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Diabetes in Costa Rica’s Elderly Population

Diabetes in Costa Rica’s Elderly PopulationDespite efforts to combat diabetes in Costa Rica’s elderly population, the disease continues to be an ongoing health problem for the Latin American island nation. More than one-fifth of Costa Rica’s elderly population lives with diabetes, and the elderly population is particularly vulnerable to contracting chronic illness. This figure is higher than Costa Rica’s overall prevalence rate of diabetes, which is approximately 9%. And as the population continues to age rapidly, the prevalence of diabetes among the elderly in Costa Rica could also rise.

Prevalence of Diabetes in Costa Rica’s Elderly Population

Diabetes is a chronic illness affecting people of all ages but particularly afflicts those aged 65 and older. Aging, poor diet, physical inactivity and genetic predisposition are all factors that put the elderly at greater risk of contracting diabetes. One factor contributing to this is the impairment of pancreatic islets, responsible for and aiding in insulin production, which occurs with aging.

With elderly people at particularly high risk of contracting diabetes, another factor worrying health experts is Costa Rica’s rapidly aging population. The American Association for Retired Persons outlines United Nations statistics for Costa Rica’s elderly population, which currently represents 11.6% of the nation’s population. Costa Rica’s elderly population has increased by approximately 0.3% each year since 2001. Forecasts suggest the number of elderly Costa Rican could be 1.37 million people by 2050 — triple what it is in 2023.

Impact on Costa Rica’s Health Care Infrastructure

Unlike some of its neighboring nations, Costa Rica’s health care infrastructure is relatively stable. A 2000 survey by the World Health Organization (WHO) ranked Costa Rican health care infrastructure as No. 36 in the world, surpassing the United States (U.S.).

Hospitals and clinics that provide quality care and treatment options for patients, including elderly Costa Ricans living with diabetes, are readily available. However, a major obstacle facing some patients is cost. Research finds that health care costs for elderly people living with diabetes are anticipated to fuel rising overall costs. In some cases, patients live undiagnosed or refuse to adhere to their treatment plan, further exacerbating their condition.

Treatment and Assistance Available to Patients

Costa Rica’s national health care system, Caja Costarricense de Seguro Social (CCSS), commonly known as “CAJA,” provides health coverage to all Costa Ricans, including diabetic patients. Through the system, elderly citizens living with diabetes can receive medication and supplies to effectively manage their condition. The Costa Rican Ministry of Health also provides resources and supplies, as well as education, to patients.

The Costa Rican health care infrastructure provides quality, effective care to its patients, including elderly diabetics. Though diabetes among Costa Rica’s elderly continues to be a health concern for some of the nation’s most vulnerable citizens, the quality health care infrastructure puts the nation in a good position to care for patients.

– Nicholas DeLuca
Photo: Unsplash

The IMF’s Assistance in Costa Rica’s Economic Recovery

Costa Rica, Pura Vida, Central America, Jungle, Green

In 2021, the International Monetary Fund (IMF) agreed to provide Costa Rica with a $1.7 billion loan “to support Costa Rica’s recovery and stabilization from the economic damage caused by the COVID-19 pandemic.” Although the Costa Rican government’s response to the COVID-19 pandemic was effective, economic improvements are stagnant. Costa Rica’s economy relies heavily on tourism and the COVID-19 pandemic created a significant halt in this sector. The IMF’s assistance in Costa Rica would help create jobs in high-demand areas and improve the resiliency of businesses.

Economic Challenges During COVID-19

The World Bank indicates that Costa Rica’s economy expanded over the last quarter of a century, with poverty rates lower than other Latin American countries. However, the COVID-19 pandemic caused the economy to decline by 4.6% in 2020. As a result, “one out of five workers” experienced unemployment by the last quarter of 2020 and the poverty rate in Costa Rica increased to 13%. As the situation improves, the economy expects to grow by 2.6% in 2021 and 3.3% in 2022.

The Organization for Economic Cooperation and Development (OECD) reports that besides the pandemic, Costa Rica’s increased budget deficits and debt could have played a role in the recent economic destruction. Since the Costa Rican government had to provide additional funding for social and health programs, the budget deficits would grow further. Therefore, a strong recovery plan is necessary to lower deficits and improve Costa Rica’s economic situation.

