C O S TA R I C A Connecting the Greater Metropolitan Area of Costa Rica: Urbanization Review of the South Corridor Editors Diana Tello Medina y Carina Lakovits March 2023 C O S TA R I C A Connecting the Greater Metropolitan Area of Costa Rica: Urbanization Review of the South Corridor Editors Diana Tello Medina y Carina Lakovits March 2023 © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings,interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Cover photo: © Alonso Brenes Torres / World Bank. Further permission required for reuse. Cover design: Erick Valdelomar / Insignia | ng iii Table of Contents Foreword v Acknowledments vi Authors vii Acronyms viii Executive Summary x Chapter 1: The Greater Metropolitan Area as the driving force behind Costa Rica's growth and urbanization 1 Introduction I. The GAM is Costa Rica’s Economic and Population Hub 1 II. Costa Rica's Economic Activity is Concentrated in a Few Cantons within the GAM 11 III. Territorial Inequality Rises, Poverty Stagnates, and Segregation Intensifies in the GAM 17 IV. Additional Challenges Faced by the GAM: Water, Violence, and COVID-19 25 References 28 Chapter 2: A Territorial Approach to the South Corridor 30 Introduction 30 I. Population Growth in the South Corridor Exceeds the National and GAM Average Rates 32 II. The Local Economy of the South Corridor 36 III. High Incidence of Poverty and Unmet Basic Needs in the South Corridor 41 IV. Weak Planning, Underinvestment in Infrastructure, and Concentration of Social Housing are the Main Challenges in the South Corridor 46 References 51 Chapter 3: Connecting the South Corridor 52 Introduction 52 I. Challenges and Barriers to South Corridor Connectivity 54 II. The Lack of Connectivity in the South Corridor Undermines the Region's Competitiveness, Quality of Life, and Environmental Conditions 70 III. Rebalancing Metropolitan Area Development and Improving the South Corridor's Connectivity 82 References 91 Chapter 4: Institutions, Capacities, and Financing in the South Corridor 94 Introduction 94 I. Municipalities in Costa Rica are responsible for key urban infrastructure services 95 II. Challenges of cantonal planning and land use in the South Corridor 101 III. The South Corridor faces significant challenges in adequate financial management 108 Recommendations 115 References 118 iv Spotlight: Circular Economy and Solid Waste Management in Costa Rica 119 References 129 Annexes 132 Annex 1: The institutional approach to climate change in Costa Rica 132 Annex 2: Results of the Econometric Analysis of the Spatial Distribution of COVID-19 136 Annex 3: Plans and regulations regarding the decarbonization of transportation. 138 Annex 4: Existing land-use planning institutions, competencies, and instruments in Costa Rica 140 Annex 5: Municipal revenues have different sources and applications 144 Annex 6. Datasheet by South Corridor Municipality 146 v Foreword C osta Rica is the most urbanized country Our country, and particularly the GAM, must in Central America: over the past 60 lead a paradigm shift to improve municipal man- years, the country’s urban population agement and address the needs of the most vul- more than doubled from 34 to 80 percent today. nerable households. This is a priority in our However, this rapid urbanization took place National Development and Public Investment largely unplanned, leading to the uncontrolled Plan 2023-2026. It is necessary to design and expansion of our cities in ways that undermined implement planning tools that guide territorial living conditions and sustainability. The lack of development with a long-term vision, and to updated regional and local land use plans to guide expedite the processes for updating regional and urban growth led to rapid land consumption, regulatory plans. Additionally, we must respond severe housing deficits, the occupation of unsafe to the housing deficit in a sustainable and inclu- areas, limited access to services in some areas, traf- sive manner, including through a land use policy fic congestion, insufficient quantity and quality of that brings homes closer to consolidated urban public spaces, and insecurity, among others. centers. It is necessary to shift towards an active and sustainable mobility model that includes an The Greater Metropolitan Area of Costa Rica efficient public transportation system and pro- (GAM) is the clearest reflection of the urban cri- motes the reduction of private car dependence. sis we are experiencing. This region concentrates Inter-institutional coordination, participation of Costa Rica’s economic activity and more than the private sector, and diversification of financial half of its population. The land area comprising resources will be fundamental to implementing the GAM tripled between 1979 and 2021, and these and other policies that improve the quality its peripheral development is marked by waves of life of Costa Rican citizens. of informal land occupation. Despite leading the region in terms of GDP, access to employ- The Urbanization Review of the South Corridor, ment, and human development indices, the GAM “Connecting the Greater Metropolitan Area of exhibits significant territorial inequalities, as well Costa Rica,“ is an important effort to increase as other challenges derived from its accelerated our understanding of the main issues of housing, growth and unplanned urban expansion. mobility, planning, and municipal finance in the GAM and represents a huge opportunity to inform The cantons of the South Corridor (Desampa- our public policies in order to achieve sustainable rados, Aserrí, and Alajuelita) are suffering the and inclusive urban development. I invite you consequences of the lack of regional and local to read and analyze it to jointly promote better planning and management. These cantons con- territorial and urban development in Costa Rica.” centrate a large number of informal settlements and exhibit the highest levels of poverty and households with unmet basic needs in the GAM. Jéssica Martínez Porras, The scarcity of employment opportunities forces Minister of Housing and Human part of the population to travel long distances for Settlement, and President of the their daily livelihoods, impacting their quality of National Institute of Housing life and causing serious problems of mobility and and Urbanism (Instituto Nacional de low productivity. Vivienda y Urbanismo, INVU) vi Acknowledgements “Connecting the Greater Metropolitan Area of Costa The team also benefited greatly from contributions Rica”, the Urbanization Review of the South Corridor, of colleagues working in Costa Rica across sectors: was prepared by a team led by Diana Cristina Tello Li Qu (Senior Transport Specialist); Ana I. Aguilera Medina (Urban Specialist) and Carina Lakovits (Social Development Specialist); and Maria Elena (Urban Specialist). This report was supported by Garcia Mora (Senior Social Development Specialist). the Sustainable Urban and Regional Development program (SURGE), a World Bank Umbrella Multi- The team also recognizes the support of the Country Donor Trust Fund financed by the Swiss State Director for Central America and the Dominican Secretariat for Economic Affairs (SECO). Republic, Michel Kerf; the Sector Leader for Central America, David Olivier Treguer; former Sector The team consisted of Eduardo Perez Molina (Urban Leader for Central America, Eric R. Lancelot (Lead and Housing Consultant); Alonso Brenes Torres Transport Specialist); the Country Manager for (Disaster Risk Management Consultant); Leonardo Costa Rica and El Salvador, Carine Clert; the Senior Sanchez Hernandez (Urban and Housing Consultant); Operations Officer for Costa Rica, Luis Enrique Oscar Edmundo Diaz (Urban and Transport Gutierrez Izquierdo; and the External Relations (ECR) Consultant); Bernadette Gordyn (Urban and Housing team in Costa Rica, led by Cynthia Flores Mora. The Consultant); Pol Nadal Cros (Urban Consultant); cover photo was taken by Alonso Brenes Torres. William Dillinger (Municipal Finance Consultant); The report’s design is credited to Erick Valdelomar / Rosario Vilaboa (Local Government Capacity Insignia | ng. Thanks goes to Maria Camila Quintero Consultant). Claudia Patricia Pacheco Florez (Senior Garzon for help with the translation. Final revisions Program Assistant) provided overall administrative and editing were done by Bernadette Gordyn and Pol assistance. The report was prepared under the Nadal Cros. overall guidance of David Sislen (Practice Manager). The policy discussion in this report has benefited The team is grateful for peer review inputs from from discussions during 2020-2022, with central and Olivia D’aoust (Urban Economist); Marcel Ionescu- local government officials and key actors, including Heroiu (Senior Urban Development Specialist); and representatives from the Ministry of Housing; Yondela Tembakazi Silimela (Senior Urban Specialist); Ministry of Planning and Political Economy; Ministry Nandya Thalyta Yuwono (Senior Urban Specialist); of Public Works and Transportation; Ministry of Abel Lopez Dodero (Senior Transport Specialist); and Environment and Energy; and the local governments Harsh Goyal (Urban Development Specialist). The of Alajuelita, Aserri, and Desamparados. team is thankful for the inputs from Haris Sanahuja (Senior Disaster Risk Management Specialist); Mirtha Liliana Escobar (Disaster Risk Management Specialist); Horacio Terraza (Lead Urban Specialist); Abigail C. Baca (Senior Disaster Risk Management Specialist); Luis Rolando Duran Vargas (Senior Disaster Risk Management Specialist); and Felipe Montoya Pino (Urban Specialist). vii Authors Alonso Brenes Torres is a Geographer and Eduardo Perez Molina is a Professor in the Specialist in Territorial Development. He has 20 years Department of Transportation Engineering at the of experience in territorial management projects in School of Civil Engineering of the University of Latin America and the Caribbean, Africa, and Asia. Costa Rica. He is also a researcher at the university’s Sustainable Urban Development Research Program Bernadette Gordyn is an Architect, Urban (ProDUS), where he develops quantitative models Planner, and Professor of Urban Planning at the of real estate markets and urban sprawl and their University of Buenos Aires. She is a consultant for relationship to natural systems. the World Bank’s Urban Development portfolios in Argentina, Costa Rica, and Panama. Prior to joining Oscar Edmundo Diaz has 25 years of experience the Bank, she worked as an urban planner for in Urban Transport, Road Safety, and Urban UN-Habitat in Mexico. Planning. He is internationally recognized for leading the planning and implementation of Carina Lakovits is an Urban Development urban transportation projects in the Americas, Specialist at the World Bank, with a focus on Africa, and Asia, working with public, private, and planning, inclusive urban design and housing in nongovernmental stakeholders. Latin America. She has also worked for the Austrian Ministry of Finance on international development Pol Nadal Cros is a Consultant in Urban issues and served as a representative of the Austrian Development at the World Bank, with a focus government to the Board of Executive Directors of on urban planning and resilience, disaster risk the InterAmerican Development Bank. management, climate change adaptation and mitigation in Latin America and the Caribbean and Carolina Rodríguez Esquivel is an Environmental the Middle East and North Africa. He is an Architect, Lawyer specializing in environmental management MBA, and Master in Smart Cities. for private and public sector organizations. She has extensive experience designing new products and Rosario Vilaboa is an anthropologist and Specialist communication strategies for raising awareness of in Urban Environmental Management. She is also environmental issues. responsible for training at the Institute of Municipal Training and Local Development of the Universidad Diana Tello Medina is an Urban Development Estatal a Distancia de Costa Rica (State University of Specialist at the World Bank. Her work has Distance Education, UNED). focused on territorial development, local economic development, urban resilience, competitive William Dillinger is a Specialist in Municipal cities, housing, and municipal finance. Diana has Finance. He has worked with the World Bank for experience in Africa, Latin America, Middle East and more than 40 years, supporting municipal North Africa, and South Asia. She has also worked finance projects in Europe and Central Asia, Latin in financial markets in New York City and Monterrey, America, Africa, and South Asia. Mexico. She has a master’s degree in Local Economic Development from the London School of Economics. viii Acronyms AMSJ San José Metropolitan Area (Área Metropolitana de San José) ARESEP Regulatory Authority for Public Services BANHVI Banco Hipotecario de la Vivienda BRT Bus Rapid Transit BSS Bike Sharing System CABEI Central American Bank for Economic Integration CAF Development Bank of Latin America CCCI Cantonal Institutional Coordination Council CDI Centralidades Densas Integrales (Integrated and Dense Centralities) CGR Comptroller General of the Republic CNE Comisión Nacional de Emergencia (National Commission for Risk Prevention and Emergency Attention) CONAPDIS National Council for Persons with Disabilities COSEVI Costa Rica Road Safety Council CRC Regional Coordination Council CTP Public Transport Council EBAIS Equipos Básico de Atención en Salud (Comprehensive Multidisciplinary Primary Health Care Teams) ENAHO Encuesta Nacional de Hogares EPR Extended Producer Responsibility ESPH Heredia Public Utilities Company (Empresa de Servicios Públicos de Heredia) EV Electric Vehicle FEMETRON Metropolitan Federation of Municipalities of San José FOSUVI Housing Subsidy Fund (Fondo de Subsidio para la Vivienda) GAM Gran Area Metropolitana (Greater Metropolitan Area) GDC German Development Cooperation GDP Gross Domestic Product GHG Greenhouse Gas GIZ German Agency for International Cooperation ( Deutsche Gesellschaft für Internationale Zusammenarbeit) GWR Geographically Weighted Regression ICAA/AyA Costa Rican Institute of Aqueducts and Sewerage (Instituto de Acueductos y Alcantarillados) ICT Information and Communications Technology IFAM Municipal Development and Advisory Institute IMN Instituto Meteorológico Nacional (National Weather Service) INAMU National Women's Institute INCOFER Costa Rican Railroad Institute INEC Instituto Nacional de Estadísticas y Censos INVU Instituto Nacional de Vivienda y Urbanismo (National Housing and Urbanism Institute) ISWM Integrated Solid Waste Management MEIC Ministry of Economy, Industry, and Commerce MINAE Ministry of Environment and Energy Ministerio de Ambiente y Energía MIVAH Ministry of Housing and Human Settlements (Ministerio de Vivienda y Asentamientos Humanos) ix MOPT Ministry of Public Works and Transportation MPI Multidimensional Poverty Index MRF Materials Recovery Facility MSP Ministry of Public Security NDC Nationally Determined Contribution OECD Organisation for Economic Co-operation and Development PAAM Fifth Stage Metropolitan Aqueduct Supply Project (Proyecto Abastecimiento para el Acueducto Metropolitano Quinta Etapa) PAGIR Action Plan for Integrated Solid Waste Management PIMUS Plan de Movilidad Urbana Sostenible (Integrated Sustainable Urban Mobility Plan) PNE National Energy Plan PNOT National Land-Use Planning Policy ProDUS Research Program in Sustainable Urban Development PRUGRAM Regional Urban Plan of the Greater Metropolitan Area of Costa Rica (Plan Regional Urbano del Gran Área Metropolitana de Costa Rica) PSA Payment for Environmental Services Program SETENA National Technical Secretariat SINIGIR National Information System for Integrated Management of Wastes SIPP Information System on Plans and Budgets SMEs Small and Medium Enterprises TOD Transit-Oriented Development UBN Unmet Basic Need UCA University of Costa Rica WHO World Health Organization x Executive Summary This urbanization review “Connecting the Greater Metropolitan Area of Costa Rica” focuses on the South Corridor, a lagging (sub)region within Costa Rica’s Greater Metropolitan Area (Gran Area Metropolitana, GAM), and the challenges facing the subregion as a result of rapid and unplanned urbanization. The aim is to provide a framework for thinking about possible solutions to these challenges, with a view to improving the living conditions of its residents, connecting them to opportunities in the capital city, and addressing barriers to achieving sustainable development. As the analysis focuses on the different dimensions that constitute processes of rapid urbanization and how to manage them, the findings may be relevant for other urban centers and municipalities that may face a similar set of challenges as the South Corridor does. CONTEXT Costa Rica is a Latin American success story. Costa Rica’s economic prosperity is concentrat- As the second most prosperous country in Central ed in the GAM, where more than half the coun- America and a member of the Organisation for try’s population (3.1 out of 5.2 million people) The GAM as the Economic Co-operation and Development now resides (see Figure 1). The region comprises driving force (OECD), it enjoys high standards of living, grow- 31 cantons and 4 metropolitan areas—San José, behind the ing economic activity, stable democratic institu- Alajuela, Cartago, and Heredia. The GAM is the country’s growth tions, and income levels comparable to Uruguay, country’s political and administrative capital and and urbanization Chile, and Eastern European Union countries. the center of its economic activity: the region Moreover, Costa Rica is a global leader in its accounts for 73 percent of national production, response to climate change and environmental 80 percent of wholesale and retail trade, and 73 degradation, particularly in biodiversity conserva- percent of manufacturing production. tion and the reversal of deforestation. Despite its economic power, the GAM has Notwithstanding its many achievements, Costa concentrations of poverty and segregation. 49 Rica faces challenges in terms of territorial percent of the region’s economic activity is gener- divides. Territorial inequality in the country is a ated by only two of its municipalities—San José mounting concern. Poverty rates have remained and Alajuela. Other districts and residential areas stagnant for two decades, even as the income of in the peripheries of the GAM, including the some households increased steadily. The growing South Corridor, are unplanned, mono-functional inequality in the country is reflected in spatial areas, characterized by severe deficits in jobs, infra- disparities—between urban and rural cantons and structure, and services, which effectively shuts the between and within urban areas, where pockets of population out of economic opportunities and the poverty persist in some of the most economically high standard of living afforded by the capital city. dynamic parts of the country. xi FIGURE 1. The GAM concentrates the economic FIGURE 2. The South Corridor is a subregion in the activity and the population of Costa Rica south of the GAM Alajuela Heredia Alajuelita San José Desamparados Aserrí Cartago Source: National System for Territorial Information (https://www.snitcr.go.cr/) and INVU 1983. The South Corridor is an urban subregion to The Urbanization Review focuses on a set of the south of the capital city of San José which, barriers to achieving economic and social inte- despite its territorial proximity to the country’s gration of the South Corridor with the rest of The South Corridor economic center, largely failed to catch up. the GAM, and proposes a set of recommenda- is the GAM’s The South Corridor comprises the municipalities tions to address them. The principal challenges lagging region of Desamparados, Alajuelita, and Aserrí. They identified in the region relate to: informal and are among the poorest and most unequal in the inadequate housing; the lack of public transport GAM, with a higher proportion of households and integrated mobility systems; and unclear roles with unmet basic needs, lower education attain- and responsibilities and limited municipal capaci- ment, and lower primary health care coverage ties and resources to manage urban growth. than the rest of the region. The population of the South Corridor, about 14 percent of the total Informal and inadequate housing population of the GAM, is heavily dependent on neighboring municipalities, particularly San José, The GAM faces a significant housing prob- for their daily needs and livelihoods. lem, resulting from a combination of factors including (a) the lack of affordability of housing Much of the difficulty plaguing the South considering the payment capacity of low-income Corridor stems from its history of unplanned families; (b) limited and concentrated supply of and informal urbanization. Rapid population social housing in terms of location and types of growth in the South Corridor was not accom- housing; and (c) a reduction in the number of panied by public investment in infrastructure housing subsidies allocated in the region. As a and services. For the past 50 years, the South result, the poorest population segment tends to Corridor’s population grew much more rapidly rely on informal housing, and settlements located than that of the GAM at large. Though the in risky areas persist in the region. economic downturn in the 1980s slowed urban growth throughout the country, large informal The scale and concentration of social hous- settlements emerged in the South Corridor and ing in the South Corridor have contributed to led to even more accelerated population growth. high levels of social segregation, poverty and The extent of the displacement and squatting in inequality. Although it is important to note the South Corridor was so significant that the that informality had been reduced due to the sig- country’s social housing system was engineered nificant investments of the social housing program on its heels. over the years, some observers suggest that the xii concentration of social housing in the region, has gration of either routes or fares in the GAM. Bus contributed to social segregation and reinforced and train stops are scattered and disconnected, the conditions of poverty of its beneficiaries. making it difficult to transfer between bus and Today, a large part of the social housing stock built rail lines. Further, each transfer to a new service in the South Corridor is between two and three involves another fare. The average travel time by decades old and is in various states of deteriora- bus is 70 percent longer than the travel time by tion. car, primarily due to transfers and wait times. Many low-income homes and settlements in The lack of efficient public transport penalizes the South Corridor are exposed to natural haz- those who rely on the system and perpetuates ards and climate risks. Local authorities lack the inequality. As this report demonstrates, approxi- technical capacity and financial resources, land- mately 33 percent of the GAM population lacks use regulations, and enforcement procedures to access to public transport within 10 walking manage processes of rapid urban expansion. As a minutes. The lack of access to public transport result, much of the land occupation, unregulated is particularly troubling given the lack of ame- construction, and unplanned development in the nities, jobs, and services in municipalities like South Corridor is still taking place in high-risk those of the South Corridor, and the reliance of or protected areas, putting residents at increased the low-income population on public transporta- risk from flooding, landslides, hurricanes, and tion options or walking as their only options for other natural and climate-related hazards. The mobility. South Corridor has some of the most active landslide areas in the country; the municipality In the absence of efficient public transport, of Desamparados has the highest recurrence of the country’s private vehicle-based transporta- flood events in the GAM; and Alajuelita has a tion system has had an impact on emissions, significant concentration of informal settlements air pollution, and health that cannot be over- in areas at high risk of disasters. stated. Over the past forty years, the number of cars on the road increased almost ten times, or 6 Lack of public transport percent a year, compared to a population growth and integrated mobility systems of only 2 percent during the same period. From 2000 to 2014, Costa Rica generated the largest The dispersed and sprawling urbanization of CO2 emissions per capita from transportation in the GAM, which tripled in size between 1979 Latin America, surpassing the much larger and and 2021, created the need for effective trans- more populous countries of Brazil, Argentina, port infrastructure, which neither the govern- and Mexico. Levels of harmful air pollutants and ment nor the municipalities have been able to suspended particulates in the GAM are above meet. In the South Corridor, which accounts the limits recommended by the World Health for about 14 percent of the GAM’s population Organization (WHO), and substantially higher but only 7.4 percent of its employment, residents than in comparable cities in the region. One of undertake lengthy daily commutes to and from the main causes of poor air quality in Costa Rica their jobs. An analysis of commuting patterns is vehicle congestion and an outdated vehicle and reveals that travel flows from outlying areas to and public transportation fleet. Nationally, annual from San José lead to major congestion along the health care costs due to air pollution are estimated access roads to the central district. at US$280 million. Although Costa Rica has set ambitious targets to decarbonize the transporta- Public transport options are limited, costly, tion sector, the implementation of this reform and time consuming. Compared to more popu- program is lagging. lated Latin American cities, the GAM has a low and declining modal share of public transport. The lack of coordination between the entities Public transportation was used by 70 percent in charge of planning, regulating, and manag- of the population in the 1990s, but only by 53 ing public transport, road projects, and active percent in 2007, the result of lack of investment, mobility, makes it difficult to advance in the which undermined the quality and coverage of the transformation of the transport sector. Public public transport system. Today, different transport transport is the responsibility of the national services are operated independently and in government, while each canton is in charge of competition with each other, and there is no inte- pedestrian and bicycle infrastructure. There is no xiii centralization of planning, regulation, operation, municipal finances or allow municipalities to pur- and definition of public transport fares and in sue longer-term development priorities. the implementation of infrastructure and policies that promote active mobility. Moreover, decisions Most municipalities in the country lack a regu- related to urban transport are too often made latory land-use plan (Plan Regulador), which independent of considerations related to urban functions as the main instrument for local development and urban growth trends. land-use planning. The preparation of a regula- tory land-use plan implies significant investments Limited municipal capacities and of financial and technical resources, but these resources to manage urban growth resources are not available in all municipalities. As a result, more than half the municipalities in the The regulatory framework for urban and land- country lack a land-use plan, and half of the exist- use planning is complex and involves numer- ing plans are either outdated or incomplete. In the ous actors at the national, regional, and local absence of a land-use plan, a municipality derives levels. The roles and responsibilities of the differ- its urban regulations from generic national regu- ent agencies are ill-defined, making coordination lations that can be applied at the local level but cumbersome and costly. For example, the strategic tend to lack the specificity and forward-looking development vision for the country and mandates vision for territorial development of a dedicated for matters such as environmental impact, conser- regulatory land-use plan. In the South Corridor, vation, water management, and solid waste man- Aserri and Alajuelita lack a regulatory land-use agement are established at the national level. At plan, though one is in preparation in Alajuelita the regional level, the Greater Metropolitan Area (as of May 2023). The update of the Regulatory Plan 2013–2030 (or GAM Plan) details criteria Plan of Desamparados is advanced. Nevertheless, for the development specific to the region. And our analysis finds that in 2020 alone, about 5,000 at the local level, municipalities rely on regulatory m2 of construction in the South Corridor took land-use plans (Plan Regulador) as the primary place without building permits, including, most instrument for management of their territory, prominently, in Desamparados including the development of infrastructure for fee-based services, such as water and solid waste RECOMMENDATIONS management, which could provide the municipal- ity with a reliable income stream. Based on the analysis of development patterns in the region, and the challenges and opportunities The municipalities in the South Corridor do for growth in the South Corridor, this review not have adequate resources to carry out the advocates for the following actions, with a par- functions of land-use planning, solid waste ticular focus on the municipalities of the South management, and other aspects of self-gover- Corridor: nance that would support equitable and sus- tainable development of the region and put it Reverse the current situation of on a par with the rest of the GAM. Alajuelita, socioeconomic segregation in the Aserri, and Desamparados are the poorest munici- South Corridor palities in the GAM, based on per capita revenue. They derive their income from property taxes • Increase access to affordable housing in the (15–20 percent), business licenses/operating per- region through one or more of the following mits (15–30 percent), solid waste collection fees approaches: (a) integrate social housing into (20–25 percent), and capital transfers from the different types of neighborhoods; (b) finan- central government (10–30 percent). However, ce integrated interventions in informal settle- the tax rates are low, tax evasion is high because ments to improve housing, basic infrastructure of high levels of informality, and the country lacks and foster local economic development; (c) an effective revenue-sharing arrangement between better integrate housing programs with urban the central and local governments. Capital trans- development priorities, and include affordable fers for community development, sports facilities, housing in urban renewal and Transit-Oriented and minor road works are small, highly volatile Development (TOD) projects; (d) introduce from year to year, and dependent on congressional new and more diverse housing finance options, approval. Lacking predictability, the capital trans- including rental options, for low-income fami- fer system does not contribute to more sustainable lies; and (c) limit real estate speculation. xiv • Improve access to basic services. The muni- • Improvements in public transport should cipalities of the South Corridor are under- include gender considerations. Women’s served in terms of access to basic health care mobility needs should be addressed, such as and education facilities. Comprehensive security concerns and affordability considering Multidisciplinary Primary Health Care Teams that women make more, and more interrupted, (Equipos Básico de Atención en Salud,EBAIS) daily trips than men. In the case of active mobi- need to be established in Alajuelita and lity, women should be able to ride a bicycle and Desamparados. Similarly, and together with walk safely, and this means that infrastructure the Public Education Ministry, improvements should respond to their needs. must be made to public education facilities, along with increased diversity within the edu- • Promote institutional and regulatory cational service (language programs and tech- reforms for more efficient management of nical training), to increase residents’ capacity to mobility. The reform process could start with enter the South Corridor’s labor market. a roundtable of the agencies in charge of plan- ning, managing, and regulating public trans- Improve mobility and connectivity portation, with the goal of streamlining coor- dination and decision making. Progress could • Advance implementation of regional mobility then be made toward improving legal certainty plans. Identify potential areas for investment for the private sector operators, technology to advance in the implementation of regional providers, financial and insurance institutions, mobility plans. Numerous regional plans, inclu- and rolling stock providers, with respect to the ding the GAM Plan 2013–2030, 2008 Regional investments required to improve transportation Urban Plan of the Greater Metropolitan Area infrastructure and services. To improve the of Costa Rica (PRUGRAM), and the Bus bankability of future investments in the sector, Sectorization Project (Plan de Sectorización), the national development bank and financial lay out a vision for the region that is highly authorities will need to develop financial pro- connected, prioritizes mass transit, and leve- ducts that will facilitate the mobilization of rages mobility investments for urban renewal. private capital. This vision has yet to be realized. Potential areas for investment in the South Corridor • Consider extending the duration of public to spur transit-oriented development (TOD), transportation operational licenses and improve densification, and increase economic updating the methodology used to calculate opportunity include Alajuelita Central Park the operator’s remuneration, with the goal of and Desamparados Park. attracting new players to increase competition, attracting new private investment, and impro- • Increase and improve transportation servi- ving service provision. Implementation of the ces between the South Corridor and down- Plan de Sectorización will also give security to town San José. The reliance of the residents private investors. Public transport in the GAM of the South Corridor and other peripheral can benefit from public-private partnership municipalities on San José for their daily needs structures that have successfully been applied and livelihoods calls for an improvement of in other sectors. the transportation infrastructure linking San José with peripheral regions. This could include • Implement a mass transit system with physi- the formation of bus rapid transit corridors to cal and fare integration. This requires a public connect the South Corridor to San José and the transportation demand study in the GAM, with introduction of subsidies on outlying routes, as data disaggregated by gender and age and prio- well as express services to locations where jobs ritizing the South Corridor and other under- are concentrated, such as industrial areas. The served municipalities. The urban environment improvement of the public transport network surrounding transport infrastructure must also will need to balance the affordability of users be improved, including through upgrades to to pay for the service. public spaces, the installation of bus stops and support infrastructure, and infrastructure deve- lopment to encourage modal shifting. xv Strengthen municipal governance, • Carry out regional studies on recurring finance, and planning capacities floods and landslides to inform municipal regulations and to reduce exposure to these • Review and update relevant municipal regu- events in all GAM districts. Even though lations. In the South Corridor municipalities, emergency response to extreme events is well particularly in Alajuelita and Aserri, all regu- organized and coordinates national-level ins- latory land-use plans and sector-specific regula- titutions with municipalities and community- tions need updating. These include district and level actors, the systematization of disaster-rela- municipal development plans, annual operatio- ted information is poor. There are numerous nal plans, and road conservation plans. case studies but few systematic analyses, inclu- ding on the extent and magnitude of past • Improve the efficiency of the approval pro- events. Relevant studies and analyses could be cess for regulatory land-use plans. The pro- carried out and coordinated by the National cesses required to create or modify municipal Disaster Risk Management System of Costa regulations embedded in the land-use plans Rica, which facilitates cooperation among (zoning, subdivision and urbanization, official municipalities, universities, and central gover- map, and urban renewal and construction) must nment institutions. be approved by two national-level institutions. These approval processes are lengthy and focus Improve municipal finances on defining the studies needed to justify the regulation, instead of on the regulation itself. • Improve municipal finances to provide better Simplifying the approval procedures would local services and infrastructure. Four measures make it easier for municipalities to adopt and are suggested to improve municipal finances: (a) update regulatory land-use plans. increase business license taxes and service fees; (b) improve the collection and management • Metropolitan governance in the GAM could of local taxes and tariffs; (c) improve the effi- be improved by strengthening intermuni- ciency of public expenditure; and (d) introduce cipal associations. Many urban management an effective and equitable revenue-sharing and challenges are of regional nature, and coordi- capital transfer system between the central nating regulatory practices and urban develop- government and the municipalities. ment objectives could help municipalities with interdependencies in the areas of jobs, housing, or basic services. xvi Policy Matrix The following table summarizes the main challenges identified in the Urbanization Review and their corresponding proposed priority actions. Binding constraints Priority actions Informal and inadequate housing. A combination of factors contributes to the (a) integrate social housing into different types of neighborhoods; (b) finance region’s housing problems including (a) lack integrated interventions in informal settlements to improve housing, basic infrastructure of affordability of housing considering the and foster local economic development; (c) better integrate housing programs with payment capacity of low-income families; urban development priorities, and include affordable housing in urban renewal and (b) limited and concentrated supply of social Transit-Oriented Development (TOD) projects; (d) introduce new and more diverse housing in terms of location and types of housing finance options, including rental options, for low-income families; and (c) limit housing; and (c) a reduction in the number of real estate speculation aimed at building new units far from job opportunities. housing subsidies allocated in the region. The scale and concentration of social housing Improve access to basic services. Comprehensive Multidisciplinary Primary Healthcare has contributed to the high levels of social Teams ( Equipos Básico de Atención en Salud,EBAIS) need to be established in Alajuelita segregation, poverty, and inequality in the and Desamparados. Similarly, and together with the Public Education Ministry, South Corridor (SC). improvements must be made to public education facilities, along with increased diversity within the educational service (language programs and technical training), to Municipalities in the South Corridor experience increase residents’ capacity to enter the South Corridor’s labor market. higher proportion of households with unmet basic needs and lower education attainment. Lack of public transport and integrated mobility systems. Lack of investment in public transport options, Increase and improve transportation infrastructure and services between the South which undermines the quality and coverage of Corridor (SC) and downtown San José. This could include the formation of bus rapid the system. transit corridors to connect the SC to San José and the introduction of subsidies on outlying routes, as well as express services to locations where jobs are concentrated, such as industrial areas. The improvement of the public transport network will need to balance the affordability of users to pay for the service. Improvements in public transport should include gender considerations. Women’s mobility needs should be addressed, such as security concerns and affordability considering that women make more, and more interrupted, daily trips than men. Consider extending the duration of public transportation operational licenses and updating the methodology used to calculate the operator’s remuneration, with the goal of attracting new players to increase competition, attracting new private investment, and improving service provision. Implementation of the Plan de Sectorización will also give security to private investors. Public transport in the GAM can benefit from public- private partnership structures that have successfully been applied in other sectors. Continues > xvii Policy Matrix (continued) Binding constraints Priority actions There is no integration of either routes or fares Implement a physically and fare-integrated mass transit system. This requires a in the GAM - different transport services are public transportation demand study in the GAM, with data disaggregated by gender operated independently and in competition and age and prioritizing the SC and other underserved municipalities. The urban with each other, bus and train stops are environment surrounding transport infrastructure must also be improved, including scattered and disconnected, making it difficult upgrades to public spaces, the installation of bus stops and support infrastructure, and to transfer between bus and rail lines, plus infrastructure development to encourage modal shifting. each transfer to a new service involves another fare. Advance implementation of regional mobility plans such as the GAM Plan 2013– 2030, 2008 Regional Urban Plan of the Greater Metropolitan Area of Costa Rica (PRUGRAM), and the Bus Sectorization Project ( Plan de Sectorización), lay out a vision for the region that is highly connected, prioritizes mass transit, and leverages mobility investments for urban renewal. Consider Alajuelita Central Park and Desamparados Park as potential areas for investment in the South Corridor to spur transit-oriented development (TOD), improve densification, and increase economic opportunity. The implementation of the reform to The National Decarbonization Plan (PND) 2018-2050 can kick-start its implementation decarbonize the transportation sector is with the below actions: lagging, while an outdated vehicle and public (i) replacing obsolete public transit vehicle fleets with low-emission vehicles; (ii) transportation fleet prevails, having an impact promoting active mobility as an integral part of city mobility could reduce emissions on emissions, air pollution, and health. and vehicular congestion while revitalizing downtown areas; (iii) developing a GAM Active Mobility Master Plan that identifies priority corridors or areas for metro-wide interventions and develop traffic and use patterns to preclude partial interventions; (iv) implementing a GAM-wide Bike Sharing System (BSS) that increases the public transport system's ridership, favor modal shift, and lessen vehicular congestion by replacing motorized trips. Lack of coordination between entities in Promote institutional and regulatory reforms for more efficient management of charge of planning, regulating, and managing mobility. The reform process could start with a roundtable of the agencies in charge public transport, road projects, and active of planning, managing, and regulating public transportation, with the goal of mobility. streamlining coordination and decision making. Progress could then be made toward improving legal certainty for the private sector operators, technology providers, Decisions related to urban transport are often financial and insurance institutions, and rolling stock providers, with respect to the made independent of considerations related investments required to improve transportation infrastructure and services. To improve to urban development. the bankability of future investments in the sector, the national development bank and financial authorities will need to develop financial products that will facilitate the mobilization of private capital. Unclear roles and responsibilities and low municipal capacities and resources to manage urban growth. The regulatory framework for urban and land- The national regulatory framework concerning land-use planning and urban use planning is complex and involves numerous management needs to be updated. It is urgent to adjust the regulatory framework that actors at the national, regional, and local governs the powers and resources available to local governments, especially those levels. related to urban management and planning. The urban planning law is over sixty years old. Although adjustments have been made, it is imperative to define with greater The roles and responsibilities of the different clarity the relationship between national, regional, and local planning. agencies are ill-defined, making coordination cumbersome and costly. Review and update relevant municipal regulations. In the South Corridor municipalities, particularly in Alajuelita and Aserri, all regulatory land-use plans and sector-specific Regulatory and planning instruments at the regulations need updating. These include district and municipal development plans, national, regional, and local levels are not annual operational plans, and road conservation plans. always aligned. Continues > xviii Policy Matrix (continued) Binding constraints Priority actions Municipalities in the South Corridor do not Improve municipal finances to provide better local services and infrastructure, by: have adequate resources to carry out local (a) increasing business license taxes and service fees; (b) improving the collection functions. and management of local taxes and tariffs; (c) improving the efficiency of public expenditure; and (d) introducing an effective and equitable revenue-sharing and capital Tax rates are low, tax evasion is high transfer system between the Central Government and the municipalities. because of high levels of informality, and the country lacks an effective revenue-sharing arrangement between the central and local governments. Capital transfers for community development, sports facilities, and minor road works are small, highly volatile from year to year, and dependent on congressional approval. Local authorities lack technical resources to Improve the efficiency of the approval process for regulatory land-use plans. Approval develop their regulatory land-use plans ( Plan processes are lengthy and focus on defining the studies needed to justify the Regulador) and other municipal instruments regulation, instead of on the regulation itself. Simplifying the approval procedures to support urban development. would make it easier for municipalities to adopt and update regulatory land-use plans. Metropolitan governance in the GAM could be improved by strengthening intermunicipal associations. The systematization of disaster-related Carry out regional studies on recurring floods and landslides to inform municipal information to inform territorial planning regulations and to reduce exposure to these events in all GAM districts. Relevant is poor, and municipalities don’t have the studies and analyses could be carried out and coordinated by the National Disaster Risk financial or technical resources to develop it Management System of Costa Rica, which facilitates cooperation among municipalities, themselves. universities, and central government institutions. xix Summary of Chapters The study is organized as follows: CHAPTER 1 CHAPTER 2 The Greater Metropolitan Area A territorial approach as an engine for growth and to the South Corridor. urbanization in Costa Rica. This chapter uses statistical and geographic This chapter describes the processes and analysis, supported by literature, to describe patterns of urban growth and production in the population and urban growth processes, the GAM, as well as patterns of inequality the local economy, and public investment and poverty and their manifestations in terms needs in the South Corridor. The chapter of housing, exposure to natural hazards, and highlights the historical-geographic context lack of public safety. of the South Corridor and describes the demographic trends in these districts, contrasting them with the entirety of the GAM. CHAPTER 3 CHAPTER 4 Connecting the South Corridor. Institutions, capabilities, and financing in the South Corridor. This chapter presents the main connectivity challenges between the South Corridor This chapter focuses on the institutional, and rest of the GAM and provides capacity, and financing opportunities available recommendations to address them. The to the South Corridor to achieve the kind chapter includes a series of findings based on of urban development consistent with local innovative spatial and movement analyses, and national land-use policies. It includes a built by cross-checking data from Mapbox, brief spotlight on comprehensive solid waste Quadrant, Facebook, mobile phones, censuses, management and the potential for increasing and other information sources. municipal revenue streams by promoting a circular economy model based on improved solid waste management, including the composting of organic waste and the recovery of reusable materials and their reintegration into value chains. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 1 CHAPTER 1 The Greater Metropolitan Area as the driving force behind Costa Rica’s growth and urbanization Authors Eduardo Pérez Molina, Alonso Brenes Torres, and Leonardo Sánchez Hernández Introduction Costa Rica is a Central American upper-middle- Territorial inequality across the GAM and Costa income country characterized by a high degree Rica is a mounting concern, with implications of spatial concentration of its economic activi- for the quality of life of the region's inhabit- ty in the Greater Metropolitan Area (Gran Area ants. Poverty rates in Costa Rica and the GAM Metropolitana, GAM). Before the COVID-19 pan- have remained stagnant for three decades, even as demic, Costa Rica’s gross domestic product (GDP) the income of some households increased steadily. grew above the Latin American and Caribbean1 This has resulted in growing inequality which is average, at an average annual rate of 4.3 percent reflected in territorial divides: between urban and between 1990 and 2019, compared to 2.6 percent rural cantons and between urban areas that con- in Latin America and the Caribbean. Within the centrate the poor and those that concentrate the country, the GAM generates the greatest amount rich. Within the metropolitan area, there are cantons of wealth and is where 76 percent of sales and 66 with significant housing deficits, lack of jobs, and percent of national purchases occur (Jiménez and deficient public services. New residential areas are Guzmán 2022). The central region is also home to marked by rapid and oftentimes unplanned growth, more than 50 percent of the country's population contributing to the creation of mono-functional (INEC 2021). The spatial concentration of economic areas and increasing the need for basic services. activity is replicated within the GAM itself, where This reinforces spatial patterns of segregation and only two cantons, San José and Alajuela, generate inequality. Finally, spatial concentrations of poverty 49 percent of the economic activity of the entire coincide with insecurity and greater exposure to central region (Brenes, Campos and Loaiza 2021). disaster risk in the face of extreme weather events. 1 World Bank Open Data, GDP growth (annual %). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 2 Territorial inequality in the GAM will persist if economic and demographic concentration? And urban expansion is not accompanied by qual- how can lagging regions within the metropolitan ity services and infrastructure that provide area be better connected so that opportunities aris- opportunities for all, in all cantons. When urban ing from this concentrated economic growth can growth patterns are analyzed, it is evident that the be shared? expansion in the periphery of the GAM continues; but the GAM is also experiencing incipient densifi- This chapter describes the GAM’s urban growth cation in some central locations. Growth patterns and economic production patterns, as well as are changing toward in situ densification. However, inequality and poverty (and their manifesta- this densification is not being accompanied by eco- tions in terms of housing), the risk of extreme nomic opportunities nor by improvements in con- events, and insecurity. It contains a descriptive nectivity to ease access to centers of employment review based on statistics and spatial analysis, and basic services. supported by academic literature that articulates the evolution of the different social processes This dynamic compels us to ask: how can one under consideration. The growth patterns study also mitigate the negative externalities stemming from involves satellite land cover mapping. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 3 I. The GAM is Costa Rica’s Economic and Population Hub A. More than half of the country's FIGURE 1. The GAM is located within a tectonic depression in population lives in the GAM the center of the country, covering approximately 3,250 km2 The GAM has most of Costa Rica's population concentrated in a small area of diverse physiog- raphy. Based on the 2011 census, Costa Rica had a population of 4.3 million people, of whom 2.27 million resided in the GAM (about 52 percent). The GAM area is 1,781 km2 (3.5 percent of the national territory), including 425 km2 within the region's growth boundary. That is, they are devel- opable under relevant regulations; the other 1,356 km2 are rural and natural areas bordering the GAM, although much of it has been developed at low densities. Despite its designation, the GAM is not strictly a metropolitan area but a polycentric urban system made up of four metropolitan areas (San José, Alajuela, Cartago, and Heredia). The GAM emerged as a cluster of rural towns and small cities that have been growing in a physio- Source: Sistema Nacional de Información Territorial (https://www.snitcr.go.cr/). graphic context characterized by large variations in relief and other variables (climate, vegetation, or soil fertility). The topography of the region municipalities within these metropolitan areas includes deep canyon rivers and mountains as were able to preserve significant degrees of func- barriers to connectivity between the different tional autonomy. As a result, the region's structure population centers across the region (Pujol 2005b, continues to be, even today, disconnected and see Figure 1). These barriers hindered the forma- poorly integrated (Carvajal and Vargas 1987). tion of a large conurbation and restrained the development of a road system that would link an The GAM is divided politically into 31 cantons urban development integrated with and centered that are either partly or wholly contained with- in San José. Instead, the other three metropolitan in the boundaries of the GAM region. These areas (Alajuela, Heredia, and Cartago) maintained cantons are functionally clustered into the four varying degrees of functional autonomy owing to metropolitan areas of San José, Alajuela, Cartago, their relative isolation. In the same vein, some and Heredia (Figure 1).2 The 1982 Regional Plan 2 Metropolitan areas are analytical designations based on the functioning of the urban system. The metropolitan area of San José includes 14 cantons: San José, Escazú, Desamparados, Aserrí, Mora, Goicoechea, Santa Ana, Alajuelita, Coronado, Tibás, Moravia, Montes de Oca, Curridabat, and La Unión; the metropolitan area of Alajuela, Alajuela itself, Atenas, and Poás; the Cartago metropolitan area, Cartago, Paraíso, Alvarado, Oreamuno, and El Guarco; the metropolitan area of Heredia, Heredia, Barva, Santo Domingo, Santa Bárbara, San Rafael, San Isidro, Belén, Flores, and San Pablo. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 4 (INVU 1983) defined the GAM and established Between 1979 and 2019, the GAM's impervi- a growth boundary aimed at protecting the envi- ous area increased. An analysis of the GAM's ronmental assets of the foothills surrounding the build-up area, as measured by household income GAM (Pérez et al. 2011). Many of the cantons and population increase, shows an expansive in the central GAM are wholly urbanized, while urban growth pattern. The impervious area tripled on the periphery there are still cantons with large between 1979 and 2021, while the population rural areas (Figure 2). It is important to remember grew steadily from 1 million to 2.5 million, and that the creation of the GAM, in 1983, was part real household income was 50 percent higher in of a strategy that involved the creation of regional the 2010s than in the 1990s. This growth pattern regulations for the main urban area of the country helps explain the growth of the built-up area in the and an institutional framework to manage them; region (Figure 4). this institutionality was never cemented, but the regulations, particularly the growth limit, were The rapid expansion of the urban area of the very important in shaping the urban development GAM between 1985 and 1993 was driven by of the GAM. informal occupation, later formalized by the central government; while from the mid-90s, a B. The GAM historically expanded real estate market for formal housing emerged. toward its peripheries Much of the urban growth that occurred in the GAM between 1985 and 1993 was informal, The metropolitan area is characterized by sig- through land seizures that were later formalized by nificant urban sprawl.3 The GAM’s population the government (Valverde and Trejos 1993)—that increased from 1.35 million in 1984 to 2.27 mil- is, during this period, the region was essentially lion in the 2011 census. National GDP per capita configured through social housing built by the rose in real terms by 85 percent between 1985 and state. Starting in the mid-1990s, the real estate 2010, fueling a stronger preference of households market began to generate most of the construction to live in larger areas, accompanied by an increased of buildings, in particular formal housing. dependence on private vehicles. The creation of a relatively high-capacity national and regional FIGURE 2. The 31 cantons of the GAM have different rural / highway system lowered private travel costs, mov- urban concentration ratios ing residents away from consumption centers. The most important urban expansion in the GAM limit past few years has taken place outside of the Urban concentration San José Metropolitan Area (AMSJ). Although Canton boundary the AMSJ has historically been the most impor- tant urban center (Hall 1976), since the 1980s, and especially during the last 20 years, the most important urban expansion occurred in the cities of Heredia and Alajuela (Figure 3). Three reasons can explain this: (a) the availability of affordable land in Heredia and Alajuela for the region's middle class; (b) the development of an economic base of industrial electronics and medical equip- ment manufacturing zones in Belén-Flores,4 South Heredia, and El Coyol, Alajuela; and (c) linked to the above, the creation of new local jobs attract- ing new residents. Cartago's spatial connectiv- ity is constrained by the barrier formed by the Ochomogo mountains. Source: Sistema Nacional de Información Territorial (https://www.snitcr.go.cr/) and National Institute of Housing and Urbanism - INVU 1983. 3 The historical patterns of urban growth in the GAM have been peripheral development along local roads, originally a consequence of the fragmentation of coffee plantations through successive inheritances; see Hall (1976). 4 This area, together with the industrial zone of El Guarco in Cartago, are the only ones in which the development of heavy industry is allowed in the region. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 5 FIGURE 3. Between 1997 and 2021, the conurbation of the cities of Alajuela and Heredia with San José intensified, while the spatial links with Cartago are less pronounced GAM limit Road network Primary Secondary Tertiary Urban splotch 1979 Urban splotch 1997 Urban splotch 2021 Source: Developed by authors, based on Landsat images 5, 7, and 8. FIGURE 4. The GAM’s impervious area rose from 1979 to 2019 3,000,000 35,000.0 3,000,000 140.0 2,500,000 30,000.0 2,500,000 120.0 Population / Household Income Population / Household Income Gross density (inhabitants/ha) 25,000.0 100.0 2,000,000 2,000,000 (real colones of 2020) (real colones of 2020) Waterproofed area 30,000.0 80.0 1,500,000 1,500,000 15,000.0 60.0 1,000,000 1,000,000 10,000.0 40.0 500,000 5,000.0 500,000 20.0 0 0.0 0 0.0 1979 1989 1999 2009 2019 1979 1989 1999 2009 2019 Year Year Urban area Population Median household income Source: Landsat (1979, 1985, 1991, 1997, 2005, 2012, and 2021) and Centro Centroamericano de Población (https://ccp.ucr.ac.cr/). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 6 GAM urban regulations contribute to main- have changed the locational preferences of GAM taining low structural densities.5 Two types residents, now favoring more central locations of GAM-wide regulations fostered low density: (with higher land prices) that are being con- (a) the Regional Plan defined an urban growth structed with greater density (and close to better boundary that allows development in a 42,500 urban amenities and activities) but do not neces- ha area (INVU 1983); this implies that there has sarily lead to greater population density. There is never been a shortage of potentially developable evidence of potential speculative dynamics behind rural land to encourage densification in the more this type of high-rise development—particularly accessible central areas; and (b) building height the price differentials between apartments and regulations in the Regional Plan and almost every individual homes6—explained by consumer pref- regulatory plan in force until 2006 (except for erences for larger (less dense) housing for upper- the canton of San José) were strictly enforced. middle-income residents. Generally speaking, in all cantons with munici- pal regulations, the maximum building height C. The population will continue allowed until 2016 was two stories (Pujol, Pérez, to grow in peripheral areas, and Castillo 2006). highlighting the importance of planning and service provision While over the past 15 years, some GAM can- tons have permitted higher building heights, In the short run, the GAM's population will there is no evidence that this has resulted in continue to grow at a slower rate and concen- significant population density gains—hous- trate in the outskirts of the four metropolitan ing remains unaffordable to many. As seen in areas. The older urbanized central locations are Figure 5, before 2005, more than 95 percent of declining in population as they have exhausted the built-up area was classified as one- or two- their reserves of developable land, precluding them story buildings. Over the past 15 years, the relative from accommodating new growth. The periph- importance of buildings of three stories or higher eral areas, which are more accessible and available increased. Increased levels of congestion appear to for development, are experiencing an increase in FIGURE 5. The GAM has begun to feature taller buildings over the past 15 years 3,000,000 Built-up area based on building permits (m2) 2,000,000 1,000,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 Built-up area in high-rise buildings (three stories or higher) Built-up area in low-rise buildings (one or two stories) Source: INEC 1993–2019. 