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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 126 / 153

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[4] This kept the military at the center of society and in return for US aid, the government permitted Contra guerrilla training camps near the Nicaraguan border.

[5] When Reagan’s Nicaraguan strategy began to unwind, the National Party assumed the presidency (Rafael Leonardo Callejas). His first year in office was marked by the largest land invasion in Honduran history and major strikes.

[6] Civil disobedience continued in the early 1990s and the military responded. The Honduran civil rights record deteriorated yet the military restored order and began to back out of the institutions of civil society.

Costa Rica…

[1] 1982 to 1986 was an economically difficult time for the country due to debt and a global recession.

[2] Oscar Arias assumed the presidency in 1986 yet was hampered by the debt overhang and an expensive system of social services.

[3] He implemented an IMF-sponsored structural adjustment program that resulted in additional hardships to the people.

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