CAFTA and Costa Rica October 1, 2007
Posted by admin in : Investing , trackbackThis past weekend, over 100,000 Costa Ricans marched in San Jose, to oppose ratification of CAFTA in an upcoming October 7, 2007 referendum vote. That is the equivalent of 7.5 million Americans marching in Washington D.C., the last antiwar march in Washington D.C. drew only 20,000 marchers, so the numbers in San Jose were incredibly large. Yet, CAFTA appears to enjoy a slim majority of support, in the latest polling of Costa Rican’s.
What is at stake in the upcoming vote, as I have written before, is nothing less than the future of Costa Rica. On October 7, 2007, Costa Rican’s will decide between, maintaining a strong middle class, or turning the country over to American corporations.
Why should you, someone who is interested in living or retiring in Costa Rica, be interested in the outcome of the vote? Because it is in your best interest, both financially and socially, that Costa Rica continue to have a strong middle class and diversified economy.
Costa Rica is unique in Central America, most other countries in the region have either a small, or non-existent middle class. The wonders of a middle class, can not be under estimated, and any action that may put it at risk should be avoided.
A strong middle class helps insure democratic government. Provides opportunities for upward mobility. Reduces crime. Creates culture and art. Helps to avert civil wars and revolutions. Reduces poverty. Protects the environment.
Costa Rica has suffered in recent years, from American land speculators, that has had a negative effect on Costa Rica’s environment and society. With the decline in the U.S. Housing Market, currently underway, the pressure on Costa Rica’s environment and society will begin to diminish. Costa Rica will be able to recover. However, if CAFTA passes, then the future for Costa Rica will not be so clear.
Past experience, with NAFTA, suggests that neither Costa Rica’s nor the U.S. middle class, will benefit from CAFTA ratification. Only the C.E.O.’s in both countries will be the winners. Real incomes, and the actual sizes, of the middle classes will decline.
This will have a negative effect, on not only your investment in Costa Rica, but also your quality of life. With the passage of CAFTA, Costa Rica risks a drift down to the economic and social level of Nicaragua, El Salvador, and Honduras.
Costa Rica risks losing, what has made it unique in Central America, and attractive to North Americans.
Investing
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