74-21,984 ORTEGA, Herbert Hernando, 1936- SAN JOSE, COSTA RICA LOCAL GOVERMEHT: DEMAHDS AND DECISIONS. The University of Oklahoma, Ph.D., 1974 Political Science, public administration University Microfilms, A XEROX Company, Ann Arbor, Michigan © 1974 HERBERT HERNANDO ORTEGA ALL RIGHTS RESERVED THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED. THE UNIVERSITY OF OKLAHOMA GRADUATE COLLEGE SAN JOSE, COSTA RICA LOCAL GOVERNMENT: DEMANDS AND DECISIONS A DISSERTATION SUBMITTED TO THE GRADUATE FACULTY in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY BY HERBERT HERNANDO ORTEGA Norman, Oklahoma 1974 SAN JOSE, COSTA RICA LOCAL GOVERNMENT: DEMANDS AND DECISIONS APPROVED &y DISSERTATION COMMITTEE ACKNOWLEDGEMENT Many years ago, when I used to v is it Costa Rica frequently, I came to know its beauty and its people. This dissertation is dedicated to them. The number of people who have supported and guided me in this effort is great, and because of space limitations, I can only name a few. I sincerely thank Dr. Richard D. Baker, Major Professor, for giving so generously of his time and fo r his e ffo rts in providing guidance and direction to this research. To the faculty of the Political Science Department of the University of Oklahoma, fo r creating an environment which my years of study very enjoyable and most rewarding, I am grateful. In p a rtic u la r, my thanks to Dr. Hugh G. Macniven, Dr. Walter F. Scheffer, Dr. Stephen S. Sloan, and Dr. Paul A. Tharp. To Marcia, my w ife, who worked with me on almost every phase of this work, including many drafts and the final copy, I am especially indebted. I must mention my sons, Carlos and Mario, who have understood why we have not been able to spend as much time together during the la s t couple of years. m TABLE OF CONTENTS Page ACKNOWLEDGEMENTS...................................................................................... i ü LIST OF TABLES.......................................................................................... v ii LIST OF DIAGRAMS...................................................................................... ix LIST OF GRAPHS.......................................................................................... x INTRODUCTION ............................................................................................... xi Chapter I . ECONOMIC AND SOCIAL CONSIDERATIONS ..................................... 1 Introduction .................................................................................. 1 General Facts .............................................................................. 2 Costa Rica in N um bers .............................................................. 11 The Urban Phenomenon .................................................................. 18 Agriculture .................................................................................. 20 In d u s try.......................................................................................... 26 The Central American Common Market ..................................... 27 The P o litic a l System .................................................................. 39 I I . MAJOR DETERMINANTS OF MUNICIPAL PERFORMANCE ................. 41 Introduction .................................................................................. 41 General Background of the Municipal Council ..................... 54 Municipal Code .............................................................................. 44 B u d g e t ............................................................................................ 59 IV Chapter Page I I I . THEORETICAL FRAMEWORKD AND ANALYSIS OF DEMANDS AND DECISIONS.......................................................... 86 Introduction .................................................................................. 86 Theoretical Concepts .................................................................. 86 Interest Groups .......................................................................... 89 Business Groups ...................................................................... 90 Religious Groups .................................................................. 91 Professional Groups .............................................................. 91 Labor Groups ............................................................................ 92 P o litic a l Groups .............................................................. 92 David Easton - In p u t/O u tp u t .................................................. 94 Almond and Powell ...................................................................... 96 Fred W. Riggs, The "Sala" Model ....... ....................................... 102 Economic Development .................................................................. 104 Organization Theory .................................................................. 106 Institution Building Model ............................................. 110 Characteristics of the P o litic a l Process ............................ 116 IV. INSTITUTO DE FOMENTO Y ASESORIA MUNICIPAL (IFAM) . 135 Introduction ................................................................................... 135 Objectives of the IFAM .............................................................. 136 Functional Organization of the IFAM ................................. 137 Financial Resources of the IF A M ......................................... 142 Functions of the In stitu te ...................................................... 143 The IFAM and the Municipal Council ..................................... 151 C hapter Page V. CONCLUSIONS.......................................................................... 154 Hypothesis 1 ...................................................................... 155 Hypothesis 2 ...................................................................... 156 Hypothesis 3 ...................................................................... 158 Hypothesis 4 ...................................................................... 159 Hvoothesis 5 ...................................................................... 150 Prospects for the Future ................................................. 162 APPENDIXES....................................................................................... 164 BIBLIOGRAPHY ................................................................................... 309 VI LIS T OF TABLES TABLE Page 1. Latin America: Trend of the Gross Domestic Product at Market Prices, 1950-1970 ................................. 5 2. Latin America: Breakdown of Countries According to Growth R a te ........................................................ 6 3. Latin America: Population Growth, by Country .... 7 4. Latin America: Planning Office Targets for the Growth Rate of the Gross Domestic Product ..................... 8 5. Latin America: Breakdown of Countries by Rates of Population Growth .................................................. 8 6 . D istribution of the Population of Costa Rica in Three Great Age Groups, June 30, 1963 14 7. Economically Active Population by Economic Sectors and Occupational Groups: 1967 ............................. 15 8 . Latin America: Changes in the Relative Share of the Sectors in Total Employment, 1960 and 1969 . 16 9. Latin America: Breakdown of Countries by Rates of Urban Population Growth ........................................ 19 10. Latin America: Share of the Agricultural Factor in the Total Production ............................................ 20 11. Dates of Enactment of Land R e fo r m ..................................... 24 12. Latin America: Trend of A gricultural Production . 24 13. Global Value of Agricultural Production Prices Paid by the P roducer ................................................................ 25 14. Percentage Composition o f the Value of Agricultural Production ........................................................ 26 15. Latin America: Changes in the Relative Share of the Factors in the Total Production, 1960 and 1969 28 16. Gross Industrial Production Estimates, 1963-1972 . 30 v i i TABLE Page 17. Source and Application of the Funds Necessary to Finance Industrial Projects Investments fo r the period 1969-1972 .......................................................... 31 18. FOB Value of Export of Goods ................................................... 33 19. Commerce with Central America ............................................... 34 20. Latin America: Trend of Manufacturing Production...................................................................................... 37 21. Latin America: Rates of Industrial Growth ...................... 38 22. Per Capita Tributary Income (1971) .............................. 146 v m LIST OF GRAPHS GRAPH Page 1. Percentage D istribution of Population by Sex, Age Groups — Costa Rica 13 IX LIST OF DIAGRAMS DIAGRAM Page 1. Organization Chart of the Municipal Council ................. 45 2. Exchanges Between the P o litic a l System and the Total Environment .................................................................... 97 3. A Dynamic Response Model of a P o litic a l System ................................................................................................... 99 4. A Simplified Model of a Political System ..................... 100 5. Organization Chart of IFA M .................................................. 138 INTRODUCTION This study addresses the subject