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The government's proposals to reactivate the economy are a step backward in labor rights.
Costa Rica's President Carlos Alvarado faces the rejection of most of the country's productive sectors after the draft agreement used in the negotiation of an International Monetary Fund (IMF) loan was known.
Economist Sofia Guillen stated that the draft presented by the Alvarado administration was ambiguous since it did not respond to the needs of any social or productive sector.
The proposal represents a backward step in labor rights since it seeks to approve 12-hours working days, which do not encourage the creation of jobs but overexploit those that already exist.
She asserted Alvarado’s lack of character as he did not ask the richest sectors to make their contributions to curb the effects of the pandemic, which have magnified problems of job insecurity, public finances, and poverty.
Costa Rica raised taxes this week as Covid continues to put pressure on the countries already crippling economy. Protestors request a better consideration of cutting government expenditure as a better response to the situation. pic.twitter.com/bBPnCDdDJw
The analyst also pointed out that while the crisis caused by tax fraud and the effects of the pandemic intensifies, the Legislative Assembly continues approving projects to cut wages and salaries in the public service.
On Sept. 30, members of the National Rescue Movement (MRN) and several trade unions began a protest against the government's proposal to impose new taxes and sell state assets in order to receive a US$1.75 billion loan from the IMF.
As a result of the protests, the President informed that his government will not negotiate the IMF loan and called for a national dialogue to improve the country’s economic situation.
Costa Rica’s Central Bank showed the country will end the year with a fiscal deficit of 9.3 percent and a debt of over 70 percent in relation to the Gross Domestic Product (GDP).