Partnership for Growth: El Salvador 2011-2015

Partnership for Growth: El Salvador 2011-2015

Bureau of Western Hemisphere Affairs
November 3, 2011

El Salvador and the United States have embarked on a new Partnership for Growth (PFG) to mobilize the traditional and non-traditional resources of both governments to remove obstacles and identify opportunities for broad-based economic growth in El Salvador. The PFG is an unprecedented bilateral collaboration based on a focused and deliberate strategy to generate the greatest possible impact of joint development efforts. El Salvador is one of only four countries worldwide with which the United States is developing this partnership.
Goal and Objectives

The PFG will assist El Salvador in achieving higher, sustained, and more inclusive growth in line with other high-performing emerging economies. The United States and El Salvador will work together by:

* Formalizing commitments from both governments to reduce the effects of the constraints to economic growth over the next 5 years;
* Providing the conditions for other donor governments and international institutions to participate in a partnership for economic growth and development in El Salvador;
* Demonstrating to the people of El Salvador a clear commitment to addressing these constraints;
* Promoting a productive relationship between the government and private sector based on reciprocity and a shared vision for the nation of El Salvador; and,
* Reinforcing a bilateral relationship of mutual respect and demonstrated action.


constraints to higher growth

A joint U.S.-El Salvador economic team conducted an analysis of the constraints to growth in El Salvador. This assessment identified crime and insecurity and low productivity in tradables as the two most critical constraints. Based on this assessment, El Salvador and the United States developed a joint country action plan that identifies the most important activities to unlock these constraints.
JOint COuntry ACTION plan for 2011-2015

The PFG joint country action plan consists of several inter-related activities. To improve productivity in tradables, the two governments will promote a business-friendly institutional environment, improve infrastructure, invest in human capital, and encourage financial capital. The two governments will address crime and insecurity through programs to strengthen rule of law institutions and to prevent crime and violence. The plan will also provide a foundation for the engagement of other donors, stakeholders, the private sector, and civil society from both countries.
anticipated outcome

Over the next 5 years, the PFG seeks to create the conditions for El Salvador to reach high, sustained, and inclusive economic growth. The success of this joint endeavor will require strong engagement from both governments and broad participation from civil society. It will require that the Government of El Salvador foster a more conducive investment environment and ensure the economic impact on the population. The United States will improve internal coordination and focus its efforts in support of the PFG goal and objectives. Both governments will engage the private sector and civil society as active partners in the implementation of the PFG.
implementation plan

The Joint Country Action Plan is flexible and will be revised as needed so it responds to new developments and opportunities. Through joint efforts, the United States and El Salvador will provide policy direction and monitor the overall implementation process over the course of the Partnership for Growth.

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