Although explored by the Spanish early in the 16th century, initial attempts at colonizing Costa Rica proved unsuccessful due to a combination of factors, including disease from mosquito-infested swamps, brutal heat, resistance by natives, and pirate raids. It was not until 1563 that a permanent settlement of Cartago was established in the cooler, fertile central highlands. The area remained a colony for some two and a half centuries. In 1821, Costa Rica became one of several Central American provinces that jointly declared their independence from Spain. Two years later it joined the United Provinces of Central America, but this federation disintegrated in 1838, at which time Costa Rica proclaimed its sovereignty and independence. Since the late 19th century, only two brief periods of violence have marred the country's democratic development. In 1949, Costa Rica dissolved its armed forces. Although it still maintains a large agricultural sector, Costa Rica has expanded its economy to include strong technology and tourism industries. The standard of living is relatively high. Land ownership is widespread.
occasional earthquakes, hurricanes along Atlantic coast; frequent flooding of lowlands at onset of rainy season and landslides; active volcanoes
Arenal (elev. 1,670 m), which erupted in 2010, is the most active volcano in Costa Rica; a 1968 eruption destroyed the town of Tabacon; Irazu (elev. 3,432 m), situated just east of San Jose, has the potential to spew ash over the capital city as it did between 1963 and 1965; other historically active volcanoes include Miravalles, Poas, Rincon de la Vieja, and Turrialba
deforestation and land use change, largely a result of the clearing of land for cattle ranching and agriculture; soil erosion; coastal marine pollution; fisheries protection; solid waste management; air pollution
Costa Rica's political stability, high standard of living, and well-developed social benefits system set it apart from its Central American neighbors. Through the government's sustained social spending - almost 20% of GDP annually - Costa Rica has made tremendous progress toward achieving its goal of providing universal access to education, healthcare, clean water, sanitation, and electricity. Since the 1970s, expansion of these services has led to a rapid decline in infant mortality, an increase in life expectancy at birth, and a sharp decrease in the birth rate. The average number of children born per women has fallen from about 7 in the 1960s to 3.5 in the early 1980s to below replacement level today. Costa Rica's poverty rate is lower than in most Latin American countries, but it has stalled at around 20% for almost two decades.
Costa Rica is a popular regional immigration destination because of its job opportunities and social programs. Almost 9% of the population is foreign-born, with Nicaraguans comprising nearly three-quarters of the foreign population. Many Nicaraguans who perform unskilled seasonal labor enter Costa Rica illegally or overstay their visas, which continues to be a source of tension. Less than 3% of Costa Rica's population lives abroad. The overwhelming majority of expatriates have settled in the United States after completing a university degree or in order to work in a highly skilled field.
chief of state: President Laura CHINCHILLA Miranda (since 8 May 2010); First Vice President Alfio PIVA Mesen (since 8 May 2010); Second Vice President Luis LIBERMAN Ginsburg (since 8 May 2010); note - the president is both the chief of state and head of government
head of government:
President Laura CHINCHILLA Miranda (since 8 May 2010); First Vice President Alfio PIVA Mesen (since 8 May 2010); Second Vice President Luis LIBERMAN Ginsburg (since 8 May 2010)
five horizontal bands of blue (top), white, red (double width), white, and blue, with the coat of arms in a white elliptical disk toward the hoist side of the red band; Costa Rica retained the earlier blue-white-blue flag of Central America until 1848 when, in response to revolutionary activity in Europe, it was decided to incorporate the French colors into the national flag and a central red stripe was added; today the blue color is said to stand for the sky, opportunity, and perseverance, white denotes peace, happiness, and wisdom, while red represents the blood shed for freedom, as well as the generosity and vibrancy of the people
note:somewhat resembles the flag of North Korea; similar to the flag of Thailand but with the blue and red colors reversed
Prior to the global economic crisis, Costa Rica enjoyed stable economic growth. The economy contracted 1.3% in 2009 but resumed growth at about 4.5% per year in 2010-12. While the traditional agricultural exports of bananas, coffee, sugar, and beef are still the backbone of commodity export trade, a variety of industrial and specialized agricultural products have broadened export trade in recent years. High value-added goods and services, including microchips, have further bolstered exports. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the incentives offered in the free-trade zones; and Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. However, many business impediments remain, such as high levels of bureaucracy, legal uncertainty due to overlapping and at times conflicting responsibilities between agencies, difficulty of enforcing contracts, and weak investor protection. Poverty has remained around 20-25% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Unlike the rest of Central America, Costa Rica is not highly dependent on remittances as they only represent about 2% of GDP. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans in Costa Rica legally and illegally are an important source of mostly unskilled labor but also place heavy demands on the social welfare system. The US-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) entered into force on 1 January 2009 after significant delays within the Costa Rican legislature. CAFTA-DR has increased foreign direct investment in key sectors of the economy, including the insurance and telecommunications sectors recently opened to private investors. President CHINCHILLA was not able to gain legislative approval for fiscal reform, her top priority, though she continued to pursue fiscal reform in 2012. President CHINCHILLA and the PLN were successful in passing a tax on corporations to fund an increase for security services.
general assessment: good domestic telephone service in terms of breadth of coverage; under the terms of CAFTA-DR, the state-run telecommunications monopoly is scheduled to be opened to competition from domestic and international firms, but has been slow to open to competition
point-to-point and point-to-multi-point microwave, fiber-optic, and coaxial cable link rural areas; Internet service is available
country code - 506; landing points for the Americas Region Caribbean Ring System (ARCOS-1), MAYA-1, and the Pan American Crossing submarine cables that provide links to South and Central America, parts of the Caribbean, and the US; connected to Central American Microwave System; satellite earth stations - 2 Intelsat (Atlantic Ocean) (2011)
the ICJ had given Costa Rica until January 2008 to reply and Nicaragua until July 2008 to rejoin before rendering its decision on the navigation, security, and commercial rights of Costa Rican vessels on the Rio San Juan over which Nicaragua retains sovereignty
transshipment country for cocaine and heroin from South America; illicit production of cannabis in remote areas; domestic cocaine consumption, particularly crack cocaine, is rising; significant consumption of amphetamines; seizures of smuggled cash in Costa Rica and at the main border crossing to enter Costa Rica from Nicaragua have risen in recent years (2008)