ABSTRACT
Central America consists of a number of small states with internal economic, social, and political structures that have been heavily influenced by their extreme dependence of a limited range of agrarian export products—mostly bananas and coffee. Coffee exports account for one-quarter of the foreign trade income of the region. In the late 1950s, the Central American countries decided upon an alternative model of development. Its central element involved the establishment of import substituting industries in combination with a project of regional integration and the creation of a common market. In addition to typical developmental problems, the Central American countries have to cope with the disadvantage of the small size of their internal markets. In the wake of the neoliberal offensive, there was certainly no lack of recommendations for revitalizing and restructuring Central American economic integration. Public opinion surveys in Central America confirmed that economic cooperation is generally considered to be necessary and desirable.
