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- U.S. DEPARTMENT OF STATE
- BACKGROUND NOTES: EL SALVADOR
- PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
- NOVEMBER 1994
-
- Official Name: Republic of El Salvador
-
- PROFILE
-
- Geography
- Area: 21,476 sq. km. (8,260 sq. mi.); about the size of Massachusetts.
- Cities: Capital--San Salvador (pop. 1.4 million). Other cities--Santa
- Ana, San Miguel.
- 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: 5 million.
- Annual growth rate (1993): 2.2%.
- Ethnic groups: Mestizo 89%, indigenous 10%, Caucasian 1%.
- Religion: Largely Roman Catholic, with growing Protestant groups
- throughout the country.
- Language: Spanish.
- Education: Years compulsory--6. Attendance--82%. Literacy--65% among
- adults.
- Health: Infant mortality rate (1993)--47/1,000. Life expectancy
- (1993)--males 64 yrs., females 65 yrs.
- Work force (2.5 million): Agriculture--40%. Services--25%. Industry--
- 19%. Other--16%.
-
- 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: Nationalist Republican Alliance (ARENA), Farabundo
- Marti National Liberation Front (FMLN), Christian Democratic Party
- (PDC), National Conciliation Party (PCN), Democratic Convergence (CD),
- Unity Movement (MU).
- Suffrage: Universal at 18.
-
- Economy (1993)
- GDP: $7.6 billion.
- Annual growth rate: 5%.
- Per capita income: $1,494.
- Agriculture (9% of GDP): Products--coffee (30% of agricultural output),
- sugar, livestock, corn, poultry, sorghum. Arable, cultivated, or
- pasture land--67%.
- Industry (19% of GDP): Types--food and beverage processing, textiles,
- footwear and clothing, chemical products, petroleum products.
- Trade: Exports--$732 million: coffee, sugar, textiles and shrimp.
- Partners--U.S. 29%, Central American Common Market (CACM) 42%, European
- Union (EU) 16%, Japan 2%. Imports--$1.9 billion: consumer goods,
- foodstuffs, capital goods, raw industrial materials, petroleum.
- Partners--U.S. 44%, CACM 17%, EU 10%, Mexico 5.8%, Venezuela 5%.
- Exchange rate (1994 avg.): 8.7 colones=U.S. $1.
-
-
- PEOPLE AND HISTORY
-
- El Salvador's population numbers about 5 million; almost 90% is of mixed
- Indian and Spanish extraction. About 10% is indigenous; very few
- Indians have retained their customs and traditions. The country's
- people are largely Roman Catholic--though Protestant groups are growing-
- -and Spanish is the language spoken. The capital city of San Salvador
- has about 1.4 million people; an estimated 58% of El Salvador's
- population lives in rural areas.
-
- Before the Spanish conquest, the area that is now El Salvador was made
- up of two large Indian states and several principalities. The
- indigenous inhabitants were the Pipils, a tribe of nomadic Nahua people
- long established in Mexico. Early in their history, they became one of
- the few Mesoamerican Indian groups to abolish human sacrifice.
- Otherwise, their culture was similar to that of their Aztec neighbors.
- Remains of Nahua culture are still found at ruins such as Tazumal (near
- Chalchuapa), San Andres (northeast of Armenia), and Joya De Ceren (north
- of Colon).
-
- The first Spanish attempt to subjugate this area failed in 1524, when
- Pedro de Alvarado was forced to retreat by Pipil forces. In 1525, he
- returned and succeeded in bringing the district under control of the
- Captaincy General of Guatemala, which retained its authority until 1821
- despite an abortive revolution in 1811.
-
- Independence
-
- 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. Guatemalan troops sent to enforce the
- union were driven out of El Salvador in June 1822. El Salvador, fearing
- incorporation into Mexico, petitioned the U.S. Government for statehood.
-
- But in 1823, a revolution in Mexico ousted Emperor Augustin Iturbide,
- and a new Mexican congress voted to allow the Central American provinces
- to decide their own fate. That year, 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 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. The economic elite ruled the
- country in conjunction with the military, and the power structure was
- controlled by a relatively small number of wealthy landowners, known as
- "the 14 Families." The economy, based on coffee-growing, prospered or
- suffered as the world coffee price fluctuated.
