Costa Rica’s growing insecurity, declining education system, and persistent infrastructure deficiencies are severely weakening the country’s competitiveness as a destination for foreign direct investment (FDI), according to experts from the Universidad Estatal a Distancia (UNED).
Professor Velia Govaere Vicarioli and Karen Jiménez Morales, head of UNED’s Police Sciences Department, issued the warning, pointing to a structural crisis that threatens Costa Rica’s economic appeal and international reputation, especially as key sectors like tourism show signs of slowing down.
Govaere, former director of UNED’s Institute for Research in Economic Sciences, emphasized that attracting and retaining foreign capital is becoming increasingly difficult.
“Although the country has stood out for its skilled workforce and democratic institutions, today it faces a much more challenging environment,” she said. “Other countries in the region are strengthening their competitive advantages, while Costa Rica is starting to fall behind.”
Among the greatest concerns are the country’s difficulty in training and retaining qualified personnel, rising crime rates, and long-standing infrastructure issues. Combined, these factors make Costa Rica less attractive to international investors. Tourism, one of the country’s economic pillars, has already felt the impact. In the first quarter of 2025, international arrivals dropped by 3%. Govaere links this decline directly to the growing perception of insecurity.
“The alerts issued by embassies, such as that of the United States, have had a strong effect. They increase the perception of risk for both tourists and investors,” she said. Additionally, the strengthening of the U.S. dollar against the colón has made Costa Rica’s tourism offerings more expensive, further complicating the outlook for the sector. For Govaere, these challenges are not temporary.
“We are facing a structural crisis that requires sustained, long-term solutions. Improvements in education, security, and infrastructure demand significant investment and vision. We cannot expect to recover lost ground overnight,” she stressed.
The root causes of the security crisis, she explained, are linked to poverty, unemployment, and educational exclusion. In neglected communities lacking access to basic services and opportunities, criminal networks take hold and violence becomes normalized. While police forces work hard to contain this violence, their resources and capabilities are limited.
Since 2022, the Ministry of Public Security has implemented a new evidence-based management model, aiming to use data and criminological analysis to deploy resources more effectively. But, according to Govaere, these efforts, while commendable, are not enough on their own.
“We are at a turning point. If we don’t correct course, Costa Rica risks losing its long-held reputation as a safe, democratic, and stable destination for foreign investment,” she warned. “Attracting FDI is not just about offering tax incentives, it requires stability, skilled human capital, efficient institutions, and reliable infrastructure. We’re currently failing on those fronts.”
Both experts called on policymakers to move beyond short-term thinking and recognize the urgency of rebuilding the foundations of national development. “Speeches and isolated measures won’t suffice,” they concluded. “Costa Rica needs a coherent, ambitious, and sustained public policy to restore the strength that once made it a regional benchmark.”
