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Our World Monday, October 24, 2011

VADOR AT DISCOVER EL SAL- worldfolio.co.ukEL SALVADOR Onwards and upwards

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President MAURICIO FUNES of and U.S. President BARACK OBAMA in the Oval Office. President Funes was the first Central American leader to be received at the White House by President Obama after he took office. El Salvador’s progress has been endorsed by U.S. President Obama, and the Partnership for Growth will accelerate the nation’s development

xciting times lie ahead for “I also want to thank Presi- ple that they have.” and democratic revolution to El Salvador as its part- dent Obama when he recog- In addition to trade and im- implement a social model that Enership with the United nizes the importance of our migration, bilateral relations will help organize the econo- “WE ARE IN THE FACE OF A GREAT States, under the Partnership population in the development will focus on increased coop- my and promote human de- OPPORTUNITY FOR OUR POLITICAL, for Growth (PFG) strategy, is of his country. The presence eration on security matters and velopment,” summarized the ECONOMIC AND SOCIAL DEVELOPMENT, AN advancing at a steady pace. of more than 2 million of Sal- on greater support for devel- president. OPPORTUNITY THAT IS HISTORIC IN NATURE– Since the U.S. Assistant Sec- vadorans who work and live opment programs. As a result, As relations deepen between TO DO AWAY WITH THE OBSTACLES THAT IN retary of State for Economic, in the United States, and the reforms have been made in key the U.S. and El Salvador it is im- THE PAST DID NOT ALLOW US TO ADVANCE.” Energy and Business Affairs, importance that this popula- sectors to boost productivity portant to note that this year Jose Fernandez, visited El Sal- tion has in the development of and attract investment in agri- is the 190th year anniversary D. MAURICIO FUNES CARTAGENA, vador in August this year, both El Salvador through the re- culture, technology and the of the First Independence Cry, sides have been working close- mittances that they send year agro-fishery industries. The something that President Oba- ly to develop a set of activities by year.” government has reformed the ma acknowledged and com- and policies designed to over- PFG is not a new initiative agriculture sector through the mended the country on. come any barriers to econom- focused on improving a single Agriculture Family Plan. This “I am delighted to congrat- vadorans who call the United citizens.” ic development. sector, but rather a compre- year they will spend $800 mil- ulate the people of El Salvador States home. El Salvador is a El Salvador is the only coun- The Partnership for Growth hensive proposal aimed at ac- lion (out of $4 billion) for pub- as you celebrate the 190th an- key partner in our efforts to try in the Americas selected is an effort to put into practice celerating and sustaining lic investment, which will also niversary of your indepen- dampen the threats posed by to participate in the Partner- President Obama's Presidential broad-based economic growth help the economy. dence this September 15,” said transnational criminal organi- ship for Growth program (the Policy Directive on Global De- in a select group of countries. Another successful program President Obama. “The Unit- zations and gangs. Through other states are Ghana, Tan- velopment, and represents a “We are in the face of a great initiated by President Funes ed States and El Salvador share our Partnership for Growth, zania and the Philippines). The departure from business-as- opportunity for our political, Cartagena is the Sistema Social a strong commitment to we are committed to working simple fact that President Oba- usual for both the United States economic and social develop- de Proteccion Universal, which democracy, rule of law, and in- closely to boost economic ma has chosen the country is (El Salvador´s most important ment, an opportunity that is has helped protect the most vul- clusive economic develop- prosperity and create a safer, in itself a message of confi- trade and investment partner historic in nature – to do away nerable in El Salvador´s soci- ment. Our ties are further more prosperous, and more dence that will attract foreign and home to more than 2.3 with the obstacles that in the ety. The first measures included enriched by the 2,3 million Sal- democratic future for all our investment going forward. million ) and El past did not allow us to ad- temporary work programs, the Salvador. This effort recognizes vance as a unit towards a new construction of 25,000 homes the important role of policy model of development with for social housing, and the ex- reforms to support the private social justice,” said President pansion of basic services. sector and civil society in in- Funes Cartagena. President Fune’s aim is to creasing El Salvador's partici- “But also it is fundamental "write a new history in the field pation in the global economy. from the economic point of of social policy”. His first cam- “I want to thank publicly view because the majority of paign was three-pronged: to President Obama for including the countries give free uniforms and sup- our country in such important are just overcoming this inter- plies to 1.3 million students in initiatives like the Bridge Pro- national crisis better than oth- the public sector, to ensure that ject and the Partnership for er countries in the world based social security covered the un- Growth,” said President of El on models against poverty and employed and to eliminate fees Salvador Sr. D. Mauricio Fu- betting on their productive sec- for access to health services. nes Cartagena. tors and the hardworking peo- “We need to make a peaceful

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2 Monday, October 24, 2011 EL SALVADOR Distributed by USA TODAY