-
- From 1932--the year of Gen. Maximiliano Hernandez Martinez's coup
- following his brutal suppression of rural resistance--until 1980, every
- Salvadoran President was an army officer. The one exception was a
- provisional executive who served for four months. Periodic presidential
- elections were seldom free or fair.
-
- From Military to Civilian Rule
-
- During the 1970s, the political, social, and economic situation began to
- deteriorate. The military leadership created its own party, the
- National Conciliation Party (PCN), which nominated Col. Arturo Molina in
- the 1972 presidential election. The opposition united under Jose
- Napoleon Duarte, leader of the Christian Democratic Party (PDC). Amid
- widespread fraud, Duarte's broad-based reform movement was defeated.
- Subsequent protests and an attempted coup were crushed, and Duarte was
- exiled. These events eroded hope of reform through democratic means and
- persuaded many opponents of military rule that armed insurrection was
- the only way to achieve change. Leftist groups capitalizing upon social
- discontent gained strength. By 1979, guerrilla warfare had broken out
- in the cities and the countryside, launching what became a 12-year civil
- war.
-
- The cycle of violence accelerated as rightist vigilante "death squads"
- killed thousands. The poorly trained Salvadoran Armed Forces (ESAF)
- also engaged in repression and indiscriminate killings. The country's
- antiquated judicial system was unable to cope with the lawlessness.
- Opposition to the government's agrarian reform program fed rural
- conflict. After the 1979 collapse of the Somoza regime in Nicaragua,
- the new Sandinista government provided large amounts of arms and
- munitions to five Salvadoran guerrilla groups, and a military victory by
- the guerrillas appeared possible.
-
- On October 15, 1979, reform-minded military officers and civilian
- leaders ousted the right-wing government of Gen. Carlos Humberto Romero
- (1977-79) and formed a revolutionary junta. PDC leader Duarte joined
- the junta in March 1980, leading the provisional government until the
- elections of March 1982. The junta initiated a land reform program and
- nationalized the banks and the marketing of coffee and sugar. Political
- parties were allowed to function again, and on March 28, 1982,
- Salvadorans elected a new constituent assembly. Following that
- election, authority was peacefully transferred to Alvaro Magana, the
- provisional president selected by the assembly.
-
- The 1983 constitution, drafted by the assembly, strengthened individual
- rights; established safeguards against excessive provisional detention
- and unreasonable searches; established a republican, pluralistic form of
- government; strengthened the legislative branch; and enhanced judicial
- independence. It also codified labor rights, particularly for
- agricultural workers. The newly initiated reforms, though, did not
- satisfy the guerrilla movements, which had unified under Cuban auspices
- as the Farabundo Marti National Liberation Front (FMLN).
-
- Duarte won the 1984 presidential election against Roberto D'Aubuisson of
- the Nationalist Republican Alliance (ARENA) with 54% of the vote and
- became the first freely elected president of El Salvador in more than 50
- years. Legislative and municipal elections were held in 1985 and 1988.
-
- In 1989, ARENA's Alfredo Cristiani won the presidential election with
- 54% of the vote. His inauguration on June 1, 1989, marked the first
- time in decades that power had passed peacefully from one freely elected
- civilian leader to another.
-
- In 1990, reform of the electoral system expanded the assembly from 60 to
- 84 deputies in order to broaden the base of representation from the
- smaller parties and increase the opportunity for the parties of the left
- to win office. In the March 1991 assembly election, ARENA lost its
- majority in the Legislative Assembly, winning only 39 seats. The PDC
- took 26 seats, the PCN nine, the Democratic Convergence (CD) eight, and
- two small parties one each.
-
- Ending the Civil War
-
- Upon his inauguration in June 1989, President Cristiani called for
- direct dialogue to end the decade of conflict between the government and
- guerrillas. An unmediated dialogue process involving monthly meetings
- between the two sides was initiated in September 1989, lasting until the
- FMLN launched a bloody, nationwide offensive in November that year.
-
- In early 1990, following a request from the Central American presidents,
- the UN became involved in an effort to mediate direct talks between the
- two sides. After a year of little progress, the government and the FMLN
- accepted an invitation from the UN Secretary General to meet in New York
- City. On September 25, 1991, the two sides signed the New York City
- Accord. It concentrated the negotiating process into one phase and
- created the Committee for the Consolidation of the Peace (COPAZ), made
- up of representatives of the government, FMLN, and political parties,
- with Catholic Church and UN observers.
