It therefore seems likely that Costa Rica is finally gravitating towards the growth trajectory of Malaysia. In order to remain on that path, however, the Costa Rican government needs to learn from Malaysia and espouse an entitlement strategy of 'growth-with security'. This requires the emergence of sufficient groups that benefit from competitive activity to balance the interests of those who do not. This political process takes time. Economic reform therefore requires more than a change in economic policy, it also requires the accumulation of produced and social capital and that takes time, the exact amount of which will vary with the initial conditions. Moreover, Costa Rica shows that a social capital endowment that appears favourable under one set of conditions may subsequently prove an obstacle to improvement.
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Publication information: Book title: Resource Abundance and Economic Development. Contributors: R. M. Auty - Editor. Publisher: Oxford University Press. Place of publication: Oxford. Publication year: 2001. Page number: 237.
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