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BOX 4.5Social protection and gender equality in Costa RicaCosta Rica’s economy is heavily reliant on exports, including electronics and agricultural products,and tourism. Because of its outward orientation, the country is exposed to intense competitivepressures and the ups and downs of the global economy. To manage these risks, it has adoptedinclusive social policies, including universal health and education services and broad-basedsocial protection measures. Investments in infrastructure and education help support the country’scompetitive position internationally. Not only does Costa Rica’s approach to social policy contributeto economic stability but there is also evidence that these policies support greater gender equalityas well. Specifically, the social protection system allows women to choose alternatives to traditionalhousehold structures, including heading up households of their own. 96Within the human rights framework, States have anobligation to protect rights from actions taken bythird parties that threaten or undermine those rights.This includes maintaining an adequate system ofregulation to restrict the kinds of investor behaviourthat contribute to financial and economic crises.Stabilizing the macroeconomic environment canthus be seen as an aspect of complying with thehuman rights obligation to protect.Various measures can be adopted to promote thiseconomic stability. Capital controls can reduce thechance that a country will experience a massiveoutflow of short-term financial resources that cantrigger a crisis. 97 Many countries, including Brazil,Chile, China, Colombia, India and Malaysia, haveused these kinds of policies to reduce volatility andretain a stronger influence over domestic policy. 98At the national level, macro-prudential policiescan prevent the financial system from becomingdangerously fragile. 99 Examples of macroprudentialregulations include making the capitalrequirements of banks dependent on economicconditions, so that capital requirements increasewhen credit expands too rapidly; requiring thatthe assets of financial institutions be linked to theirequity; and limiting debt-financed acquisition offinancial assets. These interventions expand thescope for macroeconomic policy to supportingbroader social objectives.RecommendationsMacroeconomic and social policies need to workin tandem to improve economic stability, allowingindividuals and households to cope with economicshocks that can lead to retrogression in economic andsocial rights and exacerbate gender inequalities. Tofacilitate policy synergies, governments should:• Put in place social protection policies that act as‘stabilizers’ to reduce macroeconomic volatilitywhile also contributing to substantive equality• Introduce financial regulations that lessen thelikelihood of macroeconomic volatility that cantrigger an economic crisis• Consider the implementation of capital controlsand macro-prudential policies, which reducethe risk that a country will experience a massiveoutflow of short-term capital, in order to preventthe financial system from becoming dangerouslyfragile.PREVENTING THE ACCUMULATION OFSOCIO-ECONOMIC DISADVANTAGEThe human rights framework stresses theprogressive realization of rights over time. Realizingrights requires investments in human beings througha range of policies, including social protection and217