China-Costa Ricar relations : a study of South-South Cooperation : examining the implications and limitations of Costa Rica’s diplomatic relations with China on development

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!

Chay Yagel

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11129247

chayagel@gmail.com

Supervisor: Dr. Barbara Hogenboom

Second Reader: Dr. Courtney Vegelin

August, 2016

China-Costa Rica Relations:

a study of South-South Cooperation

Examining the implications and limitations of Costa Rica’s

diplomatic relations with China on Development

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Acknowledgements

Firstly, I would like to thank the many people who stood by me, supported me, and advised me during this research – I could not have done it without you. My supervisor, Dr. Barbara Hogenboom, who provided invaluable guidance and advice; thank you for your time, effort, and dedication. Reut, without whom this thesis would never have even begun; thank you for your unwavering support and help, your honest opinions and thoughts, and your love. My family, who is always by my side, despite the distance; thank you for proofreading and designing, for your wisdom, your support, and your love. Finally, I want to thank all the people I met in Costa Rica, who welcomed me kindly and generously in their country and helped me make a thesis out of an idea.

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Abstract

China’s prominence and influence within the international community have been steadily growing over the past few decades. Providing loans, investments, aid and trade throughout the developing world, has also positioned China as a leading figure in South-South relations1_.

However, while there certainly are geopolitical and economic benefits to a partnership with China, many question whether it actually leads both partners towards development. In 2007 Costa Rica established diplomatic relations with China, providing a unique opportunity to study the implications and limitations on development, of a partnership with China. This work examines the relationship and provides information that will assist in creating a more fruitful partnership with China for Costa Rica and other developing countries. Through interviews with key people within the Costa Rican society and leadership, this research examines the geopolitical and economic motives that brought the two countries together. It shows that Costa Rica’s primary motive was economic: expand and diversify exports, as well as attract investment, tourism, and aid. It further shows that Costa Rica’s secondary motive was geopolitical: elevate its status within the international community, and gain access and prestige in international organizations. For China, the study posits that the primary motive was geopolitical: bolster the One China policy by removing an ally of Taiwan from its most supportive region; and that economic benefits were an advantage, but not a significant motive. The study then examines the outcomes and implications of the partnership so far, finding that while China’s main goal has been met, progress on Costa Rica’s objectives remains slow. In addition, the study looks into the unfulfilled potential of the partnership regarding sustainable development. Finally, the study concludes that although relations with China can benefit countries from the global South, the case of Costa Rica demonstrates that their impact on development is rather low.

Key words: Costa Rica, China, South-South relations, development, sustainable development, international relations

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Acronyms and Abbreviations

APEC Asia Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations BIT Bilateral Investment Treaty

BRICS Brazil, Russia, India, China and South Africa

CAFTA(-DR) Central America-Dominican Republic Free Trade Agreement (with the US) CARICOM Caribbean Community

CBRC China Banking Regulatory Commission CHEC China Harbour Engineering Company CNPC China National Petroleum Company

COMEX Ministerio de Comercio Exterior (Ministry of Foreign Trade) ECLAC/CEPAL Economic Commission for Latin America and the Caribbean EFTA European Free Trade Agreement

EU European Union

FDI Foreign Direct Investment

FTA Free Trade Agreement

ICE Instituto Costarricense de Electricidad (Costa Rica Institute of Electricity) ICT Instituto Costarricense de Turismo (Costa Rica Tourism Board)

IMF International Monetary Fund

INDC Intended Nationally Determined Contribution LAC Latin America and the Caribbean

MIDEPLAN Ministerio de Planificación (Ministry of Planning)

MINAE Ministerio de Ambiente y Energía (Ministry of Environment and Energy) NGO Non-Governmental Organization

OECD Organization for Economic Cooperation and Development PPP Public-Private-Partnerships

RECOPE Refinadora Costarricense de Petróleo (The Costa Rica Oil Refinery)

SEZ Special Economic Zone

SORESCO Sociedad Reconstructora Chino-Costarricense (Chinese-Costa Rican Reconstruction Corporation)

UN United Nations

US United States of America

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List of Figures

Graph 2.1: Imports between developing countries (% of total imports, average per decade) ………. 10

Graph 2.2: Exports of primary products between developing countries 2000-2008 (US$ billions) ... 10

Graph 2.3: LAC goods trade with China, 2000-2013 (US$ millions) ………..14

Graph 2.4: Latin America exports to China by product, 2000-2013 (US$ billions) ……… 14

Graph 2.5: Chinese finance to LAC by year 2005-2015 (US$ millions) ………. 15

Table 3.1: Operationalization table ……….. 26

Graph 5.1: Trade between Costa Rica and China 2003-2014 (US$ millions) ………. 45

Graph 5.2: Costa Rica’s international trade 2003-2014 (US$ millions) ……….. 46

Table 5.3: FDI inflows to Costa Rica by country of origin 2000-2014 (US$ millions) ……….. 49

Graph 5.4: Number of visitors to Costa Rica by country of origin ……….. 51

Graph 5.5: Percentage of total visitors to Costa Rica by country of origin ………. 51

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1 Introduction

1.1 Introduction and Research Objectives

On June 1st, 2007, Costa Rica and China officially established diplomatic relations. At first glance, this may seem a rather technical and bureaucratic event in international affairs. However, the geopolitical context of this relationship, and its economic and environmental potential, cast it in a more intriguing light. China-Costa Rica relations represent a new South-South partnership, set on the backdrop of the rise of China and its increasing international influence, as well as the bold Costa Rican move to become the first Central American country to sever relations with Taiwan – a long-time ally.

Costa Rica is a world leader in the production of energy from renewable sources and has set high environmental goals for itself, such as carbon-neutrality by 2021 (MINAE, 2015). China is also making great efforts to improve sustainability by reducing carbon emissions and fossil-fuel consumption, as well as setting its own environmental goals (Edwards et al., 2015).Therefore, it was natural to expect Chinese-Costa Rican collaboration on these issues. Studying this collaboration would serve to reveal the potential of exporting the model to other countries.

However, despite the potential for collaboration and mutual gains in terms of sustainability, Costa Rica and China cooperate very little on this issue. In fact, most interactions between China and Costa Rica take place in the private sector, whereas public sector cooperation is limited. This raises, therefore, the question of the motives for Costa Rica’s relationship with China. It is clear that Costa Rica is not a typical partner of China, particularly within the Latin American and Caribbean (LAC) region. Many countries that work with China receive significant loans and large-scale infrastructural projects. In return, China generally receives natural resources (such as minerals, metals, and fossil fuels), as well as the opportunity to export products to a relatively large market (such as Brazil). However, there is not much natural resource extraction in Costa Rica, and the country's population of less than five million is not a significant market by Chinese standards.

