by Rod Hughes

Two young Costa Rican computer engineers have earned international recognition for devising a connection for the Internet Firefox with the musical site Last.fm. Jorge Villalobos and Jose Bolanos will travel to London next month to be shown around the installations of Last.fm. Their extension allows direct connection to the music site without passing through the home page by using a special bar on Firefox.

Traffic may be brisk–Last.fm serves 21 million fans in some 200 countries. News travels fast on the internet and yesterday 39,000 happy people from all over the world checked in using the new connection.
Water Company Urging 19% Rate Increase Immediately

Costa Rica’s national water and sewer company A y A, is urging that the utility rate authority ARESEP, grant the water providers a 19% rate increase to pay for higher operational costs and to extend water lines. The proposed rate increase would add to this years inflation rate despite the Central Bank’s efforts to hold the line or, at least, slow it down.

A y A assistant manager Guillermo Arce complainted that the rate watchdog agency has delayed long enough in granting the hike. "We continue to insist and are in permanent comunications (with Aresep,)" Arce told the daily La Nacion.

<em></em><em><strong>Price of Gasoline Rises Slightly</strong></em>

The price of gasoline will go up 5 colones per liter tomorrow as a Ministry of Finance tax hike goes into effect. The Ministry is allowed to make adjustments by decree four times per year, based on a tax for road maintenance. But the hike will be offset a little next week by a slight (1.5 colon) decrease authorized by the rate watchdog agency ARESEP

The price drop is due to further cuts in the international crude oil prices that, after skyrocketing the first half of the year, dropped back 21% between late July and early August. But ARESEP had to balance this with a 33 colon price of the U.S. dollar, hence a modest decrease instead of a perceptible one. For now, a liter of regular is 737 colons, up from 721.

<strong><em></em><em>"Padre Minor" Goes Back on the Air–Briefly</em></strong>

Radio seems to be in the blood of imprisoned priest Minor Calvo. The popular, charismatic Calvo, convicted of defrauding contributors to his now-defunct religious station Radio Maria, went on the air for exactly seven minutes before San Sebastian prison authorities cut him off. He used the public phone at the prison to communicate with the station Rado Centro to broadcast a 9 a.m. program he calls <em>"Jusus Vive" </em>(Jesus lives.

Prison authorities said Calvo had no permission to use the phone for such purposes. He called it "censorship" and appealed to Minister of Justice Laura Chinchilla. Although convicted of fraud in the uses to which he put contributions from faithful listeners, he was absolved of the charge of being an accomplice to the murder of radio journalist Parmenio Medina. The latter’s assassination shocked the country and sparked one of the most watched trials of the year.

Apparently Calvo did not ask permission of his archbishop, either. Asked about Padre Minor’s brief return to the airwaves, Msnr. Hugo Barrantes expressed surprise and confessed to being mystified by the priest’s motives. The prelate appeared somewhat peeved as well. Under canonical rules, in Padre Minor’s peculiar circumstances, he must ask permission to resume preaching.

<em>(Condensed from articles in today’s daily La Nacion.)</em>

by Rod Hughes

A news story in the English-language weekly, The Tico Times, predicted it two weeks ago–the free trade pact with Panama unanimously passed its first debate yesterday in the Legislative Assembly with a 41 to nothing score. Contrasted with the long CAFTA struggle, the deputies greased the measure right through and are expected to give it a final pass next week, turning into law.

In fact, the only criticism of the free trade treaty with Panama the newspaper could find was from impatient businessmen who thought the lawmakers were taking too long to pass it. Panama was not included in the Central American Free Trade Agreement (CAFTA) with the United States, the rest of Central American and the Dominican Republic, a Caribbean nation, because, technically, it is not considered a part of Central America. Only a cartographer could tell you why.

The pact was signed a year ago but lacked ratification by the legislative branch. “The treaty with Panama was long overdue,” Tomas Pozuelo of Jack’s Snacks told The Tico Times. His company, which has been selling chips and other nibblies to Panamanian customers for 30 years, complained that high tariffs for his exported products made it increasingly hard to compete in price, even though no one questioned the quality and tastiness of his Costa Rican-made snacks.

His difficulty was price–without that hated 15% import duty tacked on to his product, he expects sales to immediately pick up 20% in the first year. And Pozuelo is not alone, points out TT reporter Gillian Gillers–this country exports everything from furniture to medicine to Panaman’s 3.24 million potential customers. What the canal country lacks in sheer size of its market it makes up in easy access and bulky exports, such as food, seems right on Costa Rica’s doorstep compared with, for example, the European Union.

