El Salvador

El Salvador was deemed eligible for the MCA in the 2006, 2007 and 2008 selection rounds under the lower middle income category. The MCC signed a $461 compact for El Salvador on November 29, 2006.

 

 

MCA Status

On November 8, 2006, the MCC approved a 5-year, $461 million compact with El Salvador. El Salvador is the first lower middle income country (LMIC) to receive funding. The compact will focus its projects on the Northern Zone, the poorest region of the country, and will provide for education and training, community infrastructure that will increase access to water, sanitation, and electricity, support for small and medium enterprises, and a regional highway and series of connecting roads.

 

Country Compact

Compact (pdf)

Compact Summary (pdf)

 

 

Country Eligibility

In the FY 2008 selection process, El Salvador scored above the median on four of six “ruling justly” indicators, one of five “investing in people” indicators, and three of six “economic freedom” indicators. 

 

El Salvador’s performance (pdf) on the 2008 selection indicators

Review El Salvador’s performance (pdf) on the 2007 selection indicators

Review El Salvador's performance (pdf) on the 2006 selection indicators

Learn more about the MCC’s country selection process

 

Country Facts

Data are for 2006 (or most recent year available)

Per capita income (GNI, current US$)	$2,540
Poverty rate ($2 a day)	41%
Average economic growth, 1996-2005	2.6%
Population	6,991,736
Percent population rural	40%
Life expectancy	71 yrs
Literacy Rate	N/A

Source: World Development Indicators 2007

El Salvador at a Glance from the World Bank (PDF)

 

 

 

 

 

Other US Policies

Development Assistance:In FY 2006 USAID requested $25.4 million to increase the rule of law, strengthen and diversify the economy and strengthen the health system. These funds are authorized in under Child Survival and Health and the Economic Support Fund.

USAID strategy in El Salvador

 

 

Other Donors

The top three donors to El Salvador in 2005 were:

Donor	ODA/OA* Disbursement 2005 (net $ US millions)
United States	46.78
Spain	42.62
European Community	36.61

Source: Development Assistance Committee Database
Organization for Economic Cooperation and Development (OECD)
*ODA/OA is Official Development Assistance and Overseas Aid
www.oecd.org/dac/stats/idsonline

 

 

 

World Bank Involvement

The World Bank has been operating in El Salvador since 1949.  The newest Country Assistance Strategy proposes a total of $485 million between 2005 and 2008 to support growth, education and land reform, and social and environmental protection.

World Bank Assistance in El Salvador

 

 

Other Resources

Compendium of food and agriculture indicators from the UN’s Food and Agriculture Organization (FAO) - (PDF)

Department of State country profile