Overview
Recovering from a 12-year civil war that claimed 75,000
lives and ended in 1992, El Salvador sees itself as
a country that has made significant progress toward
political, economic and social security.
El Salvador was tested early in its recuperative stage
in 1998 when Hurricane Mitch claimed the lives of an
estimated 374 people only to be followed by two massive
and devastating earthquakes in 2001 that left nearly
2,000 people dead or missing, 8,000 injured and 1.5
million homeless.
Since the 1992 Peace Accords, El Salvador held a series
of free and fair elections (local, national and legislative)
that have fortified the country’s somewhat weakened
democratic roots, the most recent the election of President
Elias Antonio Saca of the National Republican Alliance
party (ARENA), in March of 2004.
Over the past three years, the Salvadoran economy has
maintained a positive average annual growth rate of
two percent. El Salvador’s successful completion
of negotiations with the United States and four of its
Central American neighboring countries (Costa Rica,
Guatemala, Honduras, Nicaragua) for a Central American
Free Trade Agreement (CAFTA) has created a spirit of
optimism for future economic growth.
Still El Salvador has its challenges to face. Nearly
half of its rural population lives below the poverty
line; almost 17 percent is illiterate; and 61 percent
of the rural population does not have indoor plumbing.
In addition, security issues persist in several urban
and rural areas, and citizen confidence in the justice
system is low.
The USAID Program: In the current
year, USAID has plans for $ 34.5 million in programs
aimed to create economic opportunities for rural, low
income families, promote a more open and efficient legal
system, improve basic healthcare and education, increase
their household access to clean water, and to strengthen
trade skills in preparation for CAFTA. USAID will also
conclude its high-profile earthquake recovery program,
which contributed significantly to reconstruction of
rural housing, health and education facilities, water
systems, and other affected sectors of the rural economy.
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