Volume XXI — Number II
Pedro Abelardo Delgado
Abstract:
For nearly the last decade, Central America has been registering on the political Richter Scale. The impetus of revolution has been an economic crisis, and populations plagued by limited production and consumption, lowered salaries, sky-high inflation, and rising unemployment have reached a breaking point. Since the economies of individual countries in Central America are weaker, the Central American Common Market was created to strengthen them through cooperation. It was the goal for the Common Market to transition these economies from primary producers to exporters of competitive products . However, the economies are still unable to produce goods cheaper than those being imported. Central American industrialists opposed locally-sourced materials, claiming the increased costs would hinder progress in the market. While politics and economics are two distinct schools of thought, their confluence is seen in Central America today. Economic instability breeds uncertainty, and a restive populace seeks political upheaval. For smaller nations to establish themselves as players in the global common market, cooperation is vital. Central America cannot afford to block foreign investment, nor can they withstand a revolution at the hands of a neglected workforce. This article intertwines the economic and political realities of Central America, explains the effects of economic inequality on civil unrest, and emphasizes the importance of integration.
Keywords: Central America, common market, economies of scale
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