ABOUT EL SALVADOR

"Cuscatlan - Land of The Jewel"

 Hiking, surfing, volcanoes, a turbulent history - with hardly a tourist in sight...El Salvador is the one to watch for current & future investment opportunities...indeed, the savvy investor would do well to consider El Salvador now... 

There's a lot to learn about El Salvador  (we have included some Fast Facts below)...but, without a doubt,  the People of El Salvador are the True Jewels of the country... Although the name El Salvador still evokes images of the brutal civil war fought throughout the 1980s, we are happy to report that the bloodshed is long over  (the volcanic landscape remains the most turbulent aspect of the country) and while she is still in the process of polishing her rough edges, El Salvador is well on her way to living up to the name Cuscatlan - the Land of The Jewel.    El Salvador has rich forests and craggy mountains that make for great hiking. But the people of El Salvador are surely its richest resource, and the best reason to come. Direct, friendly and unjaded by mass tourism, most Salvadorans are genuinely happy help you out if you're lost.  Friendly locals like to chat...            The climatic condition of El Salvador is tropical in nature manifested with wet and dry seasons that vary in accordance with the seasonal change. The low-lying Pacific areas are affected with the humid weather conditions whereas the central plateau region or mountainous areas are moderate and cooler in nature respectively. Invierno the native word for rainy or winter season affects the areas from the month of May to October. The southern mountainous slopes are prone to heavy down pouring accompanied with thunderstorms, which is influenced by low pressure caused at the Pacific. It is during the month of November to April, El Salvador witnesses dry and sultry weather condition, as the northeast trade winds ascending from the Caribbean, affects the air that carry precipitation and dries out by the time it reaches the Honduras mountains. The local people know this season as Verano    FLORA & FAUNA El Salvador contains fewer species of plants than the other Central American states, but still has much of the luxuriant and colorful vegetation characteristic of the tropics, including more than 200 different species of orchids. The mountains of El Salvador have temperate grasslands and sparse forests of oak and pine. The natural vegetation of the rest of the country consists of deciduous trees and subtropical grasslands. Tropical fruit and medicinal plants are abundant. Because of its high population desity and fairly extensive farming, only 14 percent of El Salvador’s land remains as forest. This has limited the survival of animal life to a greater extent than in other Central American states. Habitat destruction and logging have caused many animal species to become rare or to disappear altogether, notably the crested eagle and the jaguar. Among the mammals still found wild in El Salvador are the monkey, coyote, puma, and ocelot, along with a great variety of small animals. Reptiles include the iguana and boa constrictor, and there are 251 different bird species, including 17 varieties of hummingbirds. The Salvadoran government has established natural reserves and parks to preserve natural habitats, the most important of which are at Montecristo National Park, El Imposible National Park, Cerro Verde, Deininger Park, and El Jocotal Lagoon. OFFICIAL NAME: Republic of El Salvador                                           Geography Area: 20,742. (8,008 sq. mi.); about the size of Massachusetts. Cities: Capital--San Salvador (pop. 2.2 million). Other cities--Santa Ana, San Miguel, Soyapango, and Apopa. 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. Population: Nationality: Noun and adjective--Salvadoran(s). Population (2007 est.): 5.7 million. Population Density: approx 850 per sq. mi (10x Density of U.S.)                           Annual growth rate (2005 est.): 1.7%. Ethnic groups: Mestizo 90%, indigenous 1%, Caucasian 9%. Religion: Approx. 52% Roman Catholic, with significant and growing numbers of Protestant groups. Language: Spanish. Education: Free through ninth grade. Attendance (grades 1-9)-90.4%. Literacy--84.5% nationally; 76.3% in rural areas. Health: Infant mortality rate (2003)--24.6/1,000. Life expectancy at birth (2006)--71.8 years. Work force (about 2.5 million, 2004): Agriculture--19.1%; services--49.8%; industry--16.8%; construction--6.4%; government--7.3%; other--0.6%. 