The development of dependence in Costa Rica and the role of the Soviet Union

World systems and dependency theories seek to explain the global processes of unequal economic growth and distribution in terms of a system of interdependent relationships amongst all nations of the world. For the most part, research in this field has focused on economic linkages and has not given sufficient attention to political forces both within and between nations. When economic anomalies appear, as in the cases of East Asia, studies have shown that political forces are essential for understanding the economic processes at work. Further, without full consideration of political forces in the world system, research has been unable to effectively explain the role of the Soviet Union in the world economy.; This study approaches these problems through a case study focused on Costa Rica. Both domestic and international political factors explain Costa Rica's economic crisis circa 1980, as well as its progress through the decade. The strong middle class and its commitment to social spending contributed to deepened debt dependence; long-term superpower intervention in regional conflicts contributed to regional economic stagnation. In the period following the crisis, the Costa Rican state was able to enjoy legitimacy based on its successful social programs, and to lead economic growth, bolstered by large-scale foreign aid.; Long-term solutions to economic problems, however, are rooted in the resolution of the political violence in Central America, a resolution which must involve the United States, the Soviet Union and Cuba. In these developments, we begin to see the effects of perestroika on global economic and political processes--the issue of Central American peace is perfectly situated historically for the Soviet Union to make a major contribution toward realizing its new role in the world system.; In the analysis of the ongoing development of Costa Rican dependence, this study concludes that (1) early demographic features in Costa Rica were the major factor in later social class formation, (2) the formation of a broad middle class committed to social progress and reform led to a strong role for the state and eventually to the institutionalization of powerful expectations for further social progress, (3) the state, which enjoys both domestic and international legitimacy, has played and will continue to play the critical role in turning the country's political resources into long-term economic adjustments, and (4) the experience of Costa Rica has parallels with the East Asian cases that strengthen the applicability of world systems and dependency theories.