Costa RicaPasses Referendum Law
by Mike Godfrey,
Tax-News.com, New York
After two years of legislative travail,Costa Rica's Popular Referendum Law was finally passed last weekin a unanimous vote by the country's Legislative Assembly, andis likely to become law this week when it's gazetted.
It's not clear that the new administrationheaded by Abel Pacheco had much to do with this development, orthat the law as passed will help, rather than hinder democracy,but it will be the government that reaps the benefits in termsof popular esteem.
The new law stipulates that any citizenwho collects the signatures of 5% percent of the country's 2.3million voters can call a referendum, as can the Legislative Assemblyon a two-thirds majority, or the President, with a simple majorityin Congress. Referendums cannot be held on economic issues suchas taxation or trade agreements; nor can they address an issuethat Congress deems could violate the government's existing contractualobligations or international law.
Referendum results will be legally bindingif at least 30% of eligible voters participate, but for constitutionalreform a 50% participation is needed. Only one referendum is allowedannually, yet there is tiebreaker provision in the legislation.
There are worries that the referendum lawas passed may play into the hands of well-organised minorities:one government lawyer told local newspaper The Tico Times: "Thetext of this legislation is strangely worded. A lot of the detailsare still not clear on how this law will work."
A number of commentators believe that the5% qualification level is too high, and that a more democraticresult would be obtained if the barrier was lower. Some are planningchallenges to the law; but if it is carried as expected in officialpublication La Gaceta this week, it will become difficult indeedto challenge it.