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September 24, 2009
   
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No deal: Tomás Pozuelo, head of Costa Rica's Food Industry Chamber, says there's no good reason for his country to reach a free-trade agreement with China. See the Sept. 25 Tico Times for more on this story.

Keely Kernan | Tico Times

| Previous Daily News

Still with Brazil: Honduras' deposed President Manuel Zelaya remains holed up in the Brazilian Embassy in the Honduran capital of Tegucigalpa. Brazilian President Luiz Inácio Lula da Silva has said he's doing what he believes any democratic country would do by allowing Zelaya to take shelter in the embassy.

EFE/STR

Honduras back under curfew after violent clashes
Honduras' deposed President Manuel Zelaya said Wednesday that at least 10 people died in Tuesday's violent clashes between police and his supporters.
Officials warn of impending water shortage in Costa Rica
In the midst of what some officials have called Costa Rica's worst drought in memory, Ricardo Sancho, president of the Costa Rican Water and Sewer Institute (AyA), has warned of water shortages in the near future if the nation's citizens don't begin to conserve the resource.
As China-Costa Rica trade talks push forward, so does resistance
As deliberations over a possible free-trade agreement (FTA) between Costa Rica and China continue, opposition from some of Costa Rica's leading business associations is growing stronger.
Former finance official of Czech Republic
arrested in Costa Rica for alleged fraud
Interpol has arrested a former Czech finance vice minister in San José's Barrio Amón for an alleged $1.44 million fraud.
Inflation Is a Chronic
Disease in Costa Rica

Inflation is an insidious thing, like a thief in the night who sneaks into closets and picks the pockets of our pants as they sleep innocently on their hangers.

Honduras back under curfew after violent clashes

Honduras' deposed President Manuel Zelaya said Wednesday that at least 10 people died in Tuesday's violent clashes between police and his supporters.

“I have information of at least 10 people dead in the country,” Zelaya said in a phone conference with reporters Wednesday from the Brazilian Embassy in the Honduran capital of Tegucigalpa, according to the news agency EFE. He added that hundreds have been detained and dozens injured.

Honduran police on Wednesday confirmed one death from Tuesday night's clashes, denying an earlier claim by Zelaya that same evening that put the number at six.

De facto President Roberto Micheletti reestablished an indefinite curfew Wednesday afternoon after having suspended it for seven hours to allow the population to shop for food and basic necessities. The Micheletti administration said the curfew will start at 5 p.m., but gave no end time.

The curfew is costing the Honduran economy about $50 million a day, Jesús Canahuati, vice president of Honduras' chapter of the Business Council of Latin America, told the news agency Bloomberg.

During the hours without curfew on Wednesday, Zelaya supporters took the opportunity to take the streets once again to protest, prompting the police to resume efforts to disperse the mob with tear gas and rubber bullets.

Human Rights Watch, an international non-governmental organization, has charged that Honduran police used “excessive force” in confronting demonstrators.

According to newswire AFP, the United States on Wednesday welcomed an invitation by Honduras' de facto leaders for senior international diplomats to visit Tegucigalpa to engage in dialogue.

–Wire reports

Officials warn of impending
water shortage in Costa Rica

By Mike McDonald
Tico Times Staff | mmcdonald@ticotimes.net

In the midst of what some officials have called Costa Rica's worst drought in memory, Ricardo Sancho, president of the Costa Rican Water and Sewer Institute (AyA), has warned of water shortages in the near future if the nation's citizens don't begin to conserve the resource.

During a press conference on Wednesday, Sancho said the country needs to reduce its water consumption by 20 percent over the next three months in order to avoid an emergency drinking water situation. The average Costa Rican, who consumes 200 liters of water per day, must lower his or her daily use by 40 liters, according to Sancho.

This year, some regions have seen half their usual rainfall due to the presence of the El Niño phenomenon in the Caribbean Sea. AyA projects that every area of the country, except the Caribbean province of Limón, will see surface water reductions between 20 and 40 percent through next summer.

