PostRevolutionary Central America

1
Post-Revolutionary Central America

• The Costa-Rican Model
• Following a bloody, 44-day civil war, Pres. José
  Figueres abolishes army in 1949
  
• 1953 Constitution enshrines non-militant
  democracy
  
• As commodity prices (coffee, bananas, etc.) fell
  in the 1970s, Costa Rica invested in education to
  foster high-tech growth
  
• Retirees have flocked to C.R. as laws allow
  foreigners to buy property and attain legal
  residence on attractive terms
  
• Tourism is also a major source of revenue,
  surfing and ecotourism being the major attractions

José Figueres Ferrer, national hero of Costa Rica
2
Retirement in Costa Rica

• Requirements for Legal Residence
• 600 / mo pension from approved source, OR
• 1,000 / mo investment income from approved
  source, OR
  
• Invest 50,000 - 200,000 in approved sector of
  the economy
  
• Unrestricted residency is available after only 2
  years on one of the above plans
  
• Today, more than 250,000 foreigners live in Costa
  Rica, contributing substantially to the local
  economy

3
Questions

• For Costa Ricans, what are the benefits of
  allowing Americans to retire in Costa Rica?
  
• Who are the winners in Costa Rica?
• Who are the losers?

4
The Downside of Development

• Sexual exploitation?
• On top of all the above, Costa Rica is
  considered a single man's paradise. Costa Rican
  women have an unparalleled reputation as being
  the most beautiful, flirtatious and accessible
  women in the Latin America including Brazil. The
  ladies of Costa Rica are more warm-hearted and
  eternally devoted than their North American
  counterparts. Middle age men can find the
  "Fountain of Youth" here since age does not seem
  to pose an obstacle when meeting women...
• http//www.retireincostarica.net/

5
What's Good for the Goose...

• If you are looking for someone for romance,
  Costa Rica might just be the right place for
  you... Ladies, regardless of age, you will find
  gentleman admirers in Costa Rica if you so
  desire. Due to machismo, Costa Rican men are more
  flirtatious and aggressive than North American
  men. Most Costa Rican men think foreign women
  have looser morals and are easier conquests than
  ticas (Costa Rican women). So, be careful to take
  time to develop a long-term, meaningful
  relationship and dont rush things.
• Source http//www.escapeartist.com/e_Books/Costa_
  Rica_Report/Costa_Rica.html

6
Questions

• What gender stereotypes are built into the
  preceding advertisement?
  
• Nevertheless, what does the ad seem to promise
  both to women looking for a serious relationship,
  and to those looking for something more...
  recreational?

7
Questions

• What is the attraction for a Costa Rican woman?
• And for an American man?
• Who is exploiting whom in this sort of
  transaction?

The Miss Reef Costa Rica
Pageant
8
High Tech Costa Rica
Costa Rica Rides High-Tech Wave
Los Angeles Times Date Published 3/18/2006
Costa Rica has quietly pushed itself far ahead in
the IT outsourcing market and now ranks third
behind India and China as the most competitive
destination. With a population of just over 4
million, it's an impressive feat, but it's
understandable when you consider Costa Rica's
lower costs, educated and bilingual workforce,
political stability, tax breaks and location. But
it's Costa Rica's modest population that may
impede its long-term outsourcing goals. Costa
Rica's current strategy for growth relies on
joint ventures with U.S. companies that focus on
niche IT areas.
9
Intel in Costa Rica

• Intel built a 300M plant in CR in 1997
• 300M is 2.1 of CR's GDP!
• Intel has invested a total of 600M in the
  country
  
• Plus 50-150M in local purchases per year
• The electronics industry in CR now employs 12,000
  and exports 1.65B / yr.

10
Costa Rican High-Tech Coopesa

• An aircraft maintenance company
• Customers include major airlines in U.S. and
  Europe
  
• Certified by F.A.A.
• Services Boeing and Airbus aircraft

11
Education in Costa Rica

• Since the 70s, CR has invested more than 28 of
  the national budget on primary and secondary
  education.
  
• English is obligatory
• University of Costa Rica has 35,000 students, 50
  on full scholarship
  
• Even full tuition is only 200 / semester
• By 1980, 25 of student-age Costa Ricans were
  enrolled

12
Healthcare

• Universal coverage- Medical care in Costa Rica is
  free to all residents (from check-ups to heart
  surgery to organ transplants)?
  
• Quality of care is excellent, and even attracts
  medical tourists from U.S.
  
• Tropical diseases have been virtually eliminated

Another victim of Big Government
13
Solidarity Comprehensive Social Insurance

• In addition to education and healthcare, the
  state provides
  
• Universal retirement benefits (social security)?
• Disability insurance
• Unemployment insurance
• Maternal benefits
• Life insurance

An unhappy Costa Rican family
14
Results

• Infant mortality has plunged from 25.6 in 1920
  to 1.5 in 1990.
  
• The annual death rate dropped from 1.8 in 1944
  to 0.39 by 1989.
  
• Death from malnutrition or preventable diseases
  has become a rarity
  
• Life expectancy is higher than for a U.S.-born
  citizen!!
  
• Though average income is only 3,000, Costa Rica
  is a secure, middle class country

15
Comparative Success
Sources CIA World Fact Book https//www.cia.g
ov/library/publications/the-world-factbook/index.h
tml The Heritage Foundation http//www.heritage.
org/research/features/index/countries.cfm
Reporters Without Borders http//www.rsf.org/rubr
ique.php3?id_rubrique554 United Nations Develop
ment Program http//hdr.undp.org/en/statistics/
The New Economics Foundation http//www.happypl
anetindex.org/list.htm
16
Conclusions

• Costa Rica is still a relatively poor country
  with a low average annual income (3,000)?
  
• Costa Rica has achieved a high level of
  well-being for its citizens as measured by
  health, life expectancy, education, employment
  opportunities, security, and overall growth of
  the economy.
• Costa Rica is a slightly more equal, middle class
  society than the U.S.
  
• Costa Ricans are slightly more happy with their
  lives than are U.S. citizens
  
• Costa Rica has achieved this by focusing
  government resources on meeting social needs,
  while remaining open to immigration, investment
  and trade
• Significant challenges remain

17
Questions

• To what extent is the Costa Rican model
  appropriate to other countries such as the U.S?
  
• Could the Costa Rican model have avoided the
  civil wars (revolutionaries vs. dictators) in
  Guatemala, El Salvador and Nicaragua?
  
• Is the Costa Rican model applicable to those
  nations now?
  
• What are the advantages and disadvantages of
  Costa Rica's approach to development?

18
Panama

• Has passed residence and property laws similar to
  Costa Rica's to attract American retirees
  
• Banking secrecy and corporate anonymity laws have
  made Panama City a global financial center
  
• The current project of widening the Panama Canal
  should give Panama a greater share of U.S.-China
  trade
  
• Dollarization brings monetary stability

19
Crime The Revolution's Children

• Guatemala 20 crimes per 100 pop. per year, over
  40 murders per 100,000
  
• El Salvador has one of the highest murder rates
  in the world 59/100,000
  
• Increased 25 from 2004 to 2005
• Mara Salvatrucha has approx. 100,000 members
  worldwide
  
• Activities Drug trafficking, human trafficking,
  theft, assassination
  
• Crime threatens to spread to Costa Rica and Panama