El Salvador : Building on Strengths for a New Generation

Since the end of the Civil War in 1992, El Salvador has advanced on both the social and political fronts. Despite this progress and the recent reductions in income inequality, poverty remains high, largely as a result of low economic growth. This Systematic Country Diagnostic argues that the challen...

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Main Authors:	Calvo-Gonzalez, Oscar, Lopez, J. Humberto
Format:	Report
Language:	en_US
Published:	World Bank, Washington, DC 2015
Subjects:	economic growth environment inequality labor markets manufacturing policy reform social protection trade
Online Access:	http://hdl.handle.net/10986/22034

id	okr-10986-22034
recordtype	oai_dc
spelling	okr-10986-220342021-04-23T14:04:07Z El Salvador : Building on Strengths for a New Generation Calvo-Gonzalez, Oscar Lopez, J. Humberto economic growth environment inequality labor markets manufacturing policy reform social protection trade Since the end of the Civil War in 1992, El Salvador has advanced on both the social and political fronts. Despite this progress and the recent reductions in income inequality, poverty remains high, largely as a result of low economic growth. This Systematic Country Diagnostic argues that the challenge in El Salvador is not to identify the proximate constraints to growth, but how those constraints are inter-connected and what entry points may help break what can be characterized as "vicious circles." The Systematic Country Diagnostic identifies three inter- connected vicious circles that hamper growth and shared prosperity: (1) a cycle of low growth and violence; (2) a cycle of low growth and migration; and (3) a cycle of low growth, savings and investment. Moreover, it also notes action on the identified entry points will require a "big push" (rather than marginal interventions) that help break the existing development dynamics. But this Systematic Country Diagnostic also identifies some strengths that El Salvador could build on to propel growth. Areas of opportunity include migration with the positive impact of diaspora on development, geographic and cultural proximity to large export markets, particularly the U.S., and an industrial base that can support an expansion of the tradable sector. At 20 percent of GDP the manufacturing sector is large by Latina American and by middle-income country standards. 2015-06-23T15:19:52Z 2015-06-23T15:19:52Z 2015-06-23 Report http://hdl.handle.net/10986/22034 en_US Systematic Country Diagnostic; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Country Assistance Strategy Document Latin America & Caribbean El Salvador
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	economic growth environment inequality labor markets manufacturing policy reform social protection trade
spellingShingle	economic growth environment inequality labor markets manufacturing policy reform social protection trade Calvo-Gonzalez, Oscar Lopez, J. Humberto El Salvador : Building on Strengths for a New Generation
geographic_facet	Latin America & Caribbean El Salvador
relation	Systematic Country Diagnostic;
description	Since the end of the Civil War in 1992, El Salvador has advanced on both the social and political fronts. Despite this progress and the recent reductions in income inequality, poverty remains high, largely as a result of low economic growth. This Systematic Country Diagnostic argues that the challenge in El Salvador is not to identify the proximate constraints to growth, but how those constraints are inter-connected and what entry points may help break what can be characterized as "vicious circles." The Systematic Country Diagnostic identifies three inter- connected vicious circles that hamper growth and shared prosperity: (1) a cycle of low growth and violence; (2) a cycle of low growth and migration; and (3) a cycle of low growth, savings and investment. Moreover, it also notes action on the identified entry points will require a "big push" (rather than marginal interventions) that help break the existing development dynamics. But this Systematic Country Diagnostic also identifies some strengths that El Salvador could build on to propel growth. Areas of opportunity include migration with the positive impact of diaspora on development, geographic and cultural proximity to large export markets, particularly the U.S., and an industrial base that can support an expansion of the tradable sector. At 20 percent of GDP the manufacturing sector is large by Latina American and by middle-income country standards.
format	Report
author	Calvo-Gonzalez, Oscar Lopez, J. Humberto
author_facet	Calvo-Gonzalez, Oscar Lopez, J. Humberto
author_sort	Calvo-Gonzalez, Oscar
title	El Salvador : Building on Strengths for a New Generation
title_short	El Salvador : Building on Strengths for a New Generation
title_full	El Salvador : Building on Strengths for a New Generation
title_fullStr	El Salvador : Building on Strengths for a New Generation
title_full_unstemmed	El Salvador : Building on Strengths for a New Generation
title_sort	el salvador : building on strengths for a new generation
publisher	World Bank, Washington, DC
publishDate	2015
url	http://hdl.handle.net/10986/22034
_version_	1764450184048148480

El Salvador : Building on Strengths for a New Generation

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