Costa Rica, officially the Republic of Costa Rica (Spanish: Costa Rica or República de Costa Rica, pronounced [reˈpuβlikaðeˈkostaˈrika]), is a republic in Central America, bordered by Nicaragua to the north, Panama to the east-southeast, the Pacific Ocean to the west and south, and the Caribbean Sea to the east. Costa Rica was the first country in the world to constitutionally abolish its army.
Economy
According to the CIA World Factbook, Costa Rica's GDP per capita is US$12,500; however, this developing country still faces the second highest inflation rate in Latin America, lack of maintenance and new investment in infrastructure, over 740,000 (18%) people below the poverty line and just over 270,000 (6.6%) unemployed. The Costa Rican economy grew nearly 5% in 2006 after experiencing 4 years of slow economic growth.[8]
The central government offers tax exemptions for those who are willing to invest in the country. Several global high tech corporations have already started developing in the area exporting goods including chip manufacturer Intel, pharmaceutical company GlaxoSmithKline, and consumer products company Procter & Gamble. Trade with South East Asia and Russia has boomed during 2004 and 2005, and the country is expected to obtain full Asia-Pacific Economic Cooperation Forum (APEC) membership by 2007 (the country became an observer in 2004).
For the fiscal year 2005, the country showed a government deficit of 2.1%, internal revenue increased an 18%, and exports increased a 12.8%. Revised economic figures released by the Central Bank indicate that economic growth stood at 5%, nevertheless the country faced high inflation (14%) and a trade deficit of 5.2%. As of 2006, Costa Rica's inflation rate stands at 11.5% and ranks 197 out of 227, Latin Americas 2nd highest inflation rate, after Venezuela.[9]
In recent times electronics, pharmaceuticals, financial outsourcing, software development, and ecotourism have become the prime industries in Costa Rica's economy. High levels of education among its residents make the country an attractive investing location.
The unit of currency is the colón (CRC), which trades around 503 [1] to the U.S. dollar; currently about 756 to the euro. On October 16, 2006, a new currency exchange system was introduced, allowing the value of the CRC colón to float between two bands as done previously by Chile. The idea is that by doing so the Central Bank will be able to better tackle inflation and discourage the use of US dollars. Since that time, the value of the colón against the dollar has stabilized.
Costa Rica's location provides easy access to American markets as it has the same time zone as the central part of the United States and direct ocean access to Europe and Asia. A country wide referendum has approved a free trade agreement with the United States.
Demographics
According to the CIA World Factbook, Costa Rica has a population of 4,133,884 of which 94% are Mestizo or white, 3% black, 1% Amerindian, 1% Chinese and 1% other.[26] The exact amount, however, is not known because the Costa Rican census combines mestizos and whites in one category. The white population is primarily of Spanish ancestry[27] with significant numbers of Costa Ricans of Italian, German, Jewish and Polish descent. In contrast to its neighboring countries' populations, less mixing of the Spanish settlers and the indigenous populations occurred. Therefore, a vast majority of Costa Ricans are either of Spanish or of mixed mestizo heritage
Just under 3% of the population is of black African descent. The majority of the afro Costa Ricans are Creole English-speaking descendants of nineteenth century black Jamaican immigrant workers, as well as slaves who were brought during the Atlantic slave trade.
The indigenous or Amerindian population numbers around 1%, or over 41,000 individuals. In the Guanacaste Province a significant portion of the population descends from a bi-racial mix of local Amerindians and Spaniards. There is also an expatriate community of people of all ages from the United States, Canada, Germany, Netherlands, Britain, and other countries, especially in the Central Valley city of Escazú.
