History
The first European to reach what is now Costa Rica was Christopher Columbus in 1502. During Spanish Colonial times, the principal city in Central America was Guatemala City. Costa Rica's distance from this hub led to difficulty in establishing trade routes and was one of the reasons that Costa Ricans developed in relative isolation and with little oversight from the Spanish Monarchy ("The Crown"). While this isolation allowed the colony to develop free of intervention by The Crown, it also contributed to its failure to share in the prosperity of the Colonies, making Costa Rica the poorest Spanish Colony in Central America.
Another contributing factor to this poverty was lack of indigenous peoples to use for forced labor. While many Spaniards in the other colonies had tribal members to work their land, most of the Costa Rican settlers had to work their own land. For all these reasons, Costa Rica was by and large unappreciated and overlooked by the Crown and left to develop on its own. It is believed that the circumstances during this period led to the formation of many of the idiosyncrasies that Costa Rica has become known for, while at the same time setting the stage for Costa Rica's development as a more egalitarian society than the rest of its neighbors. Costa Rica became a "rural democracy" with no oppressed mestizo or indigenous class. It was not long before Spanish settlers turned to the hills, where they found rich volcanic soil and a climate that was milder than that of the lowlands.
Costa Rica joined other Central American provinces in 1821 in a joint declaration of independence from Spain. After a brief time in the Mexican Empire of Agustín de Iturbide Costa Rica became a state in the Federal Republic of Central America from 1823 to 1839. In 1824 the capital was moved to San José, but due to an intense rivalry with Cartago, violence briefly ensued. Although the newly independent provinces formed a Federation, border disputes broke out among them, adding to the region's turbulent history and conditions.
Costa Rica's membership in the newly formed Federal Republic of Central America, now free of Spanish rule, was short lived; in 1838, long after the Central American Federation ceased to function in practice, Costa Rica formally withdrew and proclaimed itself sovereign. The distance from Guatemala City to the Central Valley of Costa Rica, where most of the population lived and still lives, was great. The local population had little allegiance to the government in Guatemala City, in part because of the history of isolation during Colonial times. Costa Rica's disinterest in participating as a province in a greater Central American government was one of the deciding factors in the break-up of the fledgling federation into independent states, which still exist today. However, all of the Central American nations still celebrate September 15th as their independence day, which pertains to the independence of Central America from Spain.
Most Afro-Costa Ricans, who constitute about 3% of the country's population, descend from Jamaican immigrants who arrived during the 1880s to work in the construction of railways connecting the urban populations of the Central Plateau to the port of Limón on the Caribbean coast. US convicts and Chinese immigrants also participated in the construction project, conducted by US businessman Minor C. Keith. In exchange for completing the railroad, the Costa Rican government granted Keith large tracts of land and a lease on the train route, which he used to produce bananas and export them to the United States. As a result, bananas came to rival coffee as the principal Costa Rican export, while foreign-owned corporations (including the United Fruit Company) began to hold a major role in the national economy.
Historically, Costa Rica has generally enjoyed greater peace and more consistent political stability compared with many of its fellow Latin American nations. Since the late nineteenth century, however, Costa Rica has experienced two significant periods of violence. In 1917-19, Federico Tinoco Granados ruled as a dictator until he was overthrown and forced into exile. Again in 1948, José Figueres Ferrer led an armed uprising in the wake of a disputed presidential election. With more than 2,000 dead, the resulting 44-day Costa Rica Civil War was the bloodiest event in Costa Rican history during the twentieth-century. Afterwards, the new, victorious government junta, led by the opposition, abolished the military and oversaw the drafting of a new constitution by a democratically-elected assembly. Having enacted these reforms, the regime finally relinquished its power on 8 November 1949 to the new democratic government. After the coup d'etat, Figueres became a national hero, winning the country's first democratic election under the new constitution in 1953. Since then, Costa Rica has held 12 presidential elections, the latest being in 2006. All of them have been widely regarded by the international community as peaceful, transparent, and relatively smooth transitions.
Geography
Costa Rica is located on the Central American isthmus, 10° North of the equator and 84° West of the Prime Meridian. It borders both the Caribbean Sea (to the east) and the North Pacific Ocean (to the west), with a total of 1,290 kilometers (802 mi) of coastline (212 km / 132 mi on the Caribbean coast and 1,016 km / 631 mi on the Pacific). It is about the size of West Virginia and shares that state's reputation for excellent whitewater kayaking/rafting opportunities.
Two of the country's most renowned rivers in that regard are the Rio Pacuare and the Rio Reventazon located near the city of Turrialba about two hours east of San Jose. Other notable whitewater areas are the Sarapiqui Valley area, several Pacific coast rivers near Quepos, and the southern Pacific drainage area around San Isidro de General.
Costa Rica also borders Nicaragua to the north (309 km / 192 mi of border) and Panama to the south-southeast (639 km / 397 mi of border). In total, Costa Rica comprises 51,100 square kilometers (19,730 sq. mi) plus 589.000 square kilometers of territorial waters.