Not surprisingly, even a deputy like Elizabeth Fonseca, whose Citizen Action Party (PAC) fought a bitter battle against CAFTA, lauded the Panama pact as a “fair trade agreement.” She cited Panama’s size, population and per capita income as being more compatible with Costa Rica. “There aren’t the same asymmetries as with CAFTA,” she added. (Evidently one fear PAC lawmakers had was the sheer size of the U.S. economy and the perceived danger that this country would become “Miami South” culturally and economically. Now, with the U.S. economy facing tremendous stress, it may appear somewhat less formidable.)

by Rod Hughes

In a match so lackluster that the soccer experts at ESPN (which telecast it) called it “an international pity,” Alajuela tied the Islanders from Puerto Rico 1-1 Wednesday. ESPN, TV’s number one sports showcase, would obviously not have scheduled the regional Concacaf version of the Champion’s League if they had known that both sides would play like bush league.

Neither side is a pushover. Costa Rican clubs can turn out some strong, if inconsistent, performances and, although Puerto Rico is better known for turning out Major League Baseball stars than international soccer figures, the Islanders are not to be discounted. But if both ESPN and the fans jamming Alajuela’s Morera Soto Stadium were disappointed, they can be excused.

Even Alajuela’s normally dependable Windell Gabriels missed a penalty kick that could have salvaged the victory. But, at minute 28 in the first half, when Alajuela’s A. Fernandez hit the goal, spectators had every reason to expct that things would warm up eventually. But a corner kick by O. Telesford tied it in the second half. There was more messing about but we cannot bear to relate it.

Liberia Mia 2, Saprissa 1

A much more interesting match offered up a surprise in Costa Rica’s own First Division when Liberia Mia took the win out of the sails of last season champion Saprissa, 2-1. Either the big purple “S” is showing its usual power to blow it and still come out smelling like a rose at season’s end or the open checkbook policy of Liberia owner Mario Sotela is beginning to pay off.

Jacques Remy opened the festivities for Liberia with a penalty goal at minute 22. Alejandro Alpizar finally tied it up early in the second half. Then William Sunsing (worth every penny Sotela paid for him) presented the Guanacaste club’s home fans with the victory with but 10 minutes left to play.

Heredia 1, Perez Zeledon 0

Heredia, having an awful season so far, finally awoke, stretched, and won one for a change. This was a refreshing change for the home fans at Eladio Rosebal Cordero Stadium whose club had lost three in a row. (Ever notice how some stadium names in Costa Rica are longer than the matches?)

The winning goal came at minute 79 by Jonathan McDonald, after an attacking Kenny Cunningham had fed the ball back to him. Their performance could not rescue fans from an otherwise boring evening.

by Rod Hughes

Police in Limon made 13 arrests in cracking a drug smuggling ring through the Moin docks, including a high official of Japdeva, the port authority, and two policemen. And to make matters worse, they were using government-subsidized diesel fuel to power their nefarious activities.

The diesel is exempted from tax because it is supposed to be used the the small fishing boats that ply the Caribbean under the Costa Rican flag. According to Judicial investigators, the band was led by Leonardo Casanova, who is vice president of the Association of Independent Fishermen in Limon. The gang was also well-connected to the police and received warning from several sources whenever authorities came sniffing around.

The narcotics from Colombia were transported north to the fishing grounds of Tortuguero where they were loaded aboard the gang’s boats for the trip south again to Limon where they were transshipped in containers by freighter to the United States. One of the gang was specifically charged with telling the “customers” when the cocaine was on its way and in what containers.

This use of family-owned small fishing boats to transport the drugs into the Caribbean port easily avoided detection. Limon and, especially, Aleman dock, is not well controlled. Just as the lack of surveillance of incoming container cargos on U.S. docks worries officals of the U.S. Homeland Security, this country’s ports are also vulnerable. For some years, the local police and press have heard of movements of narcotics in the waters off Tortuguero and to many residents and many personnel of the media, it often appeared the the cops were obvious.

Obviously, that is not the case. In this case, the police operation that snagged this well-organized gang had to be handled carefully because of the smugglers’ infiltration into police ranks. And the gathering of evidence that will stand court scrutiny is often time-consuming. Even more difficult for police is the fact that more than a million containers bound for throughout the world pass through the Aleman dock without inspection, according to the morning daily La Nacion.

The source of the subsidized fuel for the operation, police say, was none other than the president of the fishing association, Olga Jimenez who was also detained. But what makes detection so difficult is than many bona fide fishing boats frequent the Tortuguero fishing grounds off Barra del Colorado, including such famous sportfishing resorts as the perfectly legitimate Barra del Colorado Lodge.

rong>by Rod Hughes</strong>

Trying to weed out corrupt cops is difficult in any country but particularly so in Costa Rica. Not only is proof hard to come by but the country’s draconian labor laws make firing difficult. Take, for example, the cases of 13 cops in jail awaiting trial on charges ranging from being accomplices in two murders to aiding narcotics vendors in their business. They still received their regular salaries as they sit in their cells.