Costa Rica hosts many refugees, mainly from Colombia and Nicaragua. As a result, an estimated 10% to 15% of the Costa Rican population is made up of Nicaraguans,[28] most of whom migrate for seasonal work opportunities and then return to their country. There is also a growing number of Peruvian refugees. Moreover, Costa Rica took in many refugees from a range of other Latin American countries fleeing civil wars and dictatorships during the 1970s and 80s - notably from Chile and Argentina, as well as those from El Salvador who fled from guerrillas and government death squads.[29]
Economy
According to the CIA World Factbook, Costa Rica's GDP per capita is US$12,500; however, this developing country still faces the second highest inflation rate in Latin America, lack of maintenance and new investment in infrastructure, over 740,000 (18%) people below the poverty line and just over 270,000 (6.6%) unemployed. The Costa Rican economy grew nearly 5% in 2006 after experiencing 4 years of slow economic growth.[8]
The central government offers tax exemptions for those who are willing to invest in the country. Several global high tech corporations have already started developing in the area exporting goods including chip manufacturer Intel, pharmaceutical company GlaxoSmithKline, and consumer products company Procter & Gamble. Trade with South East Asia and Russia has boomed during 2004 and 2005, and the country is expected to obtain full Asia-Pacific Economic Cooperation Forum (APEC) membership by 2007 (the country became an observer in 2004).
For the fiscal year 2005, the country showed a government deficit of 2.1%, internal revenue increased an 18%, and exports increased a 12.8%. Revised economic figures released by the Central Bank indicate that economic growth stood at 5%, nevertheless the country faced high inflation (14%) and a trade deficit of 5.2%. As of 2006, Costa Rica's inflation rate stands at 11.5% and ranks 197 out of 227, Latin Americas 2nd highest inflation rate, after Venezuela.[9]
In recent times electronics, pharmaceuticals, financial outsourcing, software development, and ecotourism have become the prime industries in Costa Rica's economy. High levels of education among its residents make the country an attractive investing location.
The unit of currency is the colón (CRC), which trades around 503 [1] to the U.S. dollar; currently about 756 to the euro. On October 16, 2006, a new currency exchange system was introduced, allowing the value of the CRC colón to float between two bands as done previously by Chile. The idea is that by doing so the Central Bank will be able to better tackle inflation and discourage the use of US dollars. Since that time, the value of the colón against the dollar has stabilized.
Costa Rica's location provides easy access to American markets as it has the same time zone as the central part of the United States and direct ocean access to Europe and Asia. A country wide referendum has approved a free trade agreement with the United States.
Demographics
According to the CIA World Factbook, Costa Rica has a population of 4,133,884 of which 94% are Mestizo or white, 3% black, 1% Amerindian, 1% Chinese and 1% other.[26] The exact amount, however, is not known because the Costa Rican census combines mestizos and whites in one category. The white population is primarily of Spanish ancestry[27] with significant numbers of Costa Ricans of Italian, German, Jewish and Polish descent. In contrast to its neighboring countries' populations, less mixing of the Spanish settlers and the indigenous populations occurred. Therefore, a vast majority of Costa Ricans are either of Spanish or of mixed mestizo heritage
Just under 3% of the population is of black African descent. The majority of the afro Costa Ricans are Creole English-speaking descendants of nineteenth century black Jamaican immigrant workers, as well as slaves who were brought during the Atlantic slave trade.
The indigenous or Amerindian population numbers around 1%, or over 41,000 individuals. In the Guanacaste Province a significant portion of the population descends from a bi-racial mix of local Amerindians and Spaniards. There is also an expatriate community of people of all ages from the United States, Canada, Germany, Netherlands, Britain, and other countries, especially in the Central Valley city of Escazú.
Costa Rica hosts many refugees, mainly from Colombia and Nicaragua. As a result, an estimated 10% to 15% of the Costa Rican population is made up of Nicaraguans,[28] most of whom migrate for seasonal work opportunities and then return to their country. There is also a growing number of Peruvian refugees. Moreover, Costa Rica took in many refugees from a range of other Latin American countries fleeing civil wars and dictatorships during the 1970s and 80s - notably from Chile and Argentina, as well as those from El Salvador who fled from guerrillas and government death squads.[29]
Name:Lim Shang Pei(29)
Class:4e1(group4)
Date:15-2-2008
1 comment:
What is the country's HDI ranking?
Do you think the presence of so many refugees in the country will hinder development? How so?
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