COUNTRY FACT SHEET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M00539R001802790020-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: July 24, 2009
• Sequence Number: 20
• Content Type: MEMO

Approved For Release 2009/07/24: CIA-RDP87M00539RO01802790020-0
11. 1
COUNTRY FACT SHEET
NAME:
CAPITAL:
POPULATION:
c. 4.7 million (Jul 83) Population density
550 per square mile - one of greatest in the
world; 2.7 growth rate - overpopulation
increasing
AREA: 8,260 square miles
GDP: US $3.5 billion (1981)
PER CAPITA INCOME: US $700 (1979)
The situation in El Salvador continues to be one of
crisis. The government is facing serious economic, security,
political and social problems. Leftist insurgent forces
launched a military and propaganda offensive on 10 January 1981
aimed at establishing a controlled territory which could be
declared,a liberated zone, for which international recognition
could be sought. This offensive was largely quelled by
government forces; however, the insurgents are being resupplied
from abroad (primarily through Nicaragua) and continue to
represent a serious long-term threat to government stability.
Insurgency is the most immediate threat, not only in the
military sense, but also because the violence makes it
difficult to implement needed economic, political and social
reforms. There are also underlying socioeconomic problems
which are endemic and must be remedied.
The Salvadoran government is working to improve its image
in Latin America and Europe with a campaign to explain its
reform programs, amnesty, and efforts to reduce rightist
violence as well as to point out the fact that Cuba, Nicaragua
and other countries continue to actively support the
insurgents. The strong showing by President Duarte's Christian
Democratic Party in the March 1985 legislative assembly and
mayoral elections is viewed as an increase in popular support
for the government's programs and a repudiation of the
extremists.
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BACKGROUND
Salvador's chronic problems -- overcrowding, inflation,
vastly unequal distribution of wealth, and corrupt do-nothing
rulers -- came to a head early in 1979 when political violence
brought the country to the brink of anarchy. Fraudulent
elections in 1972 and 1977 and repression of the opposition had
disillusioned most Salvadorans about the political process. The
leftist popular fronts grew and became bolder, prompting bloody
confrontations with security forces which led to a 60-day state
of siege beginning in May. Terrorism from both left and right
continued. Both the economy and the government were nearly
paralyzed by the time President Carlos Humberto Romero was forced
out of office on 15 October 1979.
Junior and field-grade military officers who led the coup
against Romero proclaimed their intention to restore order,
create a climate for orderly honest elections, eliminate
corruption, and institute basic social reforms. Colonels Jaime
Abdul Gutierrez and Adolfo Majano, prime movers of the coup,
formed a Junta consisting of themselves and three civilians, two
of them moderate leftists.
The..Junta soon found itself besieged on all sides by
conflicting interest groups and unable to agree on reforms.
Violence from the far left, which rejected the Junta from the
outset, escalated to become a daily direct challenge to the
Junta's authority. By late December 1979, the three civilians
had left the Junta and the cabinet had resigned. The replacement
Junta consisted of Colonel Gutierrez, Colonel Majano, two
prominent Christian Democratic leaders, and an obscure
independent. Its record of improving on its predecessor's
performance was fair but worse regarding the restoration of order
and the reduction of violence. With Cuban and Nicaraguan
support, the principal leftist groups "officially" began the
insurgency in January 1981 and continue fighting tenaciously to
bring about the collapse of the government. In January 1981, the
Junta was reconstituted again with Christian Democrat leader Jose
Napoleon Duarte designated President of the Junta and Colonel
Abdul Gutierrez as Vice President. In the March 1982 national
elections a new constituent assembly was elected and Alvaro
Magana was appointed President. In June 1984, Jose Napoleon
Duarte was inaugurated as President after winning a run-off
election against Roberto D'Aubuisson. President Duarte's party,
the Christian Democratic Party, won major support for its
policies with its victory in the March 1985 legislative assembly
and mayoral elections.
S F. C _ R F. T
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THE ECONOMY (Summary)
El Salvador's economy shows some signs of recovering
(essentially in the construction industry) from five years of
guerrilla war, but domestic violence and intense political
infighting are seriously affecting new investment. With repayment
prospects so uncertain, foreign and domestic banks are reluctant
to expand credit to businessmen. Agricultural production is off
as rural violence and the land reform program encourage a shift to
food crops from export crops and disrupt normal marketing
channels. Private consumption is down drastically because of
reduced incomes and shortages of both domestic and imported
goods. A severe shortage of foreign exchange -- reflecting
falling export earnings, declining foreign capital inflows, and
continuing capital flight -- is frustrating the government's
attempt to end the economic decline.
For the foreseeable future, El Salvador will be in continuing
need of substantial financial assistance. Five years of
disinvestment and extensive damage means that considerable
machinery and equipment must be put in place and cropland improved
before increases in output can be sustained. Domestic resources
are limited, and foreign investors will require a period of
stability before returning to El Salvador on any significant
scale. While reconstruction is underway, the economy will
continue to be vulnerable to'international economic shocks.
Increases in oil prices, disruptions in export markets, and
falling commodity prices could delay progress at any point.
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S E C R E T
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