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Central Bank Reference Rate
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| BUY ¢570.68 SELL ¢580.23 |
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Master class: Montserrat Siles a plays the violin with Japanese violinist Midori Goto in the National Theater in downtown San José. Midori visited Costa Rica to support music education in the country. Midori performs Friday at 8 p.m. and Sunday 10:30 a.m. with the National Symphony Orchestra also at the National Theater. |
Whitney Martin | Tico Times
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Roll on: Carlos Grijalba does laps around the new roller rink in western San José's La Sabana Park. |
Laura Sánchez | Tico Times |
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| Drugs top Ticos’ worry list, says UNA study |
| The nation's drug problem is the top concern among Costa Ricans today, according to a new survey by the National University (UNA). |
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| New skating facility opens in La Sabana |
| Their feet may roll over pavement not ice, but that's not stopping Costa Rica's ice skaters from competing for gold medals abroad. And, with the completion of an outdoor roller rink on a wing of San José's La Sabana Park, they now have the training grounds to get them there. |
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| Panama not panicking amid economic trouble |
PANAMA CITY, Panama – After Several years of explosive economic growth, Panama is starting to show signs of wear from the world economic crisis. |
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| Costa Rica’s development bank gives small businesses a boost |
Change has been slow-coming in the face of economic hardships, and small businesses have especially felt the pain of the credit crunch, but governmental programs to help these businesses are demonstrating results. |
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Why Most Ticos Don't
Want to Migrate to the U.S. |
Unlike the inhabitants of all of the other countries located between Costa Rica and the U.S.-Mexican border, Ticos are not interested in migrating north to look for better lives. And they are not interested in moving south, west or east, either. |
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| Drugs top Ticos’ worry list, says UNA study |
By Mike McDonald
Tico Times Staff | mmcdonald@ticotimes.net |
The nation's drug problem is the top concern among Costa Ricans today, according to a new survey by the National University (UNA).
In response to a question about “the most urgent situations that must be tended to in Costa Roca,” 90 percent of Costa Ricans indicated that drugs are on their list of worries.
The second most urgent situation for Costa Ricans, according to the survey, are robberies and assaults (86 percent) followed by organized crime (81 percent).
The findings represent just one section of the study – called Explaining the phenomenon of immigration and human trafficking from a focal point of wellbeing: The case of Costa Rica – carried out by UNA's Institute of Social Studies of the Population.
UNA researchers conducted phone interviews with 800 people from rural and urban areas ages 18 and older between April 20 and May 3.
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| New skating facility opens in La Sabana |
By Chrissie Long
Tico Times Staff | clong@ticotimes.net |
Their feet may roll over pavement not ice, but that's not stopping Costa Rica's ice skaters from competing for gold medals abroad. And, with the completion of an outdoor roller rink on a wing of San José's La Sabana Park, they now have the training grounds to get them there.
The new complex sits on the park's southeast corner and consists of a 200 meter track, with an internal concrete field for figure skating and other recreational activities.
“I assure you that this new National Skating Rink will be reflected in the gold medals and new records in the upcoming National Games and in the next Olympic games in London,” said President Oscar Arias, who inaugurated the ¢335 million ($588,000) rink Saturday.
According to Osvaldo Pandolfo, deputy minister of sports, the roller rink meets all requirements for international competition and is the best track in Central America.
The facility's first competition is planned for September, when Costa Rica will host the 14th Central American Student Games. Until then, the complex will be open to the public.
“We want to help our athletes and not hinder them,” said Arias. “Sports are one of our priorities and, even in times of economic crisis, we have refused to cut funding to them. Instead, we have built new facilities.”
That same day, Arias inaugurated a renovated fencing hall and sports conditioning center.
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| Panama not panicking amid economic trouble |
By Tim Rogers
Nica Times Staff | trogers@ticotimes.net
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Looking on the bright side: The Trump Ocean Club continues its upward climb amid other skyscrapers in Panama. |
Tim Rogers | Nica Times |
PANAMA CITY, Panama – After Several years of explosive economic growth, Panama is starting to show signs of wear from the world economic crisis.
The economy, which was growing at near double-digit rates a year ago, registered a more modest 2.5 percent growth rate for the first quarter of 2009, according to government figures released last week.
Leaders of the real-estate development sector, which has powered the country's economic expansion for the past five years by producing more than $1 billion in new construction annually, now predict as many as 60,000 workers could be out of a job by the end of the year.
But Panama isn't panicking. In fact, thanks to its solid banking system, geographical position and perhaps a dose of good luck, Panama expects to ride out the crisis better than its neighbors and come out the back end of the storm stronger than it went in.
See the June 26 print or PDF edition of The Nica Times, a publication sold with The Tico Times, for more on this story.
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Costa Rica’s development bank
gives small businesses a boost |
By Daniel Shea
Tico Times Staff | editorial@ticotimes.net
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Change has been slow-coming in the face of economic hardships, and small businesses have especially felt the pain of the credit crunch, but governmental programs to help these businesses are demonstrating results.
The Costa Rican Bank System for Development has given loans to 243 small businesses, totaling just over $2.8 million since it was assigned that task in April 2008, said Esteban Arrieta, a spokesman for the executive branch.
