El Salvador: Increasing Insecurity and Decaying Business Climate

Warnings have been given over increased insecurity, stagnation in the fight against corruption, and little capacity for Government dialogue in the second half of 2015.

Wednesday, February 10, 2016

The adoption of higher taxes without a dialogue, the consequences for the country of the increase in homicides from 10 to 18 a day in 2015, and stagnation in the fight against corruption, were highlighted in the evaluation made by the Salvadoran Foundation for Economic and Social Development ( Fusades) regarding the legal and institutional framework of the country during the second half of 2015.

From the Legal and Institutional Report by FUSADES:

Regarding the business climate and public safety, insecurity continues to directly affect the exercise of the fundamental rights of Salvadorans, especially the right to life.

The year closes with a 70% increase in the number of homicides, compared to 2014, addressing this issue should be the main priority of the state. The average number of homicides a day rose to from 10.7 in 2014, to 18 in 2015. Given this situation, an international media company -USA Today- described El Salvador as the new "murder capital of the world" because of its rate of 104 victims per 100,000 inhabitants.

The consequences of this situation can be seen reflected in the country's business climate which has deteriorated because of the prevailing daily insecurity . Also, the adoption of more taxes during the second half of 2015, without any dialogue and on a questionable legal basis, further undermines the delicate state of the business climate.

Read full report from Fusades (in spanish)

More on this topic

Business and Insecurity

August 2018

Citizen insecurity, political uncertainty and low levels of investment are the main factors that are still affecting the quality of life of the population and the business climate in El Salvador.

Analysis undertaken by the Salvadoran Foundation for Development (Fusades) points out the main factors that are preventing the Salvadoran economy from achieving better levels of growth. In its Legal and Institutional Report, it notes recent advances in trade facilitation, but points out that public insecurity continues to be the factor that most negatively affects the quality of life of the population and the investment climate. 

Insecurity and Uncertainty

March 2018

Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.

The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.

El Salvador: Opposition to Eventual State of Emergency

March 2016

In the view of the business sector the implementation of a State of Emergency does not guarantee that the problem of insecurity and the escalation of violence affecting the country will be resolved.

From a statement issued by the National Association of Private Enterprise:

El Salvador: Investment Climate Continues to Deteriorate

August 2015

Insecurity and lack of effective government actions explain the perception of the business sector regarding the investment climate in the country, which has fallen to the lowest level since 1999.

From the Report on the Legal and Institutional Situation first half of 2015 by the Salvadoran Foundation for Development:

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