Costa Rica- will they finally get a grip on development?

I disagree with your assessment of the Gringo Boom-

Development, at all levels, from roads, infrastructure, cafes, business, hotels, private homes all contributes to the employment ranks, and as you know, the Tico economy has had tremendous growth is all sectors of the economy, that Ticos dont even want the jobs anymore of working in the plantation fields picking coffee beans and grapefruit, that has now been handed to the unemployed Nicaraguans, as some 300,000 migrate seasonally for work in Costa Rica, as the Ticos enjoy better jobs and better futures.

So they should be developing more then, is that what you're saying?

The Campesino Ticos USED to be able to live on what they used to make picking beans and fruit. The reason the Nicaraguans are moving in, and the Ticos are moving out is because they can't afford to live on those jobs anymore, nor can they afford to live in the area period. The result??? They move to the cities where they get low paying jobs working in a factory, or a fast-food restaurant for example, living in Barrio slums, wow, what a great improvement. The nicaraguans on the other hand, live in shacks with no running water and dirt floors just so they can have the privilege of earning about $7 a day. Yeah, that's a good thing too.

And yes, there has been growth, but NOT to the benefit of the average Tico. That's the problem. Ask ANY working-class Tico if they're better off as the result of the gringo boom, Tim. I have.

If that is a bad thing, I hate to see your idea of creating jobs and developing a country from the governments revenue like these leftist leaning social losers Fidel Castro, Hugo Chavez and friends, as is the case in most of the CA economies, lines or no access at all to basics like butter, milk and bread, stagnant and misguided sums up the rest, as Costa Rica has diversified, opened trading markets, and expanded its economy, provided more social services, improved education, and continues to have its priorities for the most part, well guided and healthy in the future, where is say nicaragua, there is no future, not a ounce. Poverty rules. Greed is the government leaders motto, and power is in the hands of a few, very wealthy people.

You seem to think I'm a leftist. You would be wrong. To try to use Cuba and Venezuela as proof that Costa Rica is better is simply ridiculous Tim. These systems are flawed for a variety of reasons, and they have nothing to do with gringo invasion. CR's system used to be the best in Latin America, but they lost that crown after the gringo boom took hold. Why? Ticos can no longer even own property in most places in their country. In fact, development for Ticos is limited to some developments in crappy barrios where they build shoebox-sized housing and try to get $30-40,000 for them. A fortune for your average Tico. Until at the very least home ownership becomes a real possibility again for an average working class Tico, they will be severely suppressed economically, no matter what is happening.

Some facts-

Costa Rica

Average per capita income $12,000

Let's see your average Tico earning $170 a month (far from $12000, which includes wages and salaries from professionals that have a huge disparity with the working class payscale) be able to afford a house, ANY house in most populated areas of Costa Rica. That would be a neat trick. If the gringo boom didn't have the effect it does on prices, Most Ticos would be able to at least own their own homes.

It has one of the highest indexes for (developing country) Life Expectancy. 64th in the world
It is one the highest welfare states, ranking with Scandanavian countries on revenue spent providing services to it people (a good thing)

Yes, it's the least the government can do. And it's funny how gringos try to get on the welfare bandwagon when they move there.

Its is one fastest growing economies Latin America, a GDP of $57 Billion

There was never any argument that Costa Rica was one of the fastest growing economies.

Exports have expanded to APEC, Cafta and regionally, with Russia, China and USA its biggest partners, growing over 10% a year.

Exports will have to expand FAR higher than 10% a year for Costa Rica to benefit from its trade agreements. Most economists don't think that Costa Rica has the capacity for agricultural exports to expand much higher (thanks to most land-use being dedicated to almost nothing else but the gringo boom), so they HAVE to seriously ratchet up manufacturing. They will probably pull this part off, except to say that manufacturing jobs, particularly unskilled and textile manufacturing (read: sweatshops) will make for a large part of those new jobs, and wages will continue to stagnate. What's more, once there is a large number of those jobs on the market, they'll simply bus in Nicaraguans from across the border to FURTHER keep wages low. You seem to think that's a good thing for some reason for the average working-class Tico.

