Entrepreneurs in El Salvador are demanding that the government provide more details on how and what was negotiated in the process of establishing diplomatic relations with China.
The private sector is questioning the abrupt and accelerated manner in which the process of breaking off relations with the Republic of Taiwan and the announcement of new relations with China took place.
A proposal has been made to create a special economic zone in 26 municipalities in the southeast of the country, which would provide tax incentives for activities related to clean energy and the prospecting of natural gas and oil.
The Executive presented to the Legislative Assembly a preliminary draft of the Law on the Special Economic Zone of the Southeast Region of El Salvador, which has the objective of developing 26 municipalities of Usulután, San Miguel and La Unión.
The private sector is proposing seven lines of action to address the challenges caused by the cancellation of the temporary work status of about 195,000 Salvadorans living in the United States.
The trade union of employers previously gave its view on the cancellation of temporary work status', and the opportunities that could be generated from theapplication of three strategic measures.
In El Salvador, the decision taken by the Sanchez Ceren administration not to attend the main business event in the country reveals either disinclination, inability to govern, or simple political manichaeism.
EDITORIAL
Maybe it is a persistence of visualizing the world as it was in the last century, dividing it into two antagonistic parties, capital on the one hand and labour on the other.
The business sector indicates that the country is going through a deep fiscal, economic, social, institutional and public security crisis.
From a statement issued by the National Association of Private Enterprise (ANEP):
The business sector agrees with the feeling of the population expressed in surveys and different areas of opinion regarding the fact that the country is going through a deep fiscal, economic, social, institutional and insecurity crisis.
Employers point to political instability, energy costs and lack of infrastructure as the main factors keeping out investment and reducing competitiveness.
A survey carried out with employers by the National Association of Private Enterprise (ANEP) showed as its first result the lack of competitiveness of the country in terms of attracting foreign investment, due to uncertainty created by political instability.
The private sector has proposed creating development zones with specific tax laws and tax free status in order to encourage local and foreign investment.
Following a concept created by economist Paul Romer and implemented in cities such as Hong Kong, and proposed in Honduras through the passage of a law last year, Salvadoran businessmen are proposing 29 law reforms in order to create development zones which have their own laws to enhance the competitiveness of companies located within them.
The business climate, smuggling and taxes have forced the tobacco company to close its operation in the country.
In a letter sent on March 5, to their suppliers, British American Tobacco announced the closure of its operations in El Salvador. The increase in smuggling and lack of competitiveness in terms of cost are some of the reasons for its departure.
In Honduras there are plans to develop free zones to attract companies from El Salvador who have shown their fears about the business climate in the country.
Several Salvadoran companies have shown fear over the FMLN party winning the presidential election for the second time. Aware of the concerns of Salvadorans regarding the business climate in the Central American nation, Hondurans are working on attracting those companies.
One of the reasons for the poor performance of the Salvadoran economy is the uncertainty about political behavior at every election.
This was stated by Director of Economic and Social Affairs of the National Association of Private Enterprise (ANEP), Waldo Jimenez, who added that "... as time has gone on the Salvadoran economy has grown less, and what that means for citizens is that the country has less and less capacity to generate wealth ... ".
They include the modernization and expansion of the International Airport of El Salvador, the concession for Port of La Union, and the generation of 350 MW of energy, among other things.
From a press release issued by the Presidency of El Salvador:
The President, Mauricio Funes, called today for the creation of a solid alliance involving all of the country's sectors in order to achieve acceptable goals of economic growth, employment generation and equitable distribution of wealth.
Salvadoran businessmen have pointed out that the agreement which intended to stimulate the economy and overcome obstacles to growth, has not provide great results.
Although it is more than a year since implementation of the agreement, the private sector finds it necessary to involve private enterprise more in order for the government to generate better policies to attract investment.
The XIII National Private Enterprise Conference 2013 will be held on April 29, and will focus on the role of businesses and the investment climate.
The event will be held at the Sheraton Hotel Presidente from 1:30 pm. The current role of Salvadoran businesses will be discussed as well as prospects for improving the investment climate and socio-economic development of the country.
The National Association of Private Enterprise in El Salvador has declared that "money laundering is enabling Alba Petróleos to dabble in various production and commercial activities in the country."
According to an article in Elsalvador.com "The Executive Director of the ANEP, Arnoldo Jimenez said that this development ‘is part of a whole scheme of money laundering, diversion of funds and corruption that exists behind Alba ', referring to 'how Alba and el Frente (FMLN) are gaining economic control through political power'. "
The union of private companies submitted a proposal for the creation of a national concessions system.
The National Association of Private Enterprises (ANEP) stated that through a working concession mechanism, the country can attract foreign investment for road infrastructure projects, telecommunications, energy, logistics, etc.
"According to ANEP putting in the hands of investors such projects not only leads to progress in terms of development, but would free government from allocating funds for these projects, allowing expenditures in social programs such as safety, health and education," reported the article in Elsalvador.com.
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