Why are Costa Rica and Panama richer economically than the rest of Central America?

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  • Ray
    Lv 6
    2 months ago
    Favorite Answer

    Panama has the Panama canal, which is a major global economic hub due to its ship passage. The only other way for ships to cross the 2 American continents is to go to the poles!

    Costa Rica has had a history of good economic policies implemented which make it a prime destination for retirees.

    The rest of S. America is mostly very socialist, they are characterized with big government intervention in the economy which is bad for the economies.

    Venezuela is the latest wealthy south American country to fall under socialism. Chavez implemented universal healthcare, ''free'' university, housing for the poor etc but this came at a cost, the cost was their vibrant economy.

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  • 2 months ago

    They are democratic & believe in capitalism.  

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  • Oiy
    Lv 5
    2 months ago

    They are heavens for freak investors. Money laundering is allowed there.

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