Article Link:https://www.aljazeera.com/news/2021/1/16/costa-rica-explosive-debt-crisis-all-you-need-to-know
In Costa Rica, throughout many years the country has been facing a debt crisis that just continues to increase. In 2021 it is stated that, ¨about 42 percent of the country’s $19bn national budget will go to debt and interest payments, the minister of finance told legislators last year.¨ Costa Rica´s debt, unlike other countries, it is internal, meaning they have their own banking sector, which has a downside effect of costing more than foreign or multilateral bonds. With taxes rolling in, only 13% of the country’s GDP is being contributed. ¨ Of the seven countries in Central America, only Guatemala and Panama bring in fewer relative taxes, said Molina.¨
The government of Costa Rica has taken action enforcing a bill that is focused towards middle class workers, which slashes their work benefits, and introduces new tax services. However, I feel that this would drive a wedge between the government and their people. In retrospect, it is the government’s fault for not implementing a plan soon enough, while the people have to pay for the government’s mistakes. I believe a valid solution is that the government should tone back on some of the unnecessary programs they have. Also, I believe that instead of taxing more of their people, raise the price for countries trying to trade on certain goods. In addition, ask from their allied countries for some extra money. The government is doing an injustice towards the people, when there isn’t any valid plan implemented.
This article relates to class by the levels of analysis. On an individual level you have the government and president of Costa Rica, Costa Rica, President Carlos Alvarado Quesada. At a state level you have Costa Rica who is very corrupt, and has very little help from any other neighboring countries, or allies.