Costa Rica has granted legal recognition to the Social Solidarity Economy (ESS) sector with the publication of Law No. 10857 on March 12, according to a statement released on March 18. The new law marks the first time that ESS receives explicit legal status as a strategic sector for national development.
The move is significant because it addresses a longstanding gap in Costa Rican law, where organizations such as cooperatives, solidarist associations, productive associations, foundations, cantonal agricultural centers, and ASADAS operated under various legal forms but lacked unified recognition. The law now provides an integrated framework for these entities and strengthens their role in promoting inclusive and sustainable economic growth.
The legislation also enhances the Ministry of Labor and Social Security’s responsibilities by consolidating the Directorate of Social Solidarity Economy as the technical body in charge of certifying organizations and generating strategic information through a sectoral observatory. It further expands opportunities for ESS organizations by improving access to financing, seed capital, and public procurement processes.
According to the ministry’s statement, several initiatives have already supported this sector prior to the law’s approval. These include establishing an observatory for specialized data analysis, Costa Rica’s co-sponsorship of a United Nations resolution on social solidarity economy in 2023, integration into the Ibero-American Network for ESS promotion, record execution of PRONAMYPE program funds in 2025 benefiting more people than in previous years, increased visibility through fairs attracting over 17,000 visitors since 2023, expanded access to social banking programs with record certifications in 2025 allowing 81 organizations to receive funding from Banco Popular y de Desarrollo Comunal, and investments exceeding 8.6 billion colones supporting ESS ventures during this administration.
Minister of Labor and Social Security Andrés Romero said: “esta Ley potencia las acciones que, desde hace varios años, hemos venido desarrollando para dar más fortaleza y músculo a este sector que potencia y da herramientas a las personas emprendedoras y a las organizaciones de la economía social de nuestro país”.
Romero added that “La aprobación de esta ley no solo brinda respaldo jurídico y rango legal a un sector históricamente relevante, sino que también consolida una ruta de trabajo que el país ya venía impulsando”. He concluded that with this step forward Costa Rica positions ESS as a strategic pillar for job creation, economic inclusion and territorial development.
