El Salvador
GANG INFORMATION
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PROFILE
OFFICIAL NAME:
Republic of El Salvador
Geography
Area: 21,476 sq. km. (8,260 sq. mi.); about the size of Massachusetts.
Cities: Capital--San Salvador (pop. 1.7 million). Other cities--Santa
Ana San Miguel, Soyapango, and La Union.
Terrain: Mountains separate country into three distinct regions--southern
coastal belt, central valleys and plateaus, and northern mountains.
Climate: Semitropical, distinct wet and dry seasons.
People
Nationality: Noun and adjective--Salvadoran(s).
Population (2003): 6.6 million.
Annual growth rate (2003): 2%.
Ethnic groups: Mestizo 90%, indigenous 1%, Caucasian 9%.
Religion: About 55% Roman Catholic, with significant and growing
numbers of Protestant groups.
Language: Spanish.
Education: Free through ninth grade. Attendance (grades 1-9)--85%.
Literacy--84.1% nationally; 75.3% in rural areas.
Health: Infant mortality rate (2003)--26.4/1,000. Life expectancy
at birth (2003)--70.6 years.
Work force (about 2.7 million, 2003): Agriculture--17.1%; services--19.8%;
commerce--28.8%; manufacturing--17.8%; construction--6.5%; transportation
and communication--4.5%; other--4.4%.
Government
Type: Republic.
Constitution: December 20, 1983.
Independence: September 15, 1821.
Branches: Executive--president and vice president. Legislative--84-member
Legislative Assembly. Judicial--independent (Supreme Court).
Administrative subdivisions: 14 departments.
Political parties (represented in the legislature): Farabundo
Marti National Liberation Front (FMLN), Nationalist Republican
Alliance (ARENA), National Conciliation Party (PCN), Christian
Democratic Party (PDC), and the United Democratic Center (CDU).
Suffrage: Universal at 18.
Economy
GDP (2004): Purchasing Power Parity $32.28 billion.
Annual growth rate (2003): 1.8%.
Per capita income (2003): $2,258. (PPP $4,800).
Agriculture (11% of GDP, 2003): Products--coffee, sugar, livestock,
corn, poultry, and sorghum. Arable, cultivated, or pasture land--64%.
Industry (24% of GDP, 2003): Types--textiles, food and beverage
processing, footwear and clothing, chemical products, petroleum
products, electronics.
Trade (2004): Exports--$3.3 billion: textiles, diverse manufactures,
coffee, sugar, and shrimp. Major markets--U.S. 65.4%, Central
American Common Market (CACM) 24.9%. Imports--$6.3 billion: consumer
goods, foodstuffs, capital goods, raw industrial materials, and
petroleum. Major suppliers--U.S. 46.3%, CACM 15.1%, Mexico 6.0%.
PEOPLE
El Salvador's population numbers about 6.6 million. Almost 90%
is of mixed Indian and Spanish extraction. About 1% is indigenous;
very few Indians have retained their customs and traditions. The
country's people are largely Roman Catholic and Protestant. Spanish
is the language spoken by virtually all inhabitants. The capital
city of San Salvador has about 1.7 million people; an estimated
42% of El Salvador's population live in rural areas.
HISTORY
In 1821, El Salvador and the other Central American provinces
declared their independence from Spain. When these provinces were
joined with Mexico in early 1822, El Salvador resisted, insisting
on autonomy for the Central American countries. In 1823, the United
Provinces of Central America was formed of the five Central American
states under Gen. Manuel Jose Arce. When this federation was dissolved
in 1838, El Salvador became an independent republic. El Salvador's
early history as an independent state--as with others in Central
America--was marked by frequent revolutions; not until the period
1900-30 was relative stability achieved. Following a deterioration
in the country's democratic institutions in the 1970s a period
of civil war followed from 1980-1992. More than 75,000 people
are estimated to have died in the conflict. In January 1992, after
prolonged negotiations, the opposing sides signed peace accords
which ended the war, brought the military under civilian control,
and allowed the former guerillas to form a legitimate political
party and participate in elections.
GOVERNMENT AND POLITICAL CONDITIONS
El Salvador is a democratic republic governed by a president and
an 84-member unicameral Legislative Assembly. The president is
elected by universal suffrage and serves for a 5-year term by
absolute majority vote. A second round runoff is required in the
event that no candidate receives more than 50% of the first round
vote. Members of the assembly, also elected by universal suffrage,
serve for 3-year terms. The country has an independent judiciary
and Supreme Court.
Political Landscape
Roberto D’Aubuisson and other hard-line conservatives, including
some members of the military, created the Nationalist Republican
Alliance party (ARENA) in 1981. D’Aubuisson's electoral
fortunes were diminished by credible reports that he was involved
in organized political violence. ARENA almost won the election
in 1984, with solid private sector and rural farmer support. By
1989, ARENA had attracted the support of business groups. Allegations
of corruption by the ruling Christian Democratic party, poor relations
with the private sector, and historically low prices for the nation’s
main agricultural exports also contributed to ARENA victories
in the 1988 legislative and 1989 presidential elections.
The successes of Alfredo Cristiani's 1989-94 administration
in achieving a peace agreement to end the civil war and in improving
the nation's economy helped ARENA--led by former San Salvador
mayor Armando Calderon Sol--keep both the presidency and a working
majority in the Legislative Assembly in the 1994 elections. ARENA's
legislative position was weakened in the 1997 elections, but it
recovered its strength, helped by divisions in the opposition,
in time for another victory in the 1999 presidential race that
brought President Francisco Guillermo Flores Perez to office.
A young and serious leader, Flores concentrated on modernizing
the economy and strengthening bilateral relations with the U.S.
by becoming a committed partner in anti-terror efforts, sending
troops to aid in the reconstruction of Iraq, and by playing a
key role in negotiations for the Central American Free Trade Agreement
(CAFTA).
Taking advantage of both public apprehension of
Flores’ policies and ARENA infighting, the chief opposition
party, the Farabundo Marti Liberation Front (FMLN), was able to
score a significant victory against ARENA in the March 2003 legislative
and municipal elections. The FMLN won control over 31 seats in
the 84-seat Legislative Assembly as well as a number of key mayorships
including those in most major population centers. ARENA, with
only 29 seats in the 84-seat Legislative Assembly, was forced
to court the right-wing National Conciliation Party (PCN), with
14 seats, in order to form a majority voting bloc. However, in
2003 the PCN entered into a loose partnership with the FMLN, further
limiting ARENA’s ability to maneuver in the legislature.
Despite these constraints, ARENA made a strong showing
at the March 2004 presidential election, which was marked by an
unprecedented 67% voter turnout. ARENA candidate Elias “Tony”
Saca handily defeated the FMLN candidate and party head Schafik
Handal, garnering 57.71% of the votes cast. Nevertheless, Saca
faced a complex political environment.
The defeat of FMLN’s presidential candidate
Schafik Handal rekindled an FMLN internal struggle between party
hardliners allied with Handal and more moderate party members
who saw the party’s 2004 defeat as a call for reform. In
addition, the PCN and the two parties that comprise the center/center-left
coalition, the United Democratic Center (CDU) and the Christian
Democratic Party (PDC), faced dissolution for failing to each
capture at least 3% of the votes. Members of all three parties,
whose deputies continued to hold seats in the legislature, publicly
discussed creating new parties or aligning with existing ones.
It remains to be seen how the reorganization of political parties,
or the internal disputes of the FMLN, will affect voting blocs
in the assembly.
El Salvador will hold legislative and municipal
elections on March 12, 2006.
Human Rights and Post-War Reforms
During the 12-year civil war, human rights violations by both
the government security forces and left-wing guerillas were rampant.
The accords established a Truth Commission under UN auspices to
investigate the most serious cases. The commission reported its
findings in 1993. It recommended that those identified as human
rights violators be removed from all government and military posts,
as well as recommending judicial reforms. Thereafter, the Legislative
Assembly granted amnesty for political crimes committed during
the war. Among those freed as a result were the Salvadoran Armed
Forces (ESAF) officers convicted in the November 1989 Jesuit murders
and the FMLN ex-combatants held for the 1991 murders of two U.S.
servicemen. The peace accords also established the Ad Hoc Commission
to evaluate the human rights record of the ESAF officer corps.
In accordance with the peace agreements, the constitution
was amended to prohibit the military from playing an internal
security role except under extraordinary circumstances. Demobilization
of Salvadoran military forces generally proceeded on schedule
throughout the process. The Treasury Police, National Guard, and
National Police were abolished, and military intelligence functions
were transferred to civilian control. By 1993--9 months ahead
of schedule--the military had cut personnel from a war-time high
of 63,000 to the level of 32,000 required by the peace accords.
