Social democrat Álvaro Colom won the second round of presidential elections on November 4, denying power to retired army general Otto Pérez Molina, who promised a “tough hand against crime”. Colom, of the National Unity of Hope party (UNE), beat Pérez Molina, leader of the far-right Patriot Party (PP) and former head of army intelligence, by a narrow 5.4 percentage points. He will be sworn in on January 14, becoming the first president from the center-left since the end of the country's 36-year-long civil war in 1996. The second round of elections was peaceful but voter turnout was poor – 53% of Guatemalans did not cast their vote, feeling that both candidates were equally unappetizing. According to analysts, the result reflects deep divisions within Guatemalan society. With soaring crime rates in urban areas, city-dwellers, fuelled by fear of violent youth gangs, bought Pérez Molina's promise to get tough on crime. However, the majority of voters in rural Guatemala, who lack access to basic services such as healthcare, education and decent housing, bought Colom's image as a candidate that would fight for the poor.

A recent survey carried out by the Costa Rican National Institute of Statistics (INEC) shows that poverty was reduced by 3.5% in the first 17 months of the Arias administration. According to the survey, the number of poor in the country went from 20.2% to 16.7% since Óscar Arias, who promised a 4% decrease in poverty during his four year term (2006-2010), took leadership of the country in May 2006. The survey also indicates that extreme poverty went from 5.3% down to 3.3%.

By Louisa Reynolds

Rumors of more foreign buyouts of Honduran banks have circulated in the press recently. On the block this round is Banpaís, Honduras' fifth largest bank and perhaps its most dynamic. There are rumored to be three buyers: Scotiabank of Canada, Banco Industrial of Guatemala, and the US Wachovia Bank. Although the news has not been officially confirmed, a competing banking interest has announced that the deal has already gone through and that Banco Industrial (BI), Guatemala's largest bank, is Banpaís' new owner.

Panama and Nicaragua have concluded negotiations for a Free Trade Agreement (FTA) between the two countries. Nicaragua is one of the few countries with which Panama has a positive trade balance. The FTA will open up markets and build bridges between productive sectors in both countries through logistical cooperation and maritime transport. Nicaragua and Panama are now strategic partners in the region.

By Sharon Pringle

Translated by James Wilson

The International Court of Justice in the Hague recently released a ruling on a Nicaragua-Honduras maritime border dispute. Although there was no clear victor in the case, both countries claimed to have won; the nation's presidents celebrated the announcement with a public hug. However, Nicaragua has to gear up for another maritime border case, this time with Colombia. The stakes will be higher: the islands at play are said to have significant oil reserves.

By Asier Andrés Fernández

Translated by Matthew Brooke