Therefore, it is interesting to understand what brought these two countries together, and what were the outcomes and effects of this diplomatic change. Costa Rica is a small country with a population of 4.8 million and a history of democracy and gradual economic growth. China, on the other hand, is the most populated country in the world with over 1.3

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billion people and a history of communism, dictatorship, and rapid economic growth. Nevertheless, despite their differences, the two countries also share several similarities. For instance, although their economic strategies and policies differ, both are considered upper middle-income developing countries. Additionally, China’s GDP per capita (PPP) stands at $14,238, while Costa Rica leads only slightly with $15,377 (World Bank, 2016). Costa Rica also received only a slightly higher score on the Human Development Index with 0.766 compared to China’s 0.727 (UNDP, 2016).

Thus, this study sets out to answer the question: “What are the implications and limitations of formalizing and intensifying relations with China for Costa Rica’s development?” To achieve this, the political and economic aspirations of the countries are examined. The study shows that China mainly intended to bolster the One China policy by removing a Taiwanese ally from its most supportive region, while Costa Rica hoped to improve its status within the international community, and expand and diversify its international trade market. The study then concludes that although China’s primary aspirations were met, Costa Rica has not entirely achieved its goals from this relationship. The study also attempts to understand what lies behind the lack of cooperation on environmental issues.

1.2 Relevance and Justification

The rise of China in the past few decades has not been an exclusively economic phenomenon. China’s political clout within the global community has increased substantially, as well as its role in international development. In addition to providing finance and aid, China constitutes an alternative, or supplement, to the western markets and ideologies. Its increasing importance and influence have gradually put it in a position to shape and lead global agendas. For instance, China’s loans and infrastructural projects in developing countries have changed the way development aid is perceived. Instead of demanding political and economic reforms in return for aid, China promotes more business-like partnerships (Cheng et al., 2012). In this regard China is a leading figure in South-South relations, providing assistance to over 100 developing countries (OECD/WTO, 2009).

Another crucial sphere in which China has influence is sustainable development. The sheer magnitude of China’s population and industry make it one of the most polluting

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five-year plan aims to reduce carbon emissions and increase investment in renewable energy technologies. In fact, environmental investment policies have been put in place to encourage investments in sustainable development. Also, China issued a joint statement with the US on climate change, in which both countries committed to furthering sustainable development (Edwards et al., 2015). In addition to the improvements these commitments signify for China, they could also provide developing countries with a viable model of sustainable development.

Of course, China’s rise has not been entirely positive. China has been criticized for its immense extraction of natural resources, as well as increasing global competition – primarily amongst developing countries. This can particularly be seen in China’s involvement in LAC, and will be discussed in further detail in the next chapter.

Finally, China’s economic agenda is certainly a primary driver of its actions, yet its policy regarding Taiwan also has a central role in the relations China fosters. Working towards world recognition that Taiwan is part of China, rather than an independent country, is an important part of Chinese foreign policy. In addition, China’s rise and increasing global reach is a worrying factor to some in the US, who feel that the western power’s hegemony is being threatened (Chávez, 2014).

On the opposite side of the relationship, Costa Rica’s peaceful attitude and beautiful landscapes have granted it the reputation of a “paradise on earth”. Yet, more than just a tourist destination, Costa Rica boasts a history of stable democracy and economic success. This in contrast to its neighbors, which have experienced political instability and civil war, along with economic stagnation or even decline (Colburn, 2006). There are several contributors to Costa Rica’s success, including strong support from the US, investment in human capital, and careful economic liberalization alongside strong and stable State institutions. Moreover, Costa Rica’s economic success is not its only admirable attribute. Despite the fact that the country’s transportation sector remains an environmental hazard, Costa Rica’s renewable energy infrastructure has earned praise worldwide. With a yearly average of over 90% of Costa Rica’s electricity generated from renewable sources, its environmental goals and achievements are a source of pride to its people (Fendt, 2015).

Some of these aspects are unique to Costa Rica. For example, not every developing country receives such heavy support from the US, nor is it common to have a natural environment so conducive to sustainable practices. Nevertheless, many of Costa Rica’s decisions and policies that were positive for its development are applicable in other countries

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as well. Therefore, I believe Costa Rica can inspire a successful development model for other countries.

Another important facet of the China-Costa Rica partnership is what can be learned of South-South relations. South-South-South-South relations are increasingly being recognized by development institutions and the international community for providing a wider range of financial resources and promoting global interdependence (OECD/WTO, 2009). As mentioned earlier, China is a leading figure in South-South relations and promotes partnerships based on non-interference and mutual gains (OECD, 2012). Costa Rica also benefits greatly from South-South relations, gaining from high levels of trade and investments with LAC and other developing countries (Alpízar Arce, et al., 2015). Therefore, a study of this new partnership can help further understand some of the advantages and limitations of South-South relations. There is great interest in the role of China in LAC. However, while many of China’s partnerships in the region are well researched, studies on the relationship with Costa Rica remain few. Costa Rica’s relationship with China provides some insight as to the implications of intensifying relations with China – particularly for countries that are not endowed with an abundance of natural resources. Apart from Costa Rica, other developing countries also stand to gain from learning about the implications and limitations of a partnership with China. Therefore, this study aims to give an additional perspective on the relationship and provide information that will assist in creating a more fruitful partnership.

The study shows that although relations with China are generally positive, they are not as much of a “game-changer” as one would expect. Therefore, this work contributes to existing research, and raises some relevant points for discussion regarding China’s contribution to Costa Rica’s development. Furthermore, this study provides specific insights, both for Costa Rica and for other countries, regarding strategies and partnerships towards development. This work shows that while Chinese relations with the global South are a positive development, there are still specific steps to be taken towards their improvement.

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1.3 Thesis Outline

The thesis is divided into seven chapters. The first chapter introduces China-Costa Rica relations and discusses the importance and relevance of this study. Following this, the second chapter lays out the analytical framework of the research. First, it provides a theoretical overview of Liberalism as a paradigm of international relations studies, and its relevance to development and the emergence of South-South relations. Then, a contextual background is given on China’s relations with LAC, and Costa Rica’s development model and trajectory. Afterwards, the third chapter presents the methodological framework of the study. Here, the research questions are put forward, and the main concepts are operationalized. Then, methods of data collection and analysis are discussed, as well as the ethical considerations and limitations of the research.

