Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/89162 
Year of Publication: 
2010
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-157
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper analyzes five Productive Development Policies (PDPs) implemented in Costa Rica, finding that they are not optimally addressing market failures. Moreover, government failures rather than market failures represent the main justification for PDPs. Even in the presence of market failures, the policy instruments applied are not necessarily the most economically efficient but rather the most politically feasible options. In addition, the lack of policy evaluation and monitoring prevents adjustments and corrections of such policies. Addressing the arguments for policy intervention and incorporating the results of evaluation into policy design and reform are necessary conditions for success. In spite of positive policy outcomes, limitations to enhance competitiveness and create the conditions for productivity growth are still present. An umbrella approach in the case of those PDPs that reinforce each other is necessary for productivity growth.
Subjects: 
Policy Analysis
Policy Making
Industrial Policy
Costa Rica
JEL: 
L52
D78
Document Type: 
Working Paper

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