-
- On December 31, 1991, the government and the FMLN initialed a peace
- agreement under the auspices of Secretary-General Perez de Cuellar. The
- final agreement, called the Accords of Chapultepec, was signed in Mexico
- City on January 16, 1992. A nine-month cease-fire took effect February
- 1, 1992, and was never broken. On December 15, 1992, world dignitaries-
- -including UN Secretary General Boutros Boutros-Ghali and then-Vice
- President Quayle--attended a ceremony marking the official end of the
- conflict, concurrent with the demobilization of the last elements of the
- FMLN military structure and the FMLN's inception as a political party.
-
-
- GOVERNMENT AND POLITICAL CONDITIONS
-
- El Salvador is a democratic republic governed by a president and an 84-
- member Legislative Assembly. The president is elected by universal
- suffrage and serves for a five-year term. Members of the assembly, also
- elected by universal suffrage, serve for three-year terms. The country
- has an independent judiciary and Supreme Court.
-
- In March 1994, the first post-civil war elections were held, featuring
- simultaneous presidential, legislative, and municipal races. The FMLN
- participated in those elections and emerged as the second-largest
- political party in El Salvador. ARENA won 39 seats in the Legislative
- Assembly, the FMLN won 21 seats, the PDC 18, the PCN four, and the CD
- and Unity Movement (MU) one each. ARENA presidential candidate Armando
- Calderon Sol faced FMLN-CD coalition candidate Ruben Zamora in a runoff
- in April and won with 68% of the vote. UN observers declared the
- elections free and fair. Armando Calderon Sol of the ARENA party began
- his five-year term as President on June 1, 1994, and cannot succeed
- himself.
-
- Political Parties and Other Groups
-
- ARENA is El Salvador's leading political party. It was created in 1982
- by Roberto D'Aubuisson and other ultra-rightists, including some from
- the military. His electoral fortunes were diminished by credible
- reports that he was involved in organized political violence. Following
- D'Aubuisson's defeat by Jose Napoleon Duarte in the 1984 presidential
- election, ARENA began reaching out to more moderate individuals and
- groups, particularly in the private sector.
-
- By 1989, ARENA had attracted the support of business groups and
- nominated Alfredo Cristiani--a moderate businessman and coffee grower--
- as its presidential candidate. ARENA was thus well positioned to
- benefit from popular discontent with the 1984-89 Duarte administration.
- Despite sincere efforts at reform by Duarte's PDC administration,
- failure to either end the insurgency or improve the economy, allegations
- of corruption, poor relations with the private sector, and historically
- low prices for the nation's main agricultural exports contributed to
- ARENA victories in the 1988 legislative elections and the 1989
- presidential elections.
-
- In 1994, ARENA put well-known businessman Enrique Borgo Bustamante on
- the ticket as Calderon Sol's running mate in an effort to further
- bolster its moderate, pro-business image. The 1989-94 Cristiani
- administration's successes in achieving a peace agreement to end the
- civil war and in improving the nation's economy helped ARENA keep both
- the presidency and a working majority in the Legislative Assembly in the
- 1994 elections. ARENA has benefited from having been the governing
- party when peace came to El Salvador, and Calderon Sol has emphasized
- his commitment to carrying out the remaining elements of the peace
- accords.
-
- The FMLN became a political party in December 1992 and immediately
- supplanted the CD as El Salvador's leading party of the political left.
- It is composed of five factions that do not always agree, sometimes
- leading to very public ruptures. Nevertheless, the FMLN maintained a
- united front during the 1994 electoral campaign and joined with the CD
- and National Revolutionary Movement (MNR) to support CD Secretary
- General Ruben Zamora for president.
-
- This coalition succeeded in keeping Calderon Sol from winning 50% in the
- first round and thus established itself as the sole alternative to ARENA
- in the second round. The FMLN also came in second in the assembly
- races. As the main opposition party, the FMLN now faces the challenge
- of resolving its internal political differences or eventually seeing
- some of its factions reposition themselves as Social Democrats, perhaps
- in alliance with other left-of-ARENA parties.
-
- Besides ARENA and the FMLN, other political parties in El Salvador also
- play important roles: the PDC, which still has broad support throughout
- the country, winning more municipal elections in 1994 than did the FMLN;
- the PCN, created by the Salvadoran military and in decline but allied
- with ARENA in the assembly; the CD, allied with the FMLN in the
- assembly; and the MU, a party based in the Salvadoran evangelical
- movement.