Chapters four through six present the findings of the research. Chapter four addresses the geopolitical aspects of Costa Rica’s relations with China, while chapter five looks into the economic effects of the relationship. Both chapters explore the expectations of the countries from formalizing relations and endeavor to determine whether they have been met. Next, chapter six discusses the unfulfilled potential of the partnership, by looking at the lack of cooperation in the field of sustainable development.

Finally, chapter seven concludes the thesis by summarizing the findings to answer the research question, and position the study in a wider context of development studies. It then also provides some recommendations for further research on the topic.

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2 Analytical Framework

In order to set a solid foundation for the research, this chapter lays out the theoretical framework on which it stands, and a contextual background of the main actors involved. As this is a study of the relations between two countries, the theoretical framework is grounded first in the discipline of international relations. Of the discipline’s three main paradigms: Realism, Liberalism, and Constructivism, this research takes the Liberalist perspective. This chapter looks at how liberalism has shaped development and globalization, and how South-South relations have emerged from the process.

Then, a contextual background for the study is provided. First, China’s relations with LAC are examined, looking into the effects on the region and other relevant countries in terms of economics, geopolitics, and sustainable development. Second, a historical background is given on Costa Rica’s development trajectory.

2.1 Theoretical Framework: Liberalism, Globalization, and South-South Relations

A core principle of Liberalism, which is imperative for development studies, is the rejection of the presumption that human nature is selfish, and therefore international relations are a zero-sum game of relative gains. Liberalists believe that humans are not inherently motivated by self-interest and that states can cooperate to achieve mutual gains. This is crucial for development studies, as it allows for the possibility of cooperation and progress (Jackson and Sorensen, 2016). Additionally, Liberalists do not see the State as the sole unit of analysis, nor as a unitary actor in itself. Liberalism recognizes the roles of multinational corporations, international organizations (such as the UN or the World Bank), and transnational actors (such as environmental activists or terrorist groups) in shaping the interests of states, and as actors in international relations (Baylis, Smith, and Owens, 2014).

Furthermore, while Realism only recognizes the “hard power” of military capabilities, Liberalism recognizes the existence and importance of “soft power”. According to Joseph Nye, who coined the term, “[Soft power] is the ability to get what you want through attraction, rather than coercion or payments. It arises from the attractiveness of a country’s culture, political ideals, and policies” (Nye, 2004). Therefore, a country’s reputation and

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component of its importance and power. This point is particularly relevant to Costa Rica, as it dismantled its military in 1949 and strives to enhance its reputation in the global community. This shows the importance Costa Rica attaches to soft power.

Finally, Liberalism holds democratic ideals and economic motives as the main proponents of progress towards peace and prosperity (Baylis, Smith, and Owens, 2014). In the context of development – rather than classic international relations – this research focuses on economic motives as means and incentives for cooperation towards development.

Liberalism continues to play an important role when zooming into development studies, as development has largely been a liberal pursuit. This particularly comes to light when looking at how the global North constructed the ideological framework of aid, with the intention of ensuring that it would lead to democracy and liberal economies. After the Second World War, international development began gaining ground in theory and in practice. Theories on how best to promote development varied and changed throughout the years; among the most influential was the Washington Consensus. The Washington Consensus spelled out ten points that were believed to be imperative for economic stability and growth. Thus, liberal ideals, such as privatization, deregulation, and liberalization of trade, investment, and interest rates, were pushed forward (Williamson, 2004). The Washington Consensus was embraced by international financial institutions (IFIs), such as the World Bank and the International Monetary Fund (IMF), and became the economic and political reforms that the global North demanded in return for loans and aid (Crawford, 1997). These principles were also an inseparable part of FDI and international trade treaties such as the Central America-Dominican Republic Free Trade Agreement with the US (CAFTA-DR).

The spread of liberalism ushered in high-speed globalization, with the western powers at the reins. However, the swiftness of the reforms and the “all-or-nothing” mentality were problematic. The Washington Consensus focused solely on economic growth, but not on its sustainability or on equity. It also attempted to liberalize markets too rapidly and did not allow the people or the economy to adjust to the changes naturally (Stiglitz, 2006). Furthermore, developing countries were (and in most cases still are) grossly under-represented in the IFIs. The US and Europe had near absolute influence on these institutions and shaped globalization without much consultation with others. This democratic deficit undermined the legitimacy of claims of promoting democracy, and slowly caused resentment for the IFIs and the Washington Consensus (Stiglitz, 2006).

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Nearing the end of the millennium, a growing realization of these problems led to a shift towards a post-Washington Consensus strategy. This approach recognized the role of effective State institutions and their importance in counterbalancing the market. It eased the strict free-market policies and increased emphasis on social aspects of development. Within the IFIs and international organizations, this meant more participatory development and social impact assessments, whereas in the corporate world, “corporate social responsibility” became an integral part of business strategy (Carroll and Jarvis, 2015). In addition, the idea of endogenous growth gained popularity, and investment in human capital rose (Lin and Rosenblatt, 2012). However, the post-Washington Consensus was also criticized for being ineffective, and for once again forcing a western perspective on developing countries. Tania Murray Li (2007) demonstrates how the attempt to bring development through social programs by working with communities in Indonesia, quickly became a patronizing neo-colonial practice; a World Bank led social development program that effectively aimed to teach Indonesians how to live “correctly” within their communities.

Disappointment in the existing development infrastructure, and later the phenomenal economic growth of countries from the global South, brought rise to South-South relations. The main objective of South-South relations is the promotion of development according to the needs of developing countries. As shown above, North-South relations tend to entail intervention in the developing country’s internal affairs and are primarily “supply-driven” – meaning that the areas and terms of cooperation are dictated by the aid-giving country. In contrast, South-South relations avoid intervention in another country’s internal affairs and aim to be “demand-driven” – wherein priorities are identified by the developing countries (OECD/WTO, 2009).

The roots of South-South relations can be traced to the end of the Second World War when countries from the global South formed international organizations without including countries from the global North (for example, the Arab League). However, the first clear milestone of South-South relations was the Bandung Conference held in 1955. Here, delegates from 29 African and Asian countries met to condemn colonialism and foster cooperation with one another. This movement later became the Non-Aligned Movement, which went on to create the 77 Group (G77) within the United Nations. The primary goal of the G77 has been to unite developing countries, in order to amplify their voices in international fora and promote their perspectives on development and other global issues.

