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Introduction In this paper I will discuss about Central American economy using dependency theory I will talk about the problems of being heavily dependent on traditional agricultural exports and maquila industry exports to the United States Then I will suggests an alternative to export oriented economic development model I will briefly go through Central American history and current situation listing some problems and potential problems To emphasize the problems I will talk about my own experiences in Costa Rica using Garan to explain maquila factory Then I will suggest some alternative models of growth and suggest what is needed to be done For comparison I used Central Americas data and Japans data Because Japan is a small country with limited resources similar to Central American countries Central America can learn a lot from Japan Also I included some opinions and information from a person from the area Central America is a region relatively untouched by the United States and other developed countries Still its development is heavily influenced by the United States because to achieve the rapid development Central America needs to listen to other developed countries or they would not receive any aid and other form of supports IMF and World Bank have not really done any work in Central America because they have not seen the potential growth in this region One critical fact about achieving steady long term growth is that a country must have a strong and steady government that citizens follow and can retain peace Without a strong government any growth is fragile and a crisis awaits when a problem comes up When talking about growth and development of one country one needs to look at the overall economic growth as well as types of growth that this country is having There are three important facts in order to achieve development of one country First the country should strive to achieve independence and selfsustainability
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