participating in the insurance system receive at least forms of minimal support. Nearly a quarter of the state budget is invested in education; nevertheless many upper- and middle-class families send their children to private schools, which continuously leads to a two-class system. Unemployment benefits do not exist, but the poorest 5% of all households receive state support. After the market liberalization in the 1980s, Costa Rica managed to become a beneficiary of globalization and is still an attractive place for investors. Besides some incentives through liberal policies, the quality of Costa Rica's human capital(as produced by education and health policies) has been, and still is, a clear advantage. Basics on Social Democracy 33