Enlarging Local Markets

Poor roads and complex bureaucracy reduce the markets in Central American cities.

Monday, July 6, 2009

The term “local market” was created in China to refer to the consumers which can be reached in eight hours in a truck loaded with products, including all the paperwork necessary.

According to an article by Louisa Reynolds on Elperiodico.com.gt, under this definition, the “local market” of Guatemala City includes San Salvador, but not other important cities like San Pedro Sula and Tegucigalpa (which take 12-14 hours to reach), Managua (18 hours) and San Jose (26 hours).

The reason? Long procedures, poor and insufficient infrastructure which cause hours of bottlenecks, and the insecurity of the routes.

Attacking these problems and decreasing transportation times between Central American cities, will effectively enlarge the “local market” of each economic center.

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