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1 (January 13, 2005)

handle is hein.crs/crsmthabcdu0001 and id is 1 raw text is: Order Code RS21655 Updated January 13, 2005 CRS Report for Congress Received through the CRS Web El Salvador: Political, Economic, and Social Conditions and Relations with the United States Clare Ribando Analyst in Latin American Affairs Foreign Affairs, Defense, and Trade Division Summary Tony Saca, a businessman from the conservative National Republican Alliance (ARENA) party, was inaugurated as president for a five-year term in June 2004. President Saca faces the challenges of restarting a stagnating economy, passing legislation in a polarized political environment, and combating gang violence. Although 70% of Salvadorans approve of his overall job performance, a majority disprove of his decision to maintain a contingent of 380 Salvadoran soldiers in Iraq. The United States is working with President Saca to combat narco-trafficking, to resolve immigration issues, and to promote free trade, possibly through the proposed United States- Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). On December 17, 2004, El Salvador became the first country in Central America to ratify DR-CAFTA. On January 6, 2005, the U.S. government extended the Temporary Protected Status (TPS) of undocumented Salvadoran migrants living in the United States until September 9, 2006. This report will be updated as events warrant. For further information, see CRS Report RL32322, Central America and the Dominican Republic in the Context of the Free Trade Agreement (DR-CAFTA) with the United States. Background El Salvador, nearly the size of Massachusetts, is the smallest nation in Central America, and the most densely populated with 6.3 million people. With a per capita income of $2,050, it is considered a lower middle-income country. In the past dozen years, El Salvador posted solid economic growth, held free and fair presidential and municipal elections, and survived a series of natural disasters. Significant problems remain, however, such as endemic poverty and rampant gang violence. These social problems, as well as a polarized political system, are inextricably linked to the country's devastating civil war that lasted throughout the 1980s. Political Situation Congressional Research Service * The Library of Congress

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