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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 123 / 153

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[4] Military permitted elections again in 1989… yet the civil war was still going on.

El Salvador…

[1] Electoral situation was similar to that of Guatemala.

[2] While the Guatemalan civil war had racial overtones, the civil war in El Salvador was more clearly a class war: the dispossessed against the privileged.

[3] Given the ideological leanings of the guerilla groups in the countryside (communists), the US supported the right (the privileged) and came to provide the El Salvadoran government with half of its budget.

[4] ARENA dominated right-wing politics and developed a platform that was neoliberal pro-business. It stressed reduced government intervention in the economy yet was open to negotiating social reform.

[5] With the help of the UN, ARENA, under Alfredo Cristiani, worked out an acceptable peace agreement with the guerillas in 1989.

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