El Salvador: Political, Economic, and Social Conditions and U.S. Relations

Throughout the last few decades, the United States has had a strong interest in El Salvador. During the 1980s, El Salvador was the largest recipient of U.S. aid in Latin America as its government struggled against the Farabundo Marti National Liberation Front (FMLN) insurgency during a 12-year civil war. A 1992 negotiated peace accord brought the war to an end and formally assimilated the FMLN into the political process as a political party. After the peace accords were signed, U.S. involvement shifted towards helping the government rebuild democracy and implement market-friendly economic reforms. Mauricio Funes of the FMLN was inaugurated to a five-year presidential term in June 2009. Funes won a close election in March 2009, marking the first FMLN presidential victory and the first transfer in political power between parties since the end of El Salvador's civil war. Funes' victory followed strong showings by the FMLN in the January 2009 municipal and legislative elections, in which the party won a plurality of the seats in National Assembly and the largest share of the municipal vote. As he starts his term, President Funes faces a number of political, economic, and social challenges. A conservative opposition bloc controls the National Assembly, which will likely make it difficult for Funes to advance his legislative agenda. Likewise, the global financial crisis and U.S. recession have weakened El Salvador's economy considerably, increasing the country's already widespread poverty. Moreover, El Salvador's violent crime rates remain among the highest in the world and will need to be addressed. Successive National Republican Alliance (ARENA) governments maintained close ties with the United States. The Saca Administration (2004-2009) cooperated in counter-narcotics operations, supported the U.S. coalition forces in Iraq, and implemented the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). Although some Members of Congress expressed reservations about working with an FMLN administration, relations between El Salvador and the United States will likely remain friendly. President Funes has pledged to remain in CAFTA-DR and expressed his willingness to work with the United States on a variety of issues. Following his election, the Obama Administration congratulated President Funes for his victory and pledged to work with him to build on the already strong ties between the United States and El Salvador.download