Political Economy of Central America from 1840 to 2019
Central American history is a tale of two economies: one founded on food security and community; the other on amassing private fortunes. Peasant prosperity depends on access to land, forests, and local markets; business prosperity depends on land, labor, capital, and global markets. State institutions mediate between acquisitive business elites and peasant communities, which defend territory. From 1840 to 1900, elites fought between themselves and peasant communities as they built national governments and a coffee export economy. From 1900 to 1929, the United States formed strategic alliances supporting militaries and big business, including US fruit companies. Global Depression and World War II shocked the system. US Cold War strategies fed militaries and business at the expense of peasant economies, provoking peasant uprisings (1970s) and US intervention (1979–1989). Peace Accords (1990s) reduced militaries, but private security forces increased (1990s–2019), especially in the Northern Triangle, where business expansion produced caravans of migrants fleeing violence.