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South-South relations continued to gain momentum from the 90s onwards, with an increasing number of organizations, agreements and other forms of cooperation (Lopez Cabana, 2014).

The economic crisis of 2008 also had a positive effect on South-South relations. Due to repercussions being harsher on the global North, the crisis led to a decrease in North-South cooperation. This, in turn, led to higher levels of cooperation between countries of the global South (Lopez Cabana, 2014). Today, countries such as BRICS2_{and the Asian Tigers}3_{play an}

increasing role as international investors and lenders, and trade and investment have risen significantly among developing countries (see graphs 2.1 and 2.2) (Lin and Rosenblatt, 2012).

A significant advantage of South-South relations is market diversification for developing countries, allowing for more stability and less dependence on the global North and its policies. However, it is important to note that the global North has not become irrelevant. For most countries, the US and Europe remain their largest investors and trade partners. Furthermore, countries of the global North will often provide financial support for specific South-South projects (Triangular Cooperation) (OECD/WTO, 2009). Lastly, the rise of the global South is not without disadvantages. It has led to a rise in inequality and environmental problems among developing countries, as well as increased South-South competition, which will be discussed in further detail in the following section. This research analyzes Costa Rica’s relationship with China, which provides an example of South-South relations and their relevance to development today.

2_{Brazil, Russia, India, China and South Africa.} 3_{Hong Kong, Singapore, South Korea and Taiwan.}

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Graph 2.1: Imports between developing countries (% of total imports, average per decade)

Source: Lin and Rosenblatt, 2012.

Graph 2.2: Exports of primary products between developing countries 2000-2008 (US$ billions)

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2.2 China’s Relations with Latin America and the Caribbean

China has been developing at an unprecedented rate in the past few decades, and along with its economic rise, has expanded and deepened its international relations. More and more countries consider China a strategically important partner – both politically and economically.

A rather unique case in terms of development; China is considered a developing country in many ways, yet is a world leader in providing loans and aid. Chinese aid gradually expanded in scope and territory throughout the years, gaining its true significance during the 1990s (Cheng et al., 2012). An important attribute of Chinese aid is the “trade-not-aid” philosophy. This philosophy is China’s answer to the Washington Consensus, refusing to intervene in the internal affairs of countries. Instead, China believes in a straightforward quid-pro-quo relationship, which demonstrates mutual respect between partners. Being part of the global South and adhering to the “trade-not-aid” philosophy has made China an increasingly appealing partner for poorer countries.

Chinese relations with LAC have intensified significantly in the past years, recently upgrading China to the region’s second largest export market (Edwards et al., 2015). Relations are mostly bilateral, although regional cooperation is growing as well. In January 2015, a meeting between China and the Community of Latin American and Caribbean States (CELAC) produced a cooperation plan for the years 2015-2019. In this plan, the regions agreed on cooperation and advancement of their relations in 13 key areas, including political, environmental, agricultural, technological, trade and investment. The following sections will delve into the economic, political, and sustainable development aspects of Chinese presence in LAC.

2.2.1 Economic relations between China and Latin America and the Caribbean

Economic relations between China and LAC differ from country to country, but there are two major economic reasons for China’s interest in LAC. First is access to natural resources and food products. These are imperative to satisfying China’s increasing energy needs, and feeding the country’s growing middle-class. Second is China’s keen interest in expanding its export market for manufactured goods (Jenkins, 2012). For LAC, China is an important source of trade, investment, and finance.

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Trade

As a trade partner, China provides products such as common goods and technological apparatuses and buys commodities and basic food products. Trade between LAC and China has increased 22-fold since 2000, compared to a threefold increase in LAC trade with the whole world. Moreover, China has become the largest trading partner for Brazil, Chile, and Peru (ECLAC, 2015). However, China’s rise as a manufacturing giant has also increased competition with LAC manufacturers and driven many out of business (Fernández Jilberto and Hogenboom, 2010). Therefore, a heated debate has risen, primarily around the question of the nature of the relations: complementarity versus dependency. That is to say, are China-LAC relations mutually beneficial, or are they harmful and creating a dangerous dependency of LAC on China?

Pessimists raise two main arguments to the danger of China-LAC relations. First, they claim that China’s huge growth is environmentally harmful. According to them, the country’s immense need for raw materials leads to extremely extractivist imports and investments, which in turn lead to harsh negative impacts on indigenous communities and the environment. Indeed, in order to extract natural resources, there are cases in which indigenous communities are displaced, and stretches of land are industrialized and ruined (Ray and Gallagher, 2015).

Second, aside from the immediate damage, many warn that this type of trade will lead to dependency on China. They explain that China’s demand for raw materials is causing the recommodification of LAC – increasing LAC’s reliance on commodity exports. Thus, if Chinese demand for commodities declines, LAC will have little to offer and trade will drastically decrease (ECLAC/UN, 2015). At the same time, China’s success in manufactured goods is driving LAC out of this market. Thus, reducing income and the number of export products, while simultaneously creating dependency on import of Chinese manufactured goods (Fernández Jilberto and Hogenboom, 2010).

These fears and warnings are not entirely unwarranted. Chinese extractivism has indeed had damaging effects on the environment and indigenous communities; deforestation, pollution, and a decrease in biodiversity are not uncommon. Moreover, the share of extractive industries in LAC export to China has risen from 25% between 1999-2003, to 56% between 2009-2013 (Soutar, 2015). However, supporters of China-LAC relations point to the fact that these problems are not caused exclusively by China. Rather than any concern for LAC or the environment, they claim that much of the pessimism is a result of fear of the rise of China.

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and other extractive activities (Cypher and Wilson, 2015). Moreover, lately, China is moving towards becoming more environmentally friendly. It is slowing its economic progress in order to address income disparities within China, and investing in sustainable technologies and renewable energy (discussed below).

The argument of dependency is not unreasonable either. Firstly, most LAC countries are in a perpetual trade deficit with China – importing more than they export (see graph 2.3). Secondly, four commodities alone (soy, oil, copper and iron) accounted for 80% of LAC exports to China in 2013 and 2014 (see graph 2.4) (Casanova et al. 2015 and ECLAC/UN, 2015). Indeed, as expected, the abovementioned Chinese economic slowdown is already taking its toll on LAC economies, while Chinese manufacturers continue to take the place of LAC manufacturers (Ray and Gallagher, 2015).

