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Vol.19 No.0423 Tuesday Edition, April 23, 2019
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According to the Ministries, the approval and implementation of the law to strengthen public finances was key to achieving  the approval from the OECD. / OECD courtesy photo.



Costa Rica obtains approval from the OECD
Public Governance Committee




By the A.M. Costa Rica staff

After an evaluation of key areas of public administration, the Organization for Economic Co-operation and Development (OECD), granted a formal opinion on the entry of Costa Rica into that organization.

Among the main achievements recognized by the organization are the advances in fiscal matters and public employment.

The evaluation process led by the Ministry of Planning and Economic Policy (MIDEPLAN) began in 2015 when this Committee published a Study on Public Governance in Costa Rica.

That report, in addition to making a diagnosis, provided a series of recommendations in different areas such as: management capacity and coordination of the government center, monitoring and evaluation, public budgets, public employment, regional development and integrity policies in public procurement.

"To achieve this result, it was essential to demonstrate the ability and willingness of the country to implement legal and administrative measures in the areas of governance center, budget governance, and public employment," said the Ministry of Planning in its statement.

According to the Ministries, the approval and implementation of the law to strengthen public finances was key to achieving this goal, particularly by providing tools to improve the efficiency of spending on specific salaries and destinations and establishing a clear fiscal rule that allows doing more with the same resources.

"Costa Rica had an important challenge: to approve a fiscal reform that would give sustainability to public finances. Achieving this task was not easy, it was a work of several years, which managed to unify the thinking of different political forces motivated by greater awareness to meet the structural challenges facing the country," said Rocío Aguilar, Minister of Finance. “Through this law and its implementation, a great step is taken towards more efficient fiscal and budgetary governance oriented towards the fulfillment of strategic objectives."

With respect to the employment of the public sector, administrative measures were implemented to contain spending and regulations that regulate the remuneration of employees, which seek standardization in the salary system; additionally, it was defined from the rectory of public employment in the Ministry of Planning, and the creation of a performance evaluation system.
 
"MIDEPLAN, as technical coordinator of the access process to the Public Governance Committee, has made important efforts to improve the governance capacity of the center of government over the autonomous institutions; through new monitoring instruments in the framework of the National Plan for Development and Public Investment, and a reinforced evaluation agenda, in which, from the use phase, public policies are redesigned to maximize their impacts," said Pilar Garrido, Minister of Planning. "We have also proposed legal reforms to contain institutional fragmentation and to give public policy greater coherence."

The Organization for Economic Co-operation and Development (OECD) has the mission of promoting policies aimed at improving the economic and social well-being of people around the world. It provides a forum where governments share experiences, elaborate public policy and jointly seek solutions to common and global problems.

Costa Rica has been evaluated by 22 technical committees of the Organization, of which the Public Governance Committee is the thirteenth to be approved.


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What other improvements should the country make to be part of the OECD? We would like to know your thoughts on this story. Send your comments to: news@amcostarica.com

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