5 Structural density is the ratio of capital value (that is, construction) to land value; in practice, it is a function of building height; however, note that higher structural densities do not necessarily coincide with higher population densities. 6 Data reported in Pérez and Pujol (2021). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 7 population. Figure 6 shows in red the districts that New residential areas grow fast, and are often will experience the largest depopulation. These are unplanned, creating mono-functional areas, the urban centers of the four metropolitan areas increasing the demand for basic services, and and the cantons neighboring the canton of San causing road congestion. On the fringes of cities, José. The second cluster of districts with modest the construction of low-income housing projects population growth is shown in orange and yellow. and the authorization of middle- and high-income Finally, green shades show the districts that will gated communities are burgeoning (Quesada- experience the greatest population growth; these Román, Villalobos-Portilla, and Campos-Durán are peripheral districts with good accessibility 2021); specifically, the cantons of the South to the national highway system or some districts Corridor (Desamparados, Aserrí, and Alajuelita) with poverty concentrations (for example, Pavas are fundamentally residential areas (Alajuelita and and La Uruca, San José; or San Felipe, Alajuelita). Aserrí in a very high proportion; Desamparados is The population in these poverty pockets tends to a little more diverse), which function as dormitory be relatively young and, above all, characterized cantons (see section III of this chapter on this). by a deficit in housing and housing affordability The rapid population growth, the paucity of urban problems (Pujol, Pérez, and Castillo 2006). Many planning, and the lack of updated regulatory plans of them can be found in the South Corridor in most of the cantons of the GAM (Quesada (the municipalities of Desamparados, Aserri, and 2014) hamper efforts to foster the right mix of Alajuelita). uses; instead, the vast majority of development FIGURE 6. 2010–2050 population projections show that peripheral districts will grow rapidly while central districts will depopulate GAM limit Road network Primary Secondary Tertiary Rivers Projected population change -6,230-0 0-2,501 2,501- 5,001 5,001- 10,001 10,001- 20,000 20,000- 24,007 Source: Centro Centroamericano de Población 2011. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 8 is residential only. This results in a constant need landslides or slope destabilization. At the same for people to commute to meet their day-to-day time, in recent years the National Commission needs, thus creating an excessive dependence on for Risk Prevention and Emergency Attention the different metropolitan centers, particularly (Comision Nacional de Emergencia, CNE) has San José. The resulting saturation and congestion registered an increase in urban floods with annual of the road network in this area and its access recurrence (Fernández et al. 2019). In this regard, roads (Gómez and Cubero 2018) complicates there is no conclusive evidence on the causality of mobility. this increase; however, some experts believe that it may be due to a combination of variation in the The growth of the urbanized area toward the intensity of the rains, together with an increase in peripheries of the GAM, without adequate surface runoff and a saturation of natural channels planning and investment, increases the expo- and sewers with solid waste. The combination of sure of some communities to disaster risk. The these factors may explain floods in the surround- geomorphological conditions of the GAM tend ings of rivers and urban streams.6 to drive the expansion of the urban area in some high-slope sectors or close to riverbeds (Figure GAM-wide risk levels are relatively low; howev- 7). In these areas, the buildings require design er, multi-hazard risk concentrations are highly parameters to reduce their vulnerability; however, correlated with the location of lower-income there is evidence that this is not usually complied households. Although disaster risk is low in the with (Arroyo 2018). Construction in high-slope GAM compared to the rest of the country, there areas, located in the foothills of the mountains are still some population concentrations in high- that surround the GAM, is usually affected by risk areas where building restrictions have not FIGURE 7. Unplanned, underinvested urban expansion toward the GAM's outskirts exacerbates exposure to disaster risks GAM limit Road network Landslides Primary Flood potential Secondary Protected wilderness area Tertiary Waterproof area River Sliding crown Source: CNE. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 9 been enforced in the last 30 years. Most of these FIGURE 8. During the 1970–2019 period, floods population concentrations are located on river- and earthquakes mostly damaged dwellings banks in high-slope areas. These areas show the highest hydrogeological dynamics and the lowest 200 land value. Number of persons/housing impacted The impacts of disasters vary depending on 150 the type of event that generates them—land- slides are the deadliest events, although floods have a greater impact on housing and public 100 infrastructure. As seen in Figure 8, the impacts of disasters depend on the type of event. The deadliest events include landslides, fires, accidents, 50 and explosions; but most housing damage (47 percent) is attributed to flooding. Despite being a highly seismic area, earthquake damage in the 0 Landslides Fire, accidents Floods Earthquakes Others GAM has been limited due to a long-standing or explosions history of seismic-resistant building codes (since Homes destroyed Death toll 1977). In contrast, flooding is an increasing haz- ard; its rising frequency and impact suggest a Source: DesInventar (https://www.desinventar.net/index.html). built-up setting that is becoming increasingly exposed to these recurring events. FIGURE 9. Since 1970, the frequency of disasters has varied Between 1970 and 2019, the GAM was affected in the GAM by 7,513 disasters, including 91 major disasters. DesInventar reports 7,513 disasters across the 31 800 cantons of the GAM (see Figure 9), including 91 events causing housing damage or destruction, 700 deaths, or injuries.7,8 Most disasters were triggered 600 by floods (48 percent), followed by landslides (26 percent) and man-made disasters: fires, accidents, 500 explosions, or leaks (11 percent). 400 Climate-related disasters surged during the 300 21st century in comparison with the previous decades. Since 1970, the frequency of disasters 200 has varied: in the 1970s and 1980s, fires and 100 accidents used to be the most common events; floods and landslides have increased over the past 0 20 years (Figure 9). This rise in the frequency of 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 hydrometeorological events is likely associated with urban growth in risk-prone areas. However, Others Earthquakes Drought Floods the first expansions of informal settlements in Fires, accidents or explosion leaks Volcanic eruptions Landslides the 1980s and 1990s do not seem to have caused an increase in the number of adverse events, even Source: DesInventar (https://www.desinventar.net/index.html). though they occupied areas that were high-slope Note: The figure depicts the changes over time in the number and type of disasters occurring in the areas or adjacent to river courses, usually beyond GAM between 1970 and 2019. 7 https://www.desinventar.net/index.html; epidemics, plagues, collapsed structures, pollution and panic have been excluded from the analysis. 8 In the 1990s, LA RED, a Latin American extreme event risk research group, began to build a conceptual framework and a comparable disaster register for several Latin American countries. This effort has recently been expanded in collaboration with the United Nations Office for Disaster Risk Reduction. The resulting database is DesInventar. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 10 the regional urban growth boundary. This may be basin because the Virilla river basin reservoirs are related to variations in rainfall patterns within the situated at a lower elevation than the metropoli- GAM, although data from the National Weather tan aqueduct and, more importantly, the Virilla Service (Instituto Meteorológico Nacional, IMN) river is heavily polluted due to the GAM's sewage do not provide sufficient evidence. discharge (Calvo and Mora 2007). Second, the GAM aqueducts operate mainly by gravity, which The GAM's vulnerability to extreme dry events implies challenges to supply the mountainous is high. The underlying causes of vulnerability are fringes around the region. And third, particularly related to water supply that fluctuates over time in the northern outskirts of Alajuela and Heredia, and to a growing demand localized in the out- urban development has resulted in the impervi- skirts, at an elevation higher than the city’s aque- ousness of recharge zones refilling the same aqui- duct. Costa Rica has dams only for hydropower fers that supply 46 percent of the region's drinking generation.9 However, the hydropower dam water. In this context, the increasing frequency of approach poses some drawbacks. First, it is neces- extreme dry events would in turn reduce the avail- sary to convey water from the Reventazón river ability of water from aquifers and springs. 9 Since the 1980s, the Costa Rican Institute of Aqueducts and Sewerage (Instituto de Acueductos y Alcantarillados - AyA) has been extracting water from the El Llano reservoir in Orosi (2.1 m3/s), while the Fifth Stage Metropolitan Aqueduct Supply Project (Proyecto Abastecimiento para el Acueducto Metropolitano Quinta Etapa - PAAM) is seeking to extract an additional 2.5 m3/s from the Macho River reservoir. Both are used for hydropower generation purposes. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 11 Costa Rica's Economic Activity II. is Concentrated in a Few Cantons within the GAM A. GAM-wide production is the recent increase in GAM median household concentrated in the San José income (see Figure 12 and the discussion on the Metropolitan Area country's most dynamic economic activities). Within the GAM, most of the production is Except for agricultural output, Costa Rica's concentrated in the AMSJ and, to some extent, economic production is concentrated in the the metropolitan area of Alajuela. Table 1 disag- GAM.10 The region is home to 73 percent of gregates production data by the six cantons that national production, 80 percent of wholesale and have the largest share of total production (which retail trade, and 73 percent of manufacturing pro- is half of the national production). Two cantons, duction. It even accounts for 32 percent of agri- San José and Alajuela, alone account for about 36 cultural production, despite being a largely urban percent of national production and 49 percent of region that favors agglomeration economies of GAM production. This degree of spatial concen- industry and wholesale and retail trade. The past tration of production underscores the importance 15 years have seen these concentration tendencies of quality basic services as well as an efficient grow stronger, as the most dynamic activities have transportation system that allows workers access created jobs for GAM-based highly educated pro- to jobs, something the region currently is lacking fessionals. This concentration of wealth explains (Agüero, Pujol, and Pérez 2021; see also Chapter 3). TABLE 1. National production is concentrated in a few cantons within the GAM Manufacturing Services Wholesale and retail Tourism and Total Canton Agriculture Light Electronics Construction trade hospitality Banking Professional overall San José 60.9 132.7 154.2 2.6 785.8 225.1 845.3 1,405.5 7,349.0 Alajuela 227.2 94.5 120.9 2.8 183.7 154.3 129.4 215.4 2,671.9 Cartago 112.6 130.1 29.0 0.5 87.5 38.2 108.6 67.9 1,176.7 Desamparados 29.9 26.8 41.4 2.6 127.9 37.0 199.9 124.6 1,134.3 Heredia 47.0 98.0 37.5 2.5 106.7 20.4 100.5 120.0 1,049.6 Santa Ana 20.6 10.0 7.4 1.1 202.2 19.2 22.7 177.1 712.8 Rest of GAM 305.5 264.9 185.1 15.3 617.4 455.1 878.4 760.5 6,000.4 Rest of the country 1,717.2 251.0 130.4 201.0 531.5 219.3 270.7 307.3 7,515.7 Source: Central Bank of Costa Rica 2020. Note: The table shows production in US$, millions (2017). 10 Production by canton was obtained from the Central Bank of Costa Rica's regional input-output matrix; see Brenes, Campos, and Loaiza (2021). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 12 The economic and business concentration in shown sustained, albeit modest, growth, except in San José is remarkable not only for its magni- the final year of the series (explained by the eco- tude but also for its diversity. The importance of nomic impact of the COVID-19 pandemic) and San José as the political capital, financial hub, and in wholesale and retail trade, which had declined urban centrality of the main national metropoli- since 2018, possibly due to the lingering financial tan area is remarkable. For example, the canton of crisis affecting the public sector.11 The leading San José produces approximately twice as much activities are manufacturing, wholesale and retail as the other five cantons listed in Table 1 and the trade, real estate activities, and education; all rest of the GAM (22 cantons), as well as more except education are concentrated in the GAM. than four times as much as the rest of the country (51 cantons). While agricultural production in In terms of relative growth, the three most the GAM is concentrated in Alajuela (coffee and dynamic activities in real terms between 2004 vegetables) and Cartago (vegetables); and elec- and 2020 were professional, scientific, and tech- tronics manufacturing in the industrial parks in nical activities, administrative support activities, South Heredia, Belen-Flores, and, particularly, El and information and technology activities. These Coyol in Alajuela (two of three areas in the region activities are not only concentrated in the GAM planned for heavy industry development, which but also benefit medium to highly educated pro- gives them important regulatory advantages and fessionals in the region.12 Professional activities access to infrastructure), San José is still the can- increased 4.5 times, administrative support activi- ton with the highest output of light manufactur- ties 3.8 times, and information and technology ing and electronics nationwide. activities 3.5 times. In contrast, other less skilled labor activities (agriculture, manufacturing indus- When considering Costa Rica's national pro- try, and wholesale and retail trade) have the slow- duction, the most dynamic sectors are clustered est growth: agricultural activities stagnated during in the GAM. Figure 10 shows ten selected sec- this period while industry and wholesale and retail tors that in 2020 accounted for 77.4 percent of trade increased 1.4 and 1.5 times, respectively. national GDP. Overall, the different sectors have FIGURE 10. Professional activities soared in Costa Rica, while agriculture, manufacturing, and wholesale and retail trade grew the slowest 10,000.0 Contibution to GDP of Costa Rica ( in US$ million) 5,000.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Manufacturing Industry Real Estate activities Wholesale and retail trade, and auto and motorcycle shop Education Professional, scientific and technical activities Financial and insurance activities Administrative activities Source: Central Bank of Costa Rica 2020. 11 Since the 1980s, the Costa Rican Institute of Aqueducts and Sewerage (Instituto de Acueductos y Alcantarillados - AyA) has been extracting water from the El Llano reservoir in Orosi (2.1 m3/s), while the Fifth Stage Metropolitan Aqueduct Supply Project (Proyecto Abastecimiento para el Acueducto Metropolitano Quinta Etapa - PAAM) is seeking to extract an additional 2.5 m3/s from the Macho River reservoir. Both are used for hydropower generation purposes. 12 Note that part of the success observed in these activities has to do with the agglomeration economies generated by their GAM-based concentration; this implies, however, that these benefits are not found in other regions of Costa Rica. As discussed later, the income inequality and socioeconomic residential segregation in the GAM also suggest that the benefits derived from this economic growth have been restricted to one part of society. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 13 B. People have to commute residents work in the same canton where they significant distances to access job reside, although there are significant differences opportunities by type of activity. Labor force location patterns replicate these In addition, there is a strong concentration of production concentration levels, albeit to a less- jobs in just a few cantons. In the GAM, 50.1 er degree. The 2011 census reported 1,674,275 percent of jobs are based in the cantons of San José occupied workers, including some 57.7 percent (26.8 percent), Alajuela (10.0 percent), Heredia (965,353 workers) living in the GAM cantons. (7.7 percent), and Cartago (5.6 percent). Twenty- The GAM cantons account for 947,214 jobs, five percent of employment is created in the can- including 907,751 jobs filled by GAM-based resi- tons of Desamparados, Escazú, Montes de Oca, dents: 95.8 percent of the GAM's labor demand is Goicoechea, Santa Ana, Belén, and Curridabat. supplied by GAM residents. The other 25 percent comes from the remaining 20 cantons of the GAM. This explains why 430,000 In the GAM, each of the four metropolitan people travel from one canton to another to work areas functions as a labor market.13 Based on within the GAM. These commutes are mostly the 2011 census, 84.7 percent of those living in directed to the cantons of San José, Alajuela, the AMSJ14 work in any of the cantons of the same Heredia, and Cartago (which are the centers of metropolitan area. This figure is 82.1 percent for their respective metropolitan areas), and to a lesser the Alajuela Metropolitan Area, 93.0 percent for extent to the cantons of Desamparados, Escazú, the Cartago Metropolitan Area, and 67.9 percent Montes de Oca, Goicoechea, Santa Ana, Belén for the Heredia Metropolitan Area. It is also note- and Curridabat (Figure 11).15 worthy to mention that 49.4 percent of GAM FIGURE 11. The largest commuting trips between home and work are toward the canton of San José Legend Working in the same canton 1,376 - 7,672 8,275 - 15,448 16,407 - 27,627 33,588 - 41,517 56,335 - 79,459 Number of commuters 654 - 1,409 1,410 - 2,458 2,459 - 4,016 4,017 - 7,675 7,676 - 24,820 Cantons Kilometers Source: Agüero, Pujol, and Pérez 2014, based on 2011 population census data. 13 In Dijkstra, Poelman, and Veneri (2019), a city is defined as an area in which people commute daily to work. 14 A metropolitan area has been defined as the area encompassing the set of cantons that are part of the province and are within the boundaries of the region. An exception is made for the canton of La Unión, which is administratively part of the province of Cartago, but functionally linked to San José, thus being included in the latter. 15 Outside the GAM, most cantons account for more than three-fourths of workers living within the same canton; the most extreme case is Talamanca, with 93.42 percent: that is, there is very little inter-cantonal commuting for work outside the GAM. The rural nature of these areas combined with the large size of many of these cantons may partly explain this situation. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 14 In the GAM, 50.6 percent of workers are central canton of San José, which concentrates a employed in a canton other than the one where large share of jobs, and some districts in cantons they live, while outside the GAM this figure on the western side of San José, which benefit drops to only 17.6 percent. This means that half from worksites along National Route 27. of the GAM-based workers must commute daily to their jobs in another canton; that is, they con- The most important dormitory cantons include tribute to the demand for transportation during the South Corridor cantons of Desamparados, peak hours, both in the morning and in the after- Aserrí, and Alajuelita. The high commuting rates noon. Figure 12 shows the GAM districts accord- of these cantons are related to the proximity to ing to the share of workers whose employment San José, a proximity that does not translate to is located outside of the canton where they live easy access, as Chapter 3 will further specify, and (based on the 2011 census). A majority of districts the inability of the local economies to generate in the metropolitan areas of San José and Heredia production and jobs (see Chapter 2). As for the have more than 63 percent of workers commuting rest of the region, the canton of La Unión on out of the canton (thus making them dormitory the east side of San José and the outskirts of the cantons, see Figure 12). The exceptions are the Heredia metropolitan area are noteworthy. FIGURE 12. The largest dormitory cantons are South San José, North Heredia, and La Unión GAM boundaries Road Network Primary Secondary Tertiary % off-canton commuting travels 11-24 24-37 37-50 50-63 61-75 Source: National Population and Housing Census (INEC 2011). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 15 FIGURE 13. Total costs of transportation externalities are higher in central cantons such as San José, Alajuela, or Heredia and smaller in rural areas 350 6,000 Total yearly cost in US$, million 300 5,000 Per capita cost in US$ 250 4,000 200 3,000 150 2,000 100 50 1,000 0 0 sé os la ia ea o ón o ia va at ta rrí ca ás zú so na el o no lo ra co ra ro ás én es as o Jo rad jue red ech rtag Uni nad rav Bar dab ueli Ase e O Tib sca raí a A afa ingmu Pab rba uar Mo Isid Po Bel lor ten arad n a la e a o o ri aj d E Pa nt n R om ea n Bá G F A lv Sa mp A H oico C La Cor M ur Al es S a a D Or Sa ta El Sa n A a G e C t S o s d on nt an De V. M S a S Total yearly cost, US$ million Per capita cost in US$ Source: Sánchez 2018. C. The concentration of economic percent; (d) air and solid waste pollution at 1.11 activity in the GAM and the lack percent; and (e) citizen insecurity at 1.42 percent. of an effective and integrated The comparison of both estimates suggests that transportation system carries there has been a significant increase in congestion significant costs for the country costs, which is consistent with the situation that the region is currently undergoing, according to The costs of an inadequate transportation net- Gómez and Cubero (2018). work in the GAM are estimated at US$2,864 million, including US$691.2 million due to For example, the manufacturing industry traffic congestion.16 Figure 13 shows the per has been decentralizing away from San José capita and total costs by canton, based on esti- mainly due to increased costs associated with mates by the Research Program in Sustainable traffic congestion. Since 1984, manufacturing Urban Development, ProDUS (cited in Sánchez economic activities have been relocating from [2018]). As expected, cantons with a larger labor their original sites in the canton of San José to force, such as San José, accumulate a higher cost. other locations—specifically to industrial parks The cantons with the highest per capita costs in Heredia, Cartago, and, more recently, Alajuela (Barva, Coronado, Moravia, San Pablo, San Isidro, (Arias and Sánchez 2012).17 These new industrial Aserrí, and La Unión) are generally located on the zones gained relative importance in terms of the outskirts of the San José and Heredia metropoli- development of industrial activities. San José, tan areas. Earlier and more extensive estimates of meanwhile, witnessed a decline in both its indus- regional negative externalities (Otoya 2009), devel- trial park and investors’ investment prospects in oped under the GAM Regional Urban Planning the territory. Arias and Sánchez (2012) attribute (Proyecto de Planificación Urbana Regional de la this decentralization process to, among other rea- Gran Área Metropolitana – PRUGAM) project, sons, the industrial saturation in San José and the assessed the costs associated with (a) road crashes escalating transaction costs associated with road at 0.30 percent of GDP (2005); (b) traffic conges- obstacles, transportation costs, and excessive red tion at 1.23 percent; (c) fuel consumption at 0.18 tape. 16 Sustainable Urban Mobility Plan for the San José Metropolitan Area (Plan de Movilidad Urbana Sostenible para el Área Metropolitana de San José), COSTA RICA PIMUS (cited in Sánchez [2018]). 17 Arias and Sánchez (2012) examined manufacturing workers by their canton of residence through the five most recent censuses (from 1963 to 2011). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 16 The GAM traffic congestion-related costs are Congestion costs are explained by serious defi- high in the Latin American context. The per ciencies found in the regional road network capita cost estimated by the Integrated Sustainable and public transportation—a detailed analy- Urban Mobility Plan (Plan de Movilidad Urbana sis of the GAM transportation is discussed in Sostenible, PIMUS) in 2017 due to congestion is Chapter 3 of this study. The regional road system US$304. This figure is significantly higher com- was first built in the mid-1970s, but the economic pared to those of the most important metropoli- crisis in the 1980s resulted in severe road inves- tan areas in Latin America—US$177 per capita tment curtailments, lasting until at least 2008.18 cost for Montevideo, US$156 for Santiago de For decades, only sections of major highways Chile, and US$112 for Buenos Aires (Calatayud were in service (in particular, National Routes et al. 2021). As a share of national GDP, traffic 2, 27, and 39) that even today lack the necessary congestion accounted for 1.1 percent of GDP in intersections with the rest of the road network.19 Buenos Aires, Montevideo, and Sao Paulo; 1.0 According to Sánchez (2018), US$1,634 million percent in Santiago; 0.9 percent in Bogotá and in investments are needed to expand the regional Rio de Janeiro; 0.8 percent in Lima; 0.7 percent in system's capacity, despite notable advances in road Santo Domingo; and 0.5 percent in San Salvador construction in recent years. and Mexico City. In contrast, this figure for the GAM is 0.9 percent of national GDP, similar to the highest costs reported in Latin America. 18 Figures are reported annually in the Ministry of Public Works and Transportation (MOPT) statistical yearbooks, available at: http://repositorio.mopt.go.cr:8080/xmlui/handle/123456789/4 19 Insufficient interchanges on sections of the national road network were completed, notably on National Routes 1 and 39. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 17 III. Territorial Inequality Rises, Poverty Stagnates, and Segregation Intensifies in the GAM A.Some cantons in the GAM are segregation. As seen in Table 2, the correlation highly segregated between poverty and the Gini index is relatively high. Inequality in Costa Rica is driven by income Inequality and poverty in the GAM are highly differences between urban and rural areas, a correlated. As can be seen in Table 2, the cor- trend that is replicated within the GAM itself. relation between poverty and the Gini index is Arias and Sánchez (2012) found the overall Gini relatively high (0.67): this means that cantons index of Costa Rica to be greater than the Gini with high levels of poverty also seem to exhibit index for only urban areas, whereas the Gini greater inequality and cantons with less poverty, index for urban areas is greater than for rural which concentrate the professional upper/middle areas. Within the GAM, (Figure 14), the urban classes and where the market may have acted as upper-middle-class cantons of Belen, Moravia, a mechanism of social homogenization, are also San Pablo, and Montes de Oca show the lowest less unequal for that reason. In general, when levels of inequality (households with lower human the relationship between potential determinants capital have been gradually displaced from these is examined, as in Table 2 (for example, various territories). The three cantons with the highest measures of education, such as variables of human levels of inequality are Mora, Escazú—both with capital, shown in light blue, or of employment, in concentrations of wealth and large rural areas— purple), it is clear that (a) the indicators correlate, and Oreamuno, and they show significant social both with poverty and with the Gini Index, and FIGURE 14. Inequality is more pronounced in cantons with high concentrations of poverty and wealth and less in cantons inhabited mainly by upper-middle-class professionals 49 47.8 48 47.2 47 46.7 46.7 46.6 46.6 46.6 46.5 47 46.5 46.4 46.4 46.3 46.3 46.1 46 45.8 45.8 45.7 45.6 45.5 45.5 45.5 Gini Index 45.3 45.3 45.1 45.1 45 45 45 44.7 44.1 44 43.5 43 42 41 ás ea a ico ás Ca la ro a H o At t Sa an ael Al res n ta Es o do a De Pa a Ba ro M lén pa so As s La osé Al ón Sa zú nt as El ago rri co te ablo Al errí Do rva a a go n a ba Or Mor Co di do ar d n un he Oc Sa avi ue Po Go Tib Sa eli d í en ca Cu uar aA ra na i V. ere sa ra o S af in Be Un rb da Ba nt Isi J ra m ec rt aj Fl P u va or e m n R aj G sd Sa m a o on nt M Sa Source: INEC 2011. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 18 (b) the magnitude of the correlation coefficient TABLE 2. GAM inequality and poverty by canton (which represents the degree of association) is are correlated greater for poverty and each determinant than for inequality. For example, the level of schooling Variable Poverty Gini Index is negatively related to both poverty and the Gini Poverty 1.00 0.67 Index and is higher (0.87) for poverty than for Gini 0.67 1.00 inequality (0.46). Schooling −0.87 −0.46 Education lag 0.73 0.44 B. The GAM concentrates the largest number of poor households Secondary education completed −0.79 −0.42 University −0.82 −0.45 Costa Rica’s progress in reducing poverty stag- Rates of employment −0.83 −0.62 nated in the 1990s. While the country succeeded Primary employment 0.79 0.41 in reducing poverty from the 1950s to the 1980s, this reduction has stagnated for the past 30 years. Entrepreneurship −0.62 −0.36 After the debt crisis in the late 1970s and early Unpaid employment 0.79 0.61 1980s, 20 which led to significant (though short- lived) increases in poverty levels, the country Source: INEC 2011. recovered.21 The slowdown in poverty reduction efforts in the 1990s was related to the decline Eight GAM cantons have poverty rates excee- in education and the fiscal and productive disen- ding 20 percent (see Figure 15). Poverty in some gagement of the new economy (high-tech, non- cantons is concentrated in formalized urban sett- traditional exports, free-trade zones, tourism, lements, including Alajuelita, Aserrí, and Paraíso, financial sector) from the rest of the economy as well as peripheral rural cantons (Alvarado, (PEN 2009). Peas, Oreamuno, Mora, and El Guarco). This distinction is important because, despite their While the GAM has large numbers of urban material deprivation, there is evidence that the poor, the incidence of poverty is lower than in environmental externalities of rural cantons the rest of the country. In the GAM, between significantly improve the residents' satisfaction 14.6 percent (measured on the basis of the poverty with their living conditions (Pérez 2012). In threshold) and 18.1 percent (when defined by Chapter 2, patterns of poverty within the South unmet basic needs [UBNs]) of total households Corridor will be examined in more detail. live in poverty, constituting 35 percent of poor households in Costa Rica. There are 95,000 poor C. Access to housing in the GAM is a households in the GAM, according to the poverty persistent problem for most of its line method. The number of households living in inhabitants, despite the success poverty (those with one UBN22) is 97,000 and of the social housing program in in extreme poverty (those with more than one reducing housing informality UBN) is 21,000: the aggregate is 118,000 house- holds—37 percent of all households nationwide The majority of GAM residents lack access to based on the UBN approach. affordable and adequate housing. A combination 20 By the late 1970s, the external debt service—necessitated by a mixture of external (1973 and 1978 oil price crises, political unrest in Central America) and internal factors (chronic balance of trade deficit, growing public fiscal deficit, poorly diversified economy dependent on agro-exports)—became unsustainable. Faced with the Costa Rican government's failure to repay, a default was declared, resulting in a 600 percent inflation between August 1980 and March 1982, followed and accompanied by a severe economic downturn and a rapid and substantial increase in unemployment (see Villasuso [2000]). 21 Failure to complete high school education has been repeatedly recognized as a key variable in identifying households in poverty by the Programa Estado de la Nación (particularly dependent households with heads who did not complete high school education). See, for example, Chapter 6 of PEN (2020). 22 The indicators of UBNs were defined by Méndez and Trejos (2004) as a method for identifying critical needs based on census information. They are four: (a) shelter, which identifies substandard dwellings (built with inferior or scrap materials, no electricity, or with overcrowding); (b) health, which measures access to safe drinking water or sanitation; (c) knowledge, which measures the educational attendance and achievement (progress) of children under 17 years of age in the household; and (d) consumption, which considers education, age, and environment (urban/rural) of the adults contributing income to the household—because these variables correlate with household income, measured through household surveys (Méndez and Trejos, 2004). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 19 FIGURE 15. Poverty distribution in GAM cantons (2011) 30.00 25.00 20.00 Poverty Rate 15.00 10.00 5.00 0.00 Alajuelita Aserrí Alvarado Paraíso Oreamuno Mora El Guarco Alajuela San José Atenas Desamparados Cartago La Unión Santa Barbara Goicoechea Santa Ana Curridabat Escazú San Isidro Tibás Santo Domi Barva San Rafael V. Coronado Heredia Flores Belén Moravia San Pablo Montes de Oca Poás Poverty (one UBN) Extreme poverty (from 2 to 4 UBNs) Income below the poverty line Source: INEC 2011. of factors contribute to the region’s housing pro- FIGURE 16. Most of the GAM population cannot afford blems, including (a) the lack of affordability of homeownership without sacrificing a significant share of housing in terms of payment capacity (no more their household income than 30 percent of family income) and (b) limi- ted and concentrated supply of social housing in terms of location and types of housing provided; GAM also, the allocation of housing subsidies in the 400 region has decreased. As a result, the poorest population segment continues to rely on informal 300 housing, and settlements located in risky areas Amount persist in the region—although it is important to 200 note that informality had been reduced over the long term due to the significant investments of the 100 social housing program. 0 5e+04 1e+05 5e+05 1e+06 1e+07 The GAM faces a serious housing affordability Full price (US$) problem for low- and middle-income families. Non-residential Residential Most GAM households cannot become homeow- ners because their income is insufficient to qualify Income quintile I for a mortgage loan unless they accept a monthly Income quintile II cost burden exceeding 30 percent of their gross Income quintile III income. Figure 16 compares the ability to repay, assuming that a mortgage payment is not a cost Income quintile IV burden, with GAM house prices.23 As seen, 60 Income quintile V percent of households in the region can afford a very small share of homes available for sale, while the bottom 20 percent are completely excluded Source: Agüero et al. 2020. 23 Ability to repay was estimated by assuming that 30 percent of gross household income would be dedicated to a 30-year mortgage repayment at a 6.25 percent interest rate, using the household income of the Central Region in 2020, based on INEC's Encuesta Nacional de Hogares (ENAHO). The 30 percent threshold as a cutoff between being cost burdened or not was adopted from Fernald (2020). The property data are from a sample of 2,533 records downloaded from the website www.encuentra24.com, a real estate listing aggregator; housing data of this sample is described by Perez (2021). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 20 TABLE 3. The number of social housing subsidies has been shrinking in the GAM since 1987 Housing Subsidies Spatial Unit 1987–1993 1994–2000 2001–2007 2008–2014 2015–2018 Total San José Metropolitan Area 21,776 13,688 6,297 4,637 2,487 48,885 Alajuela Metropolitan Area 4,781 6,165 3,032 2,045 509 16,532 Cartago Metropolitan Area 9,300 11,644 4,893 5,627 2,460 33,924 Heredia Metropolitan Area 7,188 4,485 2,656 1,297 601 16,227 Rest of Costa Rica 40,613 58,242 54,344 59,262 89,225 301,686 Source: Ministry of Housing and Human Settlements ). from the market (considering, for example, that the Costa Rican government's housing subsidy BOX 1. was only US$11,000 in 2020, insufficient to Costa Rica's social housing program purchase a home in the market). The social housing program in Costa Rica subsidizes affordable Housing affordability issues are linked not housing for the poorest households and finances social housing only to limited access to demand-side mort- developers. This scheme is made up of BANHVI, a second-tier bank, and gage loans, but also to a housing supply that housing cooperatives: authorized housing institutions that process subsi- is insufficiently diverse in terms of housing dies for potential beneficiaries (Republic of Costa Rica 1986). BANHVI, in type, location, and price. Table 3 shows the total turn, is comprised of two funds: The National Housing Fund lends money to number of housing subsidies granted in Costa social housing developers; the Housing Subsidy Fund (FOSUVI) awards sub- Rica.24 Some of these subsidies (about 20 percent) sidies to eligible households (mainly based on income). Thus, a developer refer to housing units constructed directly by a can finance the urban development using BANHVI funds and then recover housing developer for the Mortgage Bank (Banco their investment by delivering the houses to the beneficiaries (who in turn Hipotecario de la Vivienda, BANHVI) (see Box ‘repay’, financed by FOSUVI, housing subsidies or bonos de Vivienda). 1),25 which improves the prospects of GAM's resi- dents for accessing social housing; other housing The social housing development initiative falls on the developers. subsidies consist of grant allocation to families for This has created a persistent issue because the land is selected by devel- self-construction on the beneficiary’s own land opers to minimize costs under criteria such as cheap land values resulting or housing expansion/improvement (this subsidy from inaccessible or unsuitable conditions for urbanization. Often, the type makes up 66.5 percent of subsidies allocated developers arrange the beneficiary lists with organizations of families liv- in 2018). The latter mechanisms are less efficient ing in informal settlements. This has caused the state to finance housing to address housing affordability in the GAM, units in unsuitable zones and at costs higher than the real estate markets given the high land prices in the metropolitan area would indicate, considering the quality of homes and conditions of the land and the lack of access to land on the part of poor (Pujol, Pérez, and Sánchez 2011). families. Overall, the share of subsidized housing in the GAM has been shrinking at an accelerated pace. In an earlier phase of the housing program, 51 percent of subsidies were distributed in the GAM; this percentage dropped to 38 percent in 1994–2000, 24 percent in 2001–2007, 19 percent subsidies to families in extreme poverty that can in 2008–2014, and just 6 percent in 2015–2018. be allocated to cover rent, but this program is limited. In addition to the severe affordability and There are no effective alternative arrangements mortgage market exclusion issues faced by most of for supporting poor families in need of shelter. the population, the supply of housing fails to meet The Instituto Mixto de Ayuda Social provides the needs of the region's population. 24 Based on the statistical digests of the Ministry of Housing and Human Settlements (MIVAH), 2016 and 2018. 25 In general, housing subsidies consist of monetary assistance provided by the state to families who own a plot of land to be used for building a housing unit on that plot; in GAM, the number of poor families with access to land is much smaller than in rural areas. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 21 Informal housing has been declining rapidly informality in the GAM stood at 11.9 percent of in Costa Rica. Pujol, Pérez, and Sánchez (2014) total housing stock in 2000 and declined to 8.1 compared the number of informal housing units26 percent in 2011. These informality percentages in 2000 versus 2011 and established the impacts were similar to those of Montevideo (8 per- of housing projects financed by BANHVI. Their cent) and higher than Santiago de Chile (1 per- overall results are shown in Table 4. They found cent), but much lower than other Latin American that (a) GAM-wide housing informality dropped cities: Bogotá reported 24 percent; Mexico City substantially during the intercensal period and 40 percent; Lima between 37 and 40 percent; that (b) part of this reduction and improvement, Guatemala City 40 percent; Tegucigalpa 50 per- especially in terms of housing conditions and cent; San Pedro de Sula 25 percent; and Managua access to infrastructure (but not legal tenure sta- 50 percent. tus) could be attributed to the government-finan- ced social housing programs. However, housing The canton of San José is host to 31.9 percent informality persists and is spatially concentrated of informal housing (lacking legal title) in the in sites where illegal occupations or initial hou- GAM. The cantons of Curridabat, Desamparados, sing program interventions occurred (between and Tibás have a significant presence of informal 1987 and 1993); in particular, lack of titling rema- settlements with 15.5 percent, 14.7 percent, and ins an issue for many of these dwellings (Pujol, 13.8 percent, respectively. The GAM's informal Pérez, and Sánchez 2014; Valverde and Trejos homes (75.9 percent) are concentrated in these 1993). As shown below (for example, figures 15 four cantons. As seen in Table 4, they account for and 17), these districts tend to be on the periphery a small percentage of the informality issue, but of the region or physically isolated and are often also, being a highly complex legal concern, they exposed to impacts from potential flood or lands- are often the most difficult to resolve. lide disasters. The informal settlements in these four cantons Between 2000 and 2011, housing informa- (including districts of Alajuelita, Cartago, and lity in the GAM was low compared to Latin Heredia) correspond to the location of the American levels. Pujol, Pérez, and Sánchez social housing projects that originally forma- (2014) compared the levels of informality in the lized settlements in the 1985–1993 period. GAM (shown in Table 4) against data from other Many of these then informal settlements, espe- Latin American cities. The percentage of housing cially in the 1980s, are located in the cantons TABLE 4. Informal housing declined dramatically21 in the GAM between 2000 and 2011 (excluding informality caused by lack of land title) 2000 2011 GAM Costa Rica GAM Costa Rica Percentage 100 100 100 100 Informal Housing (total) 21 Number 58,845 192,166 49,889 139,899 Percentage 11.9 20.5 8.1 11.5 Precarious housing (lacking legal title) 21 Number 10,750 18,101 11,436 16,019 Percentage 2.2 1.9 1.8 1.3 Poorly maintained dwelling 21 Number 43,842 106,674 34,189 73,245 Percentage 8.9 11.4 5.5 6.0 Housing with no access to infrastructure 21 Number 23,515 129,689 16,117 81,227 Percentage 4.7 13.9 2.6 6.7 Source: Pujol et al. 2014. 26 The studies conducted by Pujol, Pérez, and Sánchez (2011) and Sánchez (2015) analyzed the characteristics, spatial location, and concentration patterns of residential segregation for the group of low-income households in all GAM districts and cantons in the 2000 and 2011 census periods. They used the UBN for shelter as a variable to identify low-income households. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 22 corresponding to the South Corridor (for exam- spatial nature of social segregation in the GAM. ple, Concepción and San Felipe in Alajuelita, Social segregation in the GAM is spatially correla- Los Guido and Patarrá in Desamparados, and ted with districts that are home to informal sett- Salitrillos in Aserrí). These lands were close to lements and social housing. Government policy, the canton of San José but had a relatively low either active or passive, plays a major role in the land value, partly because they were outside the social segregation patterns. Housing projects for regional growth boundary due to their exposure the poorest have generated new informal settle- to extreme events. This allowed settlement leaders ments in their vicinity. The absence of sanitation to agree on their occupation with the property infrastructure in many places across the region, in owners (either private or public institutions; Mora part because they were originally settlements in and Solano 1993). Although these settlements areas unsuitable for urban development, generates were formalized by the state, they have laid the the highest values of dissimilarity (that is, the seed for continued informal housing development relative proportion of majority and minority hou- around their edges. seholds that would have to exchange their spatial unit to reach an even distribution/integration) The concentration of poverty and informal as measured by the Duncan Segregation Index settlements within the GAM generates terri- (Figure 17). torial patterns of social segregation. According to Pujol, Pérez, and Sánchez (2011) and Sánchez There are significant spatial concentrations (2015), the levels of social segregation increased in of social segregation in certain clusters of the intercensal period from 2000 to 2011.27 They districts. The territorial patterns of residen- detected that segregation was most pronounced in tial segregation for low-income populations are San José and Heredia Metropolitan Areas (Table concentrated in a small group of high-density 5). As expected, as the study area expands, the areas, although they are also found around the concentration of low-income groups decreases periphery of the region. Figure 17 shows that and the interaction between low-income groups social segregation is more pronounced in (a) dis- increases; that is, the larger the area, the lower tricts relatively isolated by large river canyons, the segregation. Finally, they found a significant which is reflected in the end area of the bus spatial correlation when segregation patterns were routes (La Uruca, Pavas, Tejarcillos, and Rio examined at the district level, which confirms the Azul); (b) GAM rural areas, especially along the FIGURE 17. Duncan Segregation Indexes for 2000 and 2011 display the socioeconomic residential segregation patterns in the GAM Duncan Segregation index 2000 Duncan Segregation index 2011 -0.0064 - -0.00040 -0.0034 - -0.0004 -0.0040 - 0.000031 -0.0004 - 0.000031 0.000031 - 0.00047 0.000032 - 0.00047 0.00047 - 0.0011 0.00047 - 0.0011 Greater than 0.0011 Greater than 0.0011 GAM GAM Source: Sánchez 2015. 27 The studies conducted by Pujol, Pérez, and Sánchez (2011) and Sánchez (2015) analyzed the characteristics, spatial location, and concentration patterns of residential segregation for the group of low-income households in all GAM districts and cantons in the 2000 and 2011 census periods. They used the UBN for shelter as a variable to identify low-income households. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 23 TABLE 5. Inequality, exposure, and concentration indices by district and canton (2000–2011)28 Boundary Boundary- length- Shape- Duncan corrected corrected corrected Interac- Concen- Segregation Isolation Adjusted inequality inequality inequality tion tration Index Index Isolation Index index index index index index Metropo- litan area 2000 2011 2000 2011 2000 2011 2000 2011 2000 2011 2000 2011 2000 2011 2000 2011 Estimated by canton GAM 0.097 0.122 0.097 0.070 0.005 0.006 0.076 0.102 0.096 0.121 0.083 0.109 0.903 0.930 0.432 0.438 San José 0.108 0.122 0.103 0.079 0.005 0.007 0.084 0.097 0.107 0.121 0.099 0.113 0.897 0.921 0.371 0.360 Alajuela 0.010 0.024 0.095 0.059 0.000 0.001 -0.006 0.007 0.010 0.024 0.009 0.023 0.905 0.941 0.216 0.214 Cartago 0.073 0.048 0.090 0.063 0.002 0.001 0.058 0.038 0.073 0.048 0.072 0.048 0.910 0.937 0.224 0.299 Heredia 0.071 0.097 0.078 0.048 0.002 0.003 0.050 0.078 0.071 0.097 0.068 0.095 0.922 0.952 0.361 0.369 Estimated by district GAM 0.229 0.262 0.122 0.096 0.030 0.032 0.180 0.221 0.222 0.254 0.084 0.135 0.878 0.904 0.536 0.534 San José 0.262 0.294 0.137 0.113 0.039 0.041 0.058 0.060 0.256 0.260 0.159 0.160 0.863 0.887 0.471 0.486 Alajuela 0.147 0.158 0.104 0.067 0.009 0.008 0.114 0.133 0.147 0.158 0.142 0.155 0.896 0.933 0.359 0.385 Cartago 0.186 0.218 0.107 0.081 0.019 0.019 0.136 0.189 0.185 0.218 0.169 0.206 0.893 0.919 0.464 0.501 Heredia 0.185 0.202 0.091 0.057 0.015 0.012 0.149 0.174 0.184 0.201 0.161 0.181 0.909 0.943 0.472 0.453 Source: Sánchez 2015. fringes of the region or its subregions (Cascajal, found in high-risk and river protection zones, La Carpintera, Ochomogo, and Rio Azul); (c) in while 62 percent of settlements on private land are high-slope areas, such as Tejarcillos de Alajuelita; exposed to some type of risk, as are 82 percent of and (d) flood and landslide-prone areas, like the those located on mixed ownership lands. banks of the rivers crossing the AMSJ. D. High level of access to basic Slums are located in areas unsuitable for urban services in the GAM, except for development. Figure 18 shows the districts accor- sanitation ding to the number of precarious dwellings, esti- mated using census data. While there are some Based on the 2011 census, access to basic servi- differences in the slum inventories, these settle- ces and infrastructure is practically universal ments essentially coincide with those reported by in the GAM. The share of households with access the MIVAH. According to MIVAH (2005), 86 to electricity, safe water, and solid waste collec- of the 116 slum settlements in the GAM province tion services exceeds 98.5 percent throughout the of San José are found on state-owned lands, 19 on region (see Figure 19). private lands, and 11 on properties owned by lan- downing families or state institutions. Of these Sanitation coverage has always been the excep- settlements on state-owned lands, 63 percent are tion to the rule. Only 35.2 percent of homes have 28 The Duncan Segregation Index (also called the “inequality” indicator) is obtained by estimating 0,5∙∑[xi ⁄ x-(ti-xi ) ⁄ (t-x) )] with xi the number of minority group members in spatial unit i, x the sum of xi for all units in the study area, ti the total population of spatial unit i, and t, the total population of all units in the study area. The isolation index is estimated with the formula: ∑ [(xi ⁄x)∙(xi ⁄ti )] . The interaction index is defined by estimating this product but with respect to the majority group (i.e. the subtraction between the total population and that of the minority group in i): : ∑[(xi ⁄ x)∙[(ti-xi ) ⁄ti ]] . The concentration index is defined as 0,5∙∑[xi ⁄x-ai ⁄a] , where ai is the area of spatial unit i and a is the sum of all ai within the study area. The corrections made to these indices seek to reflect that neighboring spatial units are more closely related than more distant spatial units; the correction itself only considers whether two spatial units are adjacent (share boundary); the correction for boundary length considers how long the common boundary segment is; the correction for shape corrects for the ratio of perimeter to area, which has been shown to be a potential determinant of segregation. See Sánchez (2015) for more details. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 24 FIGURE 18. GAM slums are more exposed to disaster risk than other areas in the region Landslide crown Protected wilderness area Quarternary fault Number of precarious homes River 0-0 GAM boundary 0-100 Flood potential 100-250 Informal settlements 250-500 500 or more Source: CNE and MIVAH. FIGURE 19. Except for sanitation, access to infrastructure sewer connections, and for nearly three decades, and other urban services is almost universal in the GAM this sewerage system used to discharge sewage directly into the region's rivers (a wastewater 100.0% treatment plant was recommissioned in 2015). Of the GAM households, 62.7 percent treat their 80.0% wastewater through septic tanks. Although under 60.0% certain urban density conditions and soil cha- racteristics this technology may provide for ade- 40.0% quate wastewater treatment, much of the GAM probably exceeds density levels where septic tanks 20.0% are appropriate and soils are impervious to sewage 0.0% infiltration. Septic tanks are only a partial and Homes with Homes with Homes with access Homes Homes with imperfect sanitation solution. access to access to to sewage with septic access to garbage electricity safe water1/ systems tank collection trucks Source: 2011 census. Note: 1/ Excludes households supplied by wells, streams, springs, and others (including water cisterns). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 25 IV. Additional Challenges Faced by the GAM: Water, Violence, and COVID-19 A. The GAM faces water supply challenges The GAM is facing potable water supply issues 9 percent is unknown because homes were unoc- caused by rapid urban growth coupled with cupied at the time of the census. The rest of the inadequate infrastructure. Based on a regional households used wells, rivers, or rainwater. water balance analysis, GeoAdaptive (2015) con- cluded that the drinking water supply in the The AyA-managed metropolitan aqueduct is region would be insufficient to meet regional sup- being expanded. The Central American Bank ply needs under drought conditions; moreover, for Economic Integration (CABEI) is providing water is being over-exploited in certain areas of US$399.2 million for the construction of 44.3 km the region. The drinking water infrastructure that of pipelines, a new wastewater treatment plant, supplies the metropolitan aqueduct currently fails and 40,000 m3 of additional storage capacity, col- to meet the demand.29 Since 2015, the region has lectively known as the PAAM. This project would experienced scheduled service interruptions last- take 2.5 m3/s of water from Orosi, the Reventazón ing between 6 and 12 hours per day. watershed, to supply the metropolitan aqueduct located in the Virilla river watershed. It is esti- GAM's water is supplied mostly from aqui- mated that the new volume of water would serve fers and surface water resources. A Ministry of 638,000 people for human consumption.30 Environment and Energy (MINAE) water con- cessions review reported that, in 2015, 9.1 m3/s of B. Social exclusion and lack of total flow had been used for all human uses in the opportunities spur violence GAM (GeoAdaptive 2015). About 66 percent of and organized crime this flow was used for drinking water supply by utility operators. Additionally, 92 percent of the flow was Violence in Costa Rica and the GAM soared extracted from groundwater aquifers located mainly to historically high levels in recent years. The in North Heredia and Alajuela or from springs. GAM reports that ten cantons have a homicide rate of over 10 per 100 individuals, the threshold Drinking water in the GAM is supplied by for an epidemic: San José, Escazú, Desamparados, public utilities, including the AyA, the Heredia Aserrí, Goicoechea, Alajuelita, Coronado, Tibás, Public Utilities Company (ESPH), and municipal Alajuela, and La Unión (Figure 20). By district, and rural aqueducts. In 2011, based on the hous- an analysis of the 2014–2018 period shows a ing census, the AyA supplied 54 percent of house- clear concentration of homicides in a few GAM holds throughout the region, the ESPH supplied districts, specifically the districts of Pavas, Hatillo, 8 percent, municipal aqueducts accounted for 21 Uruca, San Sebastián, and Hospital in San José, as percent, and 8 percent were supplied by small rural well as León XIII in Tibás. One out of every three aqueduct systems. The source of the remaining homicides occurred in these areas. 29 https://www.larepublica.net/noticia/empresarios-denuncian-problemas-en-planificacion-y-ejecucion-de-proyectos-de-aya 30 For further details, see: https://www.presidencia.go.cr/comunicados/2020/11/bcie-aprueba-3992-millones-para-megaproyecto-de- ampliacion-del-acueducto-metropolitano/ THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 26 FIGURE 20. Most cantons in Costa Rica reported homicide rates of epidemic proportions in 2014–2018 Legend Homicide rate per 100,000 population Negligent Standard High Endemic Source: Sanchez (2018) with data from ICD GAM-wide citizen insecurity is related to FIGURE 21. Drug seizures in Costa Rica are a highly the drug trade. Between 2014 and 2018, more localized issue: 50 percent of drug seizures from 2014 than 94,000 drug seizure events were reported to 2018 took place in 33 districts - 17 of them in the GAM with nearly 119,000 people involved (86 percent males), 70 percent of them under 40 years of age. About 50 percent of these cases occurred in only 33 districts (see Figure 21); that is, less than 7 percent of the country's districts, denoting a high geographic concentration. Among them, 17 dis- tricts (51 percent) are located within the GAM.31 In these districts, there is a distinct concentration of poverty featuring very specific socioeconomic characteristics: more than 99 percent of their pop- ulation lives in urban, high-density, and populated areas; 40 percent of the population over age 25 only completed primary education; and one-third Drug seizures GAM boundaries 31 Specifically, in the canton of San José, the districts of Pavas, Hatillo, La Uruca, Carmen, Catedral, Hospital, Mata Redonda, San Sebastián, and Merced; San Pedro de Montes de Oca; Calle Blancos and Ipís in Goicoechea; San Juan in Tibás; Los Guido in Desamparados; San Felipe de Alajuelita; Pozos in Santa Ana; Occidental in Cartago; the central districts of Heredia and Curridabat, as well as the districts of the canton of Alajuela: the first district (Alajuela) and San José, San Rafael, Guácima, and Río Segundo. Source: ICD 2018. THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 27 of the population lives in poverty, which describes The largest COVID-19 cluster is around San more than 65 percent of the population living in José and its neighboring cantons and com- slums (INEC 2011). prises most of the districts of Alajuelita and the northwestern districts of Desamparados. In C. GAM’s labor and socioeconomic this pattern, the low value in this cluster tends to conditions exacerbated COVID-19 correspond to relatively high-income districts (for impacts example, Mata Redonda in the canton of San José) or peripheral districts with some rurality, such as The GAM hosts about 58 percent of all COVID- San Josecito in Alajuelita or Salitrillos de Aserrí. 19 cases reported in Costa Rica by September 5, 2021, and 60 percent of the fatalities. Figure 22 As noted, a series of socioeconomic inequali- shows that the territorial distribution of COVID- ties converge within the GAM, even within the 19 cases is not random; on the contrary, there are same canton or district, which helps explain at least three agglomeration patterns: districts the variability observed in the locations of with a high incidence of COVID-19 adjacent to COVID-19 clusters within the region. The other high incidence districts (light red color), spatial incidence of COVID-19 partially reflects that is, what happens in one district affects the these asymmetries. Which and to what extent neighboring district; districts with a low incidence these characteristics impact virus spread may be of COVID-19 adjacent to other low incidence approximated by applying econometric techni- districts (light blue color); and atypical cases ques to define a set of variables that explain such consisting of districts with a low incidence of variability to a greater or lesser extent in different COVID-19 that coexist adjacently to other high areas of the GAM (see Annex 2).33 incidence districts (blue color). FIGURE 22. COVID-19 cases are clustered around San José (according to Moran Local I, LISA32) GAM South Corridor Cantons Non-significant (randomly) High value conglomerate Low value conglomerate Outlier (low close to high) Source: Prepared by authors based on data from the Ministry of Health updated by September 5, 2021. 32 See Anselin (1995) 33 The Geographically Weighted Regression (GWR) method has been applied: for each spatial unit in the dataset, a linear regression centered on that unit is estimated; the weight of the data corresponding to other units is determined by proximity to this unit. Thus, it is possible to estimate how the regression coefficients vary (that is, how the relationships between the dependent variable and each of its determinants vary) in space, as well as the goodness of fit of the model (Fotheringham, Brunso, and Charlton 2002). THE GREATER METROPOLITAN AREA AS THE DRIVING FORCE BEHIND COSTA RICA'S GROWTH AND URBANIZATION | CHAPTER 1 28 References Agüero, J., R. 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Veneri. 