GeneralitiesCapital city: San JosePresident : Laura Chinchilla MirandaGeography:51,000 km2 (130/172)Tropical climatNatural ressource: Hydro Power28% of national parks and biological reservesPeople: Main sectors:4,636,348 inhabitants High technology, pharmacology,90% Catolics Tourism, agricultureEnergy: Military:24% fossil, 61% Hydro, No regular military forces15% other renewables 0,6% of GDP expenditures (156/172)
7 Economic Factors and Industrial Policies from Costa Rica1. The Figueres Economic Strategy2. Incorporation to Global Economy in order to compete on productivity, efficiency, technology and higher value3. Adoption of concept of Clusters4. The Signing of the Central American Allegiance for Sustainable Development5. The existence of Zona Francas that foster the social development6. Great Economic Environment7. AND appropriate macroeconomic management.
Impacts: General I• Costa Rica is one of the most attractive investment environments in Latin America• FDI rose 52% in 2011 and reaches almost $2 billion ($ 530 millions in 2008). • GDP per capita since 1999• President Laura Chinchilla, has set from 6.6K to 12k in 2011 a target for foreign investment to • Although only 1/20 of Mexico’s GDP, total $9 billion during her four- tourism generates 20-25% revenue of year term. those which Mexico’s tourism produces• Unemployment rate of 6% (71/200) • Gdp real growth rate: 4,2% (90/216)
Conclusions• Costa Rica = success story.• The country enjoys the highest standard of living in Central America and one of the highest in Latin America and the Caribbean (LAC). Not surprisingly, poverty levels are among the lowest in LAC.• The country’s high income and low poverty levels are just a reflection of good growth performance in recent years.• Over the 1990-2007 period, Costa Rica averaged GDP growth of 5.2 percent, a rate that allowed the country to double its GDP in less than 14 years.• Costa Rica’s productive structure was effectively transformed from one based on primary products to a (high-tech) manufacturing hub and a mecca for ecotourism.
Sources• World Bank Country Sources. http://siteresources.worldbank.org/INTCOSTARICA/Resources/CR_Compet itiveness_Vol1.pdf• Building a Cluster: Electronics and Information Technology in Costa Rica. Harvard Business Review. September 26, 2011.• Promotora del Comercio Exterior de Costa Rica (PROCOMER). http://www.procomer.com/contenido/• Costa Rican Investment Promotion Agency (CINDE). http://www.cinde.org/es• Banco Central de Costa Rica. (BCCR). http://www.bccr.fi.cr/