[CISPES-Update] Funes Administration Calls for New Economic Model in El Salvador

[CISPES National Office]

Funes Administration Calls for New Economic Model in El Salvador


 


 



 


CISPES <http://www.cispes.org/>  Update


April 26, 2010

 

Included in this update:

*	Salvadoran Conference <>  Elevates Struggle against National and
Regional Mining Projects
*	El Salvador <> ’s First Sexual Diversity Unit Created to Defend LGBT
Community

 

 

During the second week of April, President Mauricio Funes unveiled the
administration’s Plan Quinquenal (“Five-Year Plan”), the initial phase of a
15-year strategy that will completely transform the country’s economic
model, replacing the failed neoliberal model and consolidating a democratic
system of governance by 2024 – a symbolic year marking the 200th anniversary
of Central American independence from Spain. Remarkably, this is the first
time in over 30 years that an administration has presented a strategic plan
for its term in office.

 

The two main objectives of the Plan Quinquenal are: implement a new economic
model that will reactivate the country’s productive sectors, discarding the
speculative neoliberal model imposed by the past administrations; and
reinforce the country’s democratic institutions, moving towards a fully
transparent system of government. The plan is rooted in the 2009 electoral
platform of the Farabundo Martí National Liberation Front (FMLN) party,
support for which resulted in the election of the country’s first leftist
President Mauricio Funes. The platform, known as the “Government Plan”, was
developed through the “Open Social Dialogue” – a comprehensive consultation
process undertaken by the FMLN to include input from the full spectrum of
Salvadoran social sectors.

 

Among the projects outlined in the Plan Quinquenal are: a State fund to
provide loans to small and medium businesses; an additional $2.1 billion for
public health, education and affordable housing; an economic reactivation
plan targeting the country’s overall macro-economic health as well as
policies to stimulate national productivity within strategic sectors (i.e.
agriculture, tourism and energy).  While no drastic changes to the country’s
economic system are proposed for this five year period, the plan will begin
to reverse the dual trends of deregulation and privileging private foreign
investment over national production – neoliberal economic policies heavily
favored by the previous four Nationalist Republican Alliance (ARENA) party
administrations.  These initial changes will set the stage for subsequent
administrations to make more profound changes in the future.

 

As of now the plan requires $4.88 billion over the next four years, with
most of the funds earmarked for new social investment programs; $1.71
billion of the funding has already been identified.  According to Funes’
Technical Secretary Alex Segovia, the support of all political parties and
their legislative fractions will be crucial to the success of the plan. The
Legislative Assembly will need to approve international loans to finance the
plan and pass legislation to support the plan’s proposed policies. The
administration will continue to consult party fractions, as well as
Salvadorans living abroad, before finalizing the Plan Quinquenal.

 


Salvadoran Conference Elevates Struggle against National and Regional Mining
Projects