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:
Given the alarming increase in killings and spread of crime throughout the country, the ANEP is joining the call for security of the population and wishes to state:
Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.
The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.
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.
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.
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:
President Sanchez Ceren has passed a Special Law Against Crime Extortion, which aims to improve the fight against the unfortunate practice which primarily affects the business sector.
From a statement issued by the presidency of El Salvador:
The president, Salvador Sanchez Ceren, has sanctioned Legislative Decree No. 953 containing the Special Law Against CrimeExtortion, proposed by the government to streamline the prosecution of this crime.
Industrialists are pointing to political and legal uncertainty, high crime rates, corruption, bureaucracy and red tape as the main factors that are keeping away investors.
According to the Salvadoran Association of Industrialists (ASI), the government is not providing the right conditions in the country for the economy to grow, but, on the contrary has adopted tax reforms, which do not contribute its reactivation.
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.
90% of small business owners are extorted and many have had to leave the country, reported industry representatives.
Although the percentage of extortion of SMEs has increased 20% in 8 months, 76% of employers affected do not report it for fear of reprisals. The overall business perception is an increase in criminal behavior, constant threats by organized groups and greater mistrust of the National Civil Police (PNC), according to reports by the National Council of Small Business of El Salvador (CONAPES).
The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.
That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.
A survey of Salvadoran entrepreneurs reveals that during 2012, 66% of their companies or their staff were affected up to twice by extortion, kidnapping and murder.
The Survey ENADE 2013 assesses businesses' perception of the performance of government officials, in public safety, fiscal policy and democratic institutions.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand. The OHNE brand has 8 product lines: square bread, sweet...
español
2428