However, optimists claim that trade with China has allowed LAC countries to increase internal consumption with wealth redistribution, and therefore reduce their dependency on foreign aid, trade, and investments. In addition, they argue that without trade with China, LAC would have suffered immeasurably more from global economic crises, such as in 2008. In fact, LAC did benefit from relations with China in the years following the crisis – most notably in 2010 (ECLAC/UN, 2015). Optimists also point to potentially positive implications of China’s economic slowdown (which resulted in lower demand and lower prices for commodities, and thus significant losses for LAC). They posit that the negative implications will only last in the short run. In the long run, China’s new policies will diversify the region’s foreign economic relations, and create greater opportunities for export, trade, and investments (Harris, 2015). This will eventually lead to more economic stability in LAC and less dependency on specific trade products. Finally, some add that less demand and less export reduce pressure on the environment (Leal, 2015).

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Graph 2.3: LAC goods trade with China, 2000-2013 (US$ millions)

Source: ECLAC/UN, 2015.

Graph 2.4: Latin America exports to China by product, 2000-2013 (US$ billions)

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Finance and Investment

As loans from China began increasing in 2008, finance became another important aspect of China-LAC relations. In 2010 Chinese loans to LAC reached over $35 billion, exceeding those of the World Bank, the Inter-American Development Bank, and the US Export-Import bank combined. Additionally, although China did not provide such vast amounts the following years, 2015 saw another peak with $29 billion (see graph 2.5) (Myers, Gallagher, and Yuan, 2016). Many of these loans are given in the form of large-scale infrastructural projects carried out by China. Moreover, in contrast to western loans, which are usually conditioned on conforming to the Washington Consensus, China only stipulates that the projects be undertaken by Chinese companies and labor4. In addition, China allows some countries to repay their loans in commodities. Thus, for countries that do not meet the qualifications of international lenders, China is a crucial source of finance (Myers, Gallagher, and Yuan, 2016).

Finally, China provides LAC with Foreign Direct Investment (FDI) by bringing in Chinese businesses or investing in local ones. Chinese FDI in the region has increased significantly in the past few years, already making an impact after the 2008 financial crisis. However, most Chinese FDI is concentrated in extractive industries and is still lower than FDI from the US and the EU (OECD,/ECLAC/CAF, 2015).

Graph 2.5: Chinese finance to LAC by year, 2005-2015 (US$ millions)

Source: Myers, Gallagher, and Yuan, 2016.

4_{The benefits being that projects are usually completed quickly, with no interference in a country’s}

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To conclude, while LAC is interested in diversifying its markets and reducing dependency on the US, the US remains one of its primary economic partners (Cypher and Wilson, 2015). Relations with China are beneficial, yet they generate less economic activity than they potentially could. This is mainly due to the type of products traded with China, the relatively low levels of FDI, and the fact that large projects employ only Chinese workers (Jenkins, 2012).

2.2.2 International implications of China’s presence in Latin America and the Caribbean

USA

While Chinese relations with LAC are primarily economic, they have geopolitical implications as well. China’s growing presence and influence in LAC has caused some unease in the US and raised the debate of whether China is intentionally increasing its power in what the US considers its “backyard”, or not. Alarmists claim that China is slowly building its power at the expense of the US in order to become a global hegemon. Others, China among them, explain that the policy is benign and that China has no intention of infringing on any US interests (Chávez, 2014). It cannot be denied, though, that the growing diversification of the international market is allowing smaller and poorer economies to grow and become more independent – particularly, independent from the US (Bonilla and Milet, 2014). Indeed, LAC countries no longer believe that they have no other choice apart from the Washington Consensus, and are cooperating more and more with China and amongst themselves.

It is not only China’s appeal that has brought LAC countries closer to it, but also the US’s waning interest and action in the region that drove them to look for other sources of cooperation and assistance (Xiaoping, 2014). Thus far, China has been true to its claims of a benign policy towards the US in LAC and concentrates its efforts around trade and infrastructure. Although currently the US remains more influential and with higher levels of trade in the region, China’s economic prowess may surpass it in the future. Furthermore, while in the past international affairs were governed exclusively by military capabilities, it is slowly becoming the economic and financial capabilities that steer allegiances. Therefore, it may be that China’s actions are benign, yet will eventually position it as the de-facto regional hegemon.

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Taiwan

The US is not the only factor affecting China’s policy in LAC – Taiwan also plays a central role in China’s quest for allies. Relations between China and Taiwan date back several centuries. After annexing the island of Taiwan in the 17th century, China ceded it to Japan in 1895 as part of the treaty ending the Sino-Japanese war. In 1945, Japan was forced to surrender the island to the Republic of China (ROC). Then, in 1949 the ROC government fled to Taiwan, after losing a civil war with the Chinese Communist movement. Since then, the governments of the People’s Republic of China (PRC) and Taiwan (ROC) are in conflict over the island. China’s official position is that there is One China, which includes the island of Taiwan and is ruled by the PRC. Across the strait, there are those who call for Taiwanese independence, and others who adhere to the One China policy, only under the rule of the ROC (Albert, 2016).

Today, China adheres to the One China policy and implements it as a diplomatic tool to strengthen its claim on the island. According to the One China policy, a country must sever diplomatic relations with Taiwan in order to establish relations with China. Therefore, each country that establishes relations with China also delegitimizes Taiwan and weakens its international political standpoint (Chávez, 2014).

Currently, Taiwan has diplomatic relations with only 22 countries, one of which is in South America (Paraguay) and 11 in Central America and the Caribbean. The loyalty of these countries dates back to the Cold War era, when the US had great influence in the region and did everything in its power to prevent communism from taking root. Thus, as just over half of Taiwan’s allies belong to the LAC region, it is clear why it is strategically important to China; taking an ally from this region is a significant blow to Taiwan’s stronghold (Chávez, 2014). Costa Rica is the only Central American country that severed diplomatic relations with Taiwan to formalize such relations with China. This was an important step for China in the isthmus, and there was hope that it would convince neighboring countries to follow suit (Córdoba Ramírez and Paladini, 2012).