-
- Labor unions, the universities, and the Catholic Church play major roles
- in the Salvadoran political system. Two main labor umbrella groups
- represent most of El Salvador's 300,000 organized workers. The
- Democratic National Union of Peasants and Workers (UNOC) represents some
- 250,000 workers, and its leadership is closely linked to the PDC. The
- National Union of Salvadoran Workers (UNTS) represents about 55,000
- workers and other supporters. Four members of the UNTS executive
- committee were among the official founders of the FMLN political party,
- and the UNTS usually hews to the FMLN line in political matters.
-
- The national University of El Salvador (UES) has also been heavily
- influenced by the FMLN. UES was closed by the military from 1980 until
- 1984, when it was reopened by President Duarte; it also was closed for
- several months in the aftermath of the November 1989 offensive. A
- number of private universities, including the Jesuit-run University of
- Central America, also operate in El Salvador.
-
- Since the late 1970s, when Archbishop Romero (assassinated in 1980)
- called for an end to repression and for social justice, the Catholic
- Church has been a vocal and aggressive advocate of peace. The Church
- mediated a 1984 dialogue between the government and the guerrillas and
- the release of then-President Duarte's daughter, whom the guerrillas had
- abducted.
-
- Compliance With the Peace Accords
-
- The peace process set up under the Chapultepec Accords has been
- monitored by the UN Mission to El Salvador, known by its Spanish acronym
- ONUSAL. The mission's observers were divided into four contingents--
- monitoring human rights, military, police, and electoral issues. At its
- peak, ONUSAL had close to 1,000 observers in the country. A reduced
- ONUSAL presence has been authorized through November 1994.
-
- The peace accords included a two-year timetable to complete different
- aspects of the agreement (see box for some key provisions of the
- accords); progress has been made in carrying out most aspects of the
- peace accords.
-
- Human Rights. During the 12-year civil war, human rights violations by
- both left- and right-wing forces were rampant. There were incidents of
- political killings, torture of detainees, arbitrary arrest, and forced
- recruitment by the ESAF. There were also cases of killings, kidnapings,
- abuse of non-combatants, intimidation of civilians, and forced
- recruitment by the FMLN. Right-wing death squads took advantage of this
- chaotic environment to engage in political assassinations. Many
- individuals and institutions acted with virtual impunity from a judicial
- system burdened with corruption and overwhelmed by the magnitude of the
- bloodshed.
-
- The 1992 peace accords established a Truth Commission under UN auspices
- to investigate the most serious cases of human rights abuses committed
- during the civil war. The commission reported its findings on prominent
- human rights cases on March 15, 1993. It recommended removal from all
- government and military posts of those identified as human rights
- violators and recommended reforms of the Salvadoran judiciary. On March
- 20, the Legislative Assembly approved amnesty from criminal prosecution
- for all those implicated in the Truth Commission report. Among those
- freed from jail as a result were the ESAF officers convicted in the 1989
- Jesuit murders and the FMLN ex-combatants who were being held for the
- 1991 killings of two U.S. servicemen.
-
- The peace accords also required the establishment of an Ad Hoc
- Commission to evaluate the human rights record, professional competence,
- and commitment to democracy of the ESAF officer corps. On June 30,
- 1993, the last of 103 officers identified by this commission as
- responsible for human rights violations were removed from active duty in
- the ESAF, and they were formally retired at the end of December. ONUSAL
- declared the government in compliance with the Ad Hoc Commission
- recommendations.
-
- There has been a dramatic decline in political killings since the
- signing of the peace accords in January 1992, but common crime presents
- a growing problem. The frequent inability of the police and judicial
- authorities to resolve criminal cases has often left unanswered whether
- some killings may have been politically motivated. In December 1993, a
- United Nations-Government of El Salvador Joint Group was established to
- investigate whether illegal, armed, politically motivated groups
- continued to exist in El Salvador after January 1992.
-
- The Joint Group reported its findings on July 28, 1994. It found that
- some groups and persons in El Salvador continue to resort to the use of
- violence in order to obtain political results. It did not, however,
- find that war-era death squads were still functioning, instead
- suggesting that there had been an evolution from politically motivated
- death squads to organized crime groups. The Joint Group recommended
- that a special unit be created in the National Civilian Police (PNC) to
- investigate political and organized crime and that further reforms be
- made in the judicial system and the ESAF. The Calderon Sol
- administration has promised to carry out the Joint Group's
- recommendations.
