Few of the Indians survived the Spanish conquest, which began in 1563. The region grew slowly and was administered as a Spanish province. It became a republic in 1848. In the 1970s rising oil prices, falling international commodity prices, and inflation hurt the economy. Efforts have since been made to reduce reliance on coffee, banana, and beef exports.
Tourism is now a major business.
Rodrigo Carazo Odio became president in 1978. Oscar Arias Sanchez, who became president in 1986, was awarded the Nobel Peace Prize in 1987 for his role in negotiating settlements to both the Nicaraguan and the Salvadoran civil wars. He opposed economic suggestions made by the International Monetary Fund, instead favoring greater government intervention in the economy. He favors economic reforms, such as privatization. In 2000 Costa Rica and Nicaragua resolved a long-standing dispute over navigation of the San Juan River, which forms their border.