{ "id": "RS21655", "type": "CRS Report", "typeId": "REPORTS", "number": "RS21655", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 426892, "date": "2013-04-05", "retrieved": "2016-04-06T23:32:13.147941", "title": "El Salvador: Political and Economic Conditions and U.S. Relations", "summary": "Congress has maintained a strong interest in developments in El Salvador, a small Central American country with a population of 6 million. During the 1980s, El Salvador was the largest recipient of U.S. aid in Latin America as its government struggled against the leftist Farabundo Marti National Liberation Front (FMLN) insurgency during a 12-year civil war. A peace accord negotiated in 1992 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 toward helping successive Nationalist Republican Alliance (ARENA) governments rebuild democracy and implement market-friendly economic reforms. \nFunes Administration\nTwenty-one years after the signing of the peace accords, El Salvador is governed by an FMLN Administration. In March 2009, Mauricio Funes, a former television journalist and the first FMLN presidential candidate without a guerilla past, defeated Rodrigo \u00c1vila of the conservative ARENA party for a five-year presidential term. President Funes has generally pursued moderate policies that have enabled him to form cross-party coalitions in the National Assembly, but caused periodic friction with more radical members of his party. \nNow in his fourth year in office, President Funes still has high approval ratings, but faces a number of serious challenges. His political influence has weakened since ARENA replaced the FMLN as the largest party in the legislature and the attention of both parties has turned to the 2014 presidential contest, which President Funes is constitutionally barred from contesting. Nevertheless, Funes successfully mediated a resolution to a months-long standoff between the Salvadoran judiciary and legislature over the composition and power of the Supreme Court in August 2012. In the economic realm, the Funes Administration is seeking to boost investment and growth, which has been inhibited by low productivity, natural disasters, and insecurity. In an attempt to address insecurity in the country, the Funes government endorsed a historic\u2014and risky\u2014truce involving the country\u2019s largest gangs. The truce has contributed to a large reduction in homicides since March 2012.\n2014 Elections\nPolitical attention in El Salvador is turning toward the country\u2019s March 2014 presidential elections. ARENA has selected Norman Quijano, the popular second-term mayor of San Salvador, as its standard bearer. His running mate is Rene Portillo Cuadro, a lawyer. The FMLN has chosen Salvador S\u00e1nchez Cer\u00e9n, the current vice president and a former guerrilla leader, and Oscar Ortiz, the popular mayor of Santa Tecla. Former President El\u00edas Antonio \u201cTony\u201d Saca has also entered the race on a \u201cUnity Movement\u201d coalition ticket, but has yet to name a running mate. Saca could potentially force a runoff election.\nU.S.-Salvadoran Relations\nCongress has maintained an interest in events in El Salvador as well as bilateral relations, particularly in the security realm. During a March 2011 visit to El Salvador, President Barack Obama and President Funes pledged to strengthen cooperation through the new Partnership for Growth (PFG) initiative. The PFG commits both governments to work closely together to boost competitiveness and reduce insecurity in El Salvador. Congress has provided bilateral assistance, which totaled $28.2 million in FY2012, as well as aid provided through the Central American Regional Security Initiative (CARSI), in support of PFG priorities. The Millennium Challenge Corporation (MCC) recently completed a five-year, $461 million program that helped develop El Salvador\u2019s northern border region. MCC has determined that El Salvador is eligible to submit a second compact proposal to develop its southern coastal region. It is as yet unclear how the U.S. Treasury Department\u2019s recent designation of the MS-13 gang as a major transnational criminal organization whose assets will be targeted may affect bilateral anti-gang efforts. \nThis report examines current conditions in El Salvador as well as issues in U.S.-Salvadoran relations. 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