However, despite their political importance, the existence or absence of diplomatic relations bear no direct consequences on economic relations. Meaning, countries that have cut diplomatic ties with Taiwan do not necessarily sacrifice trade and investment with the country (although having diplomatic relations simplifies many processes). Therefore, the two Asian countries compete over LAC by making diplomatic relations more economically appealing. For example, they will offer special loans or donations in return for diplomatic support (Aguilera Peralta, 2010).

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2.2.3 Sustainable development and the potential of cooperation

Sustainable development is becoming an increasingly urgent issue. More and more discussions, debates and conferences are held within the international community, and countries are slowly increasing efforts to develop and improve sustainable ideas such as renewable energy, water conservation, recycling and waste efficiency.

China has been suffering from severe air land and water pollution, due to extreme industrialization. This has turned potable water and arable land into scarce resources and led to national health problems and civil unrest. All these weigh heavy on the economy and the people of China. To combat this, in the past few years China has been shifting towards a “new normal”, in which it plans to reduce poverty and wealth gaps in the country, and focus significant efforts on sustainable development (OECD, 2015). In 2009, China pledged to reduce CO2 emissions per unit of GDP by 40-45% based on 2005 levels by 2020. In

November 2014, as part of a joint statement with the US, China announced that it would peak CO2 emissions by 2030 at the latest, and increase the share of non-fossil energy to at least

20% (Edwards et al. 2015).

In order to bring about sustainable development, China has implemented through the China Banking Regulatory Commission (CBRC) a strict Green Credit Policy and Green Credit Guidelines for its banks and investors (CBRC, 2012). According to the World Bank’s International Finance Corporation (IFC), “China’s groundbreaking Green Credit Policy [has] encouraged Chinese banks to lend more to energy efficient and environmentally sustainable companies”, and the PRC’s Green Credit Guidelines “show the banks how to integrate sustainability thinking into their lending cycle and will be applied to all lending— both domestic and overseas” (Harris, 2015). In addition, China’s latest five-year plan also includes measures regarding green technologies, renewable energy, and pollution reduction, both within China and around the world. Indeed, China has increased its share of investments in renewable energy from 32% in 2007 to 52% in 2013. Investment in thermal power plants, on the other hand, has declined from 62% to 25% (Harris, 2015).

There is, therefore, remarkable potential for China and LAC to cooperate on renewable energy, particularly in solar, wind, geothermal, tidal and hydroelectricity. Firstly, many LAC countries have renewable energy targets, such as Costa Rica’s goal to achieve carbon-neutrality by 2021. Secondly, LAC has attracted a cumulative $132 billion in investments for renewable energy production. Finally, adding this to China’s growing domestic renewable

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energy market raises high hopes for China-LAC cooperation on the matter to materialize (Edwards et al. 2015).

Today China is involved in both renewable energy projects and fossil fuel production facilities in LAC. For example, hydroelectric dams, wind turbines, and solar panels are being installed in Argentina, Brazil and Mexico – but coal mining and oil drilling and refining in Mexico, Brazil, and Venezuela are also receiving Chinese funds. Indeed, a long road still lies ahead. Implementation of the CBRC’s Green Credit Policy has not been fully achieved, and China’s need for oil and other raw materials from the region has not abated (Luxner, 2015). However, Chinese investment in renewable energy in LAC is increasing, and will hopefully overcome and replace investment in non-renewable energy.

2.3 The Development of Costa Rica

Costa Rica is an upper middle-income country that has developed in a relatively socially and environmentally responsible manner. With a long history of government spending on health, education, and social security, Costa Rica boasts stable growth, near perfect levels of literacy (97%), among the lowest poverty rates in LAC, and the second highest GDP per capita in Central America (World Bank, 2016). After a bloody civil war in 1949, the Costa Rican military was abolished, and a stable democratic regime has been standing since (Sada, 2015). Until the 60s the primary source of growth was agriculture, with Costa Rican exports consisting mainly of bananas, coffee, sugar, and beef. However, leaning heavily on only a few agricultural products created little growth, and made for a vulnerable economy. Indeed, the 70s and early 80s saw a decline in growth, which the government answered by shifting towards an import-substitution model (OECD, 2013).

Proving unsuccessful, the government transitioned to an export-led economy in the mid-80s, while simultaneously liberalizing the Costa Rican market. Costa Rica adopted policies to promote export-oriented FDI, such as tax exemptions and duty-free import of raw materials and intermediate goods (Sanchez-Ancochea, 2006). FDI became increasingly important for the country’s economic growth; investment in maquilas (assembly plants) gradually diversified and led to growth levels of 5.5% in the 90s and 4.2% in the early 2000s (OECD, 2013). Before China’s increased involvement in Central America, Costa Rica was the largest recipient of FDI in the region, receiving approximately 30% of all investments (Colburn, 2006).

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Costa Rica’s growth and increasing living standards also led to a decrease in the country’s comparative advantage in low-skilled labor-intensive industries. Thus, Costa Rica began focusing efforts on high-skilled industries, such as electronics and telecommunications. These industries were on the rise in the US, and this strategy aimed to capitalize on the country’s high level of education. Costa Rica could provide well-trained technicians and engineers with good English, at relatively low wages. This, along with a stable society, low levels of corruption, and a developed legal system, put Costa Rica in an advantageous position for FDI in high-skilled fields (Rodríguez-Clare, 2001). Indeed, in the late 90s Intel decided to open an assembly and testing facility in Costa Rica. This entailed a great rise in Costa Rica’s reputation as a good investment for high-skilled labor industries and helped attract many more similar companies (Rodriguez-Clare, 2001).

Costa Rica’s export-led economy had to be paired with trade policies. As the country’s economy was liberalized, Costa Rica also began signing free trade agreements (FTAs) with several countries and regions, such as the US, Canada, the Caribbean Community (CARICOM) and other LAC countries. More recently Costa Rica signed CAFTA-DR, as well as FTAs with China, Singapore and the European Free Trade Association (EFTA). Nevertheless, Costa Rica’s primary trade partner by far is the US. In 2012 the US accounted for nearly 40% of Costa Rica’s exports and 50% of its imports (OECD, 2013). Moreover, although US significance decreases slightly as Costa Rica’s export market diversifies, with the help of CAFTA-DR it remains the country’s largest partner in trade and investments.

It is important to note that Costa Rica’s economy underwent liberalization very gradually and that the State has retained a significant role within it. There are several governmental institutions and state-owned companies that are a critical part of the economy. For example, Costa Rica’s energy market consists of two state-owned monopolies on the country’s electricity and fuels, and prices are regulated by a governmental office.

