Costa Rica

Over the past few decades, this nation of about 5.3 million people has achieved remarkable economic and social progress. An upper-middle-income country, Costa Rica is the longest-standing democracy in Latin America and the newest member of the Organization for Economic Cooperation and Development (OECD). Outpacing much richer nations, Costa Rica also routinely ranks amongst the happiest countries in the world. In 1949, it abolished its military and allocated valuable resources to establish a welfare system that today offers universal access to healthcare, primary and secondary education, and relatively generous pension benefits. Further, its governments have pursued an outward-oriented economic strategy, emphasizing foreign investment and gradual trade liberalization.

With a well-educated workforce, relatively low corruption levels, and high-tech industries, Costa Rica is the highest per-capita recipient of foreign direct investment (FDI) in the region. Yet, weaknesses persist, including a large informal economy, high unemployment, inadequate or deteriorating infrastructure, bureaucratic complexities, high energy costs, and exposure to natural disasters.