Tourism: A Struggling Industry

According to Reuters, Costa Rica’s economy struggled since “hotel and trade shrank by 40% last year.” The pandemic and tourism produced 8.5% of its gross domestic product. At the beginning of 2021, fewer tourists visited than in previous years, indicating that economic recovery could take a while. However, officials in the tourism industry remain optimistic for more tourists in the future since many attractions are outdoors and there are fewer concerns about the virus spreading in open areas.

However, the amount of COVID-19 cases in Costa Rica was at its highest point from the end of April 2021 into early May 2021, leading to decreased levels of tourism. The U.S. even issued a travel advisory warning for citizens planning to visit Costa Rica. The Costa Rican government attempted to help the tourism sector by indicating that industries such as tourism did not need to impose new COVID-19 restrictions. Nevertheless, several groups of international tourists canceled their plans to visit.

Officials aim to improve economic conditions by expanding sustainable tourism. This would benefit the environment and help small businesses. The Minister of Tourism explained that expanding this industry would increase employees’ incomes and allow tourists to see different attractions. Officials introduced this plan to the national bank to see if it could consider using additional recovery strategies such as credits or implementing changes in rates.

Overcoming the Economic Challenges

So far, the Costa Rican government has made several efforts to assist those most impacted by the pandemic. It distributed grants to at least 700,000 citizens who suffered the most during the pandemic. It also had businesses impose strict health precautions, preventing a massive spread of the virus and further economic downturn.

Al Jazeera states that the Costa Rican government began working with the IMF to obtain a loan that would go toward tax reform and selling assets. The IMF’s assistance would also help Costa Rica pay off part of the significant debt accumulated within the past few decades.

The IMF’s assistance expects to cover a three-year time frame to improve economic conditions and reduce poverty rates. The Costa Rican government also plans to put the loan toward strategies that could boost employment. The IMF reports that the majority of those facing unemployment are women and youths. Various career fields in Costa Rica need employees and many companies are struggling to hire due to the pandemic.

The Costa Rican government thinks increased spending on social services would allow more women to enter the workforce since these programs will ease the burden of many familial caretaking responsibilities often resting on the shoulders of women. In addition, the government wants to pass legislation that aims to improve the education system to increase the possibility of employment opportunities in higher-paying jobs.

Moving Forward

The IMF’s assistance in Costa Rica would mitigate the current economic situation by addressing the root causes of high unemployment rates and income inequality. This effort would contribute to further development and potentially allow Costa Rica’s economy to reach pre-pandemic rates of growth.

– Cristina Velaz

Photo: Pixabay

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Organizations Help Nicaraguan Refugees

help Nicaraguan RefugeesThe massive protests in Nicaragua, which began in April of 2018, has led to a humanitarian crisis. Thousands of Nicaraguans have left the country, the majority fleeing to neighboring Costa Rica. Civil unrest, poverty and COVID-19 have contributed to several issues Nicaraguan refugees are facing. Organizations have dedicated efforts to assist with the humanitarian crisis in Central America and help Nicaraguan refugees.

The Ortega Regime

In April 2018, Nicaraguan president, Daniel Ortega, announced pension cuts for his citizens. Following the announcement, protesters filled the streets of multiple Nicaraguan cities. The protesters demanded that pension cuts be canceled and requested an end to the years of corruption committed by the Ortega regime. The protesters were met with violence, with more than 300 dead and thousands injured or missing. Journalists covering the anti-government protests were harassed and attacked by authorities, ultimately silencing the free press. The government has been accused of using ‘weapons of war’ on its citizens and committing human rights violations. Consequently, the political unrest has created a push factor for migration out of the country.

Two-thirds of Nicaraguan refugees have fled to neighboring Costa Rica. According to the United Nations Refugee Agency (UNCHR), 81,000 Nicaraguans have applied for asylum in Costa Rica. Furthermore, the COVID-19 pandemic has negatively impacted the well-being of Nicaraguan refugees. The UNCHR found that since the pandemic, 14% of refugees eat once a day or less and 63% of Nicaraguan refugees eat only two meals a day. Moreover, many Nicaraguans have lost steady income, increasing the chances of falling deeper into poverty.

Humanitarian Aid: UNCHR

To handle the influx of refugees into Costa Rica, the country needed assistance from NGOs. In February 2020, the UNCHR granted Costa Rica $4.1 million to reduce poverty for Nicaraguan refugees. Furthermore, the UNCHR grant pays for legal assistance and civil organizations that help migrants. As much as 53% of Nicaraguan refugees had no health insurance, but with the help of the UNCHR, around 6,000 now have medical insurance through the Costa Rican Social Security System.

The IFRC Helps Nicaraguan Refugees

The International Federation of Red Cross and Red Crescent Societies (IFRC) is also actively partaking in addressing the humanitarian crisis for Nicaraguan refugees. The IFRC’s mission is to “meet the needs and improve the lives of vulnerable people.” Moreover, the IFRC is the largest humanitarian organization in the world,  assisting displaced people around the world with resources and relief. Francesco Rocca, president of the IFRC, called the migration crisis during a pandemic a “catastrophe.” Furthermore, Rocca has called the attention of government officials to take care of the most vulnerable, asylum seekers because they are most severely impacted by COVID-19.

Corner of Love Helps Migrants

The COVID-19 pandemic has made the Nicaraguan-Costa Rican border restrictive, making it harder for migrants to cross. Additionally, the pandemic has created more uncertainty for the futures of Nicaraguan refugees. Despite these struggles, NGOs are not giving up on this vulnerable population. The NGO, Corner of Love, is assisting migrants at the Nicaragua-Costa Rica border. Corner of Love ensures migrants have access to food and hygiene products, thus contributing to the well-being of Nicaraguan refugees.

The efforts of organizations stepping in to help Nicaraguan refugees with the humanitarian crisis give struggling people hope for a brighter tomorrow.

– Andy Calderon
Photo: Flickr

Pharmaceutical Companies Invest in Indigenous Communities

Pharmaceutical CompaniesBiopiracy, the act of expropriating a resource from a foreign land and profiting from it, has been a normal practice for pharmaceutical companies and governments for many years. Medicinal compounds with vital medicinal benefits stole from indigenous and impoverished areas without reparations/royalties in exchange. Invasive countries reap millions of dollars from biopiracy. In the process, they strip irreplaceable compounds from populations that fiercely depend on them. Many of these poorer countries lack the financial strength to fund analysis of plants for medicinal value. This analysis can widen the research gap between developing countries and the industrialized world even further. In an effort to reconcile these past injustices and inequalities, some pharmaceutical companies and research institutes have pledged funding to facilitate the growth of the medicinal drug industry in indigenous areas.

Berkeley and Samoa

In 2004, the University of California at Berkeley struck a deal with the government of Samoa, a small Pacific Ocean island nation. The university will share royalties from the highly revolutionary and precious compound prostratin, native to the Samoan mamala trees. It was discovered the drug was effective in treating HIV/AIDS by flushing the virus out of reservoirs in the body. The university pledged to equally split all revenues generated from the drug. It was used commonly on the island to treat hepatitis. After isolating the genes responsible for producing the drug in the tree, the researchers were able to carry out microbial production.

National Cancer Institute and Samoa

Three years prior, the National Cancer Institute (NCI) issued a license to the AIDS Research Alliance (ARA) to conduct research on the drug prostratin. The NCI exclusively patented this. The methodology behind the research is significantly different from Berkeley’s, as it does not rely on gene sequencing. The percentage of total royalties returned to the island is 20%. This is much lower than the charitable cut Berkeley would offer in the future.

However, this partnership was highly influential in staging the blueprint for American companies to share their copious wealth with the lands they took from. Much of the revenue returning to Samoa continues to be funneled into villages. In addition, it provides healers on the island with more sophisticated equipment and labs. In congruence with the deal, there will be over $500,000 of combined value to the construct water tanks, a medical clinic, three schools, a trail system and a tourist walkway from which the village would keep all revenue.

Merck & Co. and Costa Rica

In 1991, Merck & Co. is one of the pharmaceutical companies that sought to turn obscure compounds into gainful products in the agriculture and pharmaceutical markets. It extended a two-year deal to the nonprofit biodiversity institute in Costa Rica INBio. This entailed the exchange of plant and insect samples for $1 million. This was a mutually beneficial investment. Costa Rica was looking for donors in the private sector to help preserve its tropical and sub-tropical forests. There are ethical concerns surrounding the usage of said investment in building more commercially viable tourist attractions instead of natural preserves. However, regardless of Costa Rica’s money management, the company’s investment was nothing short of magnanimous.

ICBG and Coiba

The island of Coiba, 12 miles off the coast of Panama, was designated as a national park in 1991. It drew much interest in its coral reefs in 2005 when scientific research suggested that they contained an abundance of new species with medicinal and commercial potential. By far, the most promising discovery was octocoral, from which anti-malarial properties can be extracted. Following these exciting developments, the International Co-Operative Biodiversity Groups (ICBG) invested millions in building scientific infrastructure on the mainland of Panama. For instance, testing and processing sites for potential medicinal compounds.

The collaboration pledged to distill at least half of all profits into trust funds. The trust funds design to protect Coiba from internal and external environmental hazards. The profit will also go to the institutions that aided the project. A biological research station was built on the island. The security systems programmed will eradicate colonists and fisherman that could disrupt the ecosystem. ICBG has been successful in identifying and analyzing medicinal compounds in many other countries including Suriname, Vietnam and Madagascar.

These examples of corporations reconciling past exploitation of resources are certainly worth celebrating. However, there is work left to do. Pharmaceutical companies fund indigenous communities and spurring growth of their medicinal industries is still the minority. There is damage that has been left unrectified. These communities rely heavily on the resources insular to their area and supported by a well-funded and functioning infrastructure. In the fight to end global poverty, one of the first places to start is in the coniferous islands and peninsulas. It was once abundant in medicinal compounds but has since been plundered. It is important that the people in these areas can live healthy lives and benefit from the rich resources native to their land.

– Camden Gilreath
Photo: Flickr

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5 Crops That Are Fighting Poverty

Crops That Are Fighting PovertyAcross the world, agriculture remains one of the primary sources of income for those living in poverty. A 2019 report by The World Bank reported that 80% of those living in extreme poverty reside in rural regions, and a large majority of these individuals rely upon agriculture for their livelihood. The World Bank also notes that developing agriculture is one of the most effective ways to alleviate poverty, reduce food insecurity and enhance the general well-being of those living in a community. Potatoes in China, cassava in sub-Saharan Africa, rice in Sierra Leone, pearl millet in India and bananas in Costa Rica are five examples of crops that are fighting poverty.

5 Crops That Are Fighting Poverty

  1. Potatoes in China: In 2019, China was the world’s number one potato-producing country. With a rural population of 45.23%, the nation greatly relies upon agriculture to provide food as well as income to its citizens. In Ulanqub, otherwise known as the “potato city” of China, potato farming is one of the primary means for farmers to rise out of poverty. Due to the fact that viruses have the potential to destroy up to 80% of potato crops, potato engineers in Ulanqub have developed seeds that are more impervious to viruses. These engineers place a sterile potato stem into a solution filled with nutrients to create “virus-free breeder seeds.” The seeds are then planted and produce potatoes of higher quality, ensuring that farmers are able to generate sufficient income and climb out of poverty.
  2. Cassava in sub-Saharan Africa: Cassava is a principal source of calories for 40% of Africans. This crop has traditionally been important during times of famine and low rainfall because it is drought-resistant, requires easily-accessible tools and is easily harvestable by one family. The organization NextGen utilizes genomic technology to isolate beneficial cassava traits that increase plant viability, root quality and yield quantity. By analyzing crop DNA and statistically predicting performance, NextGen is creating cassava crops that are fighting poverty.
  3. Rice in Sierra Leone: Agriculture accounts for 57% of Sierra Leone’s GDP, with rice reigning as the primary staple crop. However, in 2011, the nation was a net rice importer due to struggles with planting efficiency. The System of Rice Intensification (SRI) was developed to increase rice crop yield and decrease the labor necessary for upkeep. This method requires the use of organic fertilizers, tighter regulations for watering quantities, greater spacing between seeds to decrease plant competition and rotary hoes for weeding. As of 2014, 10,865 individuals had implemented this strategy in Sierra Leone. SRI has enabled rice to become one of the crops that is fighting poverty by increasing crop production from two to six tons per hectare.
  4. Pearl Millet in India: In India, agriculture employs 59% of the nation’s workforce, with 82% of farmers operating small farms that are highly susceptible to the negative impacts of climate change. As temperatures rise to a scorching 114℉, crops that are able to survive extreme heat are becoming necessary. Wild pearl millet, a relative of domestic pearl millet, is one crop that can withstand such temperatures. Researchers in India are breeding wild pearl millet seeds with domestic pearl millet in order to enhance resistance to heat and the common “blast” disease. With breeding innovations, pearl millet is one of the crops that are fighting poverty.
  5. Bananas in Costa Rica: One out of every 10 bananas produced in 2015 hailed from Costa Rica, the globe’s third-largest banana producer. This industry generated $ 1.1 billion in 2017 and provides jobs for 100,000 Costa Ricans. However, approximately 90% of banana crops across the nation are at risk of nutrient deprivation from a pest known as nematode, which has the potential to obliterate entire plantations. An article by CropLife International reported that a sustainable pesticide has been created by plant scientists in order to mitigate poverty-inducing crop loss and provide environmentally-conscious methods for banana farmers to ward off pests.

Developing crop viability and agricultural technology is important for poverty alleviation as agriculture possesses twice the likelihood of creating financial growth than other economic sectors. Innovations in crop production that decrease the likelihood of failure from drought, disease and changing weather patterns are important for the well-being of rural communities across the globe. Potatoes, cassava, rice, pearl millet and bananas are just five examples of crops that are fighting poverty, but improvements in different facets of agriculture have the potential to enhance the livelihoods of those who provide the world’s food.

– Suzi Quigg
Photo: Flickr

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The Benefits of Microfinance in Costa Rica

Known for its tropical vistas and banana plantations, Costa Rica has also developed a well-deserved reputation for stability. Indeed, since abolishing its military in 1949, the small Central American nation has celebrated seven decades of uninterrupted democracy. While this stability has allowed Costa Rica to make great strides in alleviating poverty, however, nearly 21 percent of the country still remains impoverished. To this end, many in Costa Rica are increasingly turning to microfinance as a potential remedy.

Why Microfinance?

Microfinance is a banking service that focuses on delivering small loans to communities underserved by traditional banks. These ‘microloans’ can be as low as $100 and are specifically designed to help meet the needs of low-income families.

Because the principal of a microloan is much smaller than that of a traditional loan, lenders can afford to take on risks they otherwise could not. This means less stringent requirements on things like documentation and property, which are traditionally the largest obstacles to acquiring credit for those living in poverty. As a result, microfinance has become a favorite tool of activists in the developing world.

Costa Rica is no exception in that regard. With more than half of Costa Ricans unable to raise needed funds in an emergency, microfinanciers provide the country a crucial service.

Keeping Small Farmers and Rural Communities Afloat

One reason microfinance has been able to take off so quickly in Costa Rica lies in the country’s history. In the 1980s, a prolonged economic crisis prompted traditional banks to retreat en masse from Costa Rica’s rural areas. This left many small farmers suddenly lacking access to badly needed credit.

To help combat this issue, organizations like FINCA began seeking ways to encourage sustainability in rural financial markets. One such solution was microfinance.

Beginning in 1984, FINCA Costa Rica set about building a series of ‘village banks’ in the areas hit hardest by the loss of financial services. These were largely community-run, shared-liability ventures whose purpose would be to offer microloans to farmers. It did not take long for the model to become a success. Village banks quickly began to attract Costa Rican farmers, many of whom would have had difficulty acquiring a standard loan. In fact, the village banks would prove so popular that within a decade they had already become self-sustaining.

Others in Costa Rica soon took note of FINCA’s success. Though not all would copy the village bank model, many other microfinancing operations began to sprout up around the country.

Empowering Costa Rican Women

While FINCA’s village banks primarily served a demographic consisting of rural, male farmers, modern microfinanciers pursue a more diverse client base. Women in particular are a focus for many.

