At this stage, despite the opposition’s efforts, it seems more and more likely that the agreement will be ratified, and sooner rather than later. Arias has reaffirmed his determination to reach approval, putting debate over the treaty at the top of his agenda, pushing other pending matters into 2007. He has acknowledged the country’s fears and doubts, and has himself pledged to join the fight to eradicate subsidies given to producers in Europe and the US, which make global markets so unequal.
However, in his 2006 Independence Day speech, addressing both celebrations and protesters he made his views clear, stating that it was ‘time for Costa Rica to change’, to ‘make decisions’ and ‘choose a path’, rather than remaining ‘wrapped up in old beliefs of former policies…that have stopped serving the best interests of the country’ and have instead become ‘heavy chains for the advancement of our society.’ 21

Arias has described himself as a ‘modern social democrat’ of the European mold, dedicated to the principles of social welfare yet seeking to ‘balance the populism of the old PLN with some of the economic philosophy of the right’, accepting the forces of global capitalism as a given and choosing to work within their logic. 22 Both Arias and Solís have stated their commitment to improving living standards and to preserving and modernizing Costa Rica’s social welfare systems and public service infrastructure, they are divided only over how best to achieve this.

Arias’ election campaign centered around his manifesto entitled, ‘Towards 2021: 8 Priority Tasks for the Country’, in which he pledged to: alleviate poverty and reduce inequality; act against racial and class discrimination; strengthen public services, especially the health, education and social security systems; improve the transport infrastructure; stem the rising tide of crime and drug use; promote environmental protection as ‘the central crux of Costa Rica’s foreign policy’, fight corruption and reduce bureaucracy and address the country’s ‘perennial fiscal crisis’, transforming the taxation system so that ‘those who have more contribute more’, in order to pay for these improvements.

His problem is that his support of DR-CAFTA may prove to be contradictory to carrying out these pledges, with the text threatening to undermine social and environmental investment and weaken the role of the State. His challenge is in finding a way to produce much needed economic growth whilst retaining the social contract vital to meeting the requirements of both the country’s major development tools, the high-technology and service sector and the tourism industry.

Real ‘development’ must be sustainable, and ‘sustainable development’ can only be achieved through linking economic growth and investment to social development and environmental protection.

If the country is to achieve its development goal Arias must ‘choose a path’ down which his divided and discontented people will follow. If ratification of DR-CAFTA is inevitable he must create a strengthened State alongside it: a State which is agile and innovative, that links foreign investment to domestic opportunity, that values community, inclusion and equality, that protects its natural resources and is able to look simultaneously at both the global and the local: in short, a State that is able to face the challenges of globalization, embrace the opportunities offered, without allowing itself to be undermined by the indiscriminating and ruthless forces of corporate capitalism.
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