Costa Rica
Republic of Costa Rica
Local long form: Republica de Costa Rica
Cultural Note
It has been over a decade since the United States, Canada, and Mexico entered into the North American Free Trade Agreement (NAFTA). In December 2003, the United States negotiated a similar trade pact with Central American nations. The signatories to this deal, tentatively known as CAFTA, include Guatemala, Nicaragua, El Salvador, and Honduras. However, to the surprise of many, Costa Rica decided to opt out of the agreement. It’s not that Costa Rica opposes trade (one of their official government slogans is “Exportar es Bueno”); their government actively promotes trade and investment, yet it declined to join a free-trade agreement with the United States. Costa Rica’s rejection of the CAFTA agreement illustrates the diversity of Latin America: every Latin American is not alike, and obstacles may appear where you least expect them. On the positive side, Costa Rica allows foreigners to own businesses without taking a Costa Rican citizen as a partner. (A somewhat unusual circumstance in Latin America).
Costa Rica
●3 What’s Your Cultural IQ?
1.Which of the following is not true about Costa Rica?
a.Costa Rica is currently the wealthiest country in Central America.
b.Coast Rica abolished its army in 1948.
c.The people of Costa Rica are the best educated in Central America.
d.Costa Rican President Oscar Arias received the 1987 Nobel Peace Prize for his work in negotiating a peace plan in neighboring Central American nations.
ANSWER: a. Actually, the wealthiest nation in Central America is Panama, where the economy is buoyed by fees from the Panama Canal. Costa Rica comes in second, although its wealth is distributed much more evenly.
2.True or False? Ticos (as Costa Ricans are called) worry about losing their sovereignty to foreign influences; some accuse the United States of running a “parallel government” within Costa Rica.
ANSWER: True. The U.S. Agency for International Development (among other U.S. organizations) is so omnipresent in Costa Rica that it has been accused of being a “parallel government.”
3.The name Costa Rica means “Rich Coast.” True or False: On his fourth and final expedition to the New World, Christopher Columbus gave Costa Rica its name because of the gold he acquired here.
ANSWER: True. However, the gold artifacts Columbus got from the local Amerindians were not mined locally. Costa Rica has no gold; the artifacts had been imported, presumably
113
114 |
Kiss, Bow, or Shake Hands |
Costa Rica
from Mexico. Far from being a prosperous place, the Spanish who settled there found a coast so pestilent that they settled in the central highlands, where agricultural riches finally came their way, centuries later.
Cultural Note
To preserve its unique natural resources, the government of Costa Rica has set aside 21 percent of its land area as protected areas. This is a larger percentage than any other nation in the world and is one reason that Costa Rica is a favorite destination for ecotourists.
●3 Tips on Doing Business in Costa Rica
●Even though almost all Costa Rican business executives speak English, all written materials should be translated into Spanish.
●While it is often pointed out that peaceful Costa Rica has no army, it has plenty of other law enforcement personnel. These range from the police to the Civil Guard to the commandos of the Immediate Action Unit.
●Face-to-face contact is preferred over telephone calls. Traditionally, Costa Ricans kept phone calls short. This is changing as cell phones become more common, and upperclass youths utilize them constantly.
●3 Country Background
History
Christopher Columbus led the first European expedition to visit Costa Rica in 1502. He collected several gold decorations from the friendly Amerindians. Believing that the gold was mined locally (it was not), the Spanish named the region Costa Rica (Rich Coast).
After several failed attempts, the first successful Spanish outpost was established under Juan Vásquez de Coronado in 1562. To avoid the disease-ridden coastal regions, he selected the central highlands for the site of his new city, which was named Cartago. The Spanish found few surviving Amerindians to enslave or marry, so Costa Rica never developed a significant mestizo population. In 1821, all of Central America declared its independence from Spain. Costa Ricans were so remote that the news took a month to reach them. The Mexican empire claimed all of Central America, but Costa Rica was too far south—Mexican troops never arrived there. Costa Rica declared its independence from Mexico in 1832 and became the southernmost part of the new Central American Federation.
The Central American Federation collapsed in 1838; Costa Rica became an independent republic and was one of the five successor states. Export of Costa Rican coffee began around this time.
