Today's Stories: Arias Early Frontrunner Central Bank Tightens Monetary Policy To Stave Off Inflation Catholic Church Offers Public Apology for Sexual Abuses by Priests Chilean Ambassador to be Replaced

Oscar Arias Sánchez Oscar Arias Sánchez was born in 1941.  Arias embarked on his political career in earnest in 1970, as assistant to Jose Figueres. When Figueres was elected in 1972, Arias was given a seat in the government as Minister of National Planning and Political Economy. Arias was elected President in 1986, winning 52.3% of the votes against 45.8% for the Christian Social Unity candidate. As President, he intervened against the activities of U.S.-backed Contras on Costa Rican territory. Although critical of the political system in Nicaragua, Arias has concentrated on engaging Nicaragua and the other Central American states in a peace-making process. In 1987 Arias was awarded the Nobel Peace Price for his efforts to end years of armed conflict in Central America and stirring hope in the region. Arias was the driving force behind the 1987 peace agreement between the Central American countries.

Air Traffic Controllers Strike Continues into Day 37!

41 per cent of respondents in the Unimer poll would vote for Arias in the next election, while 52% respondent in favour in the CID Galllup poll.

In March, the 63-year-old Arias officially announced his intention to run for president again. He is likely to face Antonio Álvarez Desanti in an internal National Liberation Party (PLN) primary.

The Costa Rican congress opted to bring back presidential re-election last year. A president can now be re-elected for one additional term, but not consecutive.

Arias headed the government from 1986 to 1990, and is still regarded for his democratic proposals and actions on how to deal with violence in Central America.

The poll shows that Ottón Solís of the Citizens Action Party (PAC) is second with 14 per cent, followed by Otto Guevara of the Libertarian Movement (ML) with nine per cent.

Solís's presidential bid in the last election forced the a run-off election for the first time in Costa Rica history.

The next presidential election in Costa Rica is tentatively scheduled for February 2006.

Central Bank Tightens Monetary Policy To Stave Off Inflation
by Mike Godfrey, Tax-News.com

As the country faces increasing inflationary pressures, Costa Rica’s Central Bank President has announced a tightening of monetary policy in an attempt to ensure future economic stability.

“If we have to choose between stability and growth, we choose stability,” stated Central Bank President Francisco de Paula Gutiérrez on Monday, according to the Tico Times. Economic forecasts foresee inflation reaching 11% this year – the highest rate in six years.

“In general, the price of money will go up. These policies will make credit more expensive. It will also make imported goods more expensive. It will make people consume less and save more,” Gutiérrez explained.

Likening the measures to piloting an aircraft through storm clouds, the central banker explained: “We’re telling people to fasten their seatbelts.”

The inflationary pressures on the economy have been blamed to a large extent on the rising price of crude oil, which has once again broken above the $40 per barrel mark.

Central Bank policy makers previously based their plans on the assumption that the price of oil would pivot around the $28 per barrel mark.

However, economic data shows that the prices of both consumer goods and raw materials have also been rising since the end of last year, contributing to the inflationary effect.

Nevertheless, Gutiérrez has indicated that he is prepared to be flexible over future monetary policy if there are any major changes to Costa Rica’s economic circumstances, or if the nation’s long-awaited tax reform plan is approved by the legislature.

Catholic Church Offers Public Apology for Sexual Abuses by Priests
The Catholic Church in Costa Rica yesterday asked publicly for forgiveness for the sexual abuse of minors perpetrated by some priests.

The apology was offered by the monseñor José Francisco Ulloa Rojas, bishop of Limón and president of the Conferencia Episcopal de Costa Rica, which united the 10 bishops in the country, in a commemoration ceremony on the day of the patron saint of Costa Rica, la Virgen de los Ángeles.

The monseñor addressing the devoted attending the mass at the Basilica de Cartago, with humility asked those in attendance for forgiveness for all the harm and pain caused by the actions of some priests. He promised to continue to apply stringent measures to avoid any further situations.

The declaration was made at the 9:30 mass following the pilgrimage of an estimated million people who walked to Cartago over the weekend.

The monseñor remarked, that of the 800 priests in Costa Rica, one can count on one single hand the number of priests who have been delinquent, recognizing that the pain and suffering caused by those few is not easily erased.

In the past year, the courts have handed down firm sentences against two priests for sexual abuse in Cartago and San Carlos; one was sentenced to 12 years, while the other to fours years in prison. This does not include the charge a against the priest in San Carlos who is still at large, avoiding capture by police.

Monseñor Hugo Barrantes, archbishop of San José, said that the forgiveness offered is line with the teachings of Pope John Paul II.

President Abel Pacheco, who along with is wife, attended the morning mass, commented that it pains him much that church has to offer forgiveness for the actions of a few.

The church also yesterday asked for the prohibition of the contraceptive "the day after pill" and the for the approval of the "sex education" guide prepared by the church to be used in the country's schools.

Chilean Ambassador to be Replaced
The Chilean Ambassador to Costa Rica, Guillermo Yunge, will leave his post in September.

Yunge is expected to give his report to the Chilean capital on the tragedy of last Tuesday, when a member of the Fuerza Publica guarding the embassy, killed three diplomats before killing himself.

Yunge is not a career politician. He was appointed Ambassador in 2000 and his removal is rumoured to be due to pressure placed on the Chilean government of the families of those killed.