Costa Rica ranks among the Top 20 emerging market economies, according to a report published this month by Ernst & Young, a global advisory service. The report identifies the Top 20 Rapid-Growth Markets based on a new “Soft Power” index that scores developing countries based on three main areas: Global Image, Global Integration, and Global Integrity.
Costa Rica has a long history of democracy, zero military spending, universal education and healthcare, and globally admired policies of environmental protection; Costa Ricans elected a Nobel “Peace” Prize-winning President via free vote; the country is the home of the United Nations University for Peace, is a popular tourism destination, and boasts high English fluency. Factors such as these were considered from 2005 to 2010 to determine the forerunners of the developing world.
What does it mean to rank as a Top 20 Rapid-Growth Market? According to Ernst & Young, “soft power has gained widespread currency and is now regarded as an important and comprehensive indicator of national strength.” In simple and more specific terms, Costa Rica is likely to attract more foreign investment, and thus have a more stable economy, real-estate market, government, etc, than most other emerging market economies in the world.
The findings in this report are not just “sunshine” up our proverbial ”skirt.” But as hard power (military and economic force) starts to lose its influence in a world where foreign investment drives growth – and decline – in market economies, those who bought into the Pura Vida lifestyle of Costa Rica are more likely to be sitting pretty on the beach.
To read the full report from Ernst & Young, click here.