By 1999, ESAF strength stood at less than 15,000, including uniformed
and nonuniformed personnel, consisting of personnel in the army,
navy, and air force. A purge of military officers accused of human
rights abuses and corruption was completed in 1993 in compliance
with the Ad Hoc Commission's recommendations. The military's new
doctrine, professionalism, and complete withdrawal from political
and economic affairs leave it the most respected institution in
El Salvador.
More than 35,000 eligible beneficiaries from among
the former guerrillas and soldiers who fought the war received
land under the peace accord-mandated land transfer program, which
ended in January 1997. The majority of them also have received
agricultural credits. The international community, the Salvadoran
Government, the former rebels, and the various financial institutions
involved in the process continue to work closely together to deal
with follow-on issues resulting from the program.
National Civilian Police
The civilian police force, created to replace the discredited
public security forces, deployed its first officers in March 1993,
and was present throughout the country by the end of 1994. The
National Civilian Police (PNC) has about 16,500 officers. The
United States, through the International Criminal Investigative
Training Assistance Program (ICITAP), led international support
for the PNC and the National Public Security Academy (ANSP), providing
about $32 million in non-lethal equipment and training since 1992.
Judiciary
Both the Truth Commission and the Joint Group identified weaknesses
in the judiciary and recommended solutions, the most dramatic
being the replacement of all the magistrates on the Supreme Court.
This recommendation was fulfilled in 1994 when an entirely new
court was elected, but weaknesses remain. The process of replacing
incompetent judges in the lower courts, and of strengthening the
attorney generals' and public defender's offices, has moved more
slowly. The government continues to work in all of these areas
with the help of international donors, including the United States.
Action on peace accord-driven constitutional reforms designed
to improve the administration of justice was largely completed
in 1996 with legislative approval of several amendments and the
revision of the Criminal Procedure Code--with broad political
consensus.
Principal Government Officials
President--Elias Antonio “Tony” SACA
Vice President--Ana Vilma Albanez DE ESCOBAR
Minister of Foreign Relations--Francisco LAINEZ
Ambassador to the United States--Rene Antonio Rodriguez LEON
Representative to the OAS--Margarita ESCOBAR Lopez
Representative to the UN--Victor Manuel LAGOS Pizzati
El Salvador maintains an embassy in the United States
at 2308 California Street NW, Washington, DC, 20008 (tel: 202-265-9671).
There are consulates in Chicago, Houston, Los Angeles, Miami,
New Orleans, New York, and San Francisco.
ECONOMY
The Salvadoran economy continues to benefit from a commitment
to free markets and careful fiscal management. The economy has
been growing at a steady and moderate pace since the signing of
peace accords in 1992, in an environment of improved investor
confidence and increased private investment. Much of the improvement
in El Salvador's economy is a result of free market policy initiatives
carried out by the ARENA governments, including the privatization
of the banking system, telecommunications, public pensions, electrical
distribution and some electrical generation, reduction of import
duties, elimination of price controls, and enhancing the investment
climate through measures such as improved enforcement of intellectual
property rights.
One of the biggest challenges in El Salvador has
been to manage the decline in the coffee sector, formerly the
backbone of the economy, and to develop new growth sectors for
a more diversified economy. The collapse of worldwide coffee prices
has caused substantial reduction in coffee production and decreased
rural employment. While as recently as 1988 coffee exports accounted
for more than half of export earnings, in 2004 they were 7.0%.
Moderate climate and a hard-working and enterprising labor pool
comprise El Salvador's greatest assets. El Salvador has sought
to leverage these assets in creating new export industries through
fiscal incentives for free trade zones, and currently there are
15 free trade zones in El Salvador. The largest beneficiary has
been the maquila industry, which directly provides 88,700 jobs,
and primarily consists of cutting and assembling clothes for export
to the United States. The apparel industry has greatly benefited
from the Caribbean Basin Trade Partnership Act, which allows these
goods to enter the United States duty free under certain conditions.
Moreover, the U.S.-Central America Free Trade Agreement (CAFTA),
negotiated by the five countries of Central America with the United
States in 2003, will make these benefits permanent.
El Salvador ratified the agreement in December 2004,
the first nation in Central America to do so. CAFTA will benefit
several important sectors of the economy, including the textile/apparel
industry, by expanding access to the U.S. market. CAFTA also provides
mechanisms to develop less competitive areas of the economy, including
agriculture, as the agreement is phased in.
