Costa Rica

Exceptionalism

in

Central America

Colonial Antecedents• Colonization begins in 1560 but is slow

– Few minerals– Distance from Guatemalan and Mexican centers of power

• Indigenous die out, flee, or are assimilated– Still some remain in southern CR– Bruncas and others

• Socioeconomic differentiation exists– It is just less severe

• Major differences– Never developed hacienda system– Small holder farming persists and keeps peasants relatively free– Distance from seats of powerexperience in self government– Learned civil approach to conflicts

19th Century: the first coffee republic

• 1823: Liberal/Conservative conflict not so strong in CR—quick liberal victory

• Until 1905: instability in leadership– ¼ serve 1 year– 1/6 toppled by coup– 1/3 of period under military rule

• 1870: Colonial Tomas Guardia – Modernization, constitutional reform, education– (UFCO period starts)– Conservatives disappear

20th Century• Ethnic diversity: Laborers to work on railroads• Economic diversificationLabor organization

and strikes– 1923 election contested by an alliance of political party,

unions, and progressive Catholics

– 1934: CR communist party wins major strike against UFCO powerful labor confederation

• Middle class also expands rapidly during 1930’s• 1940’s: the most critical decade in CR history

1940’s• Rafael Angel Calderon Guardia

– Social security reforms– Popular alliance with Comm. Party, unions and church

• Labor code, right to strike

• VP survives him– Elites are alienated

• 1948: Calderon goes for a second round– Set up election board and gives control to the opposition

• Ulate wins fraudulently• Calderonistas refuse to certify

• Civil war: short but bloody– Jose Figueres (National Liberation Party) rebels

Figueres and the NLP• Junta rules for 18 months• Repressed labor• Key social democratic reforms

– Abolition of the armed forces– Independent electoral agency

• Supreme Electoral Tribunal

– Constitution• Popular sovereignty• Equality of citizens before the law• Limited government

– Relinquished power back to Ulate in 1949• NLP eventually wins in 1953

Costa Rican Democracy• Political rights and guarantees

– Freedom of written and spoken expression, movement, religion, association and petitition of government

– Freedom from self-incrimination, cruel or unusual punishment– Right to due process, privacy and free access to information

from gov

• Social rights– Government protection for families, mothers and children– Equal rights between marriage partners

• Economic rights– Right to organize, collective bargaining, strike– Equal pay for equal work– Minimum wage, overtime, etc. – Public health care

Political Economy: 1949-1980• Development model transforms CA

– Nationalized banking and insurance– import substitution model– Regional integration under the CA Common Market

• Foreign investment expands infrastructure• GDP: 5X between 1950-1975 (per capita doubles)

• 1973: global economy spurs downturn– 1973 oil prices trade deficit and depression– Inflation– Gov continues spending, borrows money from abroad

• By 1980: debt rises from 11.5% GDP in 1970 to 147% in 1982

1980’s: SAPs and stabilization• CR trades support for US in Nicaragua for economic

stabilization $1.14 billion between 1982-1988 (10 x previous period)

– Temporary respite

– Brought turbulence into N. CR

• Second phase: starting in 1985: SAPs– Neoliberal reforms engineered by ILI’s

• SAP I (1985): reduces government size and spending

• SAP II (1989): tax reform, elimination of subsidies, promotion of NTEX, tariff reduction, privatization

– > reduced debt service and budget deficits

• SAP III (mid 1990’s): deeper cuts, further privatization provokes major protests in the streets

– Teachers, port workers,

Impacts of Neoliberal Reforms • New niches in global economy

NTEX, telecommunications, ecotourism• Income disparities appear to grow

– Social malaise: drugs and violence increase

• Implications for democracy:– Stronger and healthier state

– Stimulation of greater civil society

– SAPS are imposed by outsiders:economic decisions are in the hands of foreign private investors and intergovernmental lenders

– Greater legislation by decree and bureaucratic rule making (not by representation in the LA)

Non Traditional Exports• Butterfly producers

• Anthurium producers

Anthurium production

Tilapia farming

Butterflies

Butterflies

http://wwwc.catalog.com/cgibin/htimage/calypso/xcosta.map

Citizen action against Harken Co. oil drilling in Talamanca

Anti-dam protests by Brunca Indians

CA Regionalism

• Kingdom of Guatemala• United Provinces of Central America

– 1823-1838

• Early 20th C– CA Court and other initiatives– Broken apart by US invasion of Nicaragua

• 1923: attempts to revive failed to revive spirit of 1907

• Central American Common Market: 1960

Recent regionalizing initiatives:

• European Union model– Obstacles to Integration

• variation in development • Hesitance of CR and Panama to join poorer neighbors• The other four are working alone on some things

– standardizing registration procedures for foods and medicines.

• Bilateral and other agreements • Proliferation of bodies• Absence of some necessary institituions• Ebbing and flowing enthusiasm

CAFTA

• Negotiations started Jan. 2003, expected to end before US elections

• CA countries have been gradually liberalizing although not without some struggle

• US interest is more geopolitical than economic

• Dovetails with Plan Puebla-Panama