El Salvador

Children play at Escuela Federal Centroamericana, a school built by USAID in Usulutan, eastern El Salvador. USAID supports child health and basic education.

Overview

El Salvador’s improved health statistics and per capita GDP reflect the country’s progress. El Salvador continues to demonstrate social and economic resil-iency in the face of significant challenges–including effects of the global economic crisis in late 2008 and recent natural disasters.

As a net importer of fuel and food, El Salvador was hit hard by record food and fuel prices. Over half of El Salvador’s trade is with the U.S. Exports from El Salvador decreased 22 percent as a result of the U.S. economic downturn. The country experienced heavy rainfall in November 2009. The resulting floods and mudslides affected much of the nation and put further strain on government resources. Many lives were lost and people displaced. Agricultural land, farm equipment, and livestock were destroyed. USAID and the U.S. military provided immediate humanitarian assistance and continue to work with the Government of El Salvador (GOES) on medium and long-term recovery efforts.

El Salvador has made many development gains. Until the economic crisis, the economy had grown at a steady rate and had even exceeded expectations. Factors that contributed to this growth include increased coffee, sugar, and non-traditional exports; family remittances and tourism income; and new investments in services. As further evidence of the country’s progress, the GOES signed a five-year, $461 million anti-poverty compact with the Millennium Challenge Corporation.

Nevertheless, the country continues to face daunting impediments to development such as high levels of rural poverty, vulnerability to natural disasters, and an economy that falls short of providing a sufficient number of employment opportunities to keep the population gainfully employed. Additionally, El Salvador has one of the region’s highest homicide rates, largely attributable to gangs. There is broad consensus that another critical challenge is the one of reducing political polarization.

USAID programs in El Salvador endeavor to create economic opportunities, promote a more transparent and efficient judiciary, support government accountability, and improve quality and access to basic healthcare and education. USAID also supports GOES efforts in combating gangs through activities that assist at-risk youth. USAID actively builds public-private alliances to sustain program efforts aimed at achieving these results.

Programs

Governing Justly & Democratically

USAID’s governing justly and democratically programs help restore the rule of law and citizen confidence in the justice system and state institutions in El Salvador. USAID supports reforms to improve the criminal justice system and stimulate more effective community partnerships with business and government to prevent crime and offer youth alternatives to gangs. The program helps increase the use of alternative dispute resolution to reduce congestion in the formal judicial system. Government ethics and anti-corruption programs promote greater transparency, accountability, and more responsive governance. USAID’s Community-based Crime and Violence Prevention program assists communities in finding tailored solutions to combat risk factors that could lead to gang activity among youth.

Economic Growth

USAID works with the GOES and the private sector to increase trade, support job creation, and promote economic opportunities for small and medium businesses, as well as to support successful implementation of the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR).
The program fosters statutes that promote trade and investment, such as sound fiscal policies needed to increase government funding to social investments.  Trade capacity building activities increase productivity and efficiency of small and medium enterprises.  In addition, the program strengthens Salvadoran capacity to manage and conserve watersheds, protect biodiversity in and around protected areas, and enhance the ability of households living in key watersheds to diversify their incomes.  Through a new, short-term program, USAID will assist vulnerable populations severely affected by the global financial crisis.  The program will provide conditional cash transfers and temporary employment primarily targeted to youth and women, as well as expanded vocational training opportunities.

Investing In People

USAID assists the GOES in increasing social sector investment and transparency and investing in health and education.  Health programs focus on improving maternal, child, and infant health through expanded outreach to poor areas. This includes expanding access to and improvement of quality child and reproductive health services. In addition, USAID’s program works to reduce HIV transmission among high-risk groups by promoting behavior change. Education programs strengthen teacher training, assist with materials development and focus on improved student academic achievement. This also includes improving the quality, equity, and efficiency of basic education in poor underserved areas.