El Salvador: Legal Uncertainty Making Business Climate Worse

Although emphasis was given to the momentum taken in the fight against corruption in 2016, lack of legal certainty continues to affect conditions for doing business in the country.

Monday, February 27, 2017

From a report on the Legal and Institutional Situation by the Salvadoran Foundation for Economic and Social Development:

The report is divided into 3 chapters, in which an analysis is undertaken of the most important issues that occurred during the semester relating to the rule of law, transparency, security and the business climate.  Among the most noteworthy findings, the following are mentioned: 

Rule of law:

In the second half of the year, attacks have continued on the independence of the Constitutional Chamber, to the point that judges have denounced threats to their integrity. This provoked a reaction from civil society and international officials demanding that this cease as soon as possible, and a prompt investigation be undertaken.  

There has been new constitutional jurisprudence on issues such as the independence of the officials who should control political power through the unconstitutional the election of a deputy magistrate of the Supreme Court, as well as in regards to the unconstitutionality of the General Amnesty Act for the Consolidation of Peace, which although it does not share some of the criteria, having a definitive character, imposes significant legislative and public policy challenges to ensure the rights of victims of conflict, maintain social harmony and strengthen democratic progress since the peace agreement. Also worth noting is the delay of the Legislature to elect the members of the CNJ, the owner of the PDDH and the judges of the CCR.  

Read full report (in spanish).

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A press release of the Salvadoran Foundation for Economic and Social Development (Fusades) reads:

The Department of Legal Studies, DEL, released on Aug.

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