Political Competition, Policy Making, and the Quality of Public Policies in Costa Rica

This paper uses a case study of Costa Rica to identify the reasons why democracy is conducive for development. By the mid-twentieth century, Costa Rica had begun to depart from the all-too-common mixture of political instability and economic stagna...

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Bibliographic Details
Main Author: Lehoucq, Fabrice
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
GDP
TAX
WAR
Online Access:http://documents.worldbank.org/curated/en/312871468247845252/Political-competition-policy-making-and-the-quality-of-public-policies-in-Costa-Rica
http://hdl.handle.net/10986/28007
Description
Summary:This paper uses a case study of Costa Rica to identify the reasons why democracy is conducive for development. By the mid-twentieth century, Costa Rica had begun to depart from the all-too-common mixture of political instability and economic stagnation characteristic of much of the developing world. This paper claims that this country has benefited from better-than-average public policies, a conclusion based upon an original assessment of policy effectiveness and a major comparative ranking of state policies. It largely rejects the interpretation that uncommon development performance stems from institutions created during the colonial period and instead emphasizes how unending political stalemates gradually made the struggle for power more democratic. A central conclusion of this paper is that political competition-as well as steady economic growth rates and development, more generally-interact with and reinforce each other so that the exercise of power foments rather than retards economic growth.