Ideally, the government should cut the red tape (which Solís is at least attempting to do with his one-stop-shopping government storefront for businesses–although we’ll have to wait and see how effective this is).

Besides plunder, which has been used quite successfully historically, the absolute only way for a country to develop economically is to make things that people in other countries want to buy. This Costa Rica does not do. Even its machetes are made elsewhere.

Agriculture exports (coffee, bananas, and pineapples) won’t do it, because Ticos then have to import finished goods, and will take a loss. Tourism won’t do it, since all the tourists are doing is buying land and low-level services. The Ticos never get ahead this way. And FDI won’t do it, since the only reason the multinationals arrive is the low-paid workforce, and then they take the profits home.

Costa Rica needs to make something that it can sell, and something different than potato chips. Too many others already make these. It needs to make something new, something it can patent. Strangely, the population is reasonably well educated and the universities are the best in Central America outside of Mexico, yet nobody thinks about doing anything besides working an office job in a foreign-owned firm or opening another hotel.

We would have to ask the management (and believe its answer) but generally the trade-off is between labor costs and mechanization that replaces labor. Since there’s no way Jacks can run a labor-intensive manufacturing operation in the US more cheaply than it can in CR, we have to assume that it is planning to invest in more mechanization there.

Also, companies like to be close to their customers, saves costs. Odds are Jacks sees a market niche to exploit in the US.

Of course, the electricity rates to run the machinery are surely cheaper in Florida. The US fights lots of wars to ensure that.

Sorry, but it’s ridiculous to argue that all else being equal it’s cheaper to manufacture in the US.

Indirectly, I see from disgusted that the solution is for CR to lower its wage rates to those in Vietnam. Now this is a splendid idea. Why pay workers $100 a week when the global labor market can only justify $50 a week? This is what we want: Lower paid Ticos (taxed more to subsidize industries’ lower electricity rates) in the name of economic development!

Of course, there are the usual complaints about government waste (including, strangely, the waste of the president’s trips to drum up foreign investments). So Jacks is moving its operations to lower-wage Nicaragua and Intel to lower-wage Vietnam because Solís is spending too much on airfare?

Oh, and while he comes on strong, Richard Schlinder seems to end up arguing that CR ought to compete with Africa to attract the glorious expats who pump their SS checks into the bars and restaurants. Honestly, is this really the best way for CR to proceed?

Then there are the rumored bribes (evidence?) that small businesses supposedly have to pay to government officials. Hasn’t anyone noticed (or do you just not believe it) that the cornerstone of the Solís administration is to nix corruption?

Come on folks. If CR has to compete with Nicaragua, Vietnam, and Africa–plus subsidize electricity rates–it ain’t going to win anything worth winning. I don’t think you’re diagnosing the problems correctly, or therefore offering any kind of solution.

the conditions in costa rica is no longer favorable for invesments

they are making it very difficult to do business

maney closing they can not make it

maney leaving they are done with stories

Pres. Solisthe answer is in costa rica by your government

help the people grow stop giving all employers and company’s hard time
and new taxs

reduce ice bills make incentives for business