[{"bbox": [72, 108, 309, 137], "category": "Section-header", "text": "2 RATIONALE"}, {"bbox": [72, 162, 312, 188], "category": "Section-header", "text": "2.1 General Context"}, {"bbox": [91, 213, 1161, 559], "category": "Text", "text": "Already before the pandemic El Salvador had been struggling with low levels of economic growth, as well as social and governance challenges. The election of President Nayib Bukele in 2019 represented a break with the previous political establishment of two political parties that fought during the civil war and signed the peace agreement (1980-1992). President Bukele continues to enjoy strong support; in the 2021 legislative elections the President's party, Nuevas Ideas, and its allies, won an outright majority in the Legislative Assembly. It is expected that this majority will facilitate the implementation of government policies and long-term objectives related to the post-COVID recovery. Nevertheless, as outlined in the latest RMF (July 2021), the administration's lack of transparency, confrontational approach and authoritative drift have raised concerns among opposition politicians and civil society organizations about the actual separation of powers (1.2(8) was increased from \"moderate\" to \"substantial\" in RMF) and the centralization of decision-making in the Executive. President Bukele's announcement that he would run for President again despite the interpretation of the constitution has also raised concerns among observers. A prolonged state of exception in 2022 to combat gang violence has led to a significant decrease in the murder rate, and enjoys widespread support among the population, has nevertheless also heightened concerns about human rights."}, {"bbox": [91, 570, 1161, 703], "category": "Text", "text": "Fighting organized crime is a government priority, and it has been successful in curving the homicide rate in 2020 to 3.4 homicides per 100 000 inhabitants (6.6 in 2019, 9.2 in 2018, 10.8 in 2017), and during the COVID-19 lockdowns homicide rates have further declined to all-time lows. This tendency has continued in 2022 during the state of exception, although the numbers and other types of crime continue to be disputed. Disappearances have allegedly been increasing and allegations of abuse by security forces have been increasing, in particular during the state of exception."}, {"bbox": [91, 716, 1161, 874], "category": "Text", "text": "Lack of opportunities and violence push Salvadorans, in particularly youth, towards migration. El Salvador is a principal source of migrants to the United States; around 2 Mio Salvadorans are estimated to be in the US, and remittances account for around 20% of GDP. Relations between El Salvador and the USA are particularly marked by this issue, and the government's focus has been on trying to address the root causes of migration in terms of providing security and economic opportunities, although lack of transparency and clear policy direction risks undermining the main commitments in this regard."}, {"bbox": [91, 887, 1161, 1073], "category": "Text", "text": "Gender inequality and violence against women remain very high, and have deteriorated during the pandemic: women, who suffer higher levels of underemployment and marginalization in the labour market, have been strongly affected by the reduced economic activities during lockdowns. There are also reports of increasing levels of Sexual and Gender Based Violence (SGBV). Civil society organizations have criticised a lack of gender perspective in government policies to address the impact of COVID-19 on women and girls. Violence by security forces and gangs continues to affect disproportionately the LGBTI community and its activists. In rural areas, internal displacement due to violence, threats, climate change impacts and loss of land rights remains an issue, especially for the indigenous populations."}, {"bbox": [91, 1084, 1161, 1323], "category": "Text", "text": "Fiscal space remains limited. Low tax revenues (18.1% of GDP) have limited Government's capacity to stimulate growth. The sustained fiscal deficit (3-4% of GDP over the last 7 years) has led to a substantial increase in public debt. Concerns about high debt levels have been heightened during the COVID-19 crisis, where additional loans to combat the crisis mean that debt levels may increase to up to 90% of GDP and sharpens the risk of default (and remain \"substantial\"). The Fiscal Responsibility Law remains suspended due to the crisis, but its aim remains to achieve a sustainable debt level in 2030. However, the RMF (July 2021) identifies a possible agreement with the IMF as a core condition for macro-economic and financial stability (2.1), a risk that remains \"moderate\". The recent approval of Bitcoin as national currency alongside the USD has called international attention, but its effect on the economy remains a source of controversy."}, {"bbox": [91, 1336, 1161, 1521], "category": "Text", "text": "The digital divide in El Salvador is deepening, both across and within regions, as well as deepening the gender gap in the country. Low connectivity, limited penetration of digital infrastructure and low level of digital skills and gender gap are problems that have deepened with the COVID crisis, which has highlighted the importance of affordable access to digital services. The gaps in connectivity and access to digital services have prevented the most vulnerable population (low-income households and inhabitants of rural areas) from making use of digital opportunities, as well as developing digital skills. The limited digitalization also extends to the economy where only few companies have implemented digital solutions, even during the COVID outbreak."}, {"bbox": [91, 1534, 1161, 1586], "category": "Text", "text": "Digitalization is an important priority for the Salvadoran Government, who aims, through its Digital Agenda, to foster digital transformation."}, {"bbox": [91, 1599, 1161, 1652], "category": "Text", "text": "El Salvador is highly vulnerable to climate change impacts, natural disasters including flooding and drought. The high population density has strongly affected deforestation, land degradation and water scarcity. In 2020, heavy rains have"}, {"bbox": [1041, 1686, 1159, 1711], "category": "Page-footer", "text": "Page 4 of 14"}]