Democratic Transitions in Central America

The end of the 20th century was important for democratic transitions in many countries of Latin America. However, despite the efforts to create enhanced democratic institutions, the democratic transition in some countries has not been completed yet. The main objective of this paper is to analyze and compare the relationship between governance and development between two countries in Central America, Nicaragua and Costa Rica. Key concepts of political reforms in Central America, such as governability and democracy, and how they have evolved in in both countries were analyzed. Furthermore, from a game theoretical perspective, the dynamics of democratic transitions in both cases were explained. Finally, this paper analyzes the role of important key factors that are related to a democratic transition in both countries, such as: access to power, functioning of markets, and political parties