2019. “The EU-OECD definition of a functional urban area.” OECD Regional Development Working Papers, No. 2019/11. OECD Publishing, París https://doi.org/10.1787/d58cb34d-en. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 30 CHAPTER 2 A Territorial Approach to the South Corridor Authors Eduardo Pérez Molina, Alonso Brenes Torres, and Leonardo Sánchez Hernández Introduction For 40 years, the South Corridor, which com- service persists. The principal exception is public prises the cantons of Alajuelita, Aserrí, and investment in social housing. But this was partially Desamparados, was marked by significant con- counterproductive because the concentration of centrations of poverty and a weak local econo- housing supply for low-income families in the my. While diverse, the South Corridor cantons share area contributes to clustering and segregating this two challenges: relative isolation from the rest of population. Social housing in the GAM stems from San José, despite their territorial proximity, and sig- successive government administrations' formaliza- nificant concentrations of poverty in their territories. tion of informal settlements over the past 30 years This resulted in very weak local economies, requir- (see also Chapter 1). ing workers to commute elsewhere in the region daily to access quality services and job opportuni- Priorities for the South Corridor include invest- ties. The South Corridor's urban growth largely ments in affordable housing, transportation, involves the lower-income population. In addition, and public infrastructure. Specifically, it is impor- these cantons experience negative externalities, due tant to (a) incentivize the housing sector to expand to lack of investment and the consequences of the affordable housing options for the most vulnerable spatial concentration of poverty. populations in the South Corridor and the GAM; (b) diversify the type and location of social hous- The South Corridor's population growth has not ing toward denser and more diverse developments always been accompanied by sufficient pub- in the South Corridor and the rest of the GAM, lic investment. Historically, the South Corridor's reducing the high territorial concentration of social population has grown faster than the Greater housing; and (c) strengthen rental housing options Metropolitan Area (Gran Area Metropolitana, for all GAM residents. Furthermore, it is critical to GAM). And while the recent expansion of second- improve connections between the cantonal cen- ary education improved access to educational infra- ters of Alajuelita, Aserrí, and Desamparados and structure, a deficit in health facilities and quality downtown San José, both by road and public A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 31 transportation. Finally, it is necessary to address the The results first provide a historical-geographical shortage of health centers and improve the quality background of the South Corridor, to then elaborate of health and education services. on the demographic trends in these cantons within the context of the GAM. Subsequently, it zeroes in This chapter makes use of statistical and on the local economy and describes the relationship geographic analyses, supported by literature, of the South Corridor’s economies with other can- to describe the processes of population and tons, which, like the rest of the GAM, are clustered in urban growth, the local economy, and the need San José and Alajuela. Finally, the manifestations of for public investments in the South Corridor. poverty in housing and public services are discussed. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 32 I. Population Growth in the South Corridor Exceeds the National and GAM Average Rates A. The South Corridor cantons homeless families (Rovira 1985; Valverde and are characterized by densely Trejos 1993). Eventually, these land occupations populated areas, as well as large were formalized by the Costa Rican state. The swaths of uninhabited rural areas extent of this squatting was so significant that the Costa Rican social housing system was engi- neered around the formalization of these informal The South Corridor cantons—Desamparados, occupations of lands largely owned by the state Aserrí and Alajuelita—are part of the southern (Gutiérrez et al. 1993). periphery of the San José Metropolitan Area (AMSJ). Originally, the South Corridor cantons Aserrí and Desamparados cover large but used to be rural population centers that, through sparsely populated territories outside of the rapid urbanization processes, were incorporated GAM. Both Desamparados and Aserrí include into the AMSJ.34 Furthermore, during the 1980 large mountain areas that divide the GAM economic crisis, a large portion of the South from the Pacific Coast of Costa Rica (Figure Corridor cantons were subject to squatting by 1). Specifically, three districts of Desamparados FIGURE 1. The GAM's South Corridor is situated in a complex geographic context FIGURE 1a. South Corridor cantons compared to the FIGURE 1b. South Corridor canton sections belonging GAM to the GAM GAM límit Informal settlement Retaining ring (1982) Source: Sistema Nacional de Información Territorial (https://www.snitcr.go.cr/) and National Institute of Housing and Urbanism - INVU 1983. 34 Some cantons are very ancient. Aserrí, for example, dates back to the Spanish Conquista period. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 33 (Frailes, Rosario, and San Cristóbal) lie outside of were accompanied by large-scale investments in the GAM boundaries. Based on the 2011 census, urban infrastructure, such as electrification and these three districts account for 5.2 percent of the aqueducts. canton's population. In Aserrí, only two of the seven districts (Aserrí and Salitrillos) are located The economic downturn in the 1980s slowed inside the GAM, but their population is 72.3 urban growth throughout the country, the percent of the cantonal population. The analysis GAM, and the South Corridor. By the 1970s under this section considers only the population and mid-1980s (1973–1984), the relative popula- living within the GAM. tion growth rate in the South Corridor slowed to 3.7 percent, although it remained higher than B. Population dynamics in the South the GAM average (2.8 percent) and the national Corridor average (2.4 percent). This decline was more pro- nounced in the cantons of Alajuelita (2.9 percent) For the past 50 years, the South Corridor’s and Desamparados (3.8 percent). The annual population has grown much more rapidly than growth rate in Aserrí stayed over 5 percent. that of the GAM at large. In 1963, this area had a population of 48,713 (7.5 percent of the GAM), However, total density rose within the South which doubled to 104,753 in 1973—accounting Corridor. Density went from 947 inhabitants per for 11 percent of the GAM's total population. In km2 in 1973 to 1,416 in 1984, which is 2.2 times terms of annual growth rates, the 1960s saw the the average density of the GAM and 21 times the fastest growth in the South Corridor, standing at national average (Table 1). One of the main mani- 8 percent annually between 1963 and 1973, twice festations of the crisis was the real estate standstill as much as the rates reported by the GAM (3.9 and the accruing housing shortage, causing a percent) and the country (3.5 percent) in the same shortfall of tens of thousands of housing units by period. Desamparados (8.6 percent), Alajuelita the mid-1980s.35 Accordingly, the new population (7.6 percent), and Aserrí (7.0 percent) showed was forced to settle in areas with higher densities, similar growth rates. In 1963, the total population creating overcrowded households. density in the South Corridor was 1.4 times the GAM average and 18.9 times the national average. Between 1985 and 1993, large informal settle- Alajuelita has been the most densely populated, ments emerged in the GAM. To address housing followed by Desamparados. In the case of Aserrí, informality, the government instituted a social density has always been below the GAM average, housing program which led to the relocation of a because of its partially rural nature (Table 1). large part of the GAM's population to the region- al periphery (where land prices are cheaper), espe- The South Corridor’s growth rate is a result cially to the South Corridor cantons. In the 1980s of its functional dependence on the rest of the and 1990s (1984–2000), the annual population GAM in terms of jobs and services. The GAM growth rate in the South Corridor was even higher has run out of developable land in the initial than in the previous decade, reaching an annual expansion zones of the canton of San José, in growth rate of 4 percent, higher in comparison San Pedro de Montes de Oca, and Guadalupe de with the GAM (3 percent) or the national average Goicoechea, as well as in Tibás and the districts at (2.9 percent). the west of the canton of San José (Mata Redonda and Pavas). This has caused urban sprawl to occur C. The South Corridor has been in specific areas within the GAM, including the experiencing rapid population and South Corridor cantons. Moreover, the construc- urban growth trends for decades tion of radial highways linking the South Corridor cantons with the rest of the GAM stimulated the Within the South Corridor, population growth spread of the population to this area by facilitating in the 1980s and 1990s took place largely in access to services and job opportunities offered the canton of Alajuelita, rising from 31,390 to by other cantons in the GAM. These radial roads 70,297 inhabitants (an average annual rate of 35 Note that the 1984 census was carried out the year before the housing crisis broke out, with squatting and formalization of squatters. On the extent of the deficit and its relationship with the financial system, see Gutiérrez et al. (1993); the economic crisis was described by Rovira (1985); Valverde and Trejos (1993) describe the sociological dynamics of social movements, which were one of the main explanations for internal migration across the region in 1985–1993. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 34 5.2 percent). This is partly explained by the state's Density for the 2000–2011 period increased on housing investment, which in turn followed large par with the GAM and stood at 2,886 people per squatting events organized around 1985, espe- km2, which is 2.6 times the GAM average value cially in the districts of San Felipe de Alajuelita and 32 times the national average. and Los Guido-Patarrá de Desamparados, where previous squatting events were formalized (Pujol, In the long term, the South Corridor popula- Pérez, and Sánchez 2014). tion is expected to remain stable. The Instituto Nacional de Estadísticas y Censos - INEC's popu- In this period, the total population density in lation projections for the next 30 years (2021– the South Corridor rose in comparison with 2050) reflect the demographic transition that previous decades, standing at 2,633 people per the country has been experiencing. Declines in km2 (in the year 2000)—2.6 times the GAM fertility and birth rates, increase in life expectancy, average and 28 times the national average. These and relatively constant net migration flows are figures are high in the Costa Rican context but expected to lead to very low population growth not necessarily in the Latin American context. in the coming years. The total projected growth For example, Lima, Peru had an average den- for the South Corridor cantons is only 13,471 sity of 3,697 people per km2 by 2020, which persons (see Table 1). is ten times higher in certain districts such as Surquillo or Breña. Within the South Corridor, Population stabilization represents an oppor- in 2000, Alajuelita was the canton with the high- tunity to improve the living conditions of the est density (3,272 persons per km2), followed by South Corridor's residents. Population growth Desamparados (3,086 persons per km2) and, aver- in the South Corridor has been associated with aging half these values and similar to the GAM, increased demand for public services. A slowdown Aserrí (1,186 persons per km2). in population growth and the future stabiliza- tion of the population could free up resources to During the first decade of the 21st century, the increase investments in urban services and infra- population growth rate in the South Corridor structure. However, this will require adjustments dropped considerably because of the unavail- to municipal revenue mechanisms: much of the ability of land for new urban developments. investment and financing in Costa Rica's munic- During the 2000–2011 intercensal period, the ipalities is associated with population growth growth rate was less than 1 percent annually (0.8 (such as taxes on construction, see Chapter 4). percent). This is explained by the low growth Therefore, it will be important, especially for the in the cantons of Alajuelita (0.9 percent) and South Corridor, to review the public financing Desamparados (0.7 percent). These values are strategy and objectives in light of future demo- on par with the GAM average (0.8 percent) and graphic dynamics (for example, see Box 1). lower than the national average (1.1 percent). TABLE 1. The South Corridor's population growth and densification rates have outpaced the GAM's and the country's rates Period Zone 1963 1973 1984 2000 2011 2021 2050 Population Desamparados 29,750 68,096 102,310 183,904 197,646 283,043 265,881 Aserrí 5,920 11,653 20,968 34,992 41,867 45,913 48,933 Alajuelita 11,080 23,013 31,390 70,297 77,603 95,868 123,481 South Corridor 46,750 102,762 154,668 289,193 317,116 424,824 438,295 GAM 653,840 955,718 1,288,082 2,067,475 2,268,248 2,644,0843 2,974,799 Costa Rica 1,326,930 1,871,780 2,416,809 3,810,179 4,301,712 5,213,362 6,093,012 South Corridor/GAM 0.072 0.108 0.120 0.140 0.140 0.016 0.147 South Corridor/Costa Rica 0.035 0.055 0.064 0.076 0.074 0.081 0.072 Continues > A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 35 TABLE 1. The South Corridor's population growth and densification rates have outpaced the GAM's and the country's rates (continued) Period Zone 1963 1973 1984 2000 2011 2021 2050 Gross Density Desamparados 499.3 1,142.9 1,717.2 3,086.7 3,317.3 3,995.4 4,462.6 Aserrí 200.7 395.0 710.8 1,186.2 1,419.2 1,556.4 1,658.7 Alajuelita 515.8 1,071.4 1,461.4 3,272.7 3,612.8 4,463.1 5,748.6 South Corridor 440.6 947.3 1,416.9 2,633.8 2,886.5 3,453.7 3,982.9 GAM 319.9 467.6 630.2 1,011.5 1,109.7 1,293.6 1,455.4 Costa Rica 26.0 36.6 47.3 74,6 84.2 102.0 119.2 South Corridor/GAM 1.4 2.0 2.2 2,6 2.6 2.7 2.7 South Corridor/Costa Rica 16.9 25.9 30.0 35,3 34.3 33.9 33.4 Inter-annual population growth rate 1963–1973 1973–1984 1984–2000 2000–2011 2011–2021 2021–2050 Desamparados 8.6 3.8 3.7 0.7 1.7 0.4 Aserrí 7.0 5.5 3.3 1.6 0.8 0.2 Alajuelita 7.6 2.9 5.2 0.9 1.9 0.9 South Corridor 8.0 3.7 4.0 0.8 1.6 0.5 GAM 3.9 2.8 3.0 0.8 1.4 0.4 Costa Rica 3.5 2.4 2.9 1.1 1.8 0.5 Source: National Population Census, 1963–2011 (INEC 1963–2011). A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 36 II. The Local Economy of the South Corridor A. The local economy in the South as commerce, freight transportation, real estate, Corridor is dominated by small and financial services. Others include professional businesses and technical activities, partly associated with servicing foreign capital. When examining South Tertiary economic activities account for the Corridor cantons' outputs and inputs (the three highest-value output in the South Corridor most important ones are listed in Table 2), overall, cantons. The top ten economic activities in the they appear more concentrated in the first group South Corridor are all tertiary. Out of the total, than in the second, suggesting local economies some are more clearly associated with consump- that, while important, are also typical of primarily tion by the local population or businesses, such residential locations (see Chapter I). TABLE 2. Commercial activity and some services (finance, real estate) are the most important business sectors in the South Corridor Spatial Unit Desamparados Aserrí Alajuelita Total inputs (USD, millions) 486.8 44.6 40.5 % with respect to Costa Rica 1.76 0.16 0.15 Principal activities (inputs)* Wholesale and retail trade Hairdressing and other beauty Wholesale and retail trade (11.3%) (10.7%) parlor activities (18.9%) Central banking activities (4.0%) Advertising and market research Human health care and social work activities (10.1%) activities (5.0%) House rental and other services Wholesale and retail trade (8.3%) House rental and other services (3.8%) (3.8%) Total outputs (USD, millions) 1134.4 159.6 223.3 % with respect to Costa Rica 4.11 0.58 0.81 Principal activities (outputs)* House rental and other services Machinery and equipment House rental and other services (13.7%) maintenance, repair, and (13.9%) installation (18.7%) Wholesale and retail trade Central banking activities (12.7%) Central banking activities (10.4%) (11.3%) Central banking activities (9.6%) Wholesale and retail trade (9.5%) Wholesale and retail trade (9.7%) Continues > A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 37 TABLE 2. Commercial activity and some services (finance, real estate) are the most important business sectors in the South Corridor (continued) Spatial Unit GAM Costa Rica Total inputs (USD, millions) 20,520.70 27,610.50 % with respect to Costa Rica 74.32 100.00 Principal activities (inputs)* Wholesale and retail trade (9.5%) Wholesale and retail trade (9.1%) Machinery and equipment Construction of residential maintenance, repair, and buildings (4.6%) installation (4.8%) House rental and other services Food and drink services (3.9%) (4.0%) Total outputs (USD, millions) 20,094.80 27,610.50 % with respect to Costa Rica 72.78 100.00 Principal activities (outputs)* Wholesale and retail trade Wholesale and retail trade (10.5%) (9.6%) Central banking activities House rental and other services (6.3%) (6.0%) House rental and other services Central banking activities (6,1%) (5,3%) Source: BCCR 2020. The South Corridor has local economies with FIGURE 2. South Corridor enterprises are smaller than those fewer production linkages. This is due to the based in the GAM dependence on local services that require minimal inputs, undermining the opportunity for produc- 100% tion linkages. The contrast between the South 14 7 73 2,736 Corridor cantons and the overall region is, howev- 80% er, striking: in the GAM, sales (total outputs) and purchases (inputs) across the region are approxi- 60% mately similar; while in all South Corridor can- 103 87 650 15,963 tons, the aggregate of outputs oscillates between 40% two and five and a half times the aggregate of 20% inputs. 0% 3 17 586 Overall, South Corridor enterprises are smaller Alajuelita Aserrí Desamparados GAM than those based in the GAM. Although the Medium Micro Small differences are relatively small, it is noticeable that the GAM has a larger share of SMEs than Desamparados and Alajuelita (see Figure 2). These Source: Ministry of Economy, Industry, and Commerce (MEIC) 2021.36 cantons also have a lower share of microenterprises Note: The figure shows the number of businesses registered as small and medium enterprises (SMEs) than Aserrí. Note that although the differences in September 2021. Labels indicate the total number of enterprises in each category. in terms of the number of enterprises may seem slight, they are not marginal. The definition of SMEs in Costa Rica depends on the number of employees, assets, and annual sales of each a few medium-size enterprises may account for business, and may imply different magnitudes much more productive activity than many micro in terms of annual production. This means that or small enterprises. 36 MEIC, September 2021. https://www.meic.go.cr/meic/web/761/datos-abiertos/pyme/registro-de-empresas.php A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 38 The South Corridor economy, like the rest The South Corridor is home to 14.1 percent of of the GAM and the country, is strongly tied the GAM's population; however, it accounts to the cantons of San José and Alajuela. This for only 7.4 percent of the GAM's workers confirms the findings mentioned in Chapter 1 on (2011 Census). Based on the 2011 Census, the the concentration of activity and importance of South Corridor's workforce is concentrated in the certain cantons in the GAM. The canton of San tertiary or service sector and wholesale and retail José is the primary source of inputs for production trade (75 percent), and about 20 percent in the in the South Corridor, followed by the canton secondary or manufacturing sector. Out of every of Alajuela. Collectively, they account for about 100 workers, 85 are employed by the private sector 60 percent of the input production value for the (Table 4), in both the South Corridor and GAM South Corridor. Table 3, which disaggregates pro- cantons. As seen, these figures are consistent with duction by the origin of inputs, confirms the total the characteristics of South Corridor output as dominance not only of GAM within the national described in the preceding section. The shares economy but also of the canton of San José (and of private sector workers are relatively constant to a lesser extent, Alajuela) within the national, across cantons, so although the employer structu- GAM, and South Corridor economies. About re provides some resilience to the South Corridor half of the production inputs of Desamparados, cantons, it is not an advantage over other cantons Aserrí, and Alajuelita come from San José and in the region. about 10 percent from Alajuela. TABLE 3. Cantons of Alajuela and San José are the leading input suppliers for the South Corridor (2017) Spatial Unit Desamparados Aserrí Alajuelita GAM Costa Rica Total outputs (US$, millions) 1,134.4 159.6 223.3 20,094.8 27,610.5 Primary input supplying San José 54.48 San José 50.44 San José 53.26 San José 48.75 San José 46.87 cantons (%)* Alajuela 11.48 Alajuela 11.69 Alajuela 11.19 Alajuela 12.88 Alajuela 13.14 Limón 2.73 Heredia 3.49 Cañas 2.89 Limón 2.66 San Carlos 2.87 Heredia 2.57 Corredores 3.30 Heredia 2.70 San Carlos 2.58 Limón 2.63 Source: Central Bank of Costa Rica - BCCR 2020. Note: * Percentage of total output. TABLE 4. South Corridor workers share similar economic activity to GAM workers, but they tend to work outside of the canton where they live. Percentage of the working Percentage of position population in employment Workplace In the Secondary Tertiary Private Self- Salaried same In another In several Canton Sector sector sector Employer employed employee canton canton cantons Costa Rica 18.0 68.2 84.7 6.6 20.6 71.8 63.8 33.0 3.0 San José 18.9 80.4 84.9 7.2 18.6 73.6 64.5 31.4 3.9 Escazú 16.8 80.7 91.0 12.7 18.6 67.9 54.0 42.3 3.0 Desamparados 19.6 78.2 84.6 5.7 20.2 73.6 41.8 52.0 6.0 Aserrí 19.0 73.8 83.1 5.5 20.1 73.7 40.6 54.4 4.8 Mora 16.2 75.6 83.8 8.1 18.3 72.9 45.3 51.0 3.4 Goicoechea 16.7 82.3 83.3 7.0 17.5 74.9 40.9 54.3 4.6 Santa Ana 17.8 79.2 90.8 11.8 16.9 70.5 55.4 40.8 3.2 Alajuelita 22.6 76.6 87.5 6.7 19.6 73.3 32.2 61.5 6.1 Continues > A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 39 TABLE 4. South Corridor workers share similar economic activity to GAM workers, but they tend to work outside of the canton where they live. (Continued) Percentage of the working Percentage of position population in employment Workplace In the Secondary Tertiary Private Self- Salaried same In another In several Canton Sector sector sector Employer employed employee canton canton cantons Coronado 16.2 81.7 82.0 6.8 17.5 75.0 38.6 56.8 4.4 Tibás 17.1 82.1 83.5 7.3 18.4 73.7 39.9 55.4 4.4 Moravia 16.1 82.1 83.1 7.9 18.6 72.9 36.8 57.8 5.1 Montes de Oca 12.4 86.5 80.0 9.3 16.5 73.5 46.4 49.6 3.6 Curridabat 17.5 81.2 85.6 10.0 17.9 71.3 40.7 53.8 5.0 Alajuela 26.9 67.4 88.2 6.1 16.8 46.5 64.9 32.1 2.8 Atenas 20.4 67.1 80.9 7.1 20.5 71.4 65.7 30.8 3.3 Poás 24.4 58.7 87.3 5.0 17.0 77.5 55.0 40.9 3.9 Cartago 23.3 66.5 83.5 6.1 20.0 73.3 62.6 33.7 3.6 Paraíso 23.3 60.6 82.3 5.2 19.0 75.2 55.2 41.1 3.6 La Unión 20.1 78.1 84.2 6.0 16.9 76.6 38.1 56.4 5.2 Alvarado 14.6 42.1 91.7 6.4 28.4 64.4 68.6 27.3 4.1 Oreamuno 20.4 59.6 86.3 5.3 20.5 73.7 50.2 45.4 4.2 El Guarco 28.7 59.1 86.9 6.1 22.9 70.0 56.1 39.6 4.1 Heredia 23.0 75.8 82.6 6.7 14.8 78.0 49.9 46.3 3.5 Barva 19.6 76.7 80.5 7.1 17.0 75.1 36.9 57.3 5.5 Santo Domingo 18.7 78.8 82.5 7.7 17.3 74.5 41.1 54.0 4.7 Santa Bárbara 24.5 69.6 85.8 6.4 17.4 75.7 37.4 56.9 5.5 San Rafael 21.6 75.9 82.0 7.1 17.8 74.6 37.2 57.2 5.4 San Isidro 18.1 77.2 81.7 6.9 17.7 74.7 38.4 57.0 4.5 Belén 26.0 71.3 90.4 10.5 13.5 75.0 51.8 45.8 2.1 Flores 24.0 74.0 83.3 8.9 14.8 75.7 37.2 59.0 3.6 San Pablo 17.7 81.0 77.6 7.5 14.8 77.3 26.4 69.3 3.9 Source: INEC 2011. The vast majority of workers in the South higher than in other cantons of the AMSJ. In the Corridor are salaried employees. Estimates cantons of San José, Escazú, and Santa Ana, this suggests that 74 percent of workers are salaried percentage ranges between 30 and 40 percent. The employees; 20 percent are self-employed and less percentages in other cantons (such as Goicoechea, than 6 percent are entrepreneurs (Table 4). These Montes de Oca, or Curridabat) are similar to percentages are similar to other GAM cantons, Desamparados (58 percent) but lower than other except for rural cantons (which have lower per- cantons. When compared to the GAM, Alajuelita centages of wage earners and higher percentages is the canton with the second-highest percentage of self-employed, such as Alvarado or El Guarco of inhabitants working elsewhere. in Cartago) or the canton of Escazú, which concentrates wealth and has a higher share of One of the key challenges faced by the South employers. Corridor is the high percentage of unskilled employment in its population—a common The South Corridor can be considered challenge shared by several of the GAM's can- a dormitory zone—58 percent of the South tons. Sixteen percent of employment in Alajuelita Corridor’s workforce works outside the canton, is unqualified; 15 percent in Aserrí, and 13 per- with the highest percentage found in Alajuelita, cent in Desamparados (Figure 3). This genera- with 68 percent. These percentages are slightly tes employment instability and low wages that A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 40 impact poverty and inequality levels. However, the top five cantons with the highest percentage of when compared to other cantons in the region, inadequate housing in the GAM are located in the unskilled employment in the South Corridor is South Corridor. The South Corridor cantons are not particularly high. The issue is pressing for among the poorest urban and rural cantons in the many cantons in the region and especially severe GAM with schooling averaging less than 9 years.37 in the rural cantons of the GAM, such as Atenas, This relationship between the share of unskilled Paraíso, Oreamuno, Poás, and Alvarado. workers and inadequate housing demonstrates the effect of unskilled labor on household welfare. In the South Corridor and the GAM, the per- The South Corridor cantons have very small per- centage of unskilled workers is correlated with centages of primary sector employment. Around poor-quality housing conditions. The percen- 20 percent of jobs in the South Corridor are in the tage of unskilled workers, by canton, is correlated secondary sector, thus occupying the mid-range in with low average years of schooling and poor hou- the ratio of unskilled workers to secondary sector sing conditions (Figure 4). For example, three of workers. FIGURE 3. The percentage of workers in unskilled jobs in the South Corridor is not as large as in other rural cantons of the GAM 50.0 40.0 30.0 20.0 10.0 0.0 Alvarado Poás Oreamuno Paraíso Atenas Santa Ana Alajuela El Guarco Escazú Santa Bárbara Mora Alajuelita San Isidro La Unión Aserrí Curridabat Cartago San José Barva San Rafael Desamparados Santo Domingo Coronado Goicoechea Belén Flores Tibás Heredia Moravia San Pablo Montes de Oca Source: INEC 2011. FIGURE 4. The percentage of unskilled workers is correlated with average years of schooling, housing condition, and the percentage of workers in the primary or secondary economic sectors. 50,0 50.0 Percentage of unskilled Percentage of unskilled 40.0 40.0 30.0 30.0 workers workers 20.0 20.0 Alajuelita Aserrí Alajuelita 10.0 Aserrí 10.0 Desamparados Desamparados 0.0 0.0 6.00 8.00 10.00 12.00 1.0 3.0 5.0 7.0 9.0 Years of schooling Percentage of poor -quality housing 50.0 50.0 Percentage of unskilled Percentage of unskilled 40.0 40.0 Alajuelita Alajuelita workers 30.0 Aserrí 30.0 Aserrí workers 20.0 20.0 10.0 10.0 Desamparados Desamparados 0.0 0.0 0.0 10.0 20.0 30.0 40.0 0.0 20.0 40.0 Percentage of workers in the primary sector Percentage of workers in secondary sector Source: INEC 2011. Note: Percentage of unskilled employed workers by canton according to socioeconomic characteristics based on the 2011 census: years of schooling, housing in poor condition, and sector of work. 37 In Costa Rica, primary and secondary education total 11 years; 9 of these correspond to primary plus the lower secondary cycle. These 9 years are designated as basic general education and are compulsory. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 41 III. High Incidence of Poverty and Unmet Basic Needs in the South Corridor cantonal median is just 13.6 percent. The twelfth A. The incidence of poverty in the place goes to Desamparados. In terms of inequal- South Corridor is higher than in ity, the Gini coefficient for the three cantons is the region as a whole, and one 0.46, surpassed only by the cantons of Oreamuno of its consequences is heightened and Mora with 0.47 (refer to the discussion about insecurity inequality in Chapter 1). The South Corridor cantons have some of the The South Corridor has higher levels of inse- highest incidence of poverty and inequality in curity than the GAM as a whole. In 2016, the the GAM. The total number of poor households three cantons of the South Corridor recorded in the South Corridor is over 16,000, which 56 homicides (accounting for 17.9 percent of the accounts for 18 percent of the total number of GAM-wide total that year), 1,162 cocaine and poor households in the GAM and 6 percent of crack busts (7.8 percent of the regional total), and total households nationwide. As shown in Table 3,060 marijuana busts (7.2 percent of the regional 5, the South Corridor cantons have higher than total). The three South Corridor cantons had median values for poverty and inequality percent- homicide rates in 2016 that were far higher than ages. Desamparados has lower poverty levels than both the GAM cantonal median (corresponding Alajuelita and Aserrí, although inequality levels to El Guarco canton, 6.7 homicides per 100,000 are similar. inhabitants) and the regional average (14.5 homi- cides per 100,000 inhabitants). The evidence on Of the 31 cantons in the GAM, Alajuelita ranks drug crackdowns is less clear, but the cocaine and fifth highest in poverty incidence and Aserrí crack seizure rates in Desamparados and Alajuelita sixth. One out of every five households in both are higher than the GAM cantonal median. As Aserrí and Alajuelita is in poverty—the GAM discussed in Chapter I, Costa Rica's insecurity TABLE 5. Poverty and inequality in the South Corridor cantons are higher than the regional median and so is insecurity Percentage of poverty Citizen insecurity Income Poverty Extreme Marijuana Cocaine and Canton line for UBN Poverty for UBN Gini index seized crack seized Homicides Desamparados 15.8 16.2 3.2 46.3 601.6 337.5 9.8 Aserrí 20.2 21.0 4.4 46.3 1,527.6 207.1 19.6 Alajuelita 20.5 21.2 6.3 46.1 789.6 268.1 23.6 GAM Median 13.6 14.2 3.1 45.8 1,028.3 238.8 6.7 (Canton falling at median) San Rafael Santa Ana Goicoechea San Rafael Alvarado Curridabat El Guarco Source: 2011 INEC poverty and inequality data; 2016 Costa Rican Drug Institute's drug seizure data; 2016 Judicial Investigation Department's homicide data. Note: Poverty rates and Gini index as a percentage. Seizure and homicide rates per 100,000 inhabitants. UBN = Unmet Basic Need. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 42 is highly concentrated geographically. Of the The UBNs reflect low-income households' lack 33 key drug-and-violence-ridden districts, two of access to infrastructure or public services. (Los Guido in Desamparados and San Felipe de UBN indicators are used to measure and char- Alajuelita) are located in the South Corridor; acterize the poverty of Costa Rican households other districts that contribute to a higher pro- and are directly related to the provision of infra- portion of drug seizures in the South Corridor structure and public services nationwide. In Costa include the districts of Alajuelita, Desamparados, Rica, the state is responsible for supplying these San Miguel, and San Rafael Abajo. minimum services for households living in pov- erty and, in general, for the majority of the Costa B. Unmet basic needs38 in the South Rican population (with the exception of hous- Corridor are higher than in the ing, for which the government only focuses on GAM, albeit lower than in the the low-income population). First, in terms of country overall access to decent housing, the state supplies social housing to lower-income households. Second, Population growth in the South Corridor has for access to a healthy lifestyle, the Costa Rican not been proportional to the provision of ser- state is entirely responsible for public water and vices, infrastructure, and employment genera- sanitation infrastructure. Finally, the government tion, leading to deteriorating socioeconomic is responsible for education, with over 90 percent indicators in this area. As illustrated in Figure of primary and secondary enrollment in public 5, the share of households with UBNs39 is gener- schools. ally higher in the South Corridor than the GAM average, albeit lower than the national average. In the South Corridor, 9.1 percent of house- As mentioned in Chapter 1, it is noteworthy that holds lack adequate housing. More people live national economic activity is highly concentrated in inadequate homes in the South Corridor com- in the GAM; this greater prosperity is reflected in pared to the GAM as a whole, where ‘only’ 7.7 overall better urban infrastructure than in the rest percent live in inadequate homes. (Figure 5). The of the country. deficiencies in this indicator are related, in part, to FIGURE 5. South Corridor enterprises are smaller than those based in the GAM 30 27.2 24.1 25 20.3 19.5 20.1 20 16.2 15 11.5 9.1 10.4 9.2 9.6 10 7.2 7.7 6.4 6.5 7.7 4.6 4.1 4.7 4.7 5 3.2 0 Al least with With one With 2 or Lack of access Lack of access Lack of access Lack of access one UBN UBN more UBNs to adequate to healthy to knowledge to other goods housing environment and services Arco Sur GAM Costa Rica Source: Ministry of Economy, Industry, and Commerce (MEIC) 2021.36 Note: The figure shows the number of businesses registered as small and medium enterprises (SMEs) in September 2021. Labels indicate the total number of enterprises in each category. 38 The indicators of UBNs were defined by Méndez and Trejos (2004) as a method for identifying critical needs based on census information. They are four: (a) shelter, which identifies substandard dwellings (built with inferior or scrap materials, no electricity, or with overcrowding); (b) health, which measures access to safe drinking water or sanitation; (c) knowledge, which measures the educational attendance and achievement (progress) of children under 17 years of age in the household; and (d) consumption, which considers education, age and environment (urban/rural) of the adults contributing income to the household—because these variables correlate with household income, measured through household surveys (Méndez and Trejos 2004). 39 Refer to Section III, Chapter 1 (specifically footnote 22), as well as to Méndez and Trejos (2004) for the definition of UBN indicators. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 43 the concentration of social housing in the South Formal education enrollment and educational Corridor. Although housing may have originally attainment of South Corridor youth are lower been of high quality, housing maintenance is a than in the GAM and the country as a whole, widespread challenge in Costa Rica. As described as evidenced by the incidence of the UBN for in Chapter 1, housing subsidies in Costa Rica lack of access to knowledge (Figure 5). This are one-time grants rather than subsidized credit incidence is 9.2 percent in the South Corridor, or conditional transfers. This encourages already which means that children and youth ages 7 to 17 ‘formalized’ housing to slip back into informal- are mostly in school and, on average, with little ity because the maintenance cost, particularly time lag between their age and the normal grade to keep it in good physical condition, exceeds level expected for their age group. This figure is the means of families (Galiani and Schargrodsky slightly lower than the incidence in the GAM (9.6 2011). Today, much of the social housing stock is percent) and lower than the national incidence between two and three decades old and mainte- (11.8 percent, see Figure 5). Given the historical nance issues have already piled up. characteristics of Costa Rican education (the uni- versalization of primary education and the still- About 4.7 percent of households in the South existing challenges of secondary education cover- Corridor lack access to safe water and sani- age), it is to be expected that the UBN related to tation services (‘healthy environment’), more the lack of access to education would concentrate than the GAM average. The vast majority of on older youth. households in the South Corridor and the wider GAM have access to safe drinking water and The incidence of UBNs in terms of consumption waste disposal systems that protect them from capacity is 6.5 percent in the South Corridor: disease.40 In general, this indicator tends to have higher than the GAM average but lower than smaller incidences than other UBN indicators the national average (see Figure 5). This result because access to drinking water in Costa Rica is is consistent with both the characteristics of the provided by a state-owned company (the Costa workforce and the various indicators of poverty, Rican Institute of Aqueducts and Sewerage inequality, and their consequences. In general, [AYA]), which delivers the service directly or sup- South Corridor households have more unskilled ports municipal or rural waterworks. This same members, implying that their chances of making a institution is entrusted with providing access to personal income are limited. However, as it is part sanitation. The successful implementation of this of the largest urban economy of the country (the scheme translates into generalized, though not GAM), a higher degree of human capital (that is, universal, coverage of access to piped water. Based education in the labor force) with respect to the on the 2011 census, 93.0 percent of occupied national average is to be expected and is part of the dwellings have running water, a figure that rises advantages that poor households in urban areas to 98.4 percent when only urban dwellings are like the South Corridor can expect in contrast considered. with rural areas of Costa Rica. As discussed in Chapter 1, access to sanita- C. The South Corridor struggles tion infrastructure in Costa Rica, including the with access to health care, higher South Corridor, is poor. The UBNs related to a education, and childcare services healthy environment are low because the septic tank has been considered an appropriate sanita- Day care coverage is low in the South Corridor, tion technology for households across the board. representing an obstacle to women's integration However, this condition may not be adequate into the labor market. The share of children under for many households in Costa Rica, especially in 5 attending day care, nursery, or prekindergarten the South Corridor, given its population density stands at 11 percent in Alajuelita, 12 percent in characteristics. Aserrí, and 14 percent in Desamparados, while 40 The public health nature of the indicator should be emphasized: septic tanks are among the wastewater treatment systems considered acceptable under the indicator but may cause groundwater contamination under certain physical and urban environment conditions. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 44 the GAM average exceeds 19 percent (Figure 6). The primary health care coverage of the The Costa Rican state has endeavored to expand Comprehensive Multidisciplinary Primary the early childhood development systems in the Health Care Teams (Equipos Básico de last decade, but the gap in the South Corridor ver- Atención en Salud, EBAIS) is inadequate in sus the GAM is predictably widening. This poses the South Corridor. 42 The South Corridor's a barrier primarily to the labor market incorpora- population as of 2021 was 379,824 people, rela- tion of women.41 tive to 69 EBAISs registered. One EBAIS is considered to have an optimal level of coverage of The share of the population in the South 4,500 inhabitants, so there is a shortfall of at least Corridor age 17 years and older who have a ter- 16 EBAISs in the South Corridor, distributed tiary education is low (see Figure 6). In Alajuelita equally between Desamparados and Alajuelita. it was 11 percent, 12 percent in Aserrí, and 14 per- In Aserrí, the current population may be covered cent in Desamparados, placing them among the by the EBAIS located within this canton. The eight cantons in the GAM with the lowest percen- service gap within the GAM is notorious and is tage. The average value for the GAM is around 30 present to a greater or lesser extent in 80 percent percent, while 10 cantons have a percentage bet- of the cantons (Figure 7). On the other hand, ween 30 percent and 40 percent, and five cantons both the cantons of the South Corridor and the have percentages over 40 percent. This deficiency GAM generally benefit from the concentration is consistent with the poverty characteristics of of secondary and tertiary level hospitals (higher the South Corridor and the UBNs related to specialization), which take care of more complex consumption. problems, in the neighboring canton of San José. FIGURE 6. South Corridor cantons rank among the lowest in day care coverage and population with a college education 50.0 40.0 30.0 20.0 10.0 0.0 Montes de Oca San Pablo Curridabat Escazú Moravia Santa Ana Heredia Santo Domingo Belén Flores Tibás Barva Mora San Isidro San Rafael Coronado Atenas San José Goicoechea La Unión Cartago Alajuela Santa Bárbara Desamparados El Guarco Oreamuno Poás Aserrí Paraíso Alajuelita Day care, nursery, or prekindergarten coverage Population with college or university education Alvarado Source: INEC 2011. 41 This problem is severe all over Latin America, where female labor force participation rates are low in many countries: in the case of Central American countries, including Costa Rica and Mexico, the rate stood at around 50 percent in 2015; in contrast, this percentage was 65 percent or higher in Uruguay and Brazil, 60 percent in Colombia and Trinidad and Tobago, and 55 percent in Chile (Mateo and Rodríguez-Chamussy 2017). A significant correlation of this labor force participation rate with the percentage of children age 0-3 years who attended childcare centers has also been found: in Central America and Mexico, this share was less than 10 percent; 20 percent in Trinidad and Tobago; 30 percent for Colombia; 35 percent for Chile; and 50 percent for Uruguay (for Brazil, atypically, this share was 25 percent). See Figure 4. 3 in Mateo and Rodriguez-Chamussy (2017). 42 Primary health care in Costa Rica is provided by the EBAIS. The role played by the primary health care infrastructure has a significant impact on the improvement of the living conditions of the population. An EBAIS entails the assignment of a primary health care team to a geographical sector whose population is around 4,500 inhabitants, defined by demographic criteria, means of communication and accessibility, number and type of available human resources, allocation of resources as needed, use of lower-cost infrastructure, cost-benefit, and economies of scale. Their objective is the actual improvement in gaining access to health care services, with a bio- psycho-social approach to the health-disease process, providing comprehensive and continuous care for the health of persons and the environment, with emphasis on promotion and prevention, based on the Primary Health Care strategy. Services and activities include general medical consultations, educational lectures, vaccinations, home visits, and programs for children, adolescents, women, and the elderly. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 45 FIGURE 7. More EBAISs are required in Alajuelita and Desamparados to meet their primary health care needs 50 43 40 30 24 18 20 8 8 10 8 10 3 4 6 3 4 3 4 5 4 3 0 0 0 2 1 1 0 0 1 1 2 1 1 0 0 Alajuela Alajuelita Alvarado Atenas Barva Belén Cartago Curridabat Desamparados El Guarco Escazú Flores Goicoechea Heredia La Unión Montes de Oca Mora Moravia Oreamuno Paraíso Poás San Isidro San José San Pablo San Rafael Santa Ana Santa Bárbara Santo Domingo Tibás Coronado Aserrí Source: Estimated based on INEC (2021) and on Contraloría General de la República (2015). The population growth from 2000 to 2011, probably associated with the absence of investment accompanied by public underinvestment, in health care services in Costa Rica, especially in seems to have hurt health services along the primary health care. Indeed, as discussed, EBAIS South Corridor. Overall, the GAM saw per coverage in the South Corridor in 2011 was capita outpatient and ER visits rise, including in inadequate. the South Corridor cantons (Figure 8). This is FIGURE 8. Population growth between 2000 and 2011 is associated with increasing demands per capita for health services in the GAM and the South Corridor Outpatient visits per capita ER visits per capita 35,000 35,000 25,000 25,000 15,000 15,000 5,000 5,000 -5,000 0.00 2.00 4.00 6.00 -5,000 -2.00 -1.00 0.00 1.00 2.00 3.00 -15,000 -15,000 -25,000 -25,000 Source: Caja Costariccense del Seguro Social (2021) Note: On the vertical axis, population growth between 2000 and 2011; the circles indicate medical visits in 2011; dashes, in 2000. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 46 IV. Weak Planning, Underinvestment in Infrastructure, and Concentration of Social Housing are the Main Challenges in the South Corridor A. The absence of regulatory land- Vuelta de Jorco. Although authorities enforce real- use plans and the presence of locations periodically in the high-risk areas, infor- buildings in hazardous areas mal settlements are often built back. Additionally, create risk scenarios in the South the actions implemented by the municipalities of Corridor the South Corridor oriented to climate change adaptation and mitigation show little relation Municipal planning instruments for the South with planning normatives in the medium and long Corridor cantons, particularly regulatory term. In this regard, the National Comptroller land-use plans, are outdated or nonexistent. Office recommended better coordination and alli- Currently, only the canton of Desamparados in ances with other municipalities within the area, the South Corridor has a regulatory plan, but it is such as Escazú and Santa Ana, to exchange good outdated. Alajuelita and Aserrí are in the process practices and lessons that can be replicated. of defining their municipal land-use regulations (see detailed information on these processes in Between 2005 and 2011,43 Desamparados was this Chapter). Although it is a time-consuming the canton with the highest recurrence of flood approval process, it is expected that land-use man- events. During this period, Desamparados expe- agement—particularly concerning the risks of rienced 22 flood events during each rainy season, extreme events—will improve in the long run due to its vulnerability, resulting in losses exceed- once these municipalities have appropriate and ing US$10 million (US$30.61 million); similar updated regulatory tools in place. events affected cantons such as Pérez Zeledón and Acosta (adjacent to Desamparados and Aserrí). An The South Corridor is one of the areas with the analysis of the disaster risk prevention measures highest number of active landslides, surveilled adopted by the municipality of Desamparados and monitored by the National Commission (2013) indicates that despite the existence of a for Risk Prevention and Emergency Attention regulatory land-use plan and the consideration of (Comision Nacional de Emergencia, CNE) and natural hazards and special control zones, the plan local authorities in the GAM. Areas remain that does not prevent construction in all risky areas or are prone to landslides in the communities of San require mitigation measures in all cases; in some Miguel, near cerro Tablazo, in Desamparados; cases, building permits are granted solely on the San Antonio district, in Alajuelita, near cerro basis of compliance with seismic and foundations Cascabela; and in Aserrí, in the central district and codes. 43 Based on Estado de la Nación report (2013). A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 47 Both informal (precarious) and formal settle- FIGURE 9. With no control or technical studies, ments are exposed to disasters in Alajuelita. the vulnerability of the canton of Alajuelita is high Nationally, Alajuelita ranks fourth with the high- est number of informal (precarious) housing units (1,000 households) located in the San Felipe district, which is highly vulnerable to disasters. La Violeta slum is located on landslide- and flood-prone land, just like most slums in the GAM. They have been repeatedly evacuated and the families relocated to safe places (Estado de la Nación, 2013). But there is also significant expo- sure of formal housing: the formal urbanization in Calle El Mango, in San Josecito de Alajuelita was affected by a landslide in 2017 and 2018, despite hazard warnings issued by geologists of the CNE. Nonetheless, the information on haz- ard location was not taken into account when Landslide risk area formal housing construction took place in these areas. Despite efforts on behalf of the municipal- ity of Alajuelita44 to mitigate the risk, the lack of a sustained risk prevention plan and regulatory land-use plan have undermined their effectiveness. Source: Authors based on Sistema Nacional de Información Territorial (https://www.snitcr.go.cr/) FIGURE 10. The urban and rural FIGURE 10. The urban and rural topography of the canton topography of the canton of Aserrí of Aserrí Source: The right photo is taken from the Municipality of Aserrí's Source: Photos taken from the Aserrí Municipal Mayor's Report, website and the left photo from the Facebook page of the District 2015–2016. Council of Vuelta de Jorco, Aserrí. 44 Actions include cleaning up culverts; replacing pipes to increase channel hydraulic capacity; excavating, dredging, and rechanneling riverbeds; repairing bridges; and building roadside gutters, gabion walls, and slope protection work on some roads. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 48 Meanwhile, during the 2011–2012 period, Expansion of other urban amenities, and parks Aserrí invested approximately US$781,00045 in particular, lags throughout the GAM, espe- in risk mitigation works (slope stabilization, cially in the South Corridor cantons. These areas wall construction, and road rehabilitation, see combine urban development density with a lack of examples in Figure 10) and US$40,500 in emer- amenities. The fourth canton, in terms of square gency response. Although the local government meters of new parks built during this period in carries out disaster prevention and mitigation any of the GAM cantons, was Alajuelita, which tasks, the municipality has no technical instru- points to a municipal effort to upgrade the urban ments or qualified staff to assess the issuance of environment which should be promoted and sup- building permits in vulnerable areas. ported by the state. This opens the door for coop- eration with other agencies that use recreation and B. The South Corridor received little sports as a strategy to address inequalities and vio- investment in road and water lence, including the Institute for Social Assistance infrastructure in 2014–2020 (Instituto Mixto de Ayuda Social), the Institute of Sports and Recreation, and the Ministry of Out of the total area of public infrastructure Housing and Human Settlement and of Public built (roads, aqueducts, and parks) in the GAM Security. between 2014 and 2020, only 2.0 percent took place in the South Corridor (see Figure 12). Urban infrastructure coverage (electricity, Of the area built in the South Corridor, 81.9 potable water, and solid waste collection) in percent was roadways, 16.6 percent was catego- the South Corridor, like in the GAM, is very rized as parks, only 1.4 percent went into bridges strong. For electricity and potable water, cover- or waterworks. When compared against GAM age exceeds 98 percent (see Figure 13). Both totals, roads received a similarly high percentage electricity and potable water are run in the South of investment (92.3 percent of infrastructure in Corridor by state-owned companies; the solid the GAM), and bridge and aqueduct investments waste collection is a local service, although the similarly small (3.7 percent), but in contrast, the landfill where solid waste is dumped is regional. percentage for parks was much lower than the For further details on solid waste management, see South Corridor (2.3 percent). Spotlight in this review. FIGURE 12. South Corridor cantons have smaller investments in roads and parks than the region as a whole 700 600 500 400 300 200 100 0 Alajuela Heredia San José Cartago Tibás Santa Ana Curridabat Alajuelita Escazú La Unión Atenas Santo Domingo Belén Montes de Oca El Guarco Paraíso San Pablo Barva Goicoechea Moravia Flores Desamparados San Rafael Coronado San Isidro Mora Oreamuno Poás Aserrí Santa Bárbara Alvarado Acueducts Roads Parks Bridges Source: INEC 2011. 45 Based on the exchange rate effective as of November 2021. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 49 Approximately one-third of the households in the South Corridor. The aggregate subsidies in in the South Corridor discharge their sewage the three cantons of the South Corridor are simi- into the sewer, but most households use septic lar to the aggregate subsidies provided in the other tanks, which have become a challenge given ten cantons of the AMSJ combined and larger the high population density in these cantons than those provided in the Alajuela and Heredia (Figure 13). Like the entire GAM, much of the Metropolitan Areas, which are twice as populated sanitation solutions in South Corridor house- as the South Corridor. holds has been decentralized, using septic tanks (as opposed to being connected to the sewer This concentration has been consistent over system). This follows a regional regulatory vision time. Since 1987, 130,000 housing subsidies have (INVU 1983) that engineered the city's urban been granted throughout the GAM. Based on form as individualized, relatively low-density dwe- the 2011 census, the GAM had 662,706 housing llings, with landscaped private patios. This yard units, suggesting that between 10 and 20 percent would have served as a drainage area, resulting in of the region's housing stock was financed by the the septic tank as an effective treatment alterna- state, with a strong concentration in the South tive. However, the reality of the regional urban Corridor (some social housing may have been development resulted in far greater densification demolished or converted to other uses). The South than anticipated. The current sanitation situa- Corridor has accounted for roughly 42 percent tion suggests the need for small-scale solutions to 53 percent of total subsidies in the AMSJ (see to complement the regional sanitation system Chapter 1 for more detail on social housing in (GAM sewerage system operated by the AYA; see other GAM areas). Rosales, Kohler, and Zamora 2012). The number of housing units built throug- C. The South Corridor concentrates hout the region has declined consistently since social housing in the GAM 1987. The emergence of large-scale informal sett- lements in the GAM prompted the creation of the Public investment in social housing has been national housing program (el Sistema Financiero notably concentrated in the South Corridor Nacional de la Vivienda). At the outset of the pro- cantons (Pujol, Pérez, and Sánchez 2014). The gram, housing solutions were disproportionately Costa Rican social housing program provides over-concentrated there. Since then, the relative cost-free housing to families that cannot access decline of the amount of housing subsidies in the homeownership through the real estate market. GAM, in part, is an extension of Costa Rica’s bro- Table 6 shows the number of housing subsidies ader system, which favors relatively lower-income that have been granted by the state to GAM-based families and families with access to a plot of land beneficiary families (a housing subsidy is roughly (both criteria favoring many families in non- the equivalent of a social housing unit). Social hou- GAM rural cantons). sing subsidies in the GAM have been concentrated FIGURE 13. Urban infrastructure coverage for occupied dwellings is nearly universal in the South Corridor (with the possible exception of sanitation) 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Homes with access Homes with access Homes with access Homes with Homes with access to electricity to safe water1/ to sewage systems septic tank to garbage collection trucks Source: INEC 2011. Note: 1/ Non-safe water includes wells, streams, springs, and others (including water cisterns). A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 50 TABLE 6. Housing subsidies provided in different GAM areas (1987–2018) Spatial Unit 1987–1993 1994–2000 2001–2007 2008–2014 2015–2018 Total Desamparados 5,827 2,804 1,798 1,190 650 12,269 Aserrí 753 1,330 603 688 388 3,762 Alajuelita 3,256 1,700 912 291 204 6,363 Rest of San José Metropolitan Area 11,940 7,854 2,984 2,468 1,245 26,491 Alajuela Metropolitan Area 4,781 6,165 3,032 2,045 509 16,532 Cartago Metropolitan Area 93,00 11,644 4,893 5,627 2,460 33,924 Heredia Metropolitan Area 7,188 4,485 2,656 1,297 601 16,227 Source: Ministry of Housing and Human Settlements - MIVAH 2016 and 2018. The concentration of social housing has other The South Corridor displays significant diffe- negative local impacts. First, unless social hou- rences in their concentrations of social hou- sing developments are accompanied by comple- sing; Desamparados being the largest and mentary sectoral investments, including more and most diverse canton. This implies that the nega- better schools, electricity, internet, and public tive externalities of social housing concentration transit, they can reinforce cycles of poverty. differ across cantons and even within cantons. Complementary investments are determining fac- Note that the South Corridor has been approa- tors in promoting human capital development ched as a unit in this analysis; however, there are and thus local economic development. However, substantial differences in the impacts and con- the opposite is happening in the South Corridor. centration of social housing in the three South Social housing developers (public and private) are Corridor cantons. Desamparados, in particular, not required to provide complementary infras- is diverse and has both low-income and high- tructure. Second, social housing developments income concentrations, such as the San Antonio tend to provide facilities of lesser quality than district. Alajuelita concentrates much of the pro- those demanded from private developers building blem in its three most populated and urban other types of housing, for example, narrower districts: Alajuelita, but especially San Felipe and streets and sidewalks and smaller or non-existent Concepción. Some districts and areas of Aserrí playgrounds. Third, because they are exempt from and Desamparados more closely resemble these property tax, they erode the municipal revenue tax poverty concentrations, dominated as they are by base; this issue is especially pressing in Alajuelita relatively old social housing developments. One of (see Chapter 4). the classic examples in this regard is the district of Los Guido in Desamparados, with a succession of social housing developments that formalized an informal settlement. A TERRITORIAL APPROACH TO THE SOUTH CORRIDOR | CHAPTER 2 51 References Caja Costarricense del Seguro Social. 2021. Estadísticas actuariales. Available at: https://www.ccss. sa.cr/estadisticas-actuariales (Accessed: 8 Nov. 2021). Contraloría General de la República. 2015. Informe de la auditoría operativa sobre la eficiencia y eficacia de la gestión del servicio de consulta externa-medicina general en el primer nivel de atención de la CCSS. Informe No. DFOE-SOC-IF-26-2015. San José, Costa Rica: CGR. Galiani, S., and E. Schargrodsky. 2011. The Dynamics of Land Titling Regularization and Market Development (Working Paper No 2011/88). UNU-WIDER. Helsinki, Finland. Retrieved from: https://www.wider.unu.edu/publication/dynamics-land-titling-regularization-and- market-development Gutiérrez, J., W. van Vliet, E. Arias, and R. Pujol. 1993. “In Defence of Housing. Housing Policies and Practices in Costa Rica.” Habitat International 17 (2): 63–72. INEC. 2021. X Censo Nacional de Población y VI de Vivienda 2011. Available at: (Accessed: 8 Nov. 2021). INVU. 1983. Plan Regional de la Gran Área Metropolitana (Plan GAM). San José, Costa Rica: Dirección de Urbanismo del INVU. Mateo, M., and L. Rodríguez-Chamussy. 2017. Educación que rinde. Mujeres, trabajo y cuidado infantil en América Latina y el Caribe. Washington DC: Banco Interamericano de Desarrollo. Méndez, F., and J. D. Trejos. 2004. “Costa Rica: Un mapa de carencias críticas para el año 2000.” In Costa Rica a la luz del censo 2000, edited by L. En Rosero. San José, Costa Rica: Centro Centroamericano de Población de la Universidad de Costa Rica. MIVAH. 2016. Informe compendio estadístico. Reporte socioeconómico y de vivienda en Costa Rica. Año 2016. San José, Costa Rica: el ministerio. MIVAH. 2018. Compendio Estadístico de Vivienda 2018. San José, Costa Rica: el ministerio. PEN (Programa Estado de la Nación). 2017. Sexto informe estado de la educación. San José, Costa Rica: PEN y CONARE. Pujol, R., E. Pérez, and L. Sánchez. 2014. “Informalidad en la vivienda de la Gran Área Metropolitana: El impacto de los proyectos de vivienda social, 2000-2011.” Costa Rica a la luz del Censo 2011, edited by J. En Barquero et al. San José: INEC. Rosales, E., P. Kohler, and L. Zamora. 2012. “El saneamiento ambiental en Costa Rica: un desafío pendiente En: Serie.” Evidence for Policy. Edición Regional de Centroamérica y el Caribe. No. 3. San José, Costa Rica: NCCR Norte-Sur. Disponible en: http://www.north-south.unibe.ch/ Rovira, J. 1985. “Del desarrollo de Costa Rica y su crisis en el periodo de postguerra: 1948-1984.” Anuario de Estudios Centroamericanos 11 (1): 23–42 Valverde, J. M., and M. E. Trejos. 