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The economic, political and social stability of Costa Rica are the main characteristics that distinguish it throughout its entire contemporary history and one of the most important strengths that have enabled it to reach great success in alluring foreign investors.
The Costa Rican government is ruled by a series of constitutional controls and balances. The executive responsibilities rest on the President, who is at the center of power, and is supported by two Vice-presidents and his cabinet. The President and Vice-presidents, plus 57 Congressmen, which comprises the Legislative Assembly, are directly elected every 4 years. In addition, the country has a strong legal system that manages the 'judicial power', which ensures law conformity and covers nationals, as well as foreigners, within the country's territory.
Costa Rica has a long tradition of stable democracy, which is recognized worldwide and has over 115 years of history. Such dedication to democracy and the peace process have been enhanced by the elimination of the military in 1949, and acknowledged internationally in 1987 when the then President of the Republic, Oscar Arias Sanchez, was awarded the Nobel Peace Prize.
There is no doubt that one of the pillars of the Costa Rican economic development has been trade liberalization, which has allowed exports to surpass its 30% ratio of GDP in 1980 to a current 50% rate. Furthermore, this trade liberalization has been coupled with a series of structural changes, and has pushed towards a productive transformation that has lead to factor productivity growth, diversification of the economy, and a higher level of investment. |
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