Costa Rica is a developing country with a GDP per capita of around $14000 at present and has a high education rate and better conditions in many other areas. Costa Rica — a Central American country that changed its economy from agriculture-based to more diverse and enjoys one of the highest standards of living in the region — has diverse development potential in economic, social and other terms and further improved quality of life for its people. Years of stable political ground, educated workforce and strategic location make it an attractive destination for foreign investment. Among others, the country’s location and commitment to sustainability and eco-tourism definitely further enhances its appeal for the economic and other sorts of development.
But there are various challenges to its development. A lack of investment in infrastructure, such as roads and public transportation, reliance on tourism, the top source of income, and fiscal deficit issues are crucial challenges to economic growth and development. Additionally, the high cost of energy, income inequality, poverty and inadequate access to services including quality education and healthcare services limit opportunities for social mobility and overall well-being. A significant portion of people live below poverty in Costa Rica. Among others, cumbersome bureaucracy, corruption and environmental degradation also hinder progress in the Republic of Costa Rica. While slow and cumbersome bureaucracy poses a challenge to doing business throughout the country, corruption has led to the investigation of three presidents including the one sentenced to five years in jail.
Governments have made reform-oriented and other steps to address development challenges. Governments have facilitated the scope of foreign investment and gradual trade liberalization, implemented policies and plans (including the National Strategic Plan of Costa Rica 2050 that aims to build a more prosperous nation through sustained growth and equity with equality of opportunities) to promote sustainable development, invested in infrastructure to improve transportation and communication networks and access to services, implemented policies to promote sustainable tourism and provided support for small businesses to stimulate economic development. Additionally, Costa Rica has focused on collaborating with international organizations to receive support and funding for key initiatives and improving education and healthcare systems to ensure the well-being of its citizens and foster long-term development.
But there are diverse flaws in the development steps of Costa Rica, which became fully independent in 1838. There remains a lack of comprehensive planning, effective implementation of policies and programs and coordination among government agencies that has resulted in fragmented efforts and inefficiencies. Insufficient funding for infrastructure projects, corruption and a lack of transparency in government institutions and inadequate focus on sustainable resource management are also less addressed. Among others, there are limited focus on promoting inclusive economic development, reducing income inequality and creating opportunities for marginalized communities in the steps — leading to ineffective outcomes in the economic development of those who belong to the lower income tier — in Costa Rica.
It is desired that developed challenges be addressed to facilitate development in economic, social and other terms. For this, it is vital to implement policies that emphasize sustainable development. Strengthening infrastructure development with increased investments in ports, rail, roads and bridges to support economic development and improve connectivity within the country, encouraging foreign investment through incentives and favorable business policies to stimulate economic development and fostering innovation and entrepreneurship by supporting small businesses and startups to diversify the economy and create new job opportunities are vital. Implementing strategies is vital to reduce bureaucratic red tape and streamline processes for economic activities.
But encouraging public-private partnerships can help leverage resources and expertise for development projects in infrastructure and education — fostering economic development and social progress in the country. Additionally, strengthening regulatory frameworks to promote transparency and accountability and promoting sustainable development practices to protect the environment and natural resources are vital for Costa Rica. Among others, increased collaboration with international organizations and countries can also be helpful in addressing economic, social and other challenges to Costa Rica.
