Why doesn’t Costa Rica and Panama become one country?

The idea of Costa Rica and Panama joining raises several complex considerations involving history, politics, economics, and national identity.

The two countries have distinct governments and national identities, making unification unlikely.

While the two countries share a border and have a history of interaction, including a brief conflict in 1921, the Coto War (Guerra del Coto) stemmed from a border dispute over the Coto region, a territory along the mutual border, over which both countries claimed, they have maintained their independence.

Here are some key points to consider:

Historical Context

• Colonial Legacy: Both countries were part of the Spanish Empire, and their borders were drawn during the colonial period. The historical context has shaped their national identities and political boundaries.
• Independence: Costa Rica and Panama both gained independence in the early 19th century, with Costa Rica becoming part of the Federal Republic of Central America and later declaring its own sovereignty in 1848. Panama became independent from Colombia in 1903.
• National Identity: Costa Ricans have a strong national identity and pride. Merging with Panama would likely be seen as a loss of sovereignty.
• Political Stability: Costa Rica is known for its stable democracy and lack of an army, while Panama has had a more tumultuous political history. Costa Rica may be wary of potential political instability that could arise from such a union.
• Economic Independence: Both countries have distinct economies. Costa Rica has a strong emphasis on technology and eco-tourism, while Panama is known for its banking sector and the Panama Canal. Each country has developed its economic systems and policies that may not align perfectly.
• Trade and Cooperation: Costa Rica and Panama already engage in trade and cooperation through various regional agreements. Joining together might complicate existing trade relations with other countries.
• Cultural Differences: While both countries share some cultural similarities, there are also significant differences in customs, traditions, and social structures.
• Public Opinion: The citizens of both countries would need to support such a move, which could be a significant barrier. National pride and attachment to sovereignty often outweigh potential economic benefits.

Potential Benefits

• Increased Market Size: A union could create a larger market and potentially attract more foreign investment.
• Infrastructure Development: Joint projects in infrastructure, tourism, and trade could benefit both nations.

While there might be theoretical benefits to a union between Costa Rica and Panama, the practical realities—historical, political, economic, and social—make it unlikely.

Both countries are likely to continue pursuing their own paths while maintaining cooperative relationships.

Costa Rica has an embassy in Panama City. Panama has an embassy in San José. Both countries are members of the Central American Integration System (SICA), Community of Latin American and Caribbean States (CELAC), Organization of American States (OAS), and the Organization of Ibero-American States (OEI).