Structural policies to boost productivity and inclusion in Costa Rica

Abstract

By Lisa Meehan OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).

Enhancing business dynamism and consumer welfare in Costa Rica with regulatory reform

“…Rice is at the same time a staple item in the food basket of the poor and the most protected commodity in Costa Rica (OECD, 2017 [24]). 70% of the population consume rice everyday (Mata and Santamaría, 2017 [25]). Import tariffs for all types of rice is currently 35%.…”

“…These policies have brought prices well above international prices, creating rents that benefit a handful of large producers. The rice market is highly concentrated (Mata and Santamaría, 2017 [25]), with 19 large farmers accounting for more than half of the rice produced in Costa Rica. Large producers also benefit from tariff-free import quotas, assigned proportionally to their processing capacity.…”