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AN ECONOMIC EVALUATION OF THE BENEFICIO SYSTEM OF COFFEE CREDIT DELIVERY, AND THE ALLOCATION OF NATIONAL FUNDS TO THE COFFEE SUBSECTOR OF COSTA RICA
Abstract
This study evaluated the beneficio system of coffee credit delivery and the allocation of national funds to the coffee subsector of Costa Rica. The objectives were to: describe the functions of the beneficio, evaluate the transaction costs of the beneficio credit delivery system, analyze the allocation of credit to the coffee subsector, and examine the transferability of the beneficio system to other developing countries. The involvement of the beneficio in the financing, processing, and marketing of coffee was the primary reason for the low borrower transaction costs and the high level of loan repayment calculated for the coffee credit delivery system in Costa Rica. Comparing the transaction costs of the coffee credit delivery system with the transaction costs of credit delivery systems in other countries demonstrated that the main beneficiaries of the credit delivery system in Costa Rica were the producer-borrowers. The high rate of participation by small- and medium-sized producers demonstrated their overall acceptance of the credit delivery system. Based on a sample of five beneficios and coffee-related national accounts data, the study concluded that the economic contributions to the Costa Rican economy of coffee activities financed through the beneficio system justified the usage of national funds for coffee credit. Estimates indicated the coffee credit delivery system performed at an acceptable level of efficiency and equity. The beneficio system of coffee credit delivery has the potential to be a highly effective coffee credit delivery system for small-sized producers. The beneficio system of credit delivery is transferable if the commodity produced is marketed under strictly controlled arrangements such as coffee in Costa Rica. The social, economic, and political context within which this multi-functional system operates also needs to approximate conditions in Costa Rica. Attempts to transfer the beneficio system of coffee credit delivery without being cognizant of the milieu in which it operates increases the risk of failure.
Subject Area
Agricultural economics
Recommended Citation
MORRIS, GAYLE ANN WOODCOCK, "AN ECONOMIC EVALUATION OF THE BENEFICIO SYSTEM OF COFFEE CREDIT DELIVERY, AND THE ALLOCATION OF NATIONAL FUNDS TO THE COFFEE SUBSECTOR OF COSTA RICA" (1981). ETD collection for University of Nebraska-Lincoln. AAI8227030.
https://digitalcommons.unl.edu/dissertations/AAI8227030