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Summary of OECD Review of Costa Rica's One-Stop Shop for Investment

Core Content

The OECD Review of Costa Rica's One-Stop Shop for Investment (VUI) is a comprehensive evaluation of the initiative's governance, effectiveness, and potential for improvement. The report is a collaboration between the Costa Rican Foreign Trade Promoter (PROCOMER) and the OECD, aiming to assess the VUI against OECD principles and international best practices in regulatory reform.

The VUI is an inter-institutional initiative led by PROCOMER, designed to simplify, digitise, and centralise the procedures required to set up and operate a business in Costa Rica. Initially developed for free trade zone procedures, it has since expanded to include all types of businesses, making it a critical tool for investment facilitation.

Main Objectives

• To document the history and operation of the VUI.
• To provide an impartial international evaluation of the VUI's current state.
• To identify achievements and successful practices.
• To identify gaps with respect to OECD principles and international best practices.
• To define recommendations to improve the VUI's performance and effectiveness.

Key Points

Strengths

• Strong Political Commitment: The VUI has received strong support from the government and relevant institutions.
• Proactive Leadership: PROCOMER has demonstrated clear leadership and a commitment to process improvement.
• Adequate Regulatory Foundation: A robust regulatory framework provides the legal basis for the VUI's operation.
• Significant Digitalisation: The platform includes essential digital tools such as a procedures registry, georeferenced maps, a payment engine, and digital file systems.

Challenges

• Coordination Issues: There is a need for improved coordination between PROCOMER and the Ministry of Economy, Industry, and Commerce (MEIC), particularly in aligning regulatory strategies and defining procedures consistently.
• Limited Municipal Representation: Municipalities are not directly represented in the VUI, limiting their influence in decision-making.
• Inconsistent Public Consultation Outcomes: While public consultations are conducted, they have not always resulted in fully satisfactory outcomes for stakeholders.
• Incomplete Digital Transformation: Not all processes are fully end-to-end digital. Digital signature adoption is low, and the inspection platform is still in early development.

Key Recommendations

• Improve Coordination: Establish formal coordination mechanisms between PROCOMER and MEIC to ensure alignment and consistency in regulatory strategies.
• Enhance Training: Develop training programs to equip officials with the skills necessary for efficient process simplification.
• Refine Strategic Planning: Define clear short-, medium-, and long-term objectives to structure VUI efforts effectively.
• Adopt a User-Centric Approach: Implement a “life event” model to simplify the business setup journey from the user's perspective.
• Strengthen Public Consultation: Systematically integrate stakeholder feedback into platform improvements.
• Increase Digital Adoption: Focus on improving digital signature adoption and developing a fully integrated end-to-end digital process.
• Enhance Communication: Launch targeted communication campaigns to raise awareness and encourage greater use of the VUI among businesses.
• Strengthen Institutional Cooperation: Promote better institutional cooperation and coordination to support the VUI's operations.

Context and Background

• Economic Overview: Costa Rica's economy is mixed, with a strong emphasis on the service sector, particularly tourism. The country has also focused on diversifying exports and attracting foreign direct investment (FDI), with technology and financial services playing a significant role.
• FDI Trends: In 2023, FDI reached USD 3.921 billion, a 24% increase from 2022. Approximately 61% of FDI corresponds to investments in the free trade zone regime.
• Government Structure: Costa Rica operates under a Presidential Republic with a single-chamber Legislative Assembly and an independent judicial branch. The VUI is integrated into the national government structure, with municipalities also playing a role.
• Regulatory Framework: The VUI is supported by Law 8220 (Article 16) and Executive Decree No. 40910-MP-MEIC, which outline the legal basis and objectives for regulatory improvement.

Conclusion

The VUI has made significant progress in simplifying and digitising investment procedures, gaining strong institutional support and expanding its reach. However, to fully realise its potential, it must continue to strengthen coordination, refine strategic planning, and increase digital transformation efforts. By addressing these areas, the VUI can enhance Costa Rica's investment climate and position the country as a leader in business facilitation.