Fiscal policy has been the biggest challenge for
the Salvadoran Government. The 1992 peace accords committed the
government to heavy expenditures for transition programs and social
services. Although international aid was generous, the government
has focused on improving the collection of its current revenues.
A 10% value-added tax (VAT), implemented in September 1992, was
raised to 13% in July 1995. The VAT is the biggest source of revenue,
accounting for about 52.3% of total tax revenues in 2004.
Remittances from Salvadorans working in the United
States sent to family members are a major source of foreign income
and offset the substantial trade deficit. Remittances transferred
through the banking system and, therefore, counted by the Central
Bank have increased steadily in the last decade and reached an
all-time high of $2.5 billion in 2004--approximately 17.1% of
gross domestic product (GDP). Beginning January 1, 2001, the Salvadoran
Government approved the “Monetary Integration” law
that made the U.S. dollar legal tender alongside the colón.
Dollars have gradually replaced colónes, which are no longer
printed. In practice the economy has become dollarized, with the
colón only used in isolated rural areas.
El Salvador obtains concessional loans for development
projects from the World Bank, Inter-American Development Bank,
the Bank for Central American Integration, and certain other international
institutions. Starting in August 1999, El Salvador also has sold
bonds in private international financial markets. These sales
have been used to fund Salvadoran Government operations. El Salvador’s
external debt in February 2005 was about $4.8 billion.
Natural Disasters
El Salvador suffered from two earthquakes at the beginning of
2001 and from Hurricane Mitch in 1998. Hurricane Mitch hit El
Salvador in late October 1998, generating extreme rainfall of
which caused widespread flooding and landslides. Roughly 65,200
hectares were flooded, and 374 people were either killed or remain
missing. The areas that suffered the most were the low-lying coastal
zones, particularly in the floodplain of the Lempa and San Miguel
Grande Rivers.
Reconstruction from Mitch was still underway when
in January and February 2001 the country experienced two devastating
earthquakes that left nearly 2,000 people dead or missing, 8,000
injured, and caused severe dislocations across all sectors of
Salvadoran society. Nearly 25% of all private homes in the country
were either destroyed or badly damaged, and 1.5 million persons
were left without housing. Hundreds of public buildings were damaged
or destroyed, and sanitation and water systems in many communities
put out of service. The total cost of the damage was estimated
at between $1.5 billion and $2 billion.
Response
The Hurricane Mitch disaster prompted a tremendous response from
the international community governments, nongovernmental organizations,
and private citizens alike. The U.S. Government has provided $37.7
million in assistance through USAID and the U.S. Departments of
Agriculture and Defense.
Following the 2001 earthquakes, the U.S. Government
responded immediately to the emergency, with military helicopters
active in initial rescue operations, delivering emergency supplies,
rescue workers, and damage assessment teams to stricken communities
all over the country. USAID's Office of Foreign Disaster Assistance
had a team of experts working with Salvadoran relief authorities
immediately after both quakes, and provided assistance totaling
more than $14 million. In addition, the Department of Defense
provided an initial response valued at more than $11 million.
For long-term reconstruction, the international community offered
a total aid package of $1.3 billion, more than $168 million of
it from the United States.
Manufacturing
El Salvador historically has been the most industrialized nation
in Central America, though a decade of war eroded this position.
The industrial sector has shifted since 1993 from a primarily
domestic orientation to include free zone manufacturing for export.
Maquila exports have led the growth in the export sector and have
made an important contribution to the Salvadoran economy. Currently,
manufacture industry accounts for nearly 24% of the GDP.
Trade
Exports in 2004 grew 5.3% while imports grew 8.9%. As in previous
years, the large trade deficit was offset by family remittances.
El Salvador is pursuing an aggressive strategy to increase exports,
especially manufactured and nontraditional products, and to attract
foreign investment. The negotiation of trade agreements such as
CAFTA that reduce trade and investment barriers is a central part
of this effort.
El Salvador has already signed free trade agreements
with Mexico, Chile, the Dominican Republic, and Panama, and increased
its exports to those countries. El Salvador, Guatemala, Honduras,
and Nicaragua also are negotiating a free trade agreement with
Canada. The five Central American countries are working towards
a construction of a Customs Union, and they have already harmonized
their customs duties and most products.
U.S. support for El Salvador's privatization of
the electrical and telecommunications markets markedly expanded
opportunities for U.S. investment in the country. More than 300
U.S. companies have established either a permanent commercial
presence in El Salvador or work through representative offices
in the country. The Department of Commerce maintains a Country
Commercial Guide for U.S. businesses seeking detailed information
on business opportunities in El Salvador.
