Macroeconomic adjustment and social sector expenditure

This paper presents a review of the evolution of public financing of the social sectors in Costa Rica during the period 1975-1988 in which the country went in succession through rapid expansion, recession, and macroeconomic adjustment with slow reactivation. The review underlines the magnitude of the effort made by the country in the social sectors and the distortions that have occurred during the period in study. The paper concludes that Costa Rica can sustain its high level of social development provided that public sector resources are used more efficiently, and on activities targeted on the provision of basic services.