Costa Rica's Changing Economy
Although Costa Rica has a large agricultural sector, it ranks high in the UN's Human Development Index, especially when compared to other Latin American nations. Although forty percent of the country's territory is utilized for agriculture, chiefly coffee and bananas, the country is diversifying with a wide range of other important crops such organic vegetables, fruits, cacao, sugar cane, corn, rice, sorghum, beans, potatoes, pineapples, tobacco, cotton, and sisal hemp have flourished. The fishing and mining industries are less important economically. Electricity is produced by hydroelectric plants and is partly exported.
Costa Rica is the wealthiest and most stable nation in Latin America. "Modernization" is taking place. The government still controls highway construction and maintenance, traffic, telecommunications, electricity and water services, but there are strong signs of liberalization. The traditional export industries of coffee, bananas and beef have become less important over the years as the country is diversifying.
Costa Rica has become an important and ideal location for hi-tech companies. Not only does it have an excellent educational system (with French, German, English and American schools and several specialized universities), but also a favorable tax system and several duty-free zones. Many multinationals such as Swiss Schmiedheiny Group, Mercedes Benz, Intel and Microsoft have moved to the "Silicon Valley of Latin America". Competent computer engineers offer their services here to foreign customers for a much lower salary than these companies would have to pay at home. It has become textbook "external economies of scale".
Text and pictures by Angela and Jörn Malek. The team of 1-CostaRicaLink wishes you the best of times in our little paradise called Costa Rica.
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