legislation provides more predictable investment rules, tax stability for 30
years, and tax deductions for environmental protection and remediation
In Costa Rica, foreign investment has been stimulated by the 1981 Free
Zone Export Law, the 1984 Financial Equilibrium Law, the Income Tax
Law and other incentives for businesses to establish operations. Free zones
are areas with improved infrastructure, exemptions on import- and export-
related duties and taxes, and expedited customs services. The Financial
Equilibrium Law and the Income Tax Law provide fiscal incentives, like
tax allowances for imported equipment, to promote foreign investment in
sectors other than traditional agricultural exports. Costa Rica also has well-
organized private Chambers of Commerce and Business Associations fully
involved in defining development policies and facilitating foreign
investors' access to information.
Revesz, Richard L. and
Richard B. Steward ( 1997), 'The Superfund Debate', in
Richard L. Revesz
(ed.), Foundations of Environmental Law and Policy, Oxford: Oxford
Unversity Press, pp. 249-56.
For further discussion, see: Schmidheiny, S. and
F. Zorraquin ( 1996), Financing
Change: The Financial Community, Eco-Efficiency and Sustainable Development, Cambridge, MA: MIT Press; Muller, K.,
j. de Frutos,
( 1996), Eco-Efficiency and Financial Analysis: The Financial Analyst's View,
The European Federation of Financial Analysts' Societies Commission on Accounting.
Clarke, R. A., et al. ( 1994), "'The Challenge of Going Green: Green Strategies are
Necessary, But Which Ones, and How Will We Pay for Them?'", Harvard Business
Review, 2 ( 4), 37-52; Saunders, T. and
L. McGovern ( 1993), Bottom Line of Green is
Black: Profitable & Environmentally Sound Businesses, New York: HarperCollins; Makower, J. ( 1994), The E Factor: Bottom-Line Approach to Environmentally
Responsible Business, New York: Plume, a division of the Penguin Group; Elkington, J., J. Makower and
J. Hailes ( 1993), The Green Consumer, New York: Penguin USA.
See also: Pfeffermann, G. ( 1992), "'Facilitating Foreign Investment: Some Dos and
Don'ts'", Finance and Development, 29 ( 1), 46-7.
Rosenbaum, D. B. ( 1997), "'Risk Questions Hamper Deals (in Construction of Structures
to be Privatized in Developing Countries)'", ENR, 238 ( 8), p. 11.
Minutes from the Experts Workshop on Private Finance and the Environment, 1995,
sponsored by the Yale Center for Environmental Law and Policy, held in Crotonville,
Edwards, Sebastian ( 1992), "'Trade Orientation, Distortions, and Growth in Developing
Countries'", Journal of Development Economics, 39, ( 1), pp. 39-59.
For further insights, see: Krut, Riva and
Carol Drummond (eds) ( 1997), Global
Environmental Management: Candid Views of Fortune 500 Companies, Washington,
DC: United States-Asia Environmental Partnership.
International Finance Corporation ( 1996), Emerging Stock Markets Factbook, May,