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109
PENNSVALLEY
Central America
Lesson 55:
Natural Resources and Economy of
Central America
The natural resources of Central America are centered on the tropical climate and rich soil of the
region.Much of theCentral American economy revolves around agricultural products.Over the years,
the soil from the volcanic deposits has become rich and fertile.When combined with the tropical cli-
mate and rainfall, products “erupt” from the soil. Owners of large farms, known as plantations, have
claimed most of the good soil for agriculture. Poorer people barely make a living from subsistence
farming.They eat the food they produce. Any extra food products are sold at the local markets.
Similar toMexico, themost important cash crops beginwith the letter c: coffee, cotton, and cane
(sugar). Another important crop is bananas. Together, bananas, coffee, and cotton represent 50% of
thevalueof exports fromCentral America. Inaddition, cacaobeansandcoconutsaregrown for export-
ing.Raising cattle is also becoming important.
The climate pattern also supports the growth of forests.Besides paper products and timber, chic-
le comes from some of the trees.Chicle is themain ingredient in chewing gum.
The Central American region does not have a well-developed transportation network to support
heavymanufacturing industries.Onemajor road cutting through the region is called thePanAmerican
Highway. It isaseriesof roadsextendingmore than16,000miles from theUnitedStates throughSouth
America.These roads help to support tourism, which is a growing industry, and trade.
The region does support light manufacturing, such as food processing and wood product manu-
facturing. Hydroelectric power is produced in El Salvador, Honduras, and Costa Rica. Nicaragua and
Honduras havemineral resources, but only themining of gold and silver have beenwell developed.
One large human-made feature of Central America that has contributed to world trade is the
PanamaCanal. Each year,more than12,000 ships travel through the51-mile canal.Travel through the
canal between NewYork City and San Francisco saves thousands of miles and lots of money! More
than 14,000 peoplework at the canal.
ACTIVITY 1:
Use the information in the reading to answer the following questions.
1.Most jobs are dependent uponwhat type of industry?
Primary, Secondary, Tertiary
2.Name onemajor cash crop that does not start with the letter “c.”
3.Name three crops that contribute tomore than 50% of the
value of crops sent from the countries of Central America?
4.What energy product is produced inCentral America?
5.What twominerals aremined inCentral America?
6.What human-made feature has reduced the amount of time it
takes tomove products on ships from ocean to ocean?
1.
2.
3.
1.
2.
