Costa Rica is a stable presidential democracy in Central America, bordered by Nicaragua and Panama, and is widely regarded as one of the region's most consolidated democracies. President Rodrigo Chaves, of the Social Democratic Progress Party, leads a government navigating tensions between executive ambitions and the country's strong legislative and judicial institutions. The country maintains close ties with the United States and is an active multilateral player, having joined the OECD in 2021, while distinguishing itself through a long-standing commitment to neutrality and environmental diplomacy. Key fault lines for news readers include rising organized crime and drug-trafficking pressures, fiscal debates, and friction between Chaves and other branches of government.