Overview
Country, Central America.
Area: 19,730 sq mi (51,100 sq km). Population (2006 est.): 4,274,000.
Capital: San José. Most of the people are of Spanish ancestry or are
mestizos. Language: Spanish (official). Religion: Christianity
(predominantly Roman Catholic [official]; also Protestant, other
Christians). Currency: colón. Costa Rica’s Pacific coast rises abruptly
into central highlands and a volcanic mountain chain that forms the
backbone of the country and descends gradually to the Caribbean coastal
plain. The climate ranges from temperate to tropical, and the wide
variety of plants and animals includes species found in both North
America and South America. The developing market economy is largely
based on coffee, pineapple, and banana exports. Sugar is another
significant cash crop, and beef is also important. Costa Rica is a
multiparty republic with one legislative house; the head of state and
government is the president. Christopher Columbus landed in what is now
Costa Rica in 1502, in an area inhabited by a number of small
independent Indian tribes. These peoples were not easily dominated by
European adventurers who followed, and it took some 60 years for the
Spaniards to establish a permanent settlement there. Ignored by the
Spanish crown because of its lack of mineral wealth, the colony grew
slowly. Coffee exports and the construction of a rail line improved its
economy in the 19th century. It joined the short-lived Mexican Empire in
1821, was a member of the United Provinces of Central America (1823–38),
and adopted a constitution in 1871. In 1890 Costa Ricans held what is
considered the first free and honest election in Central America,
beginning a tradition of democracy for which Costa Rica is renowned. In
1987 Pres. Oscar Arias Sánchez was awarded the Nobel Prize for Peace for
his Central American peace plan. In the early 21st century many Costa
Ricans looked to increasingly free trade with the United States as a
solution to the country’s economic woes.
Profile
Official name República de Costa Rica (Republic of Costa Rica)
Form of government unitary multiparty republic with one legislative
house (Legislative Assembly [57])
Head of state and government President
Capital San José
Official language Spanish
Official religion Roman Catholicism
Monetary unit Costa Rican colón (₡)
Population estimate (2008) 4,389,000
Total area (sq mi) 19,730
Total area (sq km) 51,100
Main
country of Central America. Its capital is San José.
Of all the Central American countries, Costa Rica is generally
regarded as having the most stable and most democratic government. Its
constitution of 1949 provides for a unicameral legislature, a fair
judicial system, and an independent electoral body. Moreover, the
constitution abolished the country’s army, gave women the right to vote,
and provided other social, economic, and educational guarantees for all
of its citizens. Throughout the 1970s and ’80s Costa Rica managed to
stay relatively peaceful compared with its war-torn neighbours. It has
one of the highest literacy rates (more than nine-tenths) in the Western
Hemisphere and a solid educational system from the primary grades
through the university level. Several renowned universities and an
active network of bookstores and publishing houses tend to make San José
the nucleus of intellectual life in Central America. Because of the
country’s peaceful reputation and its commitment to human rights,
several nongovernmental organizations and pro-democracy foundations have
their headquarters in San José. Costa Rica is also known for its strong
commitment to the environment and for protecting its numerous national
parks. These factors, along with an established ecotourism industry,
have attracted foreign investment, which shifted the country’s once
agriculture-based economy to one dominated by services and technology by
the late 20th century.
Ticos, as the people of Costa Rica are called, use the phrase pura
vida (“pure life”) in their everyday speech, as a greeting or to show
appreciation for something. Ticos are generally proud of their political
freedoms and their relatively stable economy.
Costa Rica’s well-populated heartland, formed in and around the
upland basin known as the Valle Central or Meseta Central, is devoted to
the cultivation of coffee, one of the country’s most important exports.
In the region’s outlying reaches, bananas—the principal export—are
grown. Pineapples have become a significant export, surpassing coffee as
the number two export by the late 20th century.
Land
Extending from northwest to southeast, Costa Rica is bounded by
Nicaragua to the north, by the Caribbean Sea along the 185-mile (300-km)
northeastern coastline, by Panama to the southeast, and by the Pacific
Ocean along the 630-mile (1,015-km) southwestern coastline. At the
country’s narrowest point, the distance between the Pacific and the
Caribbean is only about 75 miles (120 km).
Relief
Two mountain chains together run almost the entire length of Costa
Rica. These are, in the north, the Cordillera Volcánica, noted for its
volcanic activity, as the name implies, and, in the south, the
Cordillera de Talamanca. The Cordillera Volcánica may be divided into
three ranges, from northwest to southeast: the Cordillera de Guanacaste,
the Cordillera de Tilarán, and the Cordillera Central. Designated a
UNESCO World Heritage site in 1983, the Cordillera de Talamanca is a
massive granite batholith, quite different geologically from the
volcanically active northern ranges. Costa Rica’s highest point, Mount
Chirripó (12,530 feet [3,819 metres]), is in the Talamanca system. Two
of the highest peaks in the Cordillera Volcánica, Irazú (11,260 feet
[3,432 metres]) and Poás (8,871 feet [2,704 metres]), have paved roads
reaching to the rims of their active craters. These volcanoes,
overlooking the Valle Central, pose a serious natural hazard, as do
earthquakes for most of the country. Arenal Volcano (5,358 feet [1,633
metres]), about 56 miles (90 km) northwest of San José, is the country’s
most active volcano, continuously spewing lava and breccia. Its last
major eruption, in 1968, destroyed two villages.
The Valle Central is separated into two parts by the continental
divide. The eastern part is drained by the Reventazón River to the
Caribbean, and the western sector forms part of the basin of the Grande
de Tárcoles River, which flows into the Pacific. Another large
structural valley, the Valle del General, lies at the base of the
Cordillera de Talamanca in the southern part of the country. To the
north and east of the mountainous central spine lie the Caribbean
lowlands, constituting about one-fifth of the country and reaching less
than 400 feet (120 metres) in elevation. The Pacific lowlands, which
contain several small valleys and plains, include only about one-tenth
of Costa Rica’s territory.
Climate
Thermal convection and onshore breezes bring abundant rains to the
Pacific coast in the wet season, generally May to October in the north
and April to December in the south. Northeasterly trade winds on the
Caribbean provide ample year-round precipitation for the country’s east
coast, with the heaviest amounts occurring in the Barra del Colorado
region. The higher mountain ranges have warm temperate climates, and the
Pacific slopes have alternating wet and dry seasons.
Situated in the Valle Central at an elevation of 3,800 feet (1,160
metres), San José enjoys moderate temperatures and ample rainfall.
