Today's Stories: Comptroller to be Investigated New Vehicle Tax Stalled Military Spending: "Grotesque Irony" for Developing Countries Wear A Vanilla Latte News Briefs

On July 1, private sector employees will receive a 6.27% increase in pay.

The situation came to light when leader of the Bloque Patriótico, Humberto Arce, made public that the new Comptroller had signed his brother's name, that of Otton Solís, on a legal document and then notarized it. Alex Solís has never denied having signed the document his brother's name.

Gerardo González, president of the "Asamblea Legislativa" announced yesterday that there finally was an agreement among the deputies to create a commission to investigate the case.

The commission will be required to determine if the the new Comptroller is guilty of wrongdoing and if so, it will have the to recommend his removal from office.

Arce, said that the commission will document the facts and establish what is behind the whole situation. He also said he was happy that his fellow deputies were in agreement to establish the commission and that country can now be at ease knowing that we are acting responsibly.

Arce also commented that he will "personally" follow the investigation closely so that there is no derailment in the process.

 

New Tax on Vehicles Stalled
The government has stopped a plan to reduce taxes on car imports. It had been announced that the government would introduce a new tax plan for the importation of vehicles that would see a ban on the importation of vehicles older than eight years and no tax on electric and propane powered vehicles.

The new tax was to have been introduced on June 5, however, the government decided to put a temporary stop on it's plan. No details were announced as to why, according to Environment and Energy Minister, Carlos Manuel Rodríguez.

According to statistics prepared by the vehicle inspection firm Riteve SyC, four out of ten vehicles are high contaminants. The study shows that 60% of the vehicles in Costa Rica are older than 12 years and of the 30.000 used vehicles imported into country each year the average age of the vehicles is 10 years old. About 22.000 new vehicles are imported each year.

Costa Rica has about 730.000 vehicles in circulation.

There has been much talk over the years of reducing import tax on vehicles that offer low contamination, from the Riteve report in 2003, way back to the José Figueres Olsen administration who announced in March of 1998 a tax proposal similar to the one the current government is studying.

Jorge Chaves, Minister of Transport, says that his ministry has not completed it's study of the tax proposal. Members of the auto industry also say that the government will not introduce any tax plan without consulting them first and reach some consensus.

In 2002 the importation of vehicles gave government coffers of ¢64.092 Million colones, while in 2003 the amount was ¢62.580 Million Colones. In the first four months of 2004,¢23.727 Million Colones in taxes were collected on vehicle imports.

Military Spending: "Grotesque Irony" for Developing Countries
World military spending has returned to Cold War levels: it is estimated that total military spending in 2003 was over US$ 1 trillion (one thousand billion).

Whilst the US accounts for almost half of that spending, a new research briefing from id21* 1examines the impact of high military spending for poor developing countries.

Whereas rich developed countries spend the highest dollar figures on military equipment and armed forces, some poorer, developing countries spend proportionately more of their national wealth.

Estimates suggest that the US spent in the region of 5% to 6% of its gross domestic product (GDP) on the military in 2003. Yet in 2001 (the most recent year for which data is available) five Middle Eastern countries spent more: Israel (8%) Jordan (9%) Kuwait (9%) Saudi Arabia (12%) and Oman (12%).

Burundi and Ethiopia also spent more - 8% and 6.2% respectively.

In his contribution to the research briefing, Nobel Peace Laureate and former President of Costa Rica Oscar Arias comments that "such budgetary priorities underlie a grotesque irony: many of the poorest states hoard supplies of tanks and weapons to 'defend' citizens who are far more threatened by malnutrition and preventable diseases."

Referring to the experience of Costa Rica,  Arias adds that "small and poor nations, which have the greatest stake in curbing the onslaught of militarism, must recognize that when states can resist the pressure to pour their treasure into armaments, they are able to offer remarkable dividends to their people".

Countries need to explore the balance of their expenditures to prevent or control the true threats to the security of their citizens. Countries exporting arms also need to assess their own economics needs against their commitments to support sustainable development.

For most countries, such an analysis will reveal gross imbalances - too much spending on the military and too little on other measures for the prevention and control of threats to human security."

*id21 is a research reporting service that aims to be part of the process of putting international development policy into practice.
 

Wear A Vanilla Latte
BY JACKIE WHITE

You can't get enough coffee. You love the stuff. Starbucks is your second home. And you like to stroll into important meetings toting a giant-size cup.

Here now is another way to indulge. Say hello to Java Jewels. They are necklaces and bracelets made of coffee beans.

Greg Anderson of Santa Monica, Calif., says the idea started when his brother James took a trip to Costa Rica and came upon a man on the side of a road selling strings of coffee beans.

Back home, working with another brother, Steve, who is in the coffee-roasting business, he found chemicals that would seal and strengthen the beans. The three brothers then tested them on surfers to be sure they would not bleed on clothes. They set up production and formed a business (www.javajewels.com).

The idea looks like a hit. They easily sold out of a few hundred at a coffee trade show in Seattle. "We had people lined up, six at a time, at our stand," Anderson says.

And when Jim Anderson visited the jazz festival in New Orleans earlier this spring, he naturally called on one of the more famous coffeehouses, Cafe du Monde. Now Mardi Gras beans are in the works in colors of purple, gold and green.

"Coffee is hot, and Java Jewels are a way people can identify themselves as part of this culture," says Greg Anderson, who is in the public relations business.

The beans are roasted to specific temperatures, and the process creates natural color variations. They come with such names as Raspberry Mocha, French Press and Essence of Espresso. Vanilla Latte was a hit when Greg Anderson test-marketed the beads at Venice Beach, Calif. But do the beans carry that enticing coffee aroma?

"Very subtle," he says.

News Briefs

• Downtown storekeepers have a plan in place in case of disturbances resulting from Sunday's game between Costa Rica and Cuba. In the past, there has been ransacking and looting in some downtown stores following an important game such as this Sunday. In addition, it is father's day and many shopkeepers prefer to lose the day's sales than to possible damage from uncontrolled crowds, as it has happened in the past.
   
• The Consejo Nacional de Salarios set the public sector pay increase to 6.27%. The Ministry of Labour is in agreement with the new increase, while some union leaders last week were calling for a raise of 9.14%.
   
• The Instituto Nacional de Seguros, INS, reports a drop in vehicle accidents. The report says that there were 1.664 less reported traffic accidents in 2003 over that of the year 2002. Statistics show that in the year 2002 there were 16.887 traffic accidents reporte, while in 2003 there were only 15.223. According to the experts at the INS, though no specific reason can be found, they do say that responsible driving, the wearing of seatbelts and changes in attitudes of pedestrians are the principal causes for the reduction in accidents.