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EL SALVADOR PROFILE : EL SALVADOR Country Profile

EL SALVADOR

El The Republic of El Salvador (Spanish for "The Savior"), which was known prehispanically as Cuscatlán, is a country in Central America with a population of approximately 6.9 million people. It is the most densely populated nation on the American mainland (especially in its capital, San Salvador). It is also the most industrialized country in the region.

History

The civilization of El Salvador dates from the pre-Columbian time, around 1500 years B.C.E, according to evidence provided by the ancient ruins of Tazumal and Chalchuapa. The Spanish Admiral Andrés Niño lead an expedition to Central America and disembarked on the Island Meanguera, located in the Gulf of Fonseca, on May 31st, 1522. This was the first Salvadoran territory visited by the Spaniards.

In June, 1524, Spanish Captain Pedro de Alvarado began a predatory war against Cuzcatlán (land of beautiful jewels) that was populated by the native tribes of the country. After 17 days of bloody battles many natives and Spaniards died, including the legendary indigenous leader Atlacatl. Pedro de Alvarado defeated, and hurt in his left hip, abandoned the fight and ran to Guatemala, telling his brother, Gonzalo de Alvarado, to continue with the conquest of Cuzcatlán. Later, his cousin Diego de Alvarado established the villa of San Salvador on April, 1525. King Carlos I of Spain granted San Salvador the title of city in the year 1546. During the following years, El Salvador developed under Spanish dominion. Towards the end of 1810, a feeling of a need for freedom arose between the people of Central America and the moment to break the chains of slavery arrived at dawn on November 5th, 1811, when the Salvadoran priest, Jose Matías Delgado, sounded the bells of the Iglesia La Merced in San Salvador, making a call for the insurrection. After many internal fights, the Acta de Independencia (Act of Independence) of Central America was signed in Guatemala on September 15th, 1821.

On September 15, 1821, El Salvador and the other Central American provinces declared their independence from Spain. In 1823, the United Provinces of Central America was formed by the five Central American states under General Manuel José Arce. When this federation was dissolved in 1838, El Salvador became an independent republic. El Salvador's early history as an independent state was marked by frequent revolutions.

From 1872 to 1898 El Salvador was a prime mover in attempts to reestablish an isthmian federation. The governments of El Salvador, Honduras, and Nicaragua formed the Greater Republic of Central America via the Pact of Amapala in 1895. Although Guatemala and Costa Rica considered joining the Greater Republic (which was rechristened the United States of Central America when its constitution went into effect in 1898), neither country joined. This union, which had planned to establish its capital city at Amapala on the Golfo de Fonseca, did not survive a seizure of power in El Salvador in 1898.

The enormous profits that coffee yielded as a monoculture export served as an impetus for the process whereby land became concentrated in the hands of an oligarchy of several hundred families. A succession of presidents from the ranks of the Salvadoran oligarchy, nominally both conservative and liberal, throughout the last half of the 19th century generally agreed on the promotion of coffee as the predominant cash crop, on the development of infrastructure (railroads and port facilities) primarily in support of the coffee trade, on the elimination of communal landholdings to facilitate further coffee production, on the passage of anti-vagrancy laws to ensure that displaced campesinos and other rural residents provided sufficient labor for the coffee fincas (plantations), and on the suppression of rural discontent.

The coffee industry grew inexorably in El Salvador. As a result the elite provided the bulk of the government's financial support through import duties on goods imported with the foreign currencies that coffee sales earned. This support, coupled with the humbler and more mundane mechanisms of corruption, ensured the coffee growers of overwhelming influence within the government and the military which they used to create the Guardia Nacional (GN) in 1912. The duties of the GN differed from those of the Policia Nacional (PN), mainly in that GN personnel were specifically responsible for providing security on the coffee fincas and effectively suppressing rural dissent.

A bloodless coup led by General Tomás Regalado took El Salvador into the 20th century. Regalado's peaceful transfer of power in 1903 to his handpicked successor, Pedro José Escalón, ushered in a period of comparative stability that extended until the Depression-provoked upheaval of 1931–32.

In 1930, General Maximiliano Hernández Martínez, the country's Minister of Defense, took power in a coup d'état. Soon after, Martínez, now President, suppressed a 1932 revolt consisting of farmers and Indians in the western part of the country. The revolt was conducted by the newly formed Communist Party and its leader Agustín Farabundo Martí. The military conflict left more than 20,000 people dead in retaliatory massacres, which came to be known as "La Matanza;" this marked the beginning of a series of de facto military dictatorships that would rule El Salvador until 1979, when General Humberto Romero of the Party of National Conciliation (PCN) would be overthrown in a reformist coup.

Under the authoritarian rule of Maj. Óscar Osorio (1950–56) and Lt. Col. José María Lemus (1956–60) considerable economic progress was made. Lemus was overthrown by a coup, and after a confused period, a junta composed of leaders of the National Conciliation party came to power in June 1961. The junta's candidate, Lt. Col. Julio Adalberto Rivera, was elected president in 1962. He was succeeded in 1967 by Col. Fidel Sánchez Hernández. Relations with Honduras deteriorated in the late 1960s. There was a border clash in 1967, and a four-day so-called Football war broke out in July 1969. The Salvadoran forces that had invaded Honduras were withdrawn, but not until 1992 was an agreement settling the border controversy with Honduras signed.

Following increasing clashes between the FMLN, El Salvadoran Armed Forces (ESAF) and rightist vigilantes known as death squads(see Roberto DAubuisson, one of the creators), a civil war broke out that would last twelve years (1980–1992) and claimed the lives of approximately 75,000 people. A ceasefire was established in 1992 when the rebels of the FMLN and the government of President Alfredo Cristiani of the Nationalist Republican Alliance (ARENA), signed "Peace accords" on January 16, 1992 that assured political and military reforms and punishment for all human rights abuses during the civil war; death squad activity was virtually eliminated. However, the accords did not expound on social reforms.

El Salvador is known for the many earthquakes that occur within its borders. It has been popularly known as the “Valley of the Hammocks” since colonial times. On January 13, 2001 an earthquake that measured 7.6 on the Richter scale caused a landslide that killed more than 800 people. On February 13, 2001, a second earthquake killed 255 people.

Geography

Physical features
Two parallel mountain ranges cross El Salvador east to west with a central plateau between them and a narrow coastal plain hugging the Pacific. These physical features divide the country into two physiographic regions. The mountain ranges and central plateau covering 85 percent of the land comprise the interior highlands. The remaining coastal plains are referred to as the Pacific lowlands.

The northern range of mountains, the Sierra Madre, forms a continuous chain along the border with Honduras. Elevations in this region range from 1,600 to 2,200 meters. The area was once heavily forested, but overexploitation led to extensive erosion, and it has become semibarren. As a result, it is the country's most sparsely populated zone, with little farming or other development.

The southern range of mountains is actually a discontinuous chain of more than twenty volcanoes, clustered into five groups. The westernmost group, near the Guatemalan border, contains Izalco and Santa Ana, which at 2,365 meters is the highest point in El Salvador. Between the cones lie alluvial basins and rolling hills eroded from ash deposits. The volcanic soil is rich, and much of El Salvador's coffee is planted on these slopes.

The central plateau constitutes only 25 percent of the land area but contains the heaviest concentration of population and the country's largest cities. This plain is about 50 kilometers wide and has an average elevation of 600 meters. Terrain here is rolling, with occasional escarpments, lava fields, and geysers.

A narrow plain extends from the coastal volcanic range to the Pacific Ocean. This region has a width ranging from one to thirty-two kilometers with the widest section in the east, adjacent to the Golfo de Fonseca. Near La Libertad, however, the mountains pinch the lowlands out; the slopes of adjacent volcanoes come down directly to the sea. Surfaces in the Pacific lowlands are generally flat or gently rolling and result from alluvial deposits from nearby slopes.

El Salvador has over 300 rivers, the most important of which is the Rio Lempa. Originating in Guatemala, the Rio Lempa cuts across the northern range of mountains, flows along much of the central plateau, and finally cuts through the southern volcanic range to empty into the Pacific. It is El Salvador's only navigable river, and it and its tributaries drain about half the country. Other rivers are generally short and drain the Pacific lowlands or flow from the central plateau through gaps in the southern mountain range to the Pacific.

