Costa Rica Country Assistance Evaluation |
Abstract: This Country Assistance Evaluation (CAE) assesses the Banks assistance strategy for Costa Rica, based on the influence the strategy had for the 1980s on determining the relevance, and effectiveness of the 1990s strategy. To assess this relevance, the CAE examines the diagnosis of the country ' s long-term development problems, at the time of the last Country Assistance Strategy (CAS) Board approval, in 1993, analyzing as well the objectives of the 1993 strategy, and their relationship with its lending, and non-lending instruments. Costa Rica is one of the most stable democracies in Latin America, committed to economic growth, social welfare, and the environment. Nonetheless, the country ' s economic, and social progress has been vulnerable to external shocks, and policy reform to the electoral cycle, and, high domestic debt has troubled macroeconomic management, with serious financial imbalances emerging in 1990, which led to the 1994-95 crisis, questioning the long-term viability of the Costa Rican model. The report outlines unsatisfactory strategic outcomes, and identifies initial design flaws, faulty because it included inappropriate adjustment lending instruments, and poorly designed reforms, including the passing of legislation as a condition to be met after Board approval, and before loan effectiveness. Recommendations include the preparation of a new CAS, with a continued promotion of structural reforms, and a broadened lending, and economic and sector work programs, in coordination with other bilateral/multilateral agencies.
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Report Type:
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Country Assistance Evaluation |
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Date:
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11/16/2000 |
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Report #:
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21391 |
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Subject:
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Multisector |
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Country:
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Costa Rica |
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Region:
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Latin America And Caribbean |
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Language:
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English |
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Project ID:
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N/A |
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Loan/Credit #:
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N/A |
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