decentralized systems (especially Ostrom 1990, 1992; also Agrawal 2000; Alaerts 1999; Blomquist and Schlager 1999; Bromley 1999; Easter and Hearne 1993; Wunsch 1991). Our information gathering and analysis focuses on the following sets of variables.

- Contextual factors and initial conditions

- Characteristics of the decentralization process

- Characteristics of central government/basin-level relationships and capacities

- The internal configuration of basin-level institutional arrangements

- Motivation of stakeholders

Variables considered within each set are listed in Appendix 1. The Tárcoles Basin case is discussed in terms of these categories and variables in Section 8.

# **3. Methodology**

A case study approach was pursued for this project in order to examine closely the processes of institutional change as well as the current situation. An expert in water policy and management affairs in Costa Rica facilitated the site visit, arranging interviews and preparing a background paper on the basin prior to the visit (Ballestero 2003). Background papers for all case study visits are based on a common outline. During the site visit, team members met with and interviewed a range of individuals, including basinlevel stakeholders, past and current central and local government officials, past and current basin commission staff and members, and academic researchers with perspectives on governmental structure and water management in Costa Rica.<sup>2</sup> The semi-structured interviews were conducted with a view to understanding the processes of institutional origin and change within the Tárcoles basin, the incentives of different stakeholders related to such change, and the performance of water management institutions at subbasin, basin, and national scales, matters that were closely within the knowledge of the interviewees. After the visit, team members combined their notes from the interviews, revisited and revised the basin background paper, reviewed other materials, and composed this summary and analysis of the river basin management situation in the Tárcoles basin.

The following analysis of the Tárcoles basin case is therefore based on a combination of sources—documentary materials on Costa Rica and the Tárcoles basin, the background paper prepared for the visit, and the interviews conducted during the site visit. The findings and conclusions therefore do not represent the point of view of a single individual or organization, but emerge from a composite of data collected and reviewed by the research project team.

> 2 Organizations from which individuals were interviewed are the Tárcoles River Basin Commission, the Costa Rican National Assembly, the Costa Rican Ministry of Environment and Energy, Department of National Waters, Institute of Aqueducts and Sewers, the Institute of Electricity, National Power and Light Company, Institute for Municipal Promotion and Assistance, the National System of Conservation Areas, the State of the Nation Project, the Central American Commission for Environment and Development, the InterAmerican Development Bank, the Center for Environment and Natural Resources, the Association of Private Electricity Companies, the National Chamber of Livestock Producers, the municipalities of San José and Belén, the University of Costa Rica, the National University of Costa Rica, and the Florida Bebidas corporation.

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