The Economy of Costa Rica
Abolishing the Army in 1948
After a brief civil war, Costa Rica abolished its army in 1948 and redirected money to education and health.
A bold choice.
Civil war
A 1948 conflict ended with a new government led by José Figueres.
Abolition
The army was dissolved, and the constitution banned a permanent military.
Peace dividend
Funds went into schools, hospitals and infrastructure.
Security
It relies on police and international treaties.
Spending shift
Money that might have gone to the military built rural schools.
Assuming demilitarisation alone explains success
Other factors also mattered.
Key takeaways
- The army was abolished in 1948.
- Spending went to social needs.
- Security uses police.
- Success has multiple causes.
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