Unemployment 8%

This is the "official" number. The REAL unemployment rate does not take into account underemployed day-laborers (who work for cash, about $4 a day), and unregistered workers who are not in the system. I can assure that the REAL number is much higher. Probably over 10-12%. In any case, 8% is a rather high unemployment rate for a population of 4.2 million and nothing to be proud of.

With all this growth, it natural it has a Inflation rate of 10%, amongst the highest in Latin America.

Also, the "official" number. One the working-class Ticos' biggest complaints is rapidly rising prices. Prices rise, but wages and salaries don't. One of the reasons that crime is as high as it is (particularly thefts) is because Ticos have come to rationalize that if they can't buy it, they might as well steal it. It's a sad state of affairs when crime and deceit become a normal part of economic survival.

In Contrast-

The socialist state of Nicaragua-

Average per capita income $3000
Its Life expectancy index ranks 174 in the world
It has no welfare
Its econmy has decreased in recent years, not increased to $15 Billion
Exports and alliances have failed, foreign investment has all but ceased.
Inflation rate is crippling most the population for just the staples, rice, gasoline and electricity (spotty)
Unemployment 65% (ouch)

There is NO dispute that Nicaragua is a poor country, Tim. To do a comparison and contrast between Nicaragua's and Costa Rica's systems is both silly and useless. Suffice it to say that if a "gringo boom" with Costa Rica's scale happened in Nicaragua, there would probably be nothing but a civil war.

That said, Nicaragua has some opportunity to turn things around and get on the bandwagon. If their government makes some wise choices in the next 10 years, particularly in building their tourism infrastructure, manufacturing sector, and other sectors, they can become a major economic engine in CA. Not to mention that there is a proposed plan to construct a canal from Caribe to pacific that would be a huge boon to Nicaragua's economy (and unlike the Panama Canal, there would be no locks, like the Suez). It looks like Spain may pay the tab for the construction costs. So despite what you may be seeing now, there are several economic opportunities for Nicaragua.

So Tony, what country would you identify as benefiting from outside investment, development and expanding the economy creating jobs, spending more revenue on social services for its people, and eliminating poverty over 75% in a decade.

Well, Costa Rica hasn't eliminated any poverty Tim. Get that idea right out of your head. They may have given it a dress and a wig, but it's still there. Costa Rica has always been a welfare-state, even before the gringo boom started. One of the reasons that they were able to afford to be a welfare state was because they didn't have a military, which meant that they could fund other social programs rather than run an army and navy, something some other CA countries either didn't have the option to do, or didn't figure out.

As for spending on social services. Any Tico will tell you that they are getting LESS benefits from the Costa Rican government than before the boom. Again, this even surprised me until I heard it for about the 15th time. Health care is harder to get, bureaucracy has increased, education has suffered (hence the drop in literacy rate), state-subsidized utility costs have shot up, we can go on and on.

And here's something I should ask you:

IF the gringo boom as you say, is such a good thing. Why should there be a stop to development??? Why not build more and more??? Screw the natural resources depletions and environmental impact studies. It's all a good thing in the end right? Surely if the gringo boom is a good thing, there is room for MORE of it. Especially if the Ticos are benefiting so incredibly from it as you say. So yeah, let's start an initiative to build MORE condos, MORE cheesy subdivisions, MORE gated communities... More is not enough apparently.

Edited by: theandiamo

Tony, I am not inferring you are a Leftist all-

But Typical economic policy in Latin America is short sighted and underperforming overall (Brazil not included). Unemployment at 8% in a developing country is not bad, with just 300,000 people still out of jobs, thats not good nor bad, its a decent acceptable average, considering the diversity of the economy is presenting more opportunity in many sectors, but skill or a education is required, the old nemesis of education again denies the poverty stricken to be the lowest paid in the employment ranks.

