Costa Rica stands as one of the most politically stable countries in Latin America. It has a development model matching strong equity policies in public services (e.g. free and compulsory basic education and a good public healthcare system) with an open economy that has made FDI the principal engine of the country’s dynamism. Since the late 1980s, the country has managed to progressively shift its export composition from primary products to high-tech manufacturing and services, thanks to targeted actions to attract FDI. It has also enjoyed relatively stable and high economic growth, rising GDP per capita, and falling poverty rates.
Attracting Knowledge-Intensive FDI to Costa Rica
Challenges and Policy Options