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Although explored by the Spanish early in the 16th century, initial attempts at colonizing Costa Rica proved unsuccessful due to a combination of factors, including: disease from mosquito-infested swamps, brutal heat, resistance by natives, and pirate raids. It was not until 1563 that a permanent settlement of Cartago was established in the cooler, fertile central highlands. The area remained a colony for some two and a half centuries. In 1821, Costa Rica became one of several Central American provinces that jointly declared their independence from Spain. Two years later it joined the United Provinces of Central America, but this federation disintegrated in 1838, at which time Costa Rica proclaimed its sovereignty and independence. Since the late 19th century, only two brief periods of violence have marred the country's democratic development. Although it still maintains a large agricultural sector, Costa Rica has expanded its economy to include strong technology and tourism industries. The standard of living is relatively high. Land ownership is widespread. In January 2008, Costa Rica assumed a nonpermanent seat on the UN Security Council for the 2008-09 term.
deforestation and land use change, largely a result of the clearing of land for cattle ranching and agriculture; soil erosion; coastal marine pollution; fisheries protection; solid waste management; air pollution
four volcanoes, two of them active, rise near the capital of San Jose in the center of the country; one of the volcanoes, Irazu, erupted destructively in 1963-65
chief of state: President Oscar ARIAS Sanchez (since 8 May 2006); First Vice President (vacant); Second Vice President (vacant); note - the president is both the chief of state and head of government
head of government:
President Oscar ARIAS Sanchez (since 8 May 2006); First Vice President (vacant); Second Vice President (vacant)
cabinet:
Cabinet selected by the president
elections:
president and vice presidents elected on the same ticket by popular vote for a single four-year term; election last held 5 February 2006 (next to be held in February 2010)
election results:
Oscar ARIAS Sanchez elected president; percent of vote - Oscar ARIAS Sanchez (PLN) 40.9%; Otton SOLIS (PAC) 39.8%, Otto GUEVARA Guth (PML) 8%, Ricardo TOLEDO (PUSC) 3%
Authentic Member from Heredia [Jose SALAS]; Citizen Action Party or PAC [Epsy CAMPBELL Barr]; Costa Rican Renovation Party or PRC [Gerardo Justo OROZCO Alvarez]; Democratic Force Party or PFD [Marco NUNEZ Gonzalez]; General Union Party or PUGEN [Carlos Alberto FERNANDEZ Vega]; Homeland First or PP [Juan Jose VARGAS Fallas]; Independent Worker Party or PIO [Jose Alberto CUBERO Carmona]; Libertarian Movement Party or PML [Otto GUEVARA Guth]; National Christian Alliance Party or ANC [Juan Carlos CHAVEZ Mora]; National Integration Party or PIN [Walter MUNOZ Cespedes]; National Liberation Party or PLN [Francisco Antonio PACHECO Fernandez]; National Patriotic Party or PPN [Daniel Enrique REYNOLDS Vargas]; National Restoration Party or PRN [Fabio Enrique DELGADO Hernandez]; National Union Party or PUN [Arturo ACOSTA Mora]; Nationalist Democratic Alliance or ADN [Jose Miguel VILLALOBOS Umana]; Patriotic Union or UP [Jose Miguel CORRALES Bolanos]; Social Christian Unity Party or PUSC [Luis FISHMAN Zonzinski]; Union for Change Party or UPC [Antonio ALVAREZ Desanti]; United Leftist Coalition or IU [Humberto VARGAS Carbonel]
Authentic Confederation of Democratic Workers or CATD (Communist Party affiliate); Chamber of Coffee Growers; Confederated Union of Workers or CUT (Communist Party affiliate); Costa Rican Confederation of Democratic Workers or CCTD (Liberation Party affiliate); Costa Rican Exporter's Chamber or CADEXCO; Costa Rican Solidarity Movement; Costa Rican Union of Private Sector Enterprises or UCCAEP [Rafael CARRILLO]; Federation of Public Service Workers or FTSP; National Association for Economic Development or ANFE; National Association of Educators or ANDE; National Association of Public and Private Employees or ANEP [Albino VARGAS]; Rerum Novarum or CTRN (PLN affiliate) [Gilbert BROWN]
five horizontal bands of blue (top), white, red (double width), white, and blue, with the coat of arms in a white elliptical disk on the hoist side of the red band; above the coat of arms a light blue ribbon contains the words, AMERICA CENTRAL, and just below it near the top of the coat of arms is a white ribbon with the words, REPUBLICA COSTA RICA
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Exports have become more diversified in the past 10 years due to the growth of the high-tech manufacturing sector, which is dominated by the microprocessor industry and the production of medical devices. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the fiscal incentives offered in the free-trade zones. Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. Poverty has remained around 20% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans in Costa Rica legally and illegally are an important source of - mostly unskilled - labor, but also place heavy demands on the social welfare system. Under the ARIAS administration, the government has made strides in reducing internal and external debt - in 2007, Costa Rica had its first budget surplus in 50 years. Reducing inflation remains a difficult problem because of rising commodity import prices and labor market rigidities, though lower oil prices will decrease upward pressures. The Central Bank is moving towards a more flexible exchange rate system to focus on inflation targeting by 2010. The US-Central American Free Trade Agreement (CAFTA) entered into force on 1 January 2009, after significant delays within the Costa Rican legislature. Nevertheless, economic growth has slowed in 2009 as the global downturn reduced export demand and invesment inflows.
general assessment: good domestic telephone service in terms of breadth of coverage; restricted cellular telephone service; state-run monopoly provider is struggling with the demand for new lines, resulting in long waiting times
domestic:
point-to-point and point-to-multi-point microwave, fiber-optic, and coaxial cable link rural areas; Internet service is available
international:
country code - 506; landing point for the Americas Region Caribbean Ring System (ARCOS-1) fiber-optic telecommunications submarine cable and the MAYA-1 submarine cable that provide links to South and Central America, parts of the Caribbean, and the US; connected to Central American Microwave System; satellite earth stations - 2 Intelsat (Atlantic Ocean) (2007)
the ICJ has given Costa Rica until January 2008 to reply and Nicaragua until July 2008 to rejoin before rendering its decision on the navigation, security, and commercial rights of Costa Rican vessels on the Río San Juan over which Nicaragua retains sovereignty
current situation: Costa Rica is a source, transit, and destination country for men, women, and children trafficked for the purposes of commercial sexual exploitation and forced labor; women and girls from neighboring states, Russia, Uzbekistan, and the Philippines are trafficked into the country for sexual exploitation; Costa Rica also serves as a transit point for victims trafficked to North America and Europe; the government identifies child sex tourism as a serious problem; men, women, and children are also trafficked within the country for forced labor in fishing and construction, and as domestic servants
tier rating:
Tier 2 Watch List - Costa Rica is on the Tier 2 Watch List for its failure to provide evidence of increasing efforts to combat human trafficking, particularly in terms of its failure to improve its inadequate assistance to victims; while Costa Rican officials recognize human trafficking as a serious problem, the lack of a stronger response by the government is of concern (2008)
transshipment country for cocaine and heroin from South America; illicit production of cannabis in remote areas; domestic cocaine consumption, particularly crack cocaine, is rising; significant consumption of amphetamines; seizures of smuggled cash in Costa Rica and at the main border crossing to enter Costa Rica from Nicaragua have risen in recent years
(2008)
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