Five Reasons Why Costa Rica isn't a Third-World Country
By, Preston A. Gitlin
President, CR Communities, S.A.
CR Communities
pgitlin@crcommunities.com 

When many people hear about Costa Rica, they think, “Well isn’t it a third world country?” or “It’s probably pretty risky to live there.” Sure, it’s a fair assessment to say that Costa Rica isn’t as developed as the United States, or similar nations, but if you tell someone who’s been to Nicaragua or Honduras that Costa Rica is a third world country, they might look at you cross-eyed.  There are many aspects of Costa Rica that differentiate it from other much less developed countries, but below are five reasons why “third world” appears to be incorrect categorization.

A relatively high economic standing, and is growing fast

At one point known only for its agriculture products and tourist attractions, Costa Rica is growing rapidly in the telecommunications and call center sectors. For example, Intel has made a substantial investment here and continues to create jobs for Costa Ricans. It also has the highest GDP per capita in Central America at $11,862 annually according to an IMF study.  This is relatively high when you consider it’s not a highly industrialized nation and the cost of living is about half of what it is in the United States.

Given current economic woes in the United States, those looking to invest or retire here may wonder how this will affect Costa Rica’s economy. Of course, if companies in the U.S. import less from Costa Rica it will certainly have some impact, but Costa Rica is well prepared to fend off any possible recession because it currently has a surplus. Therefore, the government will have more flexibility in placing more capital in the marketplace short term to boost the local economy.  Just the fact alone that Costa Rica has a surplus should be a solid indicator that “third world” just doesn’t fit. In addition, Costa Rica’s tourism sector, which employs a significant number of people, is expected to continue to be strong as historically in times of recession, people travel closer to home for their vacations.

A highly educated labor force

Due to an abundance of public and even low cost private schools, Costa Rica now boasts arguably the best equipped labor force in all of Latin America.  Its literacy rate of 96% only validates the priority Costa Rica places on education. To put it into perspective, neighboring Nicaragua has a literacy rate of 67.5%.

A highly democratic structure without a military

Costa Rica is one of the world’s most democratic and peaceful nations. Over 50 years ago it abolished its army, allocating those resources to education, public health, and environmental protection.  A current example of how democracy plays an important role in society is the recent passing of CAFTA (Central America Free Trade Agreement).  Costa Rica was the only country to conduct a national referendum where citizens actually decided whether or not to join the U.S.-led free trade agreement. While the referendum did just barely pass, international election watch dog groups said the referendum was highly transparent and there was no evidence of corruption. And, while there were many rallies on both sides of the issue, there was no violence during the referendum process.

Improving infrastructure

Alright, I admit it. The roads in Costa Rica are still a bit more comical than anything else.  However, in the past five years alone, the improvement is so obvious and widespread that it has only encouraged investment around them.  It is also important to note that the main highway which feeds many retirement towns from the airport is very well maintained.  It isn’t until venturing off to more distant and less-traveled side roads that you start to realize an SUV is your best friend here.

Potable water, electricity, and Internet access are abundant. In fact, in the last year alone, I have seen the number of Internet cafés double in the town of San Ramon, where I currently reside.  In my town there have been recent additions such as a mall and movie theater.  Shops with electronic goods, hardware, etc., are everywhere, and even Wal-Mart has opened dozens of stores throughout the country. You won’t have to completely forgo convenience and creature comforts to make the move to paradise.

Affordable and accessible health care

Health care is affordable and accessible to everyone. There are also several established private hospitals in Costa Rica. One in particular, CIMA, has facilities, medical equipment and patient rooms as modern as any hospital in the U.S., with many of its bilingual doctors trained in the United States.  In San Ramon, we have many private health clinics to choose from, and in case of an emergency there is always the public hospital.  Most Costa Ricans are registered under the CAJA system, which would be the equivalent of a low cost insurance program in the U.S.  For those who can afford to go to the private hospital, you will find the doctors to be exceptional.

These are only a few examples to differentiate Costa Rica with typical third world country.  Countries that are normally less developed usually have much more poverty, are engulfed in violence, substitute education and healthcare for more military might, have a dictator, and/or do substantial net damage to the environment.  None of this describes Costa Rica. So, at the very least, please think ‘thrice’ before calling Costa Rica a third world country.

Preston A. Gitlin, originally from Rochester, New York currently lives in San Ramon, Costa Rica. He is President and co-founder of CR Communities, an investment company known for its strong community presence. He also co-owns Boomers in Costa Rica Tours which offers tours for those looking to invest and/or retire and want an introduction to reputable and honest professionals, as well as an array of quality real estate options. He may be reached at  pgitlin@crcommunities.com, or for general inquiries about the tour, boomersincostarica@gmail.com.