This paper analyzes natural resource management initiatives and environmental dilemmas in Costa Rica and derives lessons pertinent to developing countries in general. It is recognized that Costa Rica has a reputation of having “successful”; environmental policies and has made progress in conservation efforts; however, it is argued that the initiatives and policies actually have constraints and weaknesses, including failure to address the political and economic roots of the problems, insufficient attention to the environmental needs of the poor, and perpetuation of the domination of foreign interests. Moreover, resource degradation problems have accelerated. Using a political ecology approach, this analysis reveals contradictions in prevailing strategies. Alternative actions and social/human/ecological orientations are suggested, emphasizing the need for major political changes.