elf a sovereign republic, and Costa Rica soon followed in 1848. In 1855 in Nicaragua, William Walker made himself president with the aid of the alliance of Nicaraguan Liberals, only to find a united army from all five states ready to defeat. By 1872 the Liberals had returned to power in every state except Nicaragua, and they continued to dominate politics through the middle of the 20th century. They placed strong importance on agricultural exports as the key to national modernization. A transportation and communication infrastructure was also developed by the Liberals, which aided them in bringing Central America into the North Atlantic Trade economy. In 1903 the United States began its construction on the Panama Canal, which would greatly impact the economy of this tiny nation in the years to come. This time period from about 1870 up until the 1940’s was characterized by military dictatorships, who aided the farmers by protecting there interests. By the middle of the 20th century, the powerful political and economic elites associated with the export-led economies promoted by the Liberal parties faced strong representation from the middle- and working-class people. The Communist nation is believed to have had a significant influence on the working people of Central America. What happened from this point in time differs from country to country. In Guatemala, armed conflict started in 1963 and lasted for 33 years. Its origins are traced back to the overthrow of democratically elected president Jacobo Arbenz in 1954. El Salvador suffered a civil war that began in 1979 and ended in 1992 with a peace agreement. Nicaragua experienced civil war from 1974 to 1979, which ended in the overthrow of self-imposed dictator Anastasio Somoza Debayle. Costa Rica and Honduras were successful in establishing a democratic state, though due to the difficulties in the other countries foreign trade was greatly impacted in these countries ....