-
- The peace accords also established the autonomous Human Rights
- Ombudsman's Office, which had established regional offices in most of El
- Salvador's departments by September 1994. The ombudsman's office is
- scheduled to assume all of the responsibilities of ONUSAL's human rights
- division by late 1994.
-
- Military Reform. Demobilization of Salvadoran military forces generally
- proceeded on schedule throughout the process. The Treasury Police and
- National Guard were abolished, and the intelligence service was
- transferred to civilian control. By February 1993, the military had
- lowered force levels from a wartime high of 63,000 to the level of
- 32,000 required in the peace accords; this was achieved nine months
- ahead of schedule. As noted, the required purge of military officers
- accused of human rights abuses and corruption was completed at the end
- of 1993 in compliance with the Ad Hoc Commission's recommendations.
-
- National Civilian Police. The new civilian police force, created to
- replace the several discredited former public security forces, was
- deployed in all departments by the end of 1994, but it is not expected
- to reach its required force levels until late 1995. The old National
- Police, the only former police force still in existence, is scheduled to
- be completely demobilized by the end of 1994.
-
- Judiciary. In July 1994, a new Supreme Court was unanimously elected by
- the assembly after protracted negotiations. No members of the old court
- were returned to office, belatedly fulfilling the recommendation of the
- Truth Commission that the entire Supreme Court leave office.
-
- Land Transfers. Land transfers have taken place more slowly than
- expected. There have been difficulties in a number of areas, such as
- getting enough funding to purchase from private owners the lands to be
- used in the transfer program and securing enough funding for
- agricultural credits for the land recipients. Despite this, significant
- progress has been made. Thousands of families have received land and
- 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 bring the
- process to a successful conclusion.
-
- Principal Government Officials
- President--Armando Calderon Sol
- Vice President--Enrique Borgo Bustamante
- Minister of Foreign Relations--Oscar Alfredo Santamaria
- Ambassador to the United States--Ana Cristina Sol
- Representative to the OAS--Jose Roberto Andino Salazar
- Representative to the UN--Ricardo Guillermo Castaneda Cornejo
-
- 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 reap the benefits of sound economic
- programs, a commitment to a free economy, and careful fiscal management.
- The impact of the civil war on El Salvador's economy was devastating;
- from 1979 to 1990, losses from damage to infrastructure and means of
- production due to guerrilla sabotage as well as from reduced export
- earnings totaled about $2.2 billion. But since attacks on economic
- targets ended in 1992, improved investor confidence has led to increased
- private investment. Rich soil, moderate climate, and a hard-working and
- enterprising labor pool comprise El Salvador's greatest assets.
-
- Much of the improvement in El Salvador's economy is due to free market
- policy initiatives launched by the Cristiani government in July 1989.
- Reforms included:
-
- -- Elimination of price controls on 240 consumer products;
-
- -- Breakup of government and government-sanctioned monopolies over the
- export of coffee, sugar, and cotton;
-
- -- Reduction of import duties;
-
- -- Elimination of non-tariff barriers;
-
- -- Adoption of a free-market exchange rate system;
-
- -- Maintenance of positive real interest rates; and
-
- -- Reduction of the fiscal deficit.
-
- In July 1992, after a long political struggle, the Legislative Assembly
- passed a law establishing a 10% value added tax. This year, the
- government essentially has completed its privatization of the banking
- system and passed a law detailing the operations of the already
- functioning stock market; it soon will establish a commodities market.
- The Calderon Sol administration also is committed to privatizing
- telecommunications and port services and to expanding transportation
- infrastructure.
-
- In 1993, the service and construction sectors led El Salvador's economy
- to a real GDP growth rate of 5%, and GDP ended at $7.62 billion for the
- year. Disappointing agricultural performance, however, slightly
- dampened the overall recovery; the contribution of coffee to the
- economy--30% of agricultural output--fell in 1993 because of decreased
- yields. Inflation was 12% in 1993, down from 20% the year before. The
- economic outlook for 1994 is for growth of 5.5%, with inflation dropping
- to 10%. Income from coffee is expected to recover in 1994 due to six-
- year highs in international prices.
-
- In mid-1994, the nation had net international reserves of $840 million,
- equal to roughly four months of imports. This compares to $650 million
- at the end of 1993. The exchange rate--officially described as free-
- floating and determined by the market--has remained at about 8.7 colones
- per U.S. dollar since early 1993.
