When I wrote my Travel as a Political Act book a couple of years ago, I included a chapter on El Salvador. Realizing that things here have changed substantially in just that short time, I needed to be sure my impressions were still valid. So I sat down with our guide, Cesar Acevedo, and Professor Knut Walter from the University of Central America. Cesar is a soft-spoken Salvadoran who fled the war with his family, grew up in Alberta, Canada, and came home 15 years ago when peace arrived. Professor Walter is a stony and sage Norwegian who’s spent most of his long adulthood here, and feels like a font of unemotional wisdom as he observes the scene. Below are a few updates I gleaned from the conversation (which will be of particular interest if you’ve read that chapter of my book).
El Salvador’s recent history is even more tumultuous than Nicaragua’s: It begins with a long tradition of right-wing military governments who brutally repressed campesinos. Through the 1980s, the leftist FMLN guerilla insurgency threatened to take power (opposed by the US government, which spent $1 million a day to keep the pro-business ARENA party in power). These two forces met in a bloody civil war. With the peace accords to end that war, the FMLN traded in their weapons for a place at the governmental table, and today they are the ruling party. Only by offering up a less political candidate for president ‘ Mauricio Funes, who is known more as a journalist and a writer than as a politician ‘ could the former guerillas win a slim majority to take the presidency in 2009. Today the FMLN seems to respect the democratic process and the country, exhausted by extremism, feels determined to be peacefully pluralistic.

In the last decade, extreme poverty in El Salvador has declined significantly. And yet, the FMLN seems to accept democracy, capitalism, and a globalized world. Professor Walter said, “Consider my breakfast: I eat oatmeal from Nicaragua, powdered milk from Australia, my fruit is from Guatemala…and the coffee is from El Salvador. Importing coffee to El Salvador would be like carrying coals to Newcastle.”
On the global scene, El Salvador has been dealt some miserable cards. There’s just no way it can compete. El Salvador is one of the few countries that consumes more than it produces ‘ possible only because of remittances: Twenty percent of its economy is money wired home from loved ones doing mostly menial labor in the USA. Salvadoran cell phone contracts allow calls to the USA cheaper than local calls. Soil, rain, and air ‘ plus people ‘ are the only natural resources this country has. Half of El Salvador’s university students aspire to leave the country. They see higher education as their ticket out.
I always thought land reform was a driving issue of economic justice in Central America. Walter explained that, until this generation, land struggles were, indeed, a critical issue. But no longer. The post-civil war government gave land to soldiers in trade for disarming. Landowning soldiers simply sold their land. These days, people don’t want to work the land. They want an education and to get big-city jobs ‘ or to emigrate to a land with more opportunity. Labor is decapitated. There are no real strikes today. You couldn’t rally labor to support another war.

The export of young men to the USA to fill low-end jobs there and to send home money is promoted by El Salvador’s government. In Central America, the two countries with the closest economic ties to the USA are Costa Rica and El Salvador. Both get their money from the USA ‘ Costa Rica welcomes tourists, while El Salvador exports its labor…and its problems. Passports are issued fast and easy. The government basically is saying, if you’re not happy here and want to leave, fine. Here’s a passport. Now go. And, while immigrants send home lots of money, the resulting broken families ‘ poor single mothers trying to raise children alone ‘ leaves a society ripe for the growth of street gangs.
Walter lamented how, because the government has allowed the rape of its land, there will never be a real tourist industry in El Salvador. The government here has long been business-friendly ‘ allowing corporations to operate with almost no regulations. Because of this unbridled capitalism, El Salvador has little real outdoors to enjoy or use as a basis for growing tourism. Its rivers are polluted. Just to the south, Costa Rica has a marketable environment because its government shielded it from corporate abuse. Because of its natural charms, tourism thrives in Costa Rica today.
Politically, it’s easy to be the guerilla opposition and just complain. But now that the FMLN is actually in power, they must actually grapple with big challenges. Its priorities ‘ which seem to be accepted by all but the wealthy ‘ are: improve education and health care; deal with violence; and reform the tax codes so favorable to the rich.
