History of Central America - 20th Century

20th Century

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.

Another initiative is known as Free Movement of Persons in the CA-4, which has opened the borders between Nicaragua and Guatemala removing the need to carry a passport to cross borders, just a national ID (cédula de identidad) is enough to cross borders. This initiative is the result of negotiations of the Central American Commission of Directors of Migration (OCAM) with the support of the International Organization for Migration (IOM). This initiative has been in effect since 2007.