Limits to Costa Rican Heterodoxy: What Has Changed in “Paradise”?

Abstract

Throughout the second half of the 1980s and the 1990s, the so-called "Central American Switzerland," maintained an admirable record of democratic elections, an unblemished record of human and civil rights, a reasonable level of economic growth and above average social performance both in terms of the production of human capital and its social protection. At the same time, however, Gini coefficients of income inequality – the second most equal in the region after Uruguay --have worsened systematically, voting turnout has declined precipitously, major corruption scandals have tainted the highest levels of public office, and economic growth has been highly volatile. This paper shows that the "Tico"-style approach to structural reforms that made the country successful over the pasts twenty years may be coming to an end. The never fully compatible coexistence of social-democratic and neoliberal projects along with expanded civil, political and social rights, may have, by the end of the 20 th century, reached their limits and it is no longer clear if the formerly highly successful Costa Rican model will survive in its present form.