Columbus landed in what is now Costa Rica in 1501. Although it was never heavily colonized, the region came under the captaincy-general of Guatemala. The country declared independence from Spain in 1821 but became part of Mexico. Two years later, it was a founding member of the United Provinces of Central America, a short-lived confederation whose capital was Guatemala City. Costa Rica’s liberal political and economic structures developed in an entirely different manner from those of the other members of the confederation. Costa Rica thus found little community of interest with them, especially
Guatemala, then the dominant power in the region. It was the first to pull out of the federation in 1838, and declared itself a fully independent state: two years later, the United Provinces folded.
Under the rule of General Tomas Guardia between 1870 and 1882, Costa Rica developed many of its principal modern characteristics, notably the minimal role of the Catholic Church in secular matters and a relatively isolationist foreign policy. (The democratic elections of 1890 are acknowledged to have been the first in the region.) Throughout the 20th century, Costa Rica has enjoyed peace and a steady growth in prosperity, with the notable exception of a civil war in 1948 which followed a disputed presidential election. After the victory of José Figueres Ferrer in the conflict, the army was abolished in a unique political decision that entrusted the defense of the country to a Civil Guard, and this decision was enshrined in a new constitution (which still prevails today). The country enjoys good relations with its neighbors: a minor outstanding territorial dispute with Nicaragua over navigation along the San Juan river (which serves as their mutual border) was settled in 2000.
In recent times, one of the most prominent political figures has been Oscar Arias Sanchez of the
Partido de Liberacion Nacional (PLN) who was elected president in February 1986. The following year, Arias was awarded the Nobel Peace Prize for his efforts in bringing warring parties elsewhere in Central America to the negotiating table. Arias stood down prior to the 1990 national elections, which were won by Rafael Angel Calderon, candidate of the rival
Partido Unidad Social Cristiana (PUSC). Calderon was soon confronted with a national emergency as an earthquake hit the country in April 1991, causing widespread loss of life and damage. The PLN regained power in 1994 but at both polls since then – in 1998 and 2002 – the electorate has returned a PUSC majority in both presidential and National Assembly elections. Abel Pacheco de la Espriella, the new President, pledged to reduce poverty, fight corruption, control public finances and reduce indebtedness. Until recently, Pacheco de la Espriella's presidency had been fairly uneventful other than limited action in May 2003 by ICE (electricity and telecommunications) workers and by primary and secondary school teachers which led to the resignation of three Ministers. Between August and September 2004, more Ministers and senior officials resigned, some in opposition to the deal negotiated to end roadblocks and action by transport and public sector workers and others in protest at the direction of government policy. In addition, the country was rocked by corruption scandals involving senior political and public figures. Two former Presidents are under house arrest awaiting charges and the Legislative Assembly is seeking the return of a third from overseas.
In a September 2004 ruling, the Costa Rican Constitutional Court decided that the Government's support for the coalition in Iraq in March 2003 was contrary to the Costa Rican Constitution and its Declaration on Perpetual Neutrality. As a result, the Foreign Minister withdrew Costa Rica's name from the list of coalition countries, but he re-confirmed Costa Rica's commitment to the fight against terrorism.
GovernmentUnder the constitution of 1949, executive power is vested in the President, supported by two Vice-Presidents and an appointed Cabinet of Ministers. The President is elected for a 4-year term by universal adult suffrage (voting is obligatory), conditional on one candidate receiving more than 40 per cent of the vote. Legislation is the responsibility of the 57-member National Assembly, which is also elected for a 4-year term of office.
EconomyElectronics represent 27% of Costa Rica’s export revenues while 22% of export earnings are derived from agriculture (melons, pineapple, coffee, bananas, meat, sugar and cocoa). Staple crops are also grown for domestic consumption. Manufacturing industry consists of food processing, textiles, chemicals and plastics and is steadily expanding with government encouragement.
New industries include aluminum production, following the discovery of a large bauxite deposit. Oil and hydroelectricity meet the bulk of the country’s energy needs. Tourism dominates the service sector and is the most important source of foreign exchange earnings.
Annual growth in 2005 was 4.1%, with inflation at 13.9%. Costa Rica receives some international aid through international bodies, such as the IMF and the Inter-American Development Bank, and from the USA, which is Costa Rica’s main trade partner. Costa Rica is also a member of the Central American Common Market.
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