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). Economy GDP (2006): $18.57 billion, PPP GDP (2006) $38.62 billion (IMF estimate) GDP annual real growth rate (2006): 4.2%. Per capita income (2006): $2,656.9, PPP per capita income $5,514.97 (IMF estimate) Agriculture (9.8% of GDP, 2006): Products--coffee, sugar, livestock, corn, poultry, and sorghum. Arable, cultivated, or pasture land--68% (2005). Industry (21.2% of GDP, 2006): Types--textiles and apparel, medicines, food and beverage processing, clothing, chemical products, petroleum products, electronics. Trade (2006): Exports--$3.5 billion: textiles and apparel, coffee, sugar, medicines, iron and steel products, tuna, light manufacturing, and paper products. Major markets--U.S. 57.1%, Central American Common Market (CACM) 29.2%. Imports--$7.6 billion: petroleum, iron products, machines and mechanical devices, cars, medicines, consumer goods, foodstuffs, capital goods, and raw industrial materials. Major suppliers--U.S. 40.46%, CACM 15.1%, Mexico 7.7%. PEOPLE El Salvador's population numbers about 5.7 million. Almost 90% is of mixed Indian and Spanish extraction. About 1% is indigenous; very few Indians have retained their customs and traditions. The country's people are largely Roman Catholic and Protestant. Spanish is the language spoken by virtually all inhabitants. The capital city of San Salvador has about 2.2 million people; an estimated 40.3% of El Salvador's population lives in rural areas. . Before the Spanish arrived in Salvadoran territory in the 16th century, it was occupied by a complex of Indian tribes. Of these the Pocomam, Chortí, and Lenca, all related to the Maya, were the more ancient, but the Pipil, whose civilization resembled that of the Aztecs in Mexico, were predominant. The Pipil name for their territory as well as for their capital was Cuscatlán, meaning “Land of the Jewel”; the name is still sometimes applied to El Salvador today. Archaeological ruins dating from Indian times are to be seen at Tazumal, Pampe, El Trapito, and San Andrés. Of several large towns founded by the Indians, Sonsonate and Ahuachapán still exist.          HISTORY The first Salvadoran territory visited by Spaniards was on Meanguera Island, located in the Gulf of Fonseca, where Spanish Admiral, Andrés Niño, lead an expedition to Central America and disembarked on May 31, 1522. In June 1524 the Spanish Captain Pedro de Alvarado started a war to conquest Cuzcatlan. His cousin Diego de Alvarado established the village of San Salvador in April 1525. In 1546, Charles I of Spain granted San Salvador the title of city. During the subsequent years, the country evolved under Spanish rule; however, towards the end of the year 1810 many people began to express discontent. On November 5, 1811, when the Priest José Matias Delgado, clang the bells of La Merced Church in San Salvador, calling for insurrection, the people began to officially band together for freedom. 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. In 1823, 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 early 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. Following a deterioration in the country's democratic institutions in the 1970s a period of civil war followed from 1980-1992. More than 75,000 people are estimated to have died in the conflict. In January 1992, after prolonged negotiations, the opposing sides signed peace accords which ended the war, brought the military under civilian control, and allowed the former guerillas to form a legitimate political party and participate in elections. GOVERNMENT AND POLITICAL CONDITIONS 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 5-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, also elected by universal suffrage, serve for 3-year terms. The country has an independent judiciary and Supreme Court. The next elections will be held in February and March 2009. Human Rights and Post-War Reforms During the 12-year civil war, human rights violations by both the government security forces and left-wing guerillas were rampant. The accords established a Truth Commission under UN auspices to investigate the most serious cases. The commission reported its findings in 1993. It recommended that those identified as human rights violators be removed from all government and military posts. Thereafter, the Legislative Assembly granted amnesty for political crimes committed during the war. Among those freed as a result were the Salvadoran Armed Forces (ESAF) officers convicted in the November 1989 Jesuit murders and the FMLN ex-combatants held for the 1991 murders of two U.S. servicemen. The peace accords also established the Ad Hoc Commission to evaluate the human rights record of the ESAF officer corps. In accordance with the peace agreements, the constitution was amended to prohibit the military from playing an internal security role except under extraordinary circumstances. Demobilization of Salvadoran military forces generally proceeded on schedule throughout the process. The Treasury Police, National Guard, and National Police were abolished, and military intelligence functions were transferred to civilian control. By 1993--9 months ahead of schedule--the military had cut personnel from a war-time high of 63,000 to the level of 32,000 required by the peace accords. By 1999, ESAF strength stood at less than 15,000, including uniformed and non-uniformed personnel, consisting of personnel in the army, navy, and air force. A purge of military officers accused of human rights abuses and corruption was completed in 1993 in compliance with the Ad Hoc Commission's recommendations. The military's new doctrine, professionalism, and complete withdrawal from political and economic affairs leave it the most respected institution in El Salvador. More than 35,000 eligible beneficiaries from among the former guerrillas and soldiers who fought the war received land under the peace accord-mandated land transfer program, which ended in January 1997. The majority of them also have received 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 deal with follow-on issues resulting from the program. National Civilian Police The civilian police force, created to replace the discredited public security forces, deployed its first officers in March 1993, and was present throughout the country by the end of 1994. The National Civilian Police (PNC) has about 16,000 officers. ECONOMY The Salvadoran economy continues to benefit from a commitment to free markets and careful fiscal management. The economy has been growing at a steady and moderate pace since the signing of peace accords in 1992, and poverty has been cut from 66% in 1991 to 35.2 percent in 2005. Much of the improvement in El Salvador's economy is a result of free market policy initiatives...including the privatization of the banking system, telecommunications, public pensions, electrical distribution and some electrical generation; reduction of import duties; elimination of price controls; and improved enforcement of intellectual property rights. Capping those reforms, on January 1, 2001, the U.S. dollar became legal tender in El Salvador, and the economy is now fully dollarized. The Salvadoran government has maintained fiscal discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005. Taxes levied by the government include a value added tax of 13%, income tax of 20%, excise taxes on alcohol and cigarettes, and import duties. The VAT is the largest source of revenue, accounting for about 55.1% of total tax revenues in 2006. For December of 2007, El Salvador projects a fiscal surplus of 0.6% of GDP. El Salvador's public external debt in May 2007 was about $5.8 billion, 29.9 percent of GDP. Years of civil war, fought largely in the rural areas, had a devastating impact on agricultural production in El Salvador. A fall in world coffee prices, once a major export earner for El Salvador, has also hurt rural employment. Seeking to develop new growth sectors and employment opportunities, El Salvador created new export industries through fiscal incentives for free trade zones. The largest beneficiary has been the textile and apparel (maquila) sector, which directly provides approximately 70,000 jobs. Services, including retail and financial, have also shown strong employment growth, with about 49.8% of the total labor force now employed in the sector. During the last three years foreign companies have set up 96 new subsidiaries providing 18,000 new jobs, mainly in maquilas, tourism, and telephone call centers. Remittances from Salvadorans working in the United States are an important source of income for many families in El Salvador. In 2006, the Central Bank estimated that remittances totaled $3.3 billion, and UNDP surveys show that an estimated 22.3 percent of families receive them. Under its export-led growth strategy launched in 1989, El Salvador has pursued economic integration with its Central American neighbors and negotiated trade agreements with the Dominican Republic, Chile, Mexico, Panama, Taiwan and the United States. The trade agreement with Taiwan will enter into force in 2008. Central America will begin negotiating an Association Agreement with the European Union in 2007. Agreements with Colombia and Canada are under negotiation while agreements with CARICOM and Israel are being considered. Exports in 2006 grew 3.7% while imports grew 11.6%. As in previous years, the large trade deficit was offset by family remittances. The U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) implemented between El Salvador and the United States on March 1, 2006, provides El Salvador preferential access to U.S. markets. Textiles and apparel, shoes, and processed foods are among the sectors expected to benefit. In addition to trade benefits, CAFTA-DR also promises to provide a framework for additional reforms on issues such as intellectual property rights, dispute resolution, and customs that will improve