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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 105 / 153

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Note: The Salvadoran military government had less independence from the propertied classes, who did not rule but maintained and effective veto over all economic policy.

Honduras…

Military at zenith of influence after Soccer War of ’69… hostile toward El Salvador… pulled out of CACM and quickly made bilateral trade deals with all countries in region except El Salvador.

The war with El Salvador was economically disruptive and led to popular agitation… hard to keep the players and events straight since the sociopolitical environment had become so unstable.

Despite this, the decade of the ’70s was one of significant industrial growth, of land reform that directly benefited 10% of the rural population, a social security program covering 30% of the economically active population, and substantial improvements in health and education.

In general, despite the use of repression during this time, Honduran politics were closer to Costa Rica than Guatemala.

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