Daily Edition: San José, Costa Rica, September 02, 2005
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Finance Minister Presents
Budget Amidst Political Turmoil
In the midst of a political battle of wills between the Executive Branch and the Legislative Assembly, beleaguered Finance Minister Federico Carrillo presented the 2006 budget yesterday to legislator Olman Vargas, President of the assembly's Finance Committee, the group in charge of the budget's study.
(Click for more)
Rita Marley to Perform
Concert in San José
Rita Marley, reggae diva and the widow of legendary singer Bob Marley, is scheduled to perform a concert Saturday at 6 p.m. on the boulevard in front of the National Museum in San José.
(Click for more)
Study: Consumer
Confidence Down
Costa Ricans are feeling glum about the economy. Consumer confidence is down, which means improvement may not be on the horizon for the country's economy, according to the most recent consumer confidence survey released yesterday by the University of Costa Rica's School of Statistics.
(Click for more)
Former President's Appeal Rejected
The Constitutional Chamber of the Supreme Court (Sala IV) has rejected a writ of habeas corpus – a demand for proof to justify a detention – from former President Miguel Angel Rodríguez, who alleges his detention for alleged corruption is illegal.
(Click for more)
September 02
Creative Little Hands
InBioparque invites children to show off their abilities – playing instruments, singing, dancing, painting, or selling their own handmade products. The event will also offer a concert by Marifer at 3 p.m. and live transmission of the program Chiqui Vox, Sept. 4, starting at 10 a.m., InBioparque, Santo Domingo, Heredia. Info: 507-8276.
Masquerade and Workshop on Mask Making for Children
On Sunday, families will enjoy a masquerade at 10:30 a.m. and also will learn about the mask-making process in a workshop dictated by artisans from Barva (a district of Heredia Province, famous for its masquerades), noon-2 p.m. at the Gold Museum, underneath Plaza de la Cultura. Info: 243-4202.
Festival Flores de la Diáspora Africana
The Art and Culture Organization has inaugurated a festival that honors black people and will feature the honor guest of the singer Rita Marley, widow of Bob Marley. Other activities include the opening of the exhibit of paintings and African dresses exhibit at Museo Nacional, tonight at 7 p.m. Thelma Darkings and dancer Claudio Taylor are being honored as well. On Saturday, everyone is welcome to try some Afro-Limón food and music honoring the Marfil Group. Among the genres people will listen to are gospel, jazz, soul, hip-hop, salsa, reggae and socca at 6 p.m. at the boulevard of the National Museum. Sasha Campbell and her guest will sing on Sunday at 9 p.m. at Jazz Café.
Edited By Rebecca Kimitch
Tico Times Staff
rkimitch@ticotimes.net
Finance Minister Presents
Budget Amidst Political Turmoil
By Leland Baxter-Neal
Tico Times Staff
lbaxter@ticotimes.net
In the midst of a political battle of wills between the Executive Branch and the Legislative Assembly, beleaguered Finance Minister Federico Carrillo presented the 2006 budget yesterday to legislator Olman Vargas, President of the assembly's Finance Committee, the group in charge of the budget's study.
The budget outlines ¢2.76 trillion ($5.71 billion) in government spending, up from last year's budget of ¢2.3 trillion ($5.18 billion) (TT, Sept. 3, 2004).
Carrillo said the budget prioritizes the “critical areas” of health care and education.
“We are investing 13% in education, opening 50 additional elementary and high schools, 20 middle schools, and 1,500 teaching positions,” the minister said.
He added that the government had increased its collected income by 22% over the last year. However, he said, the country is caught in a “vicious circle” of debt payments, and 80% of tax income, “before we can even think what to do with it,” goes directly to salaries, pensions and paying down the debt.
“I reiterate the importance of approving the tax plan,” Carrillo said, referring to the Permanent Fiscal Reform Package that has been in the assembly for more than three years and upon which the President has conditioned sending the Central American Free-Trade Agreement with the United States (CAFTA) to the legislature for discussion (TT, Aug. 26). “Until this happens, the government, in particular the Executive Branch, will act in a very responsible way… trying to direct the scarce resources available towards the priorities we have established.”
Earlier in the week, Assembly President Gerardo González called for Carrillo's resignation, threatening to hold up progress on the tax reform bill until he does so and complaining that the minister has cut social spending too deeply.
Workers from the legislative buildings filled the seats of the committee's small conference room and added to the week's drama by periodically heckling, hissing and shouting down the minister as he spoke with the press following his presentation. They also distributed a manifesto demanding better working conditions.
Workers and legislators have been asking for new buildings, complaining the current ones are falling apart and putting their health at risk. Carrillo has said new legislative buildings are not a priority.
