The few remaining examples of the indigenous culture include the fabulous collection of jade on display at San José's Museo de Jade and the major archaeological site at Guayabo, which is slowly revealing the presence of streets, aqueducts and causeways. This evidence suggests that the culture present on the eve of the Spanish invasion mirrored that of the Incas and Mayas of Peru and Mexico, respectively, more closely than was previously suspected.

Costa Rica ('the rich coast') was dubbed so by Christopher Columbus himself, who stayed for 17 days in 1502 and was impressed by the gold decorations worn by the friendly locals. Colonization was not immediately successful, taking until the 1560s for the Spanish settlers to make a dent in the tangled jungle. The first colony, Cartago, was settled in the fertile and salubrious central highlands, departing from the Spaniards' usual practice of settling the coastal areas, because the tropical shoreline was more prone to disease. This settlement also differed from the normal pattern of colonization in that the presence of only a few Indians meant there was no labor to milk and no mestizo culture created from intermarriage.The hoped-for hoards of gold did not eventuate, and Costa Rica remained a forgotten backwater for many years.

The 18th century saw the establishment of settlements such as Heredia, San José and Alajuela. Much of Cartago was destroyed in 1723 by the eruption of Volcán Irazú, but its hard-working survivors rebuilt the town. The introduction of coffee in 1808 spurred further development, and the country was invigorated by independence in 1821.

Coffee brought wealth, a class structure and a more outward-looking perspective. A bizarre turn of events in 1856 provided one of the first important landmarks in the nation's history and served to unify the people. During the term of coffee-grower-turned-president Juan Rafael Mora, a period remembered for the country's economic and cultural growth, Costa Rica was invaded by US military adventurer William Walker and his army of recently captured Nicaraguan slaves. Mora organized an army of 9000 civilians that, against all odds, succeeded in forcing Walker & Co to flee.The ensuing years of the 19th century saw power struggles among members of the coffee-growing elite and the institution of the first democratic elections.

Democracy has since been a hallmark of Costa Rican politics, with few despotic interludes. Civil war, however, did raise its ugly head in the 1940s when ex-president Calderón (whose working-class-oriented Christian Socialist policies had alienated him from the conservatives and the wealthy) and his successor, Picado, lined up against the recent ballot-winner Ulate (whose election win was not recognized by Picado's government) and José (Don Pepe) Figueres. After several weeks of warfare Figueres emerged victorious, formed an interim government and handed the presidency to Ulate. The National Liberation Party, formed by Figueres in 1949 has dominated the political scene since this brief kerfuffle.The constitution of 1949 finally gave women and blacks the vote and, controversially, dismantled the country's armed forces - giving Costa Rica the sobriquet of 'the only country which doesn't have an army'.
President Oscar Arias received the Nobel Peace Prize in 1987 for his attempts to spread Costa Rica's example of peace to the rest of Central America. The National Liberation Party's major opponent is the Christian Socialists, who retain the support of the poor and working class. Both political parties are oligarchical, with father-son and husband-wife associations predominating. In Februay 1998 the Social Christian Unity Party's Miguel Angel Rodríguez won the presidency with almost exactly 50% of the vote. He's a conservative businessman and economist who made the economy the priority of his campaign.

Costa Ricans have blamed the National Liberation Party's outgoing president for ruining their national economy and putting the country into recession. Rodríguez is expected to privatize state companies and seek foreign investment in an effort to create jobs.Other noteworthy events of recent years include several natural disasters that caused widespread flooding, road damage, and destruction of homes. In July 1996, Hurricane César resulted in several dozen deaths and the cutting off of much of southern Costa Rica from the rest of the country. The Interamericana Highway was closed for about two months and the overall damage was estimated at about US$100 million. The ill-famed Hurricane Mitch of November 1998 caused substantial damage to Costa Rica, but the most catastrophic events occurred in the countries to the north, especially Honduras, Nicaragua and El Salvador.

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