Equitable Economic Development
The Costa Rican Case for Social Services, Education, and Environmentalism
Costa Rica has, over the past seventy years, developed a reputation as one of Latin America’s success stories. The country ranks highly in many metrics of social and economic development, including HDI and the World Happiness Index, even as its neighboring countries in Latin America have lagged behind. Though Costa Rica’s achievements are well-documented, less chronicled are the underlying and structural factors that have undergirded its political and economic stability. Many observers have pointed to the abolishment of the military and establishment of universal suffrage in 1948 as prime determinants of Costa Rica’s advancements, but this argument fails to establish why the country successfully adopted and maintained a stable political and economic regime in the first place.
In our research, we found that the largest contributing factor for Costa rica’s relative success has been the relative lack of colonialism compared with its neighbors. The nation was not encountered by Columbus until his fourth and final trip, and was only explored for the purpose of discovering a strait to sail across central america. Despite the limited contact, the nation suffered greatly from new diseases and invasion by the Spanish , although to a lesser extent than its neighbors. At the time, the area was much less populated and far more decentralized, which limited both disease and destruction from the Conquistadors.
Our method of research primarily utilized in-person interviews, as well as personal observation and travel to significant sites including parks, museums, and government buildings. We focussed their thoughts on the nation’s development and history, as well as individually tailored questions based on their background and research.
Visiting environmentally protected areas, and their surrounding communities will give insight into how these exemplary policies are instituted in practice. For example, we visited the Arenal Volcano, which has rapidly become one of the most popular destinations for tourists. While the benefits to the economy are undeniable, locals complain that surrounding towns have changed and adapted to the influx of tourists, jeopardizing local culture.
The country’s steep terrain limited the feasibility of large plantations, and as a consequence, neocolonialism. In other Central American countries, foreign companies quickly established large plantations and asserted a disproportionate influence in the countries’ economic and political spheres. The harsh inequality that occurred – with the majority of citizens forced to work for large landowners and live in poverty – contrasts with Costa Rica, where small plantations flourished due to the accessibility of the terrain. The resulting economic system was much more egalitarian and did not lead to vast disparities in political power that emboldened oppressive dictators in other Central American countries.
The Spanish search for gold was a driving factor in their conquest, but Costa Rica's only source of precious metals and stones was its rivers, because volcanic and sedimentary rock blankets the landscape, rather than intrusive igneous rocks which have high mining yields. The lack of an industrial base necessitated a more agrarian economy, which particularly benefited from a more egalitarian distribution of resources.
Recently, Costa Rica has benefitted from what was once considered rugged and inhospitable terrain. Eco-tourism is one of its largest economic forces, and it benefits from a substantival services sector due to its high educational attainment and human capital.
Wildlife in the Costa Rican Jungle
For us, this was experience was humbling and enthralling. Our journey across the country also felt as though we journeyed across time as we studied what makes Costa Rica so exceptional.
We had the opportunity to visit multiple locations that have become pillars of the country’s ecotourism industry. Arenal Volcano National Park, the Monteverde Cloud Forest Reserve, and Manuel Antonio National Park all serve as cornerstones of the country’s remarkable public lands system and hotspots of remarkable biodiversity.
Again, it would not have been possible to complete this research without the support of the Keller Family venture grant program. Though we have previously studied aspects of Costa Rica’s success in an academic setting, this grant provided us the incredible opportunity to experience and research the country’s democratic, economic, and environmental cultures in person. Additionally, this experience allowed us to directly apply many of the concepts we have learned in various classes and test hypotheses offered by prominent thinkers in the fields of development economics and political economy.