“This has given us a very important alert,” Sancho said. “If there is no change in water consumption on the part of Costa Rican families, we are going to have serious problems with water shortages.”

Sancho insisted that individuals should not wash their cars with anything other than a piece of cloth. He urged citizens to steer clear of watering their gardens and to spend a maximum of three minutes in the shower over the next three months.

In the case of a water shortage emergency, AyA will set up a crisis center and send cistern trucks to affected neighborhoods. The institute will also prepare bags of water to pass out to parched communities.

These plans are already in the works and should be ready in 2010, if needed.

As China-Costa Rica trade talks
push forward, so does resistance

By Adam Williams
Tico Times Staff | awilliams@ticotimes.net

As deliberations over a possible free-trade agreement (FTA) between Costa Rica and China continue, opposition from some of Costa Rica's leading business associations is growing stronger.

“The country has not made a case as to why the country needs this free-trade agreement,” Tomás Pozuelo, president of the Food Industry Chamber (CACIA), told The Tico Times on Wednesday.

The CACIA and other groups including Costa Rica's Chamber of Industries have become more vocal in their protest against the agreement. Fernando Ocampo, the Costa Rican Foreign Trade Ministry's chief negotiator, who last week wrapped up the fourth round of trade negotiations with his Chinese counterparts, expects the deal will reach a final handshake in February 2010.

That would create enormous challenges for local businesses, say the deal's detractors.

“China is not a democracy, it works on different rules, it makes the cheapest products in the world. The question is, why are we doing this? What is the benefit to us? This is why we are against the treaty. No one has been able to tell us why we're creating this agreement,” Pozuelo said.

For the foreign trade authorities, however, the reasons for creating the FTA are obvious, and the benefits it will provide are too juicy to pass up.

“China has a consumption level that is growing every year and provides the opportunity to improve the amount of Costa Rican exports,” said Ocampo. “The agreement will also benefit local markets as the amount of Chinese investment enters the country.”

As the countdown to February continues, business leaders realize their lone opportunity to halt the agreement will come when the FTA is considered for approval in the Legislative Assembly. The industrial chambers said they are seeking to sway lawmakers over to their side of the debate.

See the Sept. 25 print or digital edition of The Tico Times for more on this story.

Former finance official of Czech Republic
arrested in Costa Rica for alleged fraud

By Sean O'Hare
Tico Times Staff | editorial@ticotimes.net

Interpol has arrested a former Czech finance vice minister in San José's Barrio Amón for an alleged $1.44 million fraud.

Following a three day surveillance operation, agents from the international police body detained Karel Ponocny, 50, on Tuesday as he returned to his apartment from a gym session. He is now awaiting extradition.

The Czech Republic issued an international arrest warrant for Ponocny in 2006 for stealing most of $1.6 million in money paid by the Peruvian government in 2001.

A Prague court determined that Ponocny, who was in charge of collecting debt from Peru, knowingly exacted $1.6 million despite Peru having paid the sum off five years earlier.

With the help of businessman Anton Murarik, Ponocny allegedly took a reward of 95 percent of the $1.6 million for extracting the debt, while gifting the Czech Republic Finance Ministry with the remaining 5 percent.

Believed to have been living in Costa Rica since 2005, Ponocny obtained residency in 2006 after marrying a Costa Rican, according to an Interpol press release.

A collision involving Ponocny and a taxi driver in Barrio Amón at the beginning of 2006 brought the fugitive to the attention of police, whose background checks resulted in the intervention of Interpol.

18 months of co-ordination between the relevant Costa Rican and Czech investigative agencies finally led to the capture and arrest of Ponocny, who faces up to 12 years in prison in his home country.

Please send us your letters, 500 words or fewer, to letters@ticotimes.net for Costa Rica issues or letters@nicatimes.net for Nicaragua and the Central American and Caribbean region. Thanks!