El Salvador's investment climate. For sensitive sectors such as agriculture, the agreement includes generous phase-in periods to allow Salvadoran producers an opportunity to become more competitive. U.S. support for El Salvador's privatization of the electrical and telecommunications markets markedly expanded opportunities for U.S. investment in the country. More than 300 U.S. companies have established either a permanent commercial presence in El Salvador or work through representative offices in the country. The Department of Commerce maintains a Country Commercial Guide for U.S. businesses seeking detailed information on business opportunities in El Salvador. Natural Disasters Lying on the Pacific's earthquake-prone Ring of Fire and at latitudes plagued by hurricanes, El Salvador's history is a litany of catastrophe, including the Great Hurricane of 1780 that killed 22,000 in Central America and earthquakes in 1854 and 1917 that devastated El Salvador and destroyed most of the capital city. More recently, an October 1986 earthquake killed 1,400 and seriously damaged the nation's infrastructure; in 1998, Hurricane Mitch killed 10,000 in the region, although El Salvador--lacking a Caribbean coast--suffered less than Honduras and Nicaragua. Major earthquakes in January and February of 2001 took another 1,000 lives and left thousands more homeless and jobless. El Salvador's largest volcano, Santa Ana (also known by its indigenous name Ilamatepec), erupted in October 2005, spewing tons of sulfuric gas, ash, and rock on surrounding communities and coffee plantations and killing two people and permanently displaced 5,000. Also in October 2005, Hurricane Stan unleashed heavy rains that caused flooding throughout El Salvador. In all, the flooding caused 67 deaths, and more than 50,000 people were evacuated at some point during the crisis. Damages from the storm were estimated at $355.6 million.   Ilamatpec   FOREIGN RELATIONS El Salvador is a member of the United Nations and several of its specialized agencies, the Organization of American States (OAS), the Central American Common Market (CACM), the Central American Parliament, and the Central American Integration System. It actively participates in the Central American Security Commission (CASC), which seeks to promote regional arms control. From 2002-03, El Salvador was chair of the OAS anti-terrorism coordinating body, CICTE. El Salvador also is a member of the World Trade Organization and is pursuing regional free trade agreements. An active participant in the Summit of the Americas process, El Salvador chairs a working group on market access under the Free Trade Area of the Americas initiative. El Salvador has joined its six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA or CONCAUSA to promote sustainable economic development in the region. El Salvador enjoys normal diplomatic and trade relations with all of its neighboring countries... U.S.-SALVADORAN RELATIONS U.S.-Salvadoran relations remain close and strong. U.S. policy toward El Salvador seeks to promote the strengthening of El Salvador's democratic institutions and general growth.  More than 19,000 American citizens live and work full-time in El Salvador. Most are private businesspersons and their families, but a small number of American citizen retirees have been drawn to El Salvador by favorable tax conditions.   THE CULTURE - FOOD: El Salvador's most notable dish is the pupusa. Pupusas are a thick hand-made corn tortilla (made using masa de maíz or masa de arroz, a maize or rice flour dough used in Latin American cuisine) stuffed with one or more of the following: cheese (usually a soft Salvadoran cheese called Quesillo con loroco), fried pork rind (chicharrón), chicken, refried beans, and cheese with loroco. Loroco is a vine flower bud native to Central America. Stuffings such as shrimp or ayote are used by adventurous restaurants. Pupusas come from the pipil-nahuatl word, pupushahua. The pupusa's exact origins are debated, although it's presence in El Salvador is known to predate the arrival of Spaniards. However this is not the only traditional dish, salvadorean food is very rich, let's not forget that Central America claims the origins of potatoes, tomatoes, squash, cacao, peppers, beans, corn, and countless others, with this wealth of ingredients salvadoran cooking is a savoury mix of the ancestral mayan traditions mixed with the spanish and creole influence. Two other typical Salvadoran dishes are yuca frita and pan con pavo. Yuca frita, which is fried cassava root, is deep fried and served with curtido and pork rinds or pepesquitas (fried baby sardines). Pan con pollo, translated to chicken with bread, is a turkey submarine sandwich similar to a hoagie. The turkey is marinated and then roasted with Pipil spices and handpulled.