The system, which was put in place prior to the economy's recent contraction, has proven a valuable asset in providing a much-needed line of credit to smaller businesses, which, in turn, saves jobs, experts say.
“Small businesses have always had little access to credit,” said Carlos Arguedas, an economist with the National University. “So, more than anything else, when some of the bigger businesses are cutting employment to cut costs, it's significant for employment.”
With the size of the loans averaging close to $11,500, it's not likely the results will show up on a macroeconomic scale, said Eric Vargas, the strategy manager for Aldesa, a financial consulting firm in San José.
Nearly three-quarters of the loans went to small agricultural and livestock operations, the government said. Of the rest, 19 percent was given to commercial businesses, while tourism, services and industry divided the remaining bit.
The weight given to the farming sector could reflect the government's attitude toward the loans – seeing them more as a welfare effort, Vargas said.
“The amount is relatively small,” Vargas said. “But it can be a sign that this program is growing and continuing.”
It may be helping maintain jobs, but the amount isn't one that would allow for great expansions, which is what Vargas says should be the eventual goal.
“We need to take into account that small and medium businesses are facing a strong head wind right now, and the faster we can advance these measures, the better prepared they will be,” Vargas said.
The long-term goal of providing small- and medium-sized businesses with access to loans is one of the most important initiatives in strengthening the Costa Rican economy. That, in turn, will loosen the hold that foreign direct investment and tourism currently have on the country, Vargas said
“If we're able to do this in larger amounts, then we'll be taking a big step forward,” he said. “Then we'd be giving much more ownership to Costa Rican citizens, which will make us a lot more competitive.” |
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| Why Most Ticos Don’t Want to Migrate to the U.S. |
By Carlos Denton
Special to The Tico Times | editorial@ticotimes.net |
Unlike the inhabitants of all of the other countries located between Costa Rica and the U.S.-Mexican border, Ticos are not interested in migrating north to look for better lives. And they are not interested in moving south, west or east, either. Surveys reveal that fewer than one in five Ticos want to go anyplace at all. In contrast, depending on the country, 40, 50 and up to 60 percent of citizens of some of the other Central American nations report that they would pick up and leave immediately if they had the wherewithal.
Although most experts agree that some movement of people from one country to another is positive – the newcomers come with fresh ideas more energy, and contribute in a positive way to the gene pool – a massive out-migration like the ones that have taken place in the so-called C4 countries (Nicaragua, El Salvador, Honduras, Guatemala) have a debilitating impact on national growth. There is a simple reason for this: migrants are usually stronger, mentally better equipped and probably better educated than those who stay at home. That a small portion of the local talent moves to the U.S. – it is estimated that 220,000 Costa Ricans live there, one third legally – does not cause damage. However, when a massive exodus occurs (think Irish potato famine or El Salvador's civil war as causes), it is difficult for the country of origin to recover.
There are two principal reasons why Costa Ricans do not migrate to the U.S. in larger numbers. First, the local unemployment rate has been in single digits for at least the past 25 years. In fact, there have been so many employment opportunities that the economy has been able to absorb 600,000 Nicaraguan immigrants to date, most of them since the turn of the century. Secondly, most Central American migrants who go to the U.S. move to areas where they have relatives to take them in and can help them to find jobs. In a recent survey done by CID/Gallup in El Salvador, 73 percent of those interviewed stated they had family in the U.S. The corresponding number for Costa Rica is 12 percent.
Since its independence, Costa Rica has received more immigrants than any of the other nations in the region, and this probably is why it is more diverse, and why more interesting ideas and projects seem to sprout naturally in its different locations and venues. The C4 countries have created economies based on the wholesale outbound migration of many of their most talented people, and the related social costs, including crime and violence, become more acute each year. Many unemployed people living in Nicaragua, El Salvador, Honduras and Guatemala live out their days waiting for the next remittance check to come in from their relative who is working in the U.S.
An interesting, related question is: How many U.S. citizens live in Costa Rica? The estimate is about 18,000, and about half of these are in the country legally. This is fewer than a half percent of the total population. The 200,000 Ticos in the United States are less than a tenth of a percent of its population. As a percentage of the total population of each of the two countries, there are actually more Gringos living illegally in Costa Rica than vice versa. But as former Ambassador Mark Langdale once said, “Migration is not a priority on the bilateral agenda of either of our two nations.”
The crunch created by the global financial crisis has impacted primarily on Nicaraguan immigrants. With the severe drop in new construction projects and the decline in tourism, tens of thousands of Nicaraguan laborers, maids and maintenance people have found themselves on the street. Many have had to return home, where things are much worse than they were when they left the first time. The remaining jobs often have been taken by Ticos who shunned this type of work in the boom years, but now are willing to take anything to keep food on the table.
There is one important factor that needs to be added to understand the dynamics of the local labor market. There are no unemployment benefits for workers who lose their jobs, but they do continue to have health coverage provided by the Social Security System (Caja) for at least six months after being terminated. In contrast, U.S. workers do get unemployment benefits, but if they happen to get sick, they encounter problems in getting medical attention.
Because most local talent has remained in the country despite the financial crunch, it can be expected that Costa Rica will get back on its feet very quickly once things improve.
Carlos Denton is President of CID/Gallup, S.A., which provides strategy and marketing data in 14 countries of the region from its San José headquarters. cdenton@cidgallup.com
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