This case study analyses the evolution of the national forest control system in Costa Rica. Costa Rica has a land area of 5 million hectares, with 63% of its territory potentially under forest cover. However, only 40-46% of the national territory is covered with forests owing to deforestation, fueled by aggressive agricultural policies which promoted monocultures oriented to international markets. It is estimated that between 22-31% of the timber supply is illegally harvested. Forest loss to other competitive land uses continues due to high transaction costs and excessive regulations.