Average monthly rainfall there ranges from well under 1 inch (25 mm) in
February to more than 12 inches (300 mm) in September, with a yearly
average of more than 70 inches (1,800 mm). Temperatures vary with
elevation. San José has a mean temperature of 69 °F (21 °C), while means
of 59 °F (15 °C) and 80 °F (27 °C) have been reported at stations
located at 7,665 feet (2,340 metres) and 682 feet (210 metres),
respectively.
Plant and animal life
Dense broad-leaved evergreen forest, which includes mahogany and
tropical cedar trees, covers about one-third of Costa Rica’s landscape.
On the Talamanca range grow numerous evergreen oaks and, above the
timberline, mountain scrub and grasses. The northwest, with the longest
dry season, contains open deciduous forest. Palm trees are common on the
Caribbean coastline, and mangroves grow on the shallow protected shores
of the Nicoya and Dulce gulfs along the Pacific. Mosses, orchids, and
other tropical plants are abundant. Many of the world’s tropical
biologists have carried out studies at the various research stations of
the Organization for Tropical Studies, which has its headquarters in San
Pedro, a suburb of San José, as well as at the Tropical Agricultural
Research and Higher Education Centre (Centro Agronómico Tropical de
Investigación y Enseñanza; CATIE) in Turrialba.
Costa Rica’s numerous and varied life zones make the country
attractive to biologists. Mammalian life is both abundant and varied and
has major ties to South and North American populations. The South
American species include monkeys, anteaters, and sloths; the North
American species include deer, wildcats, weasels, otters, coyotes, and
foxes. There is a wide variety of tropical birds in the lowlands, and
reptiles, such as snakes and iguanas, and frogs are common.
People
Ethnic groups
Nearly four-fifths of Costa Rica’s population is of European
descent; as a result, Costa Rica has the largest percentage of people of
Spanish descent in Central America. The Valle Central, with more than
half the country’s population, is the most predominantly Spanish region
in both its manner of living and its ancestry. The next largest group
consists of mestizos (people of mixed European and Indian ancestry), who
constitute close to one-fifth of the country’s inhabitants.
The roughly one-tenth of the country’s inhabitants who live in
Guanacaste provincia (province) are a blend of the descendants of
colonial Spanish, Indian, and African peoples; the Spanish they speak is
more like that of Nicaragua than that of the Valle Central.
People of African ancestry, who comprise an even smaller percentage
of the total population, live mostly in the Caribbean lowland of Limón
province. The descendants of workers brought from the West Indies
(mainly from Jamaica) in the 19th century to build the Atlantic Railroad
and work on banana plantations, they were the targets of racism, and for
many years residence laws restricted them to the Caribbean coast.
Moreover, in the late 1930s, when Panama disease hit the banana crop on
the Atlantic coast and operations shifted to the Pacific coast, forcing
many of Limón’s inhabitants to seek work elsewhere, some Costa Ricans
lobbied for laws barring the employment of blacks. Costa Rica’s
president signed a law in 1935 prohibiting banana plantation owners on
the Pacific coast to employ “coloured” people, claiming that their
relocation would upset the racial balance of the country. It was not
until 1949 that the government abolished what was in effect Costa Rica’s
version of apartheid and allowed black residents of Limón to travel,
enter the Valle Central region, and become citizens. Discrimination is
still present in Costa Rica (though less obvious than before); many
among the country’s Spanish-descended majority consider blacks inferior
owing to economic, cultural, and perceived “racial” differences. Because
of these circumstances, the black community remains isolated from the
national culture and faces many economic and social barriers.
There is a small Chinese population, many of whom are also the
descendants of imported labourers. Although it has assimilated into
mainstream culture, the Chinese community has its own social clubs. Many
Costa Ricans of Chinese descent own businesses in the retail and
hospitality industries.
Less than 1 percent of Costa Rica’s population today is Indian.
Although estimates indicate that about 400,000 Indians lived in what is
now Costa Rica before the Spanish conquest, that number was drastically
reduced by the conquest itself, disease, and slave-raiding expeditions.
The Bribrí and Cabécar reside in the Cordillera de Talamanca, and the
Boruca (Brunca) and Térraba live in the hills around the Valle del
General. A small number of Guatuso reside on the northern plains in
Alajuela province. Most of Costa Rica’s Indians are rapidly becoming
assimilated, but those on the Caribbean side in the southern Talamanca
region maintain their separate ways, including their animistic
religions. Although Costa Rica’s Indian groups are legally assigned to
protected reserves, the land is infertile and most survive through
subsistence agriculture. They are among the country’s poorest people.
Languages
Spanish in Costa Rica is spoken with a distinctive national accent
and employs peculiar usages. Costa Ricans replace the diminutive ending
-tito with -tico (hence their nickname), a practice known elsewhere but
uncommon in Central America. Descendants of Africans in Limón province
speak both Spanish and Limonese Creole, which resembles Jamaican
English. The principal Indian languages spoken in Costa Rica are part of
the Chibchan language family and include Bribrí, Cabécar, Maléku Jaíka,
Boruca, and Térraba.
Religion
Slightly less than nine-tenths of Costa Ricans are Roman Catholics.
Roman Catholicism is the official religion, and it is supported with a
small part of the national budget; however, the constitution of 1949
provides for freedom of religion. Most of the remaining population is
Protestant, the majority of whom live in Limón province. A transplanted
community of Quakers from the U.S. state of Alabama moved to Costa Rica
in the 1950s and founded the town of Monteverde. They were essential in
the creation of the Monteverde Cloud Forest Biological Reserve. A small
Jewish community resides mostly in or near San José. An extremely small
group of Mennonites lives in the Sarapiqui area, at the base of the
Cordillera Volcánica.
Settlement patterns
Since the beginnings of European colonization, the Valle Central has
been the heartland of Costa Rica. In the 19th century, settlement slowly
expanded from the core areas around Cartago and San José into the
western parts of the valley. This expansion was based on coffee
production from small family farms. Such farms still prevail but had
become less numerous by the second half of the 19th century, when Costa
Rica started to export coffee beans. Only large farms had the capacity
and labour to prepare and package the coffee for shipment. Small
properties were bought and integrated into larger landholdings.
Nevertheless, more than half of Costa Rica’s coffee farms are 10 acres
(4 hectares) or less in size, a factor that contributes to the
democratic heritage for which the country is famed.
During the 20th century, Costa Rica’s settlement frontiers expanded
outward rapidly from the Valle Central to incorporate peripheral areas,
until virtually all the suitable lands in the country were settled and
the spread of population effectively ended.
In the Caribbean lowlands the banana industry thrived from the 1880s
until the 1920s, when Panama disease forced closure of the plantations.
New disease-resistant varieties of bananas allowed reestablishment of
the Caribbean plantations in the late 1950s, thus reviving the economy.
