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Costa Rica’s independent democracy attracts capitalism and that continues to create new opportunities for Tico’s
During the past two decades a series of political and economic windfalls have blessed Costa Rica. Economic stability has grown and large multi-national companies have moved in and are now conducting business in new facilities that have created many new jobs for Costa Ricans. These new employment opportunities have created a new “Middle Class Tico”
This new middle class, thanks to international financial giants like HSBC and ScotiaBank are now able to buy high-ticket consumer goods such as televisions, DVD players, motor vehicles, computers and real estate with the availability of financing.
Never in their wildest dreams did the parents of this new middle class of Tico’s imagine themselves as part of the middle class. Typically in Costa Rica, people who were born poor died poor. People who were born middle-class died middle-class. That’s now changed and is one of the biggest social transformations that we’ve had in Costa Rica.
Costa Rica is well on its way to capturing a large share of this growth, as its technological infrastructure improves, more multi-national companies relocate here and provide more jobs. This economic boom that has led to the expansion of the “Middle Class Tico” is energizing the poorer class of Costa Ricans as well with more socially minded programs that benefit all levels of society.
Whether we like it or not, the fact that the Costa Rican’s passed the new CAFTA Trade Treaty by democratic process, demonstrates the extent to which capitalism has grown here.
Costa Rica’s successful democracy and economic prosperity have given the country a sense of legitimacy within the global business community and the contributions of these multi-national companies to the local economy have created the new “Middle Class Tico.”
Edited on Dec 07, 2008 09:23
Edited on Dec 07, 2008 09:24
I have read that democracy cannot last long without a strong middle class. If that is true then Costa Rica must have had a strong middle class since it initiated democracy 60 years ago. Of course, middle class is a relative term.
Wow, I really applaud Costa Rica’s move toward a consumer society. That’s another big progressive bunch of crap shoved down the throats of Ticos by the western marketing machines. More “go Arias” foolery so Ticos will now base their identity on “things” rather than community standing, humility, respectful attitude and the mundane yet important parts of daily life.
Let’s see how fast we can fill the dumps with cell phones and other toxic tech waste that will further pollute and harm the traditional Tico family that was once considered middle class, and not because they had purchase power (a definition of middleclass as defined by mostly North Americans).
“Oh face it 2BNCR, that just the way it is!” It ain’t that way for me. I think it’s a shame that north Americans define middle class strictly by DVD players and cars ($$$$). The reason people used to come here was to get away from that thinking. The brainwashed North Americans come here and perpetuate it, and then they cry foul when CR has been prostituted for money, when they are the pimps selling her out to rampant development that harms the overall environment at the expense of the less than “middle class” Ticos – who by the way I find to be the most genuine and honest. The New Middle Class Ticos – what a shame. That is really good news ain’t it. Maybe in the future they can be like the Chinese or the North Americans – the biggest polluters on earth!
How long before the average Tico is in debt to their eyeballs gobbling up all the consumer goodies they are brainwashed into thinking will enhance their lifestyle? Consumerism has been shoved down their throats; they all want to be like their Norteamericano neighbors, or like the expats who have changed the terrain of Costa Rica so there are more american amenities. Did the Ticos want KFC, Burger King, McDonalds, Tony Romas, or any of the other ghastly fast food chains that are now permanent fixtures of Costa Rica? Massive credit card debt can’t be far behind and that will be the undoing of the burgeoning middle class. Just look what happened to the US?
Of course no society can last long without a middle class… they’re the ones working for a living, getting taxed to death, paying the frieght for all those that can’t or won’t contribute, and the folks too busy and confused to see that the “life” they have is nothing more than an illusion! LOL
Government LOVES the middle class… without them the whole scheme falls apart! They’re the fat part of the bell curve, the bread and butter for the greedy politician looking to get rich or “engineer” society. Perhaps the middle class “dream” we see in the US is a good indicator of things to come here. I for one hope not!
NO society can continue when it’s whole economic engine is based on ever increasing consumption… we’re seeing that in the US right now. One “new” economy after another pumped dry (ie The Dot-Com and now the Housing market) and we’re running out of bubbles to create and tap to continue this whole greed and “things” based lifestyle.
There’s lot’s of folks in the US right now with 54″ plasma TV’s hanging on the wall that can’t make the mortgage payment or pay the electric bill that can confirm that very fact!
Edited on Dec 08, 2008 11:12
Middle class is defined by relative income within an economy. The world is moving towards a single economy so one day, IF a middle class is to exist, it will have to be worldwide. The problem is that the middle class is an aberation. It is not the norm. Over the last 7000 years, the normal state of affairs has been to have only two classes; the elite rich and the working poor. It doesn’t look too promising for democracy, does it?
Costa Rica has always had a well-established middle class. The middle class has been and will continue to be the engine of Costa Rica’s economy and democracy.
