Costa Rica - A Developed Country?
Friday, February 26th, 2010
I read and interesting article in the Tico Times that posed this question. I have always wondered who it is exactly that determines whether a country deserves the coveted status of “developed.” The article answered that question for me…it is based on determinations by two organizations. First, there is the 30-member Organization for Economic Co-operation and Development (OECD). Then there is the United Nations “Human Development Index.” Each have their own criteria for determining if a country makes the cut. The OECD bases the issue in large part on gross national income and amount of foreign aid received. Basically, whether a country can stand on its own two feet without help from other nations. Based on this analysis a country is placed in one of five categories, the top being Developed and the bottom being Least Developed. Costa Rica at present is in the Upper Middle Income category. You cannot actually be a member of the OECD until you reach the top category and have the capacity to actually help other countries do the same. The HDI of the United Nations lists Costa Rica as the 54th most developed country in the world, with a index rating of 0.854. To be developed a country must reach a level above 0.90, with 1 being the highest possible score on the scale. Chile is the most developed in Latin America on the HDI scale and is considered the 44th most developed country. Norway is at the top of the world list with a rating of 0.971. The HDI scale is not as economically weighted and considers such things as life expectancy and education. The Tico Times article went on to note that despite Costa Rica’s rapidly rising development status, there are many contrasts that would counter the trend. Things like poor infrastructure, expending gap between rich and poor, and others. Roman Macaya, a businessman who unsuccessfully sought nomination of the Citizen Action Party (the part of Otton Solis) for Presidency, stated that there are two Costa Ricas, one for the rich and affluent and another for the poor. In my opinion that is a bit overstated. I have spend considerable time in Nicaragua, for instance, and I would say Mr. Macaya’s statements would be true if he were talking about that country. However, here it is the middle class that experts the most power, both politically and economically. So, while there are problems with crime and poverty, Costa Rica is definitely making steady progress. Laura Chinchilla made a campaign pledge that Costa Rica would become Latin America’s first true developed country (Chile might argue that point with her) and I believe if she can continue the good progress of her predecessor and mentor, Oscar Arias, perhaps the country has a shot.

Important governmental arms of Costa Rican promotion like the ICT (Ministry of Tourism) and the Ministerio de Comercio Exterior have joined to make attempts at attracting more retirees, or pensionados, to Costa Rica in the national interest. All that remains necessary is for President Arias to sign on to the idea and it becomes part of the governmental plan of promotion. In which case, important things could happen that could really have an impact, like giving tax breaks on the importation of autos and household furnishings and possible even income taxes. As to the specifics of the plan, that is still to be studied, but Costa Rica has recognized that “baby boomers” in places like, Texas, Florida and Arizona may take a more than serious look at Costa Rica as a potential permanent, or temporary, retirement home. Government prognosticators have estimated that in the next few years the number of retirees could grow to 10,000, generating some $340 million in income annually and creating the need for 40,000 new jobs. The idea is to have retiree-focused communities in places like San Pedro de Poas, where a new development dedicated to retirees is already in operation (see 
