Aid and loans have also played a significant part in Costa Rica’s development, primarily from the US. Between 1945 and 1993 Costa Rica was the fifth highest recipient of aid per capita from the US, and the highest in Latin America (Fox, 1999). Costa Rica achieved such a high place in US policy for two central reasons. First, the country’s strong institutions made it a good candidate for aid, as development programs were well implemented. Second, the US wanted to ensure that Costa Rica did not go the way of the leftist Sandinista government in

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the preceding 35 years (Fox, 1999). This was crucial at the time, as Latin America was experiencing a severe economic crisis.

However, with the end of the Cold War and Costa Rica’s successful economic growth, aid from the US gradually decreased. Being the country’s largest aid provider, Costa Rica’s overall inflow of aid has been falling since the early 90s. Today, Costa Rica’s largest source of aid and loans is China, accounting for 59% of all aid and loans to Costa Rica in 2010-2014. While the US is only the fourth largest, with 2.9% of the country’s inflow of aid and loans (MIDEPLAN, 2015).

Another aspect of Costa Rica’s development is its focus on sustainability. In 2007 the administration of president Oscar Arias pledged to become 100% carbon-neutral by 2021. This will be achieved by reducing carbon emissions, offsetting carbon emissions with forest conservation and expansion, and finally through emissions trading in the international carbon market. Leading up to the 2015 international environmental convention in Paris, Costa Rica published its Intended Nationally Determined Contribution (INDC), which states the country’s intended commitments and contributions to the international goals of battling climate change. Here Costa Rica reiterated its carbon-neutrality goal of 2021 and added a goal of zero net emissions by 2085. Towards this, Costa Rica pledged to cap per capita emissions at 1.73 net tons by 2030, and 1.19 net tons by 2050 (MINEA, 2015).

Despite its environmental drawbacks, ecotourism gradually became a vital source of income for the country. Nevertheless, the country has managed to promote environment-friendly practices by issuing special Certifications for Sustainable Tourism to tour companies that abide by certain standards. Reforestation and nature conservation has also been a priority, particularly since ecotourism began rising (Goldstein, 2001). Moreover, currently over a quarter of the country’s land area is protected – mostly within national parks (Colburn, 2006).

In addition, Costa Rica began building a renewable energy infrastructure in the 90s, with hydroelectric plants and wind farms gaining significance within the electricity grid (Dutschke and Michaelowa, 1997). As a result, today the country is able to produce over 90% of its electricity from renewable sources, and work is underway to close that gap, primarily through additional hydroelectric plants (Fendt, 2015).

Despite this, one of Costa Rica’s main challenges is reforming its public and private transportation systems. According to Fendt (2015): “Vehicles consume a whopping 70 percent of all petroleum consumed in Costa Rica, and account for 40 percent of the country’s

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total carbon emissions.” Insufficient and inefficient public transportation leads to high levels of private vehicle ownership – which also tend to be old and highly polluting. The government has put up plans to improve, expand and “electrify” public transportation, as well as offer incentives to buy newer and less polluting cars, but these plans have not yet materialized.

2.4 Concluding Remarks

To conclude, this research is established upon the ideas of Liberalism, as a paradigm of international relations. This is the standpoint from which the evolution of development is viewed. Therefore, the implications and limitations of Costa Rica’s relations with China are recognized in economic motivations and the significance of soft power. By examining the relationship between these countries, this research hopes to learn about China’s growing involvement in LAC, as well as Costa Rica’s development in a changing global environment. Moreover, South-South relations are put to a test, to see how influential they are in Costa Rica’s development.

In the next chapter, three central concepts of the China-Costa Rica relationship will be operationalized in the context of the research: geopolitical implications, economic relations, and sustainable development. The chapter will also explain the research methodology and data collection methods, as well as the limitations and ethical considerations of the study.

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3 Research Design

This chapter lays out the framework of the research process. It begins with the research question and subquestions, then breaks down the main concepts and discusses the relationships between them. The research location is then described, followed by the methodological process of data collection and analysis. Lastly, the chapter ends with discussions on the limitations, quality and ethical considerations of the research.

3.1 Research Question

The main objective of this research is to examine how intensifying relations with China has affected the development of Costa Rica. This knowledge could benefit Costa Rica, as well as other countries in similar situations, and help make the most out of a partnership with China. Costa Rica’s decision to formally establish diplomatic relations with China in 2007 provides an easy reference point in time around which to study. Therefore, the primary question of this research is:

What are the implications and limitations of formalizing and intensifying relations with China for Costa Rica’s development?

In order to answer this question, it is important to understand how both countries view their partnership, what they expect of it, and where it fails to meet those expectations. Therefore, the subquestions below address this by looking at the geopolitical, economic and sustainable development aspects of the relationship.

- What geopolitical influence does the China-Costa Rica partnership have on their international relations?

- How has formalizing and intensifying their partnership affected economic relations between Costa Rica and China?

- How have relations with China affected Costa Rica’s sustainable development? - What were the goals and expectations in formalizing the partnership, and have these

goals been achieved?

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3.2 Concepts and Operationalization

An operationalization table (see table 3.1) is very helpful in deconstructing the main concepts of the research. It allows the research to remain organized and on topic throughout the fieldwork and thesis writing. The table below shows the three major concepts of this research: the political relations of Costa Rica and China with other countries, the economic relations between Costa Rica and China, and Costa Rica’s sustainable development. The dimensions define the areas of interest in each concept, while the variables define the subquestions addressed in order to answer the main research question. Finally, the indicators in the rightmost column are the questions that provide more specific guidance for gathering information.

Political Relations

The concept of political relations refers to the first subquestion and is divided into two dimensions. The first dimension investigates the international relations of Costa Rica and China and examines the geopolitical goals in formalizing relations. Then, whether these goals (or others) have been achieved. Here I will look at the geopolitical interests of Costa Rica, such as Chinese support in the UN Security Council. From the Chinese perspective, I will look at the relevance and importance of Central America to the One China policy.

The second dimension refers more specifically to the political and economic effects the partnership with China has had on Costa Rica’s relations with Taiwan and the US. Both countries are significant in regards to China and Costa Rica. Therefore, in order to understand the influence of the partnership, it is important to identify the changes following its intensification.

