International Commission For Central American Recovery and Development - The Plan

The Plan

The immediate plan to aid those in poverty is followed by a strategy for sustainable development, including the revival of productivity and production, assuring the creation of employment, the development of human resources, fiscal and monetary reform as well as strategy to conserve natural resources. In sequencing the plan, fiscal reform is noted as a fundamental step to finance the recovery of human resource development from positive, real returns of hard-earned profit. With recognition of the difficulties in sustaining democratic governance in the region, the report then discusses building democracy as inseparable from development. The plan for building democracy consists of broadening participation in civil society, advocating respect for human rights with tolerance to instill values of democracy and peace.

The international commission report stresses that the fragile institutions representing the interests of those excluded from political processes, the minimal financial resources for mobilizing to provide for the poorest in society, and the perceptions of those who hold power are obstacles to progressive reform. At this point, the report as it was presented addressed the developmental needs of the region rather than on a country-by-country basis, allowing for the "development of more comprehensive policies" (Envivo 1989). The plan to promote democracy thus involves strategy for civilian rule and civil-military relations where: “security is not achieved by repression and military dominance of government. Continued withdrawal of the military from the political scene, their training in democratic political values, the rejection of authoritarian doctrines of national security, and the development of effective mechanisms of civilian political control,” is critical Central American societies (ICCARD 1989: 61). The commission’s plan advises from the need for economic and social justice with a strong role in developing democracy through nongovernmental organizations and the support of the media.

For sustainable democracy, the report maintains regional institutions and cooperation are essential, noting The Central American Parliament, The Central American Economic and Social Council, as well as The Central American Court of Justice are vital to facilitating regional integration. The vision of regional economic planning accordingly "rests on an assumption that political dialogue is the means to resolve both internal and regional conflicts" (Envio 1989). Historical factions related to integration are detailed, including the central challenges to rebuilding the Free Trade Zone under the "conditionality" of World Bank, the International Monetary Fund, and the U.S. Agency for International Development structural adjustment programs. The commission suggests that while there are favorable conditions for regional investment and cooperation, the intra-regional debt also remains a major obstacle.

If integration is to be sustainable and successful, regional institutions must be strengthened, particularly the Central American Bank for Economic Integration and the Secretariat of the Central American Monetary Council. The strengthening of these institutions is essential to achieving economic cooperation – or "acting together internationally" in the words of the report – which requires an institutional coherence that the commission suggests the European Community is, "with it long experience in developing regional structures, in an excellent position to provide expertise" (ICCARD 1989: 76). To maintain international cooperation, the report addresses the conditions for any support to promote trade, advance technology in the region and open markets for Central American exports to revive the intra-regional economy. Markets must provide for the modernization of regional technology and financial flows need be devoted to domestic reforms, debt reduction and restructuring. Finally, the report advises for a coordinated diversification of foreign assistance based on performance conditions.