Costa Rica Costa Rica Background Costa Rica is a Central American success story: since the late 19th century, only two brief periods of violence have marred its democratic development. Although still a largely agricultural country, it has expanded its economy to include strong technology and tourism sectors. The standard of living is relatively high. Land ownership is widespread. Costa Rica Economy Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. At the same time, distribution of income remains severely unequal. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. However, traditional export sectors have not kept pace. Low coffee prices and an overabundance of bananas have hurt the agricultural sector. The government continues to grapple with its large deficit and massive internal debt, with the need to modernize the state-owned electricity and telecommunications sector, and with the problem of bringing down inflation. Costa Rica Location Middle America, bordering both the Caribbean Sea and the North Pacific Ocean, between Nicaragua and Panama Costa Rica Flag 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
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