<P> Costa Rica was sparsely inhabited by indigenous people before coming under Spanish rule in the 16th century . It remained a peripheral colony of the empire until independence as part of the short - lived First Mexican Empire , followed by membership in the United Provinces of Central America , from which it formally declared independence in 1847 . Since then , Costa Rica has remained among the most stable , prosperous , and progressive nations in Latin America . Following the brief Costa Rican Civil War , it permanently abolished its army in 1949 , becoming one of only a few sovereign nations without a standing army . </P>
central americas oldest democratic republic which has had no standing army since 1948 is
Costa Rica