Inflation Is a Chronic Disease in Costa Rica

By Rod Hughes
editorial@ticotimes.net

Inflation is an insidious thing, like a thief in the night who sneaks into closets and picks the pockets of our pants as they sleep innocently on their hangers.

Since the economic crisis of the early 1980s, inflation has been a fact of life in this country – like earthquakes, cloudbursts and litter on the streets. Now this newspaper has discovered that the colón is weakening and may reach ¢ 600 per dollar by the end of the year. Taking into account that the dollar is hardly Arnold Schwarzenegger on the world money exchange, this is not good news, friends!

This may be due to stagflation, a phenomenon that popped up during the administration of former United States President Jimmy Carter. The situation is this: There's less money out there to buy goods, but prices still go up. This seems to defy all logic, but as nearly as I can understand, it's much like burping when you're trying to swallow. It's not fatal, but it's extremely uncomfortable.

Nowhere is this economic heartburn more obvious than in construction. Despite having many large projects on hold in this country, the local prices of building materials continue to rise. Although my wife denies this, it seems to me that the recent redoing of our septic tank drain field cost more than putting a second floor on our house 12 years ago. This even applies to the river stones used to fill the drain field. Now, mind you, these are very elegant rocks – round and delicate dove-gray stones ranging in size from a baby's cranium to a Texas watermelon. Seems a pity to cover them up, but the neighbors might complain if we left the trench open as a tourist attraction.

And one must take into consideration that the constructor of our second floor was not one of those high-priced, highly recommended firms. You know, one with real engineers who know what they are doing. I don't know where my wife found him, but all she could tell me later about contracting him was, “Well, it seemed like a good idea at the time.”

This guy was – now let us be charitable here – a blithering idiot. Although he had only to perforate the wall between the bathroom and the hallway, he planned (before I threw a truly monumental tantrum) to put the bathroom door in the laundry room. Even before this near-disaster, it was clear that his mind – if he had one – was not on his work. He made it clear at the outset that he did not install doors and didn't do windows. Although this seemed strange(something like a secretary applicant not knowing any Microsoft programs), I unwisely let it go.

We ended up spending a king's ransom after he finished because, although he installed a new electrical system, almost nothing in the great spaghetti of wires in the attic seemed to be connected with anything else. The outlets for the computer connections were mere decorations. When we used the lower floor shower heater, the breaker box would cut power if the refrigerator turned on. Not to speak of the freezing blast of water on our shivering, unsuspecting bodies. Hiring a real electrician to sort things out was the only option. He may never be the same again, but don't ask me to pay for his visits to the psychiatrist…

I was never worried about earthquakes until the second floor went up. But now when someone climbs the stairs, the whole second floor shakes. Even our housecat will raise a quiver when racing up the steps! And there were so many leaks that the gypsum came down on the lower porch and the balcony.

But, I digress …

Do you remember when the colón was divided into céntimos? They were tiny little coins about which I once complained that, while counting them out to make the fare in the darkness of a bus, I often inhaled several. I would find more when I cleaned my fingernails. But, before inflation hit in the early '80s, they were worth something. Then the street exchange rate of the colón skyrocketed. The handwriting on the wall came when mechanics began to drill holes in the coins because they were cheaper than buying washers to put on bolts. I'm not making this up—it happened!

The five-colón bank note changed overnight from the world's most beautiful currency into a collector's item valueless at the local bank. Businesses with dollar debts folded up their tents and stole silently away into the night like bankrupt circuses.

Today's colón is yesterday's céntimo. The one- and two-colón coins are gone, along with the 100- and 500-colón bills, joining the dinosaurs. A ₡500 coin is small change although, within the memory of us longtime residents, that same amount would have paid a family's bus fare to Guanacaste province..

Once I contemplated buying six hectares of land in Guanacaste for ₡18,000. Today you don't even dare suggest writing a check for that amount for fear that the recipient would rupture something in his hysterics.

 

Longtime Tico Times staffer Rod Hughes has a few river rocks left over which he will let go of for a mere ₡2.1 million, taking inflation between now and your phone call into account.

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