1993. “Diez años de luchas sociales en Costa Rica (1982-1992).” Revista de Ciencias Sociales 61: 7–16. Yu, W., and J. Zaleski. 2019. The Leveraging Potential of Public Investments in Flood Protection. The case of Wroclaw, Poland. Washington DC: World Bank. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 52 CHAPTER 3 Connecting the South Corridor Authors Oscar Edmundo Díaz, Bernadette Gordyn, Pol Nadal Cros Spatial Analysis Nicholas Jones, Oliver Christian Lock, Maham Faisal Khan, Samuel Blackwell Heroy Introduction The sprawling and poorly planned urban opportunities for socioeconomic development growth in the Greater Metropolitan Area (Gran and quality of life, particularly in the periph- Area Metropolitana, GAM) has conditioned eral cantons. The absence of attractive alternatives mobility patterns within the metropolitan area, to the use of private vehicles causes pressing traffic establishing a private vehicle-based model. The congestion issues and has consequences in terms GAM’s development process involved the conurba- of increased greenhouse gas (GHG) emissions and tion of a series of formerly isolated rural towns and air pollution. The loss of productivity due to travel small cities. The resulting scattered, low-density time and the increasing number of road accidents urban development model had serious impacts on impose heavy costs on society at large. The con- the transportation model. On the one hand, the straints in accessibility and the inequitable use of scarcity of jobs and facilities in the cantons sur- road space have perpetuated the segregation of rounding the GAM led to a functional dependence some territories, mainly those in the city outskirts. between them and the canton of San José, which Residents in these territories are cut off from public consolidated a growing inter-cantonal mobility pat- infrastructure and services, formal employment tern. On the other hand, the GAM lacks a high- opportunities, and other benefits that compact and quality public transport service that covers the well-connected urban areas provide, such as quality extensive metropolitan area. The existing network is public spaces and facilities for community interac- not integrated physically, technologically, operation- tion and development. ally, or in terms of fares. This inefficiency led to a GAM-wide steady decline in public transit ridership, Immediate actions are required to steer urban resulting in a growing private car ownership-based growth and mobility toward a more effi- transportation model. cient and inclusive model. Costa Rica made significant progress in territorial and mobility plan- The GAM's urban development model has ning, although implementation challenges per- negative externalities that undermine people’s sist. Integrating urban planning with mobility by CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 53 undertaking transit-oriented development (TOD) ing motorization and an inadequate and precarious projects; promoting an integrated, interconnected, road network; and (d) absence of incentives to pro- and high-quality public transport system; further mote active mobility. The chapter then describes the decarbonizing the transport sector and strengthen- negative externalities caused by the current urban ing the institutional framework of the sector, are and mobility model. After discussing some exist- key opportunities to balance urban development in ing mobility strategies, plans, and projects for the the GAM and enhance the connectivity of the South area, the chapter points to a series of suggestions Corridor's cantons. to improve the GAM’s connectivity and enhance access to opportunities for the population living in This chapter outlines the major barriers faced the peripheral cantons. by the South Corridor cantons in connectivity and accessibility to the development oppor- This chapter considers primary and second- tunities provided by the GAM and proposes a ary sources of information. This chapter was series of recommendations to reverse them. developed by reviewing plans, regulations, technical First, it presents an analysis of the key mobility chal- documents, research, and other secondary sources, lenges faced by the GAM and in particular by the and by sharing information through interviews cantons along the South Corridor: Desamparados, with municipal representatives from Desamparados, Aserrí, and Alajuelita. These include (a) unplanned Aserrí, and Alajuelita. Furthermore, it presents find- urban growth: mono-functional peripheral cantons ings based on innovative spatial and movement heavily dependent on the capital city; (b) limited, analyses, constructed by cross-referencing data from unintegrated, and low-quality public transport ser- Mapbox, Quadrant, Facebook, cell phones, censuses, vice that fails to meet the demand; (c) prioritization and other sources of information. of privately owned motorized mobility, with increas- CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 54 I. Challenges and Barriers to South Corridor Connectivity A. Unplanned urban growth led to As a consequence, this model led to a constant mono-functional peripheral districts, need for the population to move to the different heavily dependent on San José metropolitan hubs, especially San José, to meet their daily needs. The resulting traffic congestion causes mobility issues throughout the region. The GAM's urban development has not been accompanied by land-use planning, resulting The national government made some progress in a large, scattered, and underserved urban in land-use regulation in the GAM, but its sprawl. As introduced in Chapter 1, the GAM implementation has been limited. The Greater is the product of the coalescence of numerous Metropolitan Area Plan, or GAM Plan 2013– rural towns and small cities. Influenced by its 2030, seeks to establish adequate land-use plan- topographic conditions, the region has always ning, reverse expansive low-density growth, and been relatively dispersed, featuring different levels regenerate canton capitals, which would have of functional and physical connectivity between positive mobility impacts. The GAM Plan 2013– the cantons. By 2021, the total urban area in this 2030 proposes a development model based on region had grown to twice what it was 24 years a network of Integrated and Dense Centralities earlier, and over triple its size in 1979. This low- (CDI or Centralidades Densas Integrales), GAM density urban sprawl encroached on agriculturally sub-centers featuring mixed-use development, and environmentally valuable areas and brought designed to revitalize neighborhoods and improve high demand for basic services and transporta- connectivity. Desamparados and Alajuelita are tion infrastructure that the government has been identified as cantonal CDIs, that is, they are urban unable to meet. hubs that serve as cantonal capital cities, and thus are vested with a municipal scope of influ- ence. Despite its value, the GAM Plan has not The GAM is characterized by high depen- been fully or comprehensively implemented due dence between the peripheral areas and the to a lack of political consensus47 and weak local GAM city center. The fast demographic growth capacities. Moreover, several of the GAM cantons, experienced by many GAM cantons, particularly including those along the South Corridor, do not Desamparados and Alajuelita,46 consisted primar- have in place an updated regulatory land-use plan ily of residential uses with limited opportuni- (as mentioned in previous chapters), which fur- ties for economic development (see Chapter 1). ther undermines this integration. 46 In the 1980s and 1990s, the annual population growth rate in the South Corridor was higher than in the 1970s, at 4 percent a year, exceeding the GAM population growth rate (3 percent) or the national average (2.9 percent). This growth was even greater in Alajuelita canton, which went up from 31,390 to 70,297 inhabitants (5.2 percent annual rate), partly explained by the state's investment in low- income housing. 47 Some articles have been challenged by the Constitutional Chamber of the Supreme Court, particularly those concerning the environmental variable assessment approach. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 55 B. Limited, unintegrated, and low- growth pattern has hindered the implementation quality public transport service of a mass transit service that would cover the conurbations without compromising the public Over the last few years, public transit rider- finances. Given its status as an economic hub, and ship lost ground to other options considered because of its high population density and travel faster and more affordable by users. Compared demand, the canton of San José hosts 39 percent to more populated Latin American cities, San of the country's public transport routes, many of José has a low modal share of public transport which are redundant. In contrast, the recently (Figure 1). In the 1990s this mode of transport developed peripheral areas are characterized by was used by 70 percent of the population, while low density, and considerable train or bus stop in 2007 it dropped to 53 percent.48 This shift gaps (Figure 2). Particularly noteworthy is the can be explained by a public transport service weak service offered in Alajuelita, which is served failing to meet real demand. Stagnation in invest- only by seven bus lines, each with five vehicles, ment has undermined the quality and coverage of operated by a single company (Transporte 205). In a public transport service with physical and fare Desamparados there are five bus operators, while fragmentation. Aserrí has three. The public transportation system, which relies The GAM's public transportation ridership is on independent and competing operators, on the decline. From 2010 to 2018, the GAM serves mostly the canton of San José, but it population without accessibility to transit stops fails to meet the growing need for mobility in within a 10-minute walk is estimated to have the peripheral areas, especially along the South jumped from 13 percent to 33 percent. For the Corridor cantons. The sparse, low-density urban South Corridor cantons, more than half of the FIGURE 1. San José’s modal share of public transport is lower than other Latin American major cities Panamá Montevideo Caracas Buenos Aires Santiago de Chile Quito San José Ciudad de México Monteria Rosario Brasilia Bogotá Lima Santa Cruz de la Sierra Medellín Porto Alegre Pereira Río de Janeiro Barranquilla León Manaos Cali Sao Paulo Curitiba Florianópolis Salvador de Bahía Guadalajara Recife Bello Horizonte 0 20 40 60 80 100 Private owned transport Public transport Non-motorized transport Source: Development Bank of Latin America (CAF) 2016. 48 2008 Regional Urban Plan of the Greater Metropolitan Area of Costa Rica (PRUGRAM) IADB, 2016. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 56 FIGURE 2. San José concentrates the largest density of bus routes Legend Southern Corridor Cantones Bus route density –related candidates 1,0 to 12.9 12.9 to 24.7 24.7 to 36.6 36.6 to 48.4 48.4 to 60.3 60.3 to 72.1 72.1 to 84.0 Source: Regulatory Authority for Public Services (ARESEP) 2019. FIGURE 3. Lack of access to public transportation in recently developed areas Buit Bus accesibility Up to 2010 YES Up to 2010 NO 2010-2018 YES 2010-2018 NO Source: Developed by authors based on Ministry of Housing and Human Settlements - MIVAH 2010 and 2018 (urban sprawl) and OpenStreetMap and Google Places API (bus stops). population in Alajuelita (57 percent) have to This is a physically and fare-fragmented public walk more than 10 minutes to a local public transit service that penalizes the user with transport stop. This population share reaches 29 increased travel costs and times. Based on the percent in Aserrí and 27 percent in Desamparados Integrated Sustainable Urban Mobility Plan (Plan (Figure 3).50 de Movilidad Urbana Sostenible, PIMUS) 2017, 50 Comparatively, San José's public transport ridership is slightly higher than other Latin American cities such as Xalapa, Managua, or Asunción, which are around 44 percent, 41 percent, and 52 percent, respectively. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 57 the average travel time by bus commuters is 70 transit, compared to 23.4 percent of men. In addi- percent higher than the travel time by car, pri- tion, 54.2 percent of women perceive sexual harass- marily due to transfers and wait times.51 The ment as a risk when riding public transportation.53 different modes of transportation are operated According to the 2015 Actualidades Survey by the independently in competition with each other, School of Statistics of the University of Costa Rica with no inter-route integration. It is estimated (UCR),54 61.7 percent of female respondents have that 40 percent of public transport trips involve suffered some street harassment, while 32.8 per- at least one transfer. The absence of fare integra- cent of men have experienced some form of sexual tion means that every transfer may involve an harassment. Out of the total number of women additional fee, thereby increasing the travel fare harassed, 4.2 percent did not use public transpor- for the user. Bus and train stops and terminals are tation again. In 2019, 4,581 women filed sexual scattered and disconnected, making it difficult to transfer between bus and rail lines or other modes FIGURE 4. The GAM bus network is radially distributed, mostly such as bicycles. centered in San José The bus service has a concentric matrix, forc- ing many passengers to change between dif- ferent bus routes in San José before reaching a neighboring canton. The current bus service follows radial patterns, spread over nine sectors: one central and eight peripheral sectors, with two of them covering the South Corridor. In addition, the system is complemented by just six intersec- toral services. This concentric system provides pre- cious few transfer options to destinations outside the central district, forcing transfers in San José (Figure 4). The interurban train only mobilizes 0.1 per- cent of public transport ridership. It currently provides commuter service between the provinces of Heredia, San José, Cartago, and Alajuela, offer- Source: PIMUS 2017. ing low-frequency service (more than 30 minutes between trains). The train does not serve the FIGURE 5. Railway infrastructure coverage is very limited South Corridor cantons, and the three closest sta- tions are not integrated with the bus routes either physically or in terms of fares. The rail network Legenda currently offers limited coverage, low commercial Rail Stop speed, and low capacity to absorb demand (Figure 5). In addition, the train has sections in which Seconds to walk to private vehicles invade the railway tracks due to nearest railway station x Population a lack of physical segregation, posing road safety total _person_seconds problems, as well as service disruptions. 69.76 to 9723.60 9723.60 to 17357.79 17357.79 to 24243.66 24243.66 to 31487.16 Women are the most frequent public trans- 31487.16 to 39479.18 39479.18 to 50383.19 50383.19 to 73966.09 portation riders within the GAM (around 60 73966.09 to 29688.09 percent),52 but they are also the most insecure. According to a gender-focused survey conducted by MiTransporte on San José Metropolitan Area (AMSJ) service user perceptions, 28.6 percent Source: Developed by authors based on a High-Resolution Settlement Layer OpenStreetMap/Jaime of women feel unsafe when traveling on public Gutiérrez Alfaro, United States Geological Survey - USGS, Earth Explorer Shuttle Radar Topography Mission (SRTM) 1 Arc-Second Global and OpenTripPlanner. 51 PIMUS 2017. 52 INAMU. https://www.inamu.go.cr/impulsando-una-mejora-para-la-seguridad-de-las-mujeres-en-el-transporte-publico 53 MiTransporte 2018. 54 https://www.ucr.ac.cr/medios/documentos/2015/estadistica-encuesta-actualidades-2015.pdf CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 58 harassment complaints with the Misdemeanor Courts, while men filed only 1,905 complaints. BOX 1. The Safe Mobility for Women initiative, led by the Insecurity occurs not only on bus rides but also at Municipality of Desamparados, seeks to improve the bus stops and en route to such stops. safety of women during the entire journey Many sectors are taking action to improve The Municipality of Desamparados jointly with INAMU, Ministry of Public public transportation passenger security. The Works and Transportation (MOPT), Costa Rica Road Safety Council (COSEVI), Street Harassment Prevention Act Nº 9877 was MSP, Mujeres en Movimiento, Fundación Crusa, and GIZ-supported passed in 2020, setting forth measures to pre- MiTransporte Project launched the initiative, consisting of four pillars: an vent and penalize this form of violence. This app, safe stops, bus driver training, and communications. A participatory protects people when they use public transpor- process was carried out with the Desamparados community to review the tation, hopefully making it a safer environment gender-sensitive bus stop shelter design. Lighting was improved, benches for women, the most vulnerable in this context. were adapted, and physical barriers were removed. At present, a space for Another significant action that helps improve information on bus routes is being developed to improve safety. Under this the safety of female riders in public transit is the initiative, training was also provided in collaboration with the company Intervention Protocol for Sexual Harassment in Autotransportes Desamparados (ATD). About 40 bus drivers, both male and Public Spaces or Public Access, developed by female, and administrative personnel were trained. The training covered the the Ministry of Public Security (MSP) and the following topics: gender and mobility, violence directed at women, laws, National Women's Institute (INAMU) to guide sexual street harassment, reporting protocols, and inclusive customer service, officers to intervene in these cases. At the munici- among others. pal level, Desamparados has launched the Safe Mobility for Women initiative (see Box 1). Given the low frequency, insufficient coverage, works and transport services; under the Ministry, and perception of an unsafe public transporta- the Vice-Ministry of Transport is in charge of tion system, South Corridor residents are opt- the Sectorization Project. The CTP is the public ing to use alternative transportation services to transport governing entity, a body subordinated travel to San José, including privately owned to the MOPT, and is responsible for modeling transportation, ‘pirate taxis’,55 or Ride-Hailing. the operational public transport routes. ARESEP The perceived insecurity and the increased costs regulates public service fares, including bus routes, and travel times associated with public transporta- trains, and cabs. Meanwhile, municipalities are tion have discouraged its ridership demand, and responsible for traffic affairs and bus depots. at the same time, the service operators are cutting down on service frequencies, resulting in a lower The bus service quality and coverage are affect- number of passengers. Faced with low coverage ed by the current public bus concession scheme and frequency of public transit options, users seek and poor oversight. First, GAM-wide service is cheaper alternatives with shorter travel times by provided by multiple small and medium operators riding in private vehicles, pirate taxis operating competing against each other for the most pro- informal transportation routes, or ride-hailing fitable routes (Box 2). The high-demand routes services, such as Didi and Uber. see an oversupply of vehicles, while less profitable routes are not covered at all or have such low One of the main challenges faced by the sec- frequencies that their use is discouraged. For tor is the division of roles and responsibili- example, in Alajuelita, the interlining routes used ty among multiple public entities, making to run through Alajuelita and Periférica, but public transportation management inefficient both were canceled due to their low profitability. and costly (see Annex 2). The public trans- In Desamparados, route overlapping undermines port structure has three key stakeholders, inclu- public transit, as the number of vehicles sharing ding the MOPT, the Public Transport Council the road space with mixed traffic makes it cum- (CTP), and the Regulatory Authority for Public bersome and slow.56 In addition, the fact that Services (ARESEP). The MOPT administers, public bus concessions are renewable every seven regulates, and oversees public infrastructure years makes them unattractive, discouraging 55 According to a study by the Costa Rican Public Transportation Council, as of May 2018, there were 12,440 legal cabs and 3,800 illegal taxicabs. 56 Route Nº 162 is covered by 11 bus lines under Desamparados concession, as well as other concessions from other southern cantons, such as Aserrí, that circulate through Desamparados. As for Route Nº 209, the 15 concession routes of Desamparados increase to 31 when adding those from other municipalities. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 59 bus operators from making large fleet upgrade investments and deterring new operators who BOX 2. GAM public bus concession arrangement need to amortize their investments. Finally, there is neither regular monitoring of the service rende- Public bus service is provided by private operators under seven-year term red by bus lines nor any service quality assessment. concession agreements. Concessions are awarded by the MOPT; operation planning is carried out by the CTP while fares are fixed by the ARESEP. There The operator's compensation calculation are 350 concessions and 5,200 buses nationwide. The GAM is served by 45 does not match the actual demand; instead, concessions operating 252 routes. San José itself is covered by 2,000 buses.57 it is made on a route-by-route basis using an The supply of bus transit is fragmented across 41 small and medium operators ex post estimation method, which makes it under concession or permit granted by the CTP, totaling over 1 million trips costly and inefficient. Public transit subsidies a day. The current bus operators' concessions58 expired in September 2021; are not allowed under Costa Rican laws,59 and however, a one-year extension was awarded through operating permits, to the ARESEP's operator compensation calculation renegotiate the concessions based on a law amendment to extend their term approach is inadequate, resulting in resources being from 7 to 15 years. This law reform may influence the domestic bus fleet elec- invested only in vehicle operations and little or trification process, as financing often requires more than the seven-year term nothing in maintenance. This adds another layer historically granted. to the operator's financial hurdle to invest in ser- vice delivery improvement, besides hindering the participation of new operators and investors. As a In practice, however, the poor coordination consequence, operators tend to engage in practices between sectoral government agencies and ope- unsuitable for ensuring service: preventive mainte- rators with a stake in maintaining the current nance is limited, fleet renewal plans are postponed, system, in addition to technical weaknesses drivers' working hours are extended (declining wor- and the absence of political consensus, has king conditions which in turn mean fewer trained delayed the project’s implementation for deca- drivers available), and the size of service crew requi- des. Although the proposal was developed in red per transport unit is downsized. This hurts 1999, today only road signposting is in place in passenger safety, resulting in poor service quality. four pilot corridors. The implementation delays have many causes, including lack of support from The national government has developed two the private sector—for a significant period, the noteworthy metropolitan-scale mobility pro- project had no endorsement from the operators— jects: The Modernization and Sectorization of the technical constraints, coordination challenges Public Bus System and the Electric Train project; between the different government agencies invol- both will be connected through the Integration ved (MOPT, CTP, and ARESEP), and a lack of Nodes System. political will to advance this large-scale project (Grupo de Análisis sobre Sistemas de Transporte On paper, the Modernization and Sectorization y Movilidad, 2018). of the Public Bus System Project envisages the redesign of bus routes, to deliver efficient servi- Meanwhile, the proposed transition of the ce following actual travel patterns. It proposes a interurban rail into a new rail-based system trunk system, arranged in sectors and subsectors, is under study and in the first quarter of supported by secondary and intersectoral feeder 2023 there will be a definition of its future. bus lines. The project also defines strategies for The project, which stems from the Regional linking the system with other modes of transpor- Urban Plan of the Greater Metropolitan Area of tation, mainly trains. The new system envisages Costa Rica (Plan Regional Urbano del Gran Área the definition of corridors with up to 60 percent Metropolitana de Costa Rica (PRUGRAM), of exclusive bus lanes, which may reduce travel PRUGRAM), and relaunched in 2016, aims times and permit the use of larger-capacity buses. to transform the infrastructure of the existing It also foresees electronic fare collection solu- train into an interurban double-track electric tions, improved user costs, and overall operational train consisting of five lines (see Box 3). The efficiency. new administration of President Rodrigo Chaves 57 Special service routes range between 12,000 and 15,000. 58 Operating concessions are awarded by decree. 59 A reform bill is currently in the pipeline. The Legislative Assembly is discussing a draft law to amend Law No. 3503 of May 10, 1965, to introduce public transportation subsidies. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 60 has expressed interest in the project, although, Alajuelita and Desamparados can create fee- based on concerns regarding passenger demand, der corridors to the mass transit system. Even announced new technical and financial studies though the electric train, or the mass transit sys- to review the speed of the proposed system, its tem that would be implemented in this corridor, demand and its financial sustainability. 60 does not reach the municipalities in the Arco Sur, it would benefit greatly with feeder corridors from Regardless of the mode of transport that is Alajuelita and Desamparados—the demand will implemented, the electric train or another (for increase and the residents of the South Corridor example, a Bus Rapid Transit [BRT] system), would be able to access a system that will get them GAM requires a mass transit system that inte- in San José faster. grates with the other transport systems and provi- des an efficient and quality service. BOX 3. Electric Railway Lines The studies of the Electric Railway Project that will be reviewed Climate Fund (GCF), while US$1 billion would be mobilized by the comprises a railway length of 84.9 km, consisting of 78 trains and concessionaire. As aforementioned, the current government is car- 46 stations, including 10 intermodal integration nodes. The peak rying out studies to review the technical and financial aspects of headway for lines 1, 2, and 3 would be 5 minutes; the off-peak the project. headway would be 15 minutes on weekdays and 10 minutes and 20 minutes on weekends. Lines 4 and 5 would run every 10 minutes Construction is estimated to take between three and five years. The during peak hours and every 30 minutes during off-peak hours on 35-year concession term would include design and construction (5 weekdays and every 20 minutes and 40 minutes on weekends. The years) and operations (30 years). About 80 percent of the rail route fare, which has not yet been fixed by ARESEP, would be indepen- is over existing interurban train tracks and 100 percent of the route dently set for each line; however, initial studies indicate an estimat- has the necessary right-of-way for construction, which substan- ed average fare of 600 colones at off-peak hours and 800 colones tially reduces the electric train construction time. The studies that at peak hours. The projected ridership is 200,000 passengers/day. are currently being carried out evaluate the possibility of making the section elevated to increase the speed of the system and avoid The total cost of the electric train is US$1.550 billion, of which the road intersections. The GCF has allocated additional US$21 million Central American Bank for Economic Integration (CABEI) approved to rail station infrastructure, which would help implement high- a loan for US$550 million, including US$250 million from the Green quality stations. FIGURE 6. Electric Railway Lines Alajuela Ciruelas Estaciones Estaciones de cabecera El Coyol Paraíso - Atlántico (Línea 1) Atlántico - Alajuela (Línea 2) Atlántico - Ciruelas (Línea 4) Atlántico Ciruelas - Coyol (Linea 5) Paraíso Source: Costa Rican Railroad Institute (INCOFER). 60 The Government Plan indicates that “every project must be based on a technical analysis to have a sustainable first world train. In the same way, it must contemplate the development of complementary infrastructure (bus stops, parking lots, commercial areas, among others) to enhance its impacts and benefits.” CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 61 The MOPT has proposed an Integration Plan) and TOD potential. Out of the eight inter- Nodes System to promote the connection bet- modal integration nodes along the South Corridor, ween bus routes with each other and with the Parque Central de Alajuelita is the only one rated train. The system has 53 intermodal integration with ‘Very Good Integration’, as it links the T6 nodes, of which 36 generate connectivity between and T17 trunk routes and a feeder route. The trunk, feeder and intersectoral bus routes and the other nodes, namely La Cima, Aurora, Parque remaining 17 connect bus routes with train sta- de Desamparados, Maxi Palí, San Rafael Arriba, tions. Physical, operational, and fare interconnec- and San Antonio, were rated as nodes with ‘Good tions would enhance the system's intermodality Integration’, which implies that in addition to their and boost ridership demand. entry to the trunk system, they also offer the pos- sibility of accessing other secondary destinations. The Parque Central of Alajuelita and the There are no prominent integration nodes in the Parque de Desamparados are nodes that stand Aserrí canton. Both Parque Central de Alajuelita out for their capacity for integration, urban and Parque de Desamparados are presented as development, and TOD potential. The MOPT priority nodes for densification and rank among characterizes the nodes according to their type the 15 GAM-wide nodes with the highest poten- and level of integration (quantity and levels of con- tial TOD value identified by the MOPT (MOPT nected routes), vocation for urban development, 2019) (Box 4). densification priority (defined in the GAM 2013 FIGURE 7. Eight intermodal integration nodes along the South Corridor Legend Greater Metropolitan Area NODOS 250 Project Very high integration High integration Good integration Basic integration Railroad station Railroad track Trunks Intersector bus-node routes South Corridor cantons Source: Developed by authors based on MOPT data CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 62 BOX 4. Two South Corridor sites are suitable for interchange stations: Parque Desamparados and Parque Central de Alajuelita The South Corridor's main urban interchange hub is Parque Parque Central de Alajuelita is the second interchange hub in Desamparados, which hosts the highest residential and commercial the South Corridor. The institutional and commercial center of densities. There is a considerable influx of people around Parque Alajuelita, situated in the vicinity of Parque Central, has a number Desamparados owing to the amenities, including Desamparados of major amenities such as the City Hall, the Municipal Stadium, City Hall, Joaquín García Mongea School, Nuestra Señora de los the National Bank, the Abraham Lincoln School, and the Santo Desamparados Church, and Multicentro Desamparados Mall, as Cristo de Esquipulas National Sanctuary. It does not have a high well as a wide array of commercial, institutional, and health care residential density, although it is the seat of multiple businesses, facilities. The area around Parque Desamparados is considered banks, and administrative buildings. In terms of mobility, it is very a central urban interchange node, since aside from meeting the well connected, forming a node where the trunk routes San José- urban conditions described above, it is also well integrated into the Hatillo - Alajuelita - La Cima and San José - Hatillo - Alajuelita - transit system. The San José - Desamparados - San Rafael Arriba San Felipe - La Aurora coincide with the Escazú - Hatillo interline bus trunk line converges there, fed by Desamparados - Moravia bus route and San Rafael - San Juan de Dios - San Rafael Abajo - Calle Fallas- Desamparados feeder bus lines. FIGURE 8. Bus routes crossing Desamparados FIGURE 9. Bus routes crossing Alajuelita downtown downtown C. Prioritization of privately owned FIGURE 10. San José is one of the cities with the highest motorized mobility motorization rates in Latin America, well above cities such as Bogotá and Rio de Janeiro 1. Soaring motorization 500 Costa Rica has seen a rapid and sustained rise in 400 the private vehicle fleet. Between 2000 and 2012, the number of vehicles registered in the country 300 grew sevenfold, from 155,212 in 2000 to 1,134,373 vehicles in 2012. From 2007 to 2012, the vehicle 200 motorization index (private vehicles per 1,000 population) has skyrocketed by 24 percent on avera- 100 ge. However, the motorcycle fleet grew by far more, soaring by 187.3 percent between 2007 and 2016. 0 Monteria Barranquilla Medellín Pereira Manaus Lima Cali Salvador de Bahía Recife Quito Santa Cruz de la Sierra Bogotá Río de Janeiro Ciudad de México Panamá Montevideo Santiago de Chile Buenos Aires Porto Alegre León Rosario San José Sao Paulo Florianópolis Belo Horizonte Curitiba Caracas Brasilia Guadalajara At the city level, based on the Development Bank of America (CAF) Urban Mobility Observatory figures, San José's vehicle ownership in 2016 was close to 300 cars per 1,000 inhabitants, far above comparable cities in the region such as Bogota and Rio de Janeiro (Figure 10). Source: CAF 2016. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 63 2. An inadequate and precarious road cantonal infrastructure has fallen behind; as the network population grows, road deterioration, as well as congestion and pollution, will worsen (Figure 13). The GAM road network is congested, especia- According to the 2016 Desamparados Cantonal lly the road network that connects the South Road Network Diagnostics, 43 percent of roads Corridor with the canton of San José, slowing are in poor condition, 38 percent are in fair condi- travel times in comparison with other can- tion, and only 19 percent are in good condition. tons that are even more distant from San José. The National Transport Plan 2011–2035 (PNT) The GAM road network has remained virtually unchanged since the 1970s. A ring road encir- FIGURE 12. Compared to residents of cles the center of the metropolitan area, without other cantons, South Corridor residents connecting it with the northern zone. Being a have slower travel speeds to San José transit, economic, and job center, a major share center, any time of day of the GAM's traffic flows to the canton of San José through 13 main radial roads, which are also shared by bus services. The traffic jams on 0.45 Arco Sur districts the roads connecting the South Corridor cantons Effective speed (k/min) to/off San José Centro Other districts with San José are especially dire, mainly due to the 0.40 lack of connecting roads. Figure 11 shows how, despite being at a shorter distance from San José, South Corridor residents' have a far longer travel 0.35 time than inhabitants of other cantons. Similarly, Figure 12 shows how travel times between the 0.30 South Corridor and San José are higher than in other cantons. 0.25 The South Corridor’s Road infrastructure is in poor condition. Based on the 2012 cantonal 0.20 road network update, Alajuelita has 112 linear kilometers of roads, Aserrí 265 kilometers, and 6AM AM AM 7AM:20AM 6:20 6:40 7 7:40 AM 8AM:30AM:15AM 8 5 Desamparados 519 kilometers. Aserrí has the Time of day lowest percentage of paved roads in kilometers, Source: Developed by authors based on Mapbox matrix API and with only 22 percent. The South Corridor's Facebook. FIGURE 11. South Corridor - San José’s FIGURE 13. South Corridor road commuting times are longer than of infrastructure is in poor condition other peripheral cantons Arco Sur districts 100% 140 Other districts Travel duration (min) to San José Centro (7AM) 120 50% 100 80 0% 60 Alajuelita Aserrí Desamparados Aserrí Asphalt Concrete Ballast Soil 40 20 Alajuelita 0 10 20 30 40 Distance from San José Centro (km) Source: Developed by authors based on Mapbox matrix API and Source: Developed by authors based on Desamparados Cantonal Facebook. Road Network Diagnostics CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 64 estimates that Costa Rica should invest at least infrastructure, road insecurity, and topogra- 3.66 percent of gross domestic product (GDP) phy. It is estimated that less than 1 percent of the every year in rebuilding and maintaining the GAM population commutes by bicycle. A survey current infrastructure ‘stock’, as well as in new conducted by the City of San José revealed that projects to expand the system's capacity. However, 22 percent of respondents (of whom 80 percent the current level of investment is approximately 1 are women) do not know how to ride a bicycle.61 percent of GDP, resulting in an annual gap of at least 2.5 percent of GDP, or about US$1.5 billion. One of the leading causes behind the limi- ted cycling is the GAM-wide low coverage of D. Insufficient, discontinuous, cycling infrastructure, which is only 43 km.62 and precarious active mobility So far, there are only four bike lanes in the GAM: infrastructure Downtown San José, Hatillo, and San Pedro - La Sabana circuit and Montes de Oca-Curridabat 1. Inadequate and unsafe biking cycle lane. All four have differentiated infrastruc- infrastructure, and limited use by ture and safety conditions (see Box 5). In addition the population to the absence of bicycle lanes, current regulations restrict cycling on fast roads, making it difficult to Cycling as a mode of transport in the GAM bike to and from areas distant from urban centers. is not currently well established in the popu- In addition, the scarcity of bicycle parking facili- lation, mainly due to the scarcity of cycling ties hampers the use of this mode of transport. BOX 5. The four GAM cycle lanes San José cycle lane FIGURE 14. San José cycle lane The bikeway is located between Parque de la UCR PARQUE Merced and the Courthouse, with a strip running LA MERCED along the Avenida 4 pedestrian street, used by a SABANA large number of pedestrians every day. This bikeway poses some risk to cyclists and pedestrians because TRIBUNALES DE JUSTICIA it is a shared-use bike route, that is, there is no phys- ical segregation separating the dedicated bike lanes. Source: MOPT 2016. This has resulted in the bikeway being constantly encroached upon by pedestrians in certain crowded stretches, for example, Avenue 4 (Figure 14). FIGURE 15. Hatillo cycle lane. Hatillo cycle lane (San José) Hatillo 1 Hatillo 6 Hatillo 2 The MOPT-run Hatillo bike lane was opened in 2009, financed by the Fédération Internationale de Hatillo 3 l'Automobile (Figure 15). The bicycle lane is segre- Hatillo 5 gated from vehicular road traffic by uneven lanes and a Circunvalación slope. However, the bikeway is Bike lane substantially narrower than recommended by inter- national standards, at only 1.5 m wide - 75 cm63 in each direction. In addition, the road is disrupted by Bypass Hatillo 4 Hatillo 4 elements that may pose a cycling safety risk, such as non-relocated utility poles. Source: Foundation for Urban Development (FUDEU) 2017. Continues > 61 PIMUS. Municipality of San José, 2018 – Report SBP. San José- Public Bicycle System. 62 Estimated by authors. 63 WRI- recommended two-way bicycle lane width is 2.5 m. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 65 BOX 5. The four GAM cycle lanes (Continued) FIGURE 16. San Pedro - La Sabana cycle lane Source: MOPT 2016. San Pedro - La Sabana cycle lane (San José) FIGURE 17. Montes de Oca and Curridabat cycle lanes San Pedro - La Sabana bike lane was opened in 2017 (Figure 16). The downtown project consists of a one-way 13-km circuit connecting the Law School of the UCR, San Pedro de Montes de Oca district with Parque Metropolitano La Sabana. Montes de Oca and Curridabat cycle lane The two cantons have inaugurated 21 km of cycle lanes, signs, and adaptations at the intersections in 2022. Along with the infrastructure, the project developed a series of participatory workshops to learn about the needs of the cycling popula- tion, communication, and awareness campaigns on active mobility, as well as the systematization of the process for its possible replication in other regions of Costa Rica (Figure 17). Source: Euroclima 2020. Poor road safety is another deterrent to bicycle Similarly, long distances, adverse weather, and use. In 2019, 964 riders were involved in traffic topographic conditions in the southern and accidents in Costa Rica, including 33 deaths northeastern areas of the GAM deter non- accounting, for about 7.5 percent of on-site motorized connectivity. The Aserrí canton has fatalities reported by COSEVI (COSEVI rugged topography, with steep urban streets rea- 2019). In that year, no cyclist fatalities were ching 14 degrees slope and even steeper rural reported in Desamparados, Alajuelita, or Aserrí, areas close to San Gabriel, exceeding 26 degrees though 40 bike riders had been involved in road incline. This kind of landscape hinders cycling, as accidents. Based on PIMUS surveys, cyclists pin- it requires considerable physical fitness in cyclists pointed as system failures the absence of traffic and the use of specialized cycling gear. Worse, signaling and markings along the bike route and a the urban center of the canton is situated over 10 significant shortage of cycling parking and storage km from the Downtown San José area, and more facilities. than 6 km from Alajuelita and Desamparados CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 66 urban centers, distances longer than those FIGURE 18. Aserrí's topography deters cycling recommended to encourage intermodality with other modes of transport.64 Although the cantons of Desamparados and Alajuelita also have roadways with significant incli- nes - over 17 degrees inclines in rural areas - their urban centers are situated in relatively plain areas and at distances shorter than 6 km from Downtown San José and between 3 and 4 km from Plaza Vizques and Cementerio train stations. This would facilitate cycling connections between the urban subcentralities and intermodalities (Figure 18). Layer Legend Slope (Degrees)-Horn The fragmentation of GAM-wide mobility Algorithm management and the lack of an agency entrus- ted with specific competencies on active modes Value remains a challenge to the development of a ■ 0.00 to 3.76 ■ 3.76 to 6.65 holistic and effective metropolitan strategy. ■ 6.65 to 9.79 Under the current regulations, the MOPT and ■ 9.79 to 13.17 the municipalities are to foster cycling and deve- ■ 13.17 to 17.03 ■ 17.03 to 21.75 lop integrated mobility plans, but it is unclear ■ 21.75 to 28.48 which agency is in charge of providing the cycling ■ 28.48 to 76.32 infrastructure and under what arrangements. On SC-canton-boundaries the other hand, the scattered road jurisdiction between cantonal and national roads makes it impossible to plan a continuous cycling network infrastructure without a consensus-based action Source: Developed by authors based on USGS Earth Explorer SRTM 1 Arc-Second Global (PIMUS 2015). The Mobility and Cycling Safety Act enacted and the ongoing bus transit system improvement. in February 2019 comes as a great opportunity The implementation and advocacy of the Law for the GAM to prioritize bicycle mobility. fall under the responsibility of the MOPT and This Act is conceived to advance and regulate the municipalities. The Law provides that the cycling as a means of transportation, commuting, resources for enforcing the Law will be financed and recreation through the following measures: by the fuel tax, international cooperation resour- (a) prioritize bicycles on roads with low motor tra- ces, non-refundable funds, loans and grants, and ffic volumes and speeds not exceeding 30 km/h; bicycle-sharing system agreements. Challenges to (b) mandate any new road infrastructure work to this plan include the division of resource manage- incorporate bicycle lanes; (c) require public par- ment between the MOPT and the municipalities, king lots to allocate one bicycle slot for every ten car as well as the delegation of integrated design and parking spaces; (d) include tax incentives for busi- infrastructure to the cantons. nesses to use bicycles as a means of transportation; (e) include corporate tax incentives for businesses Since 2018 local governments and central promoting bicycle mobility; (f) establish road government institutions have been working safety education from pre-school to high school; together to create and promote policies, plans, and (g) advocate the provision of cycling infras- programs and projects for the implementation tructure suitable for bicycle intermodality (that is, of active mobility. Through the signing of the bike parking near stations), the implementation of Intermunicipal Agreement on Active Mobility, 11 bicycle-sharing systems and their integration with local governments65, together with the MOPT, the public transportation. The latter is particularly Costa Rica Road Safety Council (COSEVI), the relevant in the context of the electric train project Municipal Development and Advisory Institute 64 A 3-km range is a good estimate for cycling travel range from public transit stations (CROW 2007). 65 The public health nature of the indicator should be emphasized: septic tanks are among the wastewater treatment systems considered acceptable under the indicator but may cause groundwater contamination under certain physical and urban environment conditions CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 67 (IFAM), the National Housing and Urbanism FIGURE 19. Over 200 km of projected bicycle lanes will add Institute (Instituto Nacional de Vivienda y to the existing 22.8 km Urbanismo, INVU), the National Council for Persons with Disabilities (CONAPDIS), have Legend formed a consolidated working group called the Greater Metropolitan Area Railroad track Intercantonal Active Mobility Network (RIMA, Cycling infrastructure Emergent for its acronym in Spanish). This joint effort bet- Existing Projected ween local governments and central government Cantons from South Corridor institutions to improve the quality of life of citi- zens by promoting active mobility resulted in the definition of the Intermunicipal Territorial Plan for Active Mobility66, which identifies more than 213 new linear kilometers of bike paths projected in the GAM, that is, almost five times the number of kilometers currently built (see Figure 19). 2. Fragmented and poorly accessible pedestrian infrastructure Although walking is the most popular mode Source: Developed by authors based on MOPT 2020. of transport, it may be unsafe given the risk of being hit by a vehicle. Over 36 percent of the GAM's population (more than 913,000 people) hindering accessibility for persons with redu- travel on foot. However, GAM streets generally ced mobility. 69 In Desamparados canton, for have no continuous sidewalks and are poorly example, some infrastructure is poorly maintained, maintained. This compels pedestrians to run risks particularly in urban districts of Desamparados, San during their journeys, such as encroaching on the Rafael Arriba, and San Rafael Abajo. This issue wor- traffic road space. In 2019, some 1,081 pedestrians sens in the cantonal rural districts.70 In Alajuelita were injured in crashes nationwide, including 64 and Aserrí, the sidewalks are almost nonexistent fatalities (14.2 percent of traffic deaths). In the (Figure 20). This generates serious consequences in South Corridor cantons that same year, 5 pedes- accessibility, road incidents, and safety, particularly trians were killed out of 110 victims involved in for persons with reduced mobility, women, and chil- road incidents (COSEVI 2019).67 dren. The pedestrian walkability of GAM's center and the early progress in defining ‘30 km/h zones’ The lack of pedestrian-friendly infrastructure in Desamparados can be considered good practices also discourages walking. On fast roads and for replication in the South Corridor (Box 6). avenues, grade crossings and overpasses are typi- cally scarce while traffic light timing prioritizes The regulatory framework prior to March motor vehicles, compromising the connectivity of 202171 was a hurdle to maintaining sidewalks adjacent areas and leaving the pedestrian a limited in good condition; a new regulation transfers window of time to cross comfortably. In terms of this responsibility to the municipalities and accessibility, current regulations stipulate that the provides funds to implement it. The Municipal minimum sidewalk width is 1.20 m, falling short Code (Law 7.794 of 1998) established that each of international standards that define 1.80 m as property owner had to build and maintain the the ideal minimum width to guarantee to turn sidewalks in front of their properties, while the space for persons with reduced mobility.68 municipalities were responsible for enforcing compliance. Nevertheless, the lack of incenti- Also, sidewalks and grade crossings generally ves and penalties for property owners resulted do not have access ramps and feature several in systematic non-compliance with the existing elements constraining the traffic space and regulations. The recent passing of the Pedestrian 66 Territorial Plan for Active Mobility. https://changing-transport.org/wp-content/uploads/Plan-Interterritorial-Municipal-de-Movilidad- Activa.pdf 67 Desamparados: 90 pedestrians involved in injury crashes, including 4 fatalities. Aserrí: 16 pedestrians with road traffic injuries, 1 fatality. 68 https://www.boe.es/buscar/doc.php?id=BOE-A-2010-4057 69 PIMUS 2017. 70 Desamparados Road Plan. 71 Law 7.794 of 1998. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 68 FIGURE 20. Street sidewalks in Aserrí pose physical barriers Source: Municipality of Aserrí. BOX 6. San José and Alajuela cantons have made significant progress toward pedestrian mobility prioritization In Alajuela downtown, several street sections have been pedestri- undertaken by Compañía Nacional de Fuerza y Luz (Figure 21). In anized. The City of San José built a series of boulevards - Avenida May 2021, the Municipality of Desamparados launched a canton- Central, Paseo de los Estudiantes / Barrio Chino on Calle 9, Bulevar wide 30 km/h zone signing and marking process, starting with Ricardo Jiménez on Calle 17, Paseo de la Unión Europea on Avenida, commercial zones downtown, as well as residential and school Calle 2 and Calle 3 - and made progress in defining pedestrian zones and those adjacent to cycling lanes. walkway projects as part of the Underground Electrification Project FIGURE 21. Canton of San José is advancing toward pedestrian mobility prioritization Source: Vargas Vargas, 2020. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 69 Mobility Act (2020) transfers responsibility to The Municipality of Desamparados and the municipalities to build, rehabilitate, and main- Municipality of Alajuelita joined the Tiribí River tain pedestrian infrastructure and provides them Biological Corridor project, which aims to restore with the necessary accessibility criteria complian- the biological corridor fauna and flora.73 To date, ce tools.72 The new law defines financing instru- 500 native trees have been planted along the ments, including real estate tax revenues. Hatillo and Alajuelita areas.74 At the same time, the Government of Costa Rica recently created The promotion of new projects such as the the State Unit for Active Mobility. This highly Tiribí River recreational circuit and the crea- skilled mobility planning agency will require tion of the Urban Mobility Unit offers an strong technical expertise to fulfill the entrusted opportunity to boost walking, cycling, and responsibilities. other forms of non-motorized mobility. 72 Accessibility criteria are defined in Law 7600 thereunder. The municipalities are given 18 months to enact the regulations of the law and 24 months to prepare the cantonal sustainable mobility plan, so the impacts on the pedestrian infrastructure improvements should be assessed over the next few years. 73 The activity was implemented by stakeholders including the Ministry of Public Works and Transport, Municipality of Desamparados, Municipality of Alajuelita, City of San José, the Public Force of Costa Rica, Hatillo Verde, Clean Rivers Initiative and Compañía Nacional de Fuerza y Luz. 74 Municipality of Desamparados. Website link: https://www.desamparados.go.cr/es/municipalidad/iniciativas-municipales/social/ siembra-de-500-arboles-en-corredor-biologico-del-rio CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 70 II. The Lack of Connectivity in the South Corridor Undermines the Region's Competitiveness, Quality of Life, and Environmental Conditions The low-density sprawling urban model and since most of the bus lines that connect the two its poor connectivity generate negative social, cantons pass through this area. On the other hand, economic, and environmental externalities the southern area of the canton, predominantly that affect the GAM's development. The rural and with virtually no public transportation persistence of mono-functional peripheral areas available, has a closer relationship with the Los and their relative isolation from the rest of the Santos region and the urban center of Cartago. GAM hampers access to jobs, infrastructure, and development opportunities, segregating the The residents of Alajuelita and Aserrí make most vulnerable population. This model, which is long commutes to meet their daily needs. Due highly dependent on the privately owned vehicle, to the particularly scant supply of jobs, specialized has a direct impact on soaring levels of congestion businesses, and amenities, Alajuelita and Aserri and road crashes, which undermine the region's do not attract the neighboring populations, and competitiveness. It also results in significant GHG instead exhibit a high dependence on better-served emissions and air pollution, among many other adjacent cantons. In contrast, the Desamparados externalities that affect the city-wide quality of life. central district concentrates most of the services, businesses, and facilities in the South Corridor, and The urban center of Desamparados is the most attracts the inhabitants of Aserri. The inhabitants socially and economically attractive area of of Alajuelita on the other hand tend to rely for the South Corridor. Given its strategic location commerce and other amenities on San José, to near Downtown San José and its multiple road which it is better connected. Finally, although it accesses, the northern side of the Desamparados is part of Desamparados canton (Figure 22), the canton is closely connected to the capital district residents of the southern districts, for example, and benefits from the influx of people, which Rosario, choose to meet their needs in San José, favors local commerce. Likewise, most of South since there is a better connection through Route Corridor's services, stores, and facilities are 222 and Route 209 passing through Aserrí.75 clustered in this area, particularly in the central district of Desamparados. Located in its historic A.Limited access to employment district, as well as along the corridors of Routes 209 and 213, Desamparados has the largest density Jobs are concentrated in the central GAM, of a wide assortment of businesses across the following the East-West axis, and in the South Corridor. This urban center attracts people northwest area, triggering significant from neighboring cantons and is also a must for commuting needs from other cantons. The commuters traveling from Aserrí to San José primary GAM-wide commuting reason is 75 Plan Regulador de Desamparados, 2019. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 71 FIGURE 22. South Corridor has more residents than jobs ■ 1- Very Population Skewed ■ 2- Population Skewed ■ 3- Equal ■ 4- Job Skewed ■ 5- Very Job Skewed Ratio of Workers to Population by District Source data: Total workers by district for 2020 obtained from Directory of Companies and Establishments (El Directorio de Empresas y Establecimientos) on INEC portal. Total population within each district obtained from High Resolution Population Density Maps + Demographic Estimates from Facebook, 2020. Five categories: 0-25%: Heavy population skewed 25-75%: Population skewed 75-125%: Similar levels of employment to population 125-175%: Jobs-skewed 175%: Heavily jobs skewed Source: Developed by authors based on National Institute of Statistics and Census of Costa Rica (INEC) 2020 and Facebook 202076 employment, accounting for more than 730,000 South Corridor residents work mostly in San trips a day, 29 percent of the total number of trips77 José, and to a lesser extent in Desamparados, thus (PIMUS 2015). The canton of San José attracts creating massive commuting and congestion. the most workers from other districts, receiving As noted in the previous chapter, although the in total 236,784 commuters in this central area— South Corridor accounted for 14.1 percent of the representing more than 80 percent of its resident GAM's population in 2011, it represents only 7.4 population78 —in their journey to work. Based on percent of the region's employment. The scarcity 2012 data, 50 percent of all trips within the GAM of job opportunities within the cantons forces have their origin or destination in San José and only their inhabitants to commute every day to work. 10 percent are intra-canton trips. Heredia ranks In particular, the residents of Desamparados second in attracting workers (68,064), followed work mostly in San José, while other important by Desamparados (47,320), Escazú (37,548), and destinations are Curridabat and Heredia, as well as Montes de Oca (35,121) (INEC 2011). On the other cantons. Residents of Alajuelita have fewer other hand, note that most San José residents work options in terms of work destinations, commuting in the same canton, and those who work outside mainly to San José, Desamparados, and Alajuela. the canton mostly commute to Escazú, Alajuela, Finally, residents of Aserrí commute only and Cartago, Heredia, and Desamparados. In contrast, evenly to San José, Desamparados, and Curridabat South Corridor residents tend to work in other (Figure 24). cantons (Figure 23). 76 Employment to population ratio, by district (jobs/population*100). 77 Of these, 34 percent are by bus and 33 percent by car. 78 Based on the latest census, Canton of San José had a population of 288,054 inhabitants in 2011 CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 72 FIGURE 23. The South Corridor population is not working in the same canton where it resides Place of work ■ Much more population than employment (0-25%) ■ More population than employment (25-75%) ■ Similar population and employment ratio (75%-125%) SAN JOSÉ ALAJUELITA Density Map of places-of work DESAMPARADOS The 2011 census reveals most people living in San José work in the same canton, whereas in the South Corridor, ASERRÍ people tend to work in a different canton to the one they live. Source: Developed by authors based on INEC 2011 and Quadrant 2021 FIGURE 24. South Corridor residents work mostly in San José, and to a lesser extent in Desamparados SANTO DOMINGO ALAJUELA SAN JOSÉ CURRIDABAT ALAJUELITA MONTES DE OCA SAN JOSÉ ESCAZÚ CURRIDABAT DESAMPARADOS Residents of Aserrí primarily ALAJUELITA commute most to San José, Desamparados and Residents of Alajuelita commute Curridabat. most to San José and Alajuela. DESAMPARADOS ASERRÍ HEREDIA MORAVIA ALAJUELA HEREDIA GOICOECHEA SAN PABLO MONTES DE OCA BELÉN TIBÁS MORAVIA ALAJUELITA SAN JOSÉ CURRIDABAT ALAJUELA GOICOECHEA ESCAZÚ ALAJUELITA CARTAGO MONTES DE OCA SANTA ANA TIBÁS LA UNIÓN BELÉN SAN JOSÉ CURRIDABAT ATENAS DESAMPARADOS EL GUARCO ESCAZÚ Residents of Desamparados DESAMPARADOS Residents of San José work EL GUARCO are the most connected most in the same canton, but ASERRÍ to San José, followed by they also commute to other Curridabat and Heredia. GAM cantons. ASERRÍ Source: Developed by authors based on INEC 2011 and Quadrant 2021 CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 73 The residents of South Corridor cantons travel throughout the day. Findings for Alajuelita and mostly in the early mornings, evidencing little Desamparados show intensive movement between activity during the rest of the day. The analysis 8 am and 12 pm, although their use profile is more of commuting based on different schedules, using heterogeneous, suggesting a greater balance in cell phone data (Figure 25), clearly shows that terms of commuting and staying in the cantons peripheral cantons such as Aserrí, El Guarco, throughout the working hours. The concentrated Mora, or Vázquez de Coronado became dormitory travel flows from the South Corridor to San José at cantons, whose residents travel early in the morning similar hours jams the National Routes 110, 175, to work. These cantons show greater movements 209, 210, and 214, particularly along the access during the first hours of the day, between 6 am and roads to the central district (Figures 25 and 26).79 11 am, with scarce activity within these cantons FIGURE 25. South Corridor cantons are busiest in the early morning hours 0.25 0.20 0.20 District use profile 0.15 Use profile 0.15 0.10 0.10 Sources only Mixed use Catedral Destinations Merced Aserrí Desamparados Escazú 0.05 Hospital El Guarco La Unión Flores Mora Oreamuni Goicoechea El Carmen 0.05 Paraíso Poás San Rafael Heredia Montes de Oca San Isidro Aserrí Vázquez de Coronado Alajuelita Santa Bárbara SAnto Domingo Moravia San José Desamparados Alvarado Alajuela Belén San Pablo Santa Ana Atenas 0.00 Alajuelita Barva Curridabat Tibás Cartago 0.00 4-6 6-8 8-10 10-12 12-14 14-16 16-18 4-6 6-8 8-10 10-12 12-14 14-16 16-18 Time of day Time of day Source: Developed by authors based on Mapbox for Q4, 2019. 79 These commuting behaviors were affected by COVID-19 and its lockdowns (see section D), which is an opportunity to harmonize commuting patterns by strategies such as staggered work schedules or continued work from home for certain industries. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 74 FIGURE 26. The roads connecting the South Corridor cantons with San José are often congested both in the morning rush hour (image a) and in the evening rush hour (image b) Image a Image b Source: PIMUS 2017. Not only are jobs scarce in the South Corri- FIGURE 27. South Corridor cantons struggle to access the dor, they are also difficult to physically access. GAM-based jobs by foot, by bus, or by public transit in less About 45 percent—or 22,000 people—of the than 60 minutes population of Aserrí can access less than 1 per- cent of the jobs within the GAM in less than 60 minutes, either walking or using public transpor- tation. In Desamparados, although it is a canton that generates a large number of jobs, this figure amounts to about 59,000 people or 26 percent of its population. Although in Alajuelita the to- tal population without access to employment in less than 60 minutes is only 8 percent, this canton has an extremely weak economy, creating very few local jobs, and causing most of the population to commute to work in the neighboring canton of San José (Figure 27). Difficulties in accessing jobs by public transportation or on foot prevent part of the population living in the outlying cantons from capitalizing on the economic development opportunities offered by the GAM, thus perpetu- ating inequalities. This limited accessibility to economic develop- ment opportunities perpetuated inequalities. Numerous informal settlements emerged (Figure 28) in the District of Los Guido, Desamparados, including Sectores Uno, Cuatro, Seis, Siete and Ocho, Las Mandarinas, 25 de Diciembre or Las Gardenias, totaling more than 2,700 households Source: Developed by authors with data from INEC 2020 (jobs) and OpenStreetMap and Google in 2011 (MIVAH 2021). In addition to the short- Places API (bus and train stops). age in housing, infrastructure, and quality public spaces, most of the resident households do not have access to public transit. The District of Pa- tarrá also has informal settlements, including Los Ángeles, Picacho, Niño Jesús de Praga, El Bosque, Calle Tirra, and El Guisaro, where more than 1,200 households with limited access to public CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 75 FIGURE 28. Fourteen informal settlements with little or no access to public transportation are identified in the South Corridor ■ Covered area with access to PTS Informal settlements Informal settlements with no access to PTS Source: Developed by authors based on MIVAH 2021 (informal settlements) and OpenStreetMap and Google Places API (bus stops).80 transportation reside. Available information81 B.Impacts of the urban and mobility suggests that approximately 30 percent of the in- model on the quality of life formal settlements in Desamparados do not have access to public transportation. In Alajuelita can- 1. Unequal access to public amenities ton, the lack of access to public transportation per- and services sists in informal settlements, including Los Pinos and El Jazmin, District of San Felipe or Monte The South Corridor cantons suffer from a Alto, Concepcion, totaling more than 1,150 shortage of public amenities and specialized households (MIVAH 2021). In this canton, it is businesses, prompting residents to travel else- estimated that over 75 percent of the population where to meet these needs. Although the major- living in informal settlements has limited access to ity of the population residing in the urban GAM bus stations. In addition, in many cases, the high has access to parks, health, and educational facili- population density in informal settlements im- ties in less than 30 minutes by walking or by riding plies a greater demand for public transportation on public transportation, some peripheral areas in terms of frequency and capacity, which goes remain underserved, particularly in Aserrí. unmet. The lack of accessibility of public transit is also evident in mountainous and hilly settlements, Around 29 percent of GAM residents have a for example, Las Lámparas, in Alajuelita, where health care center within a 15-minute walk- road conditions and steep slopes prevent buses ing distance, a share that rises to 50 percent from entering. in Aserrí, and affects 19 percent of residents of Alajuelita and 15 percent of residents of Desamparados. In the latter canton, half of all health facilities are concentrated within its central district (Plan Regulador 2019). When reviewing 80 In the absence of a full official dataset, bus stop locations are supported by available information from OpenStreetMap and Google Places. This may not provide a exhaustive overview of bus stop available on the public transport network. Further analysis of individual sites should be done on a more detailed, case-by-case basis. 81 See the preceding note. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 76 accessibility to hospitals, Aserrí again stands out, FIGURE 29. Nearly 1 in 3 people in the GAM do not have since 27 percent of its population is unable to even access to health care facilities (medical care, hospitals, clinics, drive a private vehicle to one of these basic facili- pharmacies, and dental care) within a 15-minute walking ties within 15 minutes. Smaller shares are found distance in Desamparados (3 percent) and Alajuelita (1 percent) (Figure 29). The residents of the South Corridor cantons and, overall, of the entire GAM, have to travel to the central districts to access specialized health care in secondary and tertiary health care hospitals. In any case, the health care infrastructure strengthening process implemented since 2014 is noteworthy, as it led to the construc- tion of public health care clinics (EBAIS) in Dos Cercas and Frailes, Desamparados, opened in 2018 and 2021, respectively. As for educational institutions, 15 percent of the Aserrí population within the GAM is un- able to access them within a 30-minute walking Source: High-Resolution Settlement Layer and USGS Earth Explorer SRTM 1 Arc-Second Global. distance. This percentage improves for Desam- FIGURE 30. Six percent of the GAM population is unable to parados (3 percent) and Alajuelita (2 percent) access educational establishments (preschools, schools, high (Figure 30). While several private universities and schools, universities, colleges, and language schools) within a campus of the Universidad Estatal a Distancia a 30-minute walking distance) (UNED) are based in Desamparados, the major- ity of South Corridor students commute to San José to attend university. As for the distribution of kindergartens in Desamparados, these are only located in the central district and San Miguel, leav- ing the rest of the canton unserved (Plan Regula- dor 2019). A large percentage of the population has no ac- cess to public green spaces within a 15-minute walking distance: 24 percent in Aserrí, 6 per- cent in Alajuelita, and 9 percent in Desampara- dos (Figure 31). In Desamparados canton, over half of the green spaces are concentrated in three Source: High-Resolution Settlement Layer and USGS Earth Explorer SRTM 1 Arc-Second Global. districts: Damas (19.8 ha), Desamparados (11.8 FIGURE 31. Twelve percent of the GAM population is ha), and San Miguel (11.1 ha) (Plan Regulador unable to access parks and green spaces within a 15-minute 2019). Although Alajuelita lacks green areas, the walking distance process of construction and improvement of parks undertaken in this canton over the past few years is noteworthy and may have positive impacts on the quality of life of its residents as well as on the mo- bility in this canton and its surroundings. Unlike Desamparados, Alajuelita and Aserrí have a scarce assortment of specialized retailers. Their central areas do not have any significant commercial zones, and are dominated by bazaars, grocery stores, distributors, and hardware stores.82 82 Canton of Alajuelita Conservation, Development and Road Safety Plan, 2016. Source: High-Resolution Settlement Layer y USGS Earth Explorer SRTM 1 Arc-Second Global. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 77 On the contrary, and due to its strategic position report smaller statistics (COSEVI 2019) (Figure next to downtown San José and its multiple 32). As seen in Figures 33 and 34, the areas around access roads, Desamparados boasts vibrant local the access roads to Avenida Circunvalación, one commerce in both its historic district and along of the most important roads in the city, have high the corridors of National Routes 209 and 213. road accident rates. There are also a large number Also, this canton is home to large-scale commercial of crashes along Av. 2, which can be explained by establishments, including Multicentro Mall in its intensive use as the only East-West connection Desamparados, Maxi Palí in San Miguel, and Los to the urban center. Higuerones in San Rafael Abajo, which attract buyers from neighboring cantons. 2. Soaring indicators in road safety FIGURE 32. Desamparados ranks fifth with the highest number of people involved in injury crashes nationwide The GAM has a growing number of road 4,500 35 incidents, mostly concentrated in the canton 4,000 Number of people involved in injury 30 of San José and the access roads to Avenida 3,500 Circunvalación. Nationally, road incidents 25 3,000 Fatalities have risen year after year, with 50 percent more 2,500 20 crashes crashes being recorded in 2019 than in 2012. 2,000 15 Based on COSEVI data, in 2019 Costa Rica 1,500 10 1,000 reported 14,861 traffic collisions, with 2,176 of 5 500 them resulting in fatalities or serious road traffic 0 0 injuries. San José has the highest concentration os n a la rí go é dó lit s ue er d of road accidents, both in absolute terms and per Jo rta ue ra le As aj pa Ze n aj Ca Al Sa inhabitant, with 3,925 people involved in injury Al m z re sa Pé De crashes in 2019. It is followed by the cantons of Number of people involved in injury crashes (2019) Fatalities Alajuela, Pérez Zeledón, Heredia, Cartago, and Desamparados. Other South Corridor cantons Source: Developed by authors based on COSEVI 2019. FIGURE 33. Road accidents between 2013 and 2017 were FIGURE 34. A large number of road particularly concentrated on Av. Circunvalación and Av. 2 crashes along Routes 209 and 214 were reported southwards Source: Developed by authors based on COSEVI 2013–2017. Source: Developed by authors based on COSEVI 2013–2017. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 78 Incidents involving motorcyclists are FIGURE 35. In Desamparados and Aserrí, over 35 percent significantly higher across the South Corridor of all car crashes reported in 2019 involved at least a cantons. In Desamparados and Aserrí, over 35 motorcycle percent of all car crashes reported in 2019 involved a motorcycle. This number is 9 percentage 50.00% points higher than the national rate (26.2) and 8 percent higher than San José, suggesting that 40.00% South Corridor cantons are home to a greater share of people riding motorcycles and that safety conditions are less adequate (Figure 35). Due to 30.00% the COVID-19 pandemic motorcycle deliveries increased, which, according to COSEVI, increased 20.00% the number of motorcyclists fatalities to 155 in 2021. 10.00% C. The Transport Sector’s significant contribution to climate change and 0.00% impact on air quality Costa Rica San José Desamparados Aserrí Alajuelita % of total car crashes canton-wide involving a motorcyclist From 2000 to 2014 Costa Rica generated % of total traffic deaths canton-wide involving a motorcyclist the largest CO2 emissions per capita from transportation in Latin America, surpassing Source: Developed by authors based on COSEVI 2019. Brazil, Argentina, and Mexico. 83 The inventory of the GHG emissions from different sectors suggests that in 2015 transportation represented 23 percent of the total FIGURE 36. Diesel vehicles account for a larger share of CO2 emitted in the country (5,394.13 gigatons). CO2 in percent weight for the number of units and their In particular, land transportation contributes 17.4 contribution to the fleet cumulative miles traveled (2019) percent of the total GHG emissions for Costa Rica. It is noteworthy that that diesel vehicles, Share of cars by fuel type which only represent one-fifth of the total fleet size (and a quarter of total annual vehicle miles Gasoline Diesel traveled), account for over half of CO2 emissions 80.2% 19.8% per year, over 3.4 million tons84 (Figure 36). Share of emissions by annual vehicle miles traveled Nationally, health care costs due to air pollution Gasoline Diesel are estimated at US$280 million yearly.85 75.25% 24.5% GAM-wide levels of harmful air pollutants and suspended particulate matter concentrations Share of CO2 emissions are above the limits recommended by the World Gasoline Diesel Health Organization (WHO). The air quality 49.25% 50.8% index86 of the canton of San José threatens an upward trend to 82/100, substantially higher Source: Fernández 2020, based on Riteve SyC 2020; INS 2020 and Sepse-Minae 2020a, b. than the values of cities with larger populations, such as Montevideo or Bucaramanga at 21 and 55, respectively (IDB 2014). While CO2 emissions 83 Sustainable Urban Transport in Latin America, Despacio, February 2020. 84 The emissions from diesel vehicles is 50.8 percent versus 49.2 percent of emissions from petrol vehicles. 85 Dobles 2011.This figure does not consider the quality of life and productivity loss. 86 Indicator that measures the concentration of harmful pollutants (tropospheric ozone, particulate matter, carbon monoxide, sulfur dioxide, and nitrogen dioxide) in the air. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 79 are the leading cause of global warming, carbon FIGURE 37. Privately-owned cars are the largest contributor monoxide and hydrocarbon concentrations have to CO2 emissions an impact on people's immune systems, as they may cause lung and heart diseases, whose treatment implies significant economic costs (Alfaro 2020). Cars Freight trucks > 3,500 kg Buses A study by the Centro Agronómico Tropical de 3,083,346 tons CO2 (22%) (28%) 1,517,073 tons CO2 600,125 Investigación y Enseñanza and Cepal-Euroclima tons CO2 showed that bringing pollution down to the recommended WHO levels would prevent the death of 229 people annually, as well as 563 cases of chronic bronchitis, and 4,508 asthma crises in adults and 2,571 in children (Alpízar et al. 2017). Freight trucks < 3,500 kg (28%) Motor- 1,203,037 tons CO2 cycles Between 1980 and 2019, Costa Rica's vehicle (4%) fleet size increased almost 10 times, affecting health and the environment. One of the main Taxis (2%) causes of poor air quality in Costa Rica is vehicle congestion and an outdated and polluting vehicle Source: Fernández 2020, based on Sepse-Minae 2020b; INS 2020. fleet and public transportation fleet. Over the past 40 years, the vehicle fleet in Costa Rica has been FIGURE 38. The number of heavy-duty vehicles and buses growing at an uninterrupted yearly pace (Figure mismatch their contribution to CO2 emissions, 2019 37). Based on Sepse-Minae official statistics 100% (2020a), between 1980 and 2019 the vehicle fleet jumped from 180,986 units to 1,752,813. On 90% Breaking down each indicator by type of vehicle average, the annual growth rate has been 6 percent, 80% in a country where the population growth rate has averaged 2 percent per year in four decades. The 70% size of the vehicle fleet has a direct influence on 60% overall emissions.87 50% Heavy-duty vehicles make up only 2 percent Type of vehicle of the total fleet size and 3 percent of annual 40% Taxicabs vehicle miles traveled, but they account for 30% Buses 20 percent of total emissions. Out of total emissions generated by vehicles in 2019 in Costa Freight >3,500 kg 20% Rica, passenger cars accounted for 45 percent, Motorcycles freight vehicles 40 percent (22 percent heavy- 10% Freight < 3,500 kg duty and 18 percent light-duty), public passenger 0% Passenger cars transportation, including buses and cabs, 11 Vehicles Annual vehicle CO2 percent, and motorcycles the remaining 4 percent on the road miles traveled Emissions (Figure 38). In addition to trucks, buses also show Source: Fernández 2020, based on Riteve SyC 2020; INS 2020 and Sepse-Minae 2020a,b an imbalance in number and use. In contrast, motorcycles account for 19 percent of the total The domestic public transit fleet remains fleet but contribute less than 5 percent of total very polluting, but the government is striving CO2 emissions. Automobiles, which account for to decarbonize the sector. Although public 63 percent of the total fleet size, have a smaller transport is moving toward adopting EURO V and relative share of CO2 emissions, with 48 percent EURO VI standards, most of the fleet currently of total emissions. complies with EURO III88, whose limits for PM10 87 State of the Nation Report 2020, based on the mandatory technical vehicle inspection (RTV) findings in Costa Rica, conducted by the firm Riteve SyC. 88 The European air pollutant emissions standards refer to staging the progressive introduction of increasingly stringent standards that regulate the permissible exhaust emission limits for new vehicles sold in the European Union member states. Standards for heavy-duty vehicles are denoted with Roman numerals instead of Arabic numerals (Euro I, Euro II, and so on). CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 80 and PM2.5 are high. Given the above situation, FIGURE 39. Cantons with a significant association between the government has prioritized accelerated vehicle road congestion and COVID-19 cases replacement schemes, focusing on replacing the public transport fleet with low-emission vehicles.89 However, legislation to formalize and mandate the scrapping of vehicles that are no longer in service remains inadequate. Costa Rica is well known internationally for climate action leadership and ambitious targets for decarbonizing its economy. Drawing on the National Energy Plan (PNE), the National Decarbonization Plan (PND) 2018–2050, and the National Electric Transportation Plan (PNTE) 2018–2030, the country has sought to encourage more efficient mobility systems, proposing specific measures for privately owned vehicles, freight vehicles, and public transportation fleets. Likewise, the government incentivized active mobility through the Mobility and Cycling Safety Act Nº 9660 of 2019 and Legislative Decree Nº 9329. In the GAM, joint effort between some local Association governments, central government institutions, the German Cooperation (GIZ), and civil society Non-significative stakeholders to develop the Intermunicipal Significative Territorial Plan for Active Mobility stands out. The backbone of these plans and programs is the decarbonization effort nationwide, especially in the Source: Gómez Campos et al. 2020, based on Waze-MOPT and MINSA. transportation sector (see Annex 1). The national reform plans in this sector are sophisticated and D. COVID-19’s impacts on mobility comprehensive, with ambitious goals and action particularly affect South Corridor plans; however, their implementation lags in cantons regulations, approvals by the Legislative Assembly, or decrees by the ministries, and therefore their In general, there have been high levels of virus implementation is usually delayed. infection in high traffic congestion areas, such as Alajuelita and Aserrí. A study developed by Costa Rica is targeting a full transition to zero- Estado de la Nación shows that variables such as emission buses. The PND of 2019 has the goal of road congestion, population density, and the share reaching 30 percent of e-buses out of the total the of individuals who commute to work in cantons public transport fleet by 2035, and 85 percent by where they do not reside are positively associated 2050. Additionally, by 2035 it is expected that 70 with the transmission of the virus. These variables percent of the taxis will be electric and 100 percent are linked to behaviors and social conditions by 2050. In terms of modal shift, it is expected that jeopardize compliance with social distance that 10 percent of the trips will be non-motorized norms recommended by health authorities to (bicycle and walking). prevent infection.90 As observed in Figure 39, the 89 “Foundations for a Public Transport Low Emission Technologies Roadmap" prepared for the Ministry of Environment and Energy (MINAE) by UNDP, German, Austrian and European Union cooperation, in 2014. The VII National Energy Plan set as a target to implement a public transit fleet scrapping program by July 2020. The National Decarbonization Plan 2018–2050, also includes the creation of a pilot scrapping program as one of the activities to enhance combustion fleet efficiency, defining a roadmap for the implementation of a scrapping model and business scheme. 90 The increasing mobility of people, from areas with many workers who must commute to other cantons for work, as well as the receiving municipalities that also have high population densities and installed business premises may boost people's physical contact, thus creating more conducive conditions for mass transmission. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 81 dormitory cantons of Aserrí and Alajuelita, which to the high concentration of services, commerce, display high mobile congestion patterns due to a and the high density of public transportation stops large share of individuals working in neighboring and lines in this area. The South Corridor saw a areas, also demonstrate a high level of virus decrease in activities at parks, bars, and restaurants infection.91 located in Aserrí and Alajuelita. At the intra-canton level, most of the South In the face of reduced public transportation Corridor's busiest areas92 saw a fall in visitors in traffic, cycling boomed. The industry reported the second 4-month period of 2020; on some bus sales growth of up to 50 percent in the country, routes, ridership declined by up to 80 percent. along with the demand for electric bike rental The influx drop has resulted in reduced demand services.94 In response, the government published for public transit use and thus a decline in services the Recreational and Urban-Labor Cycling delivered. The frequency of visits to stores, resorts, Protocol, containing guidelines to promote the beaches, and parks in Costa Rica fell by 82–84 use of cycling, including recommendations for percent. This downturn was especially steep in the visibility on public roads, periodic review of the case of bars and restaurants, bus and train stations, condition of the bicycle, personal equipment, and markets, and tourist hot spots in downtown San cleaning and disinfection of the vehicle.95 José (Figure 40). This is quite understandable due FIGURE 40. Parks, bars, and restaurants in the South Corridor cantons saw a significant drop in visitors as of the second quarter of 2020 Parks Bars, restaurants, cafes Bus/train stations Marketplaces 100% San José centro 100% San José centro 100% San José centro San José centro Uruca / Heredia Uruca / Heredia Uruca / Heredia 100% Uruca / Heredia Curridabat / San Pedro Curridabat / San Pedro Curridabat / San Pedro Curridabat / San Pedro Cartago Cartago Cartago Cartago Escazú Escazú Escazú Escazú 80% Desamparados Desamparados Aserrí 80% Aserrí 80% Alajuelita Alajuelita 80% Visitor frecuency intensity Visitor frecuency intensity Visitor frecuency intensity Visitor frecuency intensity 60% 60% 60% 60% 40% 40% 40% 40% 20% 20% 20% 20% 20 20 20 20 21 20 20 20 20 21 20 20 20 20 21 20 20 20 20 21 21 21 21 21 e e e e in in in in 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 l l l l se se se se Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q2 Q2 Ba Ba Ba Ba Universities Malls Shops Historical/touristic sites 100% San José centro 100% San José centro 100% San José centro 100% San José centro Uruca / Heredia Uruca / Heredia Uruca / Heredia Uruca / Heredia Curridabat / San Pedro Curridabat / San Pedro Curridabat / San Pedro Curridabat / San Pedro Cartago Cartago Cartago Cartago Escazú Escazú Escazú 80% Desamparados 80% 80% Desamparados 80% Desamparados Visitor frecuency intensity Aserrí Visitor frecuency intensity Aserrí Visitor frecuency intensity Visitor frecuency intensity Alajuelita 60% 60% 60% 60% 40% 40% 40% 40% 20% 20% 20% 20% 0% 20 20 20 20 21 20 20 20 20 21 20 20 20 20 21 20 20 20 20 21 21 21 21 21 e e e e in in in in 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 el el el el s s s s Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q2 Q2 Ba Ba Ba Ba Source: Mapbox movement data93 91 Gómez Campos et al. 2020, based on Waze-MOPT and MINSA. 92 The concept of crowded spaces refers to places with a large concentration of people under normal conditions, such as parks, restaurants, bus or train stations, markets, universities, shopping malls, stores, and tourist areas. 93 https://www.mapbox.com/movement-data 94 La República. https://www.larepublica.net/noticia/ciclismo-vive-su-propia-pandemia 95 https://www.presidencia.go.cr/bicentenario/wp-content/uploads/2020/08/Protocolo-para-la-pr%C3%A1ctica-del-ciclismo-recreativo-y-urbano-laboral.pdf CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 82 III. Rebalancing Metropolitan Area Development and Improving the South Corridor's Connectivity Given the challenges laid out, this section pro- existing centralities or create new ones, favoring poses four strategies to rebalance the develop- the consolidation of local economic development ment of the metropolitan area and improve in medium- or high-density neighborhoods. the connectivity and accessibility of the South TOD projects are based on building dynamic Corridor. These types of measures would cut urban spaces through the promotion of mixed down the current system's costs in economic, land uses, where residential, commercial, emplo- social, and environmental terms, and have a posi- yment, and recreational activities coincide. They tive impact on people's quality of life by improv- also encourage intermodality, integrating train ing access to public services and infrastructure and bus public transportation services, as well as and health; the environment, by reducing GHG active mobility infrastructure. The promotion of emissions; and economic activity, by connect- dense and dynamic urban centers, with a richness ing workers with employment opportunities and of well-connected economic and social activities, companies with one another. has the potential to attract investment; contribute to the generation of new economic opportunities A. Integrating urban with mobility for citizens; raise new revenues for local gover- planning: the opportunity of nments; and encourage the revaluation of land, Transit-Oriented Development rental income, and real estate values. In addition, projects. the strengthening of existing centers, and the generation of new attractive poles where mixed The integrated planning of urban and territo- uses and employment opportunities abound, can rial development and mobility is fundamental potentially reduce dependence on other economic to promoting the sustainable development of centers and reduce travel times within the GAM. the GAM and undoing the effects of urban sprawl. The shape of the city directly affects the Considering the strides made by the govern- demand for mobility while the available supply ment in identifying sub-centers with potential of transportation infrastructure directly affects for value addition and densification, the feasi- the socioeconomic opportunities that the city bility assessment and design of TOD projects can—or cannot—provide. As a result, it is neces- in the areas of influence of Parque Central de sary to strengthen the integrated planning and Alajuelita and Parque de Desamparados nodes management of the territory, mobility, and urban should move ahead. First, economic, demogra- systems to guide the city’s growth, consolidation, phic, urban, existing infrastructure, and projected and densification processes, and to ensure that all demand factors should be evaluated to define the people enjoy equal access to jobs, goods, and basic technical feasibility of densification in these areas. services. An economic assessment of the real estate market and development opportunities will help gain a Enhancing GAM sub-centralities through better understanding of the development potential TOD contributes to compact development and the programs that could be implemented in and reduces dependence on the central dis- these city areas. Next, a plot land and ownership trict. Implementing TOD projects around high- analysis within the study area will reveal whether demand rail stations or bus stops may strengthen there is any vacant or underutilized land available, CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 83 preferably public land, in the vicinity of the most attractive areas. Using these definitions, it will be BOX 7. possible to design a sector plan that proposes uses The Case Study of Curitiba, a TOD model in Latin America and programs, projected densities, typologies, flows, and intervention strategies in the environs Since the 1960s, with the publication of its Master Plan, the city of Curitiba of the interchange hubs and public spaces, among (Brazil) promoted holistic urban development and mobility planning through other dimensions of the urban project. Finally, the implementation of a TOD model based on the Bus Rapid Transit (BRT) the financial model design will be critical both to system. To guide its growth and consolidation, the city developed five struc- create innovative financing tools and to evaluate tural corridors with exclusive BRT lanes, and promoted the concentration of the investment costs and potential revenues gene- high-density housing, stores, and services. The plan included the construction rated by the projects and ensure their sustainabi- of social housing units adjacent to workplaces. The successful implementa- lity (World Bank 2020) (Box 7). tion of this project was marked by active government leadership. In addition to investments in transportation infrastructure and affordable housing, the University and college programs, master's project involved major changes in land-use regulation, densities, and heights degrees, and specializations in transporta- (ITDP 2013). tion policies and transportation planning,96 especially TOD and active mobility models, need to be developed to build the necessary decision-making and prevents projects from pro- technical capacity within specialized natio- gressing and being implemented expeditiously. A nal institutions. University training programs working group made up of the MOPT, the CTP, offered by the University of Costa Rica (UCR) and ARESEP is proposed to improve coordi- and the Technological University of Costa Rica nation for planning, regulating, operating, and (TEC) are essentially focused on infrastructure, defining public transportation fares, and to pro- engineering, and road management (roads, pave- gress toward the centralization of decisions and ments, and bridges). University curricula focused criteria in a single entity. Regarding the design on sustainable gender-sensitive transportation, and construction of pedestrian and bicycle infras- road safety, active mobility, electric mobility, and tructure, a coordination mechanism needs to be TOD are still rare.97 Furthermore, the National developed to involve the national government and Council of Rectors (CONARE) faces significant municipalities in the identification, implemen- challenges in crediting undergraduate and gra- tation, operation, and monitoring of pedestrian, duate programs that are completed abroad but do sidewalk, and bicycle path projects, thus ensuring not exist in Costa Rica, even when the degrees consistency and avoiding unconnected and iso- are issued by renowned universities. CONARE, lated projects developed by individual cantons. jointly with professional associations, mainly Other countries with similar institutional coordi- those of engineers and architects, needs to facili- nation challenges have successfully implemented tate the recognition of degrees obtained abroad in similar reforms. Box 8 describes the case of the urban matters. Likewise, CONARE, universities, Dominican Republic. international donors, civil society, and others with specializations in the subject need to work The Legislative Assembly should adjust the as one to create the necessary academic supply for concession term for transport operators. This the urgent urban and transportation transforma- will enable investors and operators from other tion that the country requires. countries in the region to enter the bidding pro- cess. The arrival of new public transportation pla- B. Foster an institutional and yers would be beneficial, not only for investment regulatory reform for more but also for knowledge transfer and best practices effective mobility management that would enhance service quality. It is critical to improve coordination among It is important to revise the current ARESEP the agencies in charge of planning, regulating, fare calculation methodology and the and managing public transportation, road operator's remuneration, which is determi- projects, and active mobility. The current frag- ned by computing all costs plus profitability mentation of these responsibilities undermines and divided by the number of passengers. 96 Other than Transportation Engineering. 97 TEC has a program to train technicians in electric mobility, as well as undergraduate and master's degree programs in transportation and a few in road safety. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 84 BOX 8. INTRANT in the Dominican Republic To rearrange coordination and decision-making in services, operation schemes, itineraries and any other the Dominican Republic, Law Nº 63 of 2017 estab- interurban and urban aspect; and regulating the lished the National Institute of Transit and Land public transportation service and its infrastructure, Transportation (INTRANT), as the leading land trans- including the direct provision of services by the state portation authority. The key areas under its purview or the issuance of operating licenses to public and are road safety, electronic collection and interoper- private operators. INTRANT also monitors service ability, and electric mobility for public transportation delivery quality; coordinates the actions and activi- corridors with electric buses. ties of the General Directorate of Transit Security and Land Transportation (DIGESETT) with the Ministry of INTRANT is established as a national, sectorial, and Interior and Police and the General Directorate of the decentralized governing body under the Ministry National Police; fixes service fees for the operation of of Public Works and Communications. INTRANT the mobility system, land transportation, transit and absorbs the functions of the Land Development Fund road safety; regulates the fare of public passenger (FONDET), the General Directorate of Road Transport transportation; and develops, implements and pro- (DGTT), the Technical Office of Land Transportation motes the use of Information and Communications (OTTT), the Council of Administration and Regulation Technology (ICT) arrangements. of Taxicabs (CART), and the Pension and Retirement Fund for Public Transportation Drivers. The President of the Republic appoints the Director of INTRANT, with technicians in charge of the sub-direc- Some of its primary functions comprise designing torates. In the current administration, negotiations and implementing the national mobility and land have been advanced, by corridor, with the transport transportation policy; exercising the sectoral plan- unions to formalize public transport by creating new ning; planning and designing the integrated public transport companies made up of former individual passenger transportation system, including routes, operators. The reform of the methodology, to reverse the fare lags that affect the operator's income, is presented BOX 9. as an incentive to attract greater investments, Bogota, Colombia has implemented improve service quality, and even prevent the different public transit operator cessation of routes, as has already occurred. A ben- compensation schemes chmarking of remuneration calculation models for operators in the continent can provide Costa Bogota has used different operator compensa- Rica with the tools and guidance to modify its tion calculations. In Phase 3 of the Integrated model (Box 9). Transport System (SITP), the compensation has three components: fare per vehicle, fare per C. Implement an integrated mass kilometer traveled, and fare per passenger. The transit system vehicle fare covers the investment return, that is, the fleet cost; the fare per kilometer covers To improve accessibility to public transporta- fixed and consumable costs, including fuel; the tion, the mobility model needs to be updated passenger fare compensates for the vehicle or to include all GAM cantons and routes to pre- vehicles that are decommissioned and replaced vent overlapping. To advance the Sectorization by new ones, and the operator's profit. The rate Program, a passenger demand-based prioritiza- per kilometer is revised every four years to adjust tion of corridors is required. For this reason, the for changes in costs, the most important of which starting point for reorganizing routes requires are salaries and fuel. At the same time, the rate updated demand data,98 especially for Aserrí, per vehicle is reviewed to update the costs of Desamparados, and Alajuelita. new vehicles that will join the fleet. Continues > 98 The most recent travel information is from 2008. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 85 BOX 9. Bogota, Colombia has implemented different public transit operator compensation schemes (Continued) In Phases 4 and 5, the procurement model was natural gas vehicles), which depend on the num- modified and the fleet procurement (supply) was ber of kilometers traveled, and a passenger fee, segregated from operation and maintenance which covers the operator's profit. The difference (O&M), that is, two separate bid processes and between Phases 4 and 5 is that Phase 4 does not contracts were made, one for supply and the include the fare per passenger because it is a BRT other for operations. This new scheme shared the fleet: the profit is distributed between the other risk and additionally attracted new investors and two (vehicle and kilometer traveled). The other players who ended up benefiting from the process difference is that Phase 5 includes an additional with increased competition. In the previous phases, fare which consists of the yard service cost, which there used to be a single operations contract in some cases is paid to the provider and in others that included the fleet purchase. In Phase 5, the to the operator. fleet supplier is now remunerated a vehicle fee to cover the fleet cost and an administration fee In the above cases, the bidder submits its payment to cover the yard construction costs. The operator proposal for each of the fares in the bidding pro- is paid a vehicle operation fee, which includes cess and the net present value of the concession is fixed operating costs such as drivers, maintenance, the one that decides the successful bidder. In other and insurance, a variable fee that pays for energy words, the investor and operator have an estimate and fuel consumption (electric vehicles [EVs] and of what their revenues will be. Bus and train services can no longer function Enabling conditions to attract new inves- disconnectedly; they need to be integrated. tments to the transportation sector must be First, an operational integration that optimizes created, so as to provide new players with the use of the fleet, reduces overlapping, and legal and regulatory certainty. As outlined in serves the South Corridor counties is needed. the previous recommendation, the transportation Then, fare and technological integration should sector would benefit from attracting new inves- follow to enable users to transfer from one bus to tors that not only bring in additional resources, another, including the inter-city train and/or the but also knowledge of operating public transit in mass transit system replacing it. Finally, there is a other countries. The participation of new private need for physical integration that should encom- sector investors would build confidence in project pass transfer zones when needed, in particular to financing by mobilizing new capital that may help connect train stations and bus stops from feeder bridge pandemic-related funding gaps. routes arriving from the South Corridor cantons. Upgrading the available infrastructure will Users need to be informed about the routes, enhance the overall system's efficiency. More itineraries, and frequencies of public transport investment in developing strategic road inter- services. Reliable information and trip planning connection projects, exclusive public transport encourage the use of public transport, which is lanes, logistics platforms, and technology incor- why buses should be equipped with GPS systems poration could reduce travel times and build enabling real-time route tracking, and this infor- up capacity, making the existing public trans- mation should be centralized to provide the user port infrastructure more productive and efficient. with information on the different options and tra- It is also recommended to assess the feasibility vel times. Information on bus routes and locations of developing investment projects focused on can then be processed and made available to the complementary means of public transportation, citizen by the MOPT. This data should be open, such as cable car systems, which, in conjunction so that they can be used and made available to the with comprehensive urban renewal interventions, user by private apps. have been very successful in cities like Medellin (Box 10). CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 86 In this regard, it is necessary to create the planning, pre-investment, and institutional BOX 10. assessment mechanisms to ensure that availa- The Santo Domingo Metrocable (Line K, Medellín) and ble resources are invested cost-effectively and its complementary urban interventions: the Integrated for the greatest public benefit. Possible finan- Urban Projects (PUIs) cing arrangements may include public-private partnerships, concession contracts, multilateral financing, or a national budget, as the case may The Santo Domingo Metrocable, which started commercial operations be (Box 11).99 in 2004, was the first urban passenger gondola lift system in the world. Integrated physically and fare-wise with an existing metro line, this mode GAM-wide commuting usually involves multi- transports some 46,000 passengers daily and benefits about 240,000 resi- modal combinations, meaning that adequate dents of communes 1 and 2 of the city (Metro de Medellín 2019). urban environments and ‘last-mile’ solutions are prerequisites for intermodality. Public The Medellín Metrocable project has become an example of sustainable space interventions in the station and stop envi- and inclusive mobility, not only because it was engineered as a solution ronments have the potential to support mass to connect the city's marginalized hillside settlements, but also because it transit systems, especially bus systems. In this res- included a series of large-scale urban regeneration interventions across nine pect, one of the most important components for neighborhoods in the area of influence of the Metrocable stations. These so- ensuring the efficient performance of the public called Integrated Urban Projects (PUIs) are characterized by spatially focused transport system and enhancing intermodality is social, environmental, and urban interventions in neighborhoods with critical having adequate complementary infrastructure deficiencies, aimed at attaining the integrated development and transfor- associated with transport: comfortable stops, sig- mation of these communities. The IUPs were administered by Empresa de nage, and safe and adequate access for passengers Desarrollo Urbano, an autonomous municipal entity (World Bank 2020). to transfer or complete the last leg of the journey on foot. It should be noted that the Metrocable and the associated PUIs have con- tributed to reshaping spatial and social structures fragmented by inequalities In modal interchange nodes and particularly and tensions related to crime and violence, providing inclusiveness benefits in areas with TOD potential, it is recommen- that extended to both users and non-users of the transport system (Dávila ded to carry out urban interventions in the and Brand, 2012). Cities such as Bogota, La Paz, Caracas, and Rio de Janeiro, vicinity of stops to enhance the pedestrian- among others, have begun to replicate this experience. centered experience and improve accessibility. In this sense, it will be critical to think of inter- ventions that ensure the safety of both pedestrians and cyclists. Some measures may include bus stop renovations with full-fledged amenities (benches, BOX 11. trash cans, signage), calming and/or pedestriani- The private sector may finance public transport zation of adjacent streets, sidewalk widening and infrastructure for the benefit of users and generate placement of ramps, physical markings of bike a financial return lanes and parking areas, adequate public lighting, and tree planting and other urban landscape ele- In Guatemala City, the government worked jointly with the private sector ments (Box 12). to build the BRT infrastructure system, known as Transmetro; two different groups of investors paid for the construction of 13 stations as well as a To enhance public transit riders' safety, it is transfer terminal and some access pedestrian bridges. In return, corporations imperative to incorporate measures enabling were allowed to market advertisements at the stations and in other desig- the effective implementation of the Street nated areas along the corridor. Private developers built a tunnel connecting Harassment Prevention Act Nº 9877. To raise an existing shopping mall to a BRT station. Small shops were installed along the public transport ridership, especially among the underground runway. In 2022, following 15 years of operation, these women, it is necessary to improve safety and era- stores will be conveyed to the municipality for commercial operations. dicate gender-based violence in transportation. To do this, it is essential to first understand women's 99 Strategic Infrastructure and Transport Sector Plan, 2019–2024. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 87 BOX 12. Modal interchanges enhance commuting transfers; private investment may help build quality infrastructure profitable for the investor In Ciudad Azteca, State of Mexico, there was a modal interchange million infrastructure built entirely by the private sector under a in a messy, unpaved public space with poor facilities for transfers 30-year concession benefited public transport riders as well as the between different services that connected metropolitan area neighborhood where the station was built. municipalities with Mexico City. New government regulation and private investment led to the construction of a transfer station, The alignment of the stakeholders was critical to the success of which now saves passengers two hours a day (before there was this project. The government came up with the regulations that no integration of services, nor the necessary infrastructure for provided the right incentives for the private sector to invest. The parking vehicles). Today, the area offers additional services which transport operators were also involved to provide better service. include a hospital that also became a travel attraction. The 72,000 These investments did not result in additional user fees. m2 intermodal station has 180,000 movements per day. The US$68 Before After mobility patterns, and then diagnose the root cau- D. The Decarbonization Plan may ses of unsafe public transport. Based on this infor- trigger public transportation mation, it will be possible to develop an action improvements plan to reverse the situation. Mainstreaming a gender approach in urban public transit requires Reducing dependence on motorized vehicles, addressing infrastructure design (for example, favoring intermodality in the public trans- ensuring proper lighting and visibility at public port system, upgrading fleets, and advancing transport stops or providing safety and warning technological transformation will be key to systems); training of public transport personnel, cutting transportation emissions. To achie- including security personnel trained in interven- ve a more sustainable mobility model, one that tion protocols; and communication strategies to reduces dependence on fossil fuels, Costa Rica raise awareness among the wider public. Some and the GAM in particular must scale down the cities have also experimented with the use of widespread reliance on private vehicles and shift mobile applications dedicated to improving secu- toward a greater role for public transportation rity, for example, Safetipin. and active mobility. This transformation will CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 88 only be possible by upgrading public transit ser- It is also advisable to review the vehicle age and vice in general and linking it with urban growth permissible emission parameters. Diesel vehi- patterns. It is necessary to promote a mass, inter- cles account for a larger share of CO2 emissions connected system that meets expectations with than petrol-powered vehicles, in part because regard to regularity, proximity, efficiency, quality, emission control standards in current legislation and safety. At the same time, the state should are not as stringent for diesel vehicles as for petrol promote the scaling down and greater control of vehicles (Fernandez 2020).100 For example, in privately owned combustion vehicles, rush-hour Spain, newer units (after July 2008) are required private driving restrictions, as well as a modal to have opacity levels of 1.5 or 0.7 m−1, while in shift to large-scale active mobility. Coupling these Costa Rica the strictest limits are 2.15 and 2.18, policies with technological transformation, fleet depending on the type of vehicle. modernization, and greater investment-boosting incentives for operators will help decrease the The GAM should implement measures dis- contribution of public transport GHG emissions. couraging the use of privately owned automo- biles. During rush hours, car use should be cur- A. Jump-starting to Zero-emission tailed, either by restricting circulation by license Mobility number or by imposing a congestion charge. On-street parking restrictions would also be advi- There is a need to replace obsolete public tran- sable. Congestion charge revenues may finance a sit vehicle fleets with low-emission vehicles. pool fund for public transit improvement. These The MiTransporte program implemented by the measures can also stimulate the conversion to EVs GIZ between 2017 and 2021, whose objective by creating exemptions for EVs, by offering redu- was to promote the electrification of public trans- ced circulation charges and/or exclusive parking port, supported the definition of a regulatory fra- spaces for zero-emission vehicles. mework, inter-institutional coordination, and the implementation of a pilot test in San José. This Establishing GAM-wide freight vehicle circu- project has produced valuable information for the lation schedules will help reduce congestion operation and the business model as well as the and emissions. Preventing light and heavy fre- necessary actions to incentivize its scalability and ight vehicles from circulating at peak hours will progress in the replacement of the combustion enable public transport to reduce travel times. of the entire bus fleet with a fleet powered by The introduction of electric light-duty vehicles clean sources. The current government has set the will allow them to circulate within the den- goal of putting into service 250 e-buses by 2024. sest areas without emitting GHGs. Introducing Additionally, it is necessary to amend the Electric heavy-duty hydrogen cell vehicles will also help Mobility Law to extend the concession years for considerably. Costa Rica is already working on those operators who acquire e-buses to convey the installation of a hydrogen production and trust in the investment return. Another option is storage plant. to define a more profitable public transport ope- rator compensation rate, encouraging investment B. Promoting active mobility by small and medium operators. Tax exemption for electric bus spare parts and charging systems Promoting active mobility as an integral part would also prompt the adoption of this type of of city mobility could reduce emissions and technology. Finally, it would be important to vehicular congestion while revitalizing down- identify measures that encourage fleet-owning town areas. Many GAM municipalities, such as concession holders to prioritize scrapping and Desamparados, San José, Alajuela, and Montes reuse of parts rather than selling old buses. These de Oca, are advancing toward the construction scrapping processes must be strictly controlled of bicycle lanes, the pedestrianization of their and monitored; otherwise, operators will likely downtown areas, or the definition of 30-km/h find ways to keep substandard or unsafe vehicles zones.101 While these improvements are crucial on the road, and scrapping will not be effective. to rebalancing the use of public space in a more 100 According to experts, the permitted values have not changed for diesel vehicles from models 1999 onwards. In addition, mechanical injection is allowed, which is subject to manipulation for emissions testing purposes, making it a loophole that affects testing effectiveness.. 101 The 30-km/h zones are mixed-use streets where pedestrians are prioritized over vehicles and where speeds are limited to 30 km/h. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 89 equitable and demand-driven manner and to the principles and guidelines to operationalize invigorate downtown economic activity, it is a joint vision. Ensuring continuity across routes necessary to coordinate these projects across the requires establishing metropolitan cycling and different cantons through the development of a pedestrian infrastructure design criteria that pin- GAM Active Mobility Master Plan. point barriers and opportunities for promoting this type of mobility. It may, for example, propose A GAM Active Mobility Master Plan would downtown vehicle restraint interventions in prio- identify priority corridors or areas for metro- rity urban sub-centers, implement 30 km/h zone wide interventions and develop traffic and traffic calming strategies, and reduce demand for use patterns to preclude partial interventions. parking, based on integrated land-use planning. Drawing on the Intermunicipal Territorial Plan On the other hand, urban rivers and waterbodies for Active Mobility, the Plan should consider a provide opportunities for connectivity enhance- common vision among the stakeholders invol- ment and the improvement of public space (see ved, especially the municipalities, and establish Box 13). BOX 13. The GAM's urban rivers afford opportunities for inter-cantonal connectivity and the development of recreational and tourist circuits Scenic trails could link the principal landmarks of the central dis- impact bicycle and pedestrian infrastructure along the Tiribí River tricts to form a cultural recreational circuit. One initiative of inter- could connect the urban centers of Alajuelita and Desamparados. est is the Naturbanas Routes Project,102 which proposes to create Some hotspots near the Tiribí River include the Central Park and active and safe mobility infrastructure along the rivers Torres and the Alajuelita Municipal Stadium, the Centenario Park and Nuestra Maria Aguilar while promoting the recovery of natural settings of Señora de los Desamparados Church, the Libertad Park in Patarrá, urban rivers. In the South Corridor, rivers Tiribí, Cañas and Jorco and the Olympic Village in Damas. Similarly, the Cañas River could could provide important inter-district connections. Today, Phase 1 link Alajuelita with San Juan de Dios and further downstream with of the Tiribí River Interurban Biological Corridor Project is being the downtown of Aserrí. implemented by planting 300 native trees. The development of low- Source: Rutas Naturbanas. 102 https://rutasnaturbanas.org/ CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 90 The implementation of a GAM-wide Bike trip, thus improving overall travel times. Some Sharing System (BSS) could increase the public cantons in the GAM have several completed and transport system's ridership, favor modal shift, planned bikeways, but these are sparse and dis- and lessen vehicular congestion by replacing connected from each other.103 The BSS should be motorized trips. The inclusion of BSS e-bikes integrated into the city's mobility plan and be an would expand the range of coverage and the integral part of the cycling infrastructure strategy demand for public transit. Considering that the and master plan. To ensure that users prioritize urban centers of Desamparados and Alajuelita are this mode of transport, the BSS infrastructure less than 6 km from downtown San José, these must comply with a series of minimum technical, trips can be made by bicycle, if the appropriate safety,104 and comfort105 standards, and should be infrastructure is available. For journeys longer supported by a cyclist and driver advocacy and than 6 km, the bicycle can complement public awareness program (Box 14).106 transportation, covering the ‘last mile’ of the BOX 14. Mexico City implemented the public bike-sharing system ECOBICI in 2010. fencing; additionally, they are equipped with a GPS Mexico City, through the Ministry of Environment, device for tracking in case of theft. Since its opening implemented ECOBICI, to date the largest public until 2018, cumulative statistics show 45 million bike sharing system in Latin America. It started rides and 200,000 users, covering an area of 38 km2. operating with 84 stations and 1,200 bicycles, In 2018, the system included 340 pedal-assisted growing in 2018 to 480 stations and 6,800 electric bikes and 28 recharging stations. One aspect bicycles.107 ECOBICI's original goal was to provide that stands out is that the same card used for public transport users with last-mile rides and Metrobus, the BRT system is also good for ECOBICI short rides. Bikes are procured by the city and the bike ride payment. Users can purchase annual plans, user pays only a portion of the price of the service, which can be for 1 year, 1 day, 3 days or one week. the rest is a public subsidy paid by advertising All plans include unlimited 45-minute trips; in case (similar to Vélib in Paris). The bike design is unique of exceeding this time, each rate applies per extra with a small front tire (20 inches) and a larger rear hour or fraction. The system has a control center tire (24 inches), aimed at preventing theft and that, based on open data, monitors and tracks the use and location of each bicycle.108 103 BID 2016; IDB 2016. 104 Some measures to increase cyclist safety include improving crossings, avoiding road conflicts, or ensuring standardized traffic conditions. 105 PIMUS mentions as a requirement that the geometric design of the roads should help minimize rolling resistance, through the use of smooth and non-porous materials, have a free section of at least 0.75 m per the direction of circulation and consider minimum radii for curves or various strategies to ensure visibility. In addition to basic infrastructure for the circulation and arrival of bicycles in the vicinity of the train or bus station, safe parking spaces are required. 106 It is recommended that the suggestions presented by the PIMUS in its Active Modes Promotion Campaigns action be taken up again. 107 www.ecobici.cdmx.gob.mx 108 Bicycle sharing system planning guidelines. Institute for Transportation & Development Policy, 2018. CONNECTING THE SOUTH CORRIDOR | CHAPTER 3 91 References AC&C y Gensler. “Plan Integral de Movilidad Urbana Sostenible para el Área Metropolitana de San José, Costa Rica.” BID. Alianza por el Hidrógeno. s.f. “Advancing the Hydrogen Ecosystem in Costa Rica.” Alianza por el Hidrógeno. s.f. “Hydrogen Ecosystem in Costa Rica.” Asesores para el Desarrollo Territorial . 2019. Estudio de Vialidad y Circulación Desamparados. Desamparados: Municipalidad de Desamparados. Asesores para el Desarrollo Territorial. 2019. 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San José: Sistema de Bicicletas Públicas. Informe Final. San José: Municipalidad de San José. PNUMA. s.f. “Especificaciones técnicas para buses eléctricos y sus sistemas de carga en el Área Metropolitana de San José, Costa Rica.” PNUMA. s.f. “Análisis y mitigación de barreras para el despliegue de autobuses eléctricos en Costa Rica.” Pujol, Rosendo M., and y Eduardo M. Pérez. 2012. Crecimiento urbano en la región metropolitana de San José, Costa Rica. Una exploración espacial y temporal de los determinantes del cambio de uso del suelo, 1986-2010. San José: Lincoln Institute of Land Policy. SEPSE, BID, PNUD, GIZ. s.f. “Plan Nacional de Transporte Eléctrico (PNTE) 2018–2030.” SIGMA. 2016. “Programa de Movilidad Urbana Sostenible para San José de Costa Rica.” Mejoras Tecnológicas en la Flota Vehicular. BID. Transformativa Mobility Initiative, GIZ. 2020. COVID-19 y la Movilidad Sostenible. Observaciones y documentación de los primeros avances. Bonn: GIZ. Vargas Vargas, Bryan Roberto. 2020. “Micro-situaciones en el espacio público. Estudio de bulevares peatonales en San José, Costa Rica.” Arquitectura y Urbanismo, Febrero: 76–85. World Bank, 2020. Desarrollo Orientado al Transporte Sostenible (DOTS). Guía de implementación de proyectos. Buenos Aires: Banco Mundial. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 94 CHAPTER 4 Institutions, Capacities, and Financing in the South Corridor Authors Rosario Vilaboa and William Dillinger Introduction The rapid urbanization process over the past This chapter provides an overview of the 40 years, coupled with poor planning and opportunitiesand challenges related to urban inadequate local capacities, posed significant development in the South Corridor, bearing challenges for the South Corridor's municipali- in mind local and national land-use planning ties. Responsibilities for urban planning in Costa policies. To this end, a desk review of the literature, Rica are defined under a complex legal, planning, interviews with local governments, and the defini- and land-use planning system. Several national and tion of municipal competencies based on organiza- subnational actors are involved in this system, with tional and management capacities were carried out. unclear roles and interdependencies, hampering coordination in realizing urban and regional devel- The chapter contains (a) a description of the opment in the country. In addition, municipalities institutional, regulatory, and financial arrangements have limited capacities and financial resources to governing Costa Rican urban development; (b) an meet their responsibilities. Specifically, the South identification of the key institutional and coordina- Corridor municipalities - Aserrí, Alajuelita, and tion challenges, as well as an analysis of municipal Desamparados - lack the technical, financial, and competencies in development, urban planning, and organizational resources to consolidate an efficient financial management, with emphasis on the South urban development system. Corridor local governments - Aserrí, Alajuelita, and Desamparados; and (c) recommendations related to strengthening urban planning and management in these three Costa Rican cantons. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 95 I. Municipalities in Costa Rica are responsible for key urban infrastructure services Local governments play a key role in the pro- personnel regulations. According to the Costa vision of urban infrastructure services. Under Rican Municipal Code, the municipality is a legal Costa Rican law, the municipal government is entity vested with assets, and full authority to responsible for (a) land-use planning; (b) develo- enact bylaws and sign agreements as appropriate pment planning; (c) provision of services;109 and to perform its duties. In other words, each muni- (d) regulation of commercial and economic acti- cipality defines how it is organized internally, pre- vity.110 Unlike some other countries in the region pares and promulgates its regulations, and charges such as Brazil or Colombia, for example, local fees and rates for services it provides, while the governments in Costa Rica do not play any role central government has no authority over these in providing education or public health services. decisions as long as they are not in conflict with Moreover, some of the public services are provi- the existing national legal framework. ded by both the local government and the central government: for example, the provision of potable Complementary to the Municipal Code, addi- water (aqueduct) and sewerage is mostly provided tional laws and regulations define the compe- by the Costa Rican Institute of Aqueducts and tencies of both local governments and other Sewerage (AYA), but in cantons such as Aserrí, by public agencies with local jurisdiction. This the municipality. normative body establishes the working condi- tions, coordination, management, planning, and The legal framework grants substantial auto- the relationship between national and local public nomy to local governments. The Costa Rican bodies. In general terms, instruments of national Municipal Code (Law Nº 7794), as amended jurisdiction set out the framework for processes in 1998, establishes, in general terms, the legal such as decentralization and transfer of powers, status, functional responsibilities, and revenues planning, provision of services, and municipal of the municipalities, along with the mayoral and financial management. The most important of council election procedures, municipal budget them are highlighted in Table 1. (See Annex for a preparation and utilization, and the municipal more exhaustive list.) TABLE 1. Key legal and regulatory instruments by local scope Local Government Organization • The Código Municipal (Ley 7794/1998 with subsequent amendments) sets out, in broad terms, the legal status, functional responsibilities, and revenues of municipalities, along with the procedures for the election of mayors and council members, the preparation and execution of municipal budgets and the regulations governing municipal personnel. Continues > 109 A municipality provides services for the collection, disposal, and treatment of solid waste; storm and sewer drainage; aqueducts; public street lighting; municipal police; parks and green areas maintenance; cantonal road network maintenance; road and public area clean-up; administration of markets, squares, and fairs; cemeteries; and any other urban or non-urban services within the canton. 110 The canton is a tax administrator of the property tax, fees, and rates for public services, licenses (tax), permits, and fines. Elaborated in more detail in the rest of the chapter. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 96 TABLE 1. Key legal and regulatory instruments by local scope (Continued) Planning • The Urban Planning Act Nº 4240 establishes the criteria for the preparation, approval, and implementation of cantonal regulatory plans (also known as land-use plans).111 The National Housing and Urbanism Institute ( Instituto Nacional de Vivienda y Urbanismo, INVU)112 and the Ministry of National Planning and Economic Policy (MIDEPLAN) provide guidance, coordination, and technical advice to municipalities in this matter. • In the case of the cantons along the coastal zone, the Maritime Terrestrial Zone Act Nº 6043113 defines the administration, control, and protection of the maritime-terrestrial zone114. Due to the touristic nature of these zones, the Costa Rican Tourism Institute has the mandate to approve the coastal regulatory plans in collaboration with the INVU.115 Provision of services • The Integrated Solid Waste Management (ISWM) Act Nº 8839 states that municipalities are responsible for the integrated management of waste generated in their canton. • Solid Waste Management in Costa Rica is a social co-responsibility. Each municipality implements its collection methodology and decides on the implementation process (for example, in-house trucks, subcontracting private service suppliers). The Spotlight on Solid Waste Management elaborates on this responsibility. • The Public Roads Act Nº 5060 transfers the cantonal road network administration to municipalities. • The Special Law for the Transfer of Functions: Full and Exclusive Management of the Cantonal Road Network and Decree 40137-MOPT confer to the municipalities the exclusive responsibility for maintaining the cantonal road network. The management of the cantonal road network falls under the full and exclusive responsibility of local governments. • Article 137 of the Municipal Code established a Cantonal Sports and Recreation Committee in each municipality. This committee has been vested with legal rights to build, manage and maintain the sports facilities owned or managed. • Other administrative jurisdictional instruments detail how local governments administer municipal public cemeteries, and municipal facilities, among others. Revenue Collection117 • Law Nº 7509, passed in 1995 and amended over time, confers powers to municipalities to administer and collect property taxes. It does not, however, permit municipalities to set the rate of the property tax or determine exemption policies. • Law 7794 (referred to above) specifically authorizes municipalities to impose certain taxes on businesses as well as fees for municipal services. The list of municipal taxes must be approved by the Legislative Assembly. According to the law, municipalities are permitted to set the rates of services charges, provided they are based on the cost of providing each service. • Tax Simplification and Efficiency Act Nº 8114 provides cantonal road maintenance funds to the municipalities, under a participatory approach to implement works (Cantonal Road Board, Municipal Council). Of the total revenue from fuel tax sales, the central government allocates 22.25% for cantonal road network maintenance, distributed among the cantons as follows: 50% based on the length of the cantonal road network in each canton, as surveyed by the local governments and duly recorded at the Ministry of Public Works and Transportation (MOPT); 35% based on the MIDEPLAN Social Development Index (IDS), and the remaining 15% distributed equally to each municipality. (Requirements to be submitted by local governments to manage fund transfers in conformance with Law Nº 8114, Decree Nº 41550-MOPT.) 111 The Regulatory Plan is the local planning instrument that defines in a set of plans, maps, regulations, and any other document, graphic, or supplement, the development policy and plans for population distribution, land use, roads, utilities, and community facilities. 112 The INVU has authority to issue urban development regulations as long as the municipal governments have not issued specific urban planning regulations within the limits of their territorial jurisdiction, or to supplement them in the absence, omission, or lack of clarity of the provisions established in the Regulatory Plans. 113 In Costa Rica, the maritime-terrestrial zone comprises two sections: the PUBLIC AREA, which is the 50-meter wide strip measured from ordinary high tide, and the areas that are left uncovered during low tide; and the RESTRICTED AREA, consisting of the strip of the remaining 150 meters, or the remaining land in the case of islands. 114 The maritime-terrestrial zone is inalienable, no private party may take possession of this land, so its use and enjoyment are regulated through permits and concessions granted by the respective municipality. 115 Under Article 31 of the Maritime Terrestrial Zone Act, all urban or tourism development plans that affect the maritime-terrestrial zone require approval by the National Institute of Housing and Urbanism and the Costa Rican Tourism Institute, as well as by other official agencies with jurisdiction to intervene for this purpose as provided by law. Any change in the soil use of the maritime-terrestrial zone requires amending the law due to the nationwide impact that this would have (for example, ports). In case the maritime-terrestrial Zone is a natural heritage, hence, not subject to exploitation (for instance, reserves or national parks), then the Ministry of Environment and Energy (MINAE) intervenes and the National System of Conservation Areas acts managing jointly the zone. 116 Local governments will be responsible for planning, programming, designing, managing, financing, executing, and monitoring their construction, conservation, signage, demarcation, rehabilitation, reinforcement, reconstruction, concession, and operation, in accordance with each municipality's (five-year) road maintenance and development plan. 117 In Costa Rica, a law is required to introduce a new local tax, while regulations are required to implement a fee (for services rendered). For example, to collect a municipal permit tax, each municipality has a specific law. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 97 A. The municipality’s role in urban FIGURE 1. Urban planning is a multilevel process and planning and land-use planning in structure, as is the case of the GAM Central Region Costa Rica NATIONAL LEVEL The Urban Planning Act sets out the objectives NATIONAL LAND-USE POLICY of urban planning in Costa Rica, namely to NATIONAL LAND-USE POLICY PLAN ensure the safety, health, comfort, and welfare 2012 - 2040 PNOT - PLANOT of the community (Urban Planning Act Nº 4240). As an administrative process, land-use planning takes place at the national, regional, REGIONAL LEVEL and local levels. The relationship between nation- al, regional, and local plans is cascaded, in line REGIONAL LAND-USE PLAN FOR THE GREAT METROPOLITAN AREA with the guidelines outlined in the national plan, 2013-2030 GAM according to current regulations, and consistent with the local level’s detailed territorial perspec- tive (see Figure 1).118 At the national level, central LOCAL LEVEL government mandates for matters such as environ- mental impact, conservation, or water manage- REGULATORY LAND-USE PLANS ment are established. At the regional level, for example, the 2013–2030 GAM Plan (correspond- ing to the Central region of the country) details criteria for the development specific to the region, Source: Developed by authors. based on technical criteria and competencies. And at the local level, municipalities exercise jurisdic- tion through urban planning and regulatory plans. Urban planning at the national and regional Local governments120 exercise urban planning levels is coordinated by the central government at the local level; the main instrument for local through the Ministry of Housing and Human land-use planning is the regulatory land-use plan Settlements (MIVAH) and the INVU, which (Plan Regulador). Regulatory land-use plans exercise technical and advisory functions in are instruments of negotiation, coordination, national and regional territorial planning119. Costa consensus, and decision-making involving all Rica does not have a medium level of organization social, public, and private stakeholders linked and administration, that is, regional plans are part to a canton.122 These plans are fundamental of the tasks carried out by MIVAH and INVU. for municipal autonomy since they give the The land-use planning instrument in effect at the municipality the exclusive power to administer national level is the National Land-Use Planning the territory. Central government institutions may Policy (PNOT) which incorporates climate only intervene in a complementary fashion or change and risk management, as cross-cutting if national regulations are contravened.122 These themes in the country's planning. At the regional plans are subject to modification and updating level, and in the case of the GAM, the Urban every five years following a five-year monitoring Development Plan for the Greater Metropolitan and evaluation exercise. The municipalities have Area 2013–2030 is in effect. It aims to improve the power to invalidate, in full or in part, the the quality of life of the population through Regulatory Plan and/or the Urban Development the competitive economic development of urban Regulations in force. centers in equilibrium with the natural, agro- productive, and urban environment. 118 Regulatory Plan Preparation Handbook as a land-use planning instrument, INVU 2017. 119 Reforms pursued by the government in 2022/2023 may lead to the merging of the two entities. 120 ARTICLE 169 of the Constitution acknowledges the competence and authority of the municipalities to plan and control urban development within the boundaries of their jurisdictional territory. 121 In this context of autonomy, the municipalities plan and control the urban development of their territory pursuant to Article 169 of the Constitution; Article 13 paragraph p) of the Municipal Code, and Articles 10 paragraph 1); 15-19 of the Urban Planning Act; the National Planning Act; the Organic Environmental Act; and its regulations thereunder concerning soil use, management and conservation, roads, construction, mining, emergencies and risk, cadaster, and patrimony, among others. 122 By constitutional ruling 5445-99 of the Constitutional Chamber of the Costa Rican Supreme Court. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 98 The regulatory land-use plan covers five basic the local governments are to coordinate. For urban and territorial management areas and example, the stewardship for land-use planning requires integration with other regional and lies with the MIVAH, while technical control and national planning instruments (see Figure 2). oversight are carried out by the INVU. The regulatory land-use plan has five basic urban development regulations: (a) zoning, (b) subdivi- The Cantonal Institutional Coordination sion and urbanization, (c) official map, (d) urban Councils (CCCIs) were established to spear- renewal, and (e) construction. In addition, it is head the coordination of public policy with complemented by planning instruments to regulate local impact. The Transfer of Powers from the local roads, mobility, public areas, landscape, urban Executive Branch to the Municipalities Act Nº form, outdoor billboards, land management instru- 8811 established the CCCIs to design, coordi- ments, and architectural and intangible heritage. nate, implement and oversee public policy with local impact, as well as mechanisms such as agree- B. Inter-institutional coordination ments or partnerships leading to inter-institution- and decentralization al coordination. The CCCIs are coordinated by the municipal government, and include a repre- The relationship between the central govern- sentative of each central government institution ment and the municipalities is complex and at operating in the canton, a representative of the times unclear. Municipalities are called upon to municipal federation to which the municipality coordinate with national entities in the exercise is affiliated, members of the District Councils, of their land-use planning functions. Depending representatives of associations, and civil society on the competence and scope of work, there are groups that promote the enforcement and imple- different central government agencies with whom mentation of public and cantonal policies. FIGURE 2. The Regulatory Land-Use Plan Preparation Handbook defines five working phases PRELIMINARY TERRITORIAL FORMULATING ADVICE, REVIEW, IMPLEMENTATION, PREPARATION DIAGNOSIS THE PROPOSAL AND ADOPTION MONITORINGN & OF A REGULATORY EVALUATION PLAN • Regulatory Plan • Methodological • Urban development • Request the INVU • Appointment of the Commission framework policy formulation for advice and Regulatory Plan • Planning area • Work plan and • Territorial forecast assistance Commission delimitation timetable • Formulation of • The INVU advising • Implementation of • Overall budget • Data collection and strategic actions in coordination the plan estimation systematization • Formulation of with SETENA and • Annual monitoring • Financial • Base mapping urban development SENARA. • Five-year evaluation management • Analysis by axis regulations • Environmental • Terms of Reference • Identification of • Zoning map feasibility • Bids results • Monitoring & management • Unified analysis Evaluation Strategy • Public hearing • Incorporate changes or additions to the proposal • Submit the proposal for review • Proposal review for approval or rejection by the INVU • Approval • Adoption • Disclosure Source: Regulatory Plan Preparation Handbook as a land-use planning instrument (2017). INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 99 Parallel to this figure, the Regional Local government partnership agreements are Coordination Councils (CRCs) were estab- also management and intermunicipal working lished in 2010 as regional coordination bodies tools. For example, in 2021, the Intermunicipal to implement supra-cantonal plans and pro- Active Mobility Agreement was entered into grams, funded by budgets from municipalities, between the municipalities of Desamparados, ministries, and decentralized agencies. The regu- Escazú, Belén, Curridabat, Montes de Oca, and lation requires the central overnment to design San José. The purpose of this agreement is to budgets based on the performance of cantonal devise strategies to address mobility issues compre- programs.124 Both the CRCs and the CCCIs were hensively and foster knowledge and best practices established to coordinate development strategies, exchange among the most experienced entities. policies, and projects, defined in local and national The agreement's technical support is provided by planning instruments by central government insti- central government agencies such as the MOPT, tutions, municipalities, and cantonal stakeholders. the Costa Rica Road Safety Council (COSEVI), the INVU, the Municipal Development and Municipalities may also join federations and Advisory Institute (IFAM), the National Council confederations125 under duly regulated orga- for Persons with Disabilities (CONAPDIS), and nizational, administrative, and operational the German Development Cooperation (GDC). arrangements. An example of these associations is the Metropolitan Federation of Municipalities In the long run, government efforts to decen- of San José (FEMETRON), in the GAM of Costa tralize will affect the relationship between the Rica, which has been working since 2004 on central and local government. In 2001, Costa urban development projects in solid waste man- Rica embarked on a gradual decentralization pro- agement, water resources, road infrastructure and cess of transferring responsibilities and resources the metropolitan regulatory plan for the member from the central government to the municipali- cantons. FEMETRON is currently made up of ties. This decentralization kicked off with the the following municipalities: Alajuelita, Aserrí, amendment to Article 170 of the Costa Rican Curridabat, Escazú, Goicoechea, Mora, Moravia, Constitution in 2001 (Law Nº 8106/2001). As San José, Santa Ana, and Tibás.126 amended, all responsibilities of the Executive Branch financed by national budget programs In 2010, the concept of Mixed Private-Public that are (a) susceptible to being exercised locally Ownership Companies127 was introduced to and (b) not specifically assigned to the Executive help local governments build strategic partner- Branch by the Constitution, will be transferable, ships with public and private sector institu- except for matters related to health and education. tions. These companies may be established for the The amendment specified that a separate law, or creation, implementation, installation, and opera- series of laws, would determine which powers tion of infrastructure required for community and would be transferred from the Executive Branch regional development, as well as municipal utility to the municipalities and how the corresponding management. The objective is to satisfy, in a timely resource allocations would be apportioned among and adequate manner, the public interest, sound them. administration, planning, and maximization of public funds and services. Mixed Private-Public In 2010, the Transfer of Powers from the Ownership Companies represent an opportunity Executive Branch to the Municipalities Act128 to spur local development with private investment was passed, establishing the regulatory frame- and inter-institutional coordination for example work for decentralization. This overarching law for intermunicipal mobility addressed in Chapter set the tone for a series of special laws that would 3 of this Review. be established to decentralize each jurisdiction 124 Regulations for the establishment of the Cantonal Institutional Coordination Councils (CCCIs) and the Regional Coordination Councils Nº 34804-PLAN. 125 Article 10 of the Costa Rican Municipal Code, Law Nº 7794. 126 Concerning land-use planning, the preparation and approval of a metropolitan regulatory plan to improve the quality of life of the region's residents is being prepared. The intermunicipal agreement for processing cantonal regulatory plans and the Metropolitan Regulatory Plan, as well as the street infrastructure agreement, are currently being discussed. To enhance the quality of water resources and environmental sanitation, a feasibility study is being conducted for a West Region wastewater treatment plant projected to generate 300 tons of sludge. The Road Infrastructure and Urban Mobility are intended to consolidate a high-level technological management model. The project is gathering information from four cantons and the GAM financial projection is being developed. 127Mixed Private-Public Ownership Company Regulation Act Nº 8828. 128 Law Nº 8801, passed in 2010. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 100 and its corresponding resources. The law stated FIGURE 3. In 20 years, Costa Rica has decentralized only one that any function not explicitly conferred on competence central authorities would be subject to ‘decentral- ization’, with the notable exceptions of education and health. These functions would be financed 2001 Amendment to Article 170 of the Constitution of Costa Rica in 2001 (Law Nº 8106) through a gradual increase in the percentage of revenues transferred from the central government to the municipal level. 2010 Passing of Transfer of Powers from the Executive Branch to the Municipalities Act Nº 8801 The purpose of implementing the general law, and other successive special laws,129 is to embark on the gradual decentralization of competen- cies, the transfer of economic resources to the 2015 Passing of the Special Law for the Transfer of Functions: Full and Exclusive Management of the Cantonal Road Network N°9329 municipalities, and a capacity-building agenda. (approved and in force). The gradual decentralization of competencies must be approved by the Legislative Assembly of Costa Rica, which evaluates the conditions, resources, 2021 Legislative Assembly is discussing (August 2021) the possibility of and implementation capacity of the activity to be transferring full and exclusive responsibility for educational equipment decentralized. The decision is based on dialogue and infrastructure. and compromise between the representatives of local governments, the citizenry, and the national institution related to the subject matter being FIGURE 4. Local spending as a share of total government discussed. General Law Nº 8801 states that the expenditure central government is mandated to transfer 10 percent of the ordinary revenues calculated for the 23.3% 25% fiscal year in a progressive and regulated manner. Likewise, a multi-sectoral agenda for institutional 19.0% 20% capacity building is proposed to enable munici- palities to assume new competencies. 15.8% 15% However, in the more than 10 years since the 8.5% 10% 7.7% general law was enacted, progress has been made in only one special law, which decentral- 6.1% 3.7% 4.2% izes the cantonal road network maintenance. 5% Since the Transfer of Powers from the Executive Branch to the Municipalities Act was enacted in 0% 2010, Costa Rica managed to decentralize the Costa Rica Paraguay Mexico El Salvador Peru Chile Brazil Colombia cantonal road network preservation and mainte- Source: IMF. Government Finance Statistics 2020. nance, through the Special Law for the Transfer of Functions: Full and Exclusive Management of to meet the needs of schools and the welfare of the Cantonal Road Network Nº 9329 (approved students. and in force). The decentralization process has not been fully The possibility of transferring full and exclu- implemented, a fact also reflected in local gov- sive responsibility for educational equipment ernment expenditure as a share of total nation- and infrastructure (not educational services) al public spending. Local government spend- to local governments is under discussion—it is ing accounts for only about 4 percent of total currently carried out by the Education Boards government expenditure in Costa Rica, roughly and Administrative Boards.130 Municipalities are equivalent to the proportion seen in Paraguay and encouraged to manage and execute resources from Mexico, but much lower than in Chile, Brazil, or the National Budget and other financial sources Colombia (see Figure 4).131 129 Special laws are used to decentralize each particular competence, framed in the general law. 130 General Regulations for Education Boards and Administrative Boards Nº 38249-MEP. 131 Municipal Police Strengthening Act Nº 9542. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 101 II. Challenges of cantonal planning and land use in the South Corridor A. Urban planning instruments are territory, thus being partial plans. Only half of few and obsolete the existing plans—21 of them—have the envi- ronmental viability approval of the SETENA, The development of a regulatory land-use plan and only 4 out of the 40 existing plans have a implies a significant investment of financial hydrogeological vulnerability matrix. There are 15 and technical resources, not available in all cantons throughout the country that have not ini- cantons. The preparation of a regulatory land-use tiated any land-use planning process. In the GAM, plan requires technical specialists, as well as staff for example, only 8 of 31 municipalities have in charge of complementary tasks. The inter- issued all the urban planning regulations required institutional coordination and management of the by law.133 As seen in previous chapters, the absence agencies responsible for urban planning and land- of regulatory plans increases the likelihood that use planning require resources, new technologies, development takes place on land that is highly and extensive stakeholder engagement that are not vulnerable to natural hazards (see Chapter 2). always available in the canton. In the South Corridor cantons, Aserrí and In addition, national institutions tasked with Alajuelita lack a cantonal regulatory land-use supporting the cantons in this process do not plan, so they rely on national land-use planning have the staff or budget to do so. For example, instruments. To date, there is no land regulariza- the INVU's resources are insufficient to effec- tion and land-use planning project (regulatory tively serve the 84 local governments. Institutions plan) in the canton of Aserrí, while in Alajuelita, such as SENARA or the MOPT have technically the regulatory land-use plan is in the prelimi- sound data and studies, but they are not carried nary preparation stage. Both municipalities report out at local or district scales, thus not completely organizational and management weaknesses, as fulfilling the needs of local governments. In gener- well as insufficient resources for adequate urban al, the central government and the municipalities management and implementation of the munici- share the responsibility to effectively accomplish pal cadaster. In practice, these municipalities use the land-use planning and management of the the general regulations issued by the INVU for country's territory.132 building permits, subdivisions, urbanizations, and other urban development-related processes. According to the INVU, only 40 out of the 84 cantons nationwide have a regulatory land-use The update of the regulatory land-use plan plan, half of which are outdated and/or are in Desamparados is advanced. The hydrologi- partial plans. About 51 percent of the regulatory cal, environmental, and vulnerability studies are plans were approved before 2000. In addition, completed, and so have the public consultations 21 of the 40 fail to consider the entire canton's on the diagnostic. A special feature of the plan is 132 The Government Plan indicates that “every project must be based on a technical analysis to have a sustainable first world train. In the same way, it must contemplate the development of complementary infrastructure (bus stops, parking lots, commercial areas, among others) to enhance its impacts and benefits.” 133 According to Articles 5 and 6 of the Municipal Code, municipalities shall encourage the informed and democratic participation of the people in local government decision-making. Public institutions are obliged to collaborate so that these decisions are duly complied with. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 102 the preparation of an inventory of urban needs by However, land-use planning and urban devel- district. The relevant mapping, zoning, and stud- opment decision-making require discussion ies must be approved by the INVU. A process of among multiple stakeholders within a com- public consultation and stakeholder engagement plex regulatory framework. From an institu- within the municipality for final approval is also tional perspective, at least 28 public agencies required. have been identified with whom local govern- ments must coordinate (see Table 2). In addi- In the absence of a regulatory land-use plan, the tion to these agencies, the National Commission municipality can appropriate existing national- for Risk Prevention and Emergency Attention level regulations and laws. For example, in 2020, (Comision Nacional de Emergencia, CNE) and a regulation was passed nationally that establishes the Comptroller General of the Republic (CGR) certain requirements regarding access to public are also involved in monitoring and controlling roads, subdivisions, assignment of public use areas, disaster risk management—the CNE actively par- easements, and minimum standards for street, ticipates by providing criteria for land use and sidewalk, and roadway construction, among other planning of highly vulnerable areas (volcanic, provisions. These Subdivision and Urbanization flooding, seismic activity, and so on). Regulations are relevant for municipalities lacking a regulatory land-use plan, or those that do have Approval for the creation or modification of one but lack specificity. municipal regulations is burdensome. Currently, the processes required to create or modify munici- The central government is responsible for veri- pal regulations must be approved by two nation- fying that the regulatory land-use plans are in al institutions in Costa Rica: SETENA (which compliance with the regulatory framework and reviews environmental aspects) and INVU (which that they meet the urban planning technical cri- focuses on urban matters). These approval processes teria. Public agencies are bound to work together focus on defining the studies needed to justify the and must coordinate the execution of works and regulation, instead of the regulation itself. Relaxing projects in the canton.134 and simplifying them represents a good opportu- nity for improvement, in such a way that municipal regulations are easier to adopt and update. TABLE 2. Institutional urban planning competencies and their relationship with local governments CENTRAL GOVERNMENT AGENCY RELATIONSHIP WITH THE LOCAL GOVERNMENT Ministry of National Planning and Economic Coordinate the National Planning System and regional planning instruments Policy 84 local governments with financial, political, Administration of cantonal interests and services and administrative autonomy Superior budget oversight Comptroller General of the Republic (oversight) National Housing and Urbanism Institute Plan the development and growth of cities Coordinate activities relating to urban planning with all state agencies Provide advice and assistance to municipalities Review and approve Regulatory Plans Ministry of Environment and Energy Inter-institutional coordination to promote quality of life and environmental National System of Conservation Areas conservation. National Forestry Office Public water use permits National Environmental Technical Secretariat Environmental impact assessments National Groundwater, Irrigation, and Drainage Service Ministry of Agriculture and Livestock Continues > 134 Comptroller General of the Republic, 2021. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 103 TABLE 2. Institutional urban planning competencies and their relationship with local governments (Continued) CENTRAL GOVERNMENT AGENCY RELATIONSHIP WITH THE LOCAL GOVERNMENT Ministry of Financing National road network administration. Ministry of Public Works and Transport Transfer of the fuel tax (22.25%) in favor of the municipalities, for cantonal road National Public Transportation Council network maintenance. National Road Council National Road Safety Council Technical support and coordination with local governments in road affairs. Federated College of Engineers and Architects of Costa Rica National Cadastre Maintain cadastral information permanently updated and accessible to municipalities Costa Rican Tourism Institute Superior and general surveillance of the maritime-terrestrial zone. Approval of urban and tourist development plans in the maritime-terrestrial zone. National Emergency Commission Link instruments, programs, and public resources with ordinary and extraordinary institutional and sectoral actions to prevent the occurrence of disasters and emergency response in all its phases. National Museum Administration, designation of historical and architectural heritage. Ministry of Culture, Youth and Sports, Conservation advisory services. Department of Historical Heritage Ministry of Environment and Energy Make decisions and settle on the ownership, exploitation, use, governance, or surveillance of public domain water resources. Aqueducts and Sewerage (public water supply) and utilities Department of Geology and Mines Absolute ownership of mineral resources. Ministry of Environment and Energy Award concessions for prospecting, exploring, exploiting, and processing mineral resources, in conformity with the law in effect. National Commission on Indigenous Affairs Technical Council of Civil Aviation and the Aircraft operation permits and licenses. General Directorate of Civil Aviation, Ministry of Public Works and Transportation Source: Developed by authors. The establishment of the CCCIs would likely and 2020, the working sessions in these spaces were reconcile the programs and budgets of public focused on emergency response, which was appro- entities toward a more effective and efficient priate. But the long-standing problems related to local public administration; however, in most of investment coordination demonstrate the need to the cantons, the local governments struggle to enhance effective coordination, the use of updated exert a leading coordination role. Coordination information, and communication between the cen- processes entail a significant investment of time and tral government and the municipalities. resources by public institution personnel who are deployed in various workspaces and different can- In addition, the legal character of the Mixed tons. The timeframe and implementation of proj- Private-Public Ownership Companies, as well as ects and budgets between the institutions and the their complex establishment and regulation pro- municipalities are also not aligned. In most cases, cedure, have curtailed their proliferation. Some public institutions program and budget activities companies were established in the province of according to the planning framework at the nation- Guanacaste (Tilarán, Cañas, Bagaces, Abangares) al level and do not necessarily respond to a regional and others in the province of Puntarenas (Golfito) or local need. In the pandemic context, during 2019 for sanitary landfill management, as well as for INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 104 road maintenance in the canton of San José, but Weak municipal institutional capacities have all of these were unsuccessful. A proposal to work consequences on urban development and land- with Mixed Private-Public Ownership Companies use planning: first, constructions are carried is now being discussed among municipal authori- out illegally, failing to meet the minimum safety ties135 so that this structure can be used for asphalt requirements and in inadequate spaces or areas; processing; the goal is to enable the private sector second, the projects, urban amenities, and the to sustainably manage asphalt supplies, warehouses, overall urban system are not consistent with the and materials that the MOPT assigns them to the development dynamics; and third, the munici- local governments. pality fails to collect revenues from those non- compliant construction works even when the B. Uncontrolled urban sprawl persists municipality continues to provide utility services. despite building and development In South Corridor cantons, a total of 5,089 m2 regulation efforts of construction took place in 2020 without buil- ding permits (see Table 3), precluding the local Municipalities are responsible for building per- government from generating important revenues. mits or construction licenses. These permits are Desamparados has the largest area under cons- awarded in line with the regulatory land-use plan truction with no municipal licensing or certifi- zoning regulations. Construction site inspections cation, however, this municipality has, overall, and the proper issuance of municipal permits are more institutional controls and capacities than vital for disaster risk reduction and adequate urban the neighboring cantons of Aserrí and Alajuelita. development. Permit management requires con- The City of Desamparados is staffed with over solidated regulations and procedures within the 500 employees, with streamlined processes in municipality, as well as technical information plat- place. Meanwhile, Aserri and Alajuelita have low forms allowing for adequate inspection and control. technical and administrative capacities to effecti- vely manage and steer urban development in their Municipalities with fragile administrations and territories. meager resources lack adequate controls and technical criteria to manage construction and The size of Desamparados and Aserrí can- sprawl. Building permits are an important tool to tons make effective inspection and oversight ensure the quality of construction works and their costly and burdensome. More than half of the safe location. Nevertheless, in 2020, 35 percent of canton of Aserrí is considered rural, and districts all construction in Costa Rica was carried out in such as Frailes, Patarrá, and San Cristóbal de the absence of municipal permits. That is, they are Desamparados require long trips along roads that works that were neither registered nor compliant are in poor condition or very busy. This condition with the building requirements, corresponding requires greater investment by the local govern- land use, and payment of municipal permits or ment for municipal supervision and inspection, licenses, among others. not only for construction works but also business activities. TABLE 3 Areas under construction, by canton, without municipal licensing, in the second half of 2020 Canton Areas under construction without The estimated cost of works Estimated revenue foregone municipal licensing (m2) without municipal licensing (CRC) by municipalities (1%) (CRC) Desamparados 2,666 853,120,000 8,531,200 Alajuelita 1,532 490,240,000 4,902,400 Aserrí 891 285,120,000 2,851,000 Source: Special report: Construction works without licensing or certifications, the second half of 2020. 135 Bill: Law for the transfer of inputs and collaboration between the MOPT and municipalities for the improvement of road infrastructure, September 2021.xws INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 105 The digitalization of construction licensing C. Institutional capacities for effective results in improved transparency, traceability, urban management in the South quality, safety, and reliability in the process. Corridor The regularization of procedures through a stan- dardized set of requirements and efficient user The technical, political, and administrative communication allows the local government to capacities of each municipality define the effi- invest in new information technologies, upda- cacy and effectiveness of urban planning ins- te databases, and establish working regulations. truments. Technical staff, information systems However, the effective implementation of this and technologies, monitoring and inspection pro- system also requires significant financial and cesses, citizen participation, and financial resour- human resources on the part of the municipality. ces are essential to an effective land-use planning As of 2019, sixty-two cantons enabled automa- process. Likewise, the local institutional manage- ted licensing systems (47 in 2018), including ment capacity and provision of services depend Desamparados and Aserrí. on the financial resources and human capital at their disposal, as well as the political proposal that Nevertheless, this did not necessarily translate defines the strategy and roadmap to be followed into effective services (Table 4). For example, by the municipality every four years. in Alajuelita, building permitting and licensing are 100 percent digital; however, effectiveness The GAM municipalities display a wide spec- is 58 percent given the lead time between the trum in their technical and administrative application and final approval, the complexity of capacity. In 2021, the Comptroller General of the process, and the number of projects received the Republic conducted a specific review of the by the municipality. In comparative terms, the GAM-wide local governments' capacity for urban most effective municipality in automated permit and land-use planning.139 The study assessed the processing is 20 points lower than 100 percent— managerial capacities of 31 cantons throughout Perez Zeledon, which scores 78.6 percent (CFIA the GAM to promote inter-institutional or inter- 2020).136 municipal coordination and good practices in TABLE 4 Municipal digital effectiveness ranking, 2019–2020 reports Date of measurement Position Modality Municipality Indicator 1-2020 137 35 100% automated Alajuelita 53.3 (−11) 2-2020 138 53 100% automated Alajuelita 59.6 (−1) 1-2020 66 Mixed (automated and in-person) Desamparados 51.9 2-2020 71 Mixed (automated and in-person) Desamparados 52.9 (−5) 1-2020 78 Mixed (automated and in-person) Aserrí 33.8 2-2020 77 Mixed (automated and in-person) Aserrí 46.0 (+1) Source: Municipal digital effectiveness ranking, automated building permitting 2019–2020. Note: For 2019, the measurement was only conducted in municipalities with 100 percent automated processing, that is, Alajuelita; and in 2020, a mixed modality was incorporated, including municipalities such as Desamparados and Aserrí, which offer both possibilities. 136 This specific data contrasts with the total number of inspections and illegal constructions in this same canton, one of the highest nationally, that is, it is an efficient municipality in permitting and licensing, but it also has one of the highest numbers of permits omitted. 137 57 municipalities were measured (no comparative analysis of the mixed scheme). 138 82 municipalities are included in the ranking, mixed and automated. 139 The report on GAM local governments' capacity to carry out urban planning and land-use planning used an instrument to individually and cooperatively determine the capacity of local governments to assume their land-use planning role, defining three categories: low, medium, and high. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 106 urban management. Specifically, 10 municipa- Planning, Citizen Participation, and lities show strong urban management and plan- Accountability; Environmental Development; ning capacity, 8 demonstrate moderate capacity, Economic Services; and Social Services. The key and the remaining 13 show poor capacity to performance challenge in Desamparados lies in carry out this task. According to this report, Citizen Participation given the absence of arran- Desamparados was found to be highly capable gements and instruments for fostering stakehol- of carrying out urban planning and land-use der dialogue and local governance. planning in its territory, but Alajuelita and Aserrí were not. Aserrí reflects a significant improvement in management quality in 2018. The municipality Based on the 2018 Municipal Management scored 66.06, with incipient development in insti- Index,140 South Corridor municipalities have tutional management and environment and social varying degrees of capacity and performance services, as well as in internal planning and citizen versus the 31 GAM cantons and the national participation. Urban upgrading, park mainte- average (see Table 5). This index, also prepared by nance, road and public areas clean-up, and waste the Comptroller General of the Republic, awards collection services are deficient, scoring between 81 municipalities evaluated in 2018 an average 0 and 35.51 points. Despite these failings, from score of 65.47 points (out of 100), by evaluating 2017 to 2018, the municipality of Aserrí saw an 61 indicators in 5 key management areas. On ave- increase of 23.04 points, improving on issues such rage, South Corridor municipalities scored 71.5 as internal control, administrative procurement, above the national average; however, this average accountability, and social works and services. score is skewed by the high performance showca- sed by Desamparados. The municipality of Alajuelita is a local gover- nment with limited capacities pertaining The municipality of Desamparados is one of to urban service management, parks, urban the municipalities with the best capacities upgrades, internal control, and road and nationwide. Based on this index, Desamparados public areas clean-up. The municipality scored scored 86.09, on a scale of 0 to 100 points. 62.35 points. However, Alajuelita outperformed Desamparados ranks 10 out of 81 municipali- Aserrí in economic and social service manage- ties evaluated. The index specifically measures ment, environmental management, planning, and Institutional Development and Management; institutional management. TABLE 5 Results of the 2018 Municipal Management Index for South Corridor Local Governments Area of evaluation National GAM Alajuelita Aserrí Desamparados (61 Indicators) Average (31 cantons) Institutional Development and Management 77.29 84.04 64.99 88.02 87.25 Planning, Citizen Participation, and 66.77 77.16 57.96 70.18 82.88 Accountability Environmental Development Management 52.54 65.22 69.53 44.43 86.93 Economic Services Management 69.77 73.11 76.10 81.00 82.80 Social Services Management 55.58 65.65 33.75 32.25 91.10 Source: Developed by authors based on the 2018 Municipal Management Index, CGR. Note: In green, those scores are over 80 and higher than the national average and the GAM average. In orange, those scores below the national average and the GAM average. 140 This index was established by the Comptroller General of the Republic of Costa Rica. However, it was discontinued in 2019, and superseded by a more overarching instrument applicable to all governmental institutions across the country, not only municipalities. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 107 D. The South Corridor's economic Desamparados ranks 29/82, positioning itself competitiveness is below average as a canton with optimal performance in most on several counts of the dimensions. Municipal transparency, social capital, and access to public services are the The economic competitiveness of each of best-performing dimensions. Educational covera- Costa Rica’s cantons is tracked by a Cantonal ge, connectivity, and road infrastructure are the Competitiveness Index. This reviews institu- principal challenges faced by the canton. tional performance (for example, transparency) along with infrastructure, health, labor force cha- Aserrí is ranked 44/82, being a canton with an racteristics (for example, skills and competencies) ‘emerging’ performance in most of the dimen- and overall economic conditions, classifying the sions. The municipality displays high standards cantons as Exceptional, Competent, Emerging, in short- and medium-term planning, as well Limited, or Deficient. (Several of these measu- as in sustainable and environmentally friendly res—including those referring to health, labor development actions and strategies. The canton force characteristics, and overall economic condi- is in proximity to ports and airports and has low tions, are largely beyond the control of municipa- levels of traffic congestion. The main challenge lities and thus do not reflect on the competence of lies in the provision of municipal public services individual municipal governments.) and infrastructure relating to social works and services, while the cantonal road network is in Overall, the 2021 Cantonal Competitiveness poor condition. Index ranks the South Corridor's cantons as average (see Table 6; Annex 3 contains a datas- Alajuelita is ranked 59/82, with an ‘emerging’ heet by canton). As shown in Table 6, the major performance, with major challenges in eco- challenges lie in the areas of education and eco- nomic, educational, and connectivity dimen- nomy, where the South Corridor municipalities sions. Similar to the municipality of Aserrí, fall below 50 points. However, challenges differ municipal resources are underinvested in public from canton to canton. service-related infrastructure. Low crime rates provide a safe environment for businesses. In addition, Alajuelita is located close to ports and airports, and has low levels of traffic congestion, and a large proportion of students complete their secondary education. TABLE 6 South Corridor municipalities, performance by 2021 Cantonal Competitiveness Index Pillar Cantonal Competitiveness, Dimension Reviewed Score (1–100 scale) National Average GAM Alajuelita Aserrí Desamparados Institutions 58.8 65.9 52.1 65.1 73.3 Infrastructure 63.3 70.0 58.4 57.7 64.9 Information and Communications Technology (ICT) 59.4 64.9 58.0 60.2 64.2 Adoption Health 70.2 76.6 67.2 74.5 68.6 Skills and Competencies 46.7 54.7 40.8 44.4 46.0 Economy 34.5 42.3 30.9 25.3 37.9 Average 55.5 62.4 51.2 54.5 59.2 Source: 2021 Cantonal Competitiveness Index.141 Note: In orange, those indicators with scores below the national average for each municipality. 141 https://icn.cr/indice/ INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 108 III. The South Corridor faces significant challenges in adequate financial management A. Local governments raise their submitted by the Executive Branch. As a result, revenues from three primary the total amount earmarked for this type of trans- sources fer may vary from year to year. Each local government raises its financial According to the law, these capital grants are resources from three major sources: capital apportioned among the cantons based on popu- grants from the central government, municipal/ lation, land area, and poverty; specifically, the local taxes, and service fees. Unlike most coun- headcount as defined by the National Directorate tries in Latin America (and the rest of the world), of Statistics and Census; the canton's land area Costa Rica does not have a system of recurring and data certified by the Geographic Institute of Costa unconditional (unrestricted use)142 transfers from Rica; and the Multidimensional Poverty Index the central government to the local level. While (MPI) determined by the Ministry of Planning such schemes were envisioned in previous legisla- and Economic Policy. Each municipality must, tion they have never been implemented. in turn, apportion the amounts received among its respective districts, again based on population, B. Capital grants land area, and poverty. The allocation of funds to specific projects must be based on a list prepared The capital grants made by the central govern- by each District Council. ment to the municipalities consist mainly of the transfer of resources for cantonal road mainte- Central government capital grants are focused nance and project-specific capital grants. The on community development, sports facilities, transfer of funds for the cantonal road network and minor road works. The 2020 central gov- is ruled by Law Nº 8114, as discussed in Table 1. ernment budget allocation for capital grants to The transfer scheme for capital works is regulated municipalities was CRC 1.5 billion (US$2.4 mil- by the Control of Specific Budget Lines from the lion). Of this total, almost half went to com- National Budget Act Nº 7755. The law estab- munity development (National Budget Act Nº lishes the terms for transferring resources from 3120), a category that consists largely of urban the national government to meet local or regional planning and does not include cantonal works,144 public needs, "expressed in investment projects 15 percent was allocated to ‘recreation and sports’ or programs of social interest."143 According to (code 3310), and about 10 percent to road trans- the law, the total amount of transfers for specific portation (Economic Activity 2151). The remain- budget lines must be determined by the national ing 25 percent was allocated to a wide range of legislature, based on the national budget request investments, none of them exceeding 3 percent 142 Resources allocated by the central government may be used at the discretion of each municipality. All transfers from the central government to the municipalities are earmarked for a specific purpose. 143 These capital subventions do not necessarily have to be transferred to the budgets of individual municipalities. Alternatively, the works financed by the subventions may be executed through contracts or agreements with other governmental or nongovernmental bodies. Funds can also be transferred to community development associations and other private entities that promote community, local, regional, and national development. 144 According to the Ministry of Finance website. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 109 of the total. In the three South Corridor munici- palities, the only significant-sized project listed in BOX 1. the 2020 budget was a pedestrian bridge, costing How does the property tax work in Costa Rica? CRC 24.5 million (US$40,000). Other proj- ects consisted of a road improvement project in By law, property owners or holders are required to file property tax Aserrí (CRC 2.7 million, US$4,350) and the returns with tax authorities every five years, and if they fail to do so, the construction of a multi-purpose meeting room tax administration (municipality) determines the tax bases either ex officio or in Desamparados (CRC 2.6 million, US$4,200). administratively. In practice, the three South Corridor municipalities maintain Excluding the pedestrian bridge, the average proj- their payer registry and update property appraisals regularly. ect size in the three municipalities was CRC 1.33 million (US$2,100).145 The municipal cadaster provides data on the physical characteristics of each property required for appraisal purposes (for example, square meters C. Taxes of land and buildings) and these are updated periodically, based on building permit data and owners' returns. To update the taxpayer registry, the municipal- Municipalities levy two broad-based local taxes. ity of Desamparados, for example, relies on a private company to perform this The first is the property tax. Under Costa Rican task. In Aserrí, the tax office tracks down owners who have not submitted their law,146 property tax applies to all real estate, urban revised property tax returns within the five years required by law. and rural, both plots of land and buildings, except for land owned by government entities (including Individual properties are appraised following a methodology proposed schools and hospitals), religious organizations, by the National Tax Valuation Entity - Órgano de Normalización Técnica and international organizations.147 Tax liability (Technical Standardization Agency), attached to the Ministry of Finance.149 does not depend on the legal title: any person in The methodology establishes a standard mass appraisal approach, whereby beneficial occupation of a property, whether legal valuation values, expressed in colones, are attached to specific property char- or not, is tax liable.148 See more detail on this tax acteristics. For example, each canton is characterized by homogeneous zones, in Box 1. based on land values prevailing in various areas of its jurisdiction. A value per square meter is assigned to the properties in each homogeneous zone, and the The second tax is a business license tax, termed land value for each property is calculated by multiplying the square meters of the patente. Law Nº 7794 gives municipalities the property by the per square meter value of land in its homogeneous zone. A the power to impose an annual tax on businesses similar approach is used to assign values to buildings, taking into account the as a condition of granting an operating license.151 building's size, age, condition, and other factors.150 The so-called patente is levied on all commercial business activities, including sales of goods and The property tax rate is 0.25 percent of the total value of the property, services. The specific articles regulating business and is applicable throughout Costa Rica; it cannot be altered by the and issuance of operating permits (Articles 88 to municipality. A residential property with a value below 45 minimum wages 92) provide no information on how the value of is tax exempted in full, as long as it is the only homestead owned by the the taxable base should be measured or what the taxpayer and he/she applies the respective tax exemption to the municipal tax tax rate should be: this is done through the pub- administration. lication and definition of specific regulations in each municipality. Municipalities also have other local taxes. The rate is set by law at 0.002 percent of the property Municipal Code enables municipalities to impose value, as determined by the transacting parties a capital gains tax on selling real estate. The tax or a higher value established in the municipality. 145 Source: https://www.hacienda.go.cr/docs/5de51bb0b030f_Ley232.pdf 146 Property Tax Act Nº 7509. 147 Under 2.2. Law for Special Regulations on the application of Law 7509 (Decree 9071), agricultural lands are exempted. 148 According to Article 6 of the law, 'occupants or possessors with a title, whether registrable or not in the Public Registry, with over a year and meeting the following conditions: holders, agricultural entrepreneurs, beneficial owner, rural sharecroppers, esquilmos (agricultural waste pickers), gratuitous land borrowers and precarious occupants. In the latter case, the owner or original possessor of the property may request the Municipality to transfer the tax liability to the current possessor, as of the tax period following the request, following the procedure established by the Regulations of this Law. 149 In conformity with Article 16 of the Property Tax Act, taxpayers are responsible for filing the value of their properties. 150 Each appraisal—either the voluntary filing made by the property owner or the ex officio appraisal managed by the municipality—is valid for five years, except for cases automatically triggered by, among others, the sale, mortgage, merger, or subdivision of the property, new construction or filing by the taxpayer (if higher than the existing value). Appraisals may also be modified to reflect road construction or other public works that boost the property's value, or actions beyond the taxpayer's control that lower it. In addition, municipalities may adjust appraisals each quarter to consider inflation. 151 Article 88: To conduct any profit-making activity, the interested parties must hold the respective municipal license, obtainable by paying a tax. Said tax shall be paid during the entire time the profit-making activity has been exercised or for the time the license has been held, though the business was not carried out. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 110 However, the tax rate is low and the tax does not is penalized with a fine of CRC 100 (US$0.16 by generate significant revenue. The law also estab- August 2021 exchange rate) per square meter. The lishes that municipalities are responsible for urban law provides for yearly penalty increases based on planning and authorizes them to impose a long list minimum wage changes. of licenses and related fees. These include fees for segregating property (for sale purposes) and for The Municipal Code gives municipalities the the construction itself. In addition, Law Nº 424 power to recover investment costs by charging authorizes municipalities to impose a tax on new the beneficiaries of the investments. Article 86 construction up to one percent of its value. of the Municipal Code on special contributions and Mixed Private-Public Ownership Companies D. Service charges and fees state that municipalities in Costa Rica are entitled to charge special contributions for the works Local governments are permitted to impose they undertake that benefit future neighbors. charges and fees for certain services that they This power is a type of capital gain recovery and provide. According to Article 81 of the Costa is contained in the Urban Planning Law and the Rican Municipal Code, the municipality can Municipal Code. Special contributions may arise charge fees and rates for its services calculated when works that are conducive to such purpose based on the actual service cost plus a 10 per- and that maintain an appropriate relationship cent surcharge to deploy said service.152 Services with the benefit yielded are carried out. These con- include (a) solid waste collection and disposal, (b) tributions would be at the expense of the owners sidewalk construction and maintenance, (c) pub- or possessors of the benefited property and would lic street lighting, (d) street clean-up, and (e) park be fixed under the constitutional principles ruling maintenance. The law states that municipalities the subject matter. These contributions represent may impose charges for any other urban or rural a possibility available to the municipalities as a municipal service provided by law or internal reg- result of their autonomy; however, to collect these ulations, as long as they are effectively rendered. contributions, a regulation must be drafted which, If a service does not exist or cannot be provided, by constitutional mandate, first has to be passed the municipality may coordinate with regional or by the Legislative Assembly. national agencies under the central government to allow them to participate cooperatively in meeting the needs of the canton. FIGURE 5. Fiscal trend in Alajuelita To charge solid waste collection and sidewalk 10% construction fees, the Municipal Code enables 0% municipalities to set fees based on the original construction cost or service rendered (the actual -10% cost invested) plus a 10 percent profit.153 The result- superavit/revenues ing fees will be imposed on the residents of each -20% municipality according to the value of their prop- -30% erty, with a 50 percent discount for buildings that are fully owned by the taxpayer and have a value -40% below 45 minimum wages.154 -50% The Municipal Code also establishes the obliga- -60% tions of property owners to reduce municipal -70% institutions' costs in rendering these services.155 2016 2017 2018 2019 2020 These include regulations requiring households to sort solid waste for recycling purposes and Source: Sistema de Información sobre Planes y Presupuestos (SIPP) Note: The reader is reminded that these trends do not necessarily reflect actual changes in the developers to construct sidewalks in the case of municipality's financial position during this period, given the combination of revenues and balances new buildings. Failure to comply with the former carried forward between years. 152 Article 83, Law Nº 7794. 153 Article 83. 154 In the case of real estate that is the sole property of the taxpayers (individuals) and has a maximum value equivalent to 45 base salaries as provided for in Article 2 of Law 7337 of May 5, 1993, 50 percent of this rate shall be charged. 155 Article 85. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 111 The three local governments in the South Although in 2020 municipalities were able to Corridor are the poorest municipalities in the meet their financial obligations, financial per- GAM in terms of per capita revenues. Based formance can vary considerably from year to on the 2020 Information System on Plans and year. Figure 5 illustrates the trends in Alajuelita's Budgets (SIPP), total revenues per capita in Aserrí financial performance over the past four years. As and Desamparados were US$78 while Alajuelita shown, the municipality of Alajuelita had a deficit reported US$55. Most of this revenue was allo- equal to 60 percent of revenue in 2016. Deficits cated to current expenditures (see Figure 8), while followed in consecutive years, before shrinking to capital investment amounted to only US$6.50 7 percent of revenue in 2019 and moving to a 6 per capita in Alajuelita and Desamparados, and percent surplus in 2020. US$14 per capita in Aserrí. For example, the accounts in Aserrí suggest that municipalities rely Reviewing revenue and expenditure trends for on balances brought forward from previous peri- South Corridor municipalities, high volatility ods to bridge deficits during tough years, and on is seen.156 Figure 6 illustrates the trends across the cash reserves to repay them in surplus years. major revenue and expenditure components for FIGURE 6. a. Trends in municipal revenues 2016–2020 Alajuelita Aserri Desamparados 1500 1500 7000 6000 1000 5000 1000 CRC mns CRC mns 4000 CRC mns 3000 500 500 2000 1000 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Good and Service sales Good and Service sales Good and Service sales Tax revenues Tax revenues Tax revenues Other current revenues Other current revenues Other current revenues Capital revenue Capital revenue Capital revenue b. Trends in municipal expenditures 2016–2020 Alajuelita Aserri Desamparados 1600 7000 2000 1400 6000 1200 1500 5000 1000 CRC mns CRC mns CRC mns 4000 800 1000 3000 600 400 2000 500 200 1000 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Salaries Services Salaries Services Materials Interest Materials Interest Salaries Services Capital goods Current transfers Capital goods Materials Interest Amortization Capital goods Current transfers Current transfers Amortization Amortization Source: SIPP. Archive: revenues by account. 156 This analysis employed only data available in SIPP rather than debt settlements. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 112 the three municipalities. Substantial volatility can On the expenditure side, there is also volatility. be observed in all major revenue categories: taxes In Alajuelita, capital work expenditures soared (tax revenues), charges for services (sale of goods), by 60 percent between 2017 and 2018 and then other recurring revenues, and capital grants. decreased. This can be explained, as previously stated, by the volatility in transfers from the cen- While the overall downward trend in most tral government (for cantonal road works expen- categories between 2019 and 2020 reflects the diture and those allocated by specific appropria- impact of COVID-19, the volatility in earlier tions). In Aserrí, spending on goods and services years is harder to explain. As shown in Figure tripled between 2017 and 2018 and then dropped 6a, municipal tax revenues dropped sharply in drastically. Only Desamparados shows relative sta- Alajeuelita and Desamparados in 2018. This pre- bility in these expenditure categories over the last sumably reflects a fall in revenues from those five years (see Figure 3. b). municipalities’ principal tax, the patente. The patente is imposed on an ad valorem basis and Payroll expenditure, on the other hand, has would be expected to vary with economic con- grown at an accelerated pace between 2016 and ditions. But the Costa Rican economy was still 2020 in all three municipalities. In Alajuelita, growing in 2018, falling sharply only in 2020.157 the payroll soared by 45 percent (38 percent in real terms) during the five years, with little Property tax revenue would be expected to be annual fluctuation. In Aserrí, the payroll grew 35 less volatile, as (a) property values do not neces- percent; in Desamparados, it grew 30 percent; sarily change in parallel with changes in short- with little year-on-year fluctuation. As mentioned term economic conditions and (b) properties earlier in this chapter, the three municipalities in are not necessarily reappraised for tax purposes the South Corridor had poor scores in the 2018 each year. In contrast, changes in service revenues Municipal Management Index because adminis- may follow changes in gross domestic product trative expenses were higher than expected. (GDP) as they are fixed at the discretion of each local government. During good economic times, E. Local revenue collection is weak a local government might be inclined to increase the rates of such charges. Likewise, revenues from Revenue in the South Corridor municipalities the central government’s capital grants would also comes mainly from locally collected revenues, expected to be volatile, presumably due to the fluc- making their adequate collection and manage- tuations in fuel tax revenues on which cantonal ment more relevant. As shown in Figure 7, the road network transfers are based and fluctua- revenue structure in the three municipalities is tions in the amounts that the central government very diverse. In general, property taxes account chooses to allocate to specific appropriations. for 15 to 20 percent of the total; business licenses FIGURE 7. Municipal revenue sources, 2020 Alajuelita Aserri Desamparados Borrowing Borrowing Borrowing 0% 0% Other current Capital 0% Other Capital 3% grants current grants Property tax Property tax Fines, Property tax 1% 17% 17% Construction penalities 9% Fines, Construction Other 15% tax 1% 4% 19% Construction penalities tax current 28% tax 1% 5% 7% 10% 1% Other 14% Licenses Other user user 11% charges charges 13% Fines, Licenses Other taxes 26% 30% 25% penalities Licenses 3% 18% 18% 2% Other taxes SWM SWM charges 1% Other user SWM charges SWM Other taxes charges 2% 25% Source: SIPP. Archive. Revenues by account : https://cgrweb.cgr.go.cr/apex/f?p=150210:15:10215661579216::NO::: 157 Costa Rica's economy grew 7 percent between 2016 and 5 and 4 percent in the following two years, respectively. That rate shrunk by 4 percent between 2019 and 2020. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 113 TABLE 7. 2020 Tax Revenue Collection, Municipality of Aserrí A. Pending E. Total tax collection B. Tax billed C. Tax to be D. Actual delinquency as Revenue brought forward in 2020 collected in 2020 collected in 2020 at 31/12/2020 F= D/C Property tax 208,073,464 480,697,735 688,771,199 506,620,473 182,150,725 74% Municipal patente 242,337,798 466,608,695 708,946,493 407,243,029 301,703,464 57% Solid waste collection 337,285,585 597,158,328 934,443,914 561,341,642 373,102,272 60% service Street and public place 10,551,247 52,097,921 62,649,168 44,773,359 17,875,810 71% clean-up Source: Information System on Public Budgets, CGR. (operating permits) make up 15 to 30 percent; TABLE 8. Solid Waste Management Fees in Aserrí solid waste collection service fees account for 20 (existing and proposed) to 25 percent, and other user fees account for 10 to 20 percent.158 Capital grants from the central Current Proposed government account for 10 to 30 percent.159 quarterly rate quarterly rate Increase Service users (CRC) (CRC) (CRC) Collecting business license tax (operating per- Residential 9,102.92 12,160.00 3,057.08 mits) revenues in the South Corridor munici- Commercial 1 18,208.85 24,320.00 6,111.15 palities poses various challenges. First, tax rates Commercial 2 27,308.77 36,470.00 9,161.23 imposed in these municipalities are very low. Commercial 3 31,860.23 42,550.00 10,689.77 As noted earlier the tax is levied ad valorem on the business's gross income and/or earnings. Events 63,720.46 85,100.00 21,379.54 In Alajuelita, the tax rate is 0.1 percent of the Industrial A 54,617.54 72,940.00 18,322.46 value of sales, plus two percent of profits.160 In Industrial B 63,720.46 85,100.00 21,379.54 Desamparados, it is 0.35 percent of sales; in Aserrí, 0.4 percent. Source: Provided by the Municipality. The second challenge is tax evasion, either by The solid waste collection fee is not signifi- businesses that do not formally register or by cant in Aserrí and negligible in Alajuelita. In underreporting of revenue/income. In Costa Aserrí, the service charge is imposed at a flat rate, Rica, businesses must be registered with municipal with different rates for residential, business, and authorities to obtain an annual business license. industrial customers (see Table 8). The existing However, in Alajuelita and Desamparados, small residential tariff is equivalent to US$58 per year. ‘informal’ businesses often fail to do so. In addi- In Alajuelita, the tariff is charged as a percentage tion, both informal and formal businesses tend of the appraised value of each property. However, to underreport their taxable income. On the one the rate is extremely low: 0.0025 percent of the hand, informal companies fail to keep accurate appraised value. In addition, residents in infor- accounting records. On the other hand, the larger, mal settlements do not pay the fee. Given that ‘formal’ companies either claim to be non-profit Alajuelita is the fourth canton nationwide with organizations or state that most of their earnings the highest number of informal dwellings (see originate in other cantons and are therefore tax- Chapter 2), this condition is particularly note- exempt. While all three municipalities rely on worthy. Despite this, both jurisdictions report that central government income tax records to deter- solid waste management revenues are sufficient mine taxable income in their jurisdictions, they to cover the service costs (see Spotlight: Circular still have a collection issue (Table 7 in the case of Economy and Solid Waste Management in Costa Aserrí). Rica for more details on these two municipalities, 158 The unusually large contribution of ‘other user fees’ in Aserrí stems from the municipality's water utility revenues. The other target municipalities do not own water utility companies. 159 The SIPP archives do not provide details on capital subsidies. A special Aserrí archive suggests that most of the capital grants are earmarked for communal roads under Law Nº8114. 160 In the event that taxpayers do not earn net taxable income, regardless of whether they are income tax filers, or when they cannot estimate such income because they are non-filers, the factor corresponding to gross sales or gross income will be applied. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 114 and Desamparados). As seen in Figure 7, solid One of the biggest challenges to proper municipal waste management fees accounted for approxi- financial management is the need to carry forward mately a quarter of total revenues in Alajuelita resources/debt from one year to the next, report- and Desamparados and 18 percent in Aserrí in ing the balances from previous years as revenues 2020.161 in the liquidation reports (surpluses/deficits). In these liquidation reports, amounts that should Finally, property tax revenue collection is inad- have been settled, but were not paid in 2019 (for equate in the South Corridor municipalities. example), are entered as revenue in 2020. These As seen in Table 7, 2020 property tax revenue in represent cash balances accrued in 2019 but ear- Aserrí amounted to CRC 688.8 million (column marked to pay the 2019 unliquidated obligations C). Of this total, 70 percent corresponds to pay- in 2020. The 2020 outlay figures include payment ments due for the current fiscal period (column of prior year obligations plus new outlay obliga- B) and the remainder was unpaid tax assessments tions incurred in 2020. See the sample liquidation brought forward from previous periods (column report for Aserrí in Box 2. A). While 2020 property tax revenues totaling CRC 506 million (column D) are higher than tax payments receivable for 2020 (column B), actual BOX 2. collected revenue accounts for only 74 percent of Costa Rica's social housing program total tax billed. If this performance is typical of previous years, it suggests that most property tax As seen in the table, revenues amount to approximately CRC 4,157 million. But bills are eventually paid, albeit late. However, if it this figure includes balances brought forward from 2019, consisting of (a) CRC is atypical, it suggests that Aserrí has a delinquent 216 million deficit in unrestricted balances (free revenues) and (b) a CRC 1,147 taxpayer problem. In Desamparados, the collec- million surplus in allocated balances. As a result, Aserrí's real revenues in 2020 tion rate (revenue as a share of billing) is similarly totaled only CRC 3,227 million. reported at 75 percent. Alajuelita municipality's collection performance is slightly lower. Based on Similarly, outlays are CRC 3,528 million. But this figure includes payments for the CGR's Information System on Public Budgets obligations incurred in 2019 and excludes CRC 532 million in unpaid obliga- data, Alajuelita's property162 tax turnover amount- tions incurred in 2020. If those payments are excluded, it would appear that the ed to CRC 1,470 million in 2020. Of this, CRC total outlay in 2020 would be much closer to revenues; that is, CRC 3,227 mil- 802 million pertained to tax payments due for the lion. However, accurate figures are not available. Thus, it is not known whether current period and the remainder accounted for those obligations were paid or not. unpaid tax billing brought forward from previous periods. Revenues amounted to CRC 798 million, The Liquidation Report includes a final balance, referred to as the free surplus. just 54 percent of total tax billing. This is calculated as the difference between (a) total revenues (including brought forward balances) and (b) total expenditure (including payments on F. Delayed disbursement of specific obligations incurred in prior years, settlements on obligations incurred in the budget appropriations poses current year, and new unpaid obligations incurred in the current year. In 2020, further challenges to municipal Aserrí's free surplus was CRC 97.6 million. This was equivalent to 3.8 percent of financial management revenues (excluding brought forward balances) and is the best overall indicator available of the municipality's fiscal status. An additional challenge encountered by all municipalities in Costa Rica is that the central TABLE 9. Aserrí's 2020 Liquidation Report government generally fails to disburse the appro- priations for specific budget lines until the end Residential 9,102.92 of the budget year. As a result, municipalities are REVENUE 4,157,783,860 denied the time to procure and implement the MINUS: OUTLAY 3,528,333,176 works before the end of the budget year. For this =SURPLUS/DEFICIT 629,450,684 reason, municipalities tend to pay their outstand- ing obligations up to six months after the end of Minus: Earmarked balances* 531,819,917 the budget year. As a result, February reports may FREE SURPLUS/DEFICIT 97,630,767 be incomplete. Full figures are reported in a sepa- rate report, called ‘liquidation’. Note: *The breakdown of the Aserrí 2020 spending by program, shown earlier in the chapter, excludes these obligations. 161 In Aserrí, revenues from the municipal aqueduct service (water utility) accounted for most of the ‘other revenues’. 162 Source: SIPP 2020 electronic model annex2- delinquency. INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 115 Recommendations Local governments need stronger, more dura- At the local level, it is important that munici- ble institutions and governance. South Corridor palities work to update or develop regulatory municipalities must consolidate an internal work- land-use plans. Preparing a regulatory land-use ing strategy, supported by the central government, plan enables the municipality to consolidate to (a) update land-use regulations, in particular capacities and resources, and is the basis for an regulatory land-use plans and cadasters; (b) invest effective territorial management of the South in technical and professional resources to improve Corridor. Technical studies such as those prepared land-use control and management (that is, infor- for the GAM Plan could be used as inputs for the mation systems, inspections, and overall process- municipalities planning process. The experience ing); (c) identify and strengthen strategic part- of Desamparados might set an example for the nerships with central government agencies, the rest of the GAM municipalities. In the absence of private sector, and other municipalities to develop a regulatory land-use plan, national-level frame- infrastructure projects and urban services; and works such as regulations issued by the INVU, (d) improve the financing of local services and which provide general criteria and controls for investment. building construction, zoning, and development should be applied. Furthermore, urban planning Strengthening local planning controls such as building permits, licensing pro- capacities cedures, and penalty collection, among others, are key to manage urban growth and need to be The national regulatory framework concern- strengthened and updated at the municipal level. ing land-use planning and urban management It is also critical that local governments integrate needs to be updated. It is crucial to adjust the and prioritize the approval of hazard and vulner- regulatory framework that governs the powers ability identification and mitigation plans. The and resources available to local governments, espe- preparation of regulatory land-use plans must be cially those related to urban management and based on updated risk and vulnerability maps. In planning. The urban planning law is over 60 years the absence of local technical and financial capaci- old. Although adjustments have been made, it ties, the support of central government agencies in is imperative to define with greater clarity the this regard is crucial. In addition, an effective tax relationship between national, regional, and local administration by local governments also calls for planning. In the case of the South Corridor, the updating the taxpayer registry and the municipal alignment of the 2013–2030 GAM Plan and cadaster. municipal planning and investments has been inadequate. Despite the robust technical stud- Given their limited resources and institutional ies and high-quality information available in the capacities, the municipalities of Alajuelita and GAM Plan, the implementation arrangements to Aserrí require greater support from central steer the development of densely populated areas government agencies and regional coopera- such as Desamparados or multi-risk cantons such tion bodies. Strengthening of cooperation agree- as Alajuelita are not in place. ments, the Municipal Federation, or the Regional INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 116 Inter-Institutional Coordination Councils could the property being serviced. Shifting to the latter be a first step to provide needed capacities to approach, as is done in Alajuelita, would lessen these municipalities. The CCCI in particular the impact of any solid waste management fee could be an effective forum for information increase on lower-income ratepayers. exchange, coordination, and management of com- mon projects that affect inter-cantonal develop- A second measure would consist of optimiz- ment. The creation of regional technical offices ing the collection and management of local funded by the municipal federations could sup- taxes and tariffs. In the case of property tax, the port the preparation of regulatory land-use plans problem does not lie in the property appraisal in under-resourced, institutionally weak cantons. phase. The property valuation methodology for The municipal federation could play a greater tax purposes seems to be sound (considering role in regional land-use planning by adopting the example of Aserrí). Similarly, when assessing an integrated regional development vision, and operating permits, municipalities have embraced generating studies and regional information that cross-referencing opportunities; that is, using cen- can inform urban development planning at the tral government income tax records to calculate municipal level. the taxation of local businesses. But there may be room to improve tax collection rates, bridging Improving local financing is key to the gap between tax billing and collections, and providing high-quality municipal figuring out more effective tax collection processes services for all taxpayers, including the enforcement of penalties. Four measures are suggested to improve munic- ipal finances and thus provide better services to The third measure would be the introduc- the South Corridor cantons. tion of an effective revenue-sharing arrange- ment, apportioning part of the central govern- First, local revenues have to rise. To increase ment's tax income to local governments using local tax and fee revenues, municipal governments a straightforward formula. Costa Rica remains might increase the rate of the patente, as well as an outlier in not having such a system. As noted the rates of their various services, including solid earlier, it has taken some steps in this direction. waste management fees. All of these measures fall The existing law on decentralization of functions within the legal authority of local governments. requires revenue sharing, although this is contin- The central government, on the other hand, might gent on the decentralization of central functions, increase the property tax rate. As noted above, and has not been implemented yet. Similarly, the current property tax is a modest 0.25 per- appropriations for specific budget lines come cent of the appraised value, subject to numerous from the central government and are allocated to exemptions. For example, a residential property municipalities based on a formula; however, the appraised at less than 45 minimum wages is amounts are small, vary from one year to the next, entirely tax exempt, provided it is the home of and depend on congressional decisions. Cantonal the taxpayer and he/she files the relevant applica- road transfers, on the other hand, are financed by a tion with the municipal tax administration. This relatively minor tax whose revenue also fluctuates particularly affects South Corridor municipalities from year to year. because of the high proportion of social housing in these cantons. Costa Rica could complement or replace these existing transfers with a general revenue shar- These measures could, of course, increase the ing system, that is (a) not dependent on further burden on taxpayers, some of whom are already decentralization of functions; (b) based on a fixed among the poorest in the metropolitan region. share of central government's tax revenues; and (c) This would be particularly true for those taxes and unconditional, that is, not earmarked for any spe- fees that do not capture individual household’s cific function or economic category of expendi- ability to pay. However, the impact resulting from ture. Such an arrangement would provide a source a property tax rate rise is mitigated by existing tax of funding that is not contingent on congressional exemption policies, for example, regarding social decisions or the revenue of a particular tax. In housing. In Aserrí, the solid waste management addition, it would give local governments predict- charge is levied as a per-customer flat fee, rather able income streams and allow them to ramp up than as a percentage of the appraised value of spending on local priorities. Such funds would INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 117 be distributed using a baseline formula, which, in total revenues. While the level of capital grants turn, is based on easily verifiable needs assessment per capita allocated to each municipality is nega- indicators, such as population or poverty levels. In tively correlated with its own-source revenue per that sense, Costa Rica can draw on the examples capita (r = −0.034, excluding the two outliers), of its existing transfer formulas (described above) the relationship is weak. Alajuelita, Aserrí, and and avoid the complex, arbitrary, and internally Desamparados, along with San José, are among conflicting formulas often used elsewhere around the poorest jurisdictions (in terms of revenues) in the world. the GAM. Such a transfer would enable municipalities A fourth additional source of funding could with weak tax bases to share in the revenues of come from freeing up resources by improving richer ones within the GAM and in Costa Rica public expenditure efficiency. This report did as a whole. Based on SIPP data, variations in per not assess the expenditure efficiency in South capita revenue among municipalities are signifi- Corridor municipalities, and this recommenda- cant. Figure 8 shows the per capita revenue in the tion does not imply the existence of those issues. 31 municipalities comprising the GAM. Per capita However, the experience in other countries sug- revenue ranged from US$55 to US$325 in 2020, gests that municipalities are often vulnerable to even after excluding the top two outliers (Escazú overstaffing and inefficient or ineffective con- and Belén). This range of variation is not surpris- tracting and procurement practices. Additional ing. In the absence of any equalization transfer, research may uncover opportunities to raise addi- each municipality depends on its revenue base: tional revenue by addressing problems in these the value of properties and the scale of commercial areas. For example, improvements in the urban activity in its jurisdiction, and the residents' will- landscape (public infrastructure), accessibility, ingness and ability to pay for services. The transfer provision of services and improvement of existing sharing formulas would expectedly offset these ones, as well as the strengthening of socio-cultural disparities, particularly when taking into account programs that promote participation and social poverty variables. But the overall level of transfers cohesion, educational programs and/or citizen is too small to make any impact on variations in security within the canton. FIGURE 8. Variations in GAM Per Capita Revenue, 2020 (SIPP) 600 400 US$ 200 0 Alajuelita Aserrí Vásquez de Coronado Poás Goicoechea Tibás Oreamuno San Rafael La Unión Alajuela Alvarado Santo Domingo Heredia Cartago Santa Ana Belén Capital Current Sistema de Información sobre Planes y Presupuestos (SIPP) INSTITUTIONS, CAPACITIES, AND FINANCING IN THE SOUTH CORRIDOR | CHAPTER 4 118 References CFIA. 2021. “Ranking de Efectividad Municipalidad Digital, tramite digital de permisos de construcción, diciembre 2020.” CFIA. 2020. “Ranking de Efectividad Municipal Digital 2019.” Colegio Federado de Ingenieros y Arquitectos. 2021. “Inspecciones del Segundo Semestre del 2020.” Ley De Planificación Urbana. http://www.dgsc.go.cr/documentos/desarrollo/RECTORIA_POLITICA_EMPLEO_ PUBLICO.pdf Índice de Capacidad de Gestión, Municipalidad de Aserrí, 2021 Índice de Capacidad de Gestión, Municipalidad de Alajuelita 2021 Índice de Capacidad de Gestión, Municipalidad de Desamparados, 2021 Sistema Información Integrada Municipal, Aserrí, 2019 – 2018/ Alajuelita 2018/ Desamparados 2018-2019-2020 CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 119 SPOTLIGHT Circular Economy and Solid Waste Management in Costa Rica Author Carolina Rodríguez A. Context Costa Rica is recognized internationally as In 2018, the monetary contribution of a leader for its strong agenda on biodiversi- national parks and biological reserves to the ty protection and management.163 This has economy was US$1.9 billion. The activities been possible owing to the design of innovative that benefit most from protected wilderness financial mechanisms that contributed to the areas are tourism and hydropower generation; recovery and sustainability of the current forest these protected areas also contribute signi- cover, which accounts for 59 percent of its ficantly to scientific research, environmental territory, as well as to the vision of positioning education, and local development through the natural wealth as one of Costa Rica’s main tou- generation of direct jobs. This economic contri- rism products. Despite a relatively small land bution increased by 8.58 percent between 2016 area of 51,180 km2 164, Costa Rica is home to 6 and 2018.166 percent of the planet’s biodiversity, and appro- ximately 25.5 percent of that land area and 2.5 However, national conservation gains have percent of territorial sea are in some category not yet been conveyed to the Integrated of protected area.165 For more information on Solid Waste Management (ISWM) sector. Costa Rica’s approach to address climate chan- The 2015 Greenhouse Gas (GHG) Inventory ge see Annex 1. identifies the waste sector as the second-largest 163 Payment for environmental services program (PSA) is a financial mechanism where landowners of forest plantations, agroforestry systems, natural regeneration, or forest protection projects receive direct payments from the government for the environmental services that their land generates. For further information, see https://www.fonafifo.go.cr/es/servicios/pago-de-servicios-ambientales/ 164 Costa Rica National Register. 2021. “Update on the Calculation of the Continental and Insular Areas of Costa Rica. Retrieved from http://files.snitcr.go.cr/boletines/ACTUALIZACION_DE_LAS_AREAS_CONTINENTAL_E_INSULAR_DE_COSTA_RICA_02_07_2021.pdf 165 This data were reported in the Annual Statistical Report of the National System of Conservation Areas (2019–2020). It is important to clarify that these percentages have increased due to the expansion and creation of new protected wildlife areas. For further information: https://www.presidencia.go.cr/comunicados/2022/04/costa-rica-aumento-la-proteccion-de-sus-ecosistemas-en- mas-de-16-millones-de-hectareas/ 166 Soto, Michelle. 2020. “National Parks and Biological Reserves yield benefits of $1.9 billion. Ojo al Clima” November 11. Retrieved from https://ojoalclima.com/parques-nacionales-y-reservas-biologicas-brindan-beneficios-calculados-en-1-900-millones/ CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 120 source of emissions in the country. These emis- B. The ISWM regulatory and public sions have grown by 58 percent since 2005 and policy framework in Costa Rica are largely caused by the organic material sent to made progress in the past 50 years landfills, which under anoxic conditions produces methane, with potent GHG effects.167 Since the 1970s, domestic solid waste mana- gement-related regulations, focused on the The country is on the verge of a solid waste collection and disposal of waste, emerged. For disposal crisis, as six of the seven landfills the first time, the General Health Law (1973) where 91 percent of Costa Rica’s waste is depo- required local governments to collect, transport, sited are in the process of closing down.168 In and properly dispose solid waste and prevent or 2019, Costa Rica had seven active landfills, inclu- reduce pollution. Waste management focused ding six under technical closure since 2016 (Soto on the collection and final disposal of waste, as 2019). In 2021, the Ministry of Health extended well as on the creation of dumping grounds and for the second time the capacity limit of the landfills to meet the growing demand for waste Uruca Landfill, which is responsible for the waste disposal. (Figure 1 shows the evolution of the legal of approximately 610,000 inhabitants. There are framework and current public waste management also 16 semi-controlled landfills, of which 10 have policies.) already started their closing process. This is par- ticularly critical as it is estimated that by 2050,170 In 1995, with the promulgation of the Organic the waste generation of the municipalities in Environmental Law, environmental considera- Costa Rica will increase by 62 percent when com- tions were introduced in the sector. This law set pared with the waste tonnage in 2020. forth environmental protection and improvement criteria, and required the central government, The absence of a system to collect and manage municipalities, and public institutions to prio- detailed waste management information hin- ritize the establishment of waste collection and ders decision-making and timely response to management services as an activity to control and the situation. The National Information System prevent environmental pollution. The purpose of for Integrated Management of Wastes (SINIGIR) this new vision was to advocate for adequate waste was established by law over a decade ago to collect recovery and treatment to obtain other products statistical information on the national waste sta- or by-products. tus. The system is not operational yet, and the scarce information generated is scattered across The Integrated Solid Waste Management Law different institutions, which impedes monitoring (ISWM Law, 2010) assigns stewardship of and planning, as well as the establishment of goals waste to the Ministry of Health while impo- and objectives for waste recovery and valuation. sing obligations on both municipalities and waste generators. This law for the first time arti- Improving access to information is crucial for culates a classification system for waste and seeks the effective participation and involvement to encourage cultural changes through citizen of stakeholders. Access to consolidated infor- participation, education, and awareness on topics mation on the amount of waste generated coun- related to cleaner production and sustainable trywide, its composition, and waste valorization consumption. It also promotes (a) the search for possibilities is essential to implementing educa- regional waste management solutions, (b) the tion and awareness campaigns to change existing need to create and improve public and private consumption and production patterns, as well as related infrastructure, and (c) the development creating new waste management business models. of a market for recoverable materials. The law 167 Ministry of Environment and Energy, National Meteorological Institute. 2019. “National Greenhouse Gas Inventory and Carbon Sequestration 2015.” Retrieved from: http://cglobal.imn.ac.cr/documentos/publicaciones/InventariosGEI/InventarioGEI-2015/offline/NIR- 2015-InventarioGEI.pdf. 168 Based on What a Waste 2.0, World Bank, 2018. 169 Soto 2019. 170 Based on What a Waste 2.0, World Bank, 2018. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 121 also streamlines the regulatory process on specific In recent years, three public policies have chan- issues such as Extended Producer Responsibility ged the way solid waste management is unders- (EPR), the operation of recycling facilities for tood, focusing on revaluation and circular recoverable materials, and special management economy. The National Decarbonization Plan waste, among others. (2018–2050),171 the Action Plan for Integrated Solid Waste Management (PAGIR, by its ini- The incorporation of Costa Rica into the tials in Spanish) (2019–2025)172 and the National Organisation for Economic Co-operation and Composting Plan (2020–2050)173 propose waste Development (OECD) (2015–2021) propelled classification targets aiming at the implementa- a review and update of ISWM legislation and tion of a system based on valorization and efficient policy. Some of the recommendations given by final disposal and low emissions, all under a circu- the OECD Council to member countries include lar economy model. These proposals represent a the creation of policies for (a) source reduction, roadmap that can make it easier for the country (b) promoting recycling and waste recovery, (c) to successfully achieve waste management and using economic instruments to improve waste economic transformation. management, and (d) ensuring waste data collec- tion and access to information. FIGURE 1. Timeline of National Solid Waste Management Regulatory and Planning Instruments 1973. General Health Law 2016. National Waste Separation and 2019. National Composting Plan Defines residues as waste, while management Recovery Strategy (ENSVR) (2020-2030) focuses on collection and disposal in dumps or Fosters the development of Municipal ISWM By 2030, Costa Rica is not going to send landfills. Plans and standardization of waste separation organic material to landfills. This vision dominates for the next 20 years. and collection systems nationwide. 2010. Integrated Solid Waste Management Law. National Strategy on replacement of Defines waste as recoverable material. single-use plastics with renewable and ISWM Stewardship entrusted to MoH and compostable alternatives 2017-2021 responsibilities assigned to Municipalities and generators. Waste hierarchy introduced. 1973 1995 1995. Organic Environment Law 2007. Solid Waste Management Plan of 2019. ISWM Action Plan (2019-2025) Raises the importance of pollution control Costa Rica (PRESOL). Proposes regional projects, technological and source prevention. Fosters waste recovery Defines waste as recoverable material. It transformation and EPR regulations. and treatment to obtain other products or proposes a cultural change, the first step toward 2019. Plastic Pollution and environment by-products where feasible. an integrated waste management policy. protection Act 2018. National Decarbonization Plan (2018-2050) Development of an ISWM system based on high-efficient low-carbon separation, reuse, revaluation and final disposal. 2018. National Policy on Sustainable Consumption and Production Source: Developed by the author. 171 The National Decarbonization Plan (2018–2050) guides the process to establish the roadmap between the current targets and 2050, consistent with the achievement of 2030 Agenda and Paris Agreement goals. https://minae.go.cr/images/pdf/Plan-de- Descarbonizacion-1.pdf. 172 The Action Plan for Integrated Waste Management (2019–2025) promotes a local approach for integrated waste management, strengthening the articulation with local governments, responsible institutions, the private sector and the communities. https://www. ministeriodesalud.go.cr/index.php/biblioteca-de-archivos/sobre-el-ministerio/politcas-y-planes-en-salud/planes-en-salud/5076-plan-de- accion-para-la-gestion-integral-de-residuos-2019-2025/file 173 The National Composting Plan (2020–2050) contributes to the decarbonization of the country, involving society in the treatment of organic waste, diverting it from landfill. https://www.tec.ac.cr/documentos/plan-nacional-compostaje. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 122 C. Municipalities are pivotal for Local governments capacities affect the effi- integrated waste management ciency and quality of the service provided. In Costa Rica, those local governments with greater The ISWM Law (2010) establishes that muni- capacity do have an updated Municipal Integrated cipalities are responsible for the integrated Waste Management Plan, regulations, and fees. management of wastes generated in the canton They also provide ordinary and recoverable waste (see Figure 2). Thus, they are required to deve- collection services and coverage, use landfills, and lop a municipal integrated waste management conduct educational and public awareness cam- plan; issue regulations on waste classification, paigns to encourage best practices for waste segre- selection, collection, and final disposal; and fix gation and engage citizens in integrated waste garbage collection fees to provide all residents of management. the canton with selective, accessible, regular, and efficient garbage collection service. Additionally, The collection of ordinary garbage reaches 88 they must provide their territories with waste percent of Costa Rican territory, while collec- collection services and build waste recovery faci- tion of recoverable waste covers 58 percent of lities. To achieve this, the ISWM Law (2010) and the territory.175 Even though the national average Municipal Code (1998) empower municipalities of waste collection is above the percentage of to sign agreements with microenterprises, coo- garbage collection in upper-middle-income cou- peratives, organizations, and local businesses to ntries, significant challenges still prevail locally. participate in the ISWM and activities along with Commonly shared challenges refer to the design the recycling or composting value chains. of garbage collection routes and trucks which are either out of service or not suitable for segregated Municipalities enjoy autonomy to set their fees garbage collection. In addition, municipalities in to finance this service and ensure the ISWM rural areas or far from the Greater Metropolitan sustainability. To deliver and develop this servi- Area (GAM) have to deal with excessive costs ce, the Municipal Code stipulates that garbage fee associated with the transportation of waste for may cover the full cost of service plus 10 percent final disposal. In the canton of Osa, the waste is profit. These fees must be updated on an annual hauled over 260 km to be disposed of in the land- basis and may consist of differentiated amou- fill located in Aserrí. nts according to the type and amount of waste that is being generated. These garbage fees must D. Challenges in the South Corridor cover waste segregation, collection, transporta- tion, valorization, treatment, and final disposal, The three municipalities in the South Corridor taking into account the obligations derived from share common challenges that can be addressed the ISWM Law thereunder. through inter-cantonal efforts. The challenges shared by the three municipalities are explained Nonetheless, many municipalities lack the below in further detail, including various aspects technical and financial capacities to meet these relating to organic material diverted from land- obligations required by law. In 2020, 18 per- fills, increased volumes of recoverable waste collec- cent of the municipalities still did not have their ted, and incorporation of climate considerations Municipal Integrated Waste Management Plan, into waste management. and 28 percent had not regulated the service. This institutional lag is aggravated by a high rate of Waste generation and composition missing payments of the garbage collection and disposal service, which reaches 42 percent nation- One of the major challenges for local govern- wide. In addition, more than 70 percent of the ments is generating and systematizing tech- municipalities have outdated garbage fees and 25 nical information to inform the solid waste percent face deficits in garbage service delivery.174 management service and planning. In the South Corridor, only the canton of Desamparados 174 Office of the Comptroller General of the Republic of Costa Rica (2021) Municipal Service Management Index. Retrieved from: https://www.cgr.go.cr/03-documentos/publicaciones/indice-gestion-serv-mun.html 175 Office of the Comptroller General of the Republic of Costa Rica (2021) Municipal Service Management Index. Retrieved from: https://www.cgr.go.cr/03-documentos/publicaciones/indice-gestion-serv-mun.html CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 123 FIGURE 2. Institutional ISWM Responsibilities in Costa Rica Responsibilities of the Ministry of Health – Governing Body • Formulate and implement plans and public policies • Draft regulations and decrees • Verify legal framework compliance • Define ISWM compliance indicators • Promote inter-institutional coordination • Evaluate policies, plans, programs and Inter-institutional technical regulations Coordination • Promote technology and investments • Administrate ISWM fund MINAE- Ministry of Environment and Energy MAG- Ministry of Agriculture and Livestock • Establish the national waste management MEP- Ministry of Public Education information system CONESUP – Council of Higher Education INEC –National Institute of Statistics and Census Ministry of Health • Others… MSP - Ministry of Public Security OIJ - Judicial Investigation Entity NATIONAL LEVEL LOCAL LEVEL Ministry of Health • Perform health inspection. Issue health protection and environment orders Municipalities Ministry of Health + Municipalities • Verification, monitoring or compliance with ISWM regulations. They can request accompaniment from the Public Force. Municipalities – Responsible for implementing ISWM in their INSTITUTIONAL RESPONSIBILITIES territories ON INTEGRATED SOLID WASTE • Develop and implement Municipal ISWM Plans. MANAGEMENT IN COSTA RICA • Issue regulations for the classification, selective collection and final disposal of waste in the canton. • Provide in the territory: Selective, accessible, regular, and efficient garbage collection services, waste recovery facilities, clean-up of pipes, ditches, sewers, roads, public spaces and others. • Prevent and eliminate unauthorized dumps and waste collection facilities. • Promote alternative systems for selective collection of recoverable waste. • Establish garbage fees. • Verify compliance with the regulatory framework within the municipality • Conduct training and educational awareness campaigns for segregated waste collection, cleaning and ISWM. • Sign agreements with microenterprises, cooperatives, organizations, and/or local business to engage in ISWM. • Impose sanctions and penalties. • Others Source: Developed by the author. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 124 conducted a study on waste generation and com- The composition of waste in Desamparados position in 2011. This study provides information matches with national and global data repor- on the amount of waste generated in the territory, ted by upper-middle-income countries (see as well as the type and share of materials found. Figure 3). It should be noted that the waste Desamparados and Aserrí’s average waste composition data are directly affected by socioe- generation is below the national average; conomic conditions, clearly reflecting production while Alajuelita is above (see Table 1). The and consumption patterns. Globally, the higher GAM’s average waste generation is 0.77 kg/per- the income, the lower the amount of organic son/day,176 while the national average is 0.86 kg/ waste. Therefore, low-income countries generate person/day177. South Corridor cantons, including 56 percent of organic waste, while in high-income Desamparados and Aserrí, generate less waste countries this share shrinks to 32 percent, and than the average registered by GAM cantons, and the production of dry waste increases. Another they fall within the waste generation standard for economic fact affecting the data is the capaci- upper-middle-income countries worldwide. In ties of high-income countries to generate detai- Alajuelita, the waste generation index is noticea- led information on the waste they generate and bly higher than those reported nationwide, but it its composition, managing to analyze a larger is within the waste generation average expected number of materials.178 for Latin American countries. TABLE 1 Waste generation kg/person/day in cantons in the South Corridor, national, regional, and worldwide data Desamparados Aserrí Alajuelita GAM Costa Rica Latin America Worldwide Upper-middle income 0.67 0,65 0.98 0.77 0.86 0.99 0.74 0.69 Source: Waste generation indices taken from Rudin, Soto, and Linnenberg (2019). FIGURE 3 Comparison of waste composition in Desamparados vs nationwide, regionally, and worldwide 70 60 50 40 30 20 10 00 Organic Glass Metal Others Paper/cardboard Plastic Rubber/Leathe Wood Fabric Polylaminated Hazardous Electronics Globally Upper middle income country Latin America Costa Rica Desamparados Source: Developed by the author.179 176 Waste generation indices taken from Rudin, Soto, and Linnenberg 2019. 177 Data from What a Waste Report 2.0. 178 Data from What a Waste Report 2.0. 179 Sources included the Ordinary Waste Generation and Composition Study for the Canton of Desamparados (2011) and What a Waste Report 2.0. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 125 Desamparados’ upper-income strata report a While there are a lot of opportunities for rise in their organic waste generation, which improvement, waste management is a prio- would contradict global trends. Based on study rity issue that has only just begun to receive results (CEGESTI 2011), there is a lower percen- special commitment from local governments. tage of organic waste in the lower-income strata, The 31 municipalities under the GAM have an where there is greater awareness about saving Environmental Management Unit, and conduct food. In the same way, in rural areas of the canton educational and public awareness campaigns to organic waste is used to feed pets and farm ani- encourage waste segregation practices of recove- mals or as garden fertilizer. On the other hand, rable waste. As of 2022, 64 percent of the cantons upper-income strata are less aware of food waste, have both a Municipal Integrated Solid Waste and pets are fed with dry food instead of kitchen Management Plan and municipal regulations on waste.180 integrated solid waste management. Garbage collection service and waste It is worth noting that the Municipality of treatment Desamparados has adopted key steps toward waste management. The municipality has in Regarding the waste collection service, all three place regulations and a Municipal Integrated municipalities in the South Corridor show Solid Waste Management Plan, as well as an an intermediate level of maturity,181 on par updated fee structure for waste collection. Despite with the national average and comparable with reporting a 44.27 percent delinquency rate in upper-middle- and high-income countries.182 garbage fees, the collection of ordinary and reco- The share of garbage collection in upper-middle- verable waste reaches 100 percent of the territory. income countries is 82 percent; it is 96 percent in This is possible as the municipality is the direct high-income countries. This means that Alajuelita service provider in 70 percent of the territory, and Desamparados are above the average for high- while the remaining 30 percent, that is, remote income countries, and all three municipalities are areas, are served by another provider at a lower above the average for upper-middle-income coun- cost. In addition, the municipality has in place tries (see Table 2). environmental education programs (see Box 1). All cantons of the GAM dispose of their waste In 2018, the Municipality of Desamparados in landfills. Regarding the waste collection and signed the Global Covenant of Mayors for treatment service, Desamparados has reached the Climate and Energy, pledging to implement same maturity level as the national average (inter- policies and measures to reduce or curtail mediate), while Alajuelita and Aserrí are at the GHG emissions, and a year later it became part lower level.183 of the Carbon Neutral Country Programme 2.0 TABLE 2 The South Corridor municipalities have opportunities to continue progressing on waste collection Residue With With Environmental Waste is recolection Service regulatory Municipal Management Educational Ordinary Recoverable dumped service provided framework Plan Unit Campaigns Coverage Coverage in: Alajuelita Yes Yes Yes Yes Yes 100% 2.25% Aserrí Yes Yes Yes Yes Yes 94% 94% Landfills Desamparados Yes Yes Yes Yes Yes 100% 100% GAM Average Yes 72% 84% 100% 100% 96% 74% 100% 180 CEGESTI (November 2011). Final Report. Ordinary Waste Generation and Composition Study for the Canton of Desamparados. 181 IGSM 2021 (CGR) has 14 indicators relating to "Waste Collection". See details of each indicator in this link: https://cgrfiles.cgr.go.cr/ publico/docsweb/documentos/publicaciones-cgr/igsm/2021/fichas-indicadores-IGSM.pdf 182 Data from What a Waste Report 2.0. 183 IGSM Data 2021 (CGR). 184 According to the Emissions Inventory 2015, the sources of emissions in decreasing order were: energy, waste, industrial processes, and agriculture. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 126 BOX 1. Environmental education in the Municipality of Desamparados The Program ‘I Am a Responsible Generator’ municipal solid waste that was mixed with recover- developed by the Municipality of Desamparados able material in the municipal collection facility, aims to raise public awareness of responsible which went from 50 percent to only 10 percent of consumption and the importance of waste ordinary MSW. valorization. Education and public awareness campaigns target different audiences of all ages, The Municipality of Desamparados is striving training materials, and video clips with informa- to divert the amounts of organic waste from tion on source separation of waste, responsible landfills. It has conducted campaigns to deliver consumption, and awareness of climate change, rotating compost tumblers, training in different among other topics. Children’s puppet shows have composting techniques, as well as virtual courses been conducted in schools and community centers on home garden management, care, and planting. around the canton. More than 3,000 families in the canton are currently involved in the municipal composting program. The efforts in environmental education have paid off. With the support of the municipal gar- As a result of an inter-cantonal work process bage collection staff, door-to-door educational tasks held with municipalities of Curridabat, La Unión, are conducted to improve the proper separation of Montes de Oca, and San José, the website www. recoverable waste. When collectors identify incor- composteros.go.cr was launched—a virtual com- rect separation practices, a written notice is issued, munity of composters where users can access online clarifying the mistakes and providing recommenda- courses and training workshops. tions. This practice reduced the amount of ordinary in its Cantonal category (PPCNC). The result as part of the activities carried out by the Ecologic of the final GHG inventory concludes that solid Blue Flag Program. wastes are responsible for 29.7 percent of the can- tonal emissions and similar to the last national Education and public awareness campaigns GHG inventories, solid waste ranked the second- in Aserrí are conducted jointly with the can- largest source of GHG emissions.184 tons of Desamparados and Acosta, through the Territorial Council for Rural Development In 2020, the municipality recovered 1,500 tons Caraigres. Virtual workshops have been held on of recoverable material amounting to CRC 90 composting, eco-block manufacturing, and waste million (about US$140,000).185 Out of that management, among other topics. The local gover- total volume recovered, 1,400 tons were processed nment promotes multiple spaces for citizen par- onsite, that is, at the municipal collection facility, ticipation and currently has more than 80 regis- and the remaining 100 tons were delivered to a tered volunteers. The volunteer program leads recycling facility by a women's organization, thus river and creek clean-up days, as well as nursery promoting canton-wide community participation maintenance. in the integrated management of waste. The Aczarrí Environmental Technology The Municipality of Aserrí provides MSW Park is located in the cantons of Aserrí and collection service autonomously, covering 94 Desamparados, and receives solid waste percent of the canton territory. The recoverable generated by 34 cantons of the country waste is collected twice a month,186 and taken to (Environmental Comptroller's Office 2021).187 a collection facility where it is then sold. In addi- Landfills pose additional challenges in the pre- tion, waste collection campaigns are conducted vention and control of MSW pollution as many with the support of ‘Ambientados’ program, and municipalities wherein the landfills are situated 185 In that same year, the canton of Desamparados sent to landfill approximately 57,000 tons of MSW. Thus, 2.63 percent of the recoverable waste generated in the canton was actually recovered. 186 The average garbage collection frequency nationwide is twice a week for ordinary MSW and twice a month for recoverable waste. 187 Environmental Comptroller's Office 2021. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 127 lack legal tools and the economic resources to economy. This is seen as an arrangement to improve oversee their operation. For example, in 2020, the quality of life in both urban and rural areas, 583,033 tons of solid waste were disposed of at the promote the creation of green jobs, extend the life Aczarrí landfill, out of which only 12.2 percent cycle of materials, formalize the contribution of a came from Desamparados and Aserrí. marginalized sector of the population, and foster business actions. Future efforts should strengthen The canton of Alajuelita is participating in the work based on a regional approach, encourage the pilot ‘Project Plan A: Territories Resilient the incorporation of innovative technologies, and to Climate Change’ (2021), supported by the promote the creation of a market for recoverable Climate Change Directorate of the Ministry materials. of Environment and Energy (MINAE). This project focuses on identifying climate risks and Low carbon waste management incorporating adaptation measures within diffe- rent local planning instruments. In Alajuelita, it The National Composting Plan proposes a was found out that the Tiribí River carries waste vision for the country of organics-free landfills generated by other cantons; to capture litter and by 2030. To achieve this, capacities of munici- debris in stormwater runoff and prevent flooding, palities, and other institutions and private initia- they plan to install trash trap netting systems. tives linked to organic waste management need to be strengthened. The Nationally Determined Alajuelita autonomously provides MSW Contribution (NDC 2020) commits Costa Rica collection services, covering the canton’s enti- by 2025 to support at least 10 municipalities to re territory; however, the collection of reco- implement the National Composting Plan and verable waste reaches less than 3 percent of launch the Circular Economy Promotion Policy. the canton territory, since it only covers a few Currently, 28 municipalities are already develo- organized communities that have requested the ping composting programs in their territories. service. Alajuelita also has a waste transfer station, where the users of the canton take their recovera- To implement this plan, it is necessary to pro- ble waste, then it is selected and transferred to a mote intermunicipal partnerships and com- private community-run waste collection facility. posting networks to generate economies of To reduce the occurrence of uncontrolled dumps, scale, as well as technical solutions for organic clean-up campaigns are conducted in sites iden- waste treatment. In addition, efforts to disse- tified as problematic, as well as non-traditional minate different existing composting techniques waste collection campaigns. In 2021, two cam- and change consumption patterns for organic paigns resulted in the collection of 500 tons of waste source reduction are needed. waste, amounting to over 31 collection trucks.188 Strengthening a market for recovered The public-private partnership between the materials Municipality of Alajuelita and its private waste collection facility is an example of how munici- The formulation of a circular economy strate- palities can encourage the formalization of the gy, as well as appropriate financing sources, are recycling sector and the creation of green jobs. essential to streamline the domestic recycling This waste collection facility has a gender-sensiti- market. The Action Plan for Integrated Solid ve approach, as it provides childcare, allowing for Waste Management (PAGIR 2019) identifies the much higher recruitment of women. need to generate and strengthen recycling orga- nizations or businesses, increase the recovery E. A circular economy provides great ratio of recoverable materials, and use innovative opportunities in the future technologies to recover and transform recyclable waste. To make it happen, financing for more With the launch of the Decarbonization Plan in efficient equipment and technology must be made 2019, Costa Rica begun its transition to a circular available. 188 Garbage trucks used as reference are 16-ton dump trucks. CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 128 Access to up-to-date information is a require- holders involved in regional projects to coordina- ment for the design of the different business te much more closely, and thus prevent 35 percent models that can be established around waste of the recoverable material currently being sent to recovery. To achieve this, it is also essential to landfills from following that path in the future. know the current flow of different recoverable materials, as well as the players in each link of The current final waste disposal model fails the value chains. With this, the identification to provide operational, economic, and envi- of investment opportunities and training needs ronmental solutions in line with the circular will be possible, with the aim of enhancing the economy model. Waste management under the recycling processes for each material. circular economy approach, implies that 58 per- Extended Producer Responsibility cent of organic waste produced countrywide will be treated through composting, and 35 percent Enforcing EPR is one of the commitments of recoverable materials will be recycled and rein- assumed by the country during its incorpora- corporated as raw material in the life cycle of new tion into the OECD. The regulatory framework products. However, the final disposal method must be revised and updated to include products for the remaining 7 percent of the unrecoverable such as medicines and cigarette butts to the list of waste has not been identified yet. special waste. Planning these small-scale final disposal sites The country has enjoyed considerable success under a regional approach would reduce emis- relating to EPR. One of these success stories is sions generated by the transportation of waste ‘Fundellantas’ a non-profit organization founded to final disposal sites. Following the proposed by producers, importers, and distributors of tires scheme, these would be organics-banned sites in the country. This foundation collects tires at used exclusively for the disposal of non-recyclable the end of their life cycle, recycles and packs them materials, operated by low-cost local companies. in waste tire bales (consisting of about 100 pas- senger tires interwoven and compressed in a cubic bundle), diverting them from landfill, dumps, or Region-wide innovative waste management open spaces. This demonstrates clearly that the projects are currently in the pipeline. An exam- promotion of sectoral solutions can solve an envi- ple is Komunitas, an inter-cantonal proposal for ronmental issue and create business opportunities the development of an integrated management at the same time. system (Hacia Basura Cero), with the involvement of the cantons of Curridabat, Montes de Oca, At the international level, Green Point, an Desamparados, La Unión and San José. The first EPR scheme designed for the recovery of pac- joint regulatory framework for Integrated Waste kaging in the European Union, is considered a Management was recently drafted as a result successful model. It consists of a label trademark of the joint work between Komunitas and the on the packaging, indicating that the manufac- Municipal Development and Advisory Institute turing company is part of an integrated waste (IFAM). On the other hand, the Institute of system that takes care of the cost of recycling the Rural Development (INDER) supports the deve- packaging. The green dot can be found in plastic lopment of projects such as the Parque Temático containers, metals, Tetra Pak, cardboard, paper, Ambiental Municipal, Canton of Grecia, which and glass. Replicating this initiative in Costa Rica uses the Takakura composting method for orga- would bring together a diverse group of compa- nic waste, as well as set up a waste plastic building nies, benefit informal recycling organizations, and block plant in Canton of Mora. Simultaneously, create green jobs and new markets. the National Directorate of Community Development (DINADECO) has been promo- Regional waste management ting the project called Ecomunidades since 2020, which creates materials recovery facilities (MRFs) Costa Rica’s commitment to transform its in coordination with Integral Development economy requires solutions that go beyond Associations (Asociaciones de Desarrollo Integral the cantonal territory. The Action Plan for in Spanish), and already has an innovative MRF Integrated Solid Waste Management (PAGIR is in La Fortuna, San Carlos. 2019) addresses the need for the different stake- CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 129 References Artavia, S. 2018. “Costa Rica desecha 564 toneladas de plástico al día. La Nación. June 5. Retrieved from https://www.nacion.com/ciencia/medio-ambiente/costa-rica-desecha-564- toneladas- de-plastico-al/PT4ISJT7QFC6ZDZJB5LR3M2TRA/story/. CEGESTI. November 2011. Informe Final. Estudio de generación y composición de residuos ordinarios para el cantón de Desamparados. Municipal Code. Law Nº 7794. Published in the Official Gazette No 94 dated May 18, 1998. Retrieved from http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_ completo.aspx?nValor1=1&nValor2=40197 Environmental Comptroller's Office. Ministry of Environment and Energy, Costa Rica. 2020. Residuos ordinarios dispuestos en los parques de tecnología ambiental de EBI (Rellenos Sanitarios). Informe Anual 2020. Retrieved from: https://www.contraloriaambiental.go.cr/ doc_/doc_1619447942.pdf Comptroller General of the Republic of Costa Rica. 2016. “Auditoria Operativa recolección de residuos sólidos.” Retrieved from https://cgrfiles.cgr.go.cr/publico/docs_cgr/2016/ SIGYD_D_2016002526.pdf Comptroller General of the Republic of Costa Rica. 2021 “Índice de gestión de servicios municipales.” Retrieved from https://www.cgr.go.cr/03-documentos/publicaciones/indice-gestion-serv- mun.html Climate Change Directorate, Costa Rica. 2021. “20 cantones fortalecen su planificación para adaptarse ante los impactos del cambio climático.” August 9. Retrieved from https:// cambioclimatico.go.cr/20-cantones-fortalecen-su-planificacion-para-adaptarse-ante-los- impactos-del-cambio-climatico/ Garza, J. 2018a. “Reciclaje y tratamiento de residuos reactivarían la economía de comunidades. La República.” July 8. Retrieved from https://www.larepublica.net/noticia/reciclaje-y- tratamiento-de-residuos-reactivarian-economia-de-comunidades Garza, J. 2018b. “Ecoturismo deja 809 mil millones anuales a la economía. La República.” November 7. Retrieved from https://www.larepublica.net/noticia/ecoturismo-deja-809-mil-millones- anuales-a-la-economia Government of the Republic of Costa Rica. 2019. National Decarbonization Plan (2018-2050). Retrieved from https://minae.go.cr/images/pdf/Plan-de-Descarbonizacion-1.pdf Government of the Republic of Costa Rica. Action Plan for Integrated Waste Management (2019- 2025). Retrieved from https://www.ministeriodesalud.go.cr/index.php/biblioteca-de- archivos/sobre-el-ministerio/politcas-y-planes-en-salud/planes-en-salud/5076-plan-de-accion- para-la-gestion-integral-de-residuos-2019-2025/file CIRCULAR ECONOMY AND SOLID WASTE MANAGEMENT IN COSTA RICA | SPOTLIGHT 130 Government of the Republic of Costa Rica. National Composting Plan (2020-2050). 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Retrieved from https:// aserri.go.cr/wp-content/uploads/2021/04/Plan-Municipal-Gestion-Integral-Residuos- Solidos-Aserri-2021-2025-.pdf Obando, M. 2021. “Costa Rica recicla seis veces menos que los países de la OCDE. La República.” August 2. Retrieved from https://www.larepublica.net/noticia/costa-rica-recicla-seis-veces- menos-que-los-paises-de-la-ocde-2021-08-07-07-52-47 OECD (Organization for Economic Cooperation and Development). 2020. “Examen del proceso de adhesión de Costa Rica a la OCDE en las áreas de medio ambiente y residuos.” Informe Resumido. April 10. Retrieved from https://www.comex.go.cr/media/8085/vf-es-informe- evaluación-ambiental.pdf Presidencia de la República, Costa Rica. 21 abril 2022. “Costa Rica aumentó la protección de sus ecosistemas en más de 16 millones de hectáreas.” Retrieved from https://www.presidencia. go.cr/comunicados/2022/04/costa-rica-aumento-la-proteccion-de-sus-ecosistemas-en-mas-de- 16-millones-de-hectareas/ Reforma a la Ley para la gestión integral de residuos sólidos, Ley orgánica del ambiente y el Código Municipal. Ley 9825. Published in the Official Gazette No 265 del 4 de November 2020. Retrieved from http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_ completo.aspx?param1=NRTC&nValor1=1&nValor2=92853&nValor3=0&strTipM=TC Rudin, V., S. Soto, and C. Linnenberg, C. 2019. First Solid Waste Management Status Report for Determination of Waste NAMA Costa Rica. Project Acción Clima II. Soto, S. 2019. “Gestión de los residuos sólidos en Costa Rica. Ponencia preparada para el Informe Estado de la Nación 2019.” San José: PEN. Retrieved from https://repositorio.conare.ac.cr/ handle/20.500.12337/7818 Sistema Nacional de Áreas de Conservación. Informe Anual Estadísticas SEMEC 2019-2020: SINAC en números. 2021. Retrieved from https://www.sinac.go.cr/ES/transprncia/Informe%20 SEMEC/Informe%20SEMEC%202019-2020.pdf | ANNEXES 132 Annexes Annex 1: The institutional approach to climate change in Costa Rica Costa Rica has a climate agenda aligned of payments for environmental services, deve- with internationally agreed objectives. One loped in the 1990s, has been an international of the commitments in this agenda is to impro- example (Sánchez and Navarrete 2017). Due ve urban and territorial planning processes to to the size of the country and its global contri- have a development model that contributes to bution in terms of emissions (Figure 1), Costa limiting the increase in global average tempe- Rica has reinterpreted the mitigation agenda as rature to 1.5°C (MINAE 2020). Its normative an opportunity to develop more efficient deve- reference framework is based on the constitu- lopment practices oriented toward the use of tional level, protected in Article 50 and in the more sustainable energy sources and the exploi- Organic Law of the Environment. This general tation of high value-added business activities, mandate is detailed in the National Policy for linked to the green, orange, and blue economy. Adaptation to Climate Change 2018–2030 and the National Decarbonization Plan 2018– The operational framework proposed by the 2050. The country has also signed and promo- National Decarbonization Plan (MINAE ted, nationally and internationally, the main 2018b) organizes its efforts in five pillars: international agreements on the subject, such (a) The transformation of public transporta- as the United Nations Framework Convention tion; (b) Accelerating and scaling up actions on Climate Change, the Kyoto Protocol, the to transform the agricultural sector activities Copenhagen Accord, the Paris Agreement, and that produce the most emissions; (c) Laying the Marrakech Alliance. the groundwork for the electrification of the economy, not only in transportation but also The country has stood out internationally as in industry; (d) Avoiding technological routes a pioneer in mitigation (Table 1). The con- in energy and transportation that are limited servation and reforestation policy, which the to partially reducing emissions, but are not country has been promoting since the 1980s, aimed at a zero emissions transition; and (e) positioned it as one of the first international Strengthening green tax reform. references in carbon sequestration. Its scheme | ANNEXES 133 TABLE 1. Costa Rica establishes four goals in its NDC, both in adaptation and mitigation Adaptation Goals Mitigation Goals • Costa Rica is committed to strengthening the country's social, • Costa Rica commits to an absolute maximum of net emissions economic, and environmental resilience to the effects of in 2030 of 9.11 million tons of carbon dioxide equivalent climate change through capacity building and information for (CO2e) including all emissions and all sectors covered by the decision-making, the inclusion of adaptation criteria in financing corresponding National Greenhouse Gas Emissions Inventory. and planning instruments, the adaptation of public services, productive systems and infrastructure, and the implementation of nature-based solutions. • Based on Article 7.11 of the Paris Agreement, and following • Costa Rica commits to an absolute maximum net emissions the indications of Decision 9/CMA.1 of the United Nations budget for the period 2021–2030 of 106.53 million tons of Framework Convention on Climate Change, Costa Rica has CO2e including all emissions and all sectors covered by the decided to submit its Adaptation Communication as part of this corresponding National Greenhouse Gas Emissions Inventory. NDC. FIGURE 1. If no action is taken, Costa Rica's emissions will increase by 2.4 percent annually Figure 1a. Total absolute emissions Figure 1b. Costa Rica. Total emissions by sector (2017) (Gg CO2e) (1990–2017) 40,000 40,000 12% 12% Energy Energy 30,000 30,000 20,000 20,000 17% 17% IPPU IPPU 46% 46% 10,000 10,000 Agriculture Agriculture 17% 17% 0 0 1990 1992 1990 1994 1992 1996 1994 1998 1996 2000 1998 2002 2000 2004 2002 2006 2004 2008 2006 2010 2008 2012 2010 2014 2012 2016 2014 2016 8% 8% FOLU FOLU FOLU Total withTotal with FOLU TotalFOLU Total without without FOLU Source: Own elaboration with data from Sistema Nacional de Métrica de Cambio Climático. Costa Rica's governance system has been stren- change, promoting the integration of an intra- gthened in recent years, moving from a secto- ministerial climate change agenda in its different ral to a comprehensive model. In the past, its cli- dimensions; (b) Exercise the focal point of the mate change governance system relied mainly on Framework Convention on Climate Change in its the environmental sector. Gradually, the model different areas and support the governing body in evolved toward a systemic one, which recognizes the negotiation process under the Convention and climate change as a problem derived from the its instruments; (c) Act as Technical Secretariat of development model and, consequently, must be the Domestic Carbon Market and its structures; addressed from different sectoral, institutional, (d) Coordinate and promote the implementation and territorial fronts (Corrales 2014). of the Carbon Neutral Country Program with the various actors and sectors of national activi- Currently, climate action processes are coor- ties and other programs that may be generated to dinated by the Climate Change Directorate consolidate the implementation of climate action; (DCC), which according to the Organic and (e) Promote multi-sectoral participation spa- Regulations of the Ministry of Environment ces that encourage the involvement of the private and Energy (Presidency of the Republic 2011) sector, public sector, academia, and civil society in has, among others, the following functions: (a) climate action. Coordinate and manage public policy on climate | ANNEXES 134 In parallel, the DCC coordinates complemen- could be warmer, with an increase in the average tary efforts carried out by other institutional temperature that could be between 1°C and 2°C. systems, such as the National System for Disaster In terms of ecosystem and biodiversity transfor- Risk Management and Territory or the National mation, it is estimated that the country could Land Management Council. It also monitors experience a reduction in the number of biodiver- citizen governance structures, such as the Citizen sity zones, going from 11 to 6 by 2040 (Birkel et Advisory Council on Climate Change and the al. 2019), with the implications this would have in Scientific Council on Climate Change, created by terms of species loss. On the other hand, the inci- executive decrees 40616 and 40615, respectively. dence of climate change would have a direct effect on disaster risk levels in the country. Considering According to the National Policy on the country's current vulnerability conditions Adaptation to Climate Change, the country and trends in the number of hydrometeorological intends to move toward a resilient develop- events per year, the Comptroller General of the ment model—A model that avoids human losses Republic (CGR) projects that the costs that the and mitigates material damages generated by the country would have to face would be between adverse effects of climate change. This should con- 1.05 and 2.5 percent of the annual gross domestic tribute to the quality of life of the most vulnerable product (GDP) (CGR 2019). populations and take advantage of opportunities to innovate and transform productive sectors and Costa Rica has a two-pronged approach to ensure the continuity of public services (MINAE adaptation: one in which it generates resilience 2018a). in the face of negative effects and another in which it seeks to develop capacities to take advan- The country's main challenge in the face of the tage of opportunities derived from global war- climate crisis lies in increasing its capacity to ming. This is driven by three specific objectives: adapt its socioeconomic development model to (a) Strengthen resilience capacities, (b) Reduce the transformations identified under different damages and losses, and (c) Take advantage of scenarios. According to the most recent technical opportunities. These orbits of action are governed information, the country faces imminent challen- by guiding principles which correspond to current ges that would have to be considered in this new constitutional precepts that enable the processes resilient development model. According to the defined in the policy (Figure 9). Fourth National Communication 2021 (MINAE 2020), in the short and long term, temperatures FIGURE 2. Costa Rica's adaptation approach contemplates principles that seek to implement actions that benefit as many productive sectors, territories, population groups, and institutions as possible Resilience and Business Participation Territoriality / Transformation. and Services and inclusion. interterritoriality Innovation and Continuit.y Transparency and and competitiveness. accountability. decentralization Territoriality / Intersectoriality Prevention and interterritoriality and shared Flexibility. Social and Public-Private Equity and decentralization responsibilities. Universality. Source: MINAE 2018a. | ANNEXES 135 References Birkel, C., Dehaspe, J., Chavarría-Palma, A., Venegas-Cordero, N., Capell, R., & Durán-Quesada, A. M. 2022. Projected climate change impacts on tropical life zones in Costa Rica. Progress in Physical Geography: Earth and Environment, 46(2), 180–200. CGR. 2019. Presión sobre la Hacienda Pública en un contexto de variabilidad y cambio climático: desafíos para mejorar las condiciones presentes y reducir impactos futuros. https://cgrfiles.cgr. go.cr/publico/docs_cgr/2017/SIGYD_D_2017015617.pdf Corrales, L. 2014. Cambio climático: impactos y desafíos para Costa Rica. San José: CONARE. MINAE (Ministry of Environment and Energy). 2018. Política Nacional de Adaptación al Cambio Climático. San José: Government of Costa Rica. MINAE (Ministry of Environment and Energy). 2020a. Costa Rica. Cuarta Comunicación Nacional. San José: Government of Costa Rica. MINAE. 2020b. Contribución Nacionalmente Determinada de Costa Rica. San José: Government of Costa Rica. Sánchez-Chaves, O., & Navarrete-Chacón, G. 2017. La experiencia de Costa Rica en el pago por servicios ambientales: 20 años de lecciones aprendidas. Revista De Ciencias Ambientales, 51(2), 195-214. https://doi.org/10.15359/rca.51-2.11 | ANNEXES 136 Annex 2: Results of the Econometric Analysis of the Spatial Distribution of COVID-19 The geographically weighted regression FIGURE 1. The GWR model of COVID-19 incidence in the GAM (GWR) method was applied to explore spatial fits the data better in Alajuela, Heredia, and Cartago than in distribution of COVID-19: for each spatial unit San Jose in the database, a linear regression centered on that unit is estimated; the weight of data corres- ponding to other units is determined by proximi- ty to this unit. In this way, it is possible to estimate how the regression coefficients vary (that is, how the relationships between the dependent variable and each of its determinants vary) in space, as well as the goodness of fit of the model (Fotheringham et al. 2002). The GWR model explains between 72 and 95 percent of the variation in the number of COVID-19 cases identified - see Figure 1. The km 0 2.5 5 10 15 local R2 coefficients of determination are higher in the GAM's peripheral districts but also have Arco Sur cantons Local Coefficient of Determination great power in the center of the region (the central 0.72 - 0.77 areas of San José, Alajuela, and Heredia). Their 0.78 - 0.80 0.81 - 0.82 performance is poorer in Cartago districts, but 0.83 - 0.85 0.87 - 0.95 R2 values vary between 72 and 77 percent even there. The determinants selected in this model to explain the incidence of COVID-19 in the GAM Source: Prepared by authors based on data from the Ministry of Health updated by September were exogenous data (2011 census): total density 5, 2021, and the 2011 Census. (population divided by district area), percentage of immigrants of foreign origin, average years of COVID-19 incidence increases with exposure schooling, percentage of workers living and wor- (commuting workers), with total density and king in different cantons, and percentage of the with the percentage of foreigners, and decrea- substandard, slum, or shanty homes. In general, ses for the population with higher schooling the hypothesis is that poorer households live in levels. Table 1 shows the ranges of local regres- denser areas (population-wise) and have more sion coefficients with their respective standard run-down housing, forcing a closer interaction errors. The number of people working away from among household members, while workers from the canton where they live has positive and sig- poorer households are forced to commute to nificant coefficients: the more they are forced to work. This implies additional exposure by interac- commute, the higher the incidence of COVID-19 ting with more people. in their districts (due to greater exposure). When | ANNEXES 137 analyzing other variables, (a) they are genera- although total density has slightly larger standard lly significant, that is, their standard errors are errors. The only variable with a sign opposite to relatively low and (b) some coefficients (close what is expected is the percentage of housing in to the maximum or minimum) do not have the slums, shantytowns, or precarious settlements, expected sign (although the median does, except which is generally negative despite signaling in one case). Both total density (which may be an extreme poverty, which would be expected to indication of overcrowding) and the percentage of correlate with a higher incidence of COVID-19. the foreign-born population (mostly Nicaraguan However, the mechanism is overcrowding, whose low-income households, that is, an indication effect may already be captured by total density. of poverty) are generally positive determinants, TABLE 3 GWR Model Regression Coefficients189 Variable Min Median Max Population density −4.78 (10.9) 5.44 (2.28) 33.6 (23.3) Share of persons working away from the canton 0.19 (0.048) 0.24 (0.045) 0.53 (0.14) where they live Percentage of housing in slums, shantytowns, or −1.39 (0.41) −0.95 (0.61) 2.21 (1.11) substandard settlements Percentage of the foreign-born population −0.23 (0.24) 0.66 (0.076) 0.75 (0.082) Average years of education −256.9 (103.9) −137.8 (46.9) 87.1 (147.9) 189 In parentheses: standard error of the regression coefficient (does not correspond to the minimum, median, and maximum standard error values but the error associated with the minimum, median, and maximum coefficients). | ANNEXES 138 Annex 3: Plans and regulations regarding the decarbonization of transportation. PRUGAM Project 2005–2007. This project Intermunicipal Territorial Plan for Active represents a shift in the urban development model Mobility (ITPAM). The ITPAM was born from to make cities denser, increase the supply of public the efforts of local governments and central gover- transportation, and build roads to remove freight nment institutions of Costa Rica with an aim to transportation from the city. improve the quality of life of citizens by promo- ting active mobility. The plan has been built to National Transportation Plan 2011–2035. This organize all these efforts and create a common plan provides the basis for the modernization of vision. This document compiles in each of its the public transportation fleet to minimize the sections the different stages of the process and impact of transportation systems on the environ- presents the results that have been validated by ment and promote intermodality, coverage, and the different parties (https://changing-transport. capacity of the system. org/publication/plan-interterritorial-municipal- de-movilidad-activa/). National Energy Plan (PNE) 2015–2030. The plan seeks to promote energy efficiency and the Law 9518 of 2018. It establishes the regula- renewal of the vehicle fleet by creating favorable tory framework for the promotion of electric fiscal and financial conditions, developing urban transportation and policies to incentivize its use. planning programs that optimize routes, and It provides the guidelines for electric mobility encouraging the adoption of clean technologies governance, institutional competencies, as well for the replacement of at least 5 percent of fossil as exemptions and incentives for zero-emission fuels with renewables.190 mobility. Decarbonization Plan 2018–2050. The plan Executive Decree 41092, Regulations - Electric has three pillars focused on transportation and Transportation Incentives. This regulates the mobility: (a) Development of a mobility system institutional competencies for electric vehicle based on safe, efficient, and renewable public tran- (EV) fleet with economic and non-economic sit, and active and shared mobility schemes; (b) incentives. Transformation of the light vehicle fleet to zero emissions, supplied with renewable energy; and Executive Decree 41426, Incentives for Used (c) Advocacy of freight transportation that adopts EVs. This establishes the benefits for used EVs low- or no-emission modalities, technologies, and and creates blue parking lots exclusively for energy sources. EVs. Executive Decree 41427, Promotion of Sustainable National Electric Transportation Plan 2018– Mobility in Central Government Institutions. 2030. This plan promotes fleet modernization This promotes sustainable mobility by (a) and transformation, including electric fleet modernizing transportation, (b) increasing the incentives. 190 The VII National Energy Plan 2015–2030 is prior to the National Decarbonization Plan, which is why the target of the Energy Plan is lower when compared to that set out under the Decarbonization Plan. | ANNEXES 139 productivity of public servants; (c) increasing Urban Development Plan 2018–2023. The plan the use of public transportation, (d) reducing air promotes sustainable urban planning, proposing pollution and greenhouse gases, (e) saving public an urban infrastructure construction framework resources, and (f) reducing road congestion and for sustainable mobility and modal integration. fuel use. Mobility and Cycling Safety Act 9660 of 2019. The law prioritizes bicycle mobility and its inte- The Bicentennial National Development and gration with the electric train and a bus-based Public Investment Plan 2019–2022. One of transit system. this plan’s primary objectives is to reduce CO2 emissions by replacing fuels in the transportation Legislative Decree 9329. The First Special sector through (a) the rational use of renewable Law on Transfer of Powers: Full and Exclusive energies, (b) the construction of national electric Attention to the Cantonal Road Network esta- recharging infrastructure, (c) the increase of the blishes that cantons are responsible for the cons- EV fleet, and (d) the development of low-emission truction of sidewalks. There is a bill in the pipeline fuel studies. to have the canton accomplish the build and then charge the private sector for it. In principle, this Law 9366 of 2016, Strengthening of the Costa would enable substantial improvements in the Rican Railroad Institute (INCOFER) and the municipalities' sidewalks, which in turn would Greater Metropolitan Area Interurban Electric result in increased pedestrian mobility. Railway Promotion. The law grants INCOFER responsibility over the electric train project. | ANNEXES 140 Annex 4: Existing land-use planning institutions, competencies, and instruments in Costa Rica URBAN PLANNING AND LAND-USE PLANNING NATIONAL AND MUNICIPAL COMPETENCIES AND INSTRUMENTS DEFINING/ NORMATIVE GOVERNING BODY or Responsibilities of Management INSTRUMENTS REGULATION, LAW, Coordinating State Governing Body or RELATING to Municipal Municipal Management OR RULE Agency State Agency Competence INSTRUMENT National Planning Act Ministry of National Coordinate the National 2019–2022 National Cantonal Human Nº 5525 Planning and Economic Planning System and Development Plan and Public Development Plan Local Policy regional planning Investment Plan (in effect) Cantonal Plan instruments Development Plan - Central Municipal Strategic Plan Region (Desamparados, Aserrí, and Alajuelita) Annual Plans of Operations Costa Rican Municipal 84 local governments Administration of General Guidelines on Local Cantonal Human Code, Law Nº 7794 with financial, political, cantonal interests and Development Planning (L-1- Development Plan Local and administrative services 2009-CO-DFOE) Cantonal Plan Reforms to the legal autonomy. framework that Superior budgetary Guidelines for Preparation and Municipal Strategic Plan assign competencies Comptroller General of oversight Submission of the Institutional to the Comptroller the Republic (oversight) Budget to the Comptroller Annual Plans of Operations General of the General of the Republic Republic under the Municipal Regime Act Nº 8494 LAND-USE PLANNING INVU Organic Act Nº National Housing and • Plan the development National Land-use Planning Regulatory Plan and 1788 Urbanism Institute and growth of cities Policy Related Urban Development Urban Planning Act • Coordinate activities Regulations Nº 4240 relating to urban 2030 GAM Plan planning with all state agencies Regulatory Plan Preparation • Provide advice Handbook as a land-use and assistance to planning instrument municipalities • Review and approve Regulatory Plans Organic Environment Ministry of Environment • Inter-institutional Manual on Technical Regulatory Plan and Act Nº 7554 and Energy coordination for Instruments for the Related Urban Development SENARA Act Nº 6877 • National System of promoting harmony Environmental Impact Regulations Biodiversity Act Nº Conservation Areas between the Assessment Process (EIA 7788 • National Forestry well-being of the Manual) Forest Act Nº 7575 Office population and environmental conservation. • Public water use permits Continues > | ANNEXES 141 Continued > URBAN PLANNING AND LAND-USE PLANNING NATIONAL AND MUNICIPAL COMPETENCIES AND INSTRUMENTS DEFINING/ NORMATIVE GOVERNING BODY or Responsibilities of Management INSTRUMENTS REGULATION, LAW, Coordinating State Governing Body or RELATING to Municipal Municipal Management OR RULE Agency State Agency Competence INSTRUMENT Soil Use, • National • Environmental impact Technical Procedure for (Environmental variable) Management, and Environmental assessments the Introduction of the Conservation Act Nº Technical Secretariat Environmental Variable in 7779 • National Regulatory Plans or other Land- Groundwater, Use Planning General Regulations Irrigation, and on Environmental Drainage Service General Methodology to Prepare Impact Assessment (IDA and MAG as Hydrogeological Studies for Procedures of Costa appropriate) Regulatory Plans Rica (Executive Decree • Ministry of Agriculture Nº 31849 - MINAE - S - and Livestock Land Capacity Analysis MOPT - MAG - MEIC) Methodology for Costa Rica General Protected Wildlife Areas Management Plan Soil Management, Conservation, and Recovery Plan by Area Soil Use, Management, and Conservation Plan in Management Areas General Public Roads Financing National road network Regulations on Functional Cantonal Road Maintenance Act Nº 5060 administration Classification of Public Roads and Development Plan Ministry of Public Works Tax Simplification and and Transportation Transfer of the fuel National Transportation Plan Efficiency Act Nº 8114 • National Public tax (22.25%) to the 2011–2035 (in effect) (Decrees 30263-MOPT Transportation municipalities, for of 2002, and 34624- Council cantonal road network 2018–2022 Five-Year Strategic MOPT of 2008, and • National Road Council maintenance Plan of National Road Council Decree 40138-MOPT) • National Road Safety (in effect) Council Technical support and Special Law for the coordination with local Five-Year Road Maintenance and Transfer of Functions: Federated College of governments in road Development Plans: Formulation Full and Exclusive Engineers and Architects affairs and Monitoring Guidelines Managementmari of of Costa Rica the Cantonal Road Network Nº 9329 and its Regulations thereunder (Decree 40137-MOPT) Pedestrian Mobility Act Nº 9676 National Cadastre National Cadastre Keep cadastral Guide on Requirements for Municipal Cadastre Act Nº 6545 and information up to Submission of Plans and its Regulations date and accessible to Documents to the One-Stop- thereunder municipalities Shop of the Directorate of Urban Development Establishment of the National Territorial Information System, Executive Decree No. 37773-JP-H-MINAE- MICITT of July 12, 2013 Continues > | ANNEXES 142 Continued > URBAN PLANNING AND LAND-USE PLANNING NATIONAL AND MUNICIPAL COMPETENCIES AND INSTRUMENTS DEFINING/ NORMATIVE GOVERNING BODY or Responsibilities of Management INSTRUMENTS REGULATION, LAW, Coordinating State Governing Body or RELATING to Municipal Municipal Management OR RULE Agency State Agency Competence INSTRUMENT Maritime Terrestrial Costa Rican Tourism Superior and general 2017–2021 Tourism Coastal Regulatory Plans Zone Act Nº 6043 Institute surveillance of the Development Plan and its Regulations maritime-terrestrial zone thereunder Approval of urban and Framework Law for tourist development Declaration of Urban plans in the maritime- Coastal Zone and terrestrial zone Territorial Use and Development Regime Nº 9221 Ley National National Emergency Link instruments, National Risk Management Cantonal Risk Management Emergency and Commission programs, and public Policy Plan Risk Prevention resources with ordinary Act Nº 8488 and and extraordinary National Risk Management Plan its Regulations institutional and sectoral thereunder actions to prevent the National Risk Management occurrence of disasters System and emergency response in all its phases SPECIAL REGIME ZONES Costa Rican Historical National Museum Administration and Historical and architectural Regulatory Plan and and Architectural designation of historical heritage declaration Related Urban Development Heritage Act Nº 7555 Ministry of Culture, and architectural Regulations Youth and Sports, heritage Public Registry of National Archaeological Department of Historical Archaeological Heritage Heritage Act Nº 6703 Heritage Conservation advisory services Water Act Nº 2796 Ministry of Environment Adjudicate the Municipal aqueducts and Energy ownership, exploitation, use, governance, or Inventory of water concessions Aqueducts and surveillance of public Sewerage (public water domain water resources supply) and utilities Mining Code Nº 6797 Department of Geology Absolute ownership of Permit and concession to mine and Mines mineral resources materials from public domain waterways Ministry of Environment Award concessions and Energy for prospecting, exploring, exploiting, and processing mineral resources, in conformity with the law in effect Costa Rican National Commission on Indigenous territories are Indigenous Peoples Indigenous Affairs administratively autonomous Act Nº 6172 General Civil Aviation Technical Council of Aircraft operation Act Nº 5150 Civil Aviation and the permits and licenses General Directorate of Civil Aviation, Ministry of Public Works and Transportation Continues > | ANNEXES 143 Continued > URBAN PLANNING AND LAND-USE PLANNING NATIONAL AND MUNICIPAL COMPETENCIES AND INSTRUMENTS DEFINING/ NORMATIVE GOVERNING BODY or Responsibilities of Management INSTRUMENTS REGULATION, LAW, Coordinating State Governing Body or RELATING to Municipal Municipal Management OR RULE Agency State Agency Competence INSTRUMENT URBAN DEVELOPMENT REGULATIONS Condominium Property Regulatory Law Nº 7933 Regulations for National Subdivision and Urbanization Control Building Act Nº 833 Building Regulations Urban Renewal Regulations Greater Metropolitan Area Industrial Zoning Regulations Source: Developed by authors. | ANNEXES 144 Annex 5: Municipal revenues have different sources and applications TRANSFER PERCENTAGE, OR ESTIMATED INTENDED PURPOSE, AND APPLICATION MUNICIPAL REVENUE AMOUNT OF FUNDS Property Tax Act Nº 7509/ Nº 7729 0.25% of the appraised value of the property 10% Education Boards registered in the tax administration 3% National Cadaster Administrative Board 8% Municipal Development Fund 3% IFAM (% training and assistance, 2% for credit) 1% Ministry of Financing 10% Administrative expenses 66% Provision of services or investment projects Specific taxes on the exploitation of natural 10% of the market value per cubic meter of NOT earmarked for a specific purpose, and and mineral resources, Law Nº 6797 - Mining extracted materials (sand, stone, ballast, and only the municipalities endowed with the Code so on) resource collect it Tax on construction, building licenses, or NOT earmarked for a specific purpose, permits, Law Nº 4240 and its regulations unrestricted use Live Entertainment Tax Act Nº 3/7097-88 6% levied on all public amusement events 50% on cultural events Not collected by the GAM municipalities 50% of sports events because it is collected by the National Theater Specific taxes on the production and % of all admission fees, tickets, or entrance NOT earmarked for a specific purpose consumption of services, Law Nº 190, Law of all non-free public shows or amusement Nº 6844, Law Nº 6890 and minimum consumption Municipal operating permits, special laws on One and a half per thousand (1.5 × 1,000) NOT earmarked for a specific purpose profit-making activities by profession, trade, on sales or gross income industry, commerce, arts, or any secondary or tertiary profit-making activity Eight per thousand (8 × 1,000) on the net taxable income Municipal tax stamps (for mortgages and 2 × 1000, two colones per thousand of the Unrestricted application mortgage bonds) Law Nº 7794 value of the property Tax stamps for National Parks, Article 43 of Tax stamp 2% on municipal operating permit 10% to National Commission for Biodiversity Biodiversity Act Nº 7788 revenue, tax stamp of CRC 5,000 levied for Management (CONAGEBIO) social clubs, bars, liquor stores, restaurants 3% on the formulation and implementation of local sustainable development strategies 70% National Parks Fund Sale of other goods Sale of recycled materials Market Rent Act Nº 2428 Depending on the size of leased premises, 10% for administrative costs cost of living, economic condition 90% service delivery Cemetery maintenance service, General Annual service cost and profit 10% Administrative costs Cemetery Regulations, and Law Nº 7794 percentage 90% service delivery Sale of other services Issuance of municipal and public registry Unrestricted application certifications Continues > | ANNEXES 145 Continued > TRANSFER PERCENTAGE, OR ESTIMATED INTENDED PURPOSE, AND APPLICATION MUNICIPAL REVENUE AMOUNT OF FUNDS Maritime mile land lease, Law Nº 6043 Annual concession fees, as appraised 20% Improvement in payments 2% Agricultural and livestock use 40% Tourist zone improvement works 3% Residential use 40% Cantonal improvement works 4% Hotel, tourist, and recreational use 5% Commercial, industrial, mining, or extractive use Building Act violation penalties/other Unrestricted application penalties and late filing penalty interests Road Safety Council's contribution under the 10% total traffic violation revenue to all Earmarked to finance road safety projects Road Traffic Law Act Nº 7331 municipalities based on population and geographic area parameters National Council on Public Policy for Youth, Cantonal Youth Committees Law Nº 8261 Liquor Law 50% of total revenues allocated to 50% to the municipal urban development municipalities plan (Law Nº 6796, reforms Law Nº 6282) Land sales, Notice plan, Law Nº 6282 Land sales and subdivision fund, land concessional financing for residents of the canton Liquor operating permit, Law Nº 9047 Each municipality has its regulations Banana export duties paid to banana CRC 4,224,000 million in 2020 CRC 4,224,000 million in 2020 producing municipalities Land freight export tariffs CRC 1,025,000 million in 2020 For cantons of La Cruz, Corredores, Talamanca, Coto Brus, Los Chiles, and 5 ministries Land transport export duties Only 5 municipalities and 6 ministries Departing for foreign territory duties Departing for foreign territory duties Source: Budgetary Classifier by Object of Expenditure of generalized use for the public. Decree Nº 34325. Municipal Code and related regulations. Municipal Budget Structure. | ANNEXES 146 Annex 6. Datasheet by South Corridor Municipality Desamparados The canton of Desamparados is the best per- TABLE 1. Municipality of Desamparados, performance by former in municipal transparency, social capi- pillars reviewed under the 2021 Cantonal Competitiveness tal, and access to services. Its primary challenge Index lies in cantonal road network investments. Cantonal Competitiveness, The canton of Desamparados has 13 districts Dimension Reviewed Score (1–100 scale) and a total population of 245,208 inhabitants, Institutions 73.3 pts of whom 21 percent are between 0 and 14 years old, 71 percent are between 15 and 64 years Infrastructure 64.9 pts old, and 9 percent of the population is over ICT adoption 64.2pts 65 years old. It ranks 29/82 in the Cantonal Health 68.6 pts Competitiveness Index (2021),191 implying opti- Skills and competence 46.0 pts mal performance in most social, institutional, economic, health, education, and services dimen- Economy 37.9 pts sions. Municipal transparency, social capital, and access to public services are the best-performing Source: 2021 Cantonal Competitiveness Index. dimensions. Educational coverage, connectivity, and road infrastructure are the biggest challenges that affect the canton of Desamparados. TABLE 2. Municipality of Desamparados, 2021 Cantonal Competitiveness Index, indicators reviewed Dimension Indicator Baseline data192 Score193 Social Capital Structural participation in municipal elections 83.1% 100 Current participation in municipal elections (in percentage points) 10.4 68.1 Fostering citizen participation promotion 100% 100 Municipal Strengthening E-Municipality 83.8% 81.7 Municipal self-monitoring 36% 20 Risk self-assessment 100% 100 Strength of planning 92.5% 91.6 Continues > 191 The Cantonal Competitiveness Index reviews institutional conditions, infrastructure, health, skills and competencies, and economy and markets (6 Pillars), classifying the cantons as Exceptional, Competent, Emerging, Limited, or Deficient. 192 Baseline data is the original value in the indicator measurement (not applicable to dimension or pillar). Indicators have different units of measurement (colones, percentages, km, KwH, among others) according to the ICC, 2021. 193 According to ICC, on a 1–100 scale. | ANNEXES 147 TABLE 2. Table 2. Municipality of Desamparados, 2021 Cantonal Competitiveness Index, indicators reviewed (Continued) Dimension Indicator Baseline data192 Score193 Municipal Transparency Citizen budget transparency 100% 100 Information access 76.8% 78.9 Accounts 77.9% 100 Citizen participation 70.5% 100 Open government data 54.9% 64.5 Budgetary Per capita investment in community services ¢25 861 17.0 administration Per capita capital investment ¢11 034 1.4 Financial dependency on state transfers 11.9% 90.4 Transport Infrastructure Cantonal road network condition 59.7% 46.6 Average road network and traffic safety investment per km ¢4,591,654 27.3 Other transport infrastructure No 0 Service stations every 100 km of the road network 1.4 19.3 Road connectivity Distance to airport (in km) 14.2 96.6 Distance to port (in km) 85.7 49.1 Average traffic delay (seconds per 100 m) 138 83.2 Highway congestion (annual traffic jams per 100 m) 2,139,855 62.6 Municipal public services Coverage of parks and beautification works 100% 100 Road and public areas clean-up service coverage 100% 100 Social infrastructure investment per capita ¢438 1.4 Built-up area growth Expansion of constructions 0.3% 5.2 Growth in housing built-up areas 0.2% 20.2 Growth in commercial built-up areas −0.3% 4.9 Growth in an industrial built-up areas −0.9% 0.1 Growth in service built-up areas −0.6% 1.1 Source: Developed by authors, based on 2021 Cantonal Competitiveness Index. The municipality has in place adequate arran- Solid Waste Management (SWM) collection, gements, including accountability, legitimacy of municipal water supply, cemetery, clean-up, and citizen participation, great respect for democracy beautification services. There are about 22 wor- and its institutions, as well as building trust and king processes, staffed by 506 employees working cooperation. The canton has a strong provision of in the institution. basic public services to the citizens. In a more specific municipal institutional per- Based on the institutional analysis, the munici- formance review, Municipal Management Index pality excels in transparency and risk assessment. (2018), Desamparados scored 86.09, putting it Weaknesses include open government data mana- in Group A among the municipalities with the gement and municipal self-monitoring. largest budgets. The highest scoring axis is Social Services Management at 91.10 and the lowest The municipality has a basic organizational scoring axis is Economic Services Management structure, a tax administration service, a gene- at 82.80. The areas of improvement include citi- ral administration department, an urban plan- zen participation, road, and public area clean- ning department (Department of Urban and up, and SWM collection. The Municipality Rural Management), and the Environmental of Desamparados improved its performance Management Directorate, designed to provide regarding the IGM-2017; it increased 13.86 | ANNEXES 148 points, becoming a partially compliant municipa- By 2021, and according to the provision of urban lity (2/3) against its planned improvement of the services,194 the Municipality of Desamparados is a 2017 Municipal Management Index. local government that functions as follows: ROAD Service CLEAN-UP Service Regulations in fees Average % Resource investment Service quality SERVICE delivered place Updated coverage Delinquency percentage evaluation Yes Yes Yes 100.00% 39.56% 0.00% No SOCIAL AND Communication Population Service COMPLEMENTARY Service Regulations Application channels Beneficiary served by social quality SERVICES delivered in place of funds updated update programs evaluation Yes Yes Yes 100.00% 39.56% 0.00% No EDUCATIONAL, Population served by CULTURAL, AND Service Regulations education, social, and Application of Communication Service quality SPORTS SERVICES delivered in place sports programs funds channels updated evaluation Yes Yes Data not available 68.33% Yes No Simplified Fully Fully application automated automated Fully automated Service URBAN PLANNING Service Regulating process land-use building business quality SERVICES delivered Plan officer permitting permitting licensing evaluation Yes PARTIAL Yes Yes Yes Yes No In 2020, the municipality of Desamparados issued Based on municipal data, the road network ser- 15 building permits, within 10 calendar days on viced by the municipality is 524 km, while 50 average. Business license processing time is one percent of the total number of bridges are in fair day. condition. Works Works completed completed Service CANTONAL ROAD Service Regulations 5-year plan Multi-year with with quality quality NETWORK delivered in place in place projections supervision assurance evaluation Yes No No Yes 100.00% 100.00% No GRAPH 1. Large share of the road network in Desamparados is in excellent or good condition 400 239 168 200 75 28 13 0 Excellent Good Fair Poor Very poor Source: 2021 Municipal Service Management Index, Comptroller General of the Republic. 194 2021 Municipal Service Management Index, Comptroller General of the Republic. | ANNEXES 149 Aserrí social works and services, while the cantonal road network is in poor condition. Aserrí has potential for growth and improved performance. The Municipality of Aserrí needs Based on the institutional analysis, the munici- to strengthen information access, accountability, pality excels in transparency and risk assessment. and citizen participation. Weaknesses include information access, accoun- tability, citizen participation, and open govern- The canton of Aserrí has 7 districts and a total ment data management. population of 63, 529 inhabitants, of whom 21 percent are between 0 and 14 years old, 71 percent TABLE 3. Municipality of Aserrí, performance by pillars are between 15 and 64 years old, and 8 percent of reviewed under the 2021 Cantonal Competitiveness Index the population is over 65 years old. It ranks 44/82 in the Cantonal Competitiveness Index (2021),195 Cantonal Competitiveness, implying emerging performance in most of the Dimension Reviewed Score (1–100 scale) social, institutional, economic, health, education, Institutions 65.1 and services dimensions. The municipality dis- Infrastructure 57.7 plays high standards in short- and medium-term ICT adoption 60.2 planning, as well as in sustainable and environ- mentally friendly development actions and stra- Health 74.5 tegies. The canton is in proximity to ports and Skills and competence 44.4 airports and has low levels of traffic congestion. Economy 25.3 The main challenge lies in the provision of muni- cipal public services and infrastructure relating to Source: 2021 Cantonal Competitiveness Index. TABLE 4. Municipality of Aserrí, 2021 Cantonal Competitiveness Index, indicators reviewed Dimension Indicator Baseline data196 Score197 Social Capital Structural participation in municipal elections 74.2% 86.3 Current participation in municipal elections (in percentage points) 3.9 38.9 Fostering citizen participation promotion 66.7% 66.7 Municipal Strengthening E-Municipality 97.5% 97.2 Municipal self-monitoring 60.0% 50.0 Risk self-assessment 100% 100.0 Strength of planning 100% 100.0 Municipal Transparency Citizen budget transparency 100% 100.0 Information access 48.5% 49.9 Accounts 11.2% 14.4 Citizen participation 24.2% 34.4 Open government data 9.3% 10.9 Budgetary administration Per capita investment in community services ¢24,313 15.7 Per capita capital investment ¢24,424 8.1 Financial dependency on state transfers 30.5% 71.4 Transport Infrastructure Cantonal road network condition 57.1% 42.8 Average road network and traffic safety investment per km ¢4,479.723 26.5 Other transport infrastructure No 0.0 Service stations every 100 km of the road network 1.5 21.0 Continues > 195 The Cantonal Competitiveness Index reviews institutional conditions, infrastructure, health, skills and competencies, and economy and markets (6 Pillars), classifying the cantons as Exceptional, Competent, Emerging, Limited, or Deficient. 196 Baseline data is the original value in the indicator measurement (not applicable to dimension or pillar). Indicators have different units of measurement (colones, percentages, km, KwH, among others) according to the ICC, 2021. 197 According to ICC on a 1–100 scale. | ANNEXES 150 TABLE 4. Municipality of Aserrí, 2021 Cantonal Competitiveness Index, indicators reviewed (Continued) Dimension Indicator Baseline data196 Score197 Road connectivity Distance to airport (in km) 16.1 96.0 Distance to port (in km) 88.7 47.3 Average traffic delay (seconds per 100 m) 148 77.5 Highway congestion (annual traffic jams per 100 m) 176,163 97.0 Municipal public services Coverage of parks and beautification works 0.0% 0 Road and public areas clean-up service coverage 100% 100 Social infrastructure investment per capita 1 593 5.0 Built-up area growth Expansion of constructions 0.1% 1.5 Growth in housing built-up areas −0.4% 9.9 Growth in commercial built-up areas 3.5 33.3 Growth in an industrial built-up areas −1.0% 0.0 Growth in service built-up areas −1.0% 0.0 Source: Developed by authors, based on 2021 Cantonal Competitiveness Index. The municipality has a basic organizational 23.04 points, being the municipality that has structure, a tax administration service, a finan- made great strides in the assessment of IGM-2018. cial management area, a general administration department, an urban planning department The measurement of management capacity (Department of Urban and Rural Management), (Management Capacity Index [ICG], 2021) indica- and the Environmental Management Directorate, tes weaknesses in the identification and definition designed to provide SWM collection, municipal of financial resources in the short, medium, and water supply, cemetery, clean-up, and beautifica- long term according to the internal and external tion services. There are about 22 working pro- municipal institutional context. This circumstan- cesses, staffed by 158 employees working in the ce poses a risk to Aserrí's strategic planning and institution. financial management. Areas relating to the use of ICTs, human capital, and asset management are In the Municipal Management Index (2018) performing satisfactorily (category ‘Novice’ accor- Aserrí scored 66.06, putting it in Group C ding to ICG, 2021), but it is still important to among the municipalities with the smallest bud- strengthen risk identification, as well as medium- gets. The highest scoring axis is Institutional and long-term planning (Management Capacity Development and Management at 88.02 and the Index, Municipality of Aserrí, 2021). Leadership lowest scoring axis is Social Services Management and Institutional Culture, as well as Competencies at 32.25. The areas of improvement include cove- and Municipal Team in general, are key challenges rage of parks and beautification works, road and requiring further improvement. public area clean-up, and road management. The Municipality of Aserrí significantly improved its Concerning the provision of urban services, the performance regarding the IGM-2017; it grew Municipality of Aserrí is characterized by: ROAD Service CLEAN-UP Service Regulations in fees Average % Resource investment Service quality SERVICE delivered place Updated coverage Delinquency percentage evaluation Yes Yes No 100.00% 34.31% 10.00% No | ANNEXES 151 SOCIAL AND Communication Population Service COMPLEMENTARY Service Regulations Application channels Beneficiary served by social quality SERVICES delivered in place of funds updated update programs evaluation Yes Yes 93.17% Yes No Plans No overachieved EDUCATIONAL, Population served by CULTURAL, AND Service Regulations education, social, and Application of Communication Service quality SPORTS SERVICES delivered in place sports programs funds channels updated evaluation Yes No Plans overachieved 93.17% No No Simplified Fully Fully application automated automated Fully automated Service URBAN PLANNING Service Regulating process land-use building business quality SERVICES delivered Plan officer permitting permitting licensing evaluation Yes No Yes No No No No Works Works completed completed Service CANTONAL ROAD Service Regulations 5-year plan Multi-year with with quality quality NETWORK delivered in place in place projections supervision assurance evaluation Yes Yes Yes Yes 100.00% 52.17% No It is estimated that the Municipality of Aserrí GRAPH 2. Aserrí`s cantonal roads are in processes building permits approximately within fair or good condition 15 calendar days, issuing 252 in 2020. In the South Corridor, the Municipality of Aserrí is the only one that provides municipal water 19 29 supply services; it has water service regulations 31 in place, but water rates are outdated and do not include service evaluation systems. 98 93 Excellent Good Fair Poor Very poor Source: 2021 Municipal Service Management Index, Comptroller General of the Republic. | ANNEXES 152 Alajuelita TABLE 5. Municipality of Alajuelita performance by pillars reviewed under the 2021 Cantonal Competitiveness Index Alajuelita offers a safe environment for busi- ness, and low levels of traffic congestion, while a Cantonal Competitiveness, large proportion of students complete their secon- Dimension Reviewed Score (1–100 scale) dary education. Alajuelita has low investments in Institutions 65.1 infrastructure related to social works and services. Infrastructure 57.7 ICT adoption 60.2 The canton of Alajuelita has 5 districts and a total Health 74.5 population of 94,548 inhabitants, of whom 23 percent are between 0 and 14 years old, 70 percent Skills and competence 44.4 are between 15 and 64 years old, and 7 percent is Economy 25.3 over 65 years old. It ranks 59/82 in the Cantonal Competitiveness Index (2021),198 implying emer- Source: 2021 Cantonal Competitiveness Index. ging performance, affected by major challenges in economic, educational, and connectivity dimen- congestion levels, and a high proportion of stu- sions. Similar to the Municipality of Aserrí, dents complete their high school education. municipal resources are underinvested in public service infrastructure. Declining crime rates pro- The municipality has no accountability arrange- vide a safe environment for business, while it is ments, poor citizen participation, and inadequate located close to ports and airports, has low traffic access to information. TABLE 6. Municipality of Alajuelita, 2021 Cantonal Competitiveness Index, indicators reviewed Dimension Indicator Baseline data199 Score200 Social Capital Structural participation in municipal elections 80% 95.3 Current participation in municipal elections (in percentage points) 12.2 75.9 Fostering citizen participation promotion 66.7% 66.7 Municipal Strengthening E-Municipality 60.8% 55.8 Municipal self-monitoring 40.0% 25.0 Risk self-assessment 25.0% 0 Strength of planning 100% 100 Municipal Transparency Citizen budget transparency 100% 100.0 Information access 25.9% 26.6 Accounts 0.0% 0.0 Citizen participation 12.0% 17.0 Open government data 0.0%% 0.0 Budgetary administration Per capita investment in community services ¢11 100 4.8 Per capita capital investment ¢13 388 2.5 Financial dependency on state transfers 28.2% 73.7 Transport Infrastructure Cantonal road network condition 43.6% 23.5 Average road network and traffic safety investment per km ¢10,089,260 67.2 Other transport infrastructure No 0.0 Service stations every 100 km of the road network 2 28.0 Continues > 198 The Cantonal Competitiveness Index reviews institutional conditions, infrastructure, health, skills and competencies, and economy and markets (6 Pillars), classifying the cantons as Exceptional, Competent, Emerging, Limited, or Deficient. 199 Baseline data is the original value in the indicator measurement (not applicable to dimension or pillar). Indicators have different units of measurement (colones, percentages, km, KwH, among others) according to the ICC, 2021. 200 According to ICC on a 1–100 scale. | ANNEXES 153 TABLE 4. TABLE 6. Municipality of Alajuelita, 2021 Cantonal Competitiveness Index, indicators reviewed (Continued) Dimension Indicator Baseline data196 Score197 Road connectivity Distance to airport (in km) 9.9 97.9 Distance to port (in km) 81.4 51.7 Average traffic delay (seconds per 100 m) 139 82.8 Highway congestion (annual traffic jams per 100 m) 717,358 87.5 Municipal public services Coverage of parks and beautification works 0.0% 0.0 Road and public areas clean-up service coverage 93.7% 93.7 Social infrastructure investment per capita ¢1,105 3.5 Built-up area growth Expansion of constructions 0.9% 18.3 Growth in housing built-up areas −0.3% 10.9 Growth in commercial built-up areas −0.8% 1.1 Growth in an industrial built-up areas −1.0% 0.0 Growth in service built-up areas 3.0% 12.2 Source: Developed by authors, based on 2021 Cantonal Competitiveness Index. The Municipality of Alajuelita is a middle-deve- internal control, and road and public areas clean- lopment local government, ranked among the up. From 2017 to 2018, based on the Municipal municipalities with the smallest budgets nation- Management Index, the municipality had a slight wide (Group D as defined by the Comptroller improvement in comparison to the IGM-2017; General of the Republic). This municipality has it reflects a 2.09-point increase and has become made significant progress in economic service a partially compliant municipality (2/3) against management, scoring 76.10 points on a 1 to 100 its planned improvement outlined in the 2017 scale. Municipal Management Index. In general, the municipality is an institution By 2021, and according to the provision of urban that scored 62.35 out of 100, whose areas of services, 201 the Municipality of Alajuelita is a local improvement include parks and beautification, government that functions as follows: ROAD Service CLEAN-UP Service Regulations in fees Average % Resource investment Service quality SERVICE delivered place Updated coverage Delinquency percentage evaluation Yes NO NO 100.00% 41.38% 11.37% Yes SOCIAL AND Communication Population Service COMPLEMENTARY Service Regulations Application channels Beneficiary served by social quality SERVICES delivered in place of funds updated update programs evaluation Yes Yes 89.29% Yes NO Achieved as Yes planned EDUCATIONAL, Population served by CULTURAL, AND Service Regulations education, social, and Application of Communication Service quality SPORTS SERVICES delivered in place sports programs funds channels updated evaluation Yes Yes Achieved as planned 89.29% Yes Yes 201 2021 Municipal Service Management Index, Comptroller General of the Republic. | ANNEXES 154 Simplified Fully Fully application automated automated Fully automated Service URBAN PLANNING Service Regulating process land-use building business quality SERVICES delivered Plan officer permitting permitting licensing evaluation Yes No No Yes Yes Yes No Works Works completed completed Service CANTONAL ROAD Service Regulations 5-year plan Multi-year with with quality quality NETWORK delivered in place in place projections supervision assurance evaluation Yes No Yes Yes 100.00% 33.33% Yes In 2020, the municipality of Alajuelita issued 147 GRAPH 3. 44% of the road network in building permits, within one calendar day on ave- Alajuelita is in fair condition rage. Business license processing time is two days. Based on municipal data, the road network servi- ced by the municipality is 524 km. 19 44 39 Excellent Good Fair Poor Very poor Source: 2021 Municipal Service Management Index, Comptroller General of the Republic.