Tony, you cant have expansion of the economy, and not have a negative effect in other ways, its impossible to balance that, all the economic talking heads have no magic formula. Costa Rica strived to grow its natural resources as a export, and invented Eco Tourism, and with that, came a huge flood of foreigners, that loved all the attributes of the countries positives, and then they and the government expanded them, exploited them in some cases, but nothing is perfect. Costa Rica has grown and morphed to almost a another entire country compared to what it was in 1990. Though we shun the poor planning and lack of policy for responsible development, in the end, its pretty darn nice compared to most developing countries, yea it its growth plans could have been better planned and executed, but you can say that for the USA, Thailand and China, all Boom towns the world over...the Mexican resorts are astonishing, and many of the caribe islands, but one thing unique about CR, is it has more private residences than new mega resorts planned, as people are flocking to CR to live and retire. Is that not a positive testament to the political and economic climate in CR?

With a GDP of $56 Billion, I think CR has managed to keep a even course and not derail its plans to be not just a destination for Eco Travelers, but also a great option for industry, and expats retiring there, with their savings.

The one thing lacking in CR is the abysmal justice system, hardly effective and very inefficient. But, its alot better than others.

Hopefully CR can get a handle on development, and its more responsible in the future, but then again, its Latin America, where it goes to its own beat, as you well know, we admire it at times, and we have to shake your head at, many times.

I've had enough. I've decided I'm going to move someplace where there is no wretched underclass, no poverty, no growing pains of a developing country, no inequality, no foreign investment or opportunism and very little likelihood of disturbing the status quo.

So far I've come up with Monaco and the Vatican City. Anybody know about residency permits?

In 1 I recorded what I have been told by Ticos. Arguing with what Ticos believe is pointless. What they believe is what they believe.
The same is true of Panama. Panamanians believe that the US invaded Panama as a warning. Panamanians believe that Noriega was a creation of the US - that arresting him would have been easy, that 5000 Panamanian civilians were killed (mini version of Iraq). Sitting on a bench with two elderly school teachers in Casco Viejo and listening to their account of the invasion was the most moving moment of my circumnavigation of the Americas. I listened and recorded their beliefs, to me more interesting that jungle trekking. But then I'm in my 70s and lazy.
Anyone interested can find the incident on the southerly leg of my ride at www.simongandolfi.com

I know Prince Albert! I will give him a call after he gets off the yacht, he had a cocktail party and it is in full swing at midnight, I think he entertaining some Russian SuperModels.

But look at Panama today. I think the strategic Interest of the Panama canal, built and owned by the US until a few years ago, is a worthy basis for US Actions at the time, no? Where would Panama be without the canal? And where would Panama be with Noriega. Not to change the subject. One could argue my comparison of Costa Rica to Nicaragua is unfair, as the Contras and the US Military set the country into a tailspin indeed in 1980, then it had a devastating Hurricane in 1990, that it still has not recovered from.
But Vietnam was far worse off on all fronts, from a internal war to being beat to a pulp by the US, and now look at them, and look at Nicaragua....hmmmm

Tony, I am not inferring you are a Leftist all-

Ok... good (taking off Che' t-shirt and red beret)

But Typical economic policy in Latin America is short sighted and underperforming overall (Brazil not included). Unemployment at 8% in a developing country is not bad, with just 300,000 people still out of jobs, thats not good nor bad, its a decent acceptable average, considering the diversity of the economy is presenting more opportunity in many sectors, but skill or a education is required, the old nemesis of education again denies the poverty stricken to be the lowest paid in the employment ranks.

Come on, 340,000 unemployed in a country of 4.2 million is not a good figure, no matter how you slice it. Especially when wages are as low as they are. And again, it's only the "official" number. The real number can only be higher.

Tony, you cant have expansion of the economy, and not have a negative effect in other ways, its impossible to balance that, all the economic talking heads have no magic formula. Costa Rica strived to grow its natural resources as a export, and invented Eco Tourism, and with that, came a huge flood of foreigners, that loved all the attributes of the countries positives, and then they and the government expanded them, exploited them in some cases, but nothing is perfect.

So screw the poor and working class then? Let the negative effect be all on them and no one else? The Eco tourism was a HUGE boon to the country, and had very little drawbacks. The problem? Those eco-tourists started STAYING and buying properties that were being built and marketed JUST for them. This threw things out of balance, to the extent that eco-tourism now makes up for a very small part of CR's tourism industry. The IDEA was to have eco-tours that preserved the environment and delicate nature (this includes the coasts and shorelines!) AND have tourism. Well, I think we can both agree that whole mentality has been ditched for the big bucks.

