About Costa Rica
The People
The people of Costa Rica have a passionate focus on a truely democratic government. Since 1949 when the government abolished its armed forces it has lived as a peaceful country, despite the fact that the surrounding region has been plagued with conflict.
Individual citizens are also devoted to peace and peaceful conflict resolution. The National Anthem includes the line, "let work and peace always live." In 1987 the country's president, Oscar Arias, won the Nobel Peace Prize for his work on Esquipulas II, a plan to bring peace to Central America.
The people are famously hospitable. Despite a growth in crime and drug problems, on average, the country is a remarkably friendly environment. The people are polite, curious, and inclined to smile.
The Land
In Central America Costa Rica is bordered by Panama on the south, Nicaragua on the north, the Caribbean Sea on the east and the Pacific Ocean on the west. It is geographically slightly smaller than the state of West Virginia.
The climate is tropical and subtropical; dry season (December to April); rainy season (May to November); cooler in highlands. The terrain consists of coastal plains separated by rugged mountains including over 100 volcanic cones, of which several are major volcanoes . There are four volcanoes, two of them active, rise near the capital of San Jose in the center of the country; one of the volcanoes, Irazu, erupted destructively in 1963-65.
The Economy
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has remained around 20% 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. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans estimated to be in Costa Rica legally and illegally are an important source of (mostly unskilled) labor, but also place heavy demands on the social welfare system. Foreign investors remain attracted by the country's political stability and high education levels, as well as the fiscal incentives offered in the free-trade zones. Exports have become more diversified in the past 10 years due to the growth of the high-tech manufacturing sector, which is dominated by the microprocessor industry. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. The government continues to grapple with its large internal and external deficits and sizable internal debt. Reducing inflation remains a difficult problem because of rising import prices, labor market rigidities, and fiscal deficits. Tax and public expenditure reforms will be necessary to close the budget gap. In October 2007, a national referendum voted in favor of the US-Central American Free Trade Agreement (CAFTA).
