Costa Rica

THE REPUBLIC OF Costa Rica, which is located in Central America along the coast of the Caribbean Sea and the Pacific Ocean, is one of the most democratic countries in the region. Land is much more evenly divided than in most countries in Latin America. However, income and social inequalities have begun to increase in recent years.

The richest 20 percent of the population claim 51.5 percent of available resources while the poorest 20 percent share 4.2 percent. Costa Rica is ranked 46.5 on the Gini Index of Human Inequality. Most Costa Ricans enjoy a comfortable standard of living, and in Latin America, Costa Rica, with no military, has become a force for peace.

Originally, Costa Rica was home to some 25,000 natives who were virtually killed off by their Spanish conquerors. After achieving independence in 1821, Costa Rica was taken over for two years by the Mexican Empire. By 1848, Costa Rica had become a republic and has remained democratic from that point on except for 12 years under a military dictatorship in the late 19th century.

While agriculture, particularly coffee, banana, and beef exports, is still integral to the Costa Rican economy, the system has become more diverse in recent years. Services now employ 58 percent of the labor force, and industry engages another 22 percent. Technology and tourism have proved to be major sources of revenue for Costa Rica. The country's only natural resource is hydropower. Foreign investors are attracted to Costa Rica because of stable conditions and an educated population. With a per capita income of $9,600, Costa Rica is an upper-middle-income nation. Despite the positive economic outlook, the Costa Rican government continues to deal with a large deficit, a substantial internal debt, and an unemployment rate of 6.6 percent.

For over a decade, Costa Rica has been steadily reducing the overall poverty rate, which is currently estimated at 22 percent, through economic growth and a strong social safety net. The sectors of the Costa Rican population that are most vulnerable to poverty are immigrants, the indigenous population, females with young children, those who live in rural areas, and elderly women. Poverty has continued to rise among certain groups. From 2001 to 2002, the number of female-headed families rose in both urban and rural areas of Costa Rica. At the same time, the number of such families living in poverty was 34.5 percent. By 2003, that number had risen to 36.2 percent. Government data also indicate that the number of households that lack basic needs increased from 28.1 percent in 2002 to 31.1 in 2003. Some 30 percent of Costa Rican children live in poverty. Six percent of the population are undernourished. Around 10 percent of the population live on less than $2 a day, and two percent live on less than $1 a day. The extensive social net provides financial benefits, housing assistance, healthcare, training, and education. The government is in the process of revising the Child Welfare Institute and has appointed a Minister for Children and Adolescents.

Life expectancy in Costa Rica is 76.84 years. Generally, females (79.55 years) outlive men (74.26) by more than five years. Among the population of 4,016,173, the median age is 26.03 years. Nearly 29 percent of Costa Ricans are under the age of 14, and 5.6 percent have lived to the age of 65. Generally, healthcare is readily available in Costa Rica, and there are 160 physicians for every 100,000 residents. Only five percent of the population lack access to affordable essential drugs. Five percent of Costa Ricans lack access to safe drinking water, and seven percent lack access to improved sanitation.

...