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Evaluating Country Programmes 246 – Stabilisation and restructuring, 1982-95. The tidal wave of macro-economic imbalances in the early 1980s led to a renewed concentration on macro-economic balances, together with a concern for microeconomic efficiency that had been lacking earlier. Compared with the 1960s, big government shifted from being seen as the solution to being seen as the problem. Table 11.2 shows total USAID bilateral funding to Costa Rica during each of the four periods, by major type of expenditure, using dollars of constant value. Pre-1961: technical assistance Official US government assistance to Costa Rica began in 1942 under the auspices of the Institute of Inter-American Affairs, an affiliate of the State Department. Initial efforts involved technical assistance to public health and agriculture. Agricultural technical assistance continued on a unilateral basis until 1948, when a bilateral agreement was signed establishing the Servicio Técnico Interamericano de Cooperación Agricola (STICA), to be operated jointly by the two governments. Health assistance was formalised in 1951, when the Servicio Cooperativo Interamericano de Salúd Pública (SCISP) was established. These two servicios operated under the principles of the Point IV legislation passed by the US Congress in 1950. They were staffed by Americans and Costa Ricans and worked closely with, but outside the normal structure of, relevant ministries. Point IV provided technical co-operation based on formal requests Table 11.2. US Economic Assistance to Costa Rica, 1946-95 In million dollars – 1994 equivalent Sector 1946-61 1961-72 1973-81 1982-95 Total Agriculture 20 164 57 57 298 Natural resources 0 0 19 32 51 Education 4 16 13 64 96 Export development 0 6 0 15 51 Finance/industry 5 48 11 71 135 Democracy 5 40 19 20 85 Health 22 76 34 14 145 Infrastructure 195 120 9 27 350 Housing 2 16 12 2 31 Macro stabilitya 0 4 0 1 409 1 413 Population 0 8 8 12 28 Reg. agri. schools 0 0 0 42 42 Total 253 499 181 1 764 2 697 a) Dollar amounts were used mostly for private sector imports, with local currency proceeds programmed by USAID and the Costa Rican Government, as shown on the next pages. Source: Authors. OECD 1999
OECD 1999 Real Progress: Fifty Years of USAID in Costa Rica from the participating government and required cost-sharing and clearly defined, time-limited objectives. US resources were to be used for salaries and expenses of US technicians, costs of training Costa Rican technicians, and materials used in demonstration projects. A huge exception to “aid as technical assistance” was funding the Costa Rican portion of the Inter-American Highway. US funding of this infrastructure project was not carried out by any aid agency but by the US Bureau of Public Roads. Altogether, the United States spent USD50 million on the Costa Rican portion of the road – more than USD36 million of it during the 1950s. Most of the remainder was expended in the late 1960s in rebuilding portions of the road. STICA originally concentrated on establishing an agricultural extension service and 4-S clubs to transfer technology. By 1955, the extension service had 30 offices around the country, and management was transferred from STICA to the Ministry of Agriculture. STICA also developed irrigation and erosion control projects and later concentrated on agricultural research, both directly and through a contract with the University of Florida for research and training Costa Ricans. SCISP worked on water and sewer systems, health centres, and epidemic control. Some assistance was also provided for nursing education and slaughterhouse design. US help supported construction of Costa Rica’s first two modern water systems, including fluoridation for San José (the first in Latin America), design of an integrated water system for the central valley, and designs for community water systems (built in 20 communities per year in the late 1950s). The United States also financed studies, foreign advisers, and training abroad by Costa Ricans in a number of other sectors, including education, transportation, industry, housing, labour, and public administration. US aid financed studies of tax administration and local government, helped create the Central Statistics Office, and gave advice on establishing a formal civil service. In 1959, the first “public safety” programmes began. They included police training and internal security training, which were to continue until 1973. Assessment Both the technical assistance programmes of the 1946-61 period and construction of the Inter-American Highway had a major impact on Costa Rica. Probably the single most critical infrastructure project undertaken during the period, the Inter- American Highway brought substantial benefits to the country. It ended the nation’s physical isolation and dramatically increased internal communication. Although the road was conceived as part of a multinational network, its importance as a domestic Main Street actually far outweighed its importance for international traffic through Costa Rica. There is some question whether the part of the highway connecting Costa Rica with Panama was worth the cost to the United States (especially since the 247
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