Costa Rica’s membership in the OECD strengthens productive sustainability based on people, planet and prosperity
- President of Costa Rica Carlos alvarado signed the law approving Costa Rica OECD Accession Agreement and OECD Convention.
- This signature indicates Costa Rica imminent entry as the 38th member of the group which represents 80% of the world’s gross domestic product.
SAN JOSE from Costa Rica, May 24, 2021 / PRNewswire / – President of Costa Rica Carlos alvarado signed a law passed by Congress last Friday that recognizes Costa Rica OECD Accession Agreement and OECD Convention.
It is a key step for the country’s integration as the 38th member of the Organization for Economic Co-operation and Development (OECD) founded in 1961 and, in May 2020, guest Costa Rica to join the group.
Although a few additional steps are required to become an official member, Costa Rica celebrates the presidential signing as the culmination of a series of assessments carried out by 22 OECD committees. With its members, Costa Rica will be part of a group that will conglomerate 80% of the world’s gross domestic product (GDP) and 60% of international trade.
One of the sectors that is undoubtedly benefiting from this is foreign direct investment (FDI), an effort led by the Costa Rican Investment Promotion Agency – CINDE. According to CINDE, this membership will strengthen and benefit the 3Ps of the country’s value proposition: people, planet and prosperity.
People. Why businesses continue to grow and invest in Costa Rica? Among the many reasons, Costa Rica human talent leads the answer. Not by chance, the World Economic Forum ranked Costa Rica number one in human capital in Latin America, as well as in the digital skills of its population.
Costa Rican DNA is highly valued in the labor market, a result of the efforts of the country’s education system, which has been thoroughly analyzed by the OECD.
the OECD Reviews of National Policies for Education: Education in Costa Rica, stressed that education has been “an engine of the country’s development and has played a crucial role in building one of the most stable democracies, the most skilled labor markets and the lowest levels of well-being. highest in the country. Latin America. “
The review considers that Costa Rica is at a turning point in its promotion of development, so its membership in the OECD will reinforce a key objective for the country: to educate more Costa Rican human talents according to the needs of the knowledge economy.
Thanks to this, the country can continue to generate increasingly knowledge-intensive processes, as it did in the service sector, in which Costa Rica exports twice the average of OECD member countries. .
Planet. Costa Rica is renowned not only for being one of the oldest democracies Latin America, but also for its beaches, flora and fauna, because it is home to 6% of the world’s biodiversity.
Membership of the OECD will strengthen the country’s goal of sustainability. Costa Rica aims to become a carbon neutral nation by 2050, and to date 99% of its electricity production comes from renewable energies: water, wind, geothermal, biomass and solar energy.
Sustainability is one of the key principles of the OECD, which asserts that the idea is “to use economic development to promote a more just society while respecting ecosystems and natural resources”.
Costa Rica agrees that these standards should also be reflected in investments with a real purpose. According to the CEO of CINDE, Jorge Sequeira, “Costa Rica believes in FDI that can grow efficiently, providing investors with the ideal conditions for sustainable growth, thereby adding value to businesses, citizens and the planet. “
Prosperity. Costa Rica seeks to further improve public-private enterprises, public policies and the business climate to strengthen its integration into the knowledge economy and global supply chains. Thanks to the evaluation committees, the country’s rule of law has been measured; the review showed that companies investing in Costa Rica will have both legal certainty and institutionality on their side.
The country’s free trade area regime was also studied, an instrument that provides highly competitive incentives for investment.
The OECD has ratified that the foreign investment incentive system fully meets applicable international standards and criteria for international oversight and transparency.
“The invitation from the OECD to Costa Rica preserves the strength of the FDI free trade area regime and projects its already internationally recognized seal of excellence, so that all investors can be sure that by investing in Costa Rica, the incentives granted under these standards are fully in line with best practices and highest international requirements, ”explained the CEO of CINDE.
During its 60 years of existence, the OECD has participated in almost every policy area through its standards, which are based on reliable evidence, statistics and reviews. With this new step, Costa Rica will adhere to these good practices, becoming the fourth Latin American country to join this prestigious organization.