He restated this unpopular position at the event, emphasizing that it was not his job to define the government's priorities – a job he said belongs to the President – but rather to see that those priorities are financed. This did not seem to deflect the ire directed at Carrillo, however; he was nearly assaulted by the boisterous crowd as he attempted to leave the conference room.
See today's print or pdf edition of The Tico Times for more about the budget and developments in the assembly..
Rita Marley to Perform
Concert in San José
Rita Marley, reggae diva and the widow of legendary singer Bob Marley, is scheduled to perform a concert Saturday at 6 p.m. on the boulevard in front of the National Museum in San José.
The concert, which is a part of the Flowers of the African Diaspora Festival – a month-long celebration of art, music, cuisine and discussions that showcase African heritage – will also feature other Costa Rican and international artists including Marfil, Sasha Campbell and Cantoamérica.
Marley was originally a member of The Soulettes and later a member of I-Three, the female back-up singers of Bob Marley and the Wailers. She is also the founder of the Rita Marley Foundation, a non-governmental organization that works “toward the alleviation of poverty in the peoples of the developing and less developed countries,” according to the Foundation's Web site.
The concert will follow the inauguration of a new exhibit at the National Museum, featuring African art and traditional African clothing that will be on display Sept. 3-25 in the temporary exhibits section of the museum.
In addition to music, concertgoers will also get a chance to sample traditional Afro-Costa Rican cuisine from the Caribbean port city of Limón.
Entrance to the art exhibition is free and open to the public; tickets for the concert are ¢1,500.
Study: Consumer
Confidence Down
By Rebecca Kimitch
Tico Times Staff
rkimitch@ticotimes.net
Costa Ricans are feeling glum about the economy. Consumer confidence is down, which means improvement may not be on the horizon for the country's economy, according to the most recent consumer confidence survey released yesterday by the University of Costa Rica's School of Statistics.
On a scale of 1 to 100, consumer confidence in August rated 34.2, down from 39.2 in March. While the index has been lower – it reached 33.1 in September 2004 – it has decreased significantly from a peak of 44.5 in September 2002, when the quarterly survey was first taken, explained Johnny Madrigal, a professor of statistics and the survey's lead author.
Pessimistic consumers, reflected in the low confidence rating, will likely bring about reduced consumer spending in the coming months. The index is an indicator of future economic activity. It predicts what will be in store for the Costa Rican economy in the near future, Madrigal said.
The professor blamed uncertainty regarding the future of the government's Permanent Fiscal Reform Package and the Central American Free-Trade Agreement (CAFTA), as well as high oil prices and inflation in general, for the pessimistic outlook of consumers.
“People do not see a clearly defined plan of development from this administration,” he said. “They distrust the economic policies.”
Furthermore, the number of people who believe it is a bad time to buy a car or house has also increased. Nearly 70% believe it is a bad time to buy a car, while 60% believe this about buying a house.
Tough economic times have burned a hole in people's pockets, reducing their discretional (disposable) income for goods that aren't basic necessities.
When people perceive a loss in discretional buying power it doesn't hurt large manufacturers, but rather the service sector, Madrigal said.
Consumer confidence is in tune with negative outlooks expressed last month by the business sector and economic experts. However, according to data from the Central Bank, actual consumer spending is increasing despite the tough economic times.
Growth in consumer spending at times of decreased purchasing power means Costa Ricans are increasingly turning to credit to finance purchases. When this behavior continues it could become unsustainable, bringing dangerous consequences for consumers, he warned.
The poll was conducted Aug. 3-11 in 700 homes around Costa Rica and has a margin of error 3.5%.
Former President's
Appeal Rejected
The Constitutional Chamber of the Supreme Court (Sala IV) has rejected a writ of habeas corpus – a demand for proof to justify a detention – from former President Miguel Angel Rodríguez, who alleges his detention for alleged corruption is illegal.
A Judicial Branch spokesperson yesterday said magistrates rejected the writ, presented Aug. 5 by Rodríguez's lawyer, on Wednesday.
The lawyers of the former President (1998-2002), who remains under house arrest, said his arrest in October 2004 was illegal, because he was still Secretary General of the Organization of American States (OEA) at the time of his arrest and therefore still enjoyed political immunity.
However, the magistrates' ruling stated: “Miguel Angel Rodríguez never had any immunity before the Costa Rican government for crimes allegedly committed in the country and before holding the position of Secretary General,” according to a statement from the Judicial Branch.
On July 12, a San José tribunal confirmed the former President would stay under house arrest at his home in the western suburb of Escazú, where he has been since March 15. They also rejected a petition to send him back to jail.
Rodríguez's house arrest expires Oct. 14, nearly a year since he was arrested upon his return to Costa Rica from the United States.
Rodríguez is accused of having received illegal payments including funds from the global telecommunications company Alcatel.
After five months of preventive prison, Rodríguez paid a $530,000 bail to be placed under house arrest.
-ACAN-EFE
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