Costa Rica: Background and U.S. Relations
Abstract
Costa Rica is a relatively politically stable and economically developed nation with a long tradition of civilian democracy. Former president (1986-1990) and Nobel-laureate Oscar Arias of the National Liberation Party was elected President in 2006. Throughout his term, Arias has focused on expanding the country's social safety net and increasing free trade. He faced strong opposition to the country's inclusion in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), but eventually secured its ratification and implementation. Arias has also been active in foreign affairs, establishing diplomatic relations with China and Cuba after decades without formal ties. Once a predominantly agricultural nation, Costa Rica has established a diversified economy with a strong export sector. Under President Arias, the country has increased its social investment, experienced significant economic growth, and seen a reduction in poverty. The global financial crisis and economic downturn, however, threatens to erase these gains. President Arias has responded to the crisis with an ambitious fiscal stimulus and social protection plan. While the plan may do much to mitigate the social impacts of the crisis, analysts believe it will be unable to prevent Costa Rica's economy from slowing considerably in 2009.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 22, 2009
- Accession Number
- ADA501021
Entities
People
- Peter J. Meyer
Organizations
- Library of Congress