As of 2022, Central America is divided into seven nations: Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.
The modern history of these countries is based on the colonial empires of Spain and Great Britain.
Panama was part of the Spanish Viceroyalty of New Granada, which also included Colombia, Ecuador and Venezuela. By the time the USA planned the building of a canal on the Isthmus of Panama, that region seceded from Colombia and became independent in 1903. Guatemala, Nicaragua, Costa Rica, Honduras and El Salvador were part of the Viceroyalty of New Spain, centered around Mexico. They seceded from Mexico shortly after its independence and were united under the Federation of Central America from 1823 to 1838. They later split into five independent countries.
Meanwhile, the British, who controlled many of the Caribbean Islands, established trade posts on the Central American shores of the Caribbean Sea. These sparsely populated areas located between the Mexican border and southern Nicaragua, while nominally under Spanish control, became British protectorates. Honduras and Nicaragua reestablished sovereignty on their Caribbean shores during the 20th Century, but the northernmost region, while claimed by Guatemala, became the independent nation of Belize in 1981. Guatemala contests this to this day.
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