Latin American Business

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Latin American Business

• David J. Boggs, Ph.D.
• Central America

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Defining Central America

• Part of North America? South America?
• An isthmus between North and South America?
• Including Mexico? Parts of Mexico?
• Including Belize?
• Including Panama? Colombia? Venezuela?

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Central American Independence

• Belize 1982 United Kingdom
• Costa Rica 1821, 1838 Spain/Mexico
• El Salvador 1821, 1838 Spain/Mexico
• Guatemala 1821, 1838 Spain/Mexico
• Honduras 1821, 1838 Spain/Mexico
• Nicaragua 1821, 1838 Spain/Mexico
• Panama 1903 Colombia

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Central American History

• Breakup of Gran Colombia (1830)
• Breakaway of Central American Republic from
  Mexico (1823) and its own separation (1838)
• Panamanian independence from Colombia (1903)
• Belizean Independence from the U.K. (1981)

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USA Policy in the Americas

• The Monroe Doctrine (1823)
• Gunboat Diplomacy (1898-1929)
• Good Neighbor Policy (1929-1953)
• Cold War (1953-1989)
• Eisenhower, Kennedy, Johnson, Nixon, Ford,
  Carter, Reagan, Bush
• The 1990s and beyond

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USA-Central America Historical Relations

• Belize
• Costa Rica
• El Salvador
• Guatemala (1954 CIA supported coup)
• Honduras (1980s USA partner)
• Nicaragua (1912, 1980s)
• Panama (1903, 1989)

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USA-Central America Current Relations

• Tourism, Agriculture, Trade
• Immigration, immigrants, and money transfers
• DR-CAFTA
• Panama-USA Trade Agreement
• Poverty, and natural disasters

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Belize

• Ongoing border dispute with Guatemala
• Only primarily-English speaking country in
  Central America
• By far, the smallest and most diverse population
  in Central America population less than that
  between Skinker and the Mississippi River

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Costa Rica

• Only long-running stable democracy in Central
  America
• Strong tourist industry
• Substantial middle class
• Attempts to develop tech industries
• Primarily of European origin

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El Salvador

• 1980-1992 (12 years) internal war
• Leader in the breakaway of Central American
  countries from Mexico and in forming independence
• Many immigrants to USA from 1980s war

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Guatemala

• 1960-96 (36 years) internal war
• Recognized Belizes independence in 1990, but
  still has a border dispute with Belize
• Substantial Indian population

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Guatemala
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Guatemala
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Lake Atitlan, Guatemala
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Honduras

• Since independence, Honduras has been plagued
  with nearly 300 internal rebellions, civil wars,
  and changes of government -- more than half
  occurring since 1900.
• 1969 border war with El Salvador
• Close ally of the United States since the 1980s

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Nicaragua

• Following Samoza dictatorship a Marxist regime
  came to power in 1979
• Daniel Ortega, leftist president from 1985-90 ran
  for president again in 2001 and lost still
  trying to regain power
• Poorest of Central American nations

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Panama

• Only Spanish-speaking country of Central America
  that was part of Gran Colombia and the only one
  that was not a part of the United Provinces of
  Central America
• In 1999 took over operation of the Panama Canal
  from the United States

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Central American Social Conditions
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Central American Language
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Central American Religion
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Central American Ethnicity
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Country Size
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Central American Economies(Market Exchange
Rates, not PPP, 2005 Financial Times)
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Industry and Economic Activity

• Tourism
• Agriculture (coffee, bananas, citrus, sugar,
  fishing, livestock, etc.)
• Light manufacturing
• Some oil and oil refining
• Panama Canal activity and banking
• Intel in Costa Rica
• Some mining, construction, and cement

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Associations

• Central American Common Market (CACM) Includes
  5 Spanish-speaking Central American countries but
  not Belize. Panama is an observer. Becoming
  DR-CAFTA.
• Association of Caribbean States includes
  islands, Mexico, and Central and South American
  countries with Caribbean coasts.

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Questions

• Is it reasonable to expect long run stability in
  Central America? Where? Where not?
• Compare Central American countries with South
  American and Caribbean countries.