The Tico Times Online Daily Page

Daily Edition: San José, Costa Rica, November 7, 2003

POVERTY fell as unemployment rose in 2003.
Kathy Adams/TT Archive

Business Future of the Americas
Conference Begins Next Week
The Business Future of the Americas conference, organized by the Costa Rican - American Chamber of Commerce (AmCham) and the Association of American Chambers of Commerce in Latin America (AACCLA), will begin Sunday at the Marriott Hotel in San José.
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Poverty Level Drops to 17-Year Low
Costa Rica's poverty rate dropped 2.1% during the last year to 18.5% -- the lowest poverty rate in 17 years, according to this year's household survey by the National Statistics and Census Institute (INEC). However, unemployment, particularly in rural areas, increased significantly during the same period.
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Business Future of the Americas
Conference Begins Next Week
By Fabián Borges
fborges@ticotimes.net

The Business Future of the Americas conference, organized by the Costa Rican - American Chamber of Commerce (AmCham) and the Association of American Chambers of Commerce in Latin America (AACCLA), will begin Sunday at the Marriott Hotel in San José.

The conference will focus on the three main topics -- improving governance and making democracy work in Latin America, the role that technology and foreign investment can play in economic development, and the obstacles and challenges facing regional economic integration.

"Hosting this conference is a big accomplishment for Costa Rica," said Carlos Denton, President of AmCham. "This a unique and rare opportunity to bring together business leaders from all over Latin America and the Caribbean and political and business leaders from the United States. It's a great honor for the country."

The main conference begins Monday morning with an inauguration ceremony with President Abel Pacheco, Foreign Trade Minister Alberto Trejos, AACCLA president James Fendell and Denton. After that, José María Figueres, Co-Chief Executive Officer of the Davos, Switzerland-based World Economic Forum and former Costa Rica President (1994-1998), will give a speech on "Economic Perspectives for Latin America."

Later in the morning, U.S. Congressmen Kevin Brady (R-Texas) and Calvin Dooley (D-California) will debate on the future of U.S. foreign trade policy.

The debate will be followed by a roundtable discussion on Latin American governance with Miguel Gutiérrez, coordinator of the State of the Nation program, Daniel Fisk, U.S. Deputy Assistant Secretary of State for Western Hemisphere Affairs, and the leaders of several prominent U.S. companies.

During the lunch break, Timothy Hauser, U.S. Deputy Under Secretary for International Trade, will speak, followed by an afternoon roundtable discussion on hemispheric economic integration and free trade with Herminio Blanco, chief Mexican negotiator for the North American Free-Trade Agreement (NAFTA), Anabel González, head Costa Rican negotiator for the Central America Free-Trade Agreement with the United States (CAFTA), and representatives of Citigroup and Procter & Gamble.

By combining the perspectives of prominent public sector officials with those of leaders of important multinational firms, conference organizers hope that Business Future of the Americas will shed light on the problems the region is facing and find practical solutions.

"Latin America is going through a time of confusion and uncertainty. Things aren't clear," explained AACCLA president James Fendell. "As recent events in Bolivia and Ecuador and the challenges currently being faced by Argentina and Venezuela show, Latin America's situation is changing rapidly. Business development and economic growth in the region will depend on obtaining political stability.

"The source of Latin America's problems is poverty. The only way to eliminate poverty is through jobs," he added. "Governments just aren't good at fighting poverty. There aren't enough public funds to reduce poverty. Latin American countries lack the necessary sources of investment. For that reason, it's crucial for them to attract foreign investment. The region's economies must become more competitive. Technology and free-trade agreements can play an important role in achieving that goal."

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Poverty Level Drops to 17-Year Low
By Fabián Borges
fborges@ticotimes.net

Costa Rica's poverty rate dropped 2.1% during the last year to 18.5% -- the lowest poverty rate in 17 years, according to this year's household survey by the National Statistics and Census Institute (INEC). However, unemployment, particularly in rural areas, increased significantly during the same period.

Between July 7 and Aug. 6, surveyors interviewed 13,199 Costa Ricans from all parts of the country, in person, and asked them their employment status and monthly income with the goal of measuring Costa Rica's poverty and unemployment rates.

The basic poverty line was determined by adding the Canasta Básica -- the average price for the amount of basic foods a person must eat to consume the minimum amount of daily calories required to remain healthy -- and the Consumer Price Index (CPI) for housing, clothing, basic health care, education, and other essential expenses.

They survey defined poverty as a person's inability to cover the cost of any of his or her basic necessities. People earning less than ¢30,828 ($76) per month in urban areas and ¢24,117 ($60) per month in rural areas were classified as living below the poverty line.

The percentage of Tico households in poverty dropped 2.1% compared to last year's 20.6%. The poverty rate has been dropping steadily since 1990, when it peaked at 27.1%.

Extreme poverty was defined as a person's inability to cover the cost of basic food supplies. People earning less than ¢14,141 ($35) in urban areas ¢12,270 ($30) in rural areas were classified as living in extreme poverty. Extreme poverty also dropped, from a total of 5.7% of the population last year to 5.1% of the population this year. In 1990, extreme poverty affected 9.1% of households.

In urban areas, 15.4% of residents live in poverty and 3.3% in extreme poverty. Poverty and extreme poverty are worse in rural areas, where they affect 23.1% and 7.8% of the population, respectively.

The poorest area of the country is the southern zone, where 33% of residents live below the poverty line. The Central Valley, where only 14% of the population qualifies as poor, continues to be the country's most prosperous region.

President Abel Pacheco was quick to herald the results as a great accomplishment for the country and a sign that his government is succeeding in its campaign against poverty. Upon taking office in May 2002, Pacheco promised to shrink the poverty rate to 16% by 2006.

"Our goal has been to do more with the money we have," explained Lineth Saborío, vice-president and head of the President's Social Policy Council. "We're succeeding and proving it can be done."

However, despite the overall drop in poverty, the survey revealed alarming unemployment statistics. During the last year, 58,896 new jobs were created. However, the number of Costa Ricans entering the workforce continued to grow faster the number of jobs created, and general unemployment grew from 6.4% last year to 6.7% this year.

Urban unemployment dropped slightly from 6.8% to 6.7%, while rural unemployment rose dramatically from 5.8% to 6.6%. The Caribbean continues to demonstrate the highest unemployment rate (7.9%). The northern zone had the lowest unemployment rate (4.9%).

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U.S. Announces New Visa Regulations

By the middle of this month, the U.S. Consulate in Costa Rica plans to use a new security system called U.S. Visit. The new system will affect everyone who seeks a visa to travel to or through the United States, according to a press release from the U.S. Embassy in San José.

U.S. Visit involves photographs and scanned fingerprints and is already in use in consulates in Guatemala and El Salvador, among others. In accordance with new U.S. law, it will soon be required of all U.S. visa applicants at every consulate in the world.

The intention of the new system is to ensure the safety of U.S. citizens and foreign travelers in the United States, facilitate travel and commerce, safeguard the integrity of the immigration system, and protect the privacy of those who visit the United States.

The new system will use inkless scanners designed to be easier to use than conventional finger-printing methods and more efficient than databases of names. A traveler, upon arriving in the United States, need only place each finger on a glass plate to be scanned electronically.

No other significant changes will be made in airport immigration procedures.

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