The World Bank approved a three-year, $258 million lending program in early September. The program includes $65 million in quick-disbursing funds to cover damages should Costa Rica be struck by a major natural disaster, $13 million for telecom reform, $80 million for secondary education and skills development, and $100 million for the Puntarenas integrated infrastructure development project.

The World Bank program will also help Costa Rica work with the Forest Carbon Partnership Facility (FCPC), which is designed to reduce greenhouse gas emissions by promoting incentives for emissions reduction.

Costa Rica is one of the first 14 participants in the FCPC, launched by the World Bank last year as part of global efforts to address climate change caused by deforestation. (See the World Bank’s press release for additional information.)

Meanwhile, the Chinese government is financing an ecological and recreational park in Jaco, also in the province of Puntarenas. This park, in conjunction with an expansion of the town’s main street, will help increase property values in the area, in addition to maintaining some of the natural beauty of the area as development continues.

The Jaco project is part of the Costa Rican government’s initiative to build new public parks and keep the country beautiful as it becomes more and more popular among foreign residents and investors.

Ease of operation, fiscal incentives, monetary and exchange facilities, excellent communications, reliable utilities, access to basic services, and a highly educated labor force provide a firm foundation for the dynamic development of companies set up under the Free Zone system.

Some of the advantages of operating in the Free Zones of Costa Rica are:

• 100% exemption from taxes on capital and assets
• Exemption from taxes on profits
• Independent management of foreign currency
• Streamlined processing of documentation required for installation and operations

The Export Free Zone Corporation provides investors with centralized services to carry out standard procedures. The Corporation is located in the Center of Foreign Trade.

In addition to the Free Zone system, Costa Rica beckons investors and businesses with its geographical location in the center of the Western Hemisphere, and with the productivity of its labor force. Education has always been a national priority in Costa Rica. With schooling both compulsory and free up to the high school level, the tiny nation’s 94% literacy rate is the highest in the Third World.

Costa Rica also led the rankings for Central American Countries of the Future for 2007/08, placing first in five of the seven categories – economic potential, business friendliness, human resources, quality of life, and development and investment strategy.

Overseas companies invested US$ 1.4 billion in Costa Rica last year, equivalent to 6.4% of the Central American nation’s GDP ($320 per capita) and one of the highest levels in all of Latin America. Multinationals such as Intel, Hewlett Packard, GlaxoSmithKline and Allergan have all made recent investments in Costa Rica.

These foreign investment levels are attributable to factors such as high education levels, government support for high-tech industries and, for European investors, the favorable exchange rate between the US dollar–the currency of choice for most international business transactions in Costa Rica–and other foreign currencies such as the Canadian dollar, the British pound and the euro.

And let’s not forget the “climate” part of the title! Costa Rica is often described as Paradise, and the mild climate in the central highlands and tropical coastal areas are a huge draw for immigrants and investors alike. Highs in San Jose average in the mid 70s(F) year-round with lows around 60 degrees, while the Guanacaste region sees similar lows, with highs in the lower 90s.

ECLAC attributes the nearly US$106 billion in foreign direct investment to economic growth in the region and sustained global demand for natural resources.

While Brazil received the largest total influx of FDI, with US$34.6 billion, Costa Rica and several other Central American countries were among the leading recipients relative to each nation´s gross domestic product.

While the United States is one of the leading investors in the region (along with the Netherlands and Spain), the superpower´s economic slowdown did not affect the figures for 2007, as its effects were only beginning to be felt by the fourth trimester of the year.

The flow of FDI for 2008 may therefore not equal last year´s record highs, but ECLAC is forecasting 4.7% growth for the region as a whole this year, and 4.5% for Costa Rica.

José Luis Machinea, the Executive Secretary of ECLAC, acknowledged that economic woes in the United States are causing global uncertainty, and the expected growth for 2008 has been revised downward from an initial estimate of 4.9% issued in December.

Nonetheless, Machinea described the regional economy as a whole as less vulnerable than in the past.

The Paraíso Carlisa, located about 30 miles from the popular beach towns of Quepos and Manuel Antonio, is an eco-resort with 20 bungalows nestled in 2.5 acres of primary and secondary forest near the Cangreja National Park and the Zapaton Indigenous Reserve.

Best Western is the world´s largest hotel brand, with more than 4000 hotels in 80 countries, including more than 25 in Costa Rica. The Paraíso Carlisa will be Best Western´s first mountain hotel in Latin America. Each Best Western hotel is independently owned and operated.

Western Union, meanwhile, is celebrating the tenth anniversary of its operations in Costa Rica, and announced an expansion of its Global Service Center here. With 550 new hires, the expansion will nearly double Western Union´s workforce in the country, for a total of 1200 employees by the end of 2008.

Christian Rodríguez, VP of Operations for Costa Rica, explained that the decision to expand here was based on the quality of Costa Rica´s education, costs, infrastructure, technology and human resources.

The world leader in global money transfer services first opened a small call center in Costa Rica in 1998, employing 33 people to serve Latin America and the Cribbean. Western Union´s Costa Rica operations now offer services in eight languages, handling customers in North and South America, Europe, the Middle East and Africa.

Also this week, the Western Union Foundation announced a $25,000 donation to Fundacion Alimentando Esperanzas, a San Jose-based nonprofit organization offering education and family support services to children and their families.