Costa Rica

Agricultural Policies in Costa Rica

In series:OECD Food and Agricultural Reviewsview more titles

Published on April 03, 2017

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Costa Rica’s strong agricultural sector is underpinned by the country’s political stability, robust economic growth and high levels of human development.  The sector has achieved significant export success, yet raising productivity and staying competitive in world markets will require efforts to address bottlenecks in infrastructure, innovation and access to financial services.  Maximising Costa Rica’s comparative advantage in higher-value niche products will depend upon more efficient services to agriculture, including better implementation of programmes, improved co-ordination among institutions, and reduced bureaucracy. While overall protection for agriculture is relatively low compared to OECD countries, it is nonetheless highly distorting to production and trade. Managing the transition to scheduled liberalisation presents an opportunity to reform costly policies, and to implement an alternative policy package with new investments in innovation, productivity and diversification, supported by transition assistance where needed. Costa Rican agriculture’s vulnerability to extreme weather events is expected to worsen with climate change, and even while the country is among global leaders in environmental protection, sustainable development and climate change mitigation, further adaptation efforts will be necessary.

TABLE OF CONTENTS

Foreword
Abbreviations
Executive summary
Assessment and policy recommendations
The agricultural policy context in Costa Rica
Trends and evaluation of agricultural policies in Costa Rica
Adaptation to climate change in Costa Rica's agricultural sector
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Key Policy Recommendations

1. Increasing productivity

2. Enhancing value and inclusion

3. Reducing market price support and promoting adjustment

4. Adapting to climate change

Align objectives, institutions and funding with a longer-term perspective to prepare for climate change
Strengthen alignment of adaptation spending and objectives
Improve the enforcement of regulations to encourage adaptive behaviour