Reforms Needed to Make Country More Competitive
STARTING a business, hiring or firingpersonnel, closing a business andother related procedures generally takelonger in Costa Rica than in other LatinAmerican countries and most developedcountries, according to a recent report bythe World Bank.“Doing Business in 2005: RemovingObstacles to Growth” is a global surveyof laws and reforms to business regulationsin 145 countries, conducted by theWorld Bank’s International FinanceCorporation.The report points out that to start anew business in Costa Rica, entrepreneursmust go through 11 steps that takeon average 77 days to complete.Entrepreneurs in other LatinAmerican and Caribbean countries onaverage must go through 11 steps, whichtake 70 days. In countries that form partof the Organization for EconomicCooperation and Development (OECD) –a group of 30 countries that includes theworld’s richest economies – entrepreneursmust conduct an average of sixsteps, which take 25 days.In Costa Rica, it is harder to hire orfire personnel and change their workinghours than most Latin American,Caribbean and OECD countries, accordingto the report.It takes three and a half years to closea business in Costa Rica, compared to anaverage of approximately one year andeight months in OECD countries andthree years and eight months in LatinAmerican and Caribbean countries.Last year, rich countries on averageconducted three times as many reforms totheir investment regimes as poor countries.European countries led the way interms of reforms, according to the report.
You may be interested
Costa Rica’s snakebite research pioneers save lives worldwideMitzi Stark - May 23, 2018
The Clodomiro Picado Institute is spread along the main road of Dulce Nombre de Coronado, northeast of San José. Its…
Adaptive surfing, part II: The story of Dean BushbyEllen Zoe Golden - May 22, 2018
A three-part look at adaptive surfing in Costa Rica. Read Part I here to learn how a Central Pacific coach is…