Ex-President Faces Economist in No-Radicals Costa Rica Vote

(Bloomberg) -- In a region dominated by fiery radicals such as El Salvador's Nayib Bukele and Nicaragua's Daniel Ortega, Costa Rica will choose a very different kind of leader in elections this weekend.

In line with its tradition of providing an investor-friendly oasis in a violent and chaotic part of the world, voters in the Central American nation will elect either an economist or an engineer, both educated in the U.S.

One poll published this week showed former World Bank economist Rodrigo Chaves, 60, neck and neck with former president Jose Maria Figueres, 67, who studied at the U.S. Military Academy at West Point. Another survey gave Chaves an 8 percentage point advantage.

Voting centers opened at 6 a.m. and will close at 6 p.m. on Sunday with initial results expected around 8 p.m. local time. The winner will be sworn in on May 8.

Costa Rica has long enjoyed some of the best living standards in Latin America, high education levels and a generous welfare state. But more recently the country has been plagued by mediocre economic performance which has seen its growth rate lag peers such as the Dominican Republic and Panama.

Both candidates say they want to fix that by attracting more foreign investment, and more tourists to visit the nation's Caribbean and Pacific beaches, tropical forests and volcanoes.

One of the few important differences between them is that Figueres opposes natural gas exploration and would push for more biofuel use, whereas Chaves backs gas as a means of transitioning away from oil.

Figueres already served as president from 1994-1998.

Harassment Allegations

During the campaign, Chaves came under fire over sexual harassment allegations made while he worked at the World Bank. He denies wrongdoing, and attributed the accusations to misunderstandings caused by cultural differences.

Both have promised to reduce the country's fiscal deficit and said they would work closely with the International Monetary Fund, which has a $1.8 billion standing program with the country signed a year ago.

“What is clear is that there is consensus on healthy public finances and facilitating an investment-friendly environment,” said University of Costa Rica political scientist Eugenia Aguirre.

Bond Returns

Investors appear to like how the election has panned out, after the first round of voting in February pared down 25 candidates to the current market-friendly duo.

The nation's bonds have returned 1.3% this year versus an average loss of 9.3% across emerging markets, according to data compiled by J.P. Morgan Chase & Co.