Changes

*Religion: About 52% Roman Catholic, with significant and growing numbers of Protestant groups.

*Religion: About 52% Roman Catholic, with significant and growing numbers of Protestant groups.

*Language: Spanish.

*Language: Spanish.

*Education: Free through ninth grade. Attendance (grades 1-9)-90.4%. Literacy--84.5% nationally; 76.3% in rural areas.

*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.

*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%.  

*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==

==Government==

===Judiciary===

===Judiciary===

Both the Truth Commission and the Joint Group identified weaknesses in the judiciary and recommended solutions, the most dramatic being the replacement of all the magistrates on the Supreme Court. This recommendation was fulfilled in 1994 when an entirely new court was elected, but weaknesses remain. The process of replacing incompetent judges in the lower courts, and of strengthening the attorney generals' and public defender's offices, has moved more slowly. The government continues to work in all of these areas with the help of international donors, including the United States. Action on peace accord-driven constitutional reforms designed to improve the administration of justice was largely completed in 1996 with legislative approval of several amendments and the revision of the Criminal Procedure Code--with broad political consensus.  

Both the Truth Commission and the Joint Group identified weaknesses in the judiciary and recommended solutions, the most dramatic being the replacement of all the magistrates on the Supreme Court. This recommendation was fulfilled in 1994 when an entirely new court was elected, but weaknesses remain. The process of replacing incompetent judges in the lower courts, and of strengthening the attorney generals' and public defender's offices, has moved more slowly. The government continues to work in all of these areas with the help of international donors, including the United States. Action on peace accord-driven constitutional reforms designed to improve the administration of justice was largely completed in 1996 with legislative approval of several amendments and the revision of the Criminal Procedure Code—with broad political consensus.  

===Principal Government Officials===

===Principal Government Officials===

*President--Salvador Sánchez Cerén

*President—Salvador Sánchez Cerén

*Vice President--

*Vice President--

*Minister of Foreign Relations--Francisco LAINEZ  

*Minister of Foreign Relations—Francisco LAINEZ  

*Ambassador to the United States--Rene Antonio Rodriguez LEON

*Ambassador to the United States—Rene Antonio Rodriguez LEON

*Representative to the OAS--Abigail CASTRO DE PEREZ

*Representative to the OAS—Abigail CASTRO DE PEREZ

*Representative to the UN--Carmen Maria GALLARDO de Hernandez

*Representative to the UN—Carmen Maria GALLARDO de Hernandez

===Political Landscape===

===Political Landscape===

Hard-line conservatives, including some members of the military, created the Nationalist Republican Alliance party (ARENA) in 1981. ARENA almost won the election in 1984 with solid private sector and rural farmer support. By 1989, ARENA had attracted the support of business groups. Multiple factors contributed to ARENA victories in the 1988 legislative and 1989 presidential elections, including allegations of corruption in the ruling Christian Democratic party, poor relations with the private sector, and historically low prices for the nation's main agricultural exports.  

Hard-line conservatives, including some members of the military, created the Nationalist Republican Alliance party (ARENA) in 1981. ARENA almost won the election in 1984 with solid private sector and rural farmer support. By 1989, ARENA had attracted the support of business groups. Multiple factors contributed to ARENA victories in the 1988 legislative and 1989 presidential elections, including allegations of corruption in the ruling Christian Democratic party, poor relations with the private sector, and historically low prices for the nation's main agricultural exports.  

The successes of Alfredo Cristiani's 1989-94 administration in achieving a peace agreement to end the civil war and in improving the nation's economy helped ARENA--led by former San Salvador mayor Armando Calderon Sol--keep both the presidency and a working majority in the Legislative Assembly in the 1994 elections. ARENA's legislative position was weakened in the 1997 elections, but it recovered its strength, helped by divisions in the opposition, in time for another victory in the 1999 presidential race, bringing President Francisco Guillermo Flores Perez to office. Flores concentrated on modernizing the economy and strengthening bilateral relations with the U.S. by becoming a committed partner in anti-terror efforts, sending troops to aid in the reconstruction of Iraq, and by playing a key role in negotiations for the Central American Free Trade Agreement (CAFTA).  

The successes of Alfredo Cristiani's 1989-94 administration in achieving a peace agreement to end the civil war and in improving the nation's economy helped ARENA—led by former San Salvador mayor Armando Calderon Sol—keep both the presidency and a working majority in the Legislative Assembly in the 1994 elections. ARENA's legislative position was weakened in the 1997 elections, but it recovered its strength, helped by divisions in the opposition, in time for another victory in the 1999 presidential race, bringing President Francisco Guillermo Flores Perez to office. Flores concentrated on modernizing the economy and strengthening bilateral relations with the U.S. by becoming a committed partner in anti-terror efforts, sending troops to aid in the reconstruction of Iraq, and by playing a key role in negotiations for the Central American Free Trade Agreement (CAFTA).  

Taking advantage of both public apprehension of Flores' policies and ARENA infighting, the chief opposition party, the [[Farabundo Martí National Liberation Front|Farabundo Marti Liberation Front]] (FMLN), was able to score a significant victory against ARENA in the March 2003 legislative and municipal elections. ARENA, left with only 29 seats in the 84-seat Legislative Assembly, was forced to court the right-wing National Conciliation Party (PCN) in order to form a majority voting bloc. However, in 2003 the PCN entered into a loose partnership with the FMLN, further limiting ARENA's ability to maneuver in the legislature.  

Taking advantage of both public apprehension of Flores' policies and ARENA infighting, the chief opposition party, the [[Farabundo Martí National Liberation Front|Farabundo Marti Liberation Front]] (FMLN), was able to score a significant victory against ARENA in the March 2003 legislative and municipal elections. ARENA, left with only 29 seats in the 84-seat Legislative Assembly, was forced to court the right-wing National Conciliation Party (PCN) in order to form a majority voting bloc. However, in 2003 the PCN entered into a loose partnership with the FMLN, further limiting ARENA's ability to maneuver in the legislature.  

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.  

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.  

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.  

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.  

*GDP annual real growth rate (2006): 4.2%.  

*GDP annual real growth rate (2006): 4.2%.  

*Per capita income (2006): $2,656.9, PPP per capita income $5,514.97 (IMF estimate)  

*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).  

*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.  

*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%.  

*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%.  

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.

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 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.  

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.  

==Natural Disasters==  

==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.  

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 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.  

==History==  

==History==  

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.

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.  

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.