Rodrigo Carazo Odio
Encyclopedia
Rodrigo José Ramón Francisco de Jesús Carazo Odio (27 December 1926 – 9 December 2009) served as President
of Costa Rica
from 8 May 1978 to 8 May 1982.
Carazo was born in 1926 in Cartago
. Before serving as president, he was the central bank
's Director and General Manager for RECOPE (Costa Rica's nationalized oil refinery
business).
During and immediately following his term, Carazo played a central role in the founding of the University for Peace
, a United Nations-affiliated educational institution which offers graduate programs in peace and development studies. His government also concentrated on and promoted the country's petro-chemical industry and even began exploration and digging near the Talamanca Mountain
Ridge in search for petroleum
. In the energy sector, his government inaugurated the hydroelectric plant in Lake Arenal
. The Carazo government also regulated the excavation of gold
in the southern region of the country.
On the international front, Carazo had to deal mainly with the radical changes the neighboring country of Nicaragua
was going through. Nicaragua had been under the control of the Somoza
dictatorship for decades and Costa Rica had always opposed his rule. As the Sandinista
movement rose in the 1970s, Nicaragua was faced with civil unrest and small armed clashes. Costa Rica's government supported any power that went against Somoza, thus they gave their backing to the Sandinista insurgents. Many of the battles that took place in the Nicaraguan region bordering Costa Rica spilled onto Costa Rican soil. Carazo's government warned Somoza to stay on his side of the border several times. The government also began plans on creating a defense force to fight off any Somoza attempt to attack to invade Costa Rican territory. The attacks finally ended in 1979 once the Sandinistas took control of the country and Somoza was exiled. The government received a strong backlash from the public and the opposing political leaders claiming that Carazo had failed to protect Costa Rica's sovereignty. Further, Carazo's government allowed three U.S.
helicopters to touch down on national soil to facilitate Somoza's escape from Nicaragua, sending the President's critics on a political bashing rampage, calling the matter a disrespect to national sovereignty
. Later, in 1982, the Central American Democratic Community was formed in San José
with U.S. backing. Its aim was to isolate Nicaragua from the rest of Central America
as long as they had a Communist regime in power. Another big move was in 1981, when Carazo's government broke off all diplomatic ties with Castro
's Cuba
.
Carazo's government was plagued by economic instability and social unrest. During his presidency, there was a world economic recession. Oil
prices were at historic highs and the value of Costa Rica's main crop, coffee
, was falling. Against the advice of his Minister of Finance, Hernán Sáenz Jiménez
, and the International Monetary Fund
(IMF), Carazo instructed the Central Bank of Costa Rica to borrow heavily in order to maintain the value of the colón
, the local currency, hoping that an economic recovery was close at hand. This policy eventually became unsustainable, leading to a catastrophic sudden devaluation in September 1980. The heavy load of debt that the central bank acquired has contributed to the high rates of inflation
that Costa Rica has endured ever since.
After stepping down as president in 1982, Carazo became a well-known critic of the IMF and other global financial institutions. In his last years he campaigned vigorously against the Central American Free Trade Agreement (CAFTA).
Carazo played a leadership role in initiatives to improve relations between the Democratic Peoples Republic of Korea and the West. He made several visits to Pyongyang in the early 1990s. His efforts contributed to the opening of unofficial channels of communication between the United States and North Korea.
Carazo died in San José
on 9 December 2009 from heart failure.
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
from 8 May 1978 to 8 May 1982.
Carazo was born in 1926 in Cartago
Cartago, Costa Rica
- See also :* Cartago Agrarian Union Party* Provincial Integration Party Three* Cartago in Spanish...
. Before serving as president, he was the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
's Director and General Manager for RECOPE (Costa Rica's nationalized oil refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
business).
During and immediately following his term, Carazo played a central role in the founding of the University for Peace
University for Peace
The University for Peace was established in Costa Rica in 1980 "to provide humanity with an international institution of higher education for peace and with the aim of promoting among all human beings the spirit of understanding, tolerance and peaceful coexistence."At present, the UPEACE Costa...
, a United Nations-affiliated educational institution which offers graduate programs in peace and development studies. His government also concentrated on and promoted the country's petro-chemical industry and even began exploration and digging near the Talamanca Mountain
Cordillera de Talamanca
The Cordillera de Talamanca is a mountain range that lies on the border between Costa Rica and Panama. Much of the range and the area around it is included in the La Amistad International Park, which also is shared between the two countries....
