In 1994, Costa Rica's new minister of the environment, René Castro, faced a difficult task. The finance ministry was planning to cut the funding of a subsidy program that had started to reverse decades of forest loss, and Castro urgently needed a new policy that would sustain the program's progress. First, Castro built a broad-based coalition to press for a revamped national forestry law. The coalition persuaded the legislature to ban the conversion of forested land to other uses and to create incentives for landholder compliance. In 1997, Costa Rica implemented the world's first countrywide payments for environmental services program, which recognized the continuing economic contribution of forests in terms of greenhouse gas mitigation, biodiversity conservation, water protection, and scenic beauty. Funded by a new fossil fuel tax, carbon credit sales, and money from companies that benefited from the forests, the program offered landowners financial incentives to preserve and expand tree cover on their properties. The program helped reduce the destruction of primary forest and encouraged reforestation of degraded land. From 1997 to 2005 Costa Rica's forest cover increased to 51% of total land area from 42%.

Blair Cameron drafted this case study based on interviews conducted in Costa Rica in December 2014. The case was funded by the Norwegian Agency for Development Cooperation in collaboration with the Science, Technology, and Environmental Policy program of the Woodrow Wilson School of Public and International Affairs. Case published July 2015.

Inaugurated as mayor of Medellín at the beginning of 2004, Sergio Fajardo inherited a city roiled by decades of violence and corruption. During his four years in office, the charismatic former university professor turned Medellín around. He broke up clientelistic political networks, raised tax receipts, improved public services, introduced transparency fairs, established civic pacts, and restored citizens’ sense of hope. Fajardo left office at the end of 2007 with an unprecedented approval rating of nearly 90%. Though Medellín still faced significant challenges, the city was later identified as an exemplary case of good public administration by cities across Latin America and the Inter-American Development Bank. By 2010, Fajardo had been named the vice-presidential running mate of former Bogotá mayor Antanas Mockus in that year’s presidential elections.