A couple of months ago I recommended CA+ as a great way to get in touch with what is going on in business in Central America. The Newspaper continues to impress me with the depth and clarity of its coverage of the region. I read this article today about an idea to create a sort of Economic European Region in the area. It makes an interesting read.

The process of Central American regionalization is occurring daily, as individual companies overcome the problems of small local markets by disregarding national borders and selling goods and services to a consumer base of 30 million people.

The regionalization of institutions will take longer, as shown by the apparent collapse of the Plan Pueblo Panama.

An ambitious program initially promoted by Mexican president Vicente Fox in 2001 as a way of linking his country's economically-troubled southern states with Central America, the PPP promised investments of as much as $10 billion in major infrastructure development, including modern highways and an energy corridor stretching from the Mexican city of Puebla as far as the Panama Canal.

In theory, the plan made sense. With Northern Mexico increasingly looking to the United States and Canada as investment and trade partners, stronger links between Central America and Southern Mexico could generate economic growth in both regions.

In the real world, however, the PPP was poorly thought through.

Southern Mexico is a major generator of hydroelectric power. But production costs are not much cheaper than those in Central America.

The isthmus is becoming increasingly important as a tourism destination. But few Southern Mexicans can afford a golf excursion. As for ecological tourism, they don’t need to leave home to enjoy it.

Since both Southern Mexico and Central America are mainly agricultural economies, greater integration between them is not likely to yield big gains.

The size of local markets is something I struggle with daily in running my own business. While this initiative may have failed, I very much look forward to the continuing evolution of local markets, which is taking place on a company by company basis, with Grupo Utopia being one of the leaders in driving technology in the region.

Note: I had an interesting breakfast meeting this morning with the Publisher of CA+, one of several I have had recently. He is the same person who publishes La Republica, my favorite Costa Rican newspaper. I have been an unofficial Technology Adviser, to La Republica for a couple years now. We may be finalizing something for me to work more directly with the two publications on their web versions in particular. It is an exciting development, because I consider La Republica to be THE BEST Business newspaper in Central America, and CA+ to be a compelling opportunity to present the business news of the entire region.

We are planning another sit down on Tuesday, will keep you all posted.

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