There are 3 main
solutions: privatised
public institutions,
investement in tourisma
and invest in
non-traditional
institutions.
Investment in
Tourism
Costa Rica had been successful in
diversifying its economy in recent years
especially in the tourist industry. Tourism is
predominantly concentrated in the Pacific
Coast, most visitors came from the USA
(38.6%), In 2005, tourism contributed 8.1%
of the country's GNP and represented
13.3% of direct and indirect employment.
Tourism now earns more foreign
exchange than bananas.
Investement in
Non-Tradition Exports
In the 1990's, Intel were encouraged to
invest and build a factory and by 1998,
production had started and in 2001, the
export was 3 times that of banana's and
coffee together.
The influence of FDI from intel
affects more than the economic
development in Costa Rica
Economic Impact
Increase GDP
Infrastructure e.g.
ICT/Services.
Airport improvements
Social Impact
Improved education
and greater access
to educational tools
Universities made important
changes to their curricula and
introduced new courses
based on Intel's
recommendations
Political Impact
Intel served as an
important impetus for
changes in the way
govern worked with
investors.
It was the first time in Costa
Rica that a president assumed
a proactive role in FDI
promotion and personal
involvement with investors.
Environmental Impact
Intel has created the group "Industrial
Friends to the Environment" it supports
projects such as "save our planet", it allows
school students to celebrate "Earth Day"
which reflects the importance of small
(micro) envrionmental projects, the
production of microships also produces toxic
waste so Intel has to ensure this is taken out
of the country and disposed in a sustainable
way.