El Salvador has huge development potentials. As a developing country with a GDP per capita of USD 5,548.0 (in 2024), El Salvador has improved its economic, social and other conditions that have helped improve the lives of its people. But it has further potentials to improve its economic conditions, political grounds and other grounds. Its economic and other development potential lies in its strategic location, renewable energy particularly geothermal energy, growth in the tradable sector through investments in infrastructure, and development in its tourism sector. El Salvador — moreover — has the potential to improve its business conditions through digital transformation, promote human capital development, and improve political and other grounds that can further improve the lives of its citizens.
But there are economic, social and other development challenges, despite improved conditions on various grounds in El Salvador. There is a declining but high poverty (around one-third of people), inflation and unemployment in El Salvador, where economic growth remains low and public debt-to-GDP remains high. Moreover, persistent inequality, a struggling education system with high dropout rates, and the high rates of crimes (including drug trafficking) due to organized criminal gangs, though these have recently improved to some extent, have been impacting El Salvador, which was rocked by a bitter civil war in the late 20th century, and the human development potential of many. Institutional weaknesses including historical issues with corruption and high exposure to natural disasters pose significant challenges to development.
But these are not the only challenges to the Republic of El Salvador. Political and other grounds, which are crucial for development though these are often less emphasized, also remain vital challenges. Political and civil rights concerns center on a significant concentration of power within the executive branch, the weakening of the rule of law and the erosion of judicial independence. Moreover, the violations of various civil rights including arbitrary arrests, harsh prison conditions, torture and restrictions on freedom of expression and the media hinder development — at the desired level — in El Salvador. As per the reports of the BBC, the media are among the victims of widespread violence in El Salvador.
But it is not that the government initiatives in El Salvador are absent. Policy-based, legal and other initiatives have been helping address challenges and have been playing a vital role in development. For instance, various plans including the Plan Cuscatlán, which outlines priorities for economic development, security, and human development, and the National Development Plan, a more comprehensive, official government document for national planning and development, have improved economic conditions and addressed inequality, a notable concern in El Salvador despite it is more developed than many countries, and other development challenges. The stern anti-gang measures of Bukele’s government have reduced gang crimes. But these have not been implemented as desired, reducing the chance of development as planned.
The development persuasion of El Salvador, which became a fully independent republic in 1841, is further impacted by several limitations to the government’s efforts. Inconsistent enforcement of laws, limited initiatives to address weak infrastructure, poor institutional quality and limited focus on addressing corruption have led to limited outcomes and have been impacting the economic prosperity of many, along with organized crimes, which lead to the deaths of several thousand every year, and prison violence, an often-occurring event in El Salvador. Additionally, there is insufficient public investment in sectors like education and a lack of consistent stakeholder dialogue and participation in development initiatives.
Development is a continuous process. But planned measures can help address challenges and improve economic, political and other aspects — desirably. The government of El Salvador needs to ensure high economic growth through a variety of means including ensuring economic diversification and reducing institutional weaknesses. But emphasis also needs to be given to addressing poverty and growing inequality, through human capital development and entrepreneurial opportunities. This will help improve the lives of many. But unless poverty is addressed, development may not mean much to a significant portion of people in El Salvador. Addressing gang crimes, which is still challenging though El Salvador has reduced it much, is vital.
But the government of El Salvador needs to improve its political grounds and address other development challenges. Revitalizing democratic institutions, ensuring fairness in elections, and holding officials accountable for human rights violations will be effective. But addressing arbitrary arrests, torture, and suppression of dissent is also vital to improve human rights grounds. Ending the harassment of the media for reporting on corruption and organized crimes will address these and improve various grounds in El Salvador.
