from family members that keep the Salvadoran economy afloat but just barely. Here's an article from last year by someone who lives there.
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...Foreign loans are only a piece of the life preserver momentarily keeping El Salvador's economy afloat. The real mainstay of the Salvadoran economy-remittances from Salvadorans living and working abroad-has nothing to do with macro-solutions. As Salvadorans face an ever shrinking labor market, more and more see emigration to the United States as the only option for their family's survival. Current estimates are of between two and a half and three million Salvadorans living abroad, primarily in the U.S., while six million Salvadoran remain at home. Approximately 600-700 Salvadorans leave each day for the United States.
Salvadorans working abroad are constantly sending more and more money back to their families in El Salvador, most of which is spent on basic things like food, education, and clothing. In 2004 Salvadorans sent 2.5 billion dollars to El Salvador, significantly more than in 2003. Instead of being concerned about the dependence on this large quantity of money-remittances as a percentage of the gross domestic product in El Salvador are one of the highest in the world-conservative Salvadoran politicians and their backers in the financial sector support emigration. They see it not only as an economic escape valve, but also as a source of profits; banks skim off large percentages in service charges for wiring money from the U.S. to El Salvador. Remittances are so much a part of the economic reality for Salvadorans that one can wait many hours in line at banks around the first of the month, as hundreds of people line up to withdraw the money their families have sent. Of course, with the dramatic rise in the cost of living, remittances also don't cover as much as they used to. Thus, the strain of the economic crisis is felt not only by those living in El Salvador, but also by Salvadorans working in the U.S., who now must send more money to cover their families' needs.
While the cost of living and remittances continue rising in El Salvador, its economic growth in 2004-estimated between 1.3 and 1.8 percent-was the lowest in Central America and the second lowest in all of Latin America, higher only than Haiti. As all economic indicators point toward further economic crisis in El Salvador, and possibly an economic collapse, people are making alarming predictions. FMLN deputy, Salvador Arias, El Salvador's 2001 Economist of the Year, has been warning about the coming economic crisis for years. Yet as the situation gets worse and ARENA shows no willingness to discuss proposals for changing course, he and others are comparing El Salvador's current situation to the months leading up to Argentina's economic collapse in December 2001.
http://www.thirdworldtraveler.com/Central_America/ElSalvador_EconCollapse.htmlEl Salvador 2006
In short, El Salvador is a broken country.
Murder rates are the highest in the hemisphere.
Poverty is institutionalized.
The environment is degraded badly.
The political climate is polarized.
The economy is predatory in its avarice.
And the average person is trying to get out.
Urban poverty, San Salvador, El Salvador