Trade, Industrialization, and Integration in Twentieth-Century Central America

By Irma Tirado de Alonso | Go to book overview

10
ECONOMIC PROSPECTS FOR CENTRAL AMERICA IN THE DECADE OF THE 1990S

Raul Moncarz

Antonio Jorge


INTRODUCTION

One way to describe the forthcoming millennium for Central America is to say that the future will not to be very different from the present. Therefore, a continuance of the "income concentration with growth" strategy is expected. As a matter of fact, this is what the new economic order has come to mean in Central America. Growth is coming back to the region, but at a cost. At present, all other models are on hold--that is, the structuralist, stagnationist, dependency models and others--pending a new tomorrow.

By now it is generally well known and accepted that the essential condition for development is the undergoing of certain internal transformations. Even more important, however, is the recognition that the type of transformation required for development differs between countries and with each new circumstance or crisis.

The basic purpose of this chapter is to briefly describe the internal and external forces that are responsible for the current adjustment process in Central America and to discuss the effects that this transformation has had on the economy and society as a whole. There is no doubt that a new political and economic order has emerged in the 1980s, corresponding with the world's reaction to the new government in Nicaragua in 1979 and to the falling price of coffee, which was four times greater in 1978 than at present. There are some who see the new distribution of power, or its reaffirmation, in Central America as a more recent phenomenon, dating to the election of Violeta Chamorro as president of Nicaragua in 1990. Still others maintain that the new ordering dates to the collapse of the Soviet empire in Eastern Europe in 1989. Whatever the case may be, the world is a very different place today than it was a decade ago or even a few years ago.

The rapid demise of the Soviet Union brought an end to the old bipolar order that had prevailed in Central America and the rest of the world for nearly

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Trade, Industrialization, and Integration in Twentieth-Century Central America
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Illustrations vii
  • Preface xi
  • PART I INTRODUCTION 1
  • 1: CENTRAL AMERICA: THE CHALLENGES OF TRADE, INDUSTRIALIZATION, and INTEGRATION IN THE TWENTIETH CENTURY 3
  • 2: A MACROECONOMIC ASSESSMENT OF CENTRAL AMERICA 15
  • SUMMARY AND OVERVIEW 36
  • Note 36
  • PART II TRADE IN CENTRAL AMERICA 39
  • 3: THE STRUCTURE OF TRADE IN CENTRAL AMERICA 41
  • SUMMARY 58
  • Notes 59
  • References 59
  • 4: IDUSTRIALIZATION and TRADE IN CENTRAL AMERICA 61
  • Notes 85
  • References 85
  • 5: MEXICO AS A POTENTIAL MARKET FOR CENTRAL AMERICAN and CARIBBEAN PRODUCTS 87
  • Notes 98
  • PART III INDUSTRIALIZATION AND INTEGRATION IN CENTRAL AMERICA 101
  • 6: THE INTENSITY OF CENTRAL AMERICAN ECONOMIC INTEGRATION 103
  • CONCLUSIONS 111
  • Notes 113
  • Notes 114
  • 7: ASSEMBLY OPERATIONS IN CENTRAL AMERICA 117
  • References 149
  • 8: PANAMA: ECONOMIC INTEGRATION ALTERNATIVES, IMPLICATIONS, and PERSPECTIVES 153
  • Notes 178
  • References 179
  • 9: THE CENTRAL AMERICAN COMMON MARKET: AN ANALYSIS Of WELFARE EFFECTS FROM 1970 TO 1984 183
  • Conclusion 202
  • Notes 203
  • Notes 204
  • PART IV SPECIAL ISSUES 207
  • 10: ECONOMIC PROSPECTS FOR CENTRAL AMERICA IN THE DECADE OF THE 1990S 209
  • Notes 220
  • REFFERENCES 220
  • 11: A REVIEW OF ECONOMIC POLICIES and STRATEGIES FOR TRADE and INDUSTRIALIZATION IN CENTRAL AMERICA 223
  • CONCLUSION: WHERE TO FROM HERE? 232
  • References 235
  • 12: THE DILEMMA OF EXPORT RIVIVAL: NICARAGUAN AGRICULTURE AT A TURNING POINT 237
  • Notes 251
  • References 251
  • 13: CHALLENGES and PROSPECTS FOR CENTRAL AMERICA IN A GLOBAL TRADE CONTEXT 253
  • BIBLIOGRAPHICAL ESSAY 271
  • SELECTED BIBLIOGRAPHY 277
  • Index 279
  • ABOUT THE CONTRIBUTORS 289
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