WHY COSTA RICA?
More than just its focus on sustainability and green ethos, Costa Rica's people are the key reason why multinationals are here to stay.
Having no military has unquestionably contributed to Costa Rica's success as the money was instead invested in developing one of the strengths of Costa Rica, its people and talent, which have attracted many of the companies that have fueled the economy in the last 10-15 years. There is also a sense of equality, and this has helped create a large middle class with access to free education up to high school as well as public universities, which are regarded among the best in the country. Costa Rica traditionally has been in competition for FDI with its closest neighbors; however, if we look at the sectors that have been an engine for growth, particularly those operating on the free trade zone regime, then competition has always been within a larger territory. For example, 10-15 years ago, Costa Rica was competing with Panama, El Salvador and other Latin American countries for companies looking to set up shared service centers; however, in the last five years Costa Rica has been competing not only against other Latin American countries but also against low-cost locations in the US and Europe.
Philip Morris is in the middle of a transformation journey to build our future on smoke-free products. The mindset of Costa Rica is very much about sustainability and is proud of it. It is an example to the world in many areas such as renewable energy, health, education, and the way it takes care of the environment. That by itself is a great base to bring these new alternatives and one of the things we aspire to is for Costa Rica to be one of the first smoke-free societies. Choosing Costa Rica as our headquarters for the region was institutional because many multinationals are based here to cover Central America and the Caribbean, depending on the setup. Institutions are quite strong relative to the Latin American neighborhood, which brings confidence, stability, and the rule of law. This is clear compared to other countries and even though on a cost basis it is not the cheapest place in Central America the other things are stronger in the overall equation.
We have been here since 1920. As the Coca-Cola Company produces locally in every country through franchise bottlers, that makes us one of the most important partners in any country in terms of employment. We are embedded and invested in Costa Rica, having been here almost a century. Costa Rica is our headquarter hub for our Latin Center region from which we manage 31 countries, including the Caribbean, Central America, and the northern part of South America. Costa Rica, also offer us highly skilled bilingual talent. Furthermore, our concentration plant, from where we export to the Caribbean, Central America, and other countries, is also proudly located in Costa Rica since 1962. From a large import/export perspective, we focus on local production. We make more of an impact to the local economy. We try to procure all our core ingredients locally; hence, our impact for Costa Rica is truly felt here. Our broader business and the entire value chain starts with growers, who grow what we procure, such as sugar cane.
In terms of human capital in Costa Rica, we have attracted global attention for how competent and capable our employees are. International foreign investors and companies are setting up in the country and entering new industries for that reason. People do have to be properly trained; we have a great base from where we start, with capable people who are intelligent and well educated. We direct some employees to our interesting training programs that we want certain personnel to complete. Also, a large part of the training is done on the job. We make sure our employees get the basics right through our formal course and are also beside them during their work. We work strongly on objectives, and have provided several programs that will allow our employees to develop strongly toward those objectives. Additionally, we have formed partnerships with several universities in Costa Rica. We have a program called Unilever en tu Clase, where top leaders of the organizations go to universities and work with students to make cases that are real-world examples.
Deloitte has been present for 50 years in the Costa Rican market. Deloitte was the first services consultancy company in the country. We also manage the Central America region from here with our 500 collaborators. In 2016, Costa Rica captured close to 45% of the investments that were made in the entire region related to shared services centers. Costa Rica is an already consolidated services provider in sectors such as traditional exporting for manufacturing, agricultural, tourism, and others. The secret here is the people, the human resources. The truth is that as a country Costa Rica has been investing almost 8% of its GDP on education. We do not have an army. Costa Rica is a stable country, with no major political upheavals. These are all what we offer, besides the commitment with the environmental conservation. Costa Rica being 28th in the Social Progress Index is an objective indicator, and it is meritorious that with our GDP we were rated in the Social Progress Index in a level well above our respective GDP.
Acountry's success in dealing with the digital revolution comes down to having its people prepared. Costa Rica thus has a great opportunity to be successful in this digital transformation. Cisco has been in the Costa Rica for 20 years now and it has two characteristics that are particularly important for Cisco. The first is human capital, where Costa Rica has an advantage over other countries in Central America because of its high level of education. Cisco is able to find excellent support services here. From Costa Rica, Cisco offers services to the local, regional, and worldwide markets. We have around 1,000 people working for us in Costa Rica and human capital is the most important reason why Cisco is present in the country. We have a call center in Costa Rica and this is integrated with our worldwide system of services. We can provide services, both technical and highly advanced, from Costa Rica to any country in the world that needs our support. The second reason why Costa Rica is an attractive market for us is because the country has a strong economy and political system.
Costa Rica is strategic. It is a key country for Panasonic due to its environmental policies and nature conservation activity, since these are precisely part of our philosophy. The vision of Panasonic is to be the first green company in the world in 2018, the year of our 100th anniversary. We have products for clean power generation, such as the solar panels we have been selling for the last five years in the region and mainly in Costa Rica, where we have been growing and focusing on this market. We have been a successful enterprise for 100 years and have been in Costa Rica for 50. For the Central America region, we not only commercialize solar panels, but also commercialize an integral solution and deliver turnkey projects. In addition, we have energy accumulators to gather renewable energy. It would not make sense if we have clean energy but no efficient products and Costa Rica highly values such efficient products. Also, Panasonic is the largest company in Latin America in the solar energy market, particularly with solar roof projects.
WHY COSTA RICA?
TABLE OF CONTENTS
Interview
Yamileth Astorga, President, Costa Rican Institute of Aqueducts and Sewers (AyA)
TBY talks to Yamileth Astorga, President of the Costa Rican Institute of Aqueducts and Sewers (AyA), on the challenges of providing high-quality potable water and working to prevent a water deficit.
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Luis Carlos Delgado Murillo, President, National Supervisory Council for the Financial System (CONASSIF)
TBY talks to Luis Carlos Delgado Murillo, President of the National Supervisory Council for the Financial System (CONASSIF), on the importance of collaboration between the private and public sectors and facilitating new business.
read articleInterview
Minor Rodríguez, General Manager, Coopesa
TBY talks to Minor Rodríguez, General Manager of Coopesa, on being the only self-managing cooperative in the world dedicated to heavy aircraft, the importance of communication, and maintaining a flat and democratic governance structure.
read articleReview
Reaching the Sky
The construction sector in Costa Rica has recovered significantly from a slump in 2016. However, the country has much to accomplish, especially in terms of ensuring new residential projects are inclusive for all income levels and fixing the infrastructure problem.
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Dr. Fernando Llorca Castro, Executive President, Caja Costarricense del Seguro Social
TBY talks to Dr. Fernando Llorca Castro, Executive President of Caja Costarricense del Seguro Social, on the importance of institutional longevity, joining the OECD, and bringing standardized services to every part of the country.
read articleFocus: Education Training
Get the Ball Rolling
One of the main factors that attracts investors to Costa Rica has been its skilled human capital. For this purpose, the government and academia are collaborating to improve programs and better align them to the requirements of several industries.
read articleReview: Education
Class Is In Session
High levels of public investment have made Costa Rica's education system one of the strongest in Latin America, and government leaders are working to improve teacher quality and ensure that the poorest Costa Ricans have access to quality secondary and tertiary schools.
read articleInterview
Marco Robert, General Manager, IMC Interamericana Medios de Comunicación
TBY talks to Marco Robert, General Manager of IMC Interamericana Medios de Comunicación, on the importance of articulating a clear philosophy, the industry's biggest weaknesses, and the ideal advertising setup.
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