Continued social growth is dependent on more of Costa Rica’s lower class becoming middle class and in order for the middle class to continue to grow, the country will need to improve public education. A better educated middle class will provide new economic and social opportunities for another generation of Tico’s.Change is inevitable as good and bad come with globalization and there’s no turning back since Costa Rica has entered the CAFTA-CHINA era. Whether we like it or not, the fact that a majority of Tico’s voted for CAFTA by democratic process is evidence of the growth of capitalism here. So get used to local yuppie’s blowing your doors off in their new luxury vehicles and long lines of Latinos with full grocery carts at the high-end retailers. Capitalism is addictive and it’s here to stay.
Capitalism is addictive. Whether or not it stays depends on how much it can be mofified to mitigate its many destructive aspects.
So far as I can see, Costa Rica uses socialism to good effect over all and perhaps its new found capitalistic tendencies can be tethered more to the needs of the people rather than the needs of corporations, as is the case in the U.S. It may depend upon who gets control of the peoples’ opinion. Strong Chinese and Nafta political and economic forces will be at work to influence which direction and how far Costa Rica’s capitalism goes.
It should be interesting to see how public opinion deals with this dangerous new ingredient after some time has passed. Who gets left behind and how many?
“Costa Rica has always had a well-established middle class.” That’s just wrong. Costa Rica has never had a well-established middle class and arguably, does not have one today. Sure Ticos may be climbing in purchase power, but I bet you the percentage of Ticos that earn a living somewhere between what Costa Rica considers rich and poor is slim. Also the grocery baskets and cars will be financed with low down payments and high interest rates. Unfortunately the real owners will be the banks. No real wealth there. Most of those cars will be reposed and when the bank can’t make money on them, there will be no financing and say good bye (thank God) to the phony middle class based on a bogus value system. Maybe then they will revert back to what they already had. Real values supported by well-established families and agricultural work.
I say get used to those challenging the status quo and rethinking the world paradigm because those that continue to have the “that’s just the way it is” attitude are archaic dinosaurs tromping in a 0 to 60 in two minutes flat world of change. Accepting what you perceive as “social normality” is dooming the planet.
Hey, but do you care, you’re not going to live forever, right? And your kids, what about them? So what happens when India and China’s population all want cars and DVD’s. Well CRHB, our children (if you got them) are going to inherit a dirty planet, because of attitudes similar to yours. Change happens one mind at a time. Mine is open to a new world paradigm, yours obviously is not. Be sure to leave your kids a gas mask, as all our children will need them. Isn’t consumption glorious?
Costa Rica’s large middle class is defined purely by being the largest in Latin America. When compared to the majority of Latin America, this seems plausible. Democracy has established some of that, along with coffee, banana and other exports from CR. Attracting foreign companies may or may not be the panacea for enlarging the middle class. Let’s face it, they’re only there for the cheap labor. Ticos should be owning more businesses. Ticos should be creating jobs for themselves. A thriving middle class, as others have pointed out, allows gov’t to extract more for ever expanding gov’t programs. Exactly what we in the US have, and are going to get more of shortly.
Rampant consumerism fueled this last boom in the US economy. Once that went flat, the economy freefalled. Running a society on unbridled consumer spending is a recipe that works about as well as marxism. They both work for a while, then they collapse under their own weight.
If CR is to follow the example we in the US have provided, then they are going to have a period of growth, then the fall. When you replace values with things, you realize how shallow living becomes, and how worthless lives become in the process.
Most of us here see the value in the Tico way of life, and appreciate it for what it is. However, if consumerism is the route they wish to travel, there isn’t a whole lot we can do to change it. If we’re the model for their economic dreams, then I wish them luck.
Although we very much appreciate your feedback 2BNCR, I would like to suggest that you please phrase your arguments in a more polite manner
Costa Rica does indeed have a substantial and growing middle class and yes it is becoming more of a consumer society but, unless you only walk and don’t drive a car, and don’t have hot running water in your home or a washing machine, and you also cook with a wood burning stove rather than a gas or electric oven – are we really in a position to tell them that they can’t have what we want or already have?
I totally agree that a US/UK styled ultra excessive consumer driven society will eventually destroy this planet but I believe that we can have responsible consumerism and that peoples can improve their lot in life without going nuts and leaving behind a toxic planet for our children.
Scott Oliver – Founder
WeLoveCostaRica.comThere were some figures posted here some time ago which showed income brackets in CR. I don’t remember the breakdown and it has to have changed by now but I think it was addressing the huge gap between Ticos with $1100 to $1800 a month income and the next tier down which was at $600 a month. The highest income bracket was over $2900 a month.
