             In a February 22^nd speech, Luis Liberman, vice-president of the Republic of Costa Rica, explained to CCA members what sets his country apart from its neighbours. The topic wasCosta Rica’s economic and political stability. The setting was the boardroom of Heenan Blaikie LLP.

            Often called the “Switzerland of Latin America” owing to its strong democratic roots, pioneering environmental protection laws, lack of an army and reputation as a peaceful and safe destination,Costa Ricais best known to many Canadians as a place for family-friendly, ecologically-rewarding vacations.

But what they overlook is that it is also a dynamic and welcoming place to do business. Aside from growing agricultural staples such as coffee, bananas and sugar,Costa Ricahas quietly transformed its economy into a mini-powerhouse producing a vast array of high-tech products. They now account for about 40 per cent of its total exports. “That is a higher percentage than eitherChinaorIreland,” says Liberman.

He further notes that Hewlett-Packard employs almost 9,000 employees there and chipmaker Intel has about 3,000. In both cases,Costa   Ricamoved up the value chain from assembling, to manufacturing and now designing such products.

In addition, it also produces aeronautical software as well as sophisticated medical devices such as heart valves and stents. As well, Procter & Gamble employs about 2,500 people to look after its global, back-office services including accounting, human resources and reviewing manufacturing operations.

Fuelling such an economic shift is the country’s education system. In 1869Costa Ricawas among the first countries in the world to make education free and accessible. To compete in today’s knowledge economy, Liberman states that the government plans to increase education spending to 8 per cent from 7 per cent of GDP.

In particular, he wants to double the number of master’s and doctoral graduates within five years. The government will also boost English language instruction so that all high school graduates will be bilingual –Spanish and English — by 2017.

“Foreign direct investment is the foundation of our future economic development,” he says. “We need to create our own economic opportunities for our people by becoming a manufacturing and services hub.”

Increasingly, that path to future prosperity requires greater access to foreign markets through bilateral free trade agreements. High on the list is the modernization of the 2001 Canada-Costa Rica Free Trade Agreement. Currently in its second round of negotiations, the new treaty is expected to reduce barriers, increase trade, expand air links and encourage investment flows. Liberman believes that talks will wrap up by year’s end.

No description of life inCosta Ricacan be complete without invoking its national greeting, “pura vida” — Spanish for “pure life”. Says Lieberman, “It is a sign of optimism whose meaning is closer to ‘full of life’”. Ken Mark