El Salvador  

While El Salvador has a low unemployment rate of 7%, the amount of physical capital available to Salvadoran workers is below average by international standards, placing El Salvador 81st on the Index. El Salvador’s domestic savings rate of -4% is even lower, placing El Salvador in the bottom five countries on this variable. Household expenditure is equivalent to only 23% of GDP, which suggests a weak domestic market. Export revenues relative to imports are moderate, as is the concentration of raw materials as a share of total exports. Foreign direct investment as a percentage of GDP is only 7%, showing the country’s limited ability to attract sufficient foreign investment. With 2.1% of loans defaulting and an interest margin of 7.5 percentage points, the banking sector appears moderately efficient. Furthermore, El Salvador also has a moderate inflation rate at 5%.

Barriers to entry in terms of the number of procedures required to start up a business are moderate by international standards, as are the number of new businesses registered in 2007, which reached 1,802. El Salvador ranks about average for value added in the service industry at 47th out of 104 countries. But ICT infrastructure is limited with a low level of internet infrastructure measured by bandwidth, a very low number of secure internet servers and extremely limited access to personal computers, with only 52 personal computers per 1,000 people. Information and communication technology exports as a share of exported goods are at 0.6%, and high-tech exports only 3%, placing the country 59th and 70th, respectively, on these variables. In addition, R&D expenditure is extremely low in El Salvador, at 0.2% of GDP. However, the country benefits from a moderate level of royalty receipts, being ranked 65th worldwide on this variable.

Salvadorans enjoy very high levels of political rights and a high degree of civil rights, illustrated by freedom to participate in political processes and the ability to freely express beliefs and ideas. Furthermore, El Salvador is a democratic country and its citizens benefit from highly regulated executive elections and open political competition for both the executive and legislative branches of government. However, El Salvador lacks a fully independent judiciary system and there are very few checks and balances set in place to prevent arbitrary decision making by political leaders. Moreover, El Salvador has a comparatively unstable regime, with the last regime change having occurred less than 30 years ago, placing El Salvador 42nd on this variable.

El Salvador has a moderate level of primary school enrolment and a below average level of secondary school enrolment, with ratios of 94% and 65%, respectively. Tertiary enrolment rates are also comparatively low with only 21% enrolment, ranking this country only 70th on this variable. With 40 primary students per teacher, El Salvador ranks in the bottom 15 countries according to this variable. El Salvador’s workforce is not particularly well educated; on average, Salvadorian workers have a low 4.1 years of secondary education, but a slightly better tertiary education level, ranking 92nd and 65th, respectively, on these variables. El Salvador’s expenditure per student at both primary and secondary levels is low – approximately $601 per student – placing them 69th on this variable. However, there is a high ratio of female to male enrolment in education, with 99 girls for every 100 boys.

El Salvador provides an average number of doctors and nurses per capita, but has a very low number of hospital beds – only 9 per 10,000 people. However, access to sanitation facilities is near the global average and life expectancy is just below. The country ranks 66th on the Index for levels of undernourishment, with 11% of the population not receiving their minimum calorific intake. El Salvador also ranks 64th for levels of infant mortality, with 23 deaths per 1,000 live births per year. Water quality in El Salvador is also about average, placing it at 63 out of 104 worldwide.* Subjective scores for personal health are higher, with 83% of Salvadorans stating they are satisfied with their personal health, and 77% reporting being well rested.* Only 27% report having experienced pain recently and only one in five respondents cite health problems.*

El Salvador faces significant security challenges related to refugees and internally displaced individuals, as well as issues with grievances of ethnic or social groups feeling that they have been discriminated against. Human flight from dangerous or degrading conditions also poses a significant challenge, with El Salvador ranked at 69 in the Index on this variable. Insecurity in terms of state sponsored violence and torture does affect the country to some degree as El Salvador ranks 47th, but there have been no casualties due to civil or ethnic war in 2008. However, the homicide rate is comparatively high at nearly 57 homicides per 100,000 capita, ranking El Salvador in the bottom 10 in the Index on this variable. The assault rate is similarly high, with El Salvador ranking in the bottom five worldwide.* Less than half of the respondents felt safe walking alone in El Salvador, but only 17% reported stolen property.*

Salvadorans have the ability of citizens to affect the laws and officials that govern them but the policy and institutional framework of government is underdeveloped and ineffective. Enforcement of the rule of law is applied unequally and only 33% of respondents have confidence in the judicial system and only 31% indicate that they are confident in the honesty of the elections.* The quality of the regulation of economic and commercial activity is near the global average but over 70% of Salvadorans think businesses and the local government are corrupt.* Confidence in the military is also low with El Salvador ranking 90th on this variable.*

Freedom of speech, movement, and religious expression are extremely high in El Salvador. Salvadorans are only reasonably tolerant, with 61% of respondents agreeing that El Salvador is a good place to live for ethnic minorities and immigrants, below average figures, internationally.* 65% of Salvadorans are satisfied with their freedom of choice, and the country ranks 74th in the Index on this variable.*

In El Salvador, social trust is low, with only 15% of respondents believing that other people can be trusted, and similarly, only 17% have volunteered and 21% have made donations.* However, in 2008, 52% of individuals in El Salvador report they have helped a stranger.* A higher percentage – 78% – believe they can rely on family and friends and most Salvadorans report that friends are important to them, putting El Salvador in the top 10 worldwide on this variable.* Citizens of El Salvador report high levels of religious practice and 56% of respondents indicated that they are members of a church or another religious organisation.* Membership in sports and arts associations was average, at 15% and 13%, respectively.*

* Data taken from the Gallup World Poll

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