Generally, economies seem to be measured in three brackets; poor, middle class and rich with percentages of population for each bracket being a very important indicator. This has to be one of the best ways to take the temperature, so to speak, of a society to see if it is healthy. The disparity between the economic classes inthe U.S. has been widening since Reagan tool office in 1980 and waged war on the middle class. It is coming to a head now in the States asso many more move from middle class to poor.
Costa Rica seems to have less of a disparity between the classes as far as population percentage differences. The poor are the largets group but there is still a respectable percentage of Tico who fall into the middle and upper classes. If and when this changes, as it has already doen in the States, there will have to be societal consequences.
Costa Rica is a small country and can make direction changes rapidly. In a world depression, I would expect to see changes here in Costa Rica take place with lightening speed comapred to the mammoth U.S.
Alfread I agree with your assesement wholehartedly, That was as concise and clear as it gets.
I have coined a new phrase: Decycle.
It is now not enough to recycle. The cycle of consumerism needs to be broken – Decycled.
What we need to replace it is a production of commodities that do not fill trash pits. What that is I don’t know, but the consumerism model dooms our children to a poor quality life.
I hope the few of us that realize the shallow rewards of consumption can influence, no matter how little, the rate of depleting the worlds resources. I think Costa Rica was attracting that type, but IMO it seems that the green leadership has always come from the Gringos and the consumer examples and values have been a result of western influence.
So the West seems to be putting both feet forward here. I guess we can only do our best to influence one mind at a time, and maybe enough enlightend individual can help point CR in a direction of non-participation with rampant consumtion and help Tico to understand that what they have is a balanced lifestyle built on many things other than money. And that they should really value that.
The key is to influence those who influence many…
Without a doubt there is a new and stronger middle class in Costa Rica. It’s made up of highly educated people whose salaries are an average of $1800 per month and they marry equally highly educated individuals and achieve $42,000 a year household incomes. This makes them credit worthy for banks and therefore able to purchase items previously not available to them.
Many new middle class Tico’s were born poor and are now able to command attractive salaries with their degrees in higher education. This new middle class Tico financial upward mobility mirrors a social change in the US during the 1980’s when the term “yuppie” was created to identify a new upwardly mobile class of young Americans.
As you put it “Excessive consumerism” is the key. Consumerism is not bad as long as it is not excessive. It is done to excess when people define themselves by material objects, instead of their deeds.
I suggest that we develop and insist upon non-polluting transportation and that water heating is done in green manners that reduce the need for electricity. I belive that all new building be required to produce energy depending of the sq Meter.
I don’t think you need to eliminate washing machines but I do believe that people needs to replace objects because a new style has come-out, rather than because it no longer functions is a large part of the problem. We need to face our choices about what defines us and take responsibility for the planet by doing so. An example, a washing repairman said to me “You know we are always being called out to repair the new style washers, but this old sytle you have is a workhorse – don’t replace t, just repair it.”
As long as you define yourself by your material goods, and collect a lot of them to market your “attractiveness” than the cycle will not be broken. It all starts in the heart. Who you choose to be and what is important to you. One thing we could start with is the “repair not replace” mentality that has been lost for many generations in the US.
We all need to rethink this consumerism deal. When I go to the store and look at something I think I want, my rule is see it, do not buy it. Think about it and shop for it. If I still want it after a couple of weeks than I might buy it. It helps you determine between a material “want or need.” If we could develop a system of satisfaction that deals in non-material events feeding us – like the ones the Ticos have, then we can reduce the want for things. It is the want, not the need that hurts us.
So if you agree – than you are part of the problem if you do not take the responsibility to reduce your consumption. There is no “because they are not reducing, I am not reducing” mentality. You either reduce, and are part of the solution, or you continue to consume to fulfill your wants (not needs), and you are part of the problem.
Do you know if you recycle all the good you use, that there is very little actual waste and that you can reduce your trash to one can a month instead of 10 cans a month. What if we all reduced our un-needed consumption by 90%?
The answer to reduced consumption is strong families, community ties, and local grown food. We should all grow our food. The object really is to be as currency free as possible. That means electric current and paper money.
I am not saying be free of it completely, but you can reduce the need to use currency. If you produce your electricity, you reduce the need for currency, if you use solar to heat and pump you reduce your need for currency, if you grow your food, you reduce the need for currency, if you make your wine you reduce the need. If you have large family and network of friends to socialize with, you reduce your need for currency. Eventually you see that currency is a government trap. And that all the rules (laws) of man are made to support the use of currency. The less currency you use, the less consumption. And the more real wealth.
People in the US are starting to reconsider their habits. Its refreshing. Because of the past consunpation, unfortunately we all need to be reformed smokers and institute the same kind of social taboo against excessive consumption.
The Disneyland way of entertainment is killing us. We need to derive our relationships that feed our soul from real people not humanoids or other animated objects. Greeting and talking, sharing food that you have grown and taking time to educate those around you are the meat of living. All the fantasy life junk on TV is mind poison.
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