Politics of Central America

Central America is currently undergoing a process of political, economic and cultural transformation that started in 1907 with the creation of the Central American Court of Justice.

In 1951 the integration process continued with the signature of the San Salvador Treaty, which created the ODECA, the Organization of Central American States. However, the unity of the ODECA was limited by conflicts between several member states.

In 1991, the integration agenda was further advanced by the creation of the SICA, Sistema para la Integración Centroamericana or System for the Central American Integration. The SICA provided a clear legal basis to avoid disputes between the member states. The SICA membership includes the 7 nations of Central America plus the Dominican Republic, a state that is traditionally considered part of the Caribbean.

On December 6, 2008 SICA announced an agreement to pursue a common currency and common passport for the member nations. No timeline for implementation was discussed.

Central America already has several supranational institutions such as the Central American Parliament, the Central American Bank for Economic Integration and the Central American Common Market.

On July 22, 2011 President Funes of El Salvador became the first president pro tempore to the SICA. El Salvador also became the headquarters of SICA in the inauguration of a new building.[18]

Foreign Relations
Until recently, all Central American countries have maintained diplomatic relations with Taiwaninstead of China.[19]  President Oscar Arias of Costa Rica, however, established diplomatic relations with China in 2007, severing formal diplomatic ties with Taiwan.