No. 32-33 (1997): Globalization and Economic Blocks

Globalization and Economic Blocks

Important external signs that occurred in the late 1980s and early 1990s lead us to believe that the era of geopolitics is over and that a new world order is in the making, as a result of recent changes in international economic relations. Everything seems to indicate that the internationalization of the economy and the globalization of markets are the fundamental elements of this emerging order, around which countries could unite to form different blocs.

Today, there is no longer so much discussion about the need for, and the goodness of, opening up the economy, but rather it is considered an unquestionable requirement for development. The debate is focused on how to achieve greater insertion in the international market, at a lower cost and in the shortest possible time.

Central America could not be left behind in this new turn being taken by the countries of the world and is preparing to advance in the opening process and face the challenges of globalization. Although it may be considered that Central American countries still have a long way to go, their situation has changed drastically in recent years. An example of this position is the concerns expressed at some of the Central American Presidential Summits, which went from being focused on issues of pacification and democratic opening, to address those related to economic development, social policy and the environment.

The second five years of the 1990s showed Central America to be a region of peace, with governments elected in democratic processes and with a certain stability in the macroeconomic field. In short, it can be said that regional production is beginning to recover. Central American integration has been reactivated and intra-regional trade has been stimulated.

The globalization of markets and the opening of trade represent a possibility for Central American countries to insert themselves into international flows of investment, trade and technology, allowing for greater economic growth. It is also a challenge because it compels to solve market deficiencies, to improve infrastructure, especially those related to the management of exports and other aspects related to efficient production, in order to take advantage of the opportunities and demands of the new context, without forgetting that successful countries are those that put emphasis and tenacity in technological innovation.

In essence, it can be said that the globalization process tends to integrate the world, generating at the same time a tendency towards a single universal market. Consequently, this potential and true new world economic order should not only mean the predominance of transnational corporations and the major economic powers, as has been the case to date, but should also be committed to incorporating the vast group of developing countries.