signing of the EU-CAAA, President Funes or- of this has been achieved through a radical over- Winning the battle ganised the most recent meeting of the political haul of their National Civil Police, which at the time organisation in , capital of El Salvador. of President Funes inauguration in 2009 had a 28% At the meeting President Funes addressed five - 30% acceptance rating, but today sees 74% of El Salvador knows it must sustain its successful efforts to increase security in order to important topics affecting each of these Central Salvadorans viewing them in a positive light. attract further investment American nations: security, social policy, climate It is with great foresight the President Funes, along change and natural disaster prevention, econom- with Secretary of Strategic Affairs for Presidency, Having adopted the US dollar as its official cur- some of whom have taken an anti-U.S. stance. ic integration and regional institutionalism. Franzi Hato Hasbun, and Foreign Minister Hugo rency in 2001, El Salvador is now entering a peri- President Obama was quick to praise both the In doing so, President Funes may have initiat- Martinez have implemented these new security od of growth and financial readjustment following country and President Funes himself on a recent ed an important era of change in Central Ameri- policies. Bringing in these new initiatives and poli- its own recession, and its recovery rates and sta- visit, saying “I think the partnership that we’re ca's political history, paving the way for further cies at a state level rather than at a government tistics continue to attract investors and foreign forging together is exactly what’s needed in the co-operation between the Salvadoran and U.S. level ensures that these measures will be adhered businesses, with some 19,000 American citizens Americas today — neighbors joining with neigh- governments in tackling drug trafficking and or- to over the coming years, increasing their chances already living and working full-time in the coun- bors to realize progress that none of us can achieve ganised crime. of success. It is a sign of great commitment, and try. It comes as little surprise that the U.S. is El Sal- alone. Every nation, I believe, no matter how large During President Obama's visit the two leaders also of great hope for the future. vador's most important trade and investment or how small, can contribute to that progress. And said that one of the key issues they discussed was partner given that it is home to over 2.3 million I believe that under the leadership of President Fu- one of regional security, with Funes calling their Salvadorans, a huge number when you consider nes, El Salvador can be a source of great prosper- recent security co-operations “the best weapon to that the current population of El Salvador is just ity and security for this region for many years to combat and reduce crime in the region.” Since over 6 million. come”. 2005 the International Law Enforcement Acade- But Foreign Minister Hugo Martinez was quick President Obama was also quick to point out my (ILEA), a police organisation run by the U.S. to point to new initiatives regarding emigration, the importance of partnership and co-operation Department of State, has been based in San Sal- when he gave a press conference just a few weeks between the two countries stating that “Instead vador where it trains local Salvadoran police forces before President Obama’s visit to El Salvador. As of the old donor-recipient model, we’re working in narcotics interdiction, counter-terrorism and pre- Chancellor of the Republic of El Salvador, Minis- as partners, with El Salvador in the lead, to con- ter Martinez spoke of reduced emigration from front the hurdles to growth and development. As the north of the country thanks to scholarships giv- El Salvador’s largest trading partner, we’ll help “WE FEEL THAT OTHER en to young people to study rural tourism and ad- identify reforms that can mobilize private invest- COUNTRIES AND REGIONS ARE ministration. The Minister also spoke of proposals ment, increase trade and create opportunities for NOW BECOMING INTERESTED to boost investment by second generation Sal- the Salvadoran people. And one of the most im- IN EL SALVADOR. PLACES SUCH vadorans in the U.S. in projects in their commu- portant steps is to foster collaborations between AS THE EUROPEAN UNION, AND nities of origin in El Salvador, and made his point government and the private sector, because both EMERGING POWERS LIKE clear that none of this economic or political growth have so much to gain when people are lifted out , RUSSIA, INDIA, WITH would have been possible without international of poverty and contribute to their country’s pros- WHOM WE HAVE BOOSTED co-operation. “We feel that other countries and re- perity”. DIPLOMATIC RELATIONS. ” gions are now becoming interested in El Salvador. Having suffered political unrest and upheaval Places such as the European Union, and emerg- for the past twenty years or so, a new feeling of op- ing powers like Brazil, Russia, India, with whom timism exudes from this government, which is we have boosted diplomatic relations. This is due mostly made up of members of the left-wing po- to our new approach to foreign relations, which litical party Farabundo Martí National Liberation has gone from making very close relationships de- Front (FMLN), which prompted Medardo Gon- vention of organised crime. The Federal Bureau termined by our sympathy or antipathy towards zalez, the General Coordinator of the FMLN to of Investigation and El Salvador's National Civil- the parties and governments of other countries, comment, “The legacy we would like to leave is a ian Police have also joined forces and togeth- to foreign relations as they should always be: re- country where we can live peacefully, with democ- er operate the Transnational Anti-Gang unit lations between states, open to the world, with- racy, without violence, and without hunger. We which addresses the problem of street gangs out putting any further restrictions on the interests hope to have a country where we Salvadorans can in both countries. Speaking of the need to and universal values we all share.” live in peace, and where there is no need for the tackle these issues at ground level as well as Since stepping into office in June of 2009, Sal- young people to go somewhere else to find a place internationally, Secretary of Strategic Affairs vadoran President Mauricio Funes's foreign pol- to work because they could not find it here.” for the Presidency, Franzi Hato Hasbun, said icy has prioritised maintaining continued close In May 2010, less than a year after taking office, “We have to win the battle against crime relations with the U.S. El Salvador has proved to President Funes's signed an EU- with the participation of the communities, be a committed member of the coalition of nations Association Agreement (EU-CAAA) which is set chiefly in the poor neighborhoods.” fighting against terrorism, having sent eleven ro- to boost trade and investment ties with Europe The country’s bloody Civil War ended less tations of troops to Iraq to support 'Operation when it comes into force next year. Other coun- than twenty years ago, in 1992, but already Iraqi Freedom' from 2003 to 2008. tries which look to benefit from the bilateral free the current government has managed to At the same time, El Salvador is developing po- trade agreement are Costa Rica, Guatemala, Hon- make El Salvador the only country in Cen- litical and economic ties with other centre-left duras, and Panama. Collectively these tral America with diminished homicide rates HUGO MARTINEZ, and centre-right governments throughout Latin six small countries form the Central American in recent years, reporting a 25% drop in ex- Foreign Minister and Chancellor of America, further distancing themselves from rad- Integration System (Sistema de la Integración tortion cases and boasting a significant de- the Republic of El Salvador ical leftist regimes throughout the sub-continent, Centroamericana; SICA ) and shortly after the crease in the amount of kidnappings. Much