Numerous lakes of volcanic origin are found in the interior highlands; many of these lakes are surrounded by mountains and have high, steep banks. The largest lake, the Lago de Ilopango, lies just to the east of the capital. Other large lakes include the Lago de Coatepeque in the west and the Lago de Güija on the Guatemalan border. The Cerron Grande Dam on the Rio Lempa has created a large reservoir, the Embalse Cerron Grande, in northern El Salvador.

Izalco has erupted at least 51 times since 1770. It earned the nickname "Lighthouse of the Pacific" because it was the most active volcano in Central America.

Climate

El Salvador has a tropical climate with pronounced wet and dry seasons. Temperatures vary primarily with elevation and show little seasonal change. The Pacific lowlands are uniformly hot; the central plateau and mountain areas are more moderate.

The rainy season, known locally as invierno, or winter, extends from May to October. Almost all the annual rainfall occurs during this time, and yearly totals, particularly on southern-facing mountain slopes, can be as high as 200 centimeters. Protected areas and the central plateau receive lesser, although still significant, amounts. Rainfall during this season generally comes from low pressure over the Pacific and usually falls in heavy afternoon thunderstorms. Although hurricanes occasionally form in the Pacific, they seldom affect El Salvador.

From November through April, the northeast trade winds control weather patterns. During these months, air flowing from the Caribbean has had most of the precipitation wrung out of it passing over the mountains in Honduras. By the time this air reaches El Salvador, it is dry, hot, and hazy. This season is known locally as verano, or summer.

Temperatures vary little with season; elevation is the primary determinant. The Pacific lowlands are the hottest region, with annual averages ranging from 25°C to 29°C. San Salvador is representative of the central plateau, with an annual average temperature of 23°C and absolute high and low readings of 38°C and 7°C, respectively. Mountain areas are the coolest, with annual averages from 12°C to 23°C and minimum temperatures sometimes approaching freezing.

Politics

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 five-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 (called deputies, diputados), also elected by universal suffrage, although according to closed-list proportional representation, serve for three-year terms. The country has an independent judiciary and Supreme Court.

The current President of El Salvador is Elías Antonio Saca González, elected on 21 March 2004. He took office on 1 June 2004, and his presidential term ends on 1 June 2009.

The current legal system of El Salvador, based on civil and Roman law with traces of common law, came into force with the passage of the constitution on 23 December 1983.

Political divisions
Many early post-colonial rulers, such as Francisco Morazán and Gerardo Barrios, were of French descent and were hence sympathetic to the Napoleonic code, which was successfully adapted to El Salvador. For this reason, the country has French-style territorial divisions. El Salvador is divided into fourteen departments:

Ahuachapán
Cabañas
Chalatenango
Cuscatlán
La Libertad
La Paz
La Unión
Morazán
San Miguel
San Salvador
San Vicente
Santa Ana
Sonsonate
Usulután

Economy

By 2005, El Salvador became the strongest economy in Central America and the Caribbean. The Salvadoran economy has experienced mixed results from the ARENA government's commitment to free market initiatives and conservative fiscal management that include the privatization of the banking system, telecommunications, public pensions, electrical distribution, and some electrical generation, reduction of import duties, elimination of price controls, and an improved enforcement of intellectual property rights. The GDP variable has been growing at a steady and moderate pace since the signing of peace accords in 1992, in an environment of macroeconomic stability. A problem that the Salvadoran economy faces is the inequality in the distribution of income. In 1999, the richest fifth of the population received 45% of the country's income, while the poorest fifth received only 5.6%.