Research demonstrates a sharp gap in financial access along gender lines in Costa Rica. Thirty-nine percent of Costa Rican women lack a bank account, for instance, compared to 25 percent of men. This is a pattern that largely holds consistent across the developing world. Although in many cases women provide necessary income for their families, they often lack the means to build upon those earnings. This leaves them more vulnerable to the sudden economic shocks that can devastate a household, like personal medical emergencies and unexpected changes in consumer trends.

Microfinance institutions empower these women, however, by offering them the credit needed to start a business of their own, and by providing them with a newfound resiliency.

Thanks to the efforts of organizations like Fundación Mujer, women now own more than 22 percent of Costa Rican businesses. And, as the number of women gaining access to loans and other financial services increases, that percentage is only expected to grow. This means greater social mobility for Costa Rican women and a stronger ability to weather the storm in times of crisis.

The Future of Microfinance in Costa Rica

Microfinance in Costa Rica has come a long way from its first experiments with village banks in the 1980s. As it stands, Costa Rica is now one of the world’s largest microfinance markets. And, with the industry expected to grow by a further 5-10 percent in Latin America over the next decade, it is unlikely that will change any time soon.

While experts caution that microfinance cannot be seen as a ‘miracle cure’ for poverty, it is undeniable that it can provide real benefits to those in need. To see that, one only has to consider the success of microfinance in Costa Rica.

– James Roark

Photo: Pixabay.com

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Humanitarian Aid to Costa Rica Vital to Rural Areas

Humanitarian Aid to Costa RicaCosta Rica, a country located in Central America, has received aid from the United States due to recent natural disasters. This aid has been quite positive and has helped Costa Rica recover from hard times.

The most recent humanitarian aid to Costa Rica from the United States was a donation of $150,000 from the Office of Foreign Disaster Assistance to help with storm relief on October 12, 2017. Tropical Storm Nate caused destruction in its path through Costa Rica; 11 people were killed, thousands more were injured and 11,500 people had to use shelters. Costa Rica said that this money will be used to pay for helicopter flights to distribute food, transport and medical care to those in need. This is important since Costa Rica has many remote communities, which means air travel is required to provide the necessary personnel and materials.

This is the largest donation of humanitarian aid to Costa Rica since November 2016, when the United States Southern Command provided relief. The U.S. Southern Command is “responsible for providing contingency planning, operations and security cooperation in its assigned Area of Responsibility,” and one of these Areas of Responsibility is Costa Rica. This is the fifth time that the Southern Command has provided humanitarian aid to Costa Rica.

This project was named Operation Pura Vida, which translates to “simple life” and means a lot to the people of Costa Rica, since “pura vida” is a way of life for them. The Southern Command provided 16 doctors, nurses and dentists who work with 30 Costa Rican physicians to provide free medical care to the people of Telire. Telire is a remote community in the Talamanca mountain range, so helicopters are necessary to reach this area.

Costa Rica has faced some troubling times recently, but the United States has helped use its abundant resources to help those that need it most.

– Scott Kesselring

Photo: Flickr

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Five Development Projects in Costa Rica

Development Projects in Costa RicaCosta Rica has long been a global leader due to its environmental accomplishments and is the only country in the world that has reversed deforestation. This upper-middle-income country is a developmental success in many ways and still has work to be done. Here is a look at five development projects in Costa Rica.

  1. The city of Limon is undergoing a large project which aims to modernize the port city. The Integrated Infrastructure Project aims to improve the protection and management of the cultural and natural heritage of the city. It is also working to increase access to the sewage system in order to reduce urban flooding as well as foster a more credible local government. From a business perspective, this plan hopes to create new employment opportunities and to support port modernization in order to improve access to the Limon and Moin port terminals.
  2. As mentioned earlier, Costa Rica is a global leader in environmental programs. One program with environmental impacts is the Carbon Sequestration in Small Farms which aims to reduce over 500,000 tons of CO2 emissions by the end of 2017. This would be done by reforesting 4,140 hectares of land in Costa Rica over a period of three years. This project will also create additional ecological, wildlife and landscape diversity in the project area.
  3. The Umbrella Project is another project to help reduce carbon emissions. This would be done by substituting electricity produced by thermal plants with electricity from renewable sources. This is called the Umbrella Project because it is essentially serving as an umbrella to facilitate the implementation of other smaller projects in the country.
  4. Beginning in January 2018, Costa Rica is set to begin construction and expansion of a key highway. This highway, Ruta 32, connects the provinces of Limon and San Jose. This project will also add 16 miles of bike lanes, 23 pedestrian bridges, 176 bus stops and an access road to the port city of Moin.
  5. The last of the five development projects in Costa Rica deals with the environment. The Tourism Institute of Costa Rica will be designating $3 million over the course of three years in order to enhance services in Protected Wild Areas in order to provide an unforgettable experience to visitors.