Ridge in search for petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
. In the energy sector, his government inaugurated the hydroelectric plant in Lake Arenal
Lake Arenal
Lake Arenal is an artificial lake in Costa Rica, located in the northern highlands of the country. It was enlarged to its present size as a part of a 1979 hydroelectric project by the Costa Rican government to provide electricity to the country.- Geography :...
. The Carazo government also regulated the excavation of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
in the southern region of the country.
On the international front, Carazo had to deal mainly with the radical changes the neighboring country of Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
was going through. Nicaragua had been under the control of the Somoza
Somoza
The Somoza family was an influential political dynasty who ruled Nicaragua as an hereditary dictatorship. Their influence exceeded their combined 43 years in the de facto presidency, as they were the power behind the other presidents of the time through their control of the National Guard...
dictatorship for decades and Costa Rica had always opposed his rule. As the Sandinista
Sandinista National Liberation Front
The Sandinista National Liberation Front is a socialist political party in Nicaragua. Its members are called Sandinistas in both English and Spanish...
movement rose in the 1970s, Nicaragua was faced with civil unrest and small armed clashes. Costa Rica's government supported any power that went against Somoza, thus they gave their backing to the Sandinista insurgents. Many of the battles that took place in the Nicaraguan region bordering Costa Rica spilled onto Costa Rican soil. Carazo's government warned Somoza to stay on his side of the border several times. The government also began plans on creating a defense force to fight off any Somoza attempt to attack to invade Costa Rican territory. The attacks finally ended in 1979 once the Sandinistas took control of the country and Somoza was exiled. The government received a strong backlash from the public and the opposing political leaders claiming that Carazo had failed to protect Costa Rica's sovereignty. Further, Carazo's government allowed three U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
helicopters to touch down on national soil to facilitate Somoza's escape from Nicaragua, sending the President's critics on a political bashing rampage, calling the matter a disrespect to national sovereignty
Sovereignty
Sovereignty is the quality of having supreme, independent authority over a geographic area, such as a territory. It can be found in a power to rule and make law that rests on a political fact for which no purely legal explanation can be provided...
. Later, in 1982, the Central American Democratic Community was formed in San José
San José, Costa Rica
San José is the capital and largest city of Costa Rica. Located in the Central Valley, San José is the seat of national government, the focal point of political and economic activity, and the major transportation hub of this Central American nation.Founded in 1738 by order of Cabildo de León, San...
with U.S. backing. Its aim was to isolate Nicaragua from the rest of Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
as long as they had a Communist regime in power. Another big move was in 1981, when Carazo's government broke off all diplomatic ties with Castro
Fidel Castro
Fidel Alejandro Castro Ruz is a Cuban revolutionary and politician, having held the position of Prime Minister of Cuba from 1959 to 1976, and then President from 1976 to 2008. He also served as the First Secretary of the Communist Party of Cuba from the party's foundation in 1961 until 2011...
's Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
.
Carazo's government was plagued by economic instability and social unrest. During his presidency, there was a world economic recession. Oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
prices were at historic highs and the value of Costa Rica's main crop, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, was falling. Against the advice of his Minister of Finance, Hernán Sáenz Jiménez
Hernán Sáenz Jiménez
Hernán Sáenz Jiménez is a Costa Rican economist and lawyer, who was the Minister of Finance for the administration of President Rodrigo Carazo Odio in Costa Rica from 1979 to 1981...
, and the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF), Carazo instructed the Central Bank of Costa Rica to borrow heavily in order to maintain the value of the colón
Costa Rican colón
The colón is the currency of Costa Rica. The plural is colones in Spanish, but English speakers often say colons instead. The ISO 4217 code is CRC....
, the local currency, hoping that an economic recovery was close at hand. This policy eventually became unsustainable, leading to a catastrophic sudden devaluation in September 1980. The heavy load of debt that the central bank acquired has contributed to the high rates of inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
that Costa Rica has endured ever since.
After stepping down as president in 1982, Carazo became a well-known critic of the IMF and other global financial institutions. In his last years he campaigned vigorously against the Central American Free Trade Agreement (CAFTA).
Carazo played a leadership role in initiatives to improve relations between the Democratic Peoples Republic of Korea and the West. He made several visits to Pyongyang in the early 1990s. His efforts contributed to the opening of unofficial channels of communication between the United States and North Korea.
Carazo died in San José
San José, Costa Rica
San José is the capital and largest city of Costa Rica. Located in the Central Valley, San José is the seat of national government, the focal point of political and economic activity, and the major transportation hub of this Central American nation.Founded in 1738 by order of Cabildo de León, San...
on 9 December 2009 from heart failure.