-
- Foreign Debt and Assistance
-
- During the civil war, international lending institutions were reluctant
- to make loans to El Salvador, so the country never acquired a large
- international debt. Since the war, El Salvador has continued to pursue
- a conservative debt posture. Most of its roughly $1.8 billion debt is
- to multilateral lending institutions.
-
- Since 1990, the Salvadoran Government's economic program has received
- strong support from international financial institutions and other
- lenders. In 1993, the International Monetary Fund approved a 12-month
- standby agreement which paved the way for a rescheduling of $135 million
- of El Salvador's Paris Club debt to official creditors. The World Bank
- approved a $75-million structural adjustment loan. In December 1992,
- the U.S. Government reduced bilateral debt with El Salvador by 75%--from
- $617 million to $151 million--under provisions of the Enterprise for the
- Americas Initiative.
-
- Foreign assistance plays an important role in the Salvadoran economy,
- helping to finance the balance-of-payments gap and providing funds to
- the capital budget for public sector infrastructure-development
- projects. At a March 1993 meeting held in Paris, the international
- community pledged $800 million in loans and donations for reconstruction
- in El Salvador.
-
- Manufacturing
-
- El Salvador historically has been the most industrialized nation in
- Central America, though a decade of war eroded this position. In 1993,
- manufacturing accounted for 19% of GDP and employed 19% of the work
- force. Based primarily in the capital city of San Salvador, the
- industrial sector is oriented largely toward domestic and Central
- American markets. Textiles, footwear and clothing, beverages, processed
- food, tobacco, wood and metal products, and chemical products are the
- principal manufactured goods.
-
- Trade
-
- In 1993, El Salvador's total exports were $732 million, while imports
- were $1.9 billion, resulting in a trade deficit of more then $1 billion.
- This deficit was offset by family remittances of almost $800 million
- sent by the more than 1 million Salvadorans living in the U.S., plus
- generous amounts of bilateral aid and loans from multilateral lending
- organizations. Twenty-five percent of El Salvador's imports were
- machinery and equipment destined to upgrade the nation's private sector.
- Recently, El Salvador's development efforts have focused on non-
- traditional agricultural exports.
-
- In 1991, El Salvador became a member of the General Agreement on Tariffs
- and Trade (GATT). Also that year, El Salvador and its Central American
- neighbors announced their interest in negotiating a regional free-trade
- agreement to complement the Central American Common Market (CACM) and
- the Central American Integration System (SICA). As a result, steps have
- been made toward Central American economic integration. In March 1992,
- El Salvador and Guatemala signed a free trade agreement calling for
- common external tariff and export tax systems; negotiations on similar
- agreements with Honduras have been conducted. Talks to negotiate a
- free-trade agreement between Mexico and El Salvador, Guatemala, and
- Honduras are scheduled to begin in late 1994.
-
- Agriculture and Land Reform
-
- Before 1980, a small economic elite owned most of the land in El
- Salvador and controlled a highly successful agricultural industry. About
- 70% of farmers were sharecroppers or laborers on large plantations.
- Many farm workers were under- or unemployed and impoverished.
-
- The civilian-military junta which came to power in 1979 instituted an
- ambitious land reform program to redress the inequities of the past,
- respond to the legitimate grievances of the rural poor, and promote more
- broadly based growth in the agricultural sector. The ultimate goal was
- to develop a rural middle class with a stake in a peaceful and
- prosperous future for El Salvador.
-
- At least 525,000 people--more than 12% of El Salvador's population at
- the time and perhaps 25% of the rural poor--benefited from agrarian
- reform, and more than 22% of El Salvador's total farmland was
- transferred to those who previously worked the land but did not own it.
- But when agrarian reform ended in 1990, about 150,000 landless families
- still had not benefited from the reform actions.
-
- The 1992 peace accords make provisions for land transfers to all
- qualified ex-combatants of both the FMLN and ESAF, as well as to
- landless peasants living in former conflict areas. While strongly
- opposed to new land expropriations, the Calderon Sol administration is
- committed to facilitating the voluntary transfer of land. To date, more
- than 12,000 of these transactions have been financed through the U.S.-
- assisted Land Bank and the Salvadoran Institute for Land Transformation.
- Up to 37,000 families could benefit from this land transfer program upon
- its completion, currently programmed for mid-1995.
-
-