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El Salvador
Trading Partner: ACOES 
Country Statistics
- Total Population: 5.7 million (2008)
- Life Expectancy at birth: 72 years (2008)
- Per capita income (power purchasing parity): 5,842 USD (2007)
- Ethnicities:
-Mestizo (90%), Indigenous (1%), Caucasian (9%) - Language: Spanish
- Major export products: textiles and apparel, alcohol, coffee, sugar
Overview
El Salvador is the smallest country in Central America with an area size slightly smaller than the state of Massachusetts. However, it is also the most densely populated state of the Americas with approximately 340 inhabitant per square km. It declared its independence from Spain in 1821 and ratified its constitution on December 20th 1983.
The recent history of the Republica de El Salvador is one of hardships and challenges. In the eighties began one of the most violent civil wars even to take place in Central America. Mgr Romero, the Archbishop of the country at that time, took the peasant side in what became the polarization struggle between imperialists and socialists. Unhappy with the decision of the Church following Romero, the pro-American and free-market government that was in power at that time ordered Romero’s assassination. However, instead of having the taming effect the government thought it would have on the revolutionary population, it unleashed the rebellion of the masses. The opposition front known as the FMLN (Farabundo Martí National Liberation) led the movement, organizing small battalions that regrouped peasants, students, and other marginalized groups. Though Mgr Romero had been murdered in the main capital of San Salvador, the epicentre of the struggle drifted to the mountainous North-East departments bordering Honduras.
The civil war left dreadful scars among the population. The United Nations intervened in 1992 in order to have the two fronts sign a peace agreement. However, 70 000 people lost their lives due to the struggle and the country was left divided. Unfortunately, the small country had yet to face the fury of a force greater than gun-fire. In 1998, hurricane Mitch wiped out parts of the country, ravaging houses and yields without mercy. In addition, a series of important earthquakes in 2001 caused its fair share of damage.
These misfortunes resulted in the introduction of IMF’s Structural Adjustment Programs targeting the export industry in order to revive the weakened economy. One of the conditions imposed by the American firm was to introduce the American currency in the country and instate a dual currency economy with the Salvadorian colon. All the advantages the use of the dollar represented for government and its more well-off population had for consequence the dominance of the American dollar over the national currency. The colon eventually became obsolete and disappeared from the market. The outcomes of this economic policy would prove to be deleterious for the low-income population facing difficulties matching the currency difference. In addition, the actual presidency favoring free-market and privatization makes it harder for the poor to get help from their government.
Nowadays, it is more profitable for Salvadorians to emigrate to the United States for work than to linger in their home country with slim opportunities. Salvadorian Fair Trade coffees present a salutary means of reviving the economy of the Northern highlands, past theater of civil war hostilities. By awarding fairer wages to the small producers, it allows them to safeguard their yields from the multinational exporters knocking at their doors.
Resources:
BBC News Channel, Country Profile El Salvador
US State Department Country Background Notes
