History of Central America

Despite the failure of a lasting political union, the concept of Central American reunification, though lacking enthusiasm from the leaders of the individual countries, rises from time to time. In 1856–1857 the region successfully established a military coalition to repel an invasion by United States adventurer William Walker. Today, all five nations fly flags that retain the old federal motif of two outer blue bands bounding an inner white stripe. (Costa Rica, traditionally the least committed of the five to regional integration, modified its flag significantly in 1848 by darkening the blue and adding a double-wide inner red band, in honor of the French tricolor).

In 1907, a Central American Court of Justice was created. On December 13, 1960, Guatemala, El Salvador, Honduras, and Nicaragua established the Central American Common Market ("CACM"). Costa Rica, because of its relative economic prosperity and political stability, chose not to participate in the CACM. The goals for the CACM were to create greater political unification and success of import substitution industrialization policies. The project was an immediate economic success, but was abandoned after the 1969 "Football War" between El Salvador and Honduras. A Central American Parliament has operated, as a purely advisory body, since 1991. Costa Rica has repeatedly declined invitations to join the regional parliament, which seats deputies from the four other former members of the Union, as well as from Panama and the Dominican Republic.