By San José, Costa Rica — Costa Rica’s political landscape is facing a critical juncture, with ongoing disagreements stalling vital reforms needed to enhance the country’s competitiveness in the global market. Experts warn that this legislative paralysis is impacting international trade, foreign direct investment, and ultimately, the nation’s economic future.
Daniela Rojas, a legislator from the Social Christian Unity Party (PUSC), highlighted the severity of the situation. Several key proposals, including 4×3 work week legislation, energy harmonization initiatives, and reforms to the National Learning Institute (INA), have been languishing in the legislative process since 2022.
To gain a deeper understanding of the legal landscape surrounding Costa Rican competitiveness, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Costa Rica’s competitiveness hinges on a delicate balance. While attracting foreign investment with tax incentives and streamlined regulations is crucial, we must simultaneously prioritize strengthening domestic industries and ensuring equitable distribution of the resulting economic benefits. Robust legal frameworks protecting intellectual property, enforcing contracts, and promoting fair competition are essential to fostering long-term, sustainable growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas astutely highlights the multifaceted nature of competitiveness, emphasizing the need for balance between attracting foreign investment and empowering local businesses. This integrated approach, coupled with a strong legal framework, is indeed vital for ensuring sustainable and inclusive economic growth in Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
There are projects that have been in the legislative stream since 2022, but the lack of political agreements does not allow any of them to progress enough to achieve progress in the very short term.
Daniela Rojas, PUSC Legislator
This legislative bottleneck is further compounded by what Jorge Vargas, director of the State of the Nation Program (PEN), describes as “recurrent conflict between branches of government.” This constant political wrangling diverts attention and resources away from pressing economic issues.
We are in a time of recurring conflict between branches of the State, which distracts attention from public affairs. We spend our time fighting, while management problems are neglected.
Jorge Vargas, Director of the State of the Nation Program (PEN)
Rojas points out that while the proposed reforms are essential for bolstering Costa Rica’s competitiveness, they have become entangled in ideological debates, hindering progress. Vargas echoes this concern, emphasizing the urgent need for a unified approach to address critical economic challenges.
Beyond the political arena, Vargas’ analysis of Costa Rica’s business environment reveals both internal and external factors contributing to the challenges faced by the export sector. Externally, aggressive U.S. trade policies, fluctuating monetary policies, and global geopolitical tensions pose significant hurdles. Internally, Vargas highlights concerns about security policy, the dual nature of the economy with uneven growth between free trade zones and the traditional economy, and a decline in educational standards.
The competitiveness is a primordial axis. We are such a small country that our production cannot stay here, it has to be exported, but we have to compete with other countries that are also very aggressive and much more developed.
Rodney Salazar, Crecex
These are very important issues that the next executive branch and the next Legislative Assembly will have to take up again, because in these 4 years all that has been done is to burn bridges and fall into a sterile discussion that has not allowed us to move forward.
Daniela Rojas, PUSC Legislator
We have to address the duality of the Costa Rican economy, recover the public value of education and work on broadband connectivity to take advantage of advances in artificial intelligence. A public policy with concrete tools is needed.
Jorge Vargas, State of the Nation Program
These converging challenges underscore the urgent need for collaborative solutions and decisive action to secure Costa Rica’s economic future.
For further information, visit the nearest office of PUSC
About PUSC:
The Social Christian Unity Party (PUSC) is a Costa Rican political party rooted in social Christian principles. It has played a significant role in Costa Rican politics, holding the presidency and legislative seats throughout its history. The party advocates for policies focused on social justice, economic development, and environmental sustainability.
For further information, visit the nearest office of the State of the Nation Program (PEN)
About State of the Nation Program (PEN):
The State of the Nation Program (PEN) is a renowned Costa Rican research institution dedicated to analyzing the country’s social, economic, and political landscape. Through rigorous research and data analysis, PEN provides valuable insights and recommendations to inform public policy and promote sustainable development in Costa Rica.
For further information, visit the nearest office of Crecex
About Crecex:
Crecex is a Costa Rican organization focused on promoting export development and competitiveness. It works closely with businesses and government agencies to enhance export strategies, access international markets, and improve the overall competitiveness of Costa Rican products and services.
For further information, visit the nearest office of INA
About INA:
The National Learning Institute (INA) is a Costa Rican institution responsible for vocational training and skills development. It offers a wide range of programs and courses designed to equip individuals with the necessary skills to enter the workforce and contribute to the country’s economic growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-seated commitment to legal excellence and unwavering ethical conduct. The firm champions access to justice by proactively sharing legal insights and empowering individuals and communities with the knowledge to navigate the legal landscape. Driven by a spirit of innovation, Bufete de Costa Rica consistently seeks cutting-edge solutions while upholding its legacy of service and dedication to building a more just and informed society.