As of December 1999, net international reserves equaled US$1.8 billion or roughly five months of imports. Having this hard currency buffer to work with, the Salvadoran Government undertook a monetary integration plan beginning January 1, 2001, by which the U.S. dollar became legal tender alongside the colón, and all formal accounting was undertaken in U.S. dollars. This way, the government has formally limited its possibility of implementing open market monetary policies to influence short term variables in the economy. Since 2004, the colón stopped circulating and is now never used in the country for any type of transaction; however some stores still have prices in both colones and U.S. dollars. In general, people were unhappy with the shift from the colón to the U.S. dollar, because wages are still the same but the price of everything increased. Things that once cost 5 colones now cost $1, which would be 8.75 colones. Some economists claim this rise in prices would have been caused by inflation regardless even had the shift not been made. Some economists also contend that now, according to Gresham's Law, a reversion to the colón would be disastrous to the economy.

Some banks however claim that they still do some transactions en colones, keeping this change from being unconstitutional.

The change to the dollar also precipitated a trend toward [spam word detected] in El Salvador, helping many to secure credit in order to buy a house or a car; over time, the sense of displeasure with the change has largely disappeared, though the issue resurfaces as a political tool when elections are on the horizon.

Among the biggest challenges in El Salvador have been to manage the decline in the coffee sector, which only accounted for 7.0% of exports in 2004, and to develop new growth sectors for a more diversified economy. Currently there are fifteen free trade zones in El Salvador. The largest beneficiary has been the maquila industry, which provides 88,700 jobs directly, and consists primarily of cutting and assembling clothes for export to the United States.

El Salvador signed the Central American Free Trade Agreement (CAFTA), negotiated by the five countries of Central America and the Dominican Republic, with the United States in 2004. In order to take advantage of CAFTA, the Salvadoran government is challenged to conduct policies that guarantee better conditions for entrepreneurs and workers to transfer from declining to growing sectors in the economy. 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.

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 of around $2.9 billion. Remittances have increased steadily in the last decade and reached an all-time high of $12.5 billion in 2004—approximately 17.1% of gross domestic product (GDP). As of April 2004, net international reserves stood at $1.9 billion.

In recent years inflation has fallen to single digit levels, and total exports have grown substantially.

Demographics

Chart of El Salvador's population between 1961 and 2003 (figures taken from the FAO, 2005). Population in thousands (i.e. 1=1 000; 6 000=6 000 000).Main article: Demographics of El Salvador

El Salvador's population numbers about 6.7 million people. Around 80% is mestizo (mixed Amerindian and Spanish), 10% black, some 9% white, and only 1% indigenous. Very few Amerindians have retained their native customs, traditions, or languages. A large Asian population is also apart of El Salvador's population.

Spanish is the language spoken by virtually all inhabitants. The country's people are largely Roman Catholic (83% of the population), though Protestant groups are growing (15%).

The capital city of San Salvador has about 2.1 million people; an estimated 42% of El Salvador's population live in rural areas.

According to the most recent United Nations survey, life expectancy for men was 68 years and 74 years for women. Education in El Salvador is free through high school. The national literacy rate is 84.1%.

At the beginning of 2004, there were approximately 3.1 million Salvadorans living outside El Salvador, many of whom are immigrants (though not always legally) in the United States. The USA has traditionally been the destination of choice for El Salvadorans looking for greater economic opportunity than their current position can provide. Other countries with notable Salvadoran communities include Canada, Honduras, Guatemala, Belize and Australia. The situation worsened later during the civil war of the decade of the 1980s and from adverse economic and social conditions. Pursuant to peace accords signed in January of 1992 between the FMLN and the ARENA-party-dominated government, the government made a series of economic reforms in the mold of the neoliberal model supported by the USA. This model has given good results on the macroeconomic level but that nevertheless are not reflected in an improvement of the standard of living for the majority of Salvadorans. In 2001 El Salvador adopted, by legislative decree, the U.S. dollar as its official currency, replacing the previous currency called the Colon (Spanish for 'Columbus', as in Christopher Columbus).

Culture

A small part of the population speaks Nahua, the native language. The Roman Catholic religion played an important role in the Salvadoran culture. Painting, ceramics and textile articles are the main manual artistic expressions. Writers Francisco Gavidia (1863–1955) and Manlio Argueta, and poet Roque Dalton are among the most important artists to stem from El Salvador. Notable 20th century personages include the late filmmaker Baltasar Polio and artist Fernando Llort.


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