Good Example Of Economy: Costa Rica And Panama Research Proposal

Central America has about seven countries; among them are Costa Rica and Panama. Since their transition to democracy, the countries have realized enormous economic growth and stability; they had worked for the current economic conditions, and cannot be compared to the time before they earned their democracy. The fair political stability in these countries has contributed to their robust economies. The two countries have continued to progress economically since their transition to democracy; the political stability is reflected by the progress they have made, for instance, Costa Rica depends on tourism, electronic exports, and agriculture, which cannot thrive if otherwise. Panama on the other side is a free market economy, fully dollarized and has a long-standing history of low inflation, which has been maintained over the years. The main economy driver in Panama is the service industry, especially the commerce, banking, and tourism industry. The proximity of Costa Rica and Panama to each other can explain why their main economic sectors are almost the same but in a way distinct.
However much the two economies, Costa Rica and Panama, depend on almost the same natural resources, they have implemented many different policies, laws and politics since the transition to democracy. They both have their unique history, which has continued to anchor their economy, the tourism industry in Costa Rica, and the history of low inflation in Panama. In the study, we will examine how the two economies vary greatly despite the relative economic stability, comparing the primary economic sectors, and analyzing how the economic stability has contributed to the economic progress of the two countries. The research is to form a basis for the economic comparison of the economic progress of both countries since the transition to democracy and the role played by the political stability in both economies.