THE NUMBERS AT A GLANCE Banking on growth The president of El banks, pensions, and the The Central Bank’s monthly Salvador’s central bank has stock market, are to be activity index indicates that the confidence in his country’s merged into one single enti- ty. The move is also expect- economy continues to gather economy, and its people ed to help to boost strength, growing by 3.2% transparency in the industry. year on year in April. Despite being the smallest Remittances from the 2.5 country geographically in million-strong diaspora are Nominal GDP: (m) 22.640 Central America, El Salvador vital to El Salvador’s econo- Real GDP growth: 2.4% has the third largest econo- “WHEN my. Most expats have settled my in the region. In common SALVADORANS in the U.S. and work in the Expenditure on GDP: Private with most countries around HAVE HAD THE services and construction in- consumption: 2.8% the world, its economy was CHANCES TO dustries, which are particu- Gross fixed investment: 3.6% dealt a blow in 2009 by the DEVELOP THEIR larly vulnerable to changes Exports: 7% global recession and real CAPACITIES, THEY in the U.S. economy and have Imports: 7% GDP contracted by 3.5%, but HAVE DONE VERY been badly affected in the a rise in exports and remit- WELL; THE PROOF IS past couple of years. Never- Origin of GDP (% real tances helped create a slow EVIDENT IN HOW theless, remittances contin- change): Agriculture: 2.1 return to positive growth in SUCCESSFUL THEY ue to rise: inflows increased Industry:1.9 2010. ARE WHEN THEY by 4.3%, totaling $1.8 billion, Services:2.5 The economy grew by 1.4% GO TO THE UNITED in the first half of 2011. GDP per head (US$ at PPP): last year, which is slightly STATES OR OTHER In addition to overseas re- CARLOS GERARDO ACEVEDO, higher than the estimated COUNTRIES.” mittances, imports and ex- 6.747 president of the Banco Central de 0.7%, and in June 2011 El Sal- ports are also key Recorded unemployment: 7% Reserva de El Salvador vador’s Economic Activity contributors to the national Volume Index showed ex- coffers. El Salvador has been pansion had risen to 3.6%. In promoting greater interna- addition, tax revenues and tional trade and a more in- exports were up and remit- vestment-friendly tances exceeded $2,100 mil- environment for years, em- lion, representing an increase barking on a wave of priva- of 4.5% compared to last year, tizations that has touched on according to the central bank. sectors such as telecoms and According to Finance Min- electricity distribution, as ister Carlos Caceres, the fi- well as banking and pension nancial system and increased funds. Tourism has been tax revenues are the two highlighted as a particularly main strengths of El Salvador velopment Banking System, untapped industry that is ripe that make it ready to face any which we expect to com- for foreign activity, as well as possible financial crisis in the mence operations shortly.” infrastructure and energy future, saying that its efforts The economy became ful- sectors – particularly in El to maintain fiscal stability ly dollarized in 2001, and af- Salvador’s potential to lever- enable it to increase tax rev- ter a decade of liberalization age its solar, wind and hy- enues and rationalize public the domestic banking sector droelectric energy sources. spending. has now become one of the Central bank statistics in- Also, Economy Minister strongest in regional securi- dicate that FDI grew $640 Hector Dada Hirezi recent- ty. International conglomer- million, or 8.3%, between ly launched the government’s ates have acquired the June 2010 and June 2011, to- Industrial Policy 2011-2024, country's most representa- taling $8.347 million, with which is jointly backed by the tive banks, resulting in an in- the financial sector receiv- business community to revi- jection of almost $1 billion in ing the greatest attention. talize and transform the eco- foreign direct investment “El Salvador is a small nomic sector and contribute (FDI). country, as many might say to national development. A new law seeks to the ‘Tom Thumb of the “Various indicators suggest strengthen the supervision Americas’, but it is a country that economic activity is re- of the financial sector by with great potential and a covering at an acceptable merging the supervisory population that has great ca- pace,” says Carlos Gerardo agencies, giving more regu- pabilities, like a diamond in Acevedo, president of the latory power to the central the rough,” says Mr. Acevedo. Banco Central de Reserva de bank. “It is a project we have “When Salvadorans have had El Salvador, the nation’s cen- been working on for some the chances to develop their tral bank. “As a government time, along with a degree of capacities, they have done we are committed to a input from the IMF, and the very well; the proof is evi- growth of 2.0%, which is a integration model we are fol- dent in how successful they more realistic target that lowing was first tested in are when they go to the Unit- would respond to various ini- Norway, Finland and Den- ed States or other countries. tiatives that are under way mark,” says Mr. Acevedo. They have excelled, indicat- or about to be implemented. Three supervisory commit- ing that there is a gross hu- We are strongly committed tees, which currently over- man capital just needing to implementing the new De- see the financial system and opportunities to develop.”

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Distributed by USA TODAY EL SALVADOR Monday, October 24, 2011 3

tries to participate in the Part- America. A helping hand nership for Growth program The program also includes with the United States, putting technical assistance from agro into practice the principles of development to exploiting The Partnership for Growth is one of many initiatives aimed at the new Policy Directive – to maritime resources, and the aiding El Salvador’s development drive economic progress in the transfer of technology and in- region and achieve sustainable novative know-how in order to El Salvador is making strides and projects, which will ex- ing active moves to increase economic growth. attract big IT companies. to recover from the global cri- ceed $4.5 billion,” said Dr. private investment, namely: President Funes and Presi- With the Bridge initiative, sis, and the country is expect- Segovia. The administration is the creation of a system to fos- dent Obama underscored the the government will use re- ed to grow by 2.5 per cent this now addressing fiscal issues as ter development, including the importance of working to- mittances from Salvadorans year. This has in no small part well as maintaining control establishment of a State Bank, gether on global climate living in the U.S. to create a been attributable to President over public finance. to help address the lack of cap- change, green growth, and fund to finance development Funes’ technical advisor Dr. The last assessment by the ital to finance strategic invest- clean energy, and also dis- projects, while the US will al- Alexander Segovia, an Oxford- International Money Fund re- ments; the establishment of cussed the importance of Cen- so help reposition El Salvador’s trained economist. veals that El Salvador has met Public-Private Partnerships tral American economic image in the world . Dr Segovia oversees Presi- 100 per cent of all indicators. where infrastructure, energy, integration efforts. President However, international co- dent Funes’ five-year social and The Anti Crisis goals have been ports, airports, transport sys- Obama pledged support to a operation is not a substitute economic plan, which includes met, the government have es- tems are concerned; develop- new Crossroads Fund in part- for El Salvador’s obligations as a strategic outlook to 2024. tablished a Universal Social ment of the port of La Union; nership with the Inter-Amer- a nation, and the country “The priorities are poverty, Protection System, and will and a new Free Trade Zone ican Development Bank to knows it has to work hard in equality, and all the other so- spend 4 per cent of GDP on so- law. foster more efficient and se- order to grow and develop in cial issues. These will make up cial programs. Most significantly, El Sal- cure regional transport net- every way. Technical Secretary 43 per cent of the programs The government is also mak- vador is one of the first coun- works throughout Central DR. ALEXANDER SEGOVIA Exporting a taste of home

