Privatization in Costa Rica offers an assessment of the last twenty-five years of privatization efforts in Costa Rica, and argues that one-dimensional thinking about the privatization of state services is misdirected. An historical perspective on privatization in general within the context of commercial globalization is followed by a review of Costa Rica's political economy and it's integration into a global market in terms of privatization. Case studies of three types of privatization attempted include the Costa Rican Development Corporation (C.O.D.E.S.A.); the Costa Rican Electricity Institute (I.C.E.), which includes telecommunications; and the Costa Rican Social Security System (C.C.S.S./I.N.S.). In some cases privatization indeed represents an effective response to the particular historical circumstances the country faces. In other instances, however, privatization can be inappropriate. This study is unique in that it critiques privatization in Costa Rica specifically and Central America in general. Its analysis is potentially applicable to smaller developing countries around the globe that are often neglected, but substantial in number.
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Anthony B. Chamberlain (Ph.D., University of Maryland) is Director of the Council for Christian Colleges and Universities Latin American Studies Program, San José, Costa Rica.
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