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COSTA RICA2002

Economic and social prosperity for all

President Pacheco is truly a “humble man." He calls himself a "humble man" and others refer to him in the same manner. Costa Ricans know him for his non-political background, and there are many who argue that his charisma, trusty character and strength indeed derive from the fact that he is not a politician. Even though one can argue on a fact whether it is possible to be a President and lead a country without being a politician, his ideas to combine progress with “soft” values reflect fresh, pioneering ideas.

For him “richness” means richness Mother Nature gave us. This is why the Bill of Environmental Rights is currently being evaluated in the Costa Rican Congress, and if it passes, this will lead to a constitutional change. President Pacheco recently informed an audience in Washington D.C. that more changes and regulations, in oil drilling for example, are yet to come.

According to President Pacheco, globalization has two interwoven aspects: economic and human. When it comes to Free Trade agreements, he is for them as long as they will attempt to distribute and allocate wealth evenly, and contribute to the harmony between the nations.

Naturally, this new globalization process has to begin first in Costa Rica. One of the domestic burdens, at present, is the country's fiscal deficit, which currently is 4.7% of the GDP – enough money to help all of the 700,000 Costa Ricans currently living in poverty. To fight this social problem, the President has introduced a so-called “ethical accord”, which defines limits to public expenditures and introduces temporary taxes on companies and institutions. Better tax-collection will be introduced, as well.

On the positive side, Costa Rica has recently made significant reductions in the foreign debt. When in 1997 the Inter-American Development Bank-debt was $911 million, it is today $787 million. The corresponding figures to the World Bank-debt are $192 million in 1996 and $93 million today. For debt-transactions, negotiations with the US on exchanging debt with environmental protectionism continue.

Governments either create societies in which economic interests overrule “soft values,” or where the virtues of equality, harmony, peace, and mutual respect come before economic ideals. For centuries, these issues have divided governments in two, depending on which philosophical school they believe in.

President Pacheco is enacting policies that work towards both economic prosperity and human development.




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