Costa Rica Passes Referendum Law

by Mike Godfrey, Tax-News.com, New York

28 May 2002

After two years of legislative travail, Costa Rica's Popular Referendum Law was finally passed last week in a unanimous vote by the country's Legislative Assembly, and is likely to become law this week when it's gazetted.

It's not clear that the new administration headed by Abel Pacheco had much to do with this development, or that the law as passed will help, rather than hinder democracy, but it will be the government that reaps the benefits in terms of popular esteem.

The new law stipulates that any citizen who collects the signatures of 5% percent of the country’s 2.3 million voters can call a referendum, as can the the Legislative Assembly on a two-thirds majority, or the President, with a simple majority in Congress. Referendums cannot be held on economic issues such as taxation or trade agreements; nor can they address an issue that Congress deems could violate the government’s existing contractual obligations or international law.

Referendum results will be legally binding if at least 30% of eligible voters participate, but for constitutional reform a 50% participation is needed. Only one referendum is allowed annually, yet there is tie-breaker provision in the legislation.

There are worries that the referendum law as passed may play into the hands of well-organised minorities: one government lawyer told local newspaper The Tico Times: "The text of this legislation is strangely worded. A lot of the details are still not clear on how this law will work."

A number of commentators believe that the 5% qualification level is too high, and that a more democratic result would be obtained if the barrier was lower. Some are planning challenges to the law; but if it is carried as expected in official publication La Gaceta this week, it will become difficult indeed to challenge it.

Recommended