This startling situation exists because the Ministry of Public Security cannot fire them until they are convicted of a crime. Originally, the law was framed to prevent arbitrary firings on the basis of personal caprice or even to open posts for political appointees, as was common practice a few decades ago. But as the law is written, a mere accusation is now insufficient.

Currently, some 1,500 cases ranging from simple absenteeism to outright corruption are pending. Minister of Public Security Janina del Vecchio is urging bureaucratic station chiefs to deal with the minor cases to allow the police to get on with their jobs and not wait to hand the hot potato upstairs to resolve. So far this year, 55 cops have been fired, 11 for drug use, nine for corruption but most for simply not coming to work. Absenteeism is common and 164 have received 30 days’ suspension for dealing with personal business instead of their duties.

Residents or tourists who suspect that a police person has exceeded his/her authority, asks for or tries to extort a bribe or is observed in any unprofessional act may present a formal complaint by dialing 176, by using the Ministry of Security Web page or by presenting a complaint directly to the ministry’s Departamento Disciplinario Legal at the central headquarters.

by Rod Hughes

Despite a severe balance of payments deficit caused by high petroleum prices and its resulting effect on the internation trade marketplace, the Arias Administration is sitting again on a budget surplus as it did at the end of last year. And the Arias Administration is planning to include in the 2008 budget more spending on social programs, possibly to forestall criticism by socialist opposition parties.

The English-language weekly The Tico Times last week reported on the surplus, attributed to more efficient tax collecting by the Ministry of Finance. The Citizen Action Party (PAC) has already severely taken the administration to task for not doing more for the poor, probably laying the groundwork to make this an issue in the 2010 election.

With appropriate fanfare, the Arias Administration presented their intent to increase social program spending by 45.2% in a TV special carried Sunday on all national channels. Actual figures were not revealed, noted the daily paper La Nacion. Included in the package will be increases in education, health, pensions and in direct aid for poor families. But agriculture, science and technology and public security will not be neglected.

This year, the budget presented a cautious increase of 24% over 2007, including hikes for hospital services, housing, family aid, pensions, etc. But Minister of Education Leonardo Garnier says that next year’s budget will increase expenditures in his field to 6.3% of the gross internal product. (Some years ago, the Legislative Assembly voted into law a minimum percentage of the national product spent on education, a law honored more in intent than in actual practice.) Garnier said that some of the money will go to infrastructure. (Many schools are in lamentable condition, despite the country’s pride in its educational system.)

Meanwhile, the Education Ministry is not standing still for this year. The ministry announced a 9.3% increase in base salaries for teachers with a Bachelor’s degree from university and 15.6% for those with a Licenciatura in education, a postgraduate degree just short of a Master’s. However, teachers’ unions must approve the salary increases and those unions have shown a tendency to not only try to pressure further increases but to squabble among themselves.

by Rod Hughes

Despite gloom and doom reports about balance of trade this year, due to the shrinkage in the U.S. economy, Costa Rican private enterprise has provided a bright light at the end of the tunnel. The country’s exporters are doing more business with Asian, Central American and Caribbean markets.

The United States is still Costa Rica’s top customer, but the gap is narrowing. reports the daily paper La Nacion. That country passed from consuming 47% of Costa Rican exports in 2003 to 35% last year and may shrink even more, although the U.S. is still a major consumer of Costa Rican gourmet coffee, food products like pineapple and medical supplies. Of the more than $9.3 billion of this country’s export earnings last year, the United states accounted for $3.2 billion.

Despite a troubled economy, surprisingly exports to the U.S. rose slightly during the first half of this year, but nothing like the healthy 221% for China. (Due to its head start, the U.S. still holds the top spot in overall volume.) But even Central America and the Caribbean have raised imports from this country 76% between 2003 and the end of last year. As Minister of Foreign Trade Marco Vinicio Ruiz told La Nacion, “It’s good to depend less on the United States–without losing our market share there.”

by Rod Hughes

So you think you have cash flow problems? The state-owned power monopoly, ICE, is running out of ready cash to buy diesel to power its generators. With electricity rates at an all-time high for this country, ICE may have to go back to rationing.

Nor is ICE getting any sympathy from the government rate control watchdog agency, Aresep who are cold to milking the consumer for more cash. Tough, take out a loan, is what Aresep says now, although it is hard to say no to a national sacred cow like ICE. Once upon a time, the power company briefly led the region in the development of alternative energy by tapping the flanks of Miravalles Volcano for thermal power through superheated steam.

