textThe globalization of economic activity has caused some to declare that
national borders no longer matter and, therefore, the nation-state has become
irrelevant. Others argue that globalization has weakened the nation-state and has
made it susceptible to the economic interests that control the global economy.
Regardless, countries have become increasingly integrated into the global
economy over the past two decades; they have also organized themselves into
various regional trading blocs. This study contributes to the debate of how
globalization and regionalization have affected the sovereignty of the world’s
nation-states, by investigating the effects of the Central American Common
Market (CACM) on the national sovereignty of its member countries. To
accomplish this goal, the study employed a battery of empirical and qualitative
analyses to address three primary questions. First, does the existence of the
CACM conflict with the nation-state, resulting in the formation of a de facto,
supra-national boundary? Second, does the CACM’s legal and institutional
framework possess the strength to compete and challenge the authority of the
nation-state? And, third, does regional identity or economic integration
strengthen the CACM in its challenge of the nation state? To determine the
existence of a de facto, supra-national CACM boundary, the study employed a
gravity model to determine its existence and to measure its effect. To understand
the ability of the CACM to successfully challenge the authority of its member
states, the research included interviews of individuals working at Central
America’s multinational institutions, national governments and organizations
representing its private-sector. The findings of the empirical analyses did show,
from several geographic perspectives, a supra-national CACM boundary between
1980 and 1997. However, despite these findings, there was significant evidence
gathered during the interviewing process to question whether this border actually
exists. The Central American countries have been unwilling to give up more than
the minimal amount of national sovereignty necessary to make the CACM work.
Therefore, the findings of this research suggest that participation in the Central
American Common Market agreement has not threatened the national sovereignty
of its member nation-states.LBJ School of Public Affair
