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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 122 / 153

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The Contras did not win the hearts and minds of the Nicaraguan people due to their random and brutal tactics. After the Iran-Contra scandal, the US Congress moved to control financial support to the group.

Finally, at the imitative of President Oscar Arias of Costa Rica. A regional peace plan known as Esquipulas II was signed by all five of the Central American governments in 1987. Set in motion the gradual reduction of violence in both Nicaragua and El Salvador.

Guatemala (1980s)…

[1] Only after 1983 were the military interested in holding a controlled election in order to receive US foreign aid.

[2] Vinicio Cerezo (Democracia Cristiana Guatemalteca – DCG won)… he investigated the military and initiated a national dialogue on land reform. Still, he was hemmed in by the military.

[3] This was the period when serious drug money began to course into the region from Columbia which involved government officials and military officers.

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