	Political, Security, and Economic Conditions

		FMLN Victory

On June 1, 2009, Mauricio Funes of the leftist Farabundo Martí National Liberation Front (FMLN), a party that was formerly an armed revolutionary movement, was inaugurated to a five-year term as president of El Salvador. Funes, a former television journalist and the first FMLN presidential candidate without a guerilla past, defeated Rodrigo Ávila of the conservative Nationalist Republican Alliance (ARENA) 51%-49% in a March 2009 election. Funes' presidential victory was a first for the FMLN, which fought a 12-year civil war against the U.S.-backed Salvadoran government before officially transforming into a political party following the signing of a peace accord in 1992. Funes' election has been described as a watershed moment in the history of El Salvador. Funes Administration

President Funes has generally pursued moderate policies since taking office. This has caused some friction between him and more radical members of the FMLN, including Vice President Salvador Sánchez Cerén, a former guerrilla leader who is the party's 2014 presidential candidate. Although his government has struggled to improve the weak economic conditions and to address the serious security challenges it inherited, President Funes has maintained high approval ratings (75% in March 2013). As noted above, the ARENA party picked up a number of seats and displaced the FMLN as the largest party in the Assembly in March 2012 legislative elections. The legislature also rejected that ruling. Norman Quijano, recently selected to serve as ARENA's 2014 presidential candidate, won reelection for mayor of San Salvador in March by 35 percentage points over his FMLN opponent. The FMLN hopes that the party's selection of Oscar Ortiz, the popular mayor of Santa Tecla, to serve as Vice-President Sánchez Ceren's running mate will boost the party's support among moderate voters. Former President Tony Saca has also entered the race representing a center-right "Unity Movement" coalition composed of GANA, the National Coalition party (CN), and the Party of Hope (formerly the Christian Democratic Party or PDC). The truce is not without its skeptics. With U.S. support through the Partnership for Growth initiative, the Funes Administration is seeking to attract foreign investment (see " Partnership for Growth Initiative "). Relations with the United States

Throughout the last few decades, the United States has maintained a strong interest in political and economic developments in El Salvador. During the 1980s, El Salvador was the largest recipient of U.S. military aid in Latin America as its government struggled against the FMLN insurgency. After the 1992 peace accords were signed, U.S. involvement and assistance shifted toward helping successive ARENA governments rebuild democracy and implement market-friendly economic reforms. In 2011, President Obama highlighted the importance of U.S.-Salvadoran relations by selecting El Salvador as the only Central American country to be included in his March 2011 tour of Latin America. In September 2012, both governments celebrated the completion of El Salvador's first MCC compact; a second compact proposal is currently being developed by the Salvadoran government. Both governments aim to involve the private sector and other donors in the PFG. Advances included:
Reducing Crime and Insecurity
the enactment of an access to public information law and the drafting of an asset forfeiture law; the establishment of an elite anti-gang unit in the PNC, the expansion of U.S. funded model precinct programs, the provision of community policing training to more than 10,000 police, and justice sector training provided to 389 officials (including public defenders); the inauguration of a Family Law Center and Mediation Center for child victims of domestic Violence; the creation of one task force to combat crimes against small businesses and progress towards creating another to combat crime on public transit; and the expansion of temporary employment, training, and job placements programs for at-risk youth; the expansion of full-time schools nationwide; and the opening of low-security prison farms for low-risk inmates. El Salvador is receiving an estimated $28.2 million in U.S. aid in FY2012. As previously mentioned, U.S. bilateral assistance to El Salvador is being realigned to focus on reducing insecurity and boosting productivity in the country. Since FY2008, Congress has appropriated nearly $500 million for Central America through Mérida/CARSI. Millennium Challenge Corporation (MCC)

In November 2006, El Salvador signed a five-year, $461 million compact with the Millennium Challenge Corporation (MCC) to develop its northern border region, where more than 53% of the population lives in poverty. Anti-Gang Efforts and the Designation of the MS-13 as a Major Transnational Criminal Organization

Since the mid-2000s, several U.S. agencies have been actively engaged on the law enforcement and preventive side of dealing with Central American gangs; many U.S. anti-gang efforts in Central America have begun in El Salvador.
Congress has maintained a strong interest in developments in El Salvador, a small Central American country with a population of 6 million. During the 1980s, El Salvador was the largest recipient of U.S. aid in Latin America as its government struggled against the leftist Farabundo Marti National Liberation Front (FMLN) insurgency during a 12-year civil war. A peace accord negotiated in 1992 brought the war to an end and formally assimilated the FMLN into the political process as a political party. After the peace accords were signed, U.S. involvement shifted toward helping successive Nationalist Republican Alliance (ARENA) governments rebuild democracy and implement market-friendly economic reforms.
Funes Administration
Twenty-one years after the signing of the peace accords, El Salvador is governed by an FMLN Administration. In March 2009, Mauricio Funes, a former television journalist and the first FMLN presidential candidate without a guerilla past, defeated Rodrigo Ávila of the conservative ARENA party for a five-year presidential term. President Funes has generally pursued moderate policies that have enabled him to form cross-party coalitions in the National Assembly, but caused periodic friction with more radical members of his party.
Now in his fourth year in office, President Funes still has high approval ratings, but faces a number of serious challenges. His political influence has weakened since ARENA replaced the FMLN as the largest party in the legislature and the attention of both parties has turned to the 2014 presidential contest, which President Funes is constitutionally barred from contesting. Nevertheless, Funes successfully mediated a resolution to a months-long standoff between the Salvadoran judiciary and legislature over the composition and power of the Supreme Court in August 2012. In the economic realm, the Funes Administration is seeking to boost investment and growth, which has been inhibited by low productivity, natural disasters, and insecurity. In an attempt to address insecurity in the country, the Funes government endorsed a historic—and risky—truce involving the country's largest gangs. The truce has contributed to a large reduction in homicides since March 2012.
2014 Elections
Political attention in El Salvador is turning toward the country's March 2014 presidential elections. ARENA has selected Norman Quijano, the popular second-term mayor of San Salvador, as its standard bearer. His running mate is Rene Portillo Cuadro, a lawyer. The FMLN has chosen Salvador Sánchez Cerén, the current vice president and a former guerrilla leader, and Oscar Ortiz, the popular mayor of Santa Tecla. Former President Elías Antonio "Tony" Saca has also entered the race on a "Unity Movement" coalition ticket, but has yet to name a running mate. Saca could potentially force a runoff election.
U.S.-Salvadoran Relations
Congress has maintained an interest in events in El Salvador as well as bilateral relations, particularly in the security realm. During a March 2011 visit to El Salvador, President Barack Obama and President Funes pledged to strengthen cooperation through the new Partnership for Growth (PFG) initiative. The PFG commits both governments to work closely together to boost competitiveness and reduce insecurity in El Salvador. Congress has provided bilateral assistance, which totaled $28.2 million in FY2012, as well as aid provided through the Central American Regional Security Initiative (CARSI), in support of PFG priorities. The Millennium Challenge Corporation (MCC) recently completed a five-year, $461 million program that helped develop El Salvador's northern border region. MCC has determined that El Salvador is eligible to submit a second compact proposal to develop its southern coastal region. It is as yet unclear how the U.S. Treasury Department's recent designation of the MS-13 gang as a major transnational criminal organization whose assets will be targeted may affect bilateral anti-gang efforts.
This report examines current conditions in El Salvador as well as issues in U.S.-Salvadoran relations. For related information, see: CRS Report R41731, Central America Regional Security Initiative: Background and Policy Issues for Congress and CRS Report RL34112, Gangs in Central America.