Costa Rica
Spanish colonization

The name la costa rica, meaning "rich coast" in the Spanish language, was in some accounts first applied by Christopher Columbus, who sailed to the eastern shores of Costa Rica during his final voyage in 1502, and reported vast quantities of gold jewelry worn by natives. The name may also have come from conquistador Gil González Dávila, who landed on the west coast in 1522, encountered natives, and obtained some of their gold, sometimes by violent theft and sometimes as gifts from local leaders.

During most of the colonial period, Costa Rica was the southernmost province of the Captaincy General of Guatemala, nominally part of the Viceroyalty of New Spain. In practice, the captaincy general was a largely autonomous entity within the Spanish Empire. Costa Rica's distance from the capital of the captaincy in Guatemala, its legal prohibition under mercantilist Spanish law from trade with its southern neighbor Panama, then part of the Viceroyalty of New Granada (i.e. Colombia), and lack of resources such as gold and silver, made Costa Rica into a poor, isolated, and sparsely-inhabited region within the Spanish Empire. Costa Rica was described as "the poorest and most miserable Spanish colony in all America" by a Spanish governor in 1719.

Another important factor behind Costa Rica's poverty was the lack of a significant indigenous population available for encomienda (forced labor), which meant most of the Costa Rican settlers had to work on their land, preventing the establishment of large haciendas (plantations). For all these reasons, Costa Rica was, by and large, unappreciated and overlooked by the Spanish Crown and left to develop on its own. The circumstances during this period are believed to have led to many of the idiosyncrasies for which Costa Rica has become known, while concomitantly setting the stage for Costa Rica's development as a more egalitarian society than the rest of its neighbors. Costa Rica became a "rural democracy" with no oppressed mestizo or indigenous class. It was not long before Spanish settlers turned to the hills, where they found rich volcanic soil and a milder climate than that of the lowlands.
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