FOREIGN RELATIONS
El Salvador is a member of the United Nations and several of its
specialized agencies, the Organization of American States (OAS),
the Central American Common Market (CACM), the Central American
Parliament, and the Central American Integration System. It actively
participates in the Central American Security Commission (CASC),
which seeks to promote regional arms control. From 2002-03, El
Salvador was chair of the OAS anti-terrorism coordinating body,
CICTE. El Salvador also is a member of the World Trade Organization
and is pursuing regional free trade agreements. An active participant
in the Summit of the Americas process, El Salvador chairs a working
group on market access under the Free Trade Area of the Americas
initiative. El Salvador has joined its six Central American neighbors
in signing the Alliance for Sustainable Development, known as
the Conjunta Centroamerica-USA or CONCAUSA to promote sustainable
economic development in the region.
El Salvador enjoys normal diplomatic and trade relations
with all of its neighboring countries including Honduras, with
which it has previously had territorial disputes. While the two
nations continue to disagree over the status of their maritime
borders in the Gulf of Fonseca, they have agreed to settle their
land-border disputes with the International Court of Justice (ICJ).
In September 1992, the Court awarded most of the territory in
question to Honduras. In January 1998, Honduras and El Salvador
signed a border demarcation treaty to implement the terms of the
ICJ decree although delays continue due to technical difficulties.
U.S.-SALVADORAN RELATIONS
U.S.-Salvadoran relations remain close and strong. U.S. policy
toward El Salvador seeks to promote the strengthening of El Salvador's
democratic institutions, rule of law, judicial reform, and civilian
police and national reconciliation and reconstruction, economic
opportunity, and growth. El Salvador has been a committed member
of the coalition of nations fighting against terrorism, and has
also provided a battalion to the efforts to bring stability to
Iraq.
U.S. ties to El Salvador are dynamic and growing.
More than 12,000 American citizens live and work full-time in
El Salvador. Most are private businesspersons and their families,
but a small number of American citizen retirees have been drawn
to El Salvador by favorable tax conditions. The Embassy's consular
section provides the full range of visa, passport, federal benefit,
absentee voting, and related citizenship services to this community.
The American Chamber of Commerce in El Salvador is located at
World Trade Center, Torre 2, local No. 308, 89 Av. Nte. Col. Escalón,
phone: 264-9393, fax: 263-9393.
Principal U.S. Embassy Officials
Ambassador--H. Douglas Barclay
Deputy Chief of Mission--Michael Butler
USAID Mission Chief--Mark Silverman
Political Counselor--Carlos Garcia
Economic Counselor--Jessica Webster
Commercial Officer--Daniel Thompson
Public Affairs Officer--Donna Roginski
The U.S. Embassy in El Salvador is located at Final
Blvd. Santa Elena, Antiguo Cuscatlán, La Libertad (phone:
011-503-278-4444; fax: 011-503-278-6011).
Other Contact Information
U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution Avenue, NW
Washington, DC 20230
Tel: 202-482-1658; 1-(800) USA-TRADE
Fax: 202-482-0464
Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: 202-466-7464
Fax: 202-822-0075
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers.
Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling
abroad may be obtained from the Office of Overseas Citizens Services
at (202) 647-5225. For after-hours emergencies, Sundays and holidays,
call 202-647-4000.
The National Passport Information Center (NPIC)
is the U.S. Department of State's single, centralized public contact
center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators
for TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m.,
Eastern Time, excluding federal holidays.
Travelers can check the latest health information
with the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site
at http://www.cdc.gov/travel/index.htm give the most recent health
advisories, immunization recommendations or requirements, and
advice on food and drinking water safety for regions and countries.
A booklet entitled Health Information for International Travel
(HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements,
currency and customs regulations, legal holidays, and other items
of interest to travelers also may be obtained before your departure
from a country's embassy and/or consulates in the U.S. (for this
country, see "Principal Government Officials" listing
in this publication).
U.S. citizens who are long-term visitors or traveling
in dangerous areas are encouraged to register their travel via
the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related
assistance and market information offered by the federal government
and provides trade leads, free export counseling, help with the
export process, and more.
STAT-USA/Internet, a service of the U.S. Department
of Commerce, provides authoritative economic, business, and international
trade information from the Federal government. The site includes
current and historical trade-related releases, international market
research, trade opportunities, and country analysis and provides
access to the National Trade Data Bank.
