Central Central AmericaAmerica

Nicaragua Panama Nicaragua Panama HondurasHonduras

Country SizeCountry Size

►Panama - Panama - slightly smaller than South Carolina slightly smaller than South Carolina total:total: 78,200 sq km, water 78,200 sq km, water:: 2,210 sq km, 2,210 sq km,

land:land: 75,990 sq km 75,990 sq km

►Nicaragua – Nicaragua – between Honduras and Costa Ricabetween Honduras and Costa Rica total:total: 129,494 sq km, 129,494 sq km, water:water: 9,240 sq km, 9,240 sq km,

land:land: 120,254 sq km 120,254 sq km

►Honduras – Honduras – slightly larger than Tennesseeslightly larger than Tennessee total: total: 112,090 sq km, 112,090 sq km, water:water: 200 sq km 200 sq km

land: land: 111,890111,890

PopulationPopulation

(July 2003 est.) (July 2003 est.)

►Panama - Panama - 2,960,7842,960,784

►Nicaragua Nicaragua – – 5,128,517 5,128,517

►Honduras Honduras – – 6,669,789 6,669,789

Capital CityCapital City

►Panama – Panama – Panama CityPanama City

►Nicaragua – Nicaragua – ManaguaManagua

►Honduras - Honduras - TegucigalpaTegucigalpa

LanguageLanguage►Panama – Panama –

Spanish and Spanish and EnglishEnglish note:note: many many Panamanians bilingual Panamanians bilingual

►Nicaragua – Nicaragua – SpanishSpanish

►Honduras – Honduras – Spanish, Spanish, Amerindian Amerindian dialectsdialects

ReligionReligion►Panama – Panama –

Roman Catholic Roman Catholic 85%, Protestant 15% 85%, Protestant 15%

►Nicaragua –Nicaragua – Roman Catholic Roman Catholic

85%, Protestant85%, Protestant 15%15%

►HondurasHonduras – Roman – Roman Catholic 97%Catholic 97%

Background InformationBackground Information

►Panama – Panama – With US backing, Panama seceded With US backing, Panama seceded from Colombia in 1903 and promptly signed a from Colombia in 1903 and promptly signed a treaty with the US allowing for the treaty with the US allowing for the construction of a canal and US sovereignty construction of a canal and US sovereignty over a strip of land on either side of the over a strip of land on either side of the structure (the Panama Canal Zone). With US structure (the Panama Canal Zone). With US help, dictator Manuel NORIEGA was deposed in help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area 1989. The entire Panama Canal, the area supporting the Canal, and remaining US supporting the Canal, and remaining US military bases were turned over to Panama by military bases were turned over to Panama by or on 31 December 1999.or on 31 December 1999.

Background InformationBackground Information

► Nicaragua – The Pacific Coast of Nicaragua was Nicaragua – The Pacific Coast of Nicaragua was settled as a Spanish colony from Panama in the settled as a Spanish colony from Panama in the early 16th century. Independence from Spain was early 16th century. Independence from Spain was declared in 1821 and the country became an declared in 1821 and the country became an independent republic in 1838. Opposition to independent republic in 1838. Opposition to governmental manipulation and corruption spread governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived to all classes by 1978 and resulted in a short-lived civil war that brought the Marxist Sandinista civil war that brought the Marxist Sandinista guerrillas to power in 1979. The US intervened and guerrillas to power in 1979. The US intervened and as to sponsor anti-Sandinista contra guerrillas as to sponsor anti-Sandinista contra guerrillas through much of the 1980s. Free elections in 1990, through much of the 1980s. Free elections in 1990, 1996, and again in 2001 saw the Sandinistas 1996, and again in 2001 saw the Sandinistas defeated. The country is currently rebuilding its defeated. The country is currently rebuilding its economy.economy.

Background InformationBackground Information

► Honduras – Part of Spain’s vast empire in the New Honduras – Part of Spain’s vast empire in the New World, Honduras became an independent nation World, Honduras became an independent nation in 1821. After two and one-half decades of mostly in 1821. After two and one-half decades of mostly military rule, a freely elected civilian government military rule, a freely elected civilian government came to power in 1982. During the 1980’s, came to power in 1982. During the 1980’s, Honduras proved a haven for anti-Sandinista Honduras proved a haven for anti-Sandinista contras fighting the Marxist Nicaraguan contras fighting the Marxist Nicaraguan Government and an ally to Salvadoran Government and an ally to Salvadoran Government forces fighting against leftist Government forces fighting against leftist guerrillas. The country was devastated by guerrillas. The country was devastated by Hurricane Mitch in 1998, which killed about 5,600 Hurricane Mitch in 1998, which killed about 5,600 people and caused almost $1 billion in damage.people and caused almost $1 billion in damage.

