Costa Rica, officially the Republic of Costa Rica, is a Central American nation recognized globally for its stable democracy, progressive social policies, and commitment to environmental sustainability[1][5]. With a population exceeding five million and a capital in San José, Costa Rica stands out as a regional leader in both political stability and economic innovation[1][2]. The country has no standing army and has maintained uninterrupted civilian democratic governance since 1949, making it the oldest continuous democracy in Latin America[5][9]. This stability has fostered a business-friendly environment, attracting significant foreign investment—especially in technology and services[10]. ## History and Governance Costa Rica’s modern history began with Spanish colonization in the 16th century, followed by independence in 1821 and a period of gradual modernization under authoritarian rule until the late 19th century[1]. The country’s commitment to democracy was solidified after a brief civil war in 1948, leading to the adoption of a new constitution and the abolition of the military[9]. Today, Costa Rica is divided into seven provinces, 82 cantons, and 488 districts, each with democratically elected local leadership[1]. ## Economic Profile and Achievements Costa Rica’s economy is diverse, with strong sectors in tourism, technology, medical devices, and agriculture[2][10]. The country joined the OECD in 2021 and was reclassified as a high-income economy by the World Bank in 2025, reflecting successful social programs and economic inclusivity[1][3]. It ranks 72nd globally in the 2025 Global Innovation Index, highlighting its growing tech sector[4]. Costa Rica is also a pioneer in green development, being the first tropical country to reverse deforestation and a global leader in renewable energy[3]. ## Current Challenges and Notable Aspects Despite its achievements, Costa Rica faces significant challenges, including high income inequality (GINI coefficient of 49.2 in 20