Book excerpt: Agricultural development in Central America is based on extensive growth, supported by macroeconomic policies that marginalize small peasants. Deforestation, erosion and resource depletion are particularly severe. This book offers a comprehensive review of the perspectives for state policies and local action to enhance sustainable agriculture. Macroeconomic conditions and institutional arrangements for the establishment of sustainable production systems in different eco-regional settings (hillsides, humid tropics, frontier areas) are discussed, as well as policy instruments to improve property rights, management rules and financial mechanisms to enhance sustainable resource use.