The highest point in the country is Cerro Chirripó, at 3,810 metres (12,500 ft), and is the fifth highest peak in Central America. The highest volcano in the country is the Irazú Volcano (3,431 m / 11,257 ft). The largest lake in Costa Rica is Lake Arenal.
Costa Rica also comprises several islands. Cocos Island stands out because of its distance from continental landmass (24 km² / 9.25 sq mi, 500 km or 300 mi from Puntarenas coast), but Calero Island is the largest island of the country (151.6 km² / 58.5 sq mi).
Costa Rica protects 23% of its national territory within the Protected Areas system. It also possesses the greatest density of species in the world.
Politics
Costa Rica is a democratic republic with a strong constitution. Although there are claims that the country has had more than 115 years of uninterrupted democracy, their presidential election history shows otherwise. Nonetheless, the country has had at least fifty-nine years of uninterrupted democracy, making it one of the most stable countries in the region. Costa Rica has been able to successfully avoid the widespread violence that has plagued most of Central America.
Costa Rica is a republic with three powers: executive responsibilities are vested in a president, legislative power is vested on the Legislative Assembly, and Judicial power is vested on the Supreme Court. There also are two vice presidents as well as a cabinet designated by the president. The president, vice presidents, and fifty-seven Legislative Assembly delegates are elected for four-year terms. A constitutional amendment approved in 1969 limited presidents and delegates to one term, although delegates were allowed to run again for an Assembly seat after sitting out a term.
The Supreme Electoral Body, the Office of the Comptroller General, the Office of the Procurator General of the Republic and the Office of the Ombudsman also enjoy a lot of independence.
The Supreme Court is divided into 4 chambers, one dealing with Constitutional Law, one dealing with Criminal Law and two dealing with Civil Law, Merchant Law and the like.
In April 2003, the constitutional constitutional amendment ban on presidential re-election was reversed, allowing Óscar Arias (Nobel Peace Prize laureate, 1987) to run for President for a second term. In 2006, Óscar Arias was re-elected in a tight and highly contested election, running on a platform of promoting free trade. He took office on May 8, 2006.
Certain autonomous state agencies enjoy considerable operational independence; they include the telecommunications and electrical power monopoly, the nationalized commercial banks, the state insurance monopoly, and the social security agency. Costa Rica has no military by constitution but maintains domestic police forces for internal security. These include the Guardia Civil and the Guardia Rural.
Economy
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reducer over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. 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. The country also needs to reform its tax system and its pattern of public expenditure. The current administration has made it a priority to pass the necessary reforms to implement the US-Central American Free Trade Agreement (CAFTA). CAFTA implementation would result in an improved investment climate.
Education
The literacy rate in Costa Rica is of 96% (CIA World Factbook, February 2007), one of the highest in Latin America. Elementary and high schools are found throughout the country in practically every community. Universal public education is guaranteed in the Constitution. Primary education is obligatory, and both preschool and high school are free. There are both state and private universities.
There are only a few schools in Costa Rica that go beyond the 12th grade. Those schools that finish at 11th grade receive a Costa Rican Bachillerato Diploma accredited by the Costa Rican Ministry of Education.
Tourism & Real Estate
Leading brands such as Four Seasons, St. Regis and Marriott have chosen Costa Rica for its great potential to attract foreign investment. The U.S. is among the countries most interested in investing in Costa Rica. The country recieves more than 1.6 million tourists annually, which generates $1.6 billion in revenue. Unlike in Mexico and other countries, the Costa Rican government allows foreign investors to hold fee simple titles. Local banks make financing available to qualified foreign buyers and title insurance is available.
It's relatively easy to develop in Costa Rica. A good work force comes at a fairly low cost compared to that of the U.S. A home costing $100 per square foot to build in Costa Rica could cost $250/sf in Columbus, $350/sf in Dallas, or even more than $500/sf in California and Florida.
Costa Rica is located in the center of the Americas, with two major airports providing excellent international access. Most citizens from the U.S., Canada and countries in Europe do not need a visa. Seventy-six percent of passengers arriving at the Daniel Oduber International Airport in Guanacaste are North American, providing the primary market for develpment in the area.
The Real Estate hot spot in Costa Rica is the Guanacaste Northwest region. Costa Rica's seventh and largest province and home of some of the country's most coveted beaches. In 2005, Guanacaste captured 53.2% of real estate investment. Guanacaste is dominating both the volume and nature of real estate investment in the country. It has some of the country's most beautiful beaches and can be quickly reached by the Daniel Oduber International Airport in Liberia, the province's capital. The controlling trend is the development of resort and residence communities designed to provide the services and amenities of a full town. Countrywide, analysist are seeing the beginning of a boom, and there are a number of reasons why the market is growing and will continue to grow.
According to many, Costa Rica is one of the best and most secure real estate markets in the world! |