“THROUGH OUR ALLIANCE WITH PEPSICO IN “THE U.S. MARKET IS VERY IMPORTANT TO US. “BECAUSE OF THE FREE TRADE AGREEMENT AMERICA IS FOR US THE BIGGEST GAMBLE THERE IS AN OPPORTUNITY TO BE SEIZED... THE STATES WE HAVE A TREMENDOUS OPPORTUNITY, AS WE GO HAND IN HAND FOR THE NEXT DECADE. THE MARKET IS SO WHAT WE'RE DOING IS PROMOTING OUR LARGE WE CAN NOT PUT LIMITS ON IT.” CULTURE THROUGH OUR PRODUCTS.” WITH A PERFECT STRATEGIC PARTNER.” JOSHUA ALVARADO, owner of Rio Grande Food Products D. CARLOS SLUMAN, chief executive of Livsmart ING. D. ALFONSO MOLINA PORTILLO, executive director of Embotelladora La Cascada

Salvadorans living in the U.S. send large amounts of products in the United States ternational markets to more flexible and there has life of consumers with bal- money ‘back home’ – but also make a ready market for and Canada for 20 years. achieve our mission of also been an exchange of anced and healthy beverages. brands ready to cater to their tastes “Our main objective is to “Bringing the best of Latin technological knowledge. Al- LivSmart makes more than always select the highest America to you.” so, being a dollarized econ- 130 million in annual rev- quality products by hand that Another company syn- omy helps us analyse costs enue from drinks made with- In recent years, Salvadoran Under its export-led preserve authentic Latin fla- onymous with the taste and better as there is no curren- out preservatives. business relationships with growth strategy, El Salvador vors,” said Alvarado. “Right flavour of El Salvador for the cy fluctuation,” said Ing. D. Today, Livsmart serves as the U.S. have been strength- has pursued economic inte- now because of the Free last 60 years is soft drinks Alfonso Molina Portillo, ex- a business unit of the group ened, thanks largely to the gration with the United Trade Agreement there is an manufacturing company Em- ecutive director of Embotel- Cabcorp (The Central Amer- U.S.-Central America-Do- States and Canada as well as opportunity to be seized – botelladora La Cascada, SA. ladora La Cascada. ica Beverage Corporation), minican Republic Free Trade other Latin American coun- in our case it's a market with A leader in the soft drinks “The U.S. market is very which is the anchor bottler of Agreement (CAFTA-DR), tries. an ethnic background. What market, its best known prod- important to us. America is PepsiCo for Central Ameri- implemented between El Sal- The U.S. is home to well we're doing is promoting our ucts are Salva Cola, Ko- for us the biggest gamble for ca and part of the Caribbean. vador and the United States over two million Salvado- culture through our prod- lashanpan and Cascade juices the next decade. The market Chief executive Sr. D. Car- in 2006. The Salvadoran rans, and remittances from ucts.” in different variations. Their is so large we can not put lim- los Sluman, explains how im- economy continues to ben- Salvadorans working in the Despite competition from products are 100 per cent Sal- its on it; our growth is con- portant the North American efit from a commitment to States are a major source of other importers in the U.S., vadoran and are identified as tinuous and we know that at market is for the future of free markets and careful fis- income for both individual the brand Rio Grande has the taste of El Salvador in some point will grow expo- Livsmart. cal management and has families in El Salvador, and spread to 22 states. both national and interna- nentially. We are interested “The first step is to gain been growing at a steady pace the country as a whole. In “We've worked hard to get tional markets. The Cascade in partnerships with super- market share. We had to since the signing of peace ac- 2010, the Central Bank esti- the most out of the free trade products not only stand out markets and convenience adapt the ‘marketing mix’, as cords in 1992. mated that remittances to- agreement. We had no sta- because they is 100 per cent stores…. to distribute our the Petit juice we consume Much of the improvement taled $3.5 billion. bility in the brand price com- Salvadoran but because they products. And we don´t want in El Salvador is not the same in El Salvador's economy is But in addition to sending petition, and that forced us have the lowest price in the to limit ourselves to just the as is consumed in the Unit- a result of the privatization money back home, this ex- to create a brand. The com- market – this is one of the nostalgia market, we are al- ed States. We believe that of the banking system, patriate population has an- petitive advantage of our company´s man advantage. so interested in the Afro- through our alliance with telecommunications, public other vital role for the products is quality,” said Al- Embotelladora La Cascada, American market.” PepsiCo in the States that pensions, electrical distrib- Salvadoran economy. Many varado. SA faces tough competition Health drink company we have a tremendous op- ution and some electrical yearn for (and are willing and “Our brand has evolved in- and presently has seven com- LivSmart, which was found- portunity, as we go hand in generation; reduction of im- able to pay for) a ‘taste of to a symbol of reliability, fla- petitors imitating the Ko- ed under the name of Bon hand with a perfect strategic port duties; elimination of home,’ and so constitute what vor and nostalgia for the lashanpan brand, hence the Appetit in 1981, is another partner. We are proud to say price controls; and improved is known among Salvadoran foods from our lands. Our company slogan “Kolashan- company capitalising on the we're a success. We consid- enforcement of intellectual business as ‘the nostalgia slogan “Lo Nuestro” (“Our pan, la original”. Free Trade Agreements and er ourselves capable, we have property rights. Capping market.’ Own”) reflects the convic- “Since the Free Trade business with the U.S. investment capacity, suitable those reforms, in 2001, the Joshua Alvarado, owner of tion to serve the Agreement was signed there LivSmart was the first partners, knowledge, U.S. dollar became legal ten- the Rio Grande Foods Prod- Latin/Caribbean communi- have been many more op- health and wellness compa- processes and brands, and a der in El Salvador. The econ- ucts, has been manufacturing ty not only in the United portunities. The exchange of ny of the Americas, and is willingness to go beyond the omy is now fully dollarized. and distributing ethnic foods States but also in other in- goods and services has been dedicated to improving the dream,” said Mr Sluman. Transportation services with a technical edge

