El Salvador

El Salvador ranks much better in Comparative Liveability (62nd) than Economic Competitiveness (83rd), particularly as a result of high levels of religious faith, resulting in an overall rank of 76th.

Although El Salvador has a steadily growing economy, it is one of the poorest countries in Latin America. Capital investment is limited, and investment in education is exceptionally poor, with the average worker possessing less than a year and a half of secondary education. The country’s ability to diversify is limited by low levels of commercialisation of innovation and entrepreneurship, particularly the lack of highly-skilled researchers in the workforce, and the high costs of starting a business.

El Salvador scores relatively badly on governance. Salvadoran regulations and the bureaucratic environment are below the global average for effectiveness. Under these circumstances, only a few investors are willing to risk their capital by founding businesses, opening factories and encouraging new industries in the country, although dependence on commodities is not a current problem. The country’s poor economic performance has resulted in poverty and significant material deprivation.

The Salvadoran economy has also been harmed by a number of natural disasters in the last few years, such as earthquakes and hurricanes. These have a disproportionately negative impact on such a poor society.

El Salvador’s Comparative Liveability ranking is significantly higher than that for Economic Competitiveness. Low income is the most negative indicator: income per capita of $4,776 is almost half the average for Latin America, and far below the global average. The country is densely populated and more than one-third of the population lives below the poverty line.

In addition, health-adjusted life expectancy in El Salvador is less than 60 years, well below the global average, aggravated by the presence of debilitating disease. Nevertheless, 84%^g report satisfaction with individual health. Other subjective indicators are similarly strong. El Salvador is one of the most religious societies in Latin American and in the world, with 97% ^w of the population reporting religious faith as important, according to the World Values Survey. The Roman Catholic Church plays an important role in Salvadoran culture and consequently, divorce rates are remarkably low. Widowhood rates are low, and the warm climate is also a positive factor.

Salvadorans report longer working hours (49 hours a week), and correspondingly less leisure time than the rest of the continent. Although it is overall no worse than the regional average, equality of opportunity is limited in El Salvador, particularly along gender lines. This contributes to pessimism about social mobility.