Discovering Costa Rica

Government The Costa Rican government is a Democratic Republic and is ruled by a series of constitutional checks and balances between its three branches: Executive, Judicial, and Legislative. The Executive Branch is comprised of the President, who is supported by two Vice-presidents and his Cabinet. The Legislative Assembly consists of 57 Congressmen who are elected every four years. Finally, power within the legal system resides in the Judicial Branch, which enforces compliance with the law and protects the country’s inhabitants.

Costa Rica has a long tradition and stable democracy, which is recognized worldwide and has over 150 years of history. The last World Bank survey for Global Governance Indicators ranks Costa Rica the number one country in Latin America for political stability. The universal health care and education system have been the pillars for the national stability.

Economy Costa Rica benefits from ports on both the Pacific and Atlantic oceans. Its economy relies heavily on the export of agriculture and electronics, although exports have become more diversified over the past 10 years due to manufacturing technologies. Tourism is another key component of the economy; Costa Rica represents 1% of the planet’s surface, but contains 5% for the world’s biodiversity, making it a first-place destination for ecotourism. + Agriculture Products: Coffee, pineapples, bananas, plantains, sugar, corn, rice, beans, potatoes, beef, timber, melons, a variety of vegetables, ornamental plants, and fish + Exports: Coffee, bananas, sugar, pineapples, melons, ornamental plants, electronic components, medical equipment and seafood Despite the relatively stable economy, poverty has remained around 20% for nearly 20 years. Reducing inflation has been difficult because of rising import prices, labor market rigidities, and fiscal deficits. The government also continues to wrestle with its large internal debt. Meanwhile, foreign investors are attracted to the country’s political stability, education, and the fiscal incentives offered in the free-trade zones. Costa Rica is committed to improving market access for Costa Rican products by means of trade liberalization. In recent years, Costa Rica has signed free trade agreements with Mexico, Canada, Chile, Dominican Republic, Central America, the United States and the Caribbean Community. It recently approved the Central American Free Trade Agreement (CAFTA) with the United States, which will bring economic reforms and a better environment for foreign investment. Costa Rica has also started free trade negotiations with the European Union, where it currently has preferential access through the Generalized System of Preferences, and with China.

© 2015 Dwellworks, LLC

Page 5

Discovering Costa Rica