The southern Pacific coastal region was opened for banana production
about 1938 by the development of plantations around Parrita and Golfito.
After World War II, competition from other banana-producing countries
increased, causing national production to decline, and the last
company-owned plantations in the Pacific region were closed or replanted
with oil palms by 1985. Elsewhere in the south, habitation of the Valle
del General increased rapidly following construction of the
Inter-American Highway during World War II and into the 1950s.
The San Carlos Plain, part of the northern lowlands, was settled
mainly after 1945, when roads were built that connected it with the
Valle Central. In the 1970s and ’80s more new roads brought additional
expansion of agriculture and cattle grazing to this fertile area.
The northwestern province of Guanacaste—where many people work on
large cattle ranches, or haciendas, while also maintaining small
agricultural plots of their own—was once a part of Nicaragua and still
retains a variety of Nicaraguan cultural influences. In many ways, this
is the least traditionally Costa Rican part of the country.
San José is the only true metropolitan area in Costa Rica. The
congested downtown contains major stores, government buildings, and the
offices of many businesses. The few high-rise buildings are located in
this city centre. Outside the downtown, San José has expanded outward to
incorporate surrounding towns. The San José metropolitan area, which
contains overall about one-fourth of Costa Rica’s population, is a
functionally integrated urban region that reaches from Alajuela and
Heredia on the west to Cartago on the east.
Demographic trends
In the mid-20th century, Costa Rica’s population growth rate was
among the highest in the world. As general prosperity and urbanization
increased, however, the population growth rate decreased despite a drop
in both the general and the infant mortality rates. This decrease in the
population growth rate was largely attributable to the fact that by the
late 20th century, middle-class Costa Rican families were having fewer
children than previous generations. Life expectancy in Costa Rica is
substantially longer than in most other Central American countries and
is more comparable to life expectancies in developed countries.
European immigration and customs have helped to mold Costa Rican
history and influence its character. German, Italian, and British
immigrants in the 19th century left an imprint on Costa Rican education,
science, and culture. In the 1970s immigrants mainly came from
Argentina, Chile, and Colombia. However, in the 1980s immigrants and
refugees arrived from nearby countries. Economic problems and political
and armed conflict in Nicaragua and other Central American countries
drove thousands of refugees (mainly mestizos) into Costa Rica, altering
the ethnic composition of the country. Since the 1990s there has been a
constant flow into Costa Rica of Nicaraguans, more than 400,000 of whom
were estimated to be living in the country in the early 2000s. Many of
these immigrants face barriers in housing, education, and health care
and live in rundown neighbourhoods. During Nicaragua’s dictatorship and
civil war in the 1980s, the Costa Rican government set up refugee camps
to aid its neighbours. Furthermore, after Hurricane Mitch in 1998, Costa
Rica granted asylum to many Nicaraguan refugees. In the early 2000s,
however, the government enforced harsher measures to control illegal
immigration, including tighter border controls and fines for businesses
that employed undocumented workers. It is estimated that one-tenth of
the Nicaraguans in Costa Rica are illegal aliens. Nationwide polls show
that many Costa Ricans possess negative stereotypes of Nicaraguans.
Costa Rica has also become a mecca for retirees from the United States,
tens of thousands of whom now live there.
Economy
Costa Rica is neither rich, as its name (“Rich Coast”) implies, nor
as poor as many of its neighbours. The country’s wealth is better
distributed among all social classes than elsewhere in Central America.
During the 1980s the Costa Rican standard of living declined somewhat as
a result of economic stagnation and inflation, but by the 1990s and into
the 21st century the country was again vying with Panama and Belize for
Central America’s highest per capita gross national product (GNP).
The government controls key utilities, including electricity, water,
fixed-line telephone, and port and rail facilities, and the entire
population is eligible for free medical care, but private enterprise is
still strong and influential in policy making. Continuous efforts to
diversify the economy have succeeded in reducing the traditional
dependence on agricultural exports, particularly coffee, bananas, and
beef. Despite stringent efforts to reduce spending, the Costa Rican
government operates at a deficit, a condition that has fed the country’s
already large international debt. The economy rebounded after the
economic stagnation of the 1980s; by the beginning of the 21st century,
the rate of annual GNP growth was above the Central American average and
was double the world average, while the country’s chronic inflation had
been brought largely under control. Per capita national debt, however,
is among the largest in Central America.
Agriculture, forestry, and fishing
Notwithstanding the country’s traditional dependence on agriculture,
less than one-sixth of economically active Costa Ricans work in the
agricultural sector, which contributes about one-tenth of GNP. Sugar and
coffee, from the highlands; bananas, produced mainly in the Caribbean
lowlands; and pineapples, grown in farms located throughout the country,
are some of the most important crops, accounting for nearly half the
total value of all exports. Nontraditional agricultural products such as
cut flowers, gourmet coffee, herbs, and macadamia nuts have increased in
importance, and manufactured food products, fertilizer, handicrafts,
garments, and publishing also have made inroads in the traditional
economy. Palm oil for domestic consumption is an important product from
the southern Pacific lowlands. Costa Rica has the capacity to feed
itself but dedicates a large share of its land to the production of
export crops.
Extensive deforestation went unchecked in the last few decades of the
20th century, when much of Costa Rica’s timber reserves were cleared to
make way for pasture or cropland. But by the end of the century the
government had taken measures to limit use of trees for wood and fuel,
had joined the private sector in further managing forest harvesting, and
was compensating owners of woodlands for the environmental benefits of
maintaining their forests. The best remaining stands of tropical
hardwoods are in protected parks and forest reserves.
Costa Rica’s fishing industry, concentrated mostly on the Pacific
coast and focusing primarily on tuna and shrimp, supplies both the
domestic market and exports. Tilapia fish farming, which grew
significantly in the 1990s, has made Costa Rica the principal supplier
of tilapia to the United States.
Resources and power
Costa Rica’s agricultural land and climate are its most important
natural resources. The country has few mineral resources. The most
important are the yet-unexploited bauxite deposits in the General and
Coto Brus valleys and copper in the Cordillera de Talamanca. There is
manganese on and near the Nicoya Peninsula, gold on the Osa Peninsula
and parts of the Pacific slopes, and magnetite on scattered beaches,
particularly on the southern Caribbean coastline. Geologic conditions
are promising for petroleum in the southern Caribbean coast, but
exploration has proved disappointing. For many years a number of
hydroelectric plants have supplied domestic needs and provided a surplus
for export. In fact, by the early 21st century about four-fifths of the
country’s electricity was produced from these plants, which do not emit
greenhouse gases. The Angostura hydroelectric plant in central Costa
Rica, which began operations in 2000, is the country’s largest.