Equidistant between Guatemala, Honduras and Ducal, rely on the tailor-made, Nicaragua, El Salvador offers an ideal transportation quality-certified transportation point in Central America services offered by the El Sal- vador-based outfit. Advanced Logistics Solutions, across Central America, and “Nobody does what we do,” a young company with aspira- we were having problems with says Mr. Quezada. “Our mod- tions of revolutionizing trans- Nicaragua and Costa Rica be- el is a fleet exclusively dedicat- portation and logistics in the cause of the loss of GPS signals ed to the customer, where we region, is known for being an in these countries. So in 2004 meet all needs in detail: what the “early adopter” when it comes we started our own network of customer asks for, that is what to applying technology to its op- communication antennas, in- he gets. Once we know what erations. For example, it was the cluding 22 in the mountains. If the requirements are, we can first logistic company in the an antenna needed a repair we offer a customized logistics so- country to feature GPS across had to literally run and fix it, lution, which could be a high- its entire truck and trailer fleet otherwise we had signal loss af- capacity truck, a double deck or to add extra security to its clients’ fecting a wide area: that was the even a narrow van, depending deliveries across the region. price to pay for having our own on the specific features the load “GPS technology has been GPS system in Central Amer- requires. That way we can al- around in Central America for ica. Now it is very common, but ways provide a tool that is ef- many years, but the companies we were the pioneers.” fective and attractive.” that provided the service had lo- Large multinational con- cal networks only,” says the com- sumer companies in their port- pany’s general manager Carlos folio, such as Unilever, Quezada. “Our clients operate Pepsi-Co, Coca-Cola and

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4 Monday, October 24, 2011 EL SALVADOR Distributed by USA TODAY Plenty of hard work ahead From a miserably low starting point of widespread illiteracy and truancy, El Salvador is slowly winning the battle to equip its people for the modern world

After years of strife, more the quality of education of- than a million Salvadoran fered , while ensuring its rel- children were still not in evance to a changing, school in the late 1980s. Poor technologically driven glob- families in the countryside al economy. in particular suffered a lack However, a large number of schools and teachers. As of children still are unable to a result, illiteracy is a huge attend secondary school be- problem in El Salvador, cause they need to work in where presently nearly 18 per order to support their fami- cent of the population can- lies: according to the United not read or write. Nations, more than 35 per- However, when the gov- cent of Salvadoran children Training El Salvador’s ernment took office in 2009, have to work, usually on sug- the figure was closer to 20 ar and coffee plantations, in per cent, according to offi- domestic services or as street cial estimates. vendors. leaders of the future According to Minister of The education situation Education Salvador Sanchez following secondary school Ceren, the government’s has its problems too. Ac- An educated workforce able to of Central American private uni- search to demonstrate the effects tute which is helping change the cording to El Salvador's gov- compete in increasingly global versities (AUPRICA) in 1994, of the war and of poverty in the face of El Salvadoran society. ernment statistics, only 5 per and technological markets is cru- the Latin American network of country. Francisco Gavidia Univer- cent of the population has a cial for poverty reduction and university cooperation (R.L.C.U.) The university is widely known sity (UFG) was founded in university-level degree. In El economic growth in emerging in 2003 and the National Com- as the “university of social change” 1981 and is located in Alame- Salvador, a person who does economies. And the government mission of accreditation of the and is constantly trying to im- da Roosevelt 3031, San Sal- not have a professional ca- of El Salvdor are all too familiar Ministry in 2008. prove education in general – in- vador. It was named after the reer cannot expect a good with this fact and have, as a re- As well as being known for its cluding that of teachers and humanist Salvadoran Francis- salary; many of those with sult, been increasing access to technological and innovative professors. In today’s education co Gavidia, who was a writer, degrees are hired for manu- third level education since the pursuits, UTEC is also closely sector, universities have to help educator, historian and jour- al jobs that pay a minimal 1980s. associated with polictics, regu- one another in order to grow and nalist. salary. Those who have no There are presently 23 uni- larly compliling opinion polls via move forward, and this can be In 1997 the UFG made a qual- secondary education usual- versities in El Salvador, of which The Salvadoran Opinion Re- seen in the cooperation programs itative leap in the use of tech- ly end up working for less some are secular while others search Center (CIOPS) which is with universities from the US nology, when it acquired Node than the minimum wage. have religious affiliations. Many based at the university. Approx- and Latin American countries. Computers with direct Internet The government is also of these universities were estab- imately 97 per cent of the uni- connection. A first for a univer- aware that in order for edu- lished in 1981, absorbing much versity’s investment in sity in El Salvador and was con- cation to lead to a future filled of the student population who, technology and research comes sidered a breakthrough, at the with opportunities, it is not because of the war, could not ac- from student fees, with the re- TODAY’S STUDENTS time, for higher education teach- enough to merely attend cess the National University. mainder drawn from research WILL BECOME ing in Central America. It con- FUTURE BOSSES school, it is essential that the Universidad Tecnologica de carried out for institutions such AND EMPLOYEES, tinues to serve as a valuable education received be of El Salvador (UTEC), was one of as the Ministry of Education SO THEIR technological resource to sup- quality – delivered by well- those established in 1981 and is Universidad Centro Ameri- NURTURING IS port the teaching-learning “MORE THAN trained, motivated teachers renowned for its technical and cana "José Simeón Cañas" (UCA) VITAL, AND process. 100,000 ADULTS and professors. The govern- innovative prowess. In fact the is another university which has UNIVERSITIES CAN UFG has been a landmark on HAVE LEARNED ment is very focused on im- motto which has identified the evolved over the years into an ALSO HELP LARGE the issue of quality, offering open TO READ AND proving teacher quality and philosophy of the university since outstanding institute for higher COMPANIES IN courses in the training of Inter- WRITE IN EL getting teachers and students its inception was “technology education. It was founded in Sep- THEIR SEARCH FOR nal Auditors of Quality under SALVADOR SINCE more engaged with one an- and science for the development tember 1965 at the request of a TECHNOLOGICAL ISO 9001:2000, which have 2010.” other. of a people”, and this ethos re- group of Roman Catholic fami- INNOVATION. trained hundreds of people from “We have implemented a mains very much alive to this lies who appealed to the Sal- different industrial, commercial SALVADOR SANCHEZ CEREN, program called ‘Dignity’, to day. vadoran government and to the and service sectors. The univer- El Salvador’s Minister of help with the ongoing train- Originally situated in the to create an al- sity has also ventured into the Education ing of teachers. We are form- Chahin building on Calle Ruben ternative to the University of El field of counseling and consult- ing a school of higher Dario in San Salvador, El Sal- Salvador. ing where Quality Management overall aim is to reduce the learning where teachers can vadorm the UTEC campus be- This has driven the universi- Large corporations are also Systems are concerned. illiteracy figure to four per aspire to doctoral degrees; gan with three faculties: ty to focus on undergraduate de- beginning to see the importance From the year 2006 to date, cent by 2014, and to make we want to improve the qual- Economics, Engineering and Ar- grees, research within the social of helping universities and their the academic offerings of the uni- education more widely avail- ity of education through the chitecture, and Science and Hu- sciences, popular presentation development. Today’s students versity have been updated and able. “More than 100,000 increased knowledge of our manities. The first rector of the of research results and local peer- will become those corporations’ have diversified into specialist adults have learned to read teachers,” Minister Ceren ex- university was the lawyer Juan reviewed journals. In the 1970s future bosses and employees, so technical areas of expertise, and write in El Salvador since plains. José Olives Peñaterom, but the and 1980s during the Civil War their nurturing is vital, and uni- which distinguish the institution 2010 to the present day,” said School facilities are an- university has been under the in El Salvador, UCA was known versities can also help large com- from other national and region- Minister Sanchez Ceren. other cause for concern: helm of Dr. José Mauricio Lou- as the home of several impor- panies in their search for al higher education institutes. The government has made books and materials, when cel since 1992. tant Jesuit scholars and intellec- technological innovation. In September 2007, the Uni- reforms to the educational present, are often of poor Five years after the university tuals, including Jon Sobrino, Technology features promi- versity redesigned its Institu- system with programs such quality and dated. Private was established it was reduced Ignacio Ellacuría, Ignacio Martín- nently in El Salvador´s econo- tional Strategic Plan 2007-2012, as the Scholar Package, schools tend to be better to rubble when a major earth- Baró, and Segundo Montes. They my and the Universidad which contains new goals and through which pupils receive equipped, but most are lo- quake destroyed much of the were outspoken against the abus- Francisco Gavidia, whose mot- targets that respond to changes food and clothing as an in- cated in urban areas. Access capital in 1986, including the es of the Salvadoran military and to is technology, humanism and and requirements of national and centive to attend school. to laboratories, computers Chahín building. Not one to be government, and carried out re- quality, is another private insti- regional environment. The government has said and libraries follow the same overwhelmed by a natural dis- it is committed to investing pattern – the likelihood of aster, UTEC built its very own 5.5 per cent of the GDP in access increases with prox- university-owned Simón Bolí- education; $145 million is imity to a city and for those var building the very same year. earmarked for infrastructure, attending private schools. A year later, UTEC built a sec- Lower oil prices and food and scholarisation pack- However, progress is be- ond building, the Francisco ages, and programs to im- ing made. Truancy and drop- Morazán. prove the quality of teaching. out rates have decreased Over the years, UTEC has be- higher living standards El Salvador has already ini- since 2005, and the majority come renowned for its advances tiated major reforms of the of today’s Salvadorans have and specialisation in technology, secondary education system, a far greater understanding innovation and research. It has ALBA Petroleos is changing the petroleum industry in El Salvador by bringing which are designed to both of the value of eduaction than accumulated many accredita- fairer oil prices and social benefits increase access and improve their predecessors. tions including the Association In 2006, 20 municipal mayors In May, the company opened belonging to the incumbent its newly built storage plant ca- left-wing Farabundo Marti Na- pable of storing 350,000 bar- tional Liberation Front rels of fuel in Acajutla. It is also (FMLN) party came together is preparing its imminent en- to form the Inter-Municipal try into the Salvadoran propane Association of Energy for El gas market. Salvador (ENEPASA) and Dr. Rodriguez says, “ALBA signed an agreement with PDV Petroleos’ power plant was de- Caribe, a subsidiary of signed to the highest quality ’s state-owned oil standards. Venezuelans, with company PDVSA. their extensive experience in The new company – ALBA the field, ensured that this is Petroleos de El Salvador – is one of the best plants in Latin the first time the Venezue- America, complying with all lan government has formed international standards and a joint venture with repre- safety precautions, including sentatives of local gov- DR. LUZ ESTRELLA ISO 14000 standards, which ernments rather than RODRIGUEZ, address various aspects of en- with a national govern- VP of ALBA Petroleos vironmental management.” ment or private enter- and Mayor of Apopa “Of the $115-million invest- prise. From its ed in the plant, 3% went di- inception, the project rectly to the neediest of has been designed to foster El 2007, we have generated high communities,” she adds. “Our Salvador’s development not on- expectations because our goal company has a social purpose. ly politically through regional was to establish a fairer price for We put $3.6 million directly in- alliances, but also economi- oil for Salvadorans by reveal- to street, water and energy pro- cally, culturally and socially. ing the full market chain from jects around the plant.” The entry of ALBA Petroleos beginning to end,” says Dr. Luz ALBA Petroleos has a 100% into the market has been seen Estrella Rodriguez, vice presi- Salvadoran workforce that ben- as a first step toward “de-pri- dent of ALBA Petroleos and efits from comprehensive train- vatizing” oil imports, as the Mayor of Apopa. “In establish- ing schemes. It is also behind commercialization of import- ing a fair price for oil, the com- various agricultural projects ed oil used to be firmly in the petition had to match our prices helping rural communities, as hands of private multinationals. and our transparency regarding well as new schools and health “Since our arrival in December tax contributions to the state.” clinics.

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Distributed by USA TODAY EL SALVADOR Monday, October 24, 2011 5 Minister for Tourism, Jose Napoleon Duarte Duran discusses his country’s potential as a holiday destination

Tourism contributes to about tourists and so on. Thirdly, we noes, lakes, forests, the Mayan recovered last year with home – how important is this 7 per cent towards the GDP are opening a consultation world, archeology, museums, tourism increasing by 8.3 per to the economy? and employs 6 per cent of the process with the private sec- historic sites – the list goes on. cent and we hope that this The Salvadoran economy re- workforce in El Salvador, but tor to assess the possibility of The all-inclusive concept is year we can maintain above ceives remittances of about there is still potential to grow. public-private partnership ini- geared towards time in the average growth and increase $4 billion annually from Sal- What are your plans to bring tiatives – again in a bid to ex- sense that one can be at a vol- by another 4 per cent – but vadorans living abroad and foreign investment to the pand the tourism sector. cano in the morning and lying that is not without its chal- obviously this has important tourism sector? on a beach in the afternoon. lenges. consequences. The average First of all, we are modifying What campaigns are you pro- Everything is accessible. We family remittance is $250 to the Law on Tourism in the Re- moting to attract tourists? are trying to capitalise on this How important is health and $300. public of El Salvador in order We have launched a campaign competitive advantage. medical tourism to El Sal- to maintain attractive tax in- called All-Inclusive El Salvador vador? How would you rate present centives for foreign and do- as part of our interna- Looking ahead, what are the In El Salvador the health relations between the U.S. mestic investors. Secondly, we tional strategy growth forecasts for 2012? tourism sector is still in its in- and El Salvador? aim to introduce public in- based on our Two years ago we had fancy but growing. Plastic The relationship currently vestment in the tourism sec- country´s at- a lot of reserva- surgery, for example, is an at- with the U.S. and El Salvador tor. For example, MITUR tractions…. tions about the tractive option for tourists is excellent. Not so long ago the (Ministry of Tourism) has in- our beaches, growth of and the country has plenty president of El Salvador invit- vested nearly $15 million in the wel- tourism as we of good surgeons. ed U.S. president Barack Oba- various aspects of the tourism coming were immersed ma here, and they discussed sector in the last two years…. weather, in the middle of About 18 per cent of the safety issues as well as the pro- we are developing an inter- moun- a crisis, but that country´s GDP is generated vision of special funds to com- pretive museum, adding park- tains, is now chang- by Salvadorans living in the bat drug trafficking. It was a ing lots, creating signs for volca- ing. We U.S. and sending money very successful meeting. An undiscovered world awaits

The unspoilt nature of El Salvador represents an opportunity for its tourism Sports aside, the government industry... and for holidaymakers is well aware that in order to keep the economy moving for- The role tourism plays in As part of this international ward it must attract foreign di- emerging economies has been campaign, authorities in El Sal- rect investment. Consequently, well documented over the vador invested in a promo- it has modified Article 36 of the years. From job creation to sig- tional campaign in London in Tourism Law: fiscal incentives nificant monetary gains, the which 20 taxis were decorat- have been maintained, while tourism sector ranks in the top ed with images of the Ila- the minimum capital needed to three categories for econom- matepec and Izalco Volcanoes attract SME’s has been reduced. ic development in most emerg- as well as other nature and ad- As tourism in El Salvador ing economies. venture destinations within the continues to grow - with 40 per In El Salvador tourism is al- country… showing the diver- cent travelling there for the sun ready proving that it can be a sity of this beautiful land. and beaches, 38 per cent for the force to be reckoned with, but Surfing is another area the colonial structures and history, it is not something that hap- government are heavily pro- and 22 per cent for the moun- pens overnight or without ef- moting as increasing numbers tains and volcanoes – the use fort – so sustained, aggressive of surfers visit El Zonte, Sun- of the U.S. dollar as Salvadoran promotional campaigns are a zal and La Libertad, prime currency and direct flights of 4- mandatory prerequisite for spots that are not yet over- 6 hours from most cities in the success. crowded. United States is a definite bonus. CORSATUR and the Min- El Salvador is also hosting Currently, tourists to El Sal- istry of Tourism are working the ISA World Masters Surf- vador can be classified into four very hard to promote the coun- ing Championship between groups: Central Americans; try using the slogan “El Sal- October 16-23 this year. “I’m North Americans; Salvadorans vador... Impressive.” The aim thrilled about the upcoming living abroad (primarily in the is to attract tourists from dif- ISA World Championship,” United States); and Europeans ferent countries including the said ISA President Fernando and South Americans. Eurozone. José Napoleón Aguerre. “This is the most The task of promoting Duarte Duran, the Minister of amazing competition for any tourism has just begun, and Mr Tourism for El Salvador, master surfer in the world. Duarte concludes, “One of our “ONE OF OUR GOALS IS THAT THE COUNTRY ACHIEVE presided over an innovative in- Combine this with such an goals is that the country achieve WORLDWIDE RECOGNITION AS A TRAVEL DESTINATION ternational marketing cam- epic wave like the Punta Ro- worldwide recognition as a BECAUSE THERE IS NO DOUBT THAT WE ARE AN paign in 2009, which is ca, and you’ll get is one of the travel destination because there UNDISCOVERED DESTINATION.” expected to draw two million greatest surfing displays you is no doubt that we are an visitors to the country by 2014. can imagine.” undiscovered destination.”

