The Tico Times Online Daily Page

Daily Edition: San José, Costa Rica, January 15, 2004

YEARNING FOR REFORM: Presidency Minister Toledo (center) convinces the major legislative faction heads to grease the wheels of government.
Courtesy Casa Presidencial

Executive and Legislators Agree
To Plan to Approve Fiscal Reform
Presidency Minister Ricardo Toledo reached an agreement with the leaders of all five major legislative factions yesterday, which he hopes will smooth approval of a much-needed fiscal reform that has spent the last 15 months in commission.
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Central Bank: Strong Growth and Lower
Than Average Inflation Target in 2004
This will be a year of economic stability with 4.4% growth and 9% inflation, Central Bank President Francisco de Paula Gutiérrez announced yesterday when he unveiled the institution's 2004 monetary policy and economic projections.
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January 15

Camping
All kids 8-12 are welcome to participate in the Camp organized by Simón Bolivar Zoo staff at the zoo, Av. 11, Ca. 7, Jan. 15-16. Hurry! Info: 256-0012.

Palmares Fiestas
Don't miss this popular fair. It including rides, carnival, tope (horse parade), concerts with national bands and a super concert with Oscar de León (The Salsa King), Sun., Jan. 18 and another one with Alex Sintek, pop, Sun., Jan. 25, at noon, for free. The fair starts today and will continue through Jan. 26, Palmares, Alajuela. Info: 453-1414.

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Executive and Legislators Agree
To Plan to Approve Fiscal Reform
By Tim Sparkman
tsparkman@ticotimes.net

Presidency Minister Ricardo Toledo reached an agreement with the leaders of all five major legislative factions yesterday, which he hopes will smooth approval of a much-needed fiscal reform that has spent the last 15 months in commission.

According to a release from the Office of the President, the party heads agreed to meet every Monday to coordinate with Toledo and help the passage of the reform. Toledo also suggested that legislators try to pass the reform through commission to the Plenary within the next 15 days.

"The Executive will consider this bill its own," said Toledo, "and once it passes to the Plenary we will leave it to be the only bill" to be considered by the Legislative Assembly until it passes. Toledo admitted that this is the first time the Executive Branch has done such a thing, adding that the significance of the reform is the reason for the Executive interest.

Both the executive and legislative branches of government have come under fire in past weeks for what was considered a slow year in 2003 for the passage of needed laws. Some legislators blamed the Libertarian Movement for the lack of productivity, because of the numerous motions its five legislators present in nearly every debate.

The Libertarians responded by pointing to the leadership style of Legislative Assembly President Mario Redondo, and said an attempt to reform legislative procedures to facilitate the passage of laws was really an attempt to silence their party.

Nevertheless, another agreement reached today between Toledo and the party heads called for a compromise to reform legislative rules and allow some projects to be put on a "fast track."

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Central Bank: Strong Growth and Lower
Than Average Inflation Target in 2004
By Fabián Borges
fborges@ticotimes.net

This will be a year of economic stability with 4.4% growth and 9% inflation, Central Bank President Francisco de Paula Gutiérrez announced yesterday when he unveiled the institution's 2004 monetary policy and economic projections.

During 2003, the economy grew 5.6%. While it may seem the economy is beginning to slow down, that may not actually be the case.

"Last year's strong growth had 2002, a year of weak economic growth, as its starting point," Gutiérrez explained. "This year's projected growth is on top of last year's growth. The economy continues to grow at nearly twice the rate of population growth (2.2%). In that sense, the country's per capita income is growing steadily."

Following two straight years of single-digit inflation (inflation totaled 9.87% in 2003), the Central Bank has raised it sights, setting its inflation target at 9%. This marks a change in the country's monetary policy, which for the last 15 years has targeted inflation rates of 10%.

As a direct result of the new inflation target, the colón's rate of devaluation against the U.S. dollar will drop from ¢0.16 a day in 2003 to ¢0.15 a day in 2004. Overall devaluation should be 9.5% this year, compared to 10% last year.

The economy will continue to be fueled by exports, particularly high-tech and non-traditional agricultural ones. Exports are expected to grow 9.3% next year, totaling $6.64 billion. Imports will grow 4.5%, totaling $7.99 billion.

The increase in exports in relation to imports will help reduce the country's current account deficit -- overall imports of goods and services (but not capital) surpassed exports -- from 5.7% of the country's GDP in 2003 to 4.4% this year.

As in previous years, the current account deficit will be financed primarily through foreign direct investment. Foreign investment is expected to drop by 5.6% in 2004 with the completion of the five-star Four Seasons Resort in the northwestern province of Guanacaste. Overall, Gutiérrez qualifies the current influx of foreign capital as solid and positive.

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Microsoft Signs Agreement
With Education Ministry

U.S. software giant Microsoft signed an agreement yesterday to give an estimated $1 million in software to Costa Rica's Ministry of Public Education.

Microsoft Costa Rica General Manager Rodrigo Ayala met with Education Minister Manuel Antonio Bolaños and acting President Lineth Saborío to officially seal the deal, called the "Alliance for Progress."

The Education Ministry said more than one million students and 60,000 teachers will be taught how to use modern computer technology through the program. "With this investment we bring bigger and better opportunities for access to education technology to education centers of priority rural and urban zones," Bolaños added.

The Alliance for Progress program is divided into two parts. In the first, Microsoft will donate licenses for Windows 98 and 2000 operating systems that will be made available on every computer that has been donated to the Education Ministry, according to a Microsoft statement.

The second aspect of the agreement consists of a "robust plan" to train administrative personnel, teachers and students in the use of the donated operating systems. The training will be provided by Microsoft instructors and will take place in Microsoft Training Academies that will be established in easily accessible, strategic areas.

As an added bonus for the Education Ministry, Microsoft has agreed to make available subscriptions and licenses to the Office XP operating system at a "symbolic cost" of $2.50. Windows XP will also be given to the ministry for free.

The donations will be given in installments of $250,000 annually over a five-year period, and the program is scheduled to begin in the first of this year.

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Wednesday October 26, 2005