Columbus first saw this portion of Central America in 1502, on his last trip to the New World. Spanish settlement did not begin until the mid 1500s, however, because early expeditions were beset by disease and local resistance from the Guaymi people. The Spanish did find some gold in the area - inspiring the name Costa Rica (Rich Coast) - but not the large reserves they were hoping for.

Colonization proceeded slowly along the east coast until the colonists finally moved to the fertile valleys and mesas of the interior, known as the Central Valley. Geography kept the plantation system, with its attendant slavery, from developing. Instead, the colonists gathered near the indigenous communities and built ranches and farms. The towns grew into distinct provinces that even today have their own character and history. That independence and self-reliance is thought to be the reason democracy came more naturally to Costa Rica than to its neighbors when the country gained its independence in the early 1820s. Brief civil wars erupted among the major cities, but the more liberal forces of San Jose emerged victorious, which moved the country toward fair, democratic elections in the late 1800s.

In the 1940s, the country became politically polarized, and civil war broke out once again. After a brief struggle, Jose Maria "Don Pepe" Figueres emerged as the country's leader. He continued to be a central figure in Costa Rican politics through the 1970s, overseeing reforms that helped keep the country peaceful and prosperous in a region known for its armed conflicts and wretched poverty. Costa Rica abolished its military in 1948 and invested in education and public health facilities, actions that helped prevent a flood of rural poor into the major cities. These measures have prompted many to view Costa Rica as a model Latin American country, although it has had its share of economic problems in the 1980s and '90s. More difficult times may lie ahead: The country has been forced to cut back on its expensive social programs in order to reduce the national debt.