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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 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