Information Technology Landscape 
in COSTA RICA

Human Capital and IT


Costa Rica has the highest United Nations Human Development Index among all developing countries.5 With the abolishment of the army in 1948, the government has been able to give high priority to the welfare of its people.  Costa Rica's democratic tradition and physical stability has created a high standard of living by focusing on health and education of the population.  Therefore, not only has the country been able to develop internally, it also has become an attractive location for foreign companies seeking to establish operations.

However, it faces losing its competitive advantage simply for its small size.  There is a limited number of engineers and technicians and all available ones have been swapped up by the already existing high technology companies.  This fact threatens to hinder further expansion.  Its work force continually seeks higher wage jobs than its neighboring countries.  This is reflected in the country's unemployment figures which show that while 6.2 percent of the work force was unemployed in 1996, 13.9 percent were underemployed.17

Therefore, the government has embarked on an aggressive strategy to upgrade the educational system to continue economic development in the high technology areas.  (See Government Policies for more information.)  According to the dean of the Instituto Technologico de Costa Rica, the country's foremost science and engineering university, the country must find a way to train people for an estimated 10,000 high-tech jobs in every skill level over the next three years.17
 

 
COSTA RICA UNITED STATES WORLD
Staff:                      (k) 1990 
                               (k) 1996 
             % change 1990 - 96 
Main lines per employee: 
                               (k) 1990 
                               (k) 1996 
              % change 1990 - 96
3.3 
4.5 
6.7 

  86 
106 
4.2

913.0 
897.7 
-0.3 

149 
190 
4.1

5'201.6 
5'337.7 
-1.0 

  96 
139 
6.3

 * Source ITU13

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Last updated December 18, 1998