Central American Economy
In this paper, I will discuss about Central American economy using dependency theory. I will talk about the problems of being heavily dependent on traditional agricultural exports and maquila industry exports to the United States. Then I will suggests an alternative to export oriented economic development model. I will briefly go through Central American history and current situation, listing some problems and potential problems. To emphasize the problems, I will talk about my own experiences in Costa Rica, using "Garan" to explain maquila factory. Then I will suggest some alternative models of growth and suggest what is needed to be done. For comparison, I used Central America's data and Japan's data. Because Japan is a small country with limited resources, similar to Central American countries, Central America can learn a lot from Japan. Also I included some opinions and information from a person from the area. Central America is a region relatively untouched by the United States and other developed countries. Still its development is heavily influenced by the United States because to achieve the rapid development, Central America needs to listen to other developed countries or they would not receive any ai
Working environment was relatively nice, but there were still a lot of room for improvements. Only the upper income people are aware of economic situation and interested in global news. Dependence is on both demand and supply side. In the cities, occupations are very limited. CACM had certain problems to overcome. Compared to Japan's export they are very high and Japan has a very high export level because of limited resource. History of Central AmericaWhen talking about Central America, the countries included are Nicaragua, Honduras, El Salvador, Guatemala, and Costa Rica. Even as a unit, the five countries had a purchasing power less than the city of San Francisco. Coffee and Banana have limit to the growth and their demands are not consistent. New industries should be started by government and handed out to private sector when they become fairly competitive and self sustainable. By shrinking the export and import of agricultural goods, by developing large farms for domestic consumption, more balanced development can be achieved. When one of each crops are damaged or demand declines, the economy is influenced greatly. In the 50s to 70s, their economy was based on cash crops such as coffee, banana, sugar, and cotton. Domestic MarketDomestic market of Central American countries are very weak. Maquila industry is the rising industry, supposedly the cure to its economic stagnation.
Common topics in this essay:
Central America,
Central American,
Costa Rica,
Dependency Theory,
Agroindustry Agroindustry,
Costa Rican,
Market Improvement,
Trade Zone,
World Bank,
English Literacy,
central america,
central american,
costa rica,
maquila industry,
el salvador,
central american countries,
american countries,
domestic consumption,
global market,
free trade,
trade zone,
free trade zone,
america common market,
central america common,
central american economy,
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