Policy planning and administrative improvement (PPAI)

Mid-term PES, based on a Mission review, covers the period 4/83-10/85. The project has achieved expected results from all but a few activities. Of 27 subprojects (SP"s), 17 have been completed, 15 with complete success. Activities relating to administrative and managerial improvements have produced satisfactory results; all planned studies/assessments for economic policymaking have been completed, many with significant impact; and, of 8 studies on private sector performance, only the Free Zone Strategy Paper (which nevertheless provided a structure for new development around San Jose) fell short of expectations. Of the 10 activities still underway, only one - support to the Costa Rican Development Initiatives Coalition (CINDE) - is behind schedule (but has been brought back on track). All three TA contractors have provided excellent support. Due to the short-term nature of SP"s, unplanned effects have had no significant overall impact; external factors have affected only the privatization strategy developed for the Costa Rican Development Corporation (CODESA), as during implementation the Government of Costa Rica (GOCR) legislated a divestiture procedure and rendered the study redundant. The project has itself induced changes in the policy setting; e.g., the free zone studies have contributed to a positive GOCR attitude toward free zone development. The project has demonstrated the need to be selective in SP approval in terms of demand on staff time. Managing the project"s 27 grant agreements has proven more complex than expected; communications and monitoring are necessary for each, as it is realized that detailed knowledge of all the activities is as important as in any project. The project has been useful as a quick response to concerns related to the CBI and, despite its complexity, has provided many results to support USAID/CR policy dialogue and project design. Action decisions are to request a project extension and revise the project management structure.