Policy planning and administrative improvement

The Ministry of Planning will receive TA and some training to help it implement the project. To further economic policy formulation, the project will help the Costa Rican Development Corporation (COPESA) restructure its operations (e.g., via divestitures, closings, or upgrading efficiency) and will assess competitiveness in assembly industries (maquila). Potential activities include assessing Costa Rica"s foreign exchange policy, its competitiveness in exports, and the future economic impact of increased indebtedness from donor assistance; reviewing the performance of private financial institutions, the Central Bank"s (CB) credit program, and other pertinent Costa Rican programs, procedures, and laws; and disseminating key findings via seminars, meetings, and information packages. To expand exports and investments by the private sector, potential investors and exporters will be helped to conduct feasibility, marketing, and production studies and develop other needed information. Potential activities include, inter alia: helping the new Minister for Exports and Investments and the GOCR develop an import and investment strategy; helping to estabish a one-stop, investment-export center in Costa Rica, with offices abroad; developing an action plan to promote the effectiveness of free trade; and studying the incentives for, and impediments to, exporting from the standpoint of individual businesses and through surveys and case studies of export-related experiences. To improve administration and management, the project will: help the Ministry of Finance improve direct tax collection operations, establish adequate control over incoming goods, expand collection of duties, and review and evaluate current GOCR budget information; help the CB establish an ADP system; and help the Casa Costarricense de Seguro Social to improve accounting and financial management (including auditing) as well as procurement procedures and materials management.