2008年-世界发展银行全球_Political_Competition_Policy_Making_and_the_Quality_of_Public_Policies_in_Costa_Rica_48页_1mb

Summary of "Political Competition, Policy Making, and the Quality of Public Policies in Costa Rica"

Core Content

This working paper by Fabrice Lehoucq explores the relationship between political competition, policy making, and the quality of public policies in Costa Rica, using the country as a case study to understand how democratic institutions and political dynamics can foster economic development. The paper argues that Costa Rica's success in development is not primarily due to colonial-era institutions but rather to the evolution of its political system and the quality of its public policies.

Main Points

1. Economic and Social Developments

• Costa Rica has experienced significant economic growth and social transformation since the mid-20th century.
• GDP per capita tripled from US$1,963 in 1950 to US$6,174 in 2000.
• The share of the population living in poverty decreased from 50% to 21% between 1950 and 2000.
• Infant mortality rates dropped from 90 to 10 per 1,000 live births.
• Life expectancy increased from 55.6 to 77.7 years.
• Literacy rates rose from 79% to 95% among those 12 years or older.
• The Human Development Index (HDI) improved from 0.55 in 1960 to 0.79 in 2000.

2. Political Trajectory

• Costa Rica has had a competitive political system for over 100 years, with a long period of democratic stability.
• It has one of the oldest democracies in the Western Hemisphere and the world.
• The country transitioned from a competitive oligarchy to full democracy in the late 1950s after the 1948 civil war.
• The 1949 Constitution extended suffrage rights to women, and by 1901, voter turnout was already high at 71%.
• The political system has consistently been open and fair, with limited fraud and violence.

3. Quality of Public Policies

• Costa Rica ranks above the Latin American average in policy quality, according to the Inter-American Development Bank (IADB).
• It is the second most adaptable country in the region, behind Chile, in terms of policy flexibility.
• Public policies have been effective in promoting development, especially through intertemporal agreements among political actors.
• The 1949 Constitution played a key role in structuring the roles of different branches of government and reducing the stakes of political conflict.

4. Policy Flexibility

• During the 1950s–1970s, Costa Rica maintained macroeconomic stability despite a fiscal deficit.
• The fixed exchange rate policy during this period was effective due to an independent central bank and controlled public debt.
• However, by the early 1980s, the inability to adjust fiscal policies led to a severe current account deficit and a government debt crisis.
• In 1982, the government defaulted on its international debt.
• Since 1982, exchange rate policy has become more flexible, with the adoption of a crawling peg system and later a floating rate regime with bands.

5. Policy Coherence

• From the 1950s to 1982, Costa Rica's policies were coherent and focused on industrial and social development.
• The country implemented import substitution industrialization (ISI) policies, which protected domestic industries and created a state-directed industrial sector.
• The Costa Rican Development Corporation (CODESA) was established to promote industrial growth.
• After 1982, policy coherence declined, and the focus shifted to export-led development.
• Tariffs were gradually eliminated, and trade openness increased significantly, as shown by the Structural Reform Index.

Key Information

• Democracy and Development: The paper emphasizes that democracy, through political competition, fosters development by encouraging policy makers to focus on the median voter.
• Institutional Design: The 1949 Constitution and the new separation of powers model helped to create a more stable and effective political system.
• Role of Political Competition: Political competition, even with occasional collusion, has kept the government responsive to public needs.
• Public Debt and Fiscal Policy: The country's fiscal deficits and reliance on domestic debt have been significant challenges, especially in the 1980s.
• Economic Transformation: Costa Rica shifted from an export-based economy to a more diversified one, including tourism and non-traditional exports.
• Policy Effectiveness: The paper highlights the importance of policy coherence and flexibility in achieving sustained development.

Conclusion

Costa Rica's development success is attributed to its political competition, effective public policies, and institutional arrangements. The country's experience suggests that democratic governance and institutional design play a crucial role in shaping the quality and effectiveness of public policies, which in turn support economic growth and development. The case study provides valuable insights for understanding the mechanisms that link political systems to economic outcomes.