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A NEW DAY…I think!
By John Holtz*

We congratulate, with great pride, our new president and the grace in which Laura Chinchilla received Costa Rica´s coveted red, white and blue presidential sash. She is our first female president and only the third woman to be elected to that position in Central America.

Let there be no mistake about it. She is 100% qualified for her job and paid her dues… two times over.

The Oscar Arias farewell speech was a disappointment for many who heard or who read it coming from someone who has, in fact, accomplished so much in life and did not need to pontificate himself. We already know.

The good-bye speech I am referring to was on May 1, 2010 and was pretty much: ¨I am Dr. Oscar Arias, Harvard trained, Nobel Laureate, two times president of Costa Rica and you are not and you should be grateful for all that I have done for you in the last four years.¨ (A Chevy Chase thing for you Saturday Night Live fans with a long memory.)

Days later, standing tall, the main photo on the front page of my morning La Nación was then President, Arias standing by his plaque inaugurating the all new ¨Casa Presidencial¨ which has not yet been built, and we do not yet own the land to build it on and there is no design and there is no money to complete any of the aforementioned, however, ¨…it is mine to inaugurate.¨

Don Oscar also clearly reminded everyone that the table is now set for President, Chinchilla and she only needs to continue with his governance to succeed. (A sure set up for her to fail.)

Damn, if after almost 8 years, including the Pacheco administration, former President Arias did manage to wrestle and to pass the CAFTA, the free trade agreement with the US, right in the middle of the mother of all recessions. (Good work, bad timing!)

The Arias administration did build roads, and in truth, using lots of borrowings, we pretty much dodged the recession bullet here at home. (Kudos don Oscar! I mean it.)

But after what seems an eternity, the Great Recession was finally fading and just when the US economy started to rebound, that same Arias administration sat back and allowed the local currency to jump so high in value that even mangos could not be exported at a competitive price?

His administration also focused on the poor, unless you ask the poor who seem to think otherwise.

Perhaps the most disturbing statement from don Oscar was that, ¨…for the first time in history we (Costa Rica) have the chance to become fully developed.¨ (Does that raise the bar for our new president high enough?)

Neither then Vice President, Chinchilla nor don Oscar could get a crummy traffic reform law passed except with verbiage that only Stephen Hawking could understand.

And while traffic cops are taking bribes, the ombudsmen department, who promised to investigate all abuses, has one employed person with one phone number but no phone. (Maybe when they told us of their fervent effort for a ¨clean¨ implementation of the new law, their fingers were crossed? But that is not a good sign for country planning to enter the developed world is it?)

According to him, the China recognition goes down as one of Oscar Arias´ proudest achievements while I see it as a national shame, a terrible move which within five to eight years will be as unpopular as ¨Gringos¨ have been and perhaps are today.

Costa Rica is a country who prides itself with a culturally entrenched democracy, a country offering freedom of speech, the right to demonstrate and private enterprise for all not to mention trying to be environmentally friendly.

Although there are 21 police agencies, we do not have a military, I do sleep at night and certainly there is no capital punishment in Costa Rica. In fact spending more than 24 hours in the slammer for anything is really hard to do and that unto itself is a problem.

With short term goals, check book diplomacy the Arias administration, while at the same time assuring Taipei, Taiwan just days before all those rumors floating around were not true, Costa Rica cut ties with that country on June 7, 2007 in favor of its new best friend, China.

When pressed for an answer, our normally eloquent former president who can speak for long periods of time simply said, ¨Taiwan was too cheap.¨ What else could he say? We have nothing in common with China except money. (At least he's not a hypocrite about this thing.)

So important was the Chinese check book that the Arias administration cancelled the visa of the Dali Lama at the ¨suggestion¨ of China. Not good with the 6.7 billion Buddhists around the world and I doubt if Richard Gere will ever build a house here. (That's like saying, ¨Pope, stay home.¨)

And we received, as a reward, a then most favorable $300 million loan. (In today´s market 2% over 12 years does not sound so good. We could do better with Goldman Sachs. Just ask Greece!)

Then 200 shinny white police cars showed up along with a couple of Chinese mechanics and Chinese auto parts which suggests a recall coming (as of this writing 20% are out or order), and finally the building of an $83 million stadium designed by the Chinese, built with Chinese products except gravel, sand and concrete and entirely constructed with Chinese labor who work around the clock. (To hell with CR labor law. This is big bucks we´re talking here!)

Where is the Tico in this picture? Permits? Inspections? How did these guys get into Costa Rica without... Never mind, I got it.

If the African experience, so well chronicled by a series of The New York Times as one source goes, what´s in it for Costa Rica can be an illusion, much like the stadium. China will build these infrastructures, China will purchase the needed manufactured goods from itself to build these infrastructures, China will manage these infrastructures and Costa Rica gets to export primary commodities that it already exports now.

I want sustainable economic opportunities for residents of Costa Rica! Is that asking too much?

According to the Times, in Zimbabwe two Chinese brothers started importing T-shirts at 10 cents each and within one year put out of work an entire local factory and its 120 employees.

All and all, the Arias administration has done good things during difficult times. However, to the contrary of his speech, don Oscar has left plenty of challenges for our new president ranging from reigniting foreign investment, creating jobs, bringing back tourism, making life safe again, clean up corruption and most of all finding ways to put money into the empty government coffer.

Laura Chinchilla will have to expand the ¨already set table¨ and not simply be an Arias program caretaker so to speak. As our leader and president she will be faced with four difficult years. In the year 2014 she will be measured by what her administration accomplishes and not by what she inherited in 2010, real or imagined.

*John Holtz is the Executive Director of theCenter for the Studies of Modern Management
www.modernmanagement.org and can be reached at:  [email protected].







 
 
 
 
 

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