Manufacturing
Manufacturing contributes about one-fifth of Costa Rica’s GNP and
employs approximately one-sixth of the economically active population.
Most industry is concentrated in the Valle Central, but a few plants
operate in Puntarenas and Limón. Food and beverage processing, soap,
paper, pharmaceuticals, and furniture making are domestically important.
The main items manufactured for export are machinery, food products,
textiles, and chemical and electronic products.
By the late 1990s Costa Rica had started to shift from an
agriculture- and textile-based economy to a high-tech industrial one,
though the textile industry rebounded in the late 20th century, largely
owing to the development of plants making clothing from imported cloth
for export to the United States. The U.S.-based Intel Corporation opened
a large microprocessor semiconductor assembly and testing facility in
Costa Rica in 1997, providing thousands of jobs. Since then, other large
foreign technology and pharmaceutical companies have followed, attracted
by the country’s location, political stability, high number of college
graduates, and tax incentives.
Finance
Costa Rica has both state-owned and private banks, and a national
federation of savings and loan cooperatives supervises an extensive
network of local agencies. Its national currency is the colón. There is
a small national stock exchange. Insurance is a state monopoly
controlled by the National Insurance Institute. Costa Rica is generally
favourable toward foreign investment, and foreign-owned companies
control a large segment of both agricultural and industrial production.
Permitted in Costa Rican free trade zones, foreign direct investment
(FDI) now generates about one-third of the country’s exports, compared
with only one-tenth in the 1990s.
Trade
Since the late 1980s Costa Rica’s exports have diversified beyond
the traditional staples of coffee and bananas. With the arrival of Intel
and other technology companies, computer microchips became the country’s
top export in the early 21st century. Coffee, bananas, and pineapples
are still shipped in great quantities to the United States and western
and central Europe. Other exports of importance include textiles, fish
and shrimp, sugar, and cut flowers. Beef, formerly the third largest
export, has declined in importance.
More than two-fifths of exports go to the United States; other
countries receiving Costa Rican exports include China, The Netherlands,
Germany, Nicaragua, and Guatemala. Costa Rica maintains a strong trade
relationship with China, with which it officially established diplomatic
relations in 2007 (after breaking ties with Taiwan).
Costa Rica imports staples such as corn (maize) and beans (which it
could produce but does not) from its neighbours, along with products
such as wheat (from the United States), for which the Costa Rican
climate is not suitable. Nonfood imports include insecticides and other
chemicals, machinery, and crude oil and petroleum products. More than
two-fifths of imports come from the United States; most of the rest
originate in Japan, Mexico, Brazil, and Venezuela. In 2007 Costa Rica
approved the implementation of the Central America–Dominican Republic
Free Trade Agreement (CAFTA–DR) with the United States by a slim margin
in a public referendum.
Services
The service industry accounts for more than three-fifths of GNP. A
substantially larger number of Costa Ricans are employed in the service
industries than in manufacturing. Commerce, finance and real estate,
tourism, public administration, transport, construction, and utilities
are other important branches of economic activity. By the mid-1990s,
tourism had soared beyond the banana industry to rank first as a source
of foreign exchange and income. Costa Rica’s rainforests, national
parks, beaches, volcanoes, and biodiversity attract tourists, as does
its reputation as a stable country. Resorts, condominiums, and other
developments continue to be built along the coasts and around major
tourist attractions.
Labour and taxation
Though the break between the wealthy and manual workers is less
distinct in Costa Rica than in other Central American countries, there
remains a large number of agricultural and industrial labourers who earn
very low wages. The poorest areas are the province of Limón, the
Cordillera de Talamanca, the northern lowlands, and isolated parts of
the Pacific coast. The San José metropolitan area stands out as the area
of greatest affluence. About one-third of the documented workforce is
made up of women. Nicaraguan immigrants make up about one-tenth of
manual labourers (mainly in the agriculture and construction sectors) in
Costa Rica. Their presence has helped keep production costs low for
agricultural exports.
Costa Rica has municipal, sales, transfer, and income taxes.
Corporations are also taxed.
Transportation and telecommunications
The hub of Costa Rican transportation is in the Valle Central. A
highway extends west from San José to beyond San Ramón. Additional
highways, completed in the 1980s and ’90s, have greatly reduced distance
and travel time between San José and the Caribbean lowlands. Elsewhere
in the Valle Central are narrow, often tortuous, paved routes, with few
interconnections, that reach the many valley and mountain communities in
the immediate area. The Northern Pacific Railroad, which connected San
José to the Caribbean coast, suffered severe damage from floods and was
abandoned in 1991. The electric rail line from San José to Puntarenas
discontinued long-distance service at about the same time but continues
to operate locally. The Inter-American Highway connects Costa Rica with
Nicaragua to the north and Panama to the south.
Limón and Puntarenas have port facilities constructed at nearby Moín
and Caldera, respectively. These facilities are equipped to handle
containerized cargo and, in the case of Moín, petroleum shipments. The
southern Pacific port of Golfito, once an important banana-shipping
centre, handles little trade since the decline of banana production
there. Limón is the busiest of the three ports.
Juan Santamaría Airport, about 15 miles (24 km) west of San José, is
Costa Rica’s main international airport. There is also an international
airport in Liberia, a gateway to many Pacific coast beach resorts.
Lineas Aereas Costarricenses (LACSA), the Costa Rican national airline,
maintains regular service to Central American and Caribbean locations as
well as to the United States. Elsewhere in the country are smaller
airports, some with paved and some with gravel strips, that are used by
small planes and offer local service.
Telecommunication services have been provided through the Costa Rican
Institute of Electricity (Instituto Costarricense de Electricidad; ICE),
a state-owned monopoly since 1949. In 2008 Congress approved a bill to
end the ICE’s monopoly and to open the cellular phone and Internet
service markets to competition, reforms that were required for
compliance with the terms of CAFTA–DR. Attempts to privatize the
industry had been deterred by widespread strikes and protests beginning
in 1999. Costa Rica has some of the highest rates of Internet and
cellular phone usage in Central America. Because of the excess demand
for cellular phones, paging services have become popular, and there are
several in the country. The broadcasting sector also has been
privatized.
Government and society
Constitutional framework
Costa Rica is governed by its constitution of November 1949, the
10th in its history. A president, two vice presidents, and a unicameral
Legislative Assembly are elected at the same time for a term of four
years, the assembly by proportional representation. Presidents may not
run for immediate reelection, though they are eligible to serve again
after sitting out two successive presidential terms.
