Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/costa_ri.bkg

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#CARD:Costa Rica:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  Costa Rica

June 1992
Official Name:  Republic of Costa Rica

PROFILE
Geography
Area:  51,032 sq. km. (19,652 sq. mi.), slightly smaller than West
Virginia.  Cities:  Capital--San Jose (metropolitan population 890,434).
 Other major cities--Alajuela (34,556), Limon (33,925), Golfito
(29,043).  Terrain:  A rugged, central massif separates eastern and
western coastal plains.  Climate:  Tropical and subtropical.

People
Nationality:  Noun and adjective--Costa Rican(s).  Population:  3
million.  Annual growth rate:  2.5%.  Density:  57 sq. km. (147 sq.
mi.).  Ethnic groups: European (including a few mestizos), 96%; black,
3%; indigenous, 1%.  Religion:  Roman Catholic 95%.  Language:  Spanish,
with Jamaican dialect of English spoken around Puerto Limon.  Education:
 Years  compulsory--6.  Attendance--nearly 100%.  Literacy--93%.
Health:  Infant mortality rate--15/1,000.  Life expectancy--men 68
years; women 72 years.  Work force (1 million, 1990):  Services and
government--38%. Agriculture--32%.  Industry and commerce--25%.  Banking
and finance--5%.

Government
Type:  Democratic republic.  Independence:  September 15, 1821.
Constitution: November 9, 1949.
Branches:  Executive--president (head of government and chief of state)
elected for one 4-yr. term, two vice presidents, cabinet (20 ministers).
 Legislative--57-deputy unicameral Legislative Assembly elected at 4-yr.
intervals.  Judicial--Supreme Court of Justice (22 magistrates elected
by Legislative Assembly at 8-yr. intervals).
Subdivisions:  7 provinces divided into 80 cantons subdivided into
districts.
Political parties:  Social Christian Unity Party (PUSC), National
Liberation Party (PLN), United Peoples Party (PU), Costa Rican Socialist
Party (PSC).  Suffrage:  Obligatory over age 18.
Central government budget (1990): $1 billion.
Defense:  Costa Rica has no army.
Holiday:  Independence Day, September 15.
Flag:  Two blue horizontal stripes top and bottom, two white inner
stripes, and a wide, red central band with the national coat of arms.

Economy
GDP (1991):  $5.6 billion.  Real growth rate (1991):  1%.  Per capita
income (1991): $1,810.  Inflation (1991 consumer price index change):
25%.
Natural resources:  Hydroelectric power.
Industry (22% of GDP):  Types--food processing, textiles and clothing,
construction materials, fertilizer.
Agriculture (19% of GDP):  Products--bananas, coffee, beef, sugarcane,
grain.
Trade (1991):  Exports--$1.6 billion: bananas, coffee, beef, sugar,
cocoa.  Major markets--US 39%, Central America 13%, Germany 9%.
Imports--$1.8 billion: manufactured goods, machinery, transportation
equipment, chemicals, fuel, food- stuffs, fertilizer.  Major
suppliers--US 40%, Japan 12%, Central America 8%.
Average exchange rate:  137 colones=US$1 (1991).
Fiscal year:  Calendar year.
US economic aid received (1991): $52 million.
Debt service charges as % of exports:  41% in 1990.

