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1 1 (June 5, 2006)

handle is hein.crs/crsaiqv0001 and id is 1 raw text is: Order Code RS21943
Updated June 5, 2006
CRS Report for Congress
Received through the CRS Web
Costa Rica: Background and U.S. Relations
Colleen W. Cook and Connie Veillette
Foreign Affairs, Defense, and Trade Division
Summary
Costa Rica is considered the most politically stable and economically developed
nation in Central America with a tradition of political moderation and civilian
government. Former President Oscar Arias (1986-1990) of the National Liberation
Party (PLN) was once more inaugurated as President on May 8, 2006. Fiscal reform
legislation and ratification of the Dominican Republic-Central America-United States
Free Trade Agreement (CAFTA-DR) will likely be the major focus of the first six
months of President Arias's administration. Every country but Costa Rica has now
approved the agreement. Relations with the United States have traditionally been good,
although some friction arose during CAFTA negotiations. For additional information,
see CRS Report RL32322, CentralAmerica and the Dominican Republic in the Context
of the Free Trade Agreement (DR-CAFTA) with the United States, by K. Larry Storrs,
CRS Report RL31870, The Dominican Republic-Central America-United States Free
Trade Agreement, by J.F. Hornbeck and CRS Report RS22164, DR-CAFTA: Regional
Issues, by Clare Ribando. This report will be updated as events warrant.
Political Situation
Costa Rica is a politically stable and economically developed country, relative to its
neighbors in Central America. Since its independence from Spain in 1821, Costa Rica
has developed a tradition of political moderation and civilian government despite having
had some interludes of military rule. A brief civil war that ended in 1948 led to the
abolition of the Costa Rican military by President Jose Figueres, a new constitution, and
continuous civilian governments since then. The 1949 Constitution prohibits the creation
of a standing army, although there exists a police force, Border Guard, Rural Guard, and
Civil Guard. Costa Rica is a presidential democracy with a unicameral legislature.
Constitutional reform approved by the legislature in 1969 barred presidential re-election.
In April 2003, the Costa Rican Constitutional Court annulled the prohibition on
consecutive re-election.
Costa Rica scores well according to commonly used indicators of socio-economic
development. Costa Rica has the highest level of human development in Central America
according to the United Nations' 2005 Human Development Index, which ranked Costa
Rica 47'h out of 177 nations based on life expectancy, education, and income levels. From
Congressional Research Service . The Library of Congress

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