Since the adoption of the constitution of 1949, Costa Rica has given
an unusual degree of power to autonomous agencies, including
state-financed universities and regional development institutes such as
the National Insurance Institute, the Social Security Institute, and the
Costa Rica Tourist Institute. These agencies provide additional
opportunity for participation in government, but because of powers
independent of the central administration they have made central
planning more challenging.
Local government
The country’s seven provinces are administered by governors
appointed by the president. The provinces represent judicial and
electoral jurisdictions; most government agencies with their own
administrative branches may not account for provincial boundaries. Each
province is divided into cantones (cantons), and each canton is divided
into distritos (districts). Councilmen for the cantons are elected
locally, but budgets for all political units are approved by the
national government, which controls nearly all the funds available to
local governments.
Justice
In the Costa Rican system of justice, cases may be decided by a
single judge or by a panel of judges; the jury system is not used, but
the courts are generally noted for their fairness. Capital punishment is
banned, and sentences to the penitentiary must be for a stated number of
years. The highest court is the Supreme Court of Justice. Magistrates of
the Supreme Court are chosen by the assembly for eight-year terms and
automatically continue for a second eight-year term unless removed by a
two-thirds vote. An independent Supreme Electoral Tribunal, which has
extraordinary powers during elections, oversees the election process.
Political process
All citizens over age 18 are obliged to register to vote and to
participate in elections. Voter turnout has traditionally been high,
averaging about four-fifths of eligible voters from the 1960s through
1994, before falling thereafter. Costa Rica has a stable democratic
government. The fairness of national elections has been indicated by the
fact that almost every four-year period since the mid-20th century has
seen a change in the party winning the presidency. Two parties have
traditionally dominated: the National Liberation Party (Partido de
Liberación Nacional; PLN), which since 1949 has controlled the National
Assembly more often than not, and the Social Christian Unity Party
(Partido Unidad Social Cristiana; PUSC). The former, founded by the
moderate socialist José Figueres Ferrer in 1948, was largely responsible
for establishing the health, education, and welfare reforms for which
Costa Rica is noted. The PUSC, a four-party coalition formed in 1977, is
more conservative and business-oriented than the PLN. In 2000 the
Citizen Action Party (Partido Acción Ciudadana; PAC) was founded as an
alternative.
Security
Costa Rica has no army and promotes demilitarization elsewhere as a
part of its foreign policy. It maintains a nonconscripted civil guard
that has police duties. There also are district police.
Health and welfare
Costa Rica has greatly reduced the incidence of diseases associated
with tropical climates. Malaria has been virtually eliminated except in
the border areas with Nicaragua; waterborne diseases are rare; and
mortality rates are low. The incidence of cancer and heart disease has
risen, however. Costa Rica’s Social Security Institute, founded in the
1940s, is often considered a model for other Latin American countries.
A number of agencies promoting human rights have established
headquarters in San José, including the Inter-American Court of Human
Rights and the Inter-American Institute of Human Rights. The Arias
Foundation for Peace and Human Progress, created in 1988 by Oscar Arias
Sánchez following his receipt of the Nobel Peace Prize, lobbies for
gender equity and equal opportunity and peace and security and includes
a higher education and research division.
Education
The constitution provides for free and compulsory education. The
central government oversees school attendance, curricula, and other
educational matters. About one-fourth of the country’s budget is
allocated to education, and more than nine-tenths of the population is
literate. School attendance is relatively high, with more than
nine-tenths of children age 6 to 11 enrolled in primary schools and more
than three-fifths of students age 12 to 16 enrolled in secondary
schools.
The University of Costa Rica (1941) has a well-planned, functional
main campus in San Pedro, a suburb of San José, as well as a number of
branches in outlying cities; the National University has a smaller
campus in Heredia; and the “open” university, Universidad Estatal a
Distancia (1977), offers courses by television from offices in San José.
The Autonomous University of Central America (1976) is also located in
San José, as are several private institutions of higher education.
Through the initiative of Pres. Rodrigo Carazo Odio (1978–82), Costa
Rica became the home of the University for Peace in 1980. The
Technological Institute of Costa Rica (Instituto Tecnológico de Costa
Rica [ITCR]; founded in 1971 in Cartago) provides engineering and other
technical training. Scores of foreign universities maintain exchange
programs with Costa Rica’s universities.
Cultural life
Cultural milieu
Most Costa Rican diversions are cosmopolitan rather than
nationalistic in nature. Ticos attend films with great frequency,
enjoying international cinema. They listen to an extraordinary variety
of music, especially from the many radio stations in the country. Cable
television enables them to keep up with global events. Residents of the
Valle Central attend the National Theatre, where the music played and
the drama performed may come from any part of the world. Extended family
and other personal connections through school, business, political, or
religious associations are very important to ticos.
As a predominantly Roman Catholic country, Costa Rica observes many
holy days and feasts. Among the most important are Semana Santa, or Holy
Week, when most of the country’s towns suspend business for several days
of ceremonies and parades, and the Day of the Virgin of Los Angeles
(August 2), which honours Costa Rica’s patron saint and is marked by
fireworks and feasting. On a secular level, Juan Santamaría Day (April
11) celebrates the Costa Rican patriot who organized a volunteer army to
turn back the invading American adventurer William Walker in 1856. The
Guanacaste region, in Costa Rica’s northwest, is known for raising
cattle, and in late July several of its towns hold fairs that feature
bullfighting, dancing, equestrian competitions, and cavalcades.
Celebrations in San José draw crowds to its unique collection of
plazas—notably the Democracy, Culture, Free Elections, and Social
Guarantees plazas.
The arts
Costa Ricans take a strong interest in their pre-Columbian art,
which includes large stone statues from the Pacific northwest of the
country, exquisitely carved stone spheres (probably cemetery markers)
from the Pacific southwest region, and fine figurines of gold and jade.
The fine arts have seldom flourished in Costa Rica, but they have
received some impetus from government support, particularly with the
creation in 1970 of the Ministry of Culture, Youth, and Sports.
Painting, sculpture, and music all showed considerable development in
the latter part of the 20th century. Particular pride was taken in the
growth of the National Symphony Orchestra since 1971, with the ensemble
playing large halls and also taking music to the countryside. Costa
Ricans have been marginally active in the field of literature. Roberto
Brenes Mesén and Ricardo Fernández Guardia were widely known in the
early 20th century as independent thinkers in the fields of education
and history, respectively. Fabián Dobles and Carlos Luis Fallas have
attracted international attention as writers of novels with social
protest themes. Carmen Naranjo is one of several noted female writers.
Among the folk arts, Costa Rica is most famous for its highly decorated
oxcarts and wood carvings.
