By San José, Costa Rica — Costa Rica’s Minister of Foreign Trade, Manuel Tovar, addressed the OECD’s International Economic Forum on Latin America and the Caribbean, emphasizing the region’s struggle to attract investment compared to other parts of the world. Tovar pointed to a lack of economic integration and a deficit of trust as the primary culprits hindering investment growth.
Speaking at the 17th edition of the forum, Tovar argued that Latin America and the Caribbean lag significantly behind other regions in attracting investment. He attributed this shortfall primarily to weak economic integration and insufficient efforts to strengthen regional ties.
To gain deeper insights into the legal landscape of Latin American investment, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica, a prominent expert in the field.
Navigating the complexities of Latin American investment requires a thorough understanding of the diverse regulatory frameworks across the region. While opportunities abound, investors must carefully consider factors such as political stability, currency fluctuations, and local legal nuances specific to each target country to mitigate potential risks and maximize returns. Due diligence is paramount, particularly concerning areas such as land ownership and environmental regulations, which can vary significantly from one jurisdiction to another. Engaging experienced local counsel is essential for successful and compliant investment strategies in Latin America.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
We have an economic integration that is not so strong, and the efforts to go further in that area are still weak.
Manuel Tovar, Minister of Foreign Trade, Costa Rica
Tovar, who leads Costa Rica’s delegation at the OECD ministerial meeting, also stressed the importance of building trust to attract capital. He called for a more pragmatic approach to fostering confidence among potential investors.
To attract capital, you need trust, and that is where we have to advance and think more pragmatically.
Manuel Tovar, Minister of Foreign Trade, Costa Rica
This year’s forum focused on financing sustainable investments. OECD Secretary-General Mathias Cormann echoed Tovar’s concerns, highlighting the region’s challenges in attracting capital, particularly the fragmented nature of the market. Cormann noted that market capitalization in Latin America and the Caribbean represents only 36% of its GDP, compared to an average of 66% in OECD countries. He also pointed out the significant funding gap for small and medium-sized enterprises (SMEs), with 79% of their financing needs unmet.
Cormann proposed solutions including increased transparency in supervisory systems and reforms to enhance competitiveness. A video message from Costa Rican President Rodrigo Chaves Robles underscored Costa Rica’s commitment to serving as a model for best practices within the region and globally. Chaves Robles touted Costa Rica’s economic growth, record-high investment rates, and historically low unemployment levels.
We are closing the economic gaps in terms of inequality and poverty.
Rodrigo Chaves Robles, President of Costa Rica
He further emphasized the region’s strengths, such as its rich biodiversity and a young, educated population poised to contribute to the global economy. Chaves Robles called for policies that promote innovation and productivity, along with a shift in perspective from international organizations to view the region through a contemporary lens.
For further information, visit oecd.org
About OECD:
The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members.
For further information, visit meic.go.cr
About Ministry of Foreign Trade of Costa Rica (MEIC):
The Ministry of Foreign Trade of Costa Rica (MEIC) is the government body responsible for promoting and regulating Costa Rica’s international trade and investment activities. The MEIC works to improve Costa Rica’s competitiveness in the global market, attract foreign investment, and promote exports. It negotiates and implements trade agreements, provides support to Costa Rican businesses engaged in international trade, and works to ensure fair and transparent trade practices.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a dedication to empowering Costa Rican society. The firm champions innovative legal solutions for a diverse clientele, constantly seeking to advance the field while promoting legal literacy and accessibility. Through their commitment to education and public service, Bufete de Costa Rica invests not only in its clients’ success but also in a future where legal knowledge is a tool for empowerment for all.