But ICE took the short-term path by installing cheaper diesel generators instead of using wind and fire. A financial study of the company now says, “The situation is unsustainable and puts at risk the supply of electrical service.” Now, it appears that the consumer may pay for this short-sighted approach.

Last year the delicacy of ICE’s position resulted in a series of blackouts due to the breakdown of generators. This year, the study shows that the company may have a shortfall in paying for some 50 billion colones in diesel costs. (Figure a little under 500 colones per dollar.) Even in the rainy season (and this year has not lacked rain) hydroelectric dams and volcanic steam cannot produce enough power for the growing electrical needs of the country, according to a study made at exactly the time that diesel was doubling in price.

Unsurprisingly, ICE has taken the easy way out, asking a 15% rate hike over a period of October to May. Aresep is not too keen on this approach. Meanwhile the study showed that fossil fuel consumes 36% of ICE’s budget while producing only 14% of the nation’s power. This inefficiency is not what a utility rate agency likes to hear.

Meanwhile, the market for small gasoline generators for homes and businesses may grow brisk, indeed.

by Rod Hughes

It may be early, since what is called by the First Division the “opening tournament” (the season is divided into two sections) but so far a few surprises have emerged. For example, Brujas from Escazu are front runners in Group A by three points over Saprissa, although Saprissa has played one match fewer. But the big Purple S has been so inconsistent of late that the gap of three points may widen. They may be defending champs, but for Saprissa it could be in one year and out the other.

Saprissa is followed by (of all people) Puntarenas, then Liberia, San Ramon and Carmelita. Meanwhile, in Group B, Alajuela leading is no surprise but guess who is second? University of Costa Rica, that’s who! That club struggled to keep its head above water all last season. They are followed by Perez Zeledon, San Carlos, Cartago and Heredia, the latter no longer a power to be reckoned with.

Yesterday’s matches produced a few gee-whizzers as well. For example, Cartago shackled Saprissa’s usually aggressive attack for a 1-1 tie and could have won it if referee Mario Arturo Barrantes had not developed a case of blindness in the case of Jervis Drummon’s obvious penalty against the hard-driving Oscar Granados of Cartago close in to the goal. Maybe Barrantes swallowed the pea in his whistle. Even Granados’ mother, watching from the stands, said it was a clear penalty, reported an Al Dia sportswriter. Cartago went ahead early on Leonard Madrigal’s goal and it took Alejandro Alpizar to save Saprissa from an embarrassing tie.

Meanwhile, Alajuela was having little trouble with San Ramon on the former’s home pitch, beating the visitors 2-0. Windel Gabriel and Argenis Fernandez scored in the second half but only the athletic blocking of San Ramon’s goalie, Neighel Drummond saved his side from a serious drubbing.

UCR tied with Puntarneas 0-0 in a constant gray drizzle that fitted the quality of the match. Perez Zeledon and San Carlos also went scoreless. Much more interesting match was played out in Liberia pitting that city’s club against a struggling Heredia and winding up a clear 2-1 victory for the home side. It could have been worse for Heredia with Liberia developing 12 or 15 clear opportunities. But two goal shots by Allan Aleman got through. But this happened after Solis had given the home boys a scare, making a goal on a penalty in the closing minute of the first half.

Rod Hughes

Intel Costa Rica, the electronics firm that is one of the country’s largest exporters, yesterday announced it was launching five new processors to boost sagging sales this year. The company, Costa Rica’s principal exporter of integrated circuits, earlier revealed that sales had dropped 5.6% during the first half of this year.

Produced at the company’s Heredia plant, the new products are three new server processors and two new ones for PCs. Karla Blanco, head of Intel’s Corporate Affairs department, revealed that sales slumped from somewhat over a billion dollars in the first half of 2007 to $947 million the first half of this year. She attributed the decline to &amp;amp;quot;normal behavior in the market.&amp;amp;quot;

She noted that the setback reflects the world economic situation but predicted an upturn in demand during the next few months, coinciding with the launching or the new products. &amp;amp;quot;We have solid products based on close relations with our customers who tell us what they want,&amp;amp;quot; she added. &amp;amp;quot;Many of our customers (Hewlett Packard and Dell, for example) are in China. If there’s a decline in demand from there, it lowers exports from here.

” Commentary: In an uncertain world business climate, it is natural that companies may postpone updating their equipment. But, contrasted with this, customers of business computers know they cannot ignore the need to upgrade lest they fall behind their competition. The electronics field is still moving at breakneck speed, as Intel Costa Rica’s new products exemplify.”