Think of Costa Rica. What do you associate with this tropical Latin American state? A military dictatorship? Favelas and street kids? Civil war and terrorism? Drug cartels and endemic violence? Political prisoners and extra judicial killings? Greed and corruption? While these problems continue to afflict many Latin American countries tiny Costa Rica is actually a well of stability, democracy, peace and political maturity in the troubled region. Not only a tropical haven but a political paradise; Costa Rica stands as a beacon of hope for the developing world and it could teach the First World a few things too.
Costa Rica is such a surprising country because the history of Latin America stands as an abject lesson in how not to run a country. If every developing country had followed Costa Rica’s path then we would live in a very different world today. In 1900 Argentina was wealthier than Germany with a burgeoning middle class and with their well educated and Europhile populations Brazil, Colombia and Chile had the potential to become prosperous and developed states. Tragically however Latin America, unlike the USA, has never really been able to erase the scars of the colonial era. Perceived injustices festered against the ruling elite and in the 20th century the continent became a Cold War battleground. Conservative forces backed brutal dictatorships and Communist forces backed equally brutal rebel groups. As the continent became ideologically split so to the Latin American economies became increasingly populist and much of the wealth of the early twentieth century was squandered. Although South America has always been one of the most economically unequal continents this was largely as a result of years of imperialism and the turmoil of the Latin Industrial Revolution. If the people had not been exploited by iconoclastic political ideologues then liberal democracies and mixed economies could have quietly alleviated the economic and social inequalities that existed. South America gradually awoke from its violent nightmare during the 1980s and embraced democracy and economic liberalisation. Most major South American states are now democracies with Social Democrat leaders and annual economic growth rates approaching double figures. If this awakening had happened in 1945 then South Americans could conceivably have been enjoying European standards of living today.
Of course there are still those who cling to the iconoclastic, populist ideals that once polarised the continent. Hugo Chavez trumpets himself as the only man battling poverty and imperialism on the continent. Despite the heroic efforts of this one man Venezuela was the only South American country to see its GDP actually shrink between 1999 and 2004. Saved by insanely high oil prices Chavez has broadcast his social welfare programmes to anyone who will listen, although Venezuelans of course don’t have a choice about who they can listen to. Sadly despite this fabulous oil wealth the number of Venezualans living in absolute poverty has actually grown, again no other major South American country as managed this staggering feat. Chavez has failed to give the poor a stake in the economy or improve housing, education or social mobility and unemployment fluctuates between 10 and 20%. When Venezuala’s National Statistics Institute pointed out that poverty had increased by ten points under Chavez, the president (a renowned economist) produced his own study which showed that it had actually decreased by forty points, and I for one believe him. Don’t you?
Chavez’s fortunes are tied to oil prices, and oil currently accounts for 80% of Venezuela’s exports. In the 1950s democratic Venezuela was as rich as France but years of populism have meant that instead of developing into a First World economy Venezuela now finds its future tied to the price of a barrel of oil. As the economist Andrei Illarianov wrote in 2004:
“The “patriotically motivated” economic policy proved devastating as Venezuela slid into its deepest economic crisis. By 2004 its per capita GDP was 37 percent lower than half a century before that. The degrading impact of state command in the economy spread beyond government institutions – it caused the degeneration of Venezuelan society, affecting two generations of people who grew up during state capitalism. Today, Venezuela has no political forces capable of leading it out of the historical deadlock”
As Latin American dictators spent the twentieth century proclaiming their messianic powers and poiltical demagogues tore the continent apart in brutal wars there was one tiny country that quitely got along with electing its leaders, educating its people and slowly building up a functioning economy.
In 1948 Costa Rica got its obligatory civil war out of the way early as Jose Figueres Ferrer swept to power in a bloody coup. But having got rid of an unjust Government Ferrer managed what every other Latin revolutionary has failed to do, he held an election and stood down from power. Since then Costa Rica has had sixty years of unbroken democracy; and it’s not a coincidence that Costa Rica is easily Latin America’s least corrupt country.
Costa Rica’s estimated per capita GDP is $14,000, a respectable ammount for a developing country with few natural resources. By comparison Cuba's per capita GDP is $4,500 and in oil-rich Venezuela it is sill only $6,100. Poverty percentages are as low as in developed countries and the population is as highly urbanised as Finland's. The Government strongly believes in free trade and offers tax incentives for foreign companies investing in the country. The workforce is highly educated and companies such as GlaxoSmithKline, Proctor and Gamble and microchip producer Intel are large scale employers. Rather than selling its rainforests to logging companies Cost Rica has set up huge National Parks and pioneered the idea of eco-tourism, an industy that is now worth some $1.9 billion every year.
Despite being a developing country with few resources Costa Rica has a literacy rate of over 96% which compare favourably with First World countries. It boasts an ethnically diverse population with Jewish, Muslim and Hindu minorities. The country is also a haven for refugees fleeing the death squads and wars in El Salvador, Nicaragua and Colombia. Costa Rica can also claim lowest crime rate in Latin America. As a mature and free society boasting a vibrant free press Costa Rica also takes its interntional obligations seriously. An active member of the United Nations and the International Court Of Human Rights its only foreign policy objective is the establishment of democracy and human righs in the developing world.
Obviously Costa Rica is still a developing country and life is hard for many. It would also be easy for us to be patronising about the fact that at last one developing country has managed to get its act together; but Costa Rica has shown enough political bravery to shake us out of our complacency. Costa Rica decided to abolish its army in 1948, an idea so fantastic that it seems hundreds of years ahead of its time. Costa Rica has also legalised prostituion and plans to become the world’s first carbon-neutral country by 2021. Can you see any British political party making these ideas central parts of their election manifesto?
Sadly you won’t find Jose Figueres Ferrer’s face on any trendy t-shirts nor will you hear any celebrities eulogising the equality of Costa Rican society. And perhaps that’s for the best, but while we are encouraged to become encouraged to become ethical consumers perhaps we should also become ethical tourists and visit this bastion of peace, democracy and freedom. After all Costa Rica deserves our tourist dollars.











