The Central American isthmus was under Spanish colonial rule for approximately three centuries (ca. 1502–1821). Known interchangeably as the kingdom, audiencia, or captaincy-general of Guatemala, the region occupied territory that would later become the republics of Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica, plus the state of Chiapas, Mexico. Unlike New Spain and Peru, Central America did not possess great mineral wealth, but its location between the Atlantic and Pacific Oceans made it an important strategic asset. As did other parts of Spain’s overseas empire, Central America presented challenges of governance and defense. During the Habsburg era (to 1700), the colonial state took shape organically, drawing upon existing peninsular models within a framework of collaboration between the monarchy and local allies, including colonial and indigenous elites and the Roman Catholic Church. This system was not elegant, but it worked as long as authorities in Spain were willing to accept a degree of corruption and inefficiency in public administration. Under the Bourbons (1700–1821), Spain’s new rulers undertook an ambitious program of reforms meant to correct the weaknesses of the old system, while promoting economic growth, strengthening defenses, and enhancing revenues. Judged by their own standards, the Bourbon Reforms registered some successes, but they also bred disaffection. The eventual cost became apparent when the traditional allegiances forged in the Habsburg era dissolved under the pressure of constant warfare, and especially the 1808 Napoleonic invasion of Spain, which precipitated the empire-wide independence crisis.
