Thursday, June 10, 2010

Capitalism the Tico Way



Capitalism is alive and well in Costa Rica. In fact, it’s flourishing in spite of high taxes, hefty import duties, and stringent regulation on such matters as labor law, renters' rights and other aspects of living, working, and conducting business here that we have not yet discovered.

To be clear, Costa Rica is a democracy with a progressive constitution that protects the individual rights of its citizens, permanent and temporary residents, and even visitors. It also has nationalized medicine, alcohol, telecommunications, electricity, oil refining, and mass transportation. Still, the drive into San Jose from the airport presents clear evidence of the vast number of foreign corporations who have chosen to locate at least a portion of their operations here in spite of those regulations.


A spice vendor at the central market.

But more importantly, to my view, is that the streets of every city, town, or village we have visited are lined with clothing stores, shoe stores, jewelry stores, pharmacies, hardware stores, office supply stores, cell phone stores, computer stores, Internet cafes, diners (Ticos call them sodas), bakeries, private clinics, pharmacies, hair salons, furniture makers, auto repair shops, industrial suppliers , street corner produce venders… well you get the picture.

While some of these businesses are clearly owned by large corporations, most – in fact, by my observation, the vast majority -- are small businesses. Some of these businesses are robust operations that provide a paycheck to large a extended family and other employees, as well. Just as prevalent, though, are tiny, tiny businesses in which one or two people work the entire operation, often in a little cubby of a shop.

For sure, Costa Rica reminds me of the way the U.S. was perhaps 40 years ago. A place where an idea, a few dollars, and a lot of hard work can earn a person a living and the satisfaction of making one’s own road in life. A place where entrepreneurism is as common as gallo pinto and fried platanos.

Pura Vida