Economic and Personal Freedom in Costa Rica

No matter how much you read before coming to live in Costa Rica, it’s very difficult to put a label on what type of system we have here.

Sure, the textbooks say it’s a democratic republic with an open economy. However, many Americans may view it as “socialistic” by pointing to state-owned monopolies for energy or communications, the public health care system, or the Napoleonic legal system.

Although these would certainly be evidence for the classical understanding of socialism, it has rather little to do with individual or economic freedom on the ground for average citizens.

Yes, residents are subject to state control of gas and energy prices which can lead to economic oppression. Electricity is billed on a progressive scale; so the more you use the more you pay per watt. This system tends to favor the poor who use very little electricity, while punishing someone with means — which can be viewed as unfair.

Yet, Costa Rica has managed to take the country’s electricity production from 50% by renewable means in the 90’s to nearly 100% self-sufficient renewable electricity today (hydro, wind, geothermal). And free-market purists need not worry, as Costa Rica is working toward deregulating electricity and communications to open up more competition.

There’s still that “guilty-before-proven-innocent” legal system that would appear to be tyrannical in nature. I mean, you would think the people in Costa Rica live in constant fear for their liberties in a system that is stacked against them. Based on my view, Ticos are far more carefree than the average American when approached by police.

Americans tend to be proud of our heritage of individual liberty. I remember being a wise-ass kid to my parents when they’d tell me to do something. I’d joke “No, this is America. I can do what I want.” Well, I’m not really sure that half-in-jest reply would even apply today, especially as it pertains to economic freedom.

The short video below outlines some of the challenges facing Americans who wish to find economic freedom and self-sufficiency:

I have found the opposite to be the case in Costa Rica, where a local guy with a machete or weed-wacker can offer landscaping services without permits, licenses, multiple insurances or heavy-handed tax collectors. Neither does the local vendor who sells fruit and vegetables out of the back of his truck need to comply with such formalities. The local video store openly rents bootlegged videos of in-theater movies much to the delight of customers and with little fear of Copyright police showing up.

The country seems to recognize and respect its citizens’ right to make an honest living without interfering in their business. Significantly, it is understood that these folks are not planning to get rich in their pursuits, nor do they have the desire to build business empires. No, for them, it is good enough to work just enough to live — not living just to work as most of us Americans have been conditioned to do.

Furthermore, it’s worth noting that one can survive on very little in Costa Rica if they’re okay with a simple life. A fisherman can fish a few days a week, sell some of the catch and eat what’s left. He’ll likely have enough money for rice and beans, some beer, his rent, and other bills.

Additionally, in my experience, the people of Costa Rica do not live in fear of government prosecution for minor violations. On the contrary, there is still a high level of solidarity and when the people protest for a cause the government is usually quick to respond to their needs.

Thomas Jefferson wrote “When the people fear their government, there is tyranny; when the government fears the people, there is liberty.” In Costa Rica’s case there’s still liberty. I’m not sure I can say the same for America these days.

Some will say that this is because Costa Rica doesn’t have the law enforcement resources to crack down on petty crimes – which is definitely true. However, again, the government seems to respect the individual’s ability to make a living more than petty regulations.

In a country where the climate is always comfortable and offers affordable health care to its citizens; the laid back fisherman, landscaper, or fruit vendor live lives of plenty despite what a foreigner may think of their humble existence. They will not freeze or starve to death. They are not imprisoned by debt. They do not fear bankruptcy when they fall ill. And they do not fear their government. They have genuine freedom.

[custom_script adID=97]

Considering The Atenas Area For Your New Home In Costa Rica?

The AARP (American Association of Retired Persons) ranks Atenas as one of “The Best Places to Retire Abroad.” For more information about homes and land for sale in the area please contact our Recommended Realtors in Atenas by using the simple form below:

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.