CORRECTED: Costa Rica eyes Arias for new term

(Correcting name in next to last paragraph.)

By John McPhaul

SAN JOSE, Costa Rica (Reuters) – Upset at a rash of
corruption scandals, Costa Rican voters are likely to usher
Nobel laureate and former president Oscar Arias back into power
in elections on Sunday.

Polls give Arias, a 65-year-old free market moderate, a
commanding lead in the presidential race in a nation that
prides itself on being a cut above the rest in Central America.

Costa Rica, which does not have an army, was stable while
many of its neighbors were convulsed in civil conflicts in the
1980s, but it has been knocked sideways by bribery scandals in
recent years.

Former presidents Rafael Angel Calderon and Miguel Angel
Rodriguez were both jailed in 2004 for taking kickbacks from
foreign companies. A third former leader is refusing to return
from Europe to face questioning on similar allegations.

Voters are seen turning to Arias, a national icon untouched
by the scandals, in the hope of recovering some dignity for a
country better known for pristine jungle and quality coffee
than corruption.

“All the candidates in this campaign have made a huge
effort to win back the confidence of the people for the
country’s institutions and politics,” Arias told a news
conference on Thursday.

Arias won the Nobel Peace Prize in 1987 for authoring a
peace plan that helped end civil wars elsewhere in Central
America. Overnight he became Costa Rica’s only international
star.

Arias is widely recognized for putting the country’s
economic house in order and creating a tourism boom. But his
critics say that he is arrogant and heavy handed, and that he
did little for Costa Rica during his 1986-1990 presidency.

Despite the criticism, Arias is well ahead of his nearest
rival Otton Solis, a former planning minister from the Citizen
Action Party.

“I’m voting for Otton because he is the most honest guy,”
said Francisco Lopez, a 67-year-old agronomist. “Arias had his
chance and did not do anything.”

Less than 100,000 party faithful turned up at his closing
campaign rally, less than normal in Costa Rica.

JOINING CAFTA?

Arias wants the country to join the Central American Free
Trade Agreement with the United States. Costa Rica’s congress
has yet to ratify the accord, the only country in the region
still dragging its feet on the CAFTA pact.

CAFTA critics say the accord does not adequately protect
small farmers, labor groups or the environment. Opponents have
threatened strikes and demonstrations if Arias tries to push it
through Congress.

Analysts say Arias’ party must win a majority in the
Legislative Assembly for smooth passage of CAFTA through
congress and other economy-boosting initiatives.

“When he was president before he kept his promises and he
created jobs,” said Carlos Hicks, 43, a security guard, who is
set to vote for Arias.

Opinion polls show Arias winning more than 40 percent
support, the minimum required for a first round victory. If
none of the candidates win the first round, the top two would
have a run-off on April 2. A poll on Thursday gave Arias 42.6
percent support, barely enough for a first round victory.

Leftists have won a string of recent election victories in
Latin America but the left in Costa Rica is split into several
factions. Arias is more of a social democrat, who likens
himself to former U.S. President Bill Clinton.

Costa Rica’s cozy two-party system has been shaken up by
the bribery scandals.

The Social Christian Unity Party, of President Abel
Pacheco, is barely registering any support in polls. Upstart
parties are the main challengers to Arias’ National Liberation
Party.

“Those scandals were the straw that broke the camel’s
back,” said Carlos Sojo, a political analyst with the San Jose
think tank, the Latin American Social Science Faculty.

“They came after years in which the two major parties
governed together, ignoring the interests of social sectors,”
Sojo said.