Cultural institutions
Most of the country’s cultural institutions are centred in and
around the capital. The country’s architectural crown jewel, the
Renaissance-style National Theatre (1897), on the south side of the
Plaza of Culture, features statues, marble staircases, magnificent
murals depicting Costa Rican life, and a ceiling fresco. The National
Museum in downtown San José houses the country’s largest collection of
pre-Columbian art. A fine collection of gold objects can be found in the
Pre-Columbian Gold Museum, located beneath the Plaza of Culture. The
Fidel Tristan Jade Museum contains the largest collection of jade in the
Americas. Outside of San José, Guayabo National Park, near Turrialba,
features the country’s only preserved pre-Columbian archaeological site.
Because of the small population in the colonial period and the absence
of significant wealth at that time, genuine colonial architecture is
rather scarce, the most famed example being a 17th-century mission in
the town of Orosí. Cartago’s older buildings, destroyed by earthquakes,
have in some cases been restored; new ones like them have also been
built.
Sports and recreation
As elsewhere in Central America, football (soccer) is the Costa
Rican national pastime, and there are dozens of local and provincial
teams. The sport was introduced to the country by English settlers in
the early 20th century, and succeeding generations have refined an
aggressive style of play that has repeatedly earned Costa Rica’s
national team the Central American Soccer Union (Unión Centroamericana
de Futbol; UNCAF) Nations Cup as the champions of Central America.
Although its Olympic committee was not founded until 1953, Costa Rica
participated in the 1936 Summer Games in Berlin, and Costa Rican
athletes have attended every Summer Games since 1956, finding their
greatest success in football. But it was swimmer Claudia Poll Ahrens who
won the country’s first gold medal, in the 200-metre freestyle event at
the 1996 Summer Games in Atlanta.
Costa Rica has developed the largest national park system, relative
to its size, of any Latin American country. These parks include a
sweeping range of tropical ecosystems, such as tropical rainforest
(Corcovado National Park; Manuel Antonio National Park), cloud forest
(Monteverde), dry forest, and elfin forest. Other parks include active
volcanoes, turtle nesting sites (Tortuguero National Park, Playa Grande,
and Ostional National Wildlife Refuge), and coral reefs (Cahuita
National Park). International tourists are attracted by these parks,
some of which are noted worldwide for their vegetation and wildlife. The
country’s national beaches are a major attraction for Costa Ricans as
well, who flock to them on weekends and major holidays. Popular beaches
include Manuel Antonio, Conchal, Flamingo, Tamarindo, and Grande.
Although it features picturesque uncrowded beaches on both its
Caribbean and Pacific coasts, Costa Rica was somewhat late in developing
an ocean sports industry. That changed when Costa Rica’s Pacific beaches
were prominently featured in the 1994 American film The Endless Summer
2. Surfers from around the world began to descend on such magnificent
surfing spots as El Potrero, Roca Bruja, Pico Pequeño, Callejones, Mal
País, and Puerto Viejo. The last, lying alongside a tall coral reef,
offers especially challenging surfing. Others flock to the same beaches
for their outstanding diving sites and clear, warm waters. Sportfishing
on both the Atlantic and Pacific coasts is popular with tourists.
Media and publishing
Numerous publishing houses operate in the country, issuing both
fiction and nonfiction on a wide range of topics. The
government-operated Editorial Costa Rica and publishing outlets of major
universities are the most prolific of the publishing houses. Both the
number and variety of publications available in Costa Rican bookstores
surpass those of any other Central American country and some South
American countries as well. La Nación (“The Nation”), an independent but
conservative daily, is the most widely read of Costa Rica’s newspapers.
It is balanced by La Républica (“The Republic”) and La Prensa Libre
(“The Free Press”), independents that lean more toward reform ideas. The
Tico Times, an English-language newspaper, has established a reputation
for its investigative reporting. There are several television stations,
one of which is government-owned.
Franklin D. Parker
Gary S. Elbow
Charles L. Stansifer
History
In 1502 Christopher Columbus’s fourth Atlantic voyage brought him
to the shores of Costa Rica, where he remained for 18 days refitting his
ships. Relations with the native people became friendly enough that they
brought him a number of items of gold, possibly prompting Columbus to
name the land “Rich Coast,” although there is some dispute over the
origin of the name. Other more promising regions forced Spain to neglect
the area, however, and the first significant settlement in what is now
Costa Rica did not take place until much later. In 1564 the Spanish
crown established the village of Cartago in the Valle Central, or Meseta
Central, as the first permanent settlement.
Theoretically under the political jurisdiction of the captain general
of Guatemala and the spiritual guidance of the bishop of León in
Nicaragua, Costa Rica was largely ignored by both administrations. The
absence of precious metals meant the collection of few taxes from the
ticos, as Costa Ricans are called; consequently Spain provided little
help in developing the infrastructure of the province. Compared with
other colonies, Costa Rica lacked the large labour force so essential in
the Spanish scheme of conquest. The Indian population drastically
declined during and immediately following conquest; any survivors
resisted capture by disappearing into the forests rather than succumbing
to the encomienda, Spain’s usual system of forced labour. Lacking
products for a great overseas market, the Costa Ricans eked out a
subsistence economy based on cacao (the source of cocoa beans) and
tobacco. Hence, most people were small landowners with a close personal
interest in local affairs. Historians often give credit to these
developments for the growth of the democratic ideals that have become
associated with Costa Rica. It should be noted, however, that some
persons who became rich established a small finca- (estate-) based
oligarchy, which provided political leadership well into the 20th
century.
Independence
When Mexico declared its independence from Spain in 1821, Costa
Rica, with other parts of Central America, joined the short-lived
Mexican Empire. In 1823 Costa Rica helped create the United Provinces of
Central America but, disenchanted with the strife in the other four
states of the federation, severed its ties in 1838. A pattern of
isolationism similar to that of the colonial period was reinforced.
Indeed, Costa Ricans invariably showed little interest in the many
attempts to revive the federation throughout the 19th and most of the
20th century, until their country joined the Central American Common
Market in 1962.
Costa Rican leaders soon realized the potential for coffee
cultivation and strove to promote coffee planting. From the 1840s a
constant stream of oxcarts carried coffee from the Valle Central to
Pacific ports and ships bound for Europe. This trade triggered British
investment. Unlike sugar and indigo planters, coffee farmers with even
small acreage could derive an adequate if simple existence, and Costa
Ricans achieved a competitive advantage over coffee farmers in other
Latin American countries.
Costa Rica’s policy of isolationism did not completely save it from
foreign troubles. In 1825 the province of Guanacaste seceded from
Nicaragua and joined Costa Rica, creating an issue that was contended
until the boundary treaty of 1896. Political refugees from other Central
American countries attempted, and occasionally succeeded, in involving
Costa Rica in regional conflicts. Another danger developed when William
Walker and his band of filibusters took over Nicaragua in 1856,
threatening all of Central America. Costa Rican troops participated in
the Central American coalition force that drove Walker out of the
region.
