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Costa Rica
Area: 51,032 sq km; 19,652 sq miles
Population: 4.2 million
Capital City: San José (1.0 million)
People: Only 1% of the population of Costa Rica is of indigenous extraction. Costa Rica's character is rooted in distinct local cultures, from the Afro-Caribbean province of Limon, with its Creole cuisine, games and patois to the traditional Ladino values embodied by the sabanero (cowboy) of Guanacaste.
Languages: The official language is Spanish.
Religion(s): Roman Catholic 74%; Evangelical Protestant 15%; Others 3%; None 8%
Currency: Colon
Major Political Parties: Social Christian Unity Party (PUSC), National Liberation Party (PLN), Partido Accion Ciudadana (PAC) Movimento Libertario (ML)
Government: PLN
Head of State: President Oscar Arias Sanchez.
Prime Minister/Premier: Not applicable
Foreign Minister: Bruno Stagno.
Membership of International Groups/Organisations: Costa Rica is a member of the UN, the OAS, the WTO (Cairns Group), the IAEA, the G77, the Central American Integration System (SICA), the Rio Group, and the Caribbean Basin Initiative (CBI). Costa Rica has signed and ratified all the key international human rights instruments and pursues a pacific policy, having abolished its own armed forces in 1949.
GEOGRAPHY
Costa Rica covers 51.060 sq kms and is bordered by Nicaragua to the north and Panama to the south-east. To the east lies the Caribbean Sea with approximately 200kms of coastline while to the west lies the Pacific Ocean with around a 1000 kms of coastline. A volcanic mountain range extends the length of the country, splitting it in two from north to south. The Central Valley lies in the middle of these highlands which contain several active volcanoes. On either side of the range lie coastal lowlands.
HISTORY
Pre-Columbian period - Costa Rica was at the crossroads of the two great areas of cultural influence: the Meso-American groups (including Mayans and Aztecs) and the South American groups. The territory did not belong directly to any of the major kingdoms and the populations were distributed in small disperse tribes with no important population concentrations. The descendents of these indigenous tribes exist today, the main ones being the Bri Bri, Cabecar, Brunca and Hueta people.
1502 - Christopher Columbus first sets foot in Costa Rica, (Rich Coast) on his fourth and last voyage to the New World, but disease and resistance by the local population delay the establishment of a permanent settlement for nearly 60 years.
1561 - Spain's Juan de Cavallon leads the first successful colonisers into Costa Rica.
1540 onwards - Costa Rica is part of the vice-royalty of New Spain.
1821 - Central America gains independence from Spain. A dispute ensues over whether Costa Rica should join an independent Mexico or a confederation of Central American states.
1823 - Costa Rica joins the United Provinces of Central America, which also embraces El Salvador, Guatemala, Honduras and Nicaragua.
1838 - Costa Rica becomes fully independent.
1849-59 - Under the leadership of Juan Rafael Mora, Costa Rica takes the lead in organising Central American resistance against William Walker, the US adventurer who took over Nicaragua in 1855.
1859 - Mora ousted in a bloodless coup.
1870-82 - Under the leadership of Tomas Guardia Costa Rica encourages intensive foreign investment in railways.
1874 - US businessman Minor Cooper Keith introduces banana cultivation and starts the United Fruit Company.
1917 - Frederico Tinoco ousts the elected president, Alfredo Gonzalez, but is himself deposed two years later.
1940-44 - President Rafael Angel Calderon Guradia, founder of the United Christian Socialist Party (PUSC), introduces liberal reforms, including recognition of workers' rights and minimum wages.
1948 - Six-week civil war over a disputed presidential election result.
1949 - Jose Figueres Ferrer, co-founder of National Liberation Party (PLN), elected president and begins ambitious socialist programme, including introducing a social security system and nationalising banks. Armed forces abolished and replaced by Civil Guard.
1958-73 - Costa Rica governed by mainly conservative administrations.
1974 - Daniel Oduber (PLN) elected president and pursues socialist policies.
1978 - Rodrigo Carazo, a conservative, elected president amid a sharp deterioration in the economy.
1982 - Luis Alberto Monge (PLN) elected president and introduces harsh austerity programme. Meanwhile, Costa Rica comes under pressure from the US to weigh in against the Sandinistas in Nicaragua.
1985 - US-trained anti-guerrilla force begins operating from Honduras and Costa Rica following clashes with Sandinista troops.
1986 - Oscar Arias Sanchez (PLN) elected president on a neutral platform.
1987 - Leaders of Nicaragua, El Salvador, Guatemala and Honduras sign regional peace plan devised by Oscar Arias Sanchez, who in turn wins the Nobel Peace Prize for the plan.
1990 - Rafael Calderon, of the centrist PUSC, elected president.
1994 - Jose Maria Figueres Olsen (PLN) elected president.
1998 - Miguel Angel Rodriguez (PUSC) elected president.
2002 – Abel Pacheco (PUSC) elected president
2006 – Dr Oscar Arias Sanzhez (PLN) elected President for a second term.
POLITICS
Costa Rican Politics has been dominated by two main parties, the National Liberation Party (PLN) and Social Christian Unity Party (PUSC), which have generally tended to succeed each other in power every four years. However, recent elections have shown the emergence of new parties, including the Citizens Action Party (PAC) and the Libertarian Movement (ML). The most recent elections, held in February 2006, saw the PLN regain power, but the PAC became the official opposition with the ML in third place. The PUSC, has been left very much as a minority party. The 2006 elections saw the PLN’s candidate, Dr Oscar Arias Sanchez, elected in the tightest election in Costa Rican history, separated from his rival by just 0.4% of the vote.
