Verified Document

El Salvador Finance For Development Term Paper

El Salvador Financing for Development in El Salvador

Confronting Debt Challenges

El Salvador is the smallest country in Central America. It has a limited natural resource base. About 60% of the population live in rural areas and over 80% of agricultural producers work farms of less than 3 ha. With social indicators among the worst in Latin America and a per capita income of U.S.$1,580 in 1995, it also ranks as one of the poorer countries in the region.

Since 1992, the World Bank has supported the government of El Salvador's strategic effort to consolidate peace and place the country on a path towards sustainable development. Currently, eight loans are under implementation worth a total of U.S.$298 million.

In December 2001, the World Bank announced the new assistance strategy up to $270 million to El Salvador over the next three years. This includes a $142.6 million Earthquake Emergency Reconstruction and Health Services Extension Project. The loan carried a seven-year maturity with five years grace.

Like in all poor countries, debt has become a serious problem for El Salvador. It is not the only problem but, as long as it exists, peoples and their governments will find it exceedingly difficult to...

Not only does the "debt" force the country to divert their extremely limited resources to the rich countries like the United States but it has become a tool in the hands of the North in all its economic agenda.
Financial Sector Reform and Resource Mobilization

On January 16, 1992, the Government of El Salvador and the Frente Farabundo Marti para la Liberacion Nacional (FMLN) signed a Peace Accord putting an end to the 12-year conflict. El Salvador's civil war had no winner but many losers. The conflict cost some 75,000 lives, leaving thousands of people displaced, orphaned, or disabled, and provoked a mass migration which eventually left about one in five Salvadorans living outside the country. The war also caused large material losses -- war-related damages are estimated to have totaled some U.S.$1.5 billion in infrastructure alone.

The World Bank, through its Country Assistance Strategy (CAS), have been supporting emergency and basic health care facilities, judicial reform, rural community development, environmental services and land administration in El Salvador. It also provides for possible support for education, local development, urban poverty reduction and to help youth at risk. World Bank loans…

Sources used in this document:
Bibliography

Jonathan Heller and Sarah McFarlane, Self-Development:Creating Hope in El Salvador, El Platenar, El Salvador & Seattle, Washington

Gasper F. Lo Biondo, S.J. And Rafael A. Pleitez, Woodstock Theological Center, 1997

Karen Hansen-Kuhn, The Development GAP in Tom Barry and Martha Honey (ed.) Free Trade Area of the Americas Volume 6, Number 12, April 2001

Development Cooperation and Conflict, http://wbln0018.worldbank.org/external/lac/lac.
Cite this Document:
Copy Bibliography Citation

Related Documents

Income Disparity and Development
Words: 2476 Length: 9 Document Type: Term Paper

Income Disparity and Development in Latin American Countries The income disparity in the Latin American countries is the largest in the world and has a dramatic and complex impact on the development of these countries on many related levels. As one commentator states, "Inequality is as Latin American as good dance music and magical-realist fiction. Like those other regional products, it thrives." (Inequality in Latin America. A stubborn curse.) Statistics from the

Economics Relationship Between Population Growth
Words: 2737 Length: 6 Document Type: Term Paper

For the first time in many years, nations like Japan can no longer guarantee employment for their large population and they must consider a new welfare option. These are all economic situations that are new and indicate that population has an adverse affect on the world economic policies. Conclusion This report aimed to discuss some of the relationships between population growth and economic development. Economic growth will continue to be an

Economic and Political Situation in Mexico
Words: 2029 Length: 8 Document Type: Term Paper

Mexico Economic and Political Situation in Mexico In recent years, the economic and political situation in Mexico has fallen under international scrutiny, and as a result, critics have analyzed the country's policies toward exchange rates, foreign trade, domestic monetary systems and foreign policy. Mexico currently operates under a free market economy that contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded

Growth Within a Country the Issue of
Words: 1915 Length: 7 Document Type: Term Paper

Growth Within a Country The issue of development and growth within a country or across countries is such that attracts that attention across board. There are screaming headlines of different economic measures taken by economists and financial analysts of countries concerned. Tracking and recording growth in any country or comparing growth amongst country necessitates using diverse measures. Many measures in the name of models have been propounded of which some

Globalization Regional Integration Efforts Were
Words: 1013 Length: 4 Document Type: Term Paper

The Asia-Pacific Economic Cooperation (APEC) was started on January 1989 by Australian Prime Minister Bob Hawke when he called for better economic cooperation within the Asia Pacific Region. Currently, the organization has 21 members including, Australia, Japan, Singapore, and United States. At the Bogor summit, APEC started discussions regarding the "Bogor Goals" which aims to reduce tariffs between zero and five percent in industrialized countries by 2010 and developing countries

Miguel Sahagun Mexico: Regional Leader
Words: 7688 Length: 20 Document Type: Research Paper

Mexico's Trade Strategy Mexico has pursued a three-dimensional trade strategy perhaps more diligently than even the United States according to Schott (Studer & Wise, 2007). Mexico has been an active participant in multilateral talks since its GATT accession in 1986 and was the host country for the special Summit of the Americas in Monterrey and for the hemispheric trade talks in Puebla. Mexico is perhaps most famous as the instigator of

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now