Government TypeGovernment Type

►Panama – Panama – Constitutional DemocracyConstitutional Democracy

►NicaraguaNicaragua – Republic – Republic

►Honduras Honduras – Democratic Constitutional – Democratic Constitutional RepublicRepublic

Legal SystemLegal System

►Panama – Panama – based on civil law system; based on civil law system; judicial review of legislative acts in the judicial review of legislative acts in the Supreme Court of JusticeSupreme Court of Justice

►NicaraguaNicaragua – civil law system, similar to – civil law system, similar to Panama.Panama.

►Honduras Honduras – civil law rooted in Roman and – civil law rooted in Roman and Spanish with increasing influence from Spanish with increasing influence from English common lawEnglish common law

EconomyEconomy

►PanamaPanama – Panama's economy is based – Panama's economy is based primarily on a well-developed services sector that primarily on a well-developed services sector that accounts for three-fourths of GDP. Services accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in Colon flagship registry, and tourism. A slump in Colon Free Zone and agricultural exports, the global Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military slowdown, and the withdrawal of US military forces held back economic growth in 2000-02. The forces held back economic growth in 2000-02. The government has been backing public works government has been backing public works programs, tax reforms, new regional trade programs, tax reforms, new regional trade agreements, and development of tourism in order agreements, and development of tourism in order to stimulate growth. to stimulate growth.

EconomyEconomy

►Nicaragua – Nicaragua, one of the Nicaragua – Nicaragua, one of the hemisphere's poorest countries, faces low per hemisphere's poorest countries, faces low per capita income, flagging socio-economic capita income, flagging socio-economic indicators, and huge external debt. indicators, and huge external debt. Distribution of income is one of the most Distribution of income is one of the most unequal on the globe. While the country has unequal on the globe. While the country has made progress toward macroeconomic made progress toward macroeconomic stability over the past few years, a banking stability over the past few years, a banking crisis and scandal has shaken the economy. crisis and scandal has shaken the economy. They currently rely mainly on aid from They currently rely mainly on aid from foreign countries and private investors. foreign countries and private investors.

EconomyEconomy

► Honduras – Honduras – One of the poorest countries in the One of the poorest countries in the Western Hemisphere with an extraordinary unequal Western Hemisphere with an extraordinary unequal distribution of income, is banking on expanded distribution of income, is banking on expanded trade privileges under the Enhanced Caribbean trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While the Indebted Poor Countries (HIPC) initiative. While the country has met most of its macroeconomic country has met most of its macroeconomic targets, it failed to meet the IMF’s goals to liberalize targets, it failed to meet the IMF’s goals to liberalize its energy and telecommunications sectors. Growth its energy and telecommunications sectors. Growth remains dependent on the status of the US remains dependent on the status of the US economy, its major trading partner, on commodity economy, its major trading partner, on commodity prices, particularly coffee, and on reduction of the prices, particularly coffee, and on reduction of the high crime rate.high crime rate.

Labor ForceLabor Force►Panama – Panama – 1.1 1.1

million million note:note: shortage of shortage of skilled labor, but an skilled labor, but an oversupply of unskilled oversupply of unskilled labor (2000 est.) labor (2000 est.)

►Nicaragua – Nicaragua – 1.7 1.7 millionmillion

►Honduras – Honduras – 2.3 2.3 millionmillion

Labor Force Labor Force by Occupationby Occupation►Panama – Panama –

agriculture 20.8%, agriculture 20.8%, industry 18%, services industry 18%, services

61.2% (1995 est.)61.2% (1995 est.) ►Nicaragua – Nicaragua – services services

43%, agriculture 42%, 43%, agriculture 42%, industry 15% (1999 est.) industry 15% (1999 est.)

►Honduras – Honduras – agriculture 34%, industry agriculture 34%, industry 21%, services 45%21%, services 45%

ExportsExports►Panama – Panama – $5.8 billion$5.8 billion

bananas, shrimp, sugar, bananas, shrimp, sugar,

coffee, clothingcoffee, clothing ►Nicaragua – Nicaragua – $637 $637

million.million. coffee, shrimp and lobster, coffee, shrimp and lobster,

cotton, tobacco, bananas, cotton, tobacco, bananas, beef, sugar, gold.beef, sugar, gold.

►HondurasHonduras – $1.3 – $1.3 billion f.o.b.billion f.o.b. coffee, bananas, shrimp, coffee, bananas, shrimp,

lobster, meat; zinc, lumberlobster, meat; zinc, lumber

ImportsImports►Panama – Panama – $6.7 billion$6.7 billion

capital goods, crude oil, capital goods, crude oil, foodstuffs, consumer goods, foodstuffs, consumer goods, chemicals chemicals

►Nicaragua – Nicaragua – $1.7 $1.7 billionbillion machinery and equipment, machinery and equipment,

raw materials, petroleum raw materials, petroleum products, consumer goodsproducts, consumer goods

►Honduras – Honduras – $2.7 billion $2.7 billion f.o.b.f.o.b. Machinery and transport equip., Machinery and transport equip.,

industrial raw materials, industrial raw materials, chemical products, fuels, chemical products, fuels, foodstuffsfoodstuffs

CurrencyCurrency►Panama – Panama – balboa balboa

(PAB); US dollar (USD)(PAB); US dollar (USD) ►Nicaragua –– Nicaragua ––

Gold CorbodaGold Corboda

►Honduras – Honduras – lempira (HNL)lempira (HNL)

Exchange Exchange RateRate

►Panama – Panama – balboas balboas per US dollar - 1 per US dollar - 1 (2002) (2002)

►Nicaragua – Nicaragua – 14.2513 Corboda to 1 14.2513 Corboda to 1

Dollar (2002)Dollar (2002) ►Honduras – Honduras – 16.4 16.4

lempiras/US dollarlempiras/US dollar

ISP’sISP’s►Panama – Panama – 66 ►Nicaragua – Nicaragua – 33►Honduras – Honduras – 88

Internet UsersInternet Users

►Panama – Panama – 45,000 45,000 (2000) (2000)

►Nicaragua – Nicaragua – 20,000 (2000)20,000 (2000)

►Honduras – Honduras – 40,00040,000

Transnational IssuesTransnational Issues

►Panama – Panama – Illicit DrugsIllicit Drugs - major cocaine - major cocaine transshipment point and primary money transshipment point and primary money laundering center for narcotics revenue; money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial signs of coca cultivation; monitoring of financial transactions is improving; official corruption transactions is improving; official corruption remains a major problem remains a major problem

Transnational IssuesTransnational Issues

►Nicaragua – Major border disputes Nicaragua – Major border disputes with neighboring countries over with neighboring countries over locations such as the Archipelago de locations such as the Archipelago de San Andres y Providencia and Quita San Andres y Providencia and Quita Sueno Bank region, and the San Juan Sueno Bank region, and the San Juan River. Also, a transshipment point for River. Also, a transshipment point for drug and arms dealings. drug and arms dealings.

Transnational IssuesTransnational Issues► Honduras – In 1992, ICJ ruled on the delimitation of Honduras – In 1992, ICJ ruled on the delimitation of

“bolsones” (disputed areas) along the El Salvador-“bolsones” (disputed areas) along the El Salvador-Honduras border, but they still remain largely Honduras border, but they still remain largely undemarcated; in 2002, El Salvador filed an application undemarcated; in 2002, El Salvador filed an application to the ICJ to revise the decision on a section of bolsones; to the ICJ to revise the decision on a section of bolsones; the ICJ also advised a tripartite resolution to a maritime the ICJ also advised a tripartite resolution to a maritime boundary in the Golfo de Fonseca with consideration of boundary in the Golfo de Fonseca with consideration of Honduran access to the Pacific; El Salvador claims tiny Honduran access to the Pacific; El Salvador claims tiny Conejo Island, not mentioned by the ICJ, off Hounduras Conejo Island, not mentioned by the ICJ, off Hounduras in the Golfo de Fonseca; Honduras claims Sapodilla Cays in the Golfo de Fonseca; Honduras claims Sapodilla Cays off the coast of Belize but agreed to creation of a joint off the coast of Belize but agreed to creation of a joint ecological park and Guatemalan corridor in the ecological park and Guatemalan corridor in the Caribbean in the 2002 Belize-Guatemala Differendum; Caribbean in the 2002 Belize-Guatemala Differendum; Nicaragua filed a claim against Honduras in 1999 and Nicaragua filed a claim against Honduras in 1999 and against Colombia in 2001 at the ICJ over a complex against Colombia in 2001 at the ICJ over a complex maritime dispute in the Caribbean Sea.maritime dispute in the Caribbean Sea.

Principal DifferencesPrincipal Differences

►Economic strifeEconomic strife►Drug traffickingDrug trafficking►Panama CanalPanama Canal►Small land massSmall land mass►High percentage of unskilled workersHigh percentage of unskilled workers►Extremely low incomesExtremely low incomes►Less technologyLess technology►Similar language throughout regionSimilar language throughout region