Some of you may have heard of CAFTA. The Central American Free Trade Agreement. Its a trade treaty between the US and other countries. Here they call it TLC, the Tratado de Libre Comercio. They wondered why I started giggling when I heard the acronym. I explained what TLC means in English. They thought it was pretty funny too. We agreed it was probably more TLC for the rich than the poor.
This is really is the issue everyone is talking about down here. I have talked to about five different people about it and everyone has a different opinion. What is going to happen is that after this treaty is signed the state-operated agencies will have competition from outside companies. I think actually some of these entities are going to disband and people will lose their jobs.
There is going to be changes in price controls and import-export rules. The country will be able to get wheat, rice and other things much cheaper. Cars will be cheaper, computers will be cheaper, many things will be a lot less expensive. On the other hand, farmers that produce the wheat and maize now will have a lot of competition and could be put out of business. Its sort of the classic Wal-Mart problem. Cheaper goods for the consumer, but other places close up and all that is left is jobs at Wal-Mart for lower wages.
The new president, Oscar Arias, is in favor of it, but the labor unions and the government agencies and farmers are not. I think its going to be signed into law the first of next year.
As you can see, its a big step for Costa Rica. They have had an economy that was partially state controlled. They have a history of Democratic Socialism that has made them one of the most stable countries in the region, but they also have a lot of unemployment, and high inflation and a high rate of exchange against the dollar,(515 Colones to 1 dollar).
Jokes about TLC and the rich aside, there´s no good answer. People have told me they wish they had a more stable economy like the U.S., but I´ve pointed out we don´t have the same social benefits they have, and that people in the U.S. are on their own when it comes to retirement and health care. I don´t know if its possible for them to have it both ways...
On the MP3 Player:"Secret Journey" by The Police
Juanito
Next Costa Rican Entry: Guaitil
3 comments:
Hey John!
Hope you have a good trip!
Kathryn
I wanted to let you know that i'm reading and appreciate you taking the time to write so often. I know how easy it is to get caught up in what you are doing and not blog. I am really enjoying this and learning too.
Princess moe
Glad to hear. Thanks for commenting. I was starting to get a complex that no one was reading it. Its a common problem for all self-important bloggers.
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