– Lorial Roballo

Photo: Pixabay

Income Inequality: One of the Causes of Poverty in Costa Rica

Causes of Poverty in Costa Rica
Costa Rica is known for its sunny seaside beaches and tourist attractions. It is arguably the most stable and most prosperous country out of all its Latin American neighbors. A large part of this is due to government spending. Nearly 20 percent of Costa Rica’s GDP goes toward social spending. Because of this, the Costa Rican economy has boomed. The infant mortality rate has decreased, while healthcare and sanitation have improved. But in recent years, Costa Rica’s poverty rate has stagnated at roughly 20 percent. This begs the question: what are the causes of poverty in Costa Rica? Why, despite all the government’s spending, does it still persist?

A large part of the answer is income inequality. There is extensive research showing that income inequality is correlated with higher levels of poverty. And without a doubt, income inequality is one of the main causes of poverty in Costa Rica.

Urban Costa Ricans are largely outpacing rural Costa Ricans when it comes to income. The top 20 percent of earners make an average of $4,650 per month, while the bottom twenty percent make only $360. In other words, wealthy Costa Ricans are making nearly 13 times as much money as poor Costa Ricans.

This can have dire consequences. The Organization for Economic Cooperation and Development (OECD) has found that income inequality can cause the economy to slow down. In addition, it prevents poorer people from finding high-paying jobs.

However, Costa Rica is not doomed to an eternity of inequality. The OECD shows that inequality can be reduced simply by encouraging women to join the workforce and providing better access to higher-quality jobs. Costa Rica’s government is already working hard to eradicate poverty, and the future looks bright. Income inequality may be one of the main causes of poverty in Costa Rica, but it does not have to stay that way.

– Adesuwa Agbonile

Photo: Flickr

7 Things to Know About Costa Rica’s Poverty Rate

Costa Rica’s Poverty Rate
In 2016, Costa Rica was named the happiest country in the world. But, while the country as a whole has enjoyed stability and a steadily growing economy in recent years, marginalized groups have been left behind. Discussed below are key facts about Costa Rica’s poverty rate that should not be overlooked.

 

7 Leading Facts About Costa Rica’s Poverty Rate

 

  1. Costa Rica’s inequality rate has increased since 2000, a division that disproportionately affects indigenous and minority groups. Today, the country’s richest 20 percent receive an income 19 times higher than that of the poorest 20 percent.
  2. While, overall, Costa Rica’s poverty rate has dropped from 22.4 percent to 21.7 percent from 2014 to 2015, the country’s extreme poverty rate rose from 5.8 percent to 7.2 percent, the highest recorded rate in the last 60 years.
  3. While 19 percent of urban households live in poverty and 5.2 percent live in extreme poverty, 30.3 percent of rural households live in poverty and 10.6 percent in extreme poverty.
  4. Poor Costa Ricans have, on average, three years less schooling than their economically stable peers.
  5. In Costa Rica, 43.5 percent of poor households are headed by women.
  6. Since an inflation crisis in the ’80s and ’90s, the Costa Rican government has managed to boost the economy through international tourism and exports. These sectors benefit qualified workers, while unskilled workers, over-represented by indigenous and minority groups, see no change or a decrease in their salaries.
  7. Public assistance to poor families increased by 9.3 percent per household and 6.9 percent per person from 2014 to 2015.

Costa Rica’s poverty rate seems to be sewed up neatly on the surface, but the growth of a country doesn’t always reflect the growth of its people. The disparity of incomes and opportunities between uneducated people in rural areas versus educated people in urban areas threatens to rob Costa Rica of its good economic reputation.

– Sophie Nunnally

Photo: Flickr