Recent studies make it clear that Central America continues to struggle with a contradiction: despite increasing economic growth, poverty, inequality, and marginalization persist. According to a recent report by the UN's Economic Commission for Latin America and the Caribbean (ECLAC), isthmus economies are at their highest point of growth in more than a decade, and yet Central America is the most unequal region in the world. The Inter-American Development Bank (IDB) came to a similar conclusion in its Report on Economic and Social Progress.

Although CAFTA narrowly scraped through in a recent referendum, the implementation of the treaty may be delayed if Congress fails to approve a package of thirteen laws that the US will subsequently need to ratify. Costa Rica must have the required legislation in place by late February, 2008, but so far it has appeared difficult for the Costa Rican Congress to get through this legal barrage, casting doubts over whether or not it will make the deadline. The anti-CAFTA opposition has stated that it will not block the legislative reforms, but so far it has done little to help the 38 congressmen who support the Agreement. The "G-38" has been unable to handle the double sessions in Congress or keep quorum for votes.

By Javier Córdoba

Translated by James Wilson

The National Dialogue for Development has finally concluded, allocating revenue generated from the expansion of the Panama Canal to a number of development projects. According to a number of civil society representatives who took part in the negotiations, the fate of these projects will now depend on the government's political will and the ability of civil society organizations to effectively monitor the implementation of the agreement.

Honduras has caught the eye of Guatemalan investors who are pouring millions of dollars into the neighboring country's real estate and agribusiness sectors. A number of joint Honduran-Guatemalan ventures are now developing huge shopping malls and corporate centers in San Pedro Sula, and the capital, Tegucigalpa, with further plans to invest in tourist resorts in the Puerto Cortés. The real estate boom is set to continue as Citigroup, the world's largest financial consortium, revealed plans to invest US$25 thousand million in 40 different real estate ventures in Central America.

By Nicolás Masci

Translated by Louisa Reynolds

The Farabundo Martí National Liberation Front (FMLN) has nominated journalist Mauricio Funes as presidential candidate for the 2009 elections. Funes will run with former guerrilla leader Salvador Sánchez-Cerén as vice-presidential candidate. Funes' nomination breaks with tradition as the former TV journalist has no ties to the armed struggle, no partisan political experience, or any intentions to fully bind himself to the FMLN. With a recent poll showing voters are almost evenly split between the former guerrillas turned political party and the ruling ARENA party, analysts predict the 2009 election will be tightly fought.

By Juan Pablo Ozaeta

Translated by Joshua Covey