Abstract
Ostensibly, the Central American Left has been defeated both politically, in the Nicaraguan elections, and economically, with the triumph of orthodox economic adjustment policy. In reality, the end of the Cold War promises to alter the economic and political climate in a way that will encourage the region's long‐delayed modernization. Although the political arena remains turbulent, moderate forces are emerging which Washington will find easier to support. Equally promising is the region's favourable record of economic adjustment in the second half of the 1980s. A more favourable world climate for world trade in the 1990s would ease the region's foreign exchange constraint and enable a further round of industrialization to take place, while further eroding the economic basis of ‘oligarchic despotism’.

This publication has 8 references indexed in Scilit: