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Costa Rica

Costa rica is home to approximately four million people and covers 19,344 square miles (50,100 square kilometers). Its geographical smallness belies immense physical diversity; Pacific and Atlantic oceanic influences combine with three mountain ranges to support a wide variety of plant and animal life. Within the Costa Rican parks system, an estimated 500,000 to one million species of flora and fauna are protected, and Costa Rica is ranked as one of the most biologically diverse countries in the world.

Costa Rica is often seen as an anomaly in Central America. Politically, it has a long history of democracy and has enjoyed peace in a region plagued by civil wars, most recently in the 1980s and early 1990s. Following one short civil war in 1948, Costa Rica's army was disbanded. Socially, Costa Rica has experimented with a welfare state. A social security system, labor code, and universal health care and education were all implemented in the 1940s. Economic restructuring in the 1990s and 2000s has entailed cuts to many social programs and resulted in some social unrest. In spite of these cuts, in 2003 Costa Rica ranked 47th on the United Nations human development index, highest in Central America and outranked only by three countries in all of Latin America and the Caribbean.

Economics and Environment

Economically, Costa Rica has facilitated economic growth via an export-oriented economy, centered traditionally on coffee and bananas, but dominated by tourism since the early 1990s. While Costa Rica experienced a debt crisis in the early 1980s, it recovered relatively quickly compared to other countries in the region. Low prices for coffee and bananas have continued to hurt the agricultural sector, but this has been offset to some extent by continued growth in tourism and recent and rapid growth in electronics manufacturing. Nevertheless, the government grapples with internal and external deficits and internal debt.

Environmentally, Costa Rica has cultivated a “green” image and it is recognized as a leader in the region for its extensive environmental laws. Twenty-eight environmental laws were passed between 1965–85, predating much of the international attention given to the environment in the late 1980s and early 1990s. More recent laws include the 1995 Organic Law of the Environment and the 1998 Biodiversity Law. While such laws undoubtedly contribute to Costa Rica's green image, the centerpiece is its extensive system of parks and protected areas. Costa Rica protects 23.4 percent of its land in 158 protected areas recognized under the various categories used by the World Conservation Union (IUCN); this is in great contrast to the 8.3 percent of land protected in Central America and the Caribbean and the 10.8 percent protected globally.

Critical Park System

The parks system is critical to the country's tourism industry. Costa Rica began investing in tourism in the 1950s, when it established the Costa Rican Tourism Institute, declared tourism an industry, and offered incentives for investors. Since then, tourism to Costa Rica has grown consistently. The boom in tourism began in 1986 and international tourist arrivals grew at an average of 14 percent per year until 1994, with peak growth of 27 percent in 1992. In 1999, tourist arrivals surpassed one million for the first time, and growth has continued at an impressive rate (17 percent in 2004).

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