In 1948, Costa Rica abolished its military and spends the money on education and culture instead.
Costa Rica Abolished Its Army to Fund Education Instead
Picture this: It's December 1, 1948, at the Bellavista Barracks in San José. José Figueres Ferrer, the provisional president who just won a brief civil war, picks up a sledgehammer and takes a ceremonial swing at the fortress wall. With that strike, Costa Rica became the first—and still one of the only—countries in the world to constitutionally abolish its military.
But this wasn't just symbolic theater. The decision redirected millions of dollars from tanks and troops into classrooms, hospitals, and infrastructure. And it worked spectacularly.
The Money Had to Go Somewhere
When you eliminate an entire branch of government, you free up serious cash. Costa Rica took those military funds and funneled them into education and healthcare with almost religious zeal. By 2021, the country was spending 6.25% of its GDP on education—well above the global average of 4.48%. Even more striking: education consumed 31% of the entire government budget, compared to a world average of just 14%.
The results speak for themselves. Costa Rica now boasts universal healthcare, free public education through university level, and a literacy rate that consistently ranks among the highest in Latin America. The country didn't just survive without a military—it thrived.
What About Security?
Skeptics always ask: "But who protects them?" The answer is nuanced. Costa Rica maintains a public security force for law enforcement and border protection, but nothing resembling an army. The country relies on international law, diplomacy, and its relationship with the United States for defense against external threats.
This strategy has held up remarkably well. While neighbors descended into military coups and civil wars throughout the late 20th century, Costa Rica remained stable and democratic. The absence of a military actually reduced political instability rather than creating it.
The Ripple Effects
The economic impact went beyond just reallocating money. Research shows Costa Rica's per capita GDP growth jumped from 1.46% to 2.28% between 1950-2010 compared to what economists predict would have happened with a standing military. That might sound modest, but compounded over 60 years, it represents a massive difference in living standards.
Today, the former Bellavista Barracks where Figueres swung that sledgehammer is the National Museum of Costa Rica. The symbolism is perfect: where soldiers once trained, families now explore art, history, and culture. It's a concrete reminder that sometimes the most radical choice is also the smartest one.
Costa Rica proved that military might isn't the only path to national success. Sometimes peace, education, and healthcare can be their own form of strength.