Material progress came to Costa Rica during the era of Gen. Tomás
Guardia, who dominated the country from 1870 until 1882. His government
curtailed liberty and added to the debt, but it also brought increases
in coffee and sugar exports as well as widespread construction of
schools. A new constitution, adopted in 1871, remained in effect, except
for a brief interlude (1917–19), until 1949. The emphasis on
agricultural exports strained transportation, and, with mainly British
funds, Costa Rica sought to link the Valle Central with the seaports by
railway. The chief promoter was an American, Minor C. Keith, who made a
fortune with the opening of his rail line between Cartago and Limón.
With vast land grants, Keith then entered the banana business. By the
late 19th century, bananas were beginning to rival coffee as the chief
source of Costa Rican foreign exchange, especially after Keith’s
investments were merged with others to form the United Fruit Company in
1899.
The last decades of the 19th century were also marked by a gradual
decline in Roman Catholic Church activity in secular affairs. The
Jesuits were expelled for a few years, cemeteries were secularized, and
public education was expanded. In 1886 free public education became
compulsory; public schools, a museum, and a national library were
founded. Though the government continued to support the church, the
constitution of 1871 provided for religious toleration. Strengthening
the tradition of democracy for which Costa Rica was to become famed
throughout Latin America was the victory in 1889 of Pres. José Joaquín
Rodríguez in what is considered the first entirely free and honest
election in all of Central America.
Costa Rica in the 20th century
In the early 20th century Costa Rica and four other Central American
republics established the Central American Court of Justice, the first
international court with wide juridical powers. The headquarters were
established in Cartago, but, when the building was destroyed in the 1910
earthquake, the headquarters were moved to San José. One of the court’s
landmark cases involved the Bryan-Chamorro Treaty of 1916, which gave
the United States permission to use the San Juan River (the border
between Nicaragua and Costa Rica) as part of an interoceanic canal
route. Costa Rica protested that Nicaragua was violating preexisting
treaty rights and that opening a route would threaten Costa Rican
security. The claim was brought before the court, which ruled in Costa’s
Rica’s favour; however, Nicaragua refused to accept the ruling and
withdrew from the court. Because of Nicaragua’s withdrawal and an
overall ineffective judicial procedure, the court dissolved in 1918
after 10 years in existence. However, the building in San José, which
had been constructed with help from a donation by U.S. philanthropist
Andrew Carnegie, became the home of Costa Rica’s Ministry of Foreign
Relations.
Costa Rica’s boundary with Panama (originally with Colombia, before
Panamanian independence) was also in dispute. Arbitration awards by
France and the United States in 1900 and 1914, respectively, had been
generally favourable to Costa Rica but were rejected by Panama. In 1921
Costa Rica attempted forcible occupation of this area (on the Pacific
coast) but was diverted by the intervention of the United States. Panama
then evacuated the region, but relations between the two small states
were not reestablished until 1928. In 1941 the governments finally
reached an accord over the boundary.
Transition to democracy
Meanwhile, Costa Rica suffered an interruption in its march toward
democratic, civilian-controlled government. When the country held an
election under direct suffrage for the first time, in 1913, no candidate
won a majority, and the Legislative Assembly chose Alfredo González
Flores as president. Disgruntled over tax reforms proposed by González,
Gen. Federico Tinoco Granados in 1917 led one of the country’s few
coups. Tinoco’s despotic behaviour soon cost him his popularity. His
administration was also impeded by the refusal of the U.S. government to
recognize his regime, and revolts and the threat of U.S. intervention
caused him to resign in 1919.
This experiment in dictatorship was not repeated, and Costa Rica
continued its tradition of democratic elections and orderly government.
A literacy test for voters was adopted in 1920 and the secret ballot in
1925. Costa Rica’s most serious political crisis since 1917 came in
1948. Former president Rafael Angel Calderón Guardia (1940–44) formed an
unusual political coalition consisting of members of the communist
Popular Vanguard Party and the Catholic Church to bring about
significant improvement in workers’ conditions and social security. Some
thought the coalition went too far when it tried to prevent the seating
of the president-elect, Otilio Ulate, a Social Democrat. José Figueres
Ferrer, an outspoken landowner who favoured a greater role for state
enterprise, organized local and foreign militia and trained them at his
farm. His army, which evolved into the National Liberation Party
(Partido Liberación Nacional; PLN), launched a successful rebellion
against the government and sparked a brief civil war in which about
2,000 civilians were killed. The war ended after a compromise was
reached under which Figueres promised to restore order, to preserve some
of Calderón’s reforms, and to then turn over the presidency to Ulate.
Figueres led the country for 18 months. A new constitution, promulgated
in 1949 by Figueres’s regime, prohibited the establishment or
maintenance of an army, established women’s suffrage, strengthened the
electoral tribunal, abolished institutionalized racism, nationalized the
banking system, and gave great powers to state corporations, known as
autonomous agencies. Then, as promised, the junta turned the government
over to Ulate. Figueres was elected twice in his own right, in 1953 and
again in 1970, establishing his PLN as the dominant group in the
Legislative Assembly.
Costa Rica from 1974 to 2000
In 1974 Daniel Oduber succeeded Figueres as president. Although both
belonged to the PLN, Oduber and his predecessor soon fell out over
Figueres’s ties to the U.S. financier Robert Vesco, who had found refuge
in Costa Rica from an indictment on conspiracy charges in New York City.
Vesco left Costa Rica in 1978, but the splintering of the PLN made
possible the presidential victory of Rodrigo Carazo Odio of the Social
Christian Unity Party (Partido Unidad Social Cristiana; PUSC) in that
year. Carazo faced serious diplomatic and economic problems. When the
Sandinista insurgency broke out against the Somoza regime in Nicaragua,
strong anti-Somoza feeling in Costa Rica resulted in Costa Rican
government support of the Sandinista cause. After the Sandinistas were
successful and began to drift closer to the Soviet bloc and to support
drastic change in Central America, public opinion in Costa Rica shifted
against the new Nicaraguan regime. Diplomatic relations deteriorated.
Thousands of Nicaraguans and other Central American refugees escaping
civil war or civil rights abuses fled to Costa Rica and strained the
country’s capacity to absorb them. Many refugees were deported for using
Costa Rica as a military base.
