IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/1300-en.html
   My bibliography  Save this paper

Making growth more inclusive in Costa Rica

Author

Listed:
  • Alberto González Pandiella

    (OECD)

Abstract

In the past 30 years Costa Rica has grown steadily and social indicators have improved markedly. Well-being indicators are comparable or even above the OECD average in several dimensions, such as health, environment or life-satisfaction. This paper reviews the social progress that Costa Rica has achieved and identifies reducing inequality and poverty as the main challenges. To tackle those challenges, the paper argues that there is a need to upgrade existing social assistance programmes to maximise their impact. Social policies should put more emphasis on getting more people into formal work, including by raising their skill levels. This is the most effective way to get people out of poverty. Education is the area where the largest gap with respect to OECD countries is observed. Policy efforts are also warranted to tackle informality, which is increasing rapidly, and to close the gender gap in the labour market. The health and pension systems play a fundamental role in maintaining social cohesion in Costa Rica and it is crucial to modernise them and to make them sustainable in the face of demographic challenges. Costa Rica exemplifies the benefits of preserving natural resources in generating growth and employment opportunities, thereby providing a way out of poverty. Building on its achievements in this area, Costa Rica should reinforce environmental protection efforts, such as reducing emissions from the transport sector and improving wastewater treatment. Une croissance plus inclusive au Costa Rica Au cours des 30 dernières années, le Costa Rica a connu une croissance soutenue et les indicateurs sociaux se sont améliorés de façon marquée. Les indicateurs de bien-être sont comparables ou même au-dessus de la moyenne de l'OCDE en plusieurs dimensions, comme la santé, l'environnement ou la satisfaction de vivre. Cet article examine le progrès social que le Costa Rica a réussi et identifie la réduction des inégalités et de la pauvreté comme les principaux défis. Pour faire face à ces défis, le document fait valoir qu'il est nécessaire d'améliorer les programmes d'aide sociale existants afin de maximiser leur impact. Les politiques sociales devraient mettre davantage l'accent sur l'obtention de plus de gens dans le travail formel, y compris en augmentant leur niveau de compétence. Ceci est le moyen le plus efficace pour sortir les gens de la pauvreté. L'éducation est la dimension où le plus grand écart par rapport aux pays de l'OCDE est observé. Les efforts politiques sont également nécessaire pour lutter contre l'informalité, qui est de plus en plus haut, et de combler l'écart entre les sexes sur le marché du travail. Les systèmes de santé et de retraite jouent un rôle fondamental pour maintenir la cohésion sociale en Costa Rica et il est crucial de les moderniser et de les rendre durables face aux défis démographiques. Costa Rica illustre les avantages de la préservation des ressources naturelles en générant des opportunités de croissance et d'emploi, fournissant ainsi un moyen de sortir de la pauvreté. Fort de ses réalisations dans ce domaine, le Costa Rica devrait renforcer les efforts de protection de l'environnement, tels que la réduction des émissions du secteur des transports et l'amélioration du traitement des eaux usées.

Suggested Citation

  • Alberto González Pandiella, 2016. "Making growth more inclusive in Costa Rica," OECD Economics Department Working Papers 1300, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1300-en
    DOI: 10.1787/5jlz4043b39w-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5jlz4043b39w-en
    Download Restriction: no

    File URL: https://libkey.io/10.1787/5jlz4043b39w-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    inclusive growth; inequality; labour market; poverty;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I2 - Health, Education, and Welfare - - Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:1300-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.