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Daily Edition: San José, Costa Rica, January 13, 2005

BEGGING for love: This puppy and 39 others will be looking for homes Sunday, from 10 a.m. to 12:30 p.m. in La Sabana Metropolitan Park, in western San José, and north of the capital in the Central Park of Heredia. Puppies in the adoption fair, which is organized by the Animal Friends Project, are spayed and neutered, vaccinated and free of parasites. All interested parties are invited to come take one home.
Photo courtesy of the Animal Friends Network


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State Institute Responds to Business
Demand for More English Speakers

In the coming years, call centers and related businesses are expected to generate 6,000 new jobs; and the National Training Institute (INA) is taking steps to ensure at least some will fall into the hands of those who need them most.
(Click for more)

Central Bank Confirms
Restrictive Monetary Policy

In officially presenting the Central Bank's monetary policy for 2005, bank president Francisco de Paula Gutiérrez offered few surprises yesterday. As he indicated in December, the bank will pursue a restrictive monetary policy to keep inflation in check, and he projects moderate growth and higher interest rates.
(Click for more)

Alcatel and Pinochet: Examples that
Anti-Corruption Laws Are Not Enforced

WASHINGTON, D.C. – The scandals surrounding the French telecommunications firm Alcatel in Costa Rica and former Chilean dictator Augusto Pinochet's bank accounts in the United States prove numerous international anti-corruption laws are not being enforced, French former judge Eva Joly told AFP wire service.
(Click for more)

 



January 13

Horse Parade
One of the most popular events of the Palmares fiestas, the tope, is scheduled for today at noon.

Panamanian Concert in Palmares
The Panamanian band Los Rabanes will perform in Palmares on Sunday, and is scheduled to sign autographs at Arenas Store in Los Yoses on Monday, 2:30 p.m.

Helping the Victims of the Floods in the Caribbean
Anyone who would like to help residents of Limón, Sixaola, Talamanca, and Sarapiquí affected by the recent floods are encouraged to send the following products to the Red Cross: water, milk, non-perishable food items, boats, diapers, personal and general cleaning supplies, clothes, blankets and kitchenware. Monetary donations are also welcome at the following accounts: Banco Nacional: 100-100-7, Banco Popular: 5000-8, Banco de Costa Rica: 176-00303 (colones) and Banco de Costa Rica: 204-6 (dollars).

 

Edited By Rebecca Kimitch
Tico Times Staff
rkimitch@ticotimes.net

 


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State Institute Responds to Business
Demand for More English Speakers

By Rebecca Kimitch
Tico Times Staff
rkimitch@ticotimes.net

In the coming years, call centers and related businesses are expected to generate 6,000 new jobs; and the National Training Institute (INA) is taking steps to ensure at least some will fall into the hands of those who need them most.

Officials from the state-funded institute announced yesterday that next month it will start offering free intensive English classes aimed at serving the growing industry of customer service call centers here being outsourced by businesses in the United States.

“In the United States, the demand in this sector has grown gigantic,” said Edna Camacho, general director of the Costa Rican Investment Board (CINDE), which is partnering with INA and businesses in the new program.

Human resources are more important than anything else in meeting this demand over the long term, added Alfredo Ribeiro, human resources manager for Hewlett Packard.

In five years, the industry here has grown to 6,000 jobs in 34 companies, including 1,300 jobs in Procter & Gamble, which calls Costa Rica home to its accounting and payroll services for the Americas, and 1,400 jobs in Sykes Latin America, which handles tech-support and consumer-product services for 16 multinational companies (TT, Oct. 1, 2004).

In the next four years, the United States will demand 500,000 such jobs outside the United States, Camacho said.

The English program aims to attract these jobs by providing qualified labor, and do so in a way that will benefit those who need it.

The nine-month course can be an alternative for recent high-school graduates who are financially unable to attend college, INA's Virgina Garita told The Tico Times.

The only educational requirement for the course is a high-school diploma. A basic knowledge of computer use is also preferred.

Because students must be available for the six-hour a day, daytime classes, throughout the duration of the nine-month course, it is limited primarily to recent graduates who do not have full-time day jobs or families. The classes are free and ¢50 million ($109,000) is available for food and transportation scholarships.

INA offers job placement and as sector demand grows, INA executive president Róger Carvajal said he is confident students will have little trouble finding work.

Because most call centers offer 24-hour services, employees may then have the time and financial resources to attend university, he said. The English courses may also be good for credit in Costa Rica's public technical schools and universities.

The courses are designed specifically to meet the language needs of the sector, and include lessons in conversation, reading, composition and pronunciation, with more than half of lesson-time dedicated to conversation. Students also have two 35-hour supervised internships in call centers.

According to the United Nations 2004 World Investment Report, for Costa Rica to maintain its position as one of Latin America's top per-capita recipients of direct foreign investment, one of its main priorities must be increasing its supply of English-speaking workers.

