Costa Rica because of its political stability and neutrality is often called "Latin America Switzerland" as it didn't experience any considerable civil conflicts, which are typical nearly for all countries of Latin America since its foundation in 1821. Like most of Latin American countries Costa Rica is predominantly agricultural country and its economy is mainly based on agricultural exports. But in recent years country's government makes considerable steps in order to attract investments in the country mainly in industrial sector and high tech sector of industry. By the end of 2005 Costa Rica showed progress in tourist business growth (19%), export increase (12.8%) and stable economic growth of 5%, which is predicted for current year.
Till nowadays politics of Costa Rica was the most predictable and steady in the region, compared to political conflicts and crisis of other Latin American countries and Caribbean. Such phenomenon is mainly explained by absence of populist ideas, developed middle class and educated politicians. Costa Rica has a democratic tradition based on constitutional democracy. After the victory of Don Pepe Figueres coalition in short civil war of 1948 Costa Rica took a course on stable development with protection of national interests. Figueres nationalized banking system and abolished army and started permanent investments in social sector. Educative opportunities in the country promote growth of middle class and what is more important make people politically literate, which is not often common for other countries of the region. A characteristic feature of the country is that it had constitutionally abolished army substituting it by Police and National Guard. In many ways absence of state army explains that civil peace was long preserved, as there existed no possibility of military figures to influence on country's politics, which was common in the past for a number of charismatic generals in Latin America.
Costa Rica is a democratic republic, headed by President. Government is also headed by president. President and Legislative Assembly (parliament with 57 deputies) are elected once every 4 years. President unites executive power and he appoints cabinet of ministers. President is assisted by two vice presidents; one of them is also represented in cabinet. In 1969 Assembly ratified constitutional amendment, which imposed limitations on presidency and deputy only for one term. Nevertheless deputies can be reelected, while president got such right only in 2003 after amendment was recognized to be anti-constitutional. Such change allowed Oscar Arias to be reelected in president elections of 2006. Offices of Comptroller General of the Republic, the Procurator General of the Republic and Ombudsman are not controlled by government.
Executive central power in the provinces represented by governors appointed by president has limited power. In Costa Rica provincial legislatures are absent and provincial agencies experience wide autonomy in their activity: nationalized banks, monopoly on telecommunications and electrical power enterprises, social services.
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