Costa Rica: Their Place in the Economic World

Christopher Columbus made his first European landing on his final voyage in 1502. Costa Rica became a settlement in 1522. The settlement turned to agriculture after finding little gold or other valuable minerals. Due to its isolation from the Spanish Colony in Mexico, Costa Rica developed an autonomous and individualistic agrarian society (globalEDGE, 2013). In the early 16th century, the Spanish made initial attempts to colonize Costa Rica, but this proved disastrous due to a number of factors such as, resistance by natives, disease infested swamps by mosquitos, pirate raids, and brutal heat. In 1563, Cartago, the first permanent settlement, was established. After Costa Rica declared their independence from Spain in 1821, they became one of several provinces of Central American. However two years later, Costa Rica proclaimed its sovereignty and independence after the federation collapsed (globalEDGE, 2013).

Additionally, Costa Rica still maintains a large agricultural segment, but its economy has expanded to include strong technology and tourism industries. Also, equally important, there is widespread land ownership, as well as a relatively high standard of living. Despite Costa Rica’s poverty rate has been at roughly 25% in 2011, with an unemployment rate of approximately 8% in 2013. Costa Rica’s economy is basically stable which is dependent on its agriculture, tourism and, electronic exports.

The GDP of Costa Rica is comprised of the following sectors: Industry (21.3%), Services (21.3%), and Agriculture (6.2%). Costa Rica’s major economic resources are its fertile land and frequent rainfall, its well-educated population, and its location in the Central American peninsula, which provides easy access to North and S...

... middle of paper ...

...ematic to acquire the support of Congress. However, the opposition is slip. The fiscal reform was rejected and that of the labor market blocked. The above average business environment would have benefited greatly from the adoption of that report. Costa Rica holds many strengths such as: being a Democratic institution since 1949, Diversified trade because of multiple trade agreements, and Tourism. However, there are also weaknesses such as, their inadequacy of infrastructures, economic and financial dependent on the U.S., lack of skilled labor, and high interest rates (globalEDGE, 2013).

Works Cited

Central Intelligence Agency. (2014, april 11). The World Fact Book. Retrieved April 29, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/cs.html

globalEDGE. (2013). Retrieved from http://globaledge.msu.edu/countries/costa-rica/economy