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This study challenges several widely held assumptions about Central American economic integration, arguing that the key to understanding the failure of the integration program lies in neither advanced economic nor regional integration theory, but in the domestic politics of the states involved. Thus, the author contends that the Common Market was not the cause of the balance-of-payments and balanced-growth crises in Central America; rather, domestic political forces were the major factor in the collapse of the market and the subsequent attempts at restructuring. Professor Shaw disputes the standard interpretations of the role of the technocrats in the integration process and demonstrates that the domestic political elites played an important role throughout. He also challenges the assumption that economic integration is always a force for conciliation, pointing out that the Common Market aggravated some of the conflicts that led to war between El Salvador and Honduras in 1969. Nor are integration programs among less developed countries necessarily instruments of political and social change, according to this analysis; on the contrary, political elites used the Common Market to bypass the internal economic reforms necessary for national development. This study incorporates new material—interview data and other primary source material—on events of the past eight years.
Study of the economic integration process in Latin America within the framework of the LAIA and the SIECA, impact thereof on economic development and the proposal to establish a region-wide Latin American common market (lacm) - covers trade agreements the role of GATT and UNCTAD and includes excerpts from the declaration of the presidents of American states made at punta del este in april 1967. Bibliography pp. 99 to 105 and statistical tables.