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El Salvador - Completion and learning review for the period FY2010-14 : IEG review (English)

El Salvador’s growth has lagged its peers in Central America for the past decade. The economic context for this CPS was one of low growth with low and stable inflation. The political background was difficult, with the first center-left government in El Salvador since the end of the civil war in 1991 running the country, facing a fragmented opposition, and having to deal with tensions within the ruling party. The main longer term challenges were to increase the growth rate, as slow growth has constrained poverty reduction, increase domestic savings and investment, and reduce violence which has imposed a high social and economic cost. At the start of the CPS the country was suffering the consequences of the global economic crisis, to which the government responded with an anti-crisis plan. The WBG program set objectives, and outcomes, consistent with the scope of the government’s crisis response program, and each strategic area of intervention (macro/institutional, delivery of social services, increase economic opportunities) was backed by WBG interventions. The program was originally designed for the FY10-FY12 period, and extended to 2014 in the progress report, to coincide with the administration’s term. The program was focused and selective, with interventions balanced across the three strategic areas, and consistent with a well distributed set of objectives across the areas. Therefore the resources were concentrated for maximum impact on strengthening fundamