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El Salvador: Economic Recovery and Transformation

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Country: El Salvador

Duration: 2021-2023

Themes: Strengthening the Business Enabling Environment

Cross Cutting Themes: Gender, Climate, Digital

Anticipated Impact Areas: Quality Jobs, Private Investment and Productivity


The Challenge:

El Salvador is embarking on an ambitious economic reform agenda to overcome decades of low growth and stagnant productivity, combined with the devastating impact of the COVID-19 crisis. The country is facing challenges with its business environment that hinder the development of the private sector and the jobs it can create. Regulations need to be updated and reforms need to be implemented to encourage investment and protect investors while boosting the adoption of digital business models in the public and private sectors. In addition, there has been limited focus on incorporating climate change adaptation and mitigation measures in the economy.

The Mission:

A grant is being implemented by the World Bank through funding from C-JET to provide technical assistance on key elements of El Salvador’s reform agenda with a focus on recovery, growth, and competitiveness. The grant will provide technical assistance to the government on improving laws and regulations in areas that could include starting and operation a business, firm restructuring and insolvency, facilitating e-commerce and digital transactions, and climate change. Through these activities and more, this grant aims to facilitate reforms that will help boost job-creating investments, create an enabling regulatory environment for development and digital economy, facilitate climate change action and contribute to economic transformation by helping resources shift to more dynamic firms and sectors.