ABSTRACT

The Economic Commission for Latin America encouraged nations of the region to restructure their economies, but it was recognized that economic development would be difficult without larger domestic markets. After World War II, the dream of Central American unity was revived in the guise of economic integration. The positive dynamics of regional economic integration had generated their own contradictions as the Honduran economy suffered excessive trade deficits. The geostrategic importance of Honduras in Central America had already been demonstrated during the 1969 border war and the disruption of the common market. The official position of the Honduran government was that the country was positively neutral in the regional conflict. International investment, financial and technical aid, and military training emerged as important factors in the shaping of Honduran institutions. Honduran international relations and its foreign policy remain oriented toward and influenced by the United States.