Answer:
When studying the history of Central America one must first clarify just what Central America is. Today (2019) it is commonly taken to include Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama. This definition matches modern political borders. However, in some senses and at some times Central America begins in Mexico, at the Isthmus of Tehuantepec, and the former country of Yucatán was part of Central America. At the other end, before its independence in 1903 Panama was politically and culturally part of the South American country of Colombia, or its predecessors. At times English-speaking Belize, with a quite different history, has been considered as apart from Central America.
Political Evolution of Central America and the Caribbean from 1700 to present
Contemporary political map of Central America
Long and narrow, Central America does not have an obvious center from a geographic point of view. While Guatemala has been historically and religiously a leader, other regions have been unwilling to be part of a confederation based in Guatemala. The geography has made the region hard to govern from any central point. The countries, furthermore, are more diverse than they appear at first glance. Some (Guatemala) have a large indigenous or Native American population, others (Costa Rica) do not. Some (El Salvador) are focused on their Pacific coast, while in others (Belize, Honduras) the Caribbean or Atlantic coast is more important. Panama and to a lesser extent Guatemala and Costa Rica have both coasts playing a significant role. Panama is heavily Americanized, uses the US dollar as its currency, has a large industry and source of revenue (the canal), and a sophistication which comes from the ships passing through the country and previously the U.S. military installations in the Canal Zone.
