Costa Rica | Caribbean | Intel | San Jose | foreign banks
Business In Paradise
by
Chris Warren, Charles L. Leary, Vaughn J. Perret, and Bobby McGillCarlson sees Tricom in a unique position to capitalize on the
growing economic openness of
Caribbean and Latin American
countries. That optimism applies to his country as well. "In this
day and age, we aren't just an inward looking Caribbean island
nation," Carlson says. "We are very much into the modern age."
SILICON SOUTH
From coffee to platinum microchips
When
Intel Corporation was in the market for a new plant in Latin
America, it considered four countries -
Mexico,
Brazil,
Chile, and
Costa Rica. It was
Costa Rica that won the day. Why? Intel
executive Danilo Arias cites the abundance of technical and
engineering talent concentrated there, and the country's stable
economy, government, and legal system. Now the plant employs 2,100
people, more than 98 percent of them "Ticos," as Costa Ricans are
called in Central America.
Intel's story in Costa Rica points to the reasons why Fortune
magazine has listed
San Jose among the top five Latin American
cities for business, and why the likes of Abbott Laboratories and
Procter & Gamble have joined the crowd by opening substantial
new manufacturing and back-office facilities. Costa Rica's
advantages range from the basic - 93 percent adult literacy and a
low crime rate - to more specialized, such as San Jose's
inexpensive supply of geothermal and hydroelectric power and its
fiber-optic telecom network. The government wins kudos for its
support of foreign investment and its emphasis on clean water and
education. And an influx of foreign banks, including Citibank and
Bank of Nova Scotia, has put more capital on the table for local
business growth.
And it all adds up to economic growth. The Costa Rican Chamber of
Exporters reports that foreign investment in the industrial and
manufacturing sector has grown from 30 percent to 54 percent over
the past decade. In dollar terms, while the country received $162
million in foreign investment in 1990, by 1999 that figure had
reached a tidy $600 million.
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