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1902: Foundation of the International Bank of Costa Rica

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1902: Foundation of the International Bank of Costa Rica

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To strengthen the economy weakened by the dependency on coffee and banana exports, the International Bank of Costa Rica was founded. It played a vital role in regulating financial transactions and supporting agricultural export industries.

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World War I brought a decline in international trade, deeply affecting Costa Rica’s coffee and banana exports which were the backbone of its economy. This led to widespread economic challenges within the country.

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The United Fruit Company faced growing discontent among its workers due to poor labor conditions and low wages. The 1921 strike marked a significant moment in labor movements in Costa Rica, pushing for better working conditions.

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1929: The Great Depression Hits Costa Rica

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1929: The Great Depression Hits Costa Rica

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Global economic downturn devastated Costa Rican exports, particularly coffee and bananas. Local economies collapsed, many plantations closed, and unemployment skyrocketed.

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To buffer the crisis in agriculture, the government passed the Agricultural Protection Law of 1933, aiming to stabilize agricultural prices and protect smaller farmers against monopolistic practices.

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Further labor struggles arose in banana plantations, with workers protesting against the United Fruit Company for mistreatment. These movements forced discussions on improving workers' rights.

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1940: Rafael Ángel Calderón Guardia's Reforms

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1940: Rafael Ángel Calderón Guardia's Reforms

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Calderón Guardia introduced social security and labor reforms, marking major social progress. His policies aimed to reduce inequality exacerbated by economic challenges tied to the agro-export crisis.

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1942: Military Alliance with the United States

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1942: Military Alliance with the United States

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During World War II, Costa Rica aligned with the Allies, influencing the country's economy through U.S. investments and shifting agricultural focus to meet wartime demands.

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1943: Creation of Fundamental Labor Code

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1943: Creation of Fundamental Labor Code

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To address workers’ issues, the Fundamental Labor Code was established. It provided protections for workers and formalized labor relations, laying the foundation for modern labor laws.

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1948: Costa Rican Civil War - Legacy of Inequality

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1948: Costa Rican Civil War - Legacy of Inequality

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Political and economic tensions built up partially due to longstanding inequality tied to the agro-export model. The Civil War, though brief, led to a new constitution and broadened social reforms.