Despite progress through the implementation of proactive social policies, a lot more needs to be done in a country with traditionally limited social spending and high inequality rates.
Insufficient employment possibilities keep pushing young Salvadorans to (illegally) migrate to the US. The lack of competitiveness of the economy is hampering diversification of the productive sectors. The negative impact of the poor human security situation can be felt in all layers of society. Violence and crime take away individual development opportunities for young Salvadorans but also affect the economic performance of businesses.
One of the objectives pursued by EU cooperation during the period 2014-2020 is the support of the economic framework with the objective of increasing diversification of production, investment, innovation, cleaner production, low-carbon development, job quality with an emphasis on jobs for the youth and exports of SMEs and cooperatives, especially in view of the implementation of the Association Agreement signed between the EU and Central America.
Better donor coordination and joint programming is being strongly promoted by the European Commission through its delegation in San Salvador.
- The Multiannual Indicative Programme (MIP) 2014-2020, with a financial allocation of €149 million, is a direct response to the priorities set by the government in its National Development Plan. Job creation and formalisation of employment is the transversal axis of our future cooperation with El Salvador through our support to both the private sector development and the social inclusion of youth.
- El Salvador benefits from the regional cooperation programmes for Latin America including: Al-Invest 5.0, EUROSOCIAL+, EUROCLIMA, INTEC, El PAaCTO, ICRIMEN, ERASMUS+ as well as interventions under LAIF (DINAMICA), ALFA (higher education cooperation), AL-INVEST (internationalisation of SMEs), EUROCLIMA (climate change), LAIF (infrastructure), EURO-SOLAR (energy for isolated communities), @LIS (information society) and COPOLAD (cooperation on anti-drugs policies).
- In addition, funds from thematic programmes are made available for Latin America regional cooperation, currently financing a Latin American Investment Facility (LAIF) climate change window. El Salvador benefits from the climate change/food Security project PRO-ACT and is also eligible for WATERCLIMA (watershed and coastal management).