The declaration by Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica was a pivotal moment in Central American history. After being annexed by the First Mexican Empire in 1822 under Emperor Agustín de Iturbide, these nations found themselves grappling with the challenges of colonial legacy and emerging national identities. The annexation was met with discontent among local leaders and intellectuals who desired autonomy and self-governance, as they felt Mexico’s policies did not align with their local needs and aspirations. Subsequently, a movement coalesced, fueled by a growing sense of nationalism and the idea of self-determination, eventually leading to a declaration of independence in 1823.

The announcement of independence was formalized in a letter adopted by the Central American Federation, which emphasized the regions' desire for individual governance rather than being subsumed under Mexican dominance. This declaration was not just a reaction to the previous annexation but also an expression of a broader desire for sovereignty that would influence future regional politics. Central American leaders, inspired by revolutions in other parts of Latin America and the Enlightenment ideals of liberty and democracy, began to forge a collective identity that transcended colonial rule.

This decision, while seen as a path toward autonomy, was marked by the challenges of forming a stable government. The nations experienced subsequent conflict and attempts at federation, which often met with internal strife and external pressures. The complexities of governance in the early years of independence laid foundation stones for the turbulent relationships that would define Central America's political landscape for decades to come.