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FTAA: Opportunity or Threat?
By
Gabriel Leandro, MBA
Economist
Even though there are many who
resist the tendency towards integration and globalization
of the economies, regardless of whether they are
in favour or against, this process seems to be irreversible
especially in the case of Costa Rican economy. In
other words, this country is on a one way road where
there is no choice to turn aside still less to turn
back.
This situation can be assimilated
as a threat because many productive sectors will
be seriously affected and they will not be able
to implement many of the policies that have been
adopted to appeal investments and to encourage production.
For example, tariff reduction that favours the introduction
of new products leading to competition among foreign
and national products and also the advantages that
enterprises settled in free zones enjoy, as well
as many other producers that may be affected by
the new conditions.
Bu this situation may represent
an opportunity, an opportunity to be competitive
and to modify the way we think and the way we behave.
We need to work on many aspects; some of the main
are described below:
-
To take full
advantage of the existent competitive and comparative
qualities of this country and to develop new ones.
For this reason it is essential to invest on education
and training of Costa Rican population as well
as on investigation and development, etc. It is
also important to diversify the export offers
and to differentiate the export products.
-
Innovation
represents one of the main factors of competitiveness.
Experts on that matter like Michael Porter assure
so. It is necessary not only to innovate what
is it produced but also how it is produced.
-
Added value
and small sized enterprises. Productive chaining
or in other words an increase in the added value
of the export products is essential to reach a
greater level of development in national economy.
Alliances among national enterprises as well as
subcontracting can also be encouraged and is precisely
at this moment when small and medium sized enterprises
must be taken into account.
-
The role of
the state. The role of the state must change its
traditional approach and to adopt a new one whose
attention must be guide to two aspects: first,
to assure honesty and efficiency of customs-houses,
system of taxation, financial system, etc. and
second, to provide infrastructure and basic services
such as airports, highways, electrical energy,
among many other services to promote development.
-
To accept
the challenge. Finally the country must accept
the challenge of competitiveness. This situation
involves the whole population, the entire small
and medium sized enterprises as well as the public
sector.
We
should be aware that all of us are involve
in a trend, that all of us constitute
Costa Rica and for that reason it is our
responsibility. If the current and future
events are opportunities or threats depends
on us. I prefer to perceive them as opportunities.
What do you prefer?
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