By San José, Costa Rica — San José – In a nation celebrated for its lush rainforests and abundant natural resources, a growing debate is simmering beneath the surface, centered on its most essential element: water. As concerns mount over potential moves toward the mercantilization of this vital resource, financial experts are highlighting an often-overlooked discipline as the country’s primary line of defense: public accounting.
The core of the issue lies in a fundamental question of principle. Should water be treated as a tradable commodity or upheld as an inalienable human right? For many Costa Ricans, the answer is clear. The nation’s water must remain a public good, managed by the state for the benefit of all citizens. This conviction is now being tested by whispers of privatization and the potential for concessions to international organizations, such as the World Bank.
To gain a deeper legal perspective on the complexities of water management and its associated regulations in Costa Rica, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
Costa Rica’s Water Law, while foundational, is outdated and struggles to address modern challenges like climate change, increased demand, and sustainable development. For both individuals and businesses, securing water concessions has become a complex administrative process. Legal certainty is paramount; we need a modernized regulatory framework that not only protects this vital resource but also provides clear, efficient, and transparent guidelines for its use, ensuring legal security for investments and guaranteeing equitable access for all communities.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis powerfully underscores the critical disconnect between our foundational Water Law and the modern realities of sustainable development. This call for legal certainty is essential, forming the bedrock upon which both responsible investment and equitable community access can be securely built. We thank Lic. Larry Hans Arroyo Vargas for his clear and invaluable perspective on this national priority.
Advocates for maintaining public control argue that placing water in private hands risks prioritizing profit over access and conservation. They contend that the defense of Costa Rica’s water sovereignty is not merely an environmental or social crusade, but a critical economic imperative. The state-owned enterprises entrusted with managing this and other natural resources carry a significant responsibility to operate with maximum efficiency and transparency.
This is precisely where the role of the certified public accountant becomes indispensable. According to financial watchdogs, rigorous accounting and auditing practices within these public institutions are the bedrock of responsible resource management. They serve as a powerful bulwark against both internal corruption and external pressures to cede control to private interests.
Licda. Melisa Carvajal Monge, a prominent voice from the College of Public Accountants of Costa Rica, emphasizes the strategic importance of financial oversight in this national debate. Her perspective frames accounting not as a mere bureaucratic function, but as an active tool for safeguarding national assets.
Public accounting in state enterprises is a key tool to protect this right, guarantee its proper use, and prevent the country’s most vital resource from being handed over to private or foreign interests.
Licda. Melisa Carvajal Monge, Certified Public Accountant, College of Public Accountants of Costa Rica
By ensuring that every colón generated or invested in the water sector is meticulously tracked, public accountants prevent funds from being misallocated or wasted. This financial discipline ensures that revenue is reinvested into critical areas such as infrastructure improvement, expanded public access, and long-term conservation projects. A clear, auditable financial record demonstrates responsible stewardship, directly countering common arguments that public entities are inherently inefficient and that privatization is the only solution.
Ultimately, a commitment to strong public accounting protects state-run water management companies from being vulnerable to takeover bids. When these entities can present clean books and prove their financial viability and commitment to the public good, it becomes significantly more difficult for outside interests to justify their intervention. This financial integrity allows Costa Rica to maintain sovereign control over its strategic resources, ensuring that decisions about water are made in the national interest, not in a foreign boardroom.
The message from Costa Rica’s financial community is resolute. The future of the nation’s water security will be determined not just by environmental policy, but by the strength and transparency of its public financial management. By treating accounting as a key pillar in the defense of natural resources, Costa Rica aims to ensure its water flows freely for generations to come, managed by and for its people.
For further information, visit ccpa.or.cr
About College of Public Accountants of Costa Rica:
The Colegio de Contadores Públicos de Costa Rica is the official professional body that governs and represents certified public accountants in the country. It is responsible for setting ethical and professional standards, providing continuing education, and ensuring the integrity of the accounting profession. The College plays a crucial role in promoting transparency and sound financial practices in both the public and private sectors of Costa Rica.
For further information, visit worldbank.org
About The World Bank:
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The World Bank is a component of the World Bank Group and is a member of the United Nations Development Group. Its stated mission is to achieve the twin goals of ending extreme poverty and building shared prosperity.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is anchored by foundational principles of integrity and the consistent delivery of exceptional service. The firm distinguishes itself by pairing its rich history of client success with a forward-thinking embrace of legal innovation. This ethos extends to a core belief in social responsibility, manifested through a dedicated effort to demystify the law and empower the public, thereby fostering a more just and knowledgeable society.