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6 Monday, October 24, 2011 EL SALVADOR Distributed by USA TODAY Creativity conquers new markets

A dynamic financial and pro- business environment has attracted greater investment, entrepreneurial development and increased import-export activity, particularly with the U.S.

Over the past 10 years, El Sal- ports reached $4.471 billion, own brand products, Arro- vador has promoted an ag- representing an increase of cera distribute many other gressive trade liberalization 17.8% over 2009. Imports al- barnds too. “We are pas- policy that has led to the sign- so rose 17.8% in 2010, reach- sionate about delivering ing of free trade agreements ing $8.548 billion. The good quality food to the Lati- with eight countries (the garment industry is the coun- no market,” said company United States, Central Amer- try’s number one exporter, president Guillermo Novoa. ica, Chile, Mexico, Panama, and last year garment exports Colombia, Dominican Re- increased by $342 million to SIGMAQ public, and Taiwan), open- $1.745 billion. Other top ex- Another example of Sal- ing access to a potential ports in 2010 include agro- vadorans’ market creativity market of 1.1 billion people, industrial products ($637 is at packaging multination- with more agreements with million), food and beverages al SigmaQ, which is the re- Canada, , Peru and the ($333 million), electrical and gional packaging leader EU on the table. mechanical products ($260 thanks to its use of technol- The legal framework in El million), and textiles ($198 ogy, innovative designs and Salvador ensures equal treat- million). environmentally friendly ment of national and inter- The U.S. is El Salvador’s products. It serves 2,800 national investors. It also number one investor and clients in more than 100 opens up access to local fi- leading trade partner. Bilat- countries with items that in- nancing and offers investors eral relations were boosted clude folding cartons and the freedom to transfer funds when the U.S.-Central Amer- luxury, corrugated and flex- and profits abroad. Further- ica-Dominican Republic free ible packaging, among oth- more, the adoption of the trade agreement (CAFTA- ers. From the design of the U.S. dollar as legal tender in DR) came into effect in 2006. package to production tech- 2001 has cut out currency U.S. goods exports to El Sal- nology, material selection risks to the benefit of foreign vador in 2010 reached $2.4 and legal guidance, SigmaQ trade, and the country offers billion, up 20.8% ($421 mil- has become a global front- some of the most attractive lion) from 2009. Meanwhile runner in the industry. “Our inflation and interest rates in some 48% of El Salvador’s ex- focus is to help position our the region. ports headed to the U.S. last clients and this leads to cre- Promoting business contacts year, with a value of $2.2 bil- ative designs. SigmaQ has among international buyers lion in 2010, up 21.5% ($392 over 120 packaging design- and exporters, the Exporters million) from 2009. ers. We put a lot of attention Corporation of El Salvador “We can say that our ex- to this aspect, which leads (COEXPORT) is a private non- ports have grown, but this us to be more creative,” says profit organization that offers does not mean we should re- company CEO Henry Yarhi. information, support, training duce our efforts to expand and technical assistance to the or we can rest on our laurels,” ALAS DORADAS nation’s exporters. It also pro- says Mr. Bolaños. “In fact our Alas Doradas is a company vides an advisory service to the exports have not grown, devoted to producing and government on export-relat- rather they have recovered.” selling pre and post-con- ed issues and submits propos- sumer recycled paper, thus als designed to enhance the ARROCERA promoting a clean environ- international competitiveness SAN FRANCISCO ment. The company has de- of Salvadoran exports. There are more than two veloped a boutique paper President of COEXPORT million Salvadorans living in product line that uses 100 Francisco Bolaños states that the United States, with a per cent recycled paper, veg- many important interna- huge hankering for good old- etable-based inks and or- tional business partnerships fashioned home produce. To ganic materials in its ranges have been forged by its mem- meet this demand, Arrocera of school and office bers thanks in large part to created All Foods in 2001 to notepads, writing paper, nap- the hard working people of fill this ethnic food gap. Ar- kins and kitchen rolls. As El Salvador. “They represent rocera have developed a vast part of its social responsi- our [nation’s] wealth,” he says. portfolio of "Back Home bility, Alas Doradas has in- “Our exporters are winners, Products" for the Latin stalled a wastewater they have fought to overcome American market in the U.S treatment plant to treat the economic crisis and oth- and today the company every drop of water used in er vicissitudes, thus becom- brings almost 300 Latino the production of its prod- ing the inspiration of many food products, including the ucts. “At Alas Doradas, we new companies that now fol- prestigious brand leader make every effort to obtain low suit. This is why each ex- Doña Lisa, to consumers in the best quality in raw ma- porter – big or small – is so the U.S and Canada. Rice and terials for our products. Our important and deserves our beans, pickled vegetables team is focused on con- respect, admiration and sup- and conserves, tropical tracting the best suppliers port. The initiative and cre- canned soups, atoles and within the market, to ensure ativity of Salvadorans have powder refreshments, and compliance with worldwide capitalized on opportunities refried beans are just a few accepted quality standards,” in various global markets.” of the company´s stalwarts. said Guy Wyld, general man- Last year, Salvadoran ex- As well as producing their ager of Alas Doradas.

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