Costa Rica |
115 |
Costa Rica soon established a tradition of democracy and peaceful transition from one government to another. When former president Juan Rafael Mora tried to seize power in 1860, his coup failed and he was executed. The voting franchise was extended from wealthy landowners to poor male farmers in 1889.
Rafael Angel Calderón Guardia, elected president in 1940, ran a reformist administration supported by the Communists and opposed by the Conservative landowners. When he ran for re-election in 1948, Calderón was declared the loser in a disputed election. The Conservative candidate, Otilio Ulate was proclaimed the winner. The dispute escalated into civil war, and some 2,000 Costa Ricans were killed.
Peace was restored in 1949, and Otilio Ulate became president. A new constitution extended the vote to all citizens over eighteen, including blacks and women. The Costa Rican Army was dissolved. Peace is maintained by the Civilian and Rural Guard. Since 1949, Costa Rica has run free and democratic elections.
In 1987, Costa Rican president Oscar Arias received the Nobel Peace Prize for his work in negotiating a peace plan in neighboring Central American nations. Some believe this regional peace plan also had the effect of reducing the influence of the United States in Central America.
Type of Government
The government is a unitary multiparty republic, composed of a president, a unicameral legislative assembly made up of deputies, and the Supreme Court of Justice. The president is both the chief of state and the head of the government. The president and his deputies may only hold one successive four-year term of office. Judges are elected to eight-year terms. A fourth branch of government, the Supreme Electoral Tribunal, oversees the electoral process.
The people of Costa Rica are politically active and proud of their government. Elections, with voting mandatory for anyone over eighteen years old, are likened to a party, with festivities and celebrations lasting many days. Governments swing from moderately conservative to moderately progressive, as the political parties traditionally alternate power with each election.
For current government data, check with the Embassy of Costa Rica at www.costarica embassy.org.
Language
Spanish is the official language of Costa Rica. Caribbean Creole English is spoken by about 2 percent of the population, descended from Caribbeans who were imported to work on Costa Rica’s railroads. English has become Costa Rica’s second language and is widely understood, especially in urban centers and among the young.
Nevertheless, all materials should be translated into Spanish, rather than presented in English. Linguists have identified eleven languages in Costa Rica, one of which is now extinct.
The largest Amerindian language, Bribri, has only 6,000 native speakers.
Costa Rica
116 |
Kiss, Bow, or Shake Hands |
Costa Rica
The Costa Rican View
Costa Rica has retained Roman Catholicism as its national religion. Some 86 percent of Costa Ricans identify themselves as Catholics. As in other Latin American countries, there is rapid growth of Protestant religions. Over 9 percent of Costa Ricans are Protestants, and more than half of them belong to Pentecostal churches.
Costa Ricans welcome all affluent foreigners, although they have an ambivalent relationship with citizens of the United States. Costa Ricans are also convinced (with reason) that they live in the best and most stable country in Central America and do not encourage poor immigrants from neighboring nations. Many social ills, from petty crime to the perceived loss of civility, are attributed to Central American immigrants.
Costa Rica has a tradition of egalitarianism. “Sharing the wealth” is not just a social custom but a government mandate. Costa Rica’s relative prosperity and ethnic homogeneity allows such egalitarianism, as does a commitment to widespread education. Nevertheless, there is a Costa Rican upper class, consisting of wealthy landowners. Three-quarters of the pre-1970 presidents descended from just three of the original colonizers of Costa Rica.
*Know Before You Go
■
Costa Rica has four volcanoes, two of them active, which rise near the capital of San Jose in the center of the country. One of the volcanoes, Irazu, erupted between 1963 and 1965.
There are occasional earthquakes, hurricanes along the Atlantic coast, and flooding during the rainy season. Visitors need to be prepared for the hot, humid climate.
●3 Cultural Orientation
Cognitive Styles: How Costa Ricans Organize and Process Information
Costa Ricans love to use language and are open to discussions on any topic. However, they have very strong beliefs and are not easily persuaded to another’s point of view. They are primarily associative in their thinking and look at each situation as a unique happening. They are intuitive and use rules only as guidelines.
