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Education, crime, and infrastructure may be driving away foreign investment

Q COSTARICA — Current levels of insecurity, the progressive weakening of the education system, and persistent infrastructure deficiencies are seriously compromising Costa Rica’s position as an attractive destination for Foreign Direct Investment (FDI).

This was the warning issued by Professor Velia Govaere Vicarioli and Karen Jiménez Morales, head of the Police Science Program at the State Distance Education University (UNED), amid concrete signs of economic slowdown in key sectors such as tourism.

Govaere warned that maintaining the flow of FDI achieved in previous decades is no longer easy since, “although the country has distinguished itself by attracting investment thanks to the quality of its workforce and its democratic institutions, today it faces a more complex environment,” she noted.

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“As other nations in the region strengthen their competitive advantages, Costa Rica is experiencing worrying lags. The difficulty in training and retaining qualified personnel, rising crime, and infrastructure deficiencies are making us a less attractive destination,” she added.

The tourism sector, one of the most dynamic sectors in the national economy, registered a 3% drop in visitor numbers during the first quarter of 2025. This decline is largely attributed to the country’s climate of insecurity.

Govaere noted that, in addition to the warnings issued by embassies such as the United States, which increase the perception of risk among tourists and investors, the strengthening of the dollar has also made domestic supply more expensive, worsening the outlook.

For the expert, this is not just a temporary problem, but a structural crisis that demands sustained measures over time.

“Improvements in education, citizen security, and infrastructure require significant investment and long-term results. Regaining lost ground will not be possible in the short term,” she warned.

Factors

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Along the same lines, Karen Jiménez Morales emphasized that insecurity is a response to deep-rooted structural factors such as poverty, unemployment, and educational exclusion.

“These factors undermine community resilience and foster environments vulnerable to violence,” she explained.

While police institutions are making commendable efforts, their capacities are limited. Since 2022, the Ministry of Public Security has implemented a management model based on scientific evidence. However, for this to have a real impact, political support, adequate funding, and inter-institutional coordination are required.

Jiménez lamented that many public entities work in isolation, without coordination or common goals. “It gives the impression that institutions operate like islands. Without clear, conciliatory leadership that understands the problems, it will be difficult to make progress on effective prevention,” she noted.

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Both experts agreed that Costa Rica is facing a turning point and that, if these challenges are not urgently addressed, the country risks losing its international reputation as a safe, stable, and reliable investment location.

 

 

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