Central America Social Expenditures and Institutional Review : Costa Rica
The evolution of Costa Rica’s social sectors over the past decade has been dichotomous. On the one hand, economic growth has remained relatively high, however poverty and inequality have not declined (moreover, they have increased), and persistent...
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Format: | Report |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2016
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Online Access: | http://documents.worldbank.org/curated/en/2015/06/24632423/central-america-social-expenditures-institutional-review-costa-rica http://hdl.handle.net/10986/23608 |
Summary: | The evolution of Costa Rica’s social
sectors over the past decade has been dichotomous. On the
one hand, economic growth has remained relatively high,
however poverty and inequality have not declined (moreover,
they have increased), and persistent employment challenges
remain. On the other hand, the country has continued
experiences advances in many social indicators, such as
pre-primary and tertiary enrollment rates, access to
improved sanitation, and labor force participation, though
not in others (secondary school completion, immunizations,
employment). Higher economic growth and (to a lesser extent)
revenues seem to have allowed a substantial increase in
public social spending. Looking forward, the key challenges
Costa Rica faces are related to continuing improving the
quality and efficiency in the social sectors, while
improving targeting to serve the most in need, in a tight
and severe fiscal context. To expand coverage of excluded
population, priority will have to be given to reallocations
and improvements within the spending envelope for the social
sectors to maximize impact. With a fiscal deficit of more
than 6 percent of GDP, further expanding public social
spending is no longer an option and budget cuts are looming.
Improvements in public spending management and budget
execution, including the need of institutional reform to
consolidate programs and improve coordination among
executing agencies is equally important. In a country that
has long been the champion in expanding universal welfare
state, sustainability concerns will imply that hard fiscal
decisions would need to be made to increase the social
returns of budget allocation. |
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