Costa Rica has grown and morphed to almost a another entire country compared to what it was in 1990. Though we shun the poor planning and lack of policy for responsible development, in the end, its pretty darn nice compared to most developing countries, yea it its growth plans could have been better planned and executed, but you can say that for the USA, Thailand and China, all Boom towns the world over...the Mexican resorts are astonishing, and many of the caribe islands, but one thing unique about CR, is it has more private residences than new mega resorts planned, as people are flocking to CR to live and retire. Is that not a positive testament to the political and economic climate in CR?

It would be if all this economic growth wasn't screwing over the majority of their working class citizens. How can it be good for a country if all that growth and progess doesn't help the least of their citizens???

With a GDP of $56 Billion, I think CR has managed to keep a even course and not derail its plans to be not just a destination for Eco Travelers, but also a great option for industry, and expats retiring there, with their savings.

They'll be spending their savings on cheap labor, and goods and services whose prices will continue to rise beyond the grasp of the working-class. I still fail to see how that's a good thing for the local folks.

The one thing lacking in CR is the abysmal justice system, hardly effective and very inefficient. But, its alot better than others.

It is???? Whose? The only country that has a semblance of a working justice system is Panama. Costa Rica's system is right there in the cesspool along with pretty much every other Central American country.

Hopefully CR can get a handle on development, and its more responsible in the future, but then again, its Latin America, where it goes to its own beat, as you well know, we admire it at times, and we have to shake your head at, many times.

But again, why should it get a handle on development? If it's nothing but good for Costa Rica in the long run, they should just let it run unbridled, no? Let the free markets and industries dictate what happens. Why not?

I've had enough. I've decided I'm going to move someplace where there is no wretched underclass, no poverty, no growing pains of a developing country, no inequality, no foreign investment or opportunism and very little likelihood of disturbing the status quo.

So far I've come up with Monaco and the Vatican City. Anybody know about residency permits?

Antarctica is always a good option... :P

In 1 I recorded what I have been told by Ticos. Arguing with what Ticos believe is pointless. What they believe is what they believe.

That's the point I try to make, in recent years, I haven't had ONE Tico tell me that they're happy with the direction their country is going. That's a HUGE contrast to what they used to tell me 15-20 years ago.

The same is true of Panama. Panamanians believe that the US invaded Panama as a warning. Panamanians believe that Noriega was a creation of the US - that arresting him would have been easy, that 5000 Panamanian civilians were killed (mini version of Iraq). Sitting on a bench with two elderly school teachers in Casco Viejo and listening to their account of the invasion was the most moving moment of my circumnavigation of the Americas. I listened and recorded their beliefs, to me more interesting that jungle trekking. But then I'm in my 70s and lazy.

The resentment against the US ran deep even before the invasion. The US essentially split Panama in half by maintaining the Canal Zone that allowed only US citizens and authorized persons inside. Panamanians had to get PERMISSION to cross the Canal Zone.

The Noriega episode was definitely one of the US' own doing. Noriega was DEFINITELY a product of US policy. No disputes there. The invasion was definitely unwarranted, but when you ask most Panamanians who were alive during that time, they'll tell you that they're glad that Noriega is gone. I too have heard accounts from Panamanians about the invasion, including one from a US Army Major who commanded a special forces company during the invasion.

All that said, the Panamanians stand as a testament to true independence. They refuse to go along with US party lines regarding banking, tax havens, and other sectors. Doesn't mean they are friendly to money-launderers, they just make their own rules. Panama is the financial center of Central America, and rapidly for South America as well. Yes, the US-built canal is a financial boon to the country, no doubt about it. But wages are protected and increasing steadily, and most Panamanians do not complain about their system.

Anyone interested can find the incident on the southerly leg of my ride at www.simongandolfi.com</i>

Just took a look at your site Simon! GREAT stuff! I'll be adding you to my blogroll :)

Ah, but its melting. Go back in 20 years and its just not going to be the same...