Taxation is a hot-button issue among El Salvador’s wealthy, just as it is among American conservatives. El Salvador’s current tax code is a remnant of its past right-wing governments. Its main tax is a sales tax. (Sales taxes are the most regressive, and therefore favor the wealthy.) The maximum income tax is 25 percent, with loopholes for the business class. There is no property tax and no inheritance tax. Revamping this regressive tax code ‘ part of the country’s ARENA party heritage ‘ is one of the primary challenges of the current FMLN government.
I love how travel to developing ‘ or unraveling ‘ countries lets me see the problems confronting my own country in high contrast. I travel to places like El Salvador not just to try to better understand our world, but also to see where my own country is heading if we don’t smartly tackle problems confronting us. For example, in this petri dish of unbridled capitalism, I see the power of corporate ads, environmental damage as the downside of fewer regulations, and the consequences of paying down debt by squeezing health and education.
Walter considered El Salvador’s bloody civil war the growing pains of democracy. After lots of tumult and bloodshed, there is now a basis for democracy like never before. There are new political institutions. This fits my belief that different societies (whether Iran, China, El Salvador, or the USA) are on parallel evolutionary tracks. Absent naive and impatient external forces, if left to their own, societies develop in a way that is good for their people. (As we capitalists believe in the invisible hand of the marketplace, I see this as the invisible hand of the political arena.) El Salvador, along with the rest of Central America, is evolving. Their fragile democracies are maturing. The successful revolutions in El Salvador and Nicaragua have morphed into pragmatic and moderately corrupt political parties. The brutality of earlier strongman governments is a thing of the past. There is a respect for the political process and hope for progress without more armed resistance.
Interesting that you started these Latin American blogs by stating that you wanted to re-visit these places to see if your deelply held biases, prejudices and beliefs were still valid, especially as they pertain to America`s involvement. Not surprised that you still are holding on to your anti-American and anti-capitalist biases. Do you really think that the people you talk to who share your views, are going to contradict anything that you believe in? This is your definition of intelligent dialogue and analysis?
It is interesting to me to look at this as a world thing. Seems like this is a big concern in this country that we need to compete in the world market. Seems confussing to me at times because we want our children to be great engineers and scientist, but when it comes down to commitment to these things we don`t want to “pay” for it and I don`t know how this will be accomplished without some kind of dedication and investment to our own country. With gangs and drugs and violence taking over here too, I wonder how this represents in a smaller way what has happened in other countries in the world. We need some perspective and critical thinking here.
Education has been a commitment in this country for as far back as I can remember. Public funding of schools has increased dramatically from the 70s. We have spent MILLIONS and we have nothing to show for it, esp. in the math and sciences. To me, throwing money to show being”committed” to education is stupid if you do not get results but this is what happens when “progressives” control education.
Thank you for writing this. I care a lot about the countries and the people I visit, and I`m glad you do too. This is a short but insightful quick look at current El Salvador.
To Rick: Since you have been traveling to and posting about countries in Central America, any chance there maybe some travel video programs on those countries in the near future? My wife and I enjoy your dvd`s and programs on Europe and would love to see some produced on Central America.
Thanks for the encouragement. But I`m sticking to Europe for my TV work. I suppose some day I might do a special that studies issues of structural poverty in the Developing World (an on-going interest of mine) but for the time being I sticking to Europe. In fact just tonight I`ve charted out five new shows I intend to produce in Italy this spring to air in 2012. BTW, wouldn`t it be fun to have people with hard opinions about complex and difficult issues involving struggling people (like those in Central America) state if they picked these opinions up from TV news, other North Americans, or by actually visiting these places and learning from locals. We all have different views shapes by our life experience. And for some of us, actual travel and talking with people in foreign countries contributes to that experience.
Rick, thanks for another thought provoking post. It is good to read the views of of someone who belives in responsible capitalism. It seems to me too many people today who call themselves capitalists are not concerned about labor making a decent living wage. If labor is not paid enough to make a decent living wage there will be no demand for products, and the economy will go into decline, but too many people either do not realize this, or they do not care. I am glad you mentioned the polluted rivers; too often the externalities are ignored when the costs of production in an economy are calculated.
Rick, How can you call the revolution in El Salvador successful ? 10`s of thousands died and at the end of the war the political structure had changed very little. There was agrarian reform but the very rebels who fought to be land owners in most situations sold their lands, many to go illegally to the United States. The result of land expropriation was the destruction of key segments of the agricultural industry forcing our economy to be more dependent on imports. The war paralyzed economic growth for nearly 15 years and caused forced migration, tearing families apart. This conflict was caused by Russian backed rebels and sparked by the foreign ideology of liberation theology. The United States provided the support needed to prevent our country from becoming a Communist hell hole and move forward with at least a semblance of progress and opportunity for its citizens . Nicaragua provides the case study as to what would have happened if the rojos had won. US foreign policy is responsible for the freedom and relative prosperity (compared to the other central american countries) that we enjoy.
Rick where do I sign up!! No really I have been traveling all over for a decade now, and it has really opened my eyes how connected to the world we are. I have heard so many things on Media news that just is not true at all. My son is a teacher in public schools and as far as throwing money at education that is anything but true. He has to spend a lot of his own money on things that don`t exist. In college he was so incouraged to be a teacher because of shortages, but a lot of his class mates have been layed off. I don`t care what the Media says, if we aren`t engaged is our society and look at the big picture we will not move forward. I really want a good planet for my grand children. Media can use that word Progressives, but that is just a label. What are we really doing here?
Sorry for the long rant. I`m just sooooooo tired of all the arguing and finger pointing. Best wishes to all and Happy Travels.
Enough is enough. I`m a moderate and moderates have no party it`s either one or the other and if you don`t pick one you`re berated. Rick you want to know where we get our questions from. Here`s a couple After Obama took office my daughter`s high school had to cut their strings(musical dpt.) for lack of funding. I think musical dept. are a necessity in schools to broaden student`s cultural horizons. I don`t care who fixes just fix it. Two years later still no music dept. There is so much bickering that by the end no one has even addressed the problem, oh well lets go on vacation. We just had snow storm that crippled the south, and my wife couldn`t make it into work. Her boss, a doctor, who lives around the corner from the office; which was able to make it in. Our apartment complex`s roads were still cover in ice. Because she couldn`t make it in she lost a promotion that was handed to her 2 days before and her check was held for a month; which is allowed by SC state law with companies with fewer than 5 employees. My wife has never called in sick and has given her boss the best 2 quarters he`s ever had. Her boss is African-American and voted for Obama he is also a devoted baptist. So by our labeling standards that makes him both left/right.
Who`s to blame? Neither it`s a BS law that needs to be fixed period and it doesn`t matter by whom. During these economic times, no ones paycheck should be with held. I served my country in the U.S. Marines. My wife and I are back in school reeducating for the future. I`m sorry Rick I don`t have the time or “Money” to travel to these countries. But while I was in I traveled to Thailand and saw it`s poverty and when I talked to those people they didn`t care who fixed it they just wanted a better life. We have our own problems to fix here in the US first. I watch your travel videos to as an incentive to work hard and an escape from stress so I can see these amazing places one day. Not be bombarded again by politics like the news
Thanks, Rick. I`m always amazed at the praise some of my fellow citizens heap on our support of right-wing dictatorships. These critics don`t seem to realize that these dictatorships shut down the press, freedom of religion, freedom of association, freedom of speech, etc…..all liberal ideals upon which the USA was founded. They seem to want to be in the same league with Nazi Germany, Stalinist Russia and Mao`s China, all of which curtailed these freedoms and persecuted the liberal peoples of their own countries who promoted them. Yet, there these “patriots” are, every day…tuning into Geobbels little deputies of propaganda on Fox News.
It is no coincidence that the most successful Latin American countries have been those that follow market democracy as their economic model. Leftist governments that following populism are the most destructive (Venezuela anyone?) Lessons to learn from Latin America should be to look at the models of success stories such as Chile. It has applied and maintained the most far-reaching and coherent market liberalism policies for the longest time. Per capita income has more then doubled since the 80`s. According to the Institute for Liberty and Development in Santiago, the poverty rate in Chile between 1987 and 2006 decreased from 45 to 14 percent. Peru and El Salvador have similar successes all due to free markets. Amazing what one can learn about the very real positive effects that market capitalism (not crony capitalism) and democracy can have on society. But if one only gathers information from sources and people that agree with their anti-capitalist, anti-democracy, and anti-marketism impulses, then how can they call themselves intellectual? The haughtiness and condescension displayed by some “world travelers” only shows their true ignorance. Keep on traveling!
Yes, jd, but there`s a confounding variable: Latin American countries that have embraced a capitalist model enjoy the enthusiastic economic support of the good ol` USA, whereas those that flirt with socialism or Marxism are viewed as a threat and burdened with sanctions, military involvement, or worse. So it`s sort of a self-fulfilling prophecy for an American to say, “Latin American countries that embrace capitalism will be successful.” (Not to mention that we`re evaluating them based on our very North American notions of “success.”) If Latin America were allowed to evolve in a vacuum, it would be interesting to see how the implementation of the various economic systems would actually play out. The results may be the same…but not necessarily.
My definition of success [INVALID] freedom of the human spirit [INVALID] is not just an American ideal but a UNIVERSAL one. All humankind, by definition of our common human spirit, will gravitate toward freedom and democracy. Because America allowed an entreprenurial spirit to flourish, and with it innovation, risk taking, property rights, etc. is the main reason our country was an economic success. Gravitating away from true capitalism into crony capitalism has given “capitalism” a bad name with some who do not know the difference. Wealth formation created by market economies is the only proven way of economic success, so if a progressive truly wants to do something about poverty in Latin America, they should promote free trade policies, economic reforms of a market economy among all nations, and not automatically support leftist populism just because it is inherently anti-American. This is just my observations from years of travel and work abroad experiences.
http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx List of sanctions by the U.S., government site. I didn`t see many South American countries on it.
What is so wrong about promoting American ideals? Aren`t human rights, democracy, limited government, freedom, economic liberties attained through capitalism, something all people should be able to attain? Let me ask these “Intellectuals” who promote Marxist ideas and minimize communist crimes – what is your definition of success? I believe these people, no matter how noble-sounding their objectives are, are driven by naïve idealism and loathing of Western imperfections. They embrace a utopian, pollyanna vision of a society free of inequities between classes, races and genders; a society free of profit, greed and war. The more Western democracies tried to overcome their shortcomings, the more the Western idealists (my definition of progressives) trust the empty rhetoric of Marxists. Foregoing platitudes to eradicating poverty, in the end, the only equality that Marxists, leftists, and communists ever achieved was that of a breadline and that of a mass grave. Is this what anyone would want for Latin America?
American Ideals, jd? You must mean the words…you surely can`t mean the actions. Just now Egypt is finally trying to shake off 30 years of brutal dictatorship that we supported with billions of dollars per year. btw, when was the last time you visited and witnessed for yourself the amazing prosperity of your wonderful free market Egypt? (sarcasm). Your reality exists in some sort of dream world, where words have meaning and actions have none. You remind me of the old joke: “Are you going to believe what you see or what I tell you”. There is no duty, honor or country in a corporation. Corporations have more rights than humans and none of the responsibilities. Their sole purpose is to make a profit and in fact it is illegal not to. You`d do well to read “War is a Racket” by General S. Darlington Butler. He oppressed people all over the planet for the good old usa corporations…but finally saw the light.