Economic Relations

This concept focuses on the second subquestion and consists of three dimensions. The first is trade and investment. Trade relates to different aspects of import and export between Costa Rica and China, such as quantities and types of products. Investment refers primarily to investment within the private sector, as opposed to large-scale projects that involve governmental bodies. This includes, for example, Chinese companies that open offices or production plants in Costa Rica, or Chinese investments in Costa Rican businesses.

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are decisions made by governmental institutions that dictate the rules and regulations of trade, investment or any other cooperation between Costa Rica and China.

Lastly, the public projects dimension refers to large-scale projects, usually infrastructural in nature. These projects consist of government-to-government cooperation or public-private-partnerships (PPP) and often come in the form of investments, loans, international credit, or at times, donations. China is well known for these types of projects – Route 32 and the oil refinery in Moín are examples of such projects in Costa Rica.

I address the question of economic relations in terms of the last two subquestions on the expectations, achievements, and limitations of Costa Rica’s relations with China. This can be seen in the variables and indicators of the economic concept.

Sustainable Development

Finally, the last concept relates to the third subquestion and diverges into two dimensions regarding Costa Rica’s sustainable development. The energy dimension explores Costa Rica’s energy production and consumption and asks whether China has influenced either. The transportation dimension aims to find out whether China has helped in improving the public or the private transportation sectors in Costa Rica.

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Table 3.1 Operationalization table

Concept Dimensions Variables Indicators

Political Relations

International Relations

Goals What geopolitical gains were expected from officializing relations? Achievements What geopolitical gains were actually achieved by officializing relations?

USA & Taiwan Political and Economic

How did the establishment of relations with China affect CR's relations with the US and Taiwan?

What influence have relations with China had on trade and/or investment with the US and Taiwan?

How have changes in relations with the US and/or Taiwan affected CR's development? Economic Relations Trade and Investment Goals and Expectations

What did the countries hope to achieve in terms of trade and investment? What kind of investment is Costa Rica hoping to attract from China?

Achievements How have trade and investment with China been affected since the _{establishment of diplomatic relations?}

Limitations In which areas have trade and investment not improved and why? Have trade and investment improved in the speed and quantity expected?

Policy

Goals,

achievements, limitations

Have there been significant policy changes? FTA, BIT, changes in the way public projects are executed, etc.

Have these changes brought the desired results? Economic improvement? What difficulties do policy changes face and why? (BIT)

Public Projects: Large-scale projects, usually government-to-government or PPP. (Primarily comes in the form of investment, loans, credit and donations)

Goals and Expectations

What did CR hope to achieve with the help of China in terms of public projects? Infrastructure, public transportation, improvement of state-owned enterprises, etc.

Achievements

What projects have been initiated, approved and/or implemented in CR as a result of relations with China?

How have these projects affected CR's development?

Limitations

Which projects did not materialize and why?

Were the reasons for the failure of the projects foreseen within the "goals and expectations?

Are there projects that people believe should be brought up but haven't been?

Sustainable Development

Energy

Production

Have relations with China improved CR's fossil fuel or green energy production capabilities?

Has CR made policy changes regarding its INDC or deviated from it?

Consumption Have relations with China influenced CR energy consumption? (private-_{home solar panels, energy-saving appliances...)}

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3.3 Research Location

Costa Rica was a clear choice to study the implications and limitations of a country’s relations with China. It is unique in the sense that, in terms of the developing world, it is a relatively rich country that recently formalized relations with China. Yet it is situated in the midst of poor countries with no official ties to China. It is also quite advanced in the production of energy from renewable sources, which provides great potential for cooperation with China. Whether Costa Rica is representative of other cases will be discussed later, in the section on quality of research.

The bulk of the research for this thesis was carried out in Costa Rica, where I conducted fieldwork between January and April 2016. Specifically, my efforts were concentrated in the capital San Jose, as this is where respondents who are most relevant to the research could be found. Living in San Jose, I was able to interview professors in some of Costa Rica’s prominent universities, as well as journalists from local media outlets. In addition, I had the opportunity to speak with businesspeople, as well as visit governmental offices to interview politicians and bureaucrats.

San Jose is quite ‘western’ and similar to environments that I, as a western researcher, am accustomed to. Therefore, it proved to be quite accessible and I did not encounter major difficulties in acclimatizing or in my daily work. Gaining access to most respondents was also met with little resistance, and I found the Costa Rican people to be very open, friendly and helpful. In addition, despite having a decent level of Spanish, I was happy to discover that almost everyone spoke very good English, and I could count on that to confirm my understanding.

While in Costa Rica I took the opportunity to visit other regions, which granted me a broader perspective of the country rather than just the city of San Jose. It also allowed me to search for Chinese influence around the country, and of course enjoy its beauty and its people.

3.4 Unit of Analysis

The main units of analysis in this thesis are Costa Rica’s economic relations with China and its overall decision-making process in regards to China. By following Costa Rica’s economic

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development, I explore how it has changed since establishing diplomatic relations with China.

In terms of case-study research, Costa Rica can be seen as a deviant case. Gerring (2007) describes a deviant case as one that demonstrates a surprising value in reference to the general understanding of a topic. In this regard, while China is known for its large-scale infrastructural projects in developing countries, Costa Rica stands out for their near inexistence. Therefore, learning about this process is a useful tool in interpreting relations of China with other countries from the global South, and can assist in understanding the potential (or lack thereof) of these relations towards economic development. Investigating Costa Rica’s expectations of the partnership with China and discovering which of these have been achieved, can also be useful in scrutinizing the hopes and wishes countries have of relations with China.

3.5 Data Collection and Analysis

To locate respondents and collect data, I spoke at first with the Israeli and Dutch embassies in San Jose. With their help, I gained access to many sources and gatekeepers, who in turn led me to further respondents. With respondents, I conducted semi-structured interviews. In addition, I engaged in participatory observation at two events of a local Non-Governmental Organization (NGO) and analyzed documents from various sources.

Semi-structured Interviews

I conducted semi-structured interviews with 21 respondents, each lasting approximately one hour. I used an interview guide to remain on topic and ask the most important questions but largely allowed the conversation to flow naturally. As mentioned earlier, I am knowledgeable enough in Spanish to converse and communicate. However, to make certain that no information was “lost in translation”, interviews were sometimes conducted partly in English as well. Respondents who felt comfortable enough to be interviewed in English did so. Otherwise, interviews were conducted in Spanish with clarifications in English when necessary.

In order to put together as comprehensive a picture as possible, I inquired after people from various fields. These included politicians and government offices, such as the ministries