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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 102 / 153

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In terms of economic structural effects, the early years of the civil  war saw the urban and rural propertied classes unify and close ranks.

Almost any reform initiative came to be seen as an assault on property rights and the existing structure of privilege.

As the military assumed more and more control, this group began to aspire to be the propertied classes’ partners rather than merely their instrument.

As the situation spiraled downward, Jimmy Carter cut off military aid in the late 70s on the principled grounds of human rights violations. This created a gap between the North Americans and the Guatemalan military that was never fully closed by subsequent US administrations.

Costa Rica had matured into a stable yet conservative nation since the 1948 civil war.

[1] Important development: the export agriculture elite feared the CACM would inhibit free trade and evolve into an ISI protectionist system, diverting resources away from their deployment in the export sector.

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