In many respects, Costa Rica has been able to boast about serious accomplishments: curbing deforestation, democratic balance, foreign investment and trade freedom. However, while there has been success, there has also been increasing economic inequality and steady poverty rates. SDG 10 in Costa Rica is experiencing some setbacks. The U.N. created the Sustainable Development Goals (SDGs) to bring attention and action to economic woes, along with environmental and social safeguards. Each SDG tackles a different issue; SDG 10 deals with inequality.

Inequality and Social Investment

Since the mid 20th century, Costa Rica has invested heavily in social programs. A 2016 World Bank report shows how Costa Rica’s abolition of the army freed up capital for “education, health and social security.” In the 2000s, investment in social and public services became more than 20% of the GDP.

Experts say these factors helped Costa Rica gradually improve the quality of life for many people. For example, according to a former Costa Rican president, Luis Guillermo Solís, “… the consolidation of social reforms allowed the construction of a society with a strong predominance of the middle class,” ReVista reports.

Despite these successes, poverty is not reducing at an ideal rate, and inequality is increasing. Although the poverty rate in Costa Rica is one of the lowest in Latin America, it has been steady “at around 20% for almost two decades.” Some attribute these problems to Costa Rica’s changing policies on social programs.  The former president of the Inter-American Court of Justice, Elizabeth Odio, says, “The country has had improvements in the fiscal balance, but this has been done at the expense of social issues. We are deteriorating two fundamental pillars: health and education,” ReVista reports.

Workers

There have been less opportunities for less-educated workers in recent years, and an aging population puts pressure on households. Also, groups such as migrants, indigenous people, and single mothers are continuing to struggle. Meanwhile, educated workers are in an improving situation, and prices continue to rise. It seems that this dynamic is widening the disparity and worsening SDG 10 in Costa Rica.

One group that is being negatively affected by inequality is Nicaraguan refugees and migrants. This group makes 7% of the Costa Rican population. Sadly, “Nicaraguans in Costa Rica are overall poorer, tend to be less educated and earn less,” according to UNHCR. Also, they tend to work “informally,” resulting in them getting fewer social transfers than locals.

According to UNHCR, studies suggest that “improving employment conditions, social inclusion, and access to services” would help Costa Rica and Nicaraguan migrants. Many migrants could contribute more to Costa Rica if they were more included in the social system.

Crime

Costa Rica has also experienced an uptick in crime. This can be attributed to drug trafficking becoming a worse problem in recent years. Because of Costa Rica’s coastlines, it is an advantageous port for drug traffickers, and it has become the largest shipment point for cocaine going to the U.S. and Europe.

Murders have risen while the price of cocaine has dropped, causing an increase in addiction. These factors compounded with high inflation have perpetuated poverty and inequality. To make matters worse, drug trafficking has created violent gangs that strain the system even further, GlobalPost reports.

As a result of the pandemic and a lack of opportunities, many young people have dropped out of school and are joining gangs.  Also, the rise in crime is deterring tourists from visiting, which is hurting the tourist industry; tourism is “7.1% of the country’s labor force.”  This strains poor communities even further, contributes to inequality and weakens SDG 10 in Costa Rica.

In response to crime, the Costa Rican government hired 1,500 more police officers, and they have installed cargo drug scanners on the coasts.  Also, “the Ministry of Public Security grew by $40 million,” according to The Costa Rican Times. The U.S. has contributed scanners and $40.5 million to fight crime and drug trafficking.

Solutions

Organizations like CEPIA are working to address issues like lack of education and lack of skills in the job market. CEPIA provides after-school programs, care for families living in vulnerable circumstances, professional training and employment, legal orientation and more.

CEPIA supports “over 1,000 children, teenagers and their families from poor backgrounds.” If a contributor to inequality is lack of education and opportunities for less skilled workers, CEPIA has many services to fill that gap. Hundreds of poor children receive school supplies. Those students can also participate in sports along with psychological counseling. In addition, 600 adults participate in the programs as well.

Along with CEPIA, SOS Children’s Villages is working to help children in need. They report that one in three children live in poverty in Costa Rica. As a result, this organization “has worked with other non-governmental organizations and companies to improve youth employability.” It also “created a digital platform called YouthLinks which connects young people with mentors in the country and region.”

SOS Children’s Village supports disadvantaged people around the world, and they have worked in Costa Rica Since 1972. It has schools, which strive to improve the lives of disadvantaged children. There are 190 children learning at their kindergartens, 300 children grow up in their care and 70 young people are given assistance as they work to become independent.

Although Costa Rica is a country moving on an upward trajectory, SDG 10 in Costa Rica has been struggling. Still, the country continues to fight for a better future.

– Michael Messina

Michael is based in Newburyport, MA, USA and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr