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A megadiverse county, Costa Rica is known globally for its success in reversing deforestation and pursuing a growth model based on the sustainable use of its environmental resources. However, energy use and related greenhouse gas emissions increased in the last decade. Private cars are a major and growing source of emissions affecting climate and air quality. Waste disposal still relies on landfills, and much wastewater is untreated. Costa Rica’s extensive protected area network and pioneering programme of payments for ecosystem services have helped reduce biodiversity loss and extend forests’ carbon sequestration capacity. However, more should be done to tackle pressures on biodiversity from development of infrastructure and settlements, tourism, farming and fishing. The sheer scale of investment needed to achieve the Sustainable Development Goals calls for improving the efficiency of public spending, mobilising private finance, strictly enforcing regulations and providing adequate incentives. This is the first OECD Environmental Performance Review of Costa Rica. It evaluates the country’s progress towards sustainable development, with a special chapter focusing on biodiversity, and provides 52 recommendations.

Education and training are a high priority for Costa Rica that devotes to them more than 6.5% of GDP, one of the highest spending shares among OECD countries. However, educational outcomes remain poor and firms struggle to fill their vacancies, particularly in technical and scientific positions, which may endanger Costa Rica’s capacity to keep attracting foreign direct investment. Its complex fiscal situation requires Costa Rica to improve efficiency and quality of public spending in education to better support growth and equity. There is a fundamental need to improve the quality of early and general basic education to avoid that too many Costa Ricans leave education too early and without the skills needed to find a formal job. This requires a more targeted support to students with learning gaps, improving teachers’ selection and training and expanding access to early education. Revisiting the university funding mechanism will improve its accountability and can help increase the number of graduates in scientific areas. Reforms in vocational education may increase the supply of high-quality technicians, which will reduce existing skills mismatches and help more Costa Ricans access better-paid formal jobs.

This report provides a global assessment and outlook on wildfire risk in the context of climate change. It discusses the drivers behind the growing incidence of extreme wildfires and the attribution effect of climate change. It outlines the environmental, social and economic impacts of wildfires by illustrating the losses and costs observed during recent extreme wildfire events. Building on this, the report presents the findings of a cross-country comparative analysis of how countries’ policies and practices have evolved in recent years in light of observed and projected changes in wildfire risk. The analysis draws on in-depth case studies conducted in Australia, Costa Rica, Greece, Portugal and the United States. The report underlines the urgent need for governments to scale up climate change adaptation efforts to limit future wildfire costs.

Le Costa Rica s'est bien remis de la récession provoquée par la pandémie. La performance soutenue et résiliente des exportations continue de soutenir la croissance, tandis que la consommation est entravée par une inflation et un chômage élevés. La situation budgétaire s'est améliorée mais reste difficile, nécessitant des efforts soutenus pour contenir les dépenses et renforcer l'efficacité du secteur public pendant plusieurs années. Le maintien et le renforcement de l'engagement en faveur des investissements directs étrangers et du commerce extérieur, qui ont été essentiels pour diversifier le panier d'exportations, et l'amélioration des conditions permettant aux entreprises nationales de prospérer sont des défis majeurs pour améliorer le niveau de vie et la création d'emplois formels. Il faudrait pour cela alléger le fardeau réglementaire, améliorer le panier fiscal, encourager la concurrence sur les principaux marchés et de poursuivre les efforts de décarbonisation et de protection de l'environnement. Le soutien à une plus forte participation des femmes au marché du travail et l'amélioration de la protection sociale permettront de s'adapter aux changements démographiques en cours et de favoriser l'égalité des chances. L'éducation et la formation sont une priorité pour le Costa Rica, qui leur consacre une part de dépenses parmi les plus élevées des pays de l'OCDE. Cependant, les résultats scolaires restent médiocres et les entreprises peinent à pourvoir leurs postes vacants, en particulier les postes techniques et scientifiques. Améliorer l'efficacité et la qualité des dépenses publiques dans l'éducation est nécessaire pour mieux soutenir la croissance et l'équité. CHAPITRES SPÉCIAUX : ÉDUCATION ET FORMATION ; COMPÉTENCES

Costa Rica recovered well from the pandemic-induced recession. Sustained and resilient export performance continues to support growth, while consumption is hindered by high inflation and unemployment. The fiscal situation improved but remains challenging, requiring sustained efforts to contain spending and boost public sector efficiency for several years. Maintaining and reinforcing the commitment to foreign direct investment and trade, which has been key to diversify the export basket, and improving the conditions for domestic companies to thrive are key challenges to boost living standards and formal job creation. This would require reducing the regulatory burden, improving the tax mix, fostering competition in key markets and continuing decarbonisation and environment protection efforts. Supporting higher female labour participation and upgrading social protection will help to adapt to ongoing demographic changes and improve the equality of opportunities. Education and training are a high priority for Costa Rica that devotes to them one of the highest spending shares among OECD countries. However, educational outcomes remain poor and firms struggle to fill their vacancies, particularly in technical and scientific positions. Improving efficiency and quality of public spending in education is needed to better support growth and equity. SPECIAL FEATURES: EDUCATION AND TRAINING; SKILLS