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Mary Speck on China’s Search for Inroads into Central America

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The geography and economic dynamics of Central America have created a unique vulnerability that is being actively exploited by external powers, particularly China. Historically, this region served as a transit corridor for South American drugs moving north toward the United States due to its remote coastal areas in countries like Honduras, combined with underfunded security forces and corrupt institutions. While the U.S. remains the dominant economic, political, and cultural partner for most Central Americans—unlike in South America where China holds sway—the region has recently seen Beijing court these nations not primarily out of direct economic necessity but to secure access to the American market. However, Chinese engagement has largely consisted of symbolic gestures like building stadiums or libraries rather than providing the productive investments needed to stabilize local economies, leaving a vacuum that undermines long-term development while offering China strategic footholds in what is effectively America's backyard. Political instability and governance failures have further eroded public trust in democratic institutions across Northern Central America, creating an environment where authoritarian alternatives are increasingly considered viable solutions by citizens weary of violence and poverty. Although El Salvador has seen a dramatic reduction in crime rates under President Nayib Bukele's "state of exception," this progress comes at the steep cost of due process rights, with tens of thousands detained without trial. Similar challenges plague Honduras and Guatemala, where organized crime networks have infiltrated local governments, intimidated elected officials, and corrupted police forces to such an extent that violence persists despite security crackdowns. Consequently, confidence in democracy is waning as populations increasingly prefer strongman leadership over flawed democratic processes, a trend mirrored by the gradual erosion of judicial independence seen under Daniel Ortega's regime in Nicaragua. The region faces a complex mix of danger signs and isolated pockets of hope amidst this decline toward authoritarianism. While leaders like Bukele have centralized power to combat gangs, other nations are witnessing courts lose their autonomy and civil society groups face suppression, echoing the trajectory taken by Nicaragua. Migration flows continue to surge as citizens flee collapsing democracies in Venezuela and high crime rates elsewhere, with hundreds of thousands attempting to reach the United States despite dangerous journeys. The situation remains precarious; although there is some optimism regarding democratic elections in places like Guatemala where leaders have been elected against restrictive governments, the overarching threat is that all three primary nations could follow Nicaragua's path toward dictatorship if current trends of judicial corruption and political intimidation are not reversed. Ultimately, without significant investment in legitimate institutions and economic opportunities, the region risks becoming a failed state zone dominated by criminal syndicates and illiberal regimes seeking to bypass democratic norms entirely.
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[Music] the United States Institute of Peace along with siriusxm's pus Channel 124 now present their weekly podcast Dr Mary Speck with the United States Institute of Peace welcome to podus thanks for being on the show today thank you for having me let's talk about the I I mentioned you right geography makes this region vulnerable um and it's all location location location for Guatemala El Salvador and hondurus why so well South American drugs and this has been true for a couple decades at least um generally land in Central America on their way north um it's a very poor region um had um lots of of of remote areas where you could land via air but especially along the coast especially along the coast of Honduras at this time it's an easy place to enter drugs because um remote location poor po uh populations and also very um uh underqualified under motivated corrupt Security Forces you uh you note that the United States Remains the Region's load star economically politically and culturally how so well well Central Americans have long um ties with the United States um it's the major trading partner and that is not true in South America China is the major trading partner for most if not all sou South American countries with the exception of Colombia the United States Remains the largest trading partner although um with the exception of Guatemala and bis the other countries now recognize China and not Taiwan uh but also of course immigration creates these strong cultural tough and unlike South American countries which have tended to be more nationalistic and more skeptical of the United States Central Americans in general have very positive views of the United States you mentioned China and in the piece you write in recent years China has courted Central American governments but many Chinese promises have failed to come to fruition have the cuts in us a are the funding Cuts there have they opened a door for China in this region well yes China already has given some very showy likes to give showy gifts it hasn't really invested in that case it has in that in the cas it hasn't really given the productive investment that Central America really needs to bring its economies forward but it does build stadiums for example in El Salvador in a shiny library right on the on the Central Plaza of San Salvador so it gives a lot of Investments and it even appears at local areas it's clearly stepping up its um activity in this region in order to court Central Americans it um not so much because it's economically important to them but because they obviously want to be able to operate in the United States backyard again we are speaking with Dr Mary spec senior expert of the Latin America program for the United States Institute of Peace as you note that Northern Central America remains fragile both politically and economically and you you note that there has been a sort of a failure of elected governments to ensure citizen safety or provide stable decently paid employment what is the status of the governments of those countries well ELO of course has made tremendous progress um it it uh has crime rates and homicide rates which is what we usually measure have gone down dramatically under the state of exception that that naive belli has imposed the president belli but at a tremendous cost at the cost of due process rights um you have tens of thousands of suspects in jail who who have who have not faced trial and may never face trial um uh in the other countries you've you've experimented with Iron Fist policies but they haven't um made the dramatic gains that you have in El Salvador although crime has gone down in all of these countries but the problem is security forces are poorly paid they're easily corrupted and in the case of Honduras and Guatemala they face not only street gangs which is the main problem in El Salvador um they face organized crime and this is especially a problem at the local level um right now in Honduras you're you're beginning an electoral campaign and already a couple Mayors have been killed um this is the where organized crime um has the most power at the local level able its ability to intimidate um elected officials and of course to corrupt the police is phenomenal throughout the region and this makes it very difficult um to bring down violence um and to convince people that democracy really works and so you have an erosion of faith in elected leaders is is democracy the preferred form of government I gather from your piece that it is not necessarily it doesn't get a ringing endorsement if you will from the populace uh the confidence in democracy has been eroding um many people in the uh plural I ities if not majorities in many countries say well if we if an authoritarian government if a non-democratic government can solve the problems we we prefer it so they don't agree with the old what you call the chillian formula that democracy is the best form of government uh the worst form of government except for all the others so there is an erosion of Faith Dr Mary spec senior expert Latin America program for the United States Institute of Peace you knowe that there's a cautionary tale to be derived from Nicaragua president Daniel orte has pretty much undertaken and undermined the independence of electoral authorities it is a virtual dictatorship what is the lesson and the cautionary tale that we need to take from Nicaragua well Nicaragua um just gradually eroded uh the independence of the Court started attacking civil society and we're seeing the same things happening in other countries we El Salvador and El Salvador prior to um imposing the state of exception uh buelli basically took control of the Court there there are controversies over um Corruption of the courts and the lack of independence of the courts in places like um Honduras where the where a leftist government has been attacking uh Court uh judicial Independence but also attacking civil society and the press in Guatemala uh there's a sign of Hope because adev was elected despite a previous government which had also tried to restrict civil society and attacked and even arrested journalists so it's a mixed um bag in the region but there there are real danger signs in all three of these countries uh that they could go in the same direction of Nicaragua I also note that 200,000 you say 200,000 some citizens have immigrated from Nicaragua I'm wondering are they trying to get to the US well they have tried to get to the United States um definitely they're among the Central America has long been a source of undocumented migration to the United States stes um uh Northern Central America primarily but nicaraguans have increased in recent years and of course from other countries Venezuelans have also migrated in in tremendous numbers um and that's fleeing the collapse of democracy and the economy in Venezuela and high crime rates also it is an interesting subject and one will continue to watch Dr Mary spec senior expert Latin America program for the United States Institute of Peace thank you so much for joining us here on pus thank you for me this podcast has been brought to you by the United States Institute of Peace and Sirius xams pus Channel 124