Even more enduring were the country’s economic troubles. Although
Costa Rica remained politically stable, Central America’s conflicts
discouraged tourism. Economic growth slowed to very near zero when the
price of oil became so high that almost all of the country’s coffee crop
income was needed to pay for foreign oil. Inflation rates fluctuated
sharply, and unemployment rose. Hospital, dock, banana, and railroad
workers received small pay raises after staging disruptive strikes. Many
years of easy credit, excessive government spending, and unfavourable
trade balances brought the country to the brink of economic ruin. Carazo
and the bankers failed to reach an agreement and left the problem for
the new president, Luis Alberto Monge Álvarez of the PLN, who took
office in 1982. In return for extending Costa Rica’s debts, the
International Monetary Fund and the World Bank insisted that Monge
impose severe austerity measures, including devaluation of the colón,
budget and tax cuts, and suspension of some subsidies.
In addition to his economic woes, Monge had to face pressure from the
United States to cooperate with the anti-Sandinista counterrevolution
based in Honduras, while public opinion pressed for neutrality. Monge
opted to declare his country’s official neutrality but secretly
cooperated with the United States.
In 1986 Monge was succeeded by another member of the PLN, Oscar Arias
Sánchez, who faced many of the same economic problems. Costa Rica
continued to be beset by nearly $5 billion in foreign debt, too-rapid
urbanization, inadequate housing, unemployment, and adjustments
necessitated by privatization of state monopolies. More than one-third
of the country’s income was derived from international loans. Civil wars
elsewhere in Central America continued bringing thousands of fugitives
into Costa Rican exile, and illicit drug traffic imposed new forms of
corruption on the land.
Aside from some easing of the debt structure, Arias could accomplish
little with these matters, but he created for himself a powerful role in
international affairs. A wealthy coffee grower and political scientist
educated in England, Arias spent most of his term leading a regional
peace movement designed to end the bitter Contra war in Nicaragua and
guerrilla conflicts in El Salvador and Guatemala. Because he refused to
aid the Contras, he expected and received little support from the United
States, but he achieved considerable success in rallying forces in
Central America in favour of ending conflict. He did more than any other
person to reduce tensions and create machinery to end the bloody Central
American struggles. In 1987 President Arias received the Nobel Prize for
Peace for his efforts.
Thomas L. Karnes
Charles L. Stansifer
Arias, constitutionally ineligible to run in 1990, was succeeded by
Rafael Angel Calderón Fournier of the PUSC. Calderón Fournier, son of
the reform president of the 1940–44 period, Rafael Angel Calderón
Guardia, had lost two previous presidential campaigns. Calderón Fournier
had campaigned to expand social welfare programs and to reduce income
inequalities, but, faced with a large budget deficit, he instead enacted
austerity measures, costing him and his party popularity. As president,
he inaugurated the Plaza of Social Guarantees in honour of his father’s
establishment of social security. But the 1990s dictated different
measures, and Calderón Fournier presided over neoliberal policies,
including eliminating protectionist legislation and favouring
privatization of banks and other state agencies. These steps and lower
petroleum prices helped to improve the country’s economic condition.
Peace in Central America helped tourism, but world markets for Costa
Rica’s traditional agricultural products slowed the flow of foreign
exchange.
In 1994 PLN candidate José María Figueres Olsen (the son of
three-time president José Figueres Ferrer) won the presidency, defeating
the PUSC’s Miguel Angel Rodríguez Echeverría, though the PLN failed to
win an outright majority in the Legislative Assembly. Figueres’s policy
prescriptions for Costa Rica’s ailing economy—spending cuts and tax
increases—alienated large segments of the public. His government was
also hurt by the World Bank’s refusal to grant Costa Rica money to
finance its structural adjustment program. The fiscal crisis led to an
accord between the PLN and PUSC that enabled the enactment of reforms.
In 1996 Costa Rica’s economic difficulties were compounded by Hurricane
Cesar, which caused widespread damage, particularly in the southern part
of the country.
While Figueres’s presidential campaign indicated that he shared some
of his father’s faith and the PLN’s traditional support of statist
policies, he spent much of his time courting private enterprise.
Although gross national product (GNP) in the 1996–98 period was still
low, Figueres could claim credit for reducing inflation by nearly half.
By reforming the public pension system and improving tax collection, the
Figueres government significantly reduced the deficit as a percentage of
the GNP. The Costa Rican government, long considered an example of a
bloated bureacracy, was coming down to size, whether controlled by the
PUSC or the PLN.
In 1998 the PUSC’s Miguel Angel Rodríguez, promising to reduce
poverty and improve the lives of women and young people, was elected
president. With tourism booming and Costa Rica able to attract foreign
investment, particularly from high-technology firms, the economy
rebounded.
Costa Rica in the 21st century
The 2002 presidential and legislative elections shattered the stable
two-party system that the country had enjoyed for several decades.
Although the PUSC retained the presidency, its nominee, Abel Pacheco de
la Espriella, was forced into an unprecedented runoff, as no candidate
garnered at least 40 percent of the vote in the first round. In
elections to the Legislative Assembly, the Citizen Action Party (Partido
Acción Ciudadana; PAC) won 14 seats, denying an overall majority to
either the PUSC or the PLN.
The following year Costa Rica’s Supreme Court annulled the 1969
legislative reform of the constitution that limited a president to a
single four-year term, thus reverting to the 1949 constitution, which
enabled a former president to seek the presidency again after having
been out of office for eight years. The annulment allowed former
president and Nobel Peace Prize winner Arias to announce his candidacy
for president in 2004. During this time, Pacheco’s administration
experienced a growing budget deficit and was scarred by the discovery of
funds from his campaign in Panamanian banks. Also, three past presidents
of his party, the PUSC, were charged with accepting bribes and placed
under house arrest. Moreover, former president Rodríguez was forced to
resign as secretary-general of the Organization of American States to
return to Costa Rica to respond to these corruption charges.
Arias won the presidency in the 2006 elections, beating Ottón Solís
Fallas of PAC by a slim margin. He proposed ending state-run monopolies
in electric power, social security, and telecommunications and favoured
ratifying the Central America–Dominican Republic Free Trade Agreement
(CAFTA–DR) with the United States, despite protests from trade unions
and other organizations. Costa Rican citizens voted in favour of the
agreement by a narrow margin in the country’s first national referendum,
held in 2007. In the process Costa Rica became the last Central American
country to ratify the agreement. Also in 2007, President Arias
officially established diplomatic relations with China in an effort to
promote trade and economic cooperation, breaking off 60 years of formal
ties with Taiwan.
Charles L. Stansifer
On July 13, 2009, the International Court of Justice settled a
longtime dispute between Nicaragua and Costa Rica over the latter’s use
of the San Juan River. In the ruling, the court granted Costa Rica the
right of free navigation on the river not only for commerce but also for
tourism.
Ed.