Central America

Central America is a region located on the isthmus that connects the North American continent to the South American continent. The region includes the countries of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.

Central America is bordered by Mexico to the north and Colombia to the southeast. Its eastern boarder touches the Caribbean Sea, and the western border touches the Pacific Ocean. The region covers approximately 202,000 square miles, according to the CIA’s World Factbook figures. The Population Reference Bureau (PRB) gave the population of Central America in 2015 as nearly 46.5 million people, making it the smallest population region in the Americas. Guatemala is Central America’s most populous country, with approximately 16.2 million people according to PRB’s 2015 estimates. Guatemala is also the second largest country in area, covering about 67,660 square miles. Honduras is the largest country in the region, covering nearly 70,000 square miles in total area. Honduras is also the second most populous country in the region, and it is home to approximately 8.3 million people. By comparison, the country of Belize is tiny—both in area and population. Belize only covers about 14,000 square miles, and it has a population of around four-hundred thousand people.

The countries of Central America have long been involved in territorial disputes, beginning with the colonization of the region by the Spanish in the 1500s. The region was the site of some of the first European influences in the New World. Central America is notable for its incredible biodiversity.

Historical Perspective

Before Christopher Columbus and other European explorers arrived in the Americas, indigenous people inhabited Central America. The most prominent indigenous groups in the region were the Aztecs and the Mayans, who had both built substantial and sophisticated empires throughout the area. However, after the Spanish arrived in the late fifteenth century, the Spanish crown sought to gain control of the area. Conquests of the vast Mayan and Aztec kingdoms began in 1523, most of which were spearheaded by the Spanish conquistador, Pedro de Alvarado. Most of the Mayan kingdoms were defeated by 1528, but conquests would continue until the final Mayan people were brought down in 1697. In 1609, Spain established the Captaincy General of Guatemala, which encompassed all of the modern-day Central American countries except for Panama and Belize. The captaincy lasted for over two hundred years, until civil unrest began to increase in the early 1800s.

In 1821, the signing of the Act of Independence of Central America officially freed the region from the Spanish Empire. In 1823, the provinces of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua established the Federal Republic of Central America—a representative democracy. However, civil wars soon erupted, and in 1838, the republic was dissolved. That same year, Costa Rica, Guatemala, Honduras, and Nicaragua all declared their own independence. El Salvador followed shortly thereafter—in 1841. Panama was long linked to the viceroyalties of both Peru and New Granada, and it finally became its own independent nation in 1903. Control of Belize remained unsettled for many years. The focus of constant territorial disputes, it briefly existed as a territory of Guatemala before becoming a colony of the British in 1862. It then became British Honduras and finally gained independence in 1981.

Geography and Climate

Central America is an isthmus that is surrounded by the Pacific Ocean, Caribbean Sea, and Gulf of Mexico. The region is home to many mountain ranges, including the Cordillera de Talamanca on the Costa Rican and Panamanian border, as well as the Sierra Madre de Chiapas in Guatemala. At nearly 14,000 feet, the Volcán Tajumulco is both the tallest mountain in the Sierra Madre de Chiapas mountain chain and also the highest point in all of Central America. Additionally, much of the region is located on the Caribbean Plate, an oceanic tectonic plate, as well as over the Middle America Trench in the Pacific Ocean. This trench has been responsible for many of the earthquakes that have occurred in Central America. Due to the mountainous nature of the Central American geography, many valleys exist. The soil in these areas is quite fertile due to volcanic activity, making the valleys a major site for agriculture. Valleys are areas where the people farm coffee beans and tobacco as well as raise livestock. Additionally, the populations of many Central American countries are concentrated in valleys. The climate of Central America, which is greatly influenced by trade winds, can be divided into two seasons—rainy and dry. In the rainy season, temperatures are highest, and in the dry winters, temperatures reach cooler levels.

Central America is unique in its biodiversity, and it is considered to be a biodiversity hotspot. The region contains 7 percent of the entire planet’s biodiversity, much of which is located in Costa Rica. Central America, part of the Pacific Flyway, a major route for migratory birds, is a place where especially large numbers of bird species can be seen during the spring and autumn months. Many natural areas of biodiversity in Central America are increasingly being threatened by deforestation and the conversion of areas containing natural vegetation into agricultural farmlands. In order to protect these regions, organizations have started implementing conservation measures. Much of Belize benefits from these measures, with nearly 40 percent of the country’s land territory under protected status.

Economy

The economies of Central American countries have historically relied heavily upon the exportation of agricultural goods, including coffee and bananas. Efforts have been made to diversify Central American economies, with expansions in the preexisting food and textile industries. Guatemala possesses the region’s largest economy, and the country mainly relies on its services industries. It also relies to a large extent on trade with the United States, with almost 40 percent of the country’s exports traveling to its North American neighbor. Panama’s service sector makes up more than 75 percent of the country’s gross domestic product (GDP), and the country has been a crucial site of trade since the construction of the Panama Canal in 1914. In order to help grow the economies of Central American countries, the Central American-Domincan Republic Free Trade Agreement (CAFTA-DR) was created. CAFTA-DR, ratified in 2004, has promoted free trade between the United States, the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

Despite all of these efforts, however, most countries in Central America still suffer from unequal wealth distribution. Nicaragua is by far the poorest country in Central America, followed by El Salvador. Both Guatemala and Honduras have extremely large gaps in income distribution—with more than 50 percent each country’s populations living below the poverty line. The indigenous population of Guatemala suffers the worst, with 73 percent of all indigenous people living below the poverty line and 22 percent of that same group living in extreme poverty.

By contrast, Costa Rica enjoys a standard of living that none of the other Central American countries enjoy. Much of this economic strength is the result of the Costa Rican government’s decision to put 20 percent of the annual GDP into social programs such as education and health care. As a result, Costa Rica is a popular point of immigration in Central America. Additionally, Costa Rica’s impressive biodiversity makes it a popular tourist destination.

Demographics

The countries of Central America are relatively urbanized. Costa Rica is the most urbanized, with more than three-quarters of the country living in urban areas (nearly 25 percent of these people live in the country’s capital, San Jose). Although El Salvador is technically the smallest Central American country, it is also the most densely populated area in the entire region. Spanish is the official language of all countries in Central America, with the exception of Belize, whose official language is English. In addition to speaking Spanish and English, many people speak Mayan languages. In Guatemala, 40 percent of the population speaks one of twenty-six indigenous Mayan languages. Many different ethnic groups exist in Central America, with about 66 percent of the people being mestizo (of mixed indigenous and European descent).

An overwhelming majority of Central Americans identify as Christians, a product of the Spanish colonization of the area in the sixteenth century. More specifically, Roman Catholicism has been the religion practiced by the greatest number of adherents in the region, although Protestantism has increasingly grown in popularity.

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