President Arias was inaugurated on 8 May 2006 and has vowed to improve health, education and law and order, whilst promoting free trade and international peace.
The country remains rocked by corruption scandals involving senior political and public figures, the most damaging of which concern the Social Security Institution (CCSS or Caja) and ICE. Two former Presidents are under house arrest awaiting charges and the Legislative Assembly is seeking the return of a third from overseas to explain his involvement.
ECONOMY
Although the smallest country in Central America in terms of population, Costa Rica is the most affluent on a GDP per capita basis. The economy has weathered low world commodity prices for traditional Costa Rican exports such as coffee, bananas and sugar by diversification. Non-traditional exports such as electronic components (particularly Intel microchips), medical supplies, textiles and tropical fruits, as well as tourism, now play a much more important role. Average GDP growth was around 2.5% per year since 2000, but it rose some 5% in 2003 and 4.4% in 2004 which has allowed Costa Rica to weather its high levels of internal and external debt. Interest on this debt consumes a third of the annual budget. A fiscal reform package designed to increase tax revenue and measures to regulate government spending failed to pass through the Legislative Assembly during the Pacheco administration.
Moves towards regional economic integration in Central America are continuing. In early 2004, the five Central American countries concluded negotiations with the USA on the Central American Free Trade Agreement (CAFTA). Known in Spanish as the TLC (Tratado de Libre Comercio), the agreement was signed between the USA and Costa Rica, Guatemala, El Salvador Honduras, Nicaragua and the Dominican Republic. El Salvador was the first country to ratify the agreement in December 2004, followed by Honduras and Guatemala. Violent protests greeted the ratification in Guatemala and Honduras.
In signing the US-CAFTA, Costa Rica agreed to the limited opening up of both the telecommunications and insurance sectors over a prolonged transition period. This issue had been a key stumbling block, and it remains a politically sensitive issue. Former President Pacheco did not allow the Agreement to be presented to the Legislative Assembly for consideration until the very end of his term of office, which has left the country behind its neighbours in the ratification process. President Arias is strongly in favour of CAFTA but is dogged by strikes and protests by telecommunications unions.
Costa Rica continues to attract foreign investment, (although at lower levels than the 1998-2000 period), because of the basic stability and security of the country. The Colon has been devaluing against the US Dollar on average 10-11% per year since 2000.
Basic Economic Facts
Nominal GDP: 19.8 billion US dollars (2005)
Nominal GDP per head:4,573 US dollars (2005)
Annual growth: 4.1% (2005)
Inflation: 14.% (2005)
Major industries: Electronic components, bananas, coffee, textiles and apparel, fruits, jewellery, small appliances, shrimp. tourism, pharmaceuticals
Exports: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$7,000.6 (2005)
Imports:US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$9,797.8 (2005)
Statistics
Year-end figures for 2005 show economic growth of 4.1%. The fiscal deficit was 4% of GDP, and overall debt is currently at \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$7.2 billion (including 4.2 billion of external debt). The goods trade deficit increased to US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$ 2.8 billion.
Trade and Investment with the UK
UK exports to Costa Rica in 2005 totalled £ 40.1m. UK imports from Costa Rica in 2005 totalled £ 562m. In 2005, the top exports to Costa Rica in £m (FOB, UK) were: Petroleum products £14.41m, alcoholic beverages £4.08m, road vehicles £ 2.99m, specialised machinery \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$2.32m. Main products imported from Costa Rica in £m were(CIF, UK): Electronic components £459m, Fruit & vegetables £92.12m, Transport equipment £26.9m, Crude animal & vegetable materials £1.79m.
INTERNATIONAL RELATIONS
Costa Rica's Relations with Neighbours
In recent years Costa Rica has been trying to improve its relationship with its northern neighbour Nicaragua. The number of Nicaraguans living and working in Costa Rica (mainly illegally) is estimated at about 500,000. The relationship has been strained because of the territorial dispute over the right to free navigation of the San Juan River and in particular, the right of Costa Rican patrols to carry arms (a number of Costa Rican communities are only accessible from the river). The disagreement had been put on hold by the two Governments but in September 2005 the Costa Rican Government decided to send the case to the International Court in The Hague for arbitration. Costa Rica is an active member of the Central American Integration System (SICA) but continues to play no part in the Central American Parliament –(PARLACEN). The recently established Central American customs union is progressing well with Costa Rican participation. Negotiations to join the US CAFTA were completed in January 2004 and the Agreement awaits ratification by the Legislative Assembly.
An FTA between Costa Rica and Caribbean Countries (CARICOM) was agreed in 2004 and is awaiting ratification by all the parties. Costa Rica also acts as the depository for a Maritime Co-operation Agreement with the Caribbean countries and others to control drug trafficking.
Costa Rica's Relations with the International Community
Costa Rica is an active member of the international community and supports efforts to protect the environment; promotes human rights and sustainable development, and advocates peaceful settlement of disputes. Costa Rica is host to a number of international institutions, including the Inter-American Court of Human Rights and the UN University for Peace.
Negotiations on an Association Agreement with the European Union are expected to begin in early 2007.
Costa Rica joined the Coalition on Iraq in 2003 but withdrew in September 2004 after the Constitutional Court ruled that decision was unconstitutional. Nevertheless the Foreign Ministry reconfirmed that Costa Rica remains committed to the fight against terrorism.
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