Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0028.TXT

Text File | 1994-11-21 | 18KB | 361 lines

National Trade Data Bank
ITEM ID     : ST BNOTES COSTARIC
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - COSTA RICA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | COSTA RICA

US DEPARTMENT OF STATE
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS

BACKGROUND NOTE:  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).