Five years ago, five in 10 people who applied for a job that required English-speaking skills met the hiring criteria. Today only three in 10 applicants fit the bill. The first companies to arrive took the cream of the crop, according to Tomás Gilmore, one of CINDE's directors (TT, Oct. 1, 2004). Newer arrivals have had a harder time.

Costa Rica is therefore at a comparable disadvantage with outsourcing powerhouse India, where English is widely spoken, and El Salvador, which is home to thousands of English-speaking expatriates, Gilmore said.

Under the new program, classes are being offered in various INA centers, primarily in the Central Valley, including downtown (on Paseo Colón), and in Alajuela, Grecia, Heredia and Naranjo.

However the program could be extended throughout the country as demand requires, Carvajal said.

“Right now we are beginning in the Central Valley… We are working where there is a demand. We will extend the program to other places if there is investment there,” he said.

The program will begin Feb. 9 with 10 groups of 25 students. Garita said she hopes another round of classes can be started around April.

Registration for the classes will be held Feb. 1-2, 8 a.m., in the auditorium of INA La Uruca, in northwestern San José, across from the National Amusement Park.

For more information, call 222-7210, 221-8898 or 451-0433, ext. 207 or 208.


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Central Bank Confirms
Restrictive Monetary Policy

By Katherine Stanley
Tico Times Staff
kstanley@ticotimes.net

In officially presenting the Central Bank's monetary policy for 2005, bank president Francisco de Paula Gutiérrez offered few surprises yesterday. As he indicated in December, the bank will pursue a restrictive monetary policy to keep inflation in check, and he projects moderate growth and higher interest rates.

Controlling inflation, which in 2004 closed at 13.13%, is the bank's top priority, Gutiérrez said.

“We are going to return to a level of 10%, and expect... to reach even lower levels (9%) in 2006,” he said.

He emphasized that 2004's high inflation figures were “an isolated event” caused by the increased prices of petroleum and key agricultural products such as rice.

Projected growth for 2005 is 3.2%, down from 4.2% in 2004. Gutiérrez said lower growth is “the cost” of controlling inflation and the country's deficit. The combination of increasing exports with restrictive domestic policies result in a projected 4.2% growth in the external deficit, down from 4.8% last year.

Gutiérrez also announced the bank is slowing devaluation of the colón against the dollar to ¢0.15 per day, down from ¢0.17, effective today. He explained that the devaluation of the U.S. dollar is giving the bank space to slow the devaluation of the colón, since the bank also takes into consideration the value of the colón relative to the euro and yen.

As he did in December, Gutiérrez underscored the importance of the passage of the Central American Free-Trade Agreement with the United States (CAFTA) and the Permanent Fiscal Reform Package, an ambitious tax plan, in 2005 (TT, Dec. 24, 2004).

“We respect the President's political strategy (of refusing to send CAFTA to the Legislative Assembly until the tax plan is approved), but we feel that the country must confront both issues in 2005,” Gutiérrez said.


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Alcatel and Pinochet: Examples that
Anti-Corruption Laws Are Not Enforced

By Antonio Rodríguez
AFP wire service

WASHINGTON, D.C. – The scandals surrounding the French telecommunications firm Alcatel in Costa Rica and former Chilean dictator Augusto Pinochet's bank accounts in the United States prove numerous international anti-corruption laws are not being enforced, French former judge Eva Joly told AFP wire service.

“It was to be expected that banks should become familiar with the rules, especially one that stipulates you must ‘know your client' ... but that is not how it was,” the Franco-Norwegian magistrate declared after participating in an Inter-American Development Bank seminar on “ethics and development.”

The judge, who investigated the Elf case, a major corruption scandal in France, pointed to the Costa Rican example as one of the most “ironic” this past year because it prompted former Costa Rican President José María Figueres to renounce his position as general director of the Davos-based World Economic Forum.

Joly, an advisor for the Norwegian government, remembers two years ago, Figueres invited United Nations Secretary General Kofi Annan to a Swiss alpine station to add a tenth rule to the “Global Compact” initiative, dedicated to anti-corruption.

“What surprises me about this matter is the irony that the Costa Rican ex-President, who added a tenth rule to an initiative urging businesses to respect all international conventions (against corruption), has fallen because of Alcatel,” she said.

“This is a clear example that there is a difference between what is said and done,” she explained, alluding to the $906,000 Figueres admittedly received from Alcatel “in payment for telecommunications consultancy services.” The French firm has been linked to the alleged payment of million-dollar bribes to obtain a contract with the state-owned Costa Rican Electricity Institute (ICE).

Besides Figueres, the scandal led former President Miguel Angel Rodríguez to renounce his position as Secretary General of the Organization of American States (OAS). He is currently in jail awaiting trial for allegedly receiving illegal commissions.

The French anti-corruption judge also mentioned the case of Pinochet's accounts at Riggs Bank in the United States as an example that the norms of the Financial Action Group (GAFI) are not respected.

Joly said when the ex-dictator was arrested in London in 1998 Riggs Bank transferred $1.6 million to the United States, despite Spanish judge Baltasar Garzón's international order to freeze his accounts.


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