by Rod Hughes

(The following is a news analysis and reflects the opinion of the writer but not necessarily of American-European or any of its brokers.)

If anyone needs the divine intervention of the saint of lost causes, it is Jorge Woodbridge. He has been named to the cabinet-level post of a ministry so new that, when The Tico Times reported about it recently, it did not have a name yet. But its job is to reduce bureaucracy to make the country more business-friendly.

The new minister, formerly deputy minister of economy, will need at least a machete to cut through the red tape, if not a power saw. The patrician Woodridge, 61, has a lot of business savvy under his shock of white hair—he was president of the Chamber of Industry for years and comes from a family well-respected in the business community.

But he is up against a formidable foe: an entrenched bureaucracy that views any change as synonymous with an attempt to remove government workers of their cushy jobs. Streamlining the way Costa Rica treats business by negotiation will prove a challenge even for Woodbridge’s undoubted skills.

The new post grew out of a growing alarm in the Arias Administration that this country is renouned in the world business community as difficult and polls on the subject have shown the country slipping farther behind other countries in competitiveness indices. A recent World Bank survey showed Costa Rica a dismal 113th nation on a list classing ease of doing business. As Woodbridge points out, it takes an average of 77 days just to start up a company here.

But he feels that SETENTA, the environmental watchdog that clears impact studies, needs immediate attention. Businesses must wait money-losing months before a completed study passes through that understaffed and underfunded agency. He feels he can make it faster and easier while still doing a better job of zoning and environmental protection

He wants to cut in half the time it takes for construction permits and for business start up within six months, as well as simplify property registry, paying taxes and conducting international commerce. He cheerfully told The Tico Times business writer Peter Krupa, “I love challenges, so there’s no problem there.”

It is a pity that Woodbridge will only be working with the central government. Certainly, the nationalized banking system can use some help. Recently this reporter deposited a check in his Banco Nacional dollar account from an overseas investment institution–or tried to. Since the last deposit, the bank had changed it’s policy, charging the depositer a $30-100 commission for the “privilege” of placing his dollars in country. t
The transaction that once took fuve minutes consumed 40.

Even with a weak dollar, it is this reporter’s impression that bringing money into the country is a healthy thing for the local economy. But Banco Nacional’s board seems bent on penalizing this dastardly deed. As Woodbridge tries to move the country forward a step or two, the national banks slip back a step.