Negotiation Strategies: What Costa Ricans Accept as Evidence
Facts are usually interpreted through subjective feelings, though Costa Ricans will sometimes use faith in a humanitarian ideology as a source of the truth. Frank criticism is rare because the use of tentative language is much more conducive to saving face. The truth is what is believed at the moment.
Costa Rica |
117 |
Value Systems: The Basis for Behavior
This is a very humanitarian, fiercely democratic culture with a belief in peace through negotiations. The following three sections identify the Value Systems in the predominant culture—their methods of dividing right from wrong, good from evil, and so forth.
Locus of Decision-Making
Costa Rican culture is traditionally collectivist as opposed to individualist. While each individual is independent, there is a strong sense of responsibility to the family or group. Favored treatment is given to kin. Upward mobility often means using the group for individual advancement. A person trusts only those who appreciate his or her uniqueness. Costa Ricans have a strong self-image but loath arrogance and expect people in high places to display humility.
Sources of Anxiety Reduction
Family lineage is important to who you are; it determines your identification and status. Success is in the eyes of the extended family. There is a strong work ethic, but progress toward the goal of the project is not as important as working on the project. Costa Ricans prefer to think small, go slowly, and avoid risks, anxiety, or overwork. They generally try to avoid precise commitments, although they may make them vocally to avoid hurting your feelings.
Sociologists have determined that Costa Ricans typically display what is called a “high uncertainty avoidance.” This leads them to establish strict rules and policies, both in their legal system and in societal norms. Such cultures are highly risk-averse and generally resist change.
Issues of Equality/Inequality
Costa Ricans believe strongly in the philosophy of the equality of all people because each one is a unique individual—more so than any other Latin American culture. Wealth and family lineage are the primary determinants of social position. Costa Ricans’ “power distance ratio” has been measured as half that typical among Latin cultures. That means that there is a strong emphasis on the equality and dignity of work regardless of your social class.
Machismo, while extant, is also lower in Costa Rica than in its neighbors. The masculinity index of Costa Ricans has been quantified as less than half the amount typical for Latin cultures. This is indicative of low levels of gender discrimination. Women maintain their own identity apart from that of their husband in all legal and business matters.
Costa Rica
●3 Business Practices
Punctuality, Appointments, and Local Time
●Costa Ricans are by far the most punctual people in Central America.
●All foreign businesspeople are expected to be on time for appointments.
118 Kiss, Bow, or Shake Hands
|
● |
Costa Ricans allow themselves only a limited time for their midday break, so everyone is |
|
|
expected to be on time for a business lunch. |
|
● |
In Costa Rica, as in many European and South American countries, the date is written |
|
|
day first, then the month, then the year (e.g., December 3, 2010, is written 3.12.10 or |
|
|
|
Rica |
|
3/12/10). |
|
Good times to do business in Costa Rica are February to March and September to |
|
Costa |
● |
|
|
November. The rainy season runs from May through November (with rain heaviest on |
|
|
|
|
|
|
the Caribbean coast). The most popular vacation times are December and January and |
|
|
around the Christmas and Easter holidays. |
|
● |
Make appointments in advance, and reconfirm before arrival. |
|
● |
In the public sector, the fiscal year is the same as the calendar year. |
|
● |
Local time is six hours behind Greenwich Mean Time (G.M.T. –6); this is one hour |
|
|
behind U.S. Eastern Standard Time (E.S.T. –1). |
Negotiations
●Decision-makers are readily accessible and will be frank and open during discussions. Business takes place on a personal basis in Costa Rica. It is important to establish a relationship with your Costa Rican counterpart before proceeding to business issues.
●There is a strong sense of personal honor and social equality on the part of the Costa Rican businessperson. More so than anywhere else in Central America, every person is assumed to have value and dignity. Therefore, avoid any behavior that would demean another person, especially in public.
●Decisions are made by consensus of all involved, not just by top officials. This may slow the process down; avoid showing impatience. Being impatient lowers your credibility and puts you at a disadvantage.
●Precisely because persons at all levels of a company have input, remember to be polite to everyone you meet.
●Foreign investment—notably from the United States and Mexico—is aggressively competitive in Costa Rica. Contacts are very important to doing business. Remember to treat your business counterparts with the same respect with which you would treat a valued client at home.
