Although incredibly diverse, the smaller countries in Central America still face a number of structural and cultural barriers that continue to hold them back. According to the Wall Street Journal, the “Northern Triangle” of Central America – which includes Honduras, Guatemala, and El Salvador – is one of the world’s most dangerous regions. Heavy drug trafficking and powerful organized-crime networks have overwhelmed the region’s governmental institutions, creating a vicious circle of poverty and violence. These problems were exacerbated after 9/11 when increased US vigilance in the Gulf of Mexico forced more drug trafficking overland, through Central America.
Thanks to the internet and the widespread adoption of mobile devices, we’re seeing the first doors opening for a new age of development in Central America in the form of entrepreneurs and innovators trying to capitalize on opportunities in countries like Nicaragua, Honduras, Guatemala, and El Salvador. Here’s a brief overview of the current business environment in some of the smaller countries in Central America. (more…)