In many respects, Costa Rica is a success story in terms of development. It is considered an upper middle-income country, which has shown a steady economic growth over the past 25 years. Costa Rica is also a global leader for its environmental policies and accomplishments and it is the only tropical country in the world that has reversed deforestation.
Two pressing development challenges stand out: the fiscal situation and persistent inequality. These challenges affect the basic pillars of the Costa Rican development model: inclusion, growth, and sustainability (World Bank, 2020).
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