●Time estimates and deadlines may not be strictly observed. Also, late payments are very frequent. Be prepared to travel to Costa Rica several times to finalize plans. Be tolerant of delays, and remain flexible by building these factors into your own plans.
●Women in business will meet with greater acceptance in Costa Rica than in many other Latin American countries. Women have been elected to the vice presidency in Costa Rica.
●Costa Ricans are much more formal and serious than their neighbors. Informality, casual dress, and the use of obscenity are negative traits that Costa Ricans associate with other Central Americans.
Costa Rica |
119 |
● |
Have business cards, proposals, and other material printed in both English and Spanish. |
|
|
While most executives speak English well, technical workers may not. |
|
● |
While it is not technically necessary for foreigners to offer a partnership to a Costa Rican |
|
|
citizen, you should have local legal representation and use a local advertising agency. |
|
|
Some foreign businesses offer partnerships to Costa Ricans to make use of their local |
Rica |
|
connections. |
|
|
Costa |
|
|
|
Business Entertaining
●Most business entertaining takes place in the evening, since lunch is the main meal of the day. Spouses are welcome at business dinners.
●Good topics of conversation are children, families, and the beauty of Costa Rica.
●The Costa Rican people enjoy discussing politics, particularly with foreigners. Costa Rica’s history of stable democracy provides a good topic for conversation. Foreigners should have some knowledge of the political history of Central America to speak intelligently on the subject.
●3 Protocol
Greetings
●Men will shake hands with other men in greeting. Women will often pat each other on the right forearm or shoulder instead of shaking hands.
●Women who are close friends may hug or kiss each other on the cheek. However, Costa Rican men do not usually hug other men. The hearty male abrazo (backslapping embrace) seen in other Latin American countries is rare in Costa Rica.
●In rural areas, some men will nod instead of shaking hands.
●Costa Ricans who are used to greeting North Americans may offer a firm handshake, but many handshakes may tend to be gentle. Adjust your grip to the other person’s handshake.
●Do not refer to the people as ricans, as this word has a bad connotation. The people of Costa Rica are referred to as ticos.
●At parties, it is customary to be introduced to and shake hands with everyone in the room.
Titles/Forms of Address
●You should address most people you meet by their title and their surname. Only children, family members, and close friends address each other by their first names.
●When a person has a title, it is important to utilize it. Usually the title alone is preferred; no surname is necessary. A Ph.D. or a physician is called “Doctor.” Teachers prefer the title Profesor, engineers go by Ingeniero, architects are Arquitecto, and lawyers are Abogado.
120 |
Kiss, Bow, or Shake Hands |
Costa Rica
Gestures
●Making a fist with the thumb sticking out between the middle and index fingers is obscene. This gesture is known as the “fig.”
●Most North American gestures will be understood in Costa Rica.
●Don’t rest your feet on any furniture except items expressly designed for that purpose.
Gifts
●Costa Ricans will exchange gifts frequently for all kinds of special occasions.
●Because of the large number of U.S. citizens in Costa Rica and the lack of import restrictions, U.S. goods are freely available there.
●If you are invited to a home for dinner, bring flowers, chocolates, Scotch, or wine.
●Baskets of assorted delicacies are very popular. Do not bring calla lilies; they are associated with funerals.
Dress
●Business: Men should wear a conservative dark suit. During business meetings, expect to keep your jacket on even in the heat. Costa Rican men in the hot coastal areas sometimes do without a jacket, but foreigners should bring a jacket and remove it if their counterpart does not wear one. Women should wear a dress or skirt and blouse.
●Historically, trousers were never worn by businesswomen, but this is changing.
●Casual: Shorts are worn only on the beach. Revealing clothing for women is not acceptable. Bring a sweater or jacket to wear at night in the higher elevations.
●Bring multiple changes of clothes. Because of the heat, people in Costa Rica bathe fre- quently—often more than once a day.
Cultural Note
Costa Rica’s egalitarianism manifests itself in extensive squatters’ rights. Squatters cannot be evicted if they are allowed to remain for three months. If they remain for ten years, squatters can even claim title to the land. This makes it difficult for absentee landowners to maintain ownership of their property.