PEOPLE AND HISTORY
 Unlike most of their Central American neighbors, Costa Ricans are
largely of European rather than mestizo descent, and Spain is the
primary country of origin.  The indigenous population today numbers no
more than 25,000.  Blacks, descendants of 19th-century Jamaican
immigrant workers, constitute a significant English-speaking minority of
about 30,000, concentrated around the Caribbean port city of Limon.
 In 1502, on his fourth and last voyage to the New World, Christopher
Columbus made the first European landfall in the area.  Settlement of
Costa Rica began in 1522, and for nearly 3 centuries the region was
administered as part of the Captaincy General of Guatemala, under a
military governor.
 The Spanish optimistically called the country "Rich Coast," but the
name proved inaccurate.  Finding little gold or other valuable minerals
in Costa Rica, the Spanish turned to agriculture.  The small landowners'
relative poverty, the lack of a large indigenous labor force, the
population's ethnic and linguistic homogeneity, and Costa Rica's
isolation from the Spanish colonial centers in Mexico and the Andes all
contributed to the development of an autonomous and individualistic
agrarian society.  This egalitarian tradition continued even after
introduction of banana and coffee cultivation in the 19th century led to
the accumulation of wealth which resulted in class distinctions.
 In 1821, Costa Rica joined other Central American provinces in a joint
declaration of independence from Spain.  Although the newly independent
provinces formed a federation, border disputes broke out among them.
Costa Rica's northern Guanacaste Province was annexed from Nicaragua in
one such regional dispute.  In 1838, long after the Central American
federation ceased to function in practice, Costa Rica formally withdrew
and proclaimed itself sovereign.
 The modern era of peaceful democracy in Costa Rica began in 1889, in a
remarkable change of political power, considering the region's turbulent
history and conditions.  The elections of 1889, considered the first
truly free and honest ones in the country's history, began a trend
maintained with only two lapses:  in 1917-18, Federico Tinoco ruled as a
dictator, and in 1948, Jose Figueres led a popular revolution in the
wake of a disputed presidential election.  With more than 2,000 dead,
the revolution was the bloodiest event in Costa Rican history, but the
victorious junta drafted a constitution guaranteeing free elections with
universal suffrage and the abolition of the army.  Figueres became a
national hero, winning the first election under the new constitution.
 Since that time, Costa Rica has held 11 presidential elections.  Only
twice, in 1974 and in 1986, was the candidate of the party in power
elected.  The next elections are scheduled for February 1994.

GOVERNMENT
 Costa Rica is a democratic republic with a strong system of checks and
balances.  Executive responsibilities are vested in a president who,
though somewhat more constrained than most Latin American heads of
state, is without question the center of power.  The president and 57
Legislative Assembly deputies are elected for 4-year terms.  A
constitutional amendment approved in 1969 limits both the president and
the deputies to one term, although a deputy may be returned to the
assembly after sitting out a term.
 The electoral process is supervised by an independent Supreme Electoral
Tribunal, a commission of three principal magistrates, and six
alternates selected by the Supreme Court of Justice.  Judicial power is
exercised by the Supreme Court of Justice, composed of 22 magistrates
selected for 8-year terms by the Legislative Assembly, and subsidiary
courts.  A constitutional chamber of the Supreme Court, established in
1989, reviews the constitutionality of legislation and executive decrees
and all habeas corpus warrants.
 The country's seven provinces are headed by governors appointed by the
president, but they exercise little power.  There are no provincial
legislatures.  Autonomous state agencies enjoy considerable operational
independence; they include the nationalized commercial banks, the state
insurance monopoly, and the Social Security Agency.

Principal Government Officials
President--Rafael Angel Calderon Fournier
Foreign Minister--Bernd Niehaus Quesada
Ambassador to the United States--Gonzalo J. Facio Segrada
Ambassador to the OAS--Carlos Pereira Garro
Ambassador to the United Nations--Cristian Tattenbach Yglesias

 Costa Rica maintains an embassy in the United States at 1825
Connecticut Avenue, NW, Suite 211, Washington, DC 20009 (tel.
202-234-2945).

POLITICAL CONDITIONS
 Throughout its history, Costa Rica's political system has contrasted
sharply with those of its neighbors.  The nation has steadily developed
and maintained democratic institutions and an orderly, constitutional
scheme for government succession.  Several elements have contributed to
this situation, including educational opportunities, enlightened
government leaders, comparative prosperity, flexible class lines, and
the absence of a politically intrusive military.
 In the elections of 1990, Rafael Angel Calderon Fournier, of the Social
Christian Unity Party (PUSC), was elected to succeed Oscar Arias Sanchez
of the National Liberation Party (PLN) as Costa Rica's president.  The
private-sector oriented and populist PUSC also won a slim majority in
the Legislative Assembly--29 of 57 seats.  The PUSC is aligned to
Christian Democratic and conservative parties in the Western Hemisphere
and Europe.  The PLN has been the dominant party in Costa Rica since
1948.  It is a social democratic party affiliated with the Socialist
International.  The 1990 elections marked the first time in over 30
years that the PLN lost control of the Legislative Assembly.  Overall,
Costa Rican governments have swung from moderately conservative to
moderately progressive as the PLN and various anti-PLN coalitions have
tended to alternate control of the presidency.  This pattern was broken
in 1974 and 1986, when a PLN candidate succeeded a PLN incumbent.  Three
minor parties are represented in the 1990-94 Legislative Assembly.
 Costa Rica has not been insulated from regional conflicts.  Instability
in neighboring Nicaragua and Panama in the 1980s discouraged new
investment and tourism in Costa Rica.  In addition, many Nicaraguans and
Salvadorans sought refuge in Costa Rica, further burdening the country's
educational and health facilities.
 In 1987, President Oscar Arias authored a regional peace plan that
became the basis for the peace agreement signed by the presidents of the
other Central American countries (excluding Belize and Panama).  Arias'
efforts earned him the 1987 Nobel Peace Prize.  The Esquipulas Process,
as the peace plan became known, contributed to bringing about free and
open elections in Nicaragua and the subsequent end of the civil war in
that country.
 Under President Calderon, Costa Rica continues to play a prominent role
in the Esquipulas Process.  The Costa Ricans have hosted negotiations
between the Salvadoran Government and the Farabundo Marti guerrilla
faction and are key participants in efforts toward regional cooperation
on political and economic development and demilitarization.

ECONOMY
 Since its economic crisis of the early 1980s, Costa Rica's economic
orientation has supported structural adjustment, focusing on internal
stability and growth through increasingly diversified exports.  The
gross domestic product (GDP) grew an average 5% since 1986,
non-traditional exports increased 20%-30% annually, official
unemployment fell below 6%, and inflation is relatively low.  These
trends slowed in 1990:  growth diminished to 36%, inflation to over 25%,
and government deficits increased.  A debt buy-back program under the US
"Brady Plan" was completed in May 1990, enabling Costa Rica to
repurchase 60% of its commercial bank debt, cover interest for bonds
issued in exchange for part of debt, and cover payments on debt not
repurchased.  Costa Rica also became the 100th member of the General
Agreement on Tariffs and Trade (GATT) in 1990.
 The successful macroeconomic performance of the late 1980s masked
serious fiscal imbalances, including a large public-sector deficit and
declining international reserves.  Immediately after taking office, the
Calderon Administration began implementing a fiscal austerity program,
including revenue increases and expenditure reductions.  The programs of
the International Monetary Fund, World Bank, the Inter-American
Development Bank, and the US Agency for International Development in
Costa Rica are aimed at maintaining stability and promoting trade and
investment liberalization.
 The Costa Rican Government actively supports the Enterprise for the
Americas Initiative (EAI) announced by President Bush in June 1990.  The
United States and Costa Rica signed a bilateral trade and investment
framework agreement in November 1990 under the EAI as a mechanism to
discuss trade and investment issues.  In January 1991, the Costa Ricans
joined the other Central American countries in committing to discuss the
creation of a free trade zone with Mexico by 1996.  Later in 1991, Costa
Rica and Venezuela began discussions for a free trade arrangement.
Further liberalization of Costa Rica's trade and investment regimes and
greater access to foreign markets by the country's exporters would
provide promising opportunities for foreign and local investors and
increased prosperity for Costa Rica.

DEFENSE
 The 1949 constitution prohibited the establishment of a standing army
in Costa Rica.  The country relies on small Civil and Rural Guard forces
which patrol the borders and perform internal police functions.  Costa
Rica faces no serious external or internal threats and looks to the
collective security provisions of the 1947 Rio Treaty for defense
against external aggression.
 The president is the commander in chief of the public security forces.
The primary organization is the Civil Guard.  It is essentially a
constabulary force responsible for law and order in urban areas and for
land, air, and maritime border surveillance.  The secondary
organization, the Rural Guard, is responsible for rural police functions
throughout Costa Rica's seven provinces.  Both organizations fall under
the Ministry of Government and Public Security.

FOREIGN RELATIONS
 Costa Rica is an active member of the international community.  Its
record in such areas as human rights and advocacy of peaceful settlement
of dispute gives it a weight in world affairs far beyond its size.  The
country lobbied strenuously for the establishment of the UN High
Commissioner for Human Rights and was the first nation to recognize the
jurisdiction of the Inter-American Human Rights Court, which is based in
San Jose.  Costa Rica expressed a firm commitment to the letter and
spirit of the Rio Treaty.
 With the establishment of democratically elected governments in all
Central American nations in 1990, Costa Rica was able to turn its focus
from regional conflicts to the pursuit of democratic and economic
development on the Isthmus.  Costa Rica was instrumental in drawing
Panama into the Central American development process and key to the
establishment of the multinational Partnership for Democracy and
Development in Central America, a partnership of the Central American
nations, industrialized democracies, Colombia, Mexico, and Venezuela,
and international organizations.
 Costa Rica broke relations with Cuba in 1961 to protest Cuban support
of leftist subversion in Central America.

US-COSTA RICA RELATIONS
 The United States and Costa Rica have enjoyed close and friendly
relations based on mutual respect for democratic government, human
freedoms, social and economic rights, and other shared values.  US and
Costa Rican views on foreign policy have not always coincided:  Costa
Rica aligned itself with other Latin American countries against the US

position during the 1982 Malvinas-Falkland war and against US military
operations in Grenada in 1983.  Former President Arias was critical of
US policy in support of the Nicaraguan Resistance.  Costa Rica was among
the first Latin American countries, however, to support the US-led
re-establishment of democratic order in Panama in 1989 and was a firm
supporter of the US position during the Persian Gulf crisis following
Iraq's invasion of Kuwait in 1990.  The United States and Costa Rica
share a strong interest in promoting and strengthening democratic
processes and institutions and enhancing free market oriented economic
development in Central America and throughout the Hemisphere.
 The United States has responded to Costa Rica's economic needs through
developmental assistance programs.  The Peace Corps, with some 150
volunteers, has helped develop skills in agriculture, education, health,
nutrition, and natural resources development.  The US Agency for
International Development works not only to support Costa Rican efforts
to stabilize the economy in the short term but also to help broaden and
accelerate economic growth through policy reforms and trade
liberalization.  Low-income farmers are being helped toward
self-sufficiency, and the urban poor are aided by industrial
development, family planning, and increased educational opportunities.
The private sector, as the primary engine for sustained economic growth,
is also supported by US assistance efforts.
 Many other US agencies, including the US Information Service and the
Department of Agriculture, are active in Costa Rica.  More than 20,000
American private citizens, mostly retirees, live in the country.

Principal US Officials
Ambassador--Luis Guinot, Jr.
Deputy Chief of Mission--Robert O. Homme
AID Mission Director--Ronald Venezia
Consul General--Donna J. Hamilton
Political Counselor--John R. Hamilton
Economic Counselor--Stephen V. Noble
Administrative Counselor--Robert Graninger
Commercial Attache--vacant
Agricultural Attache--David Young
Public Affairs Officer--Louise K. Crane

 The US Embassy in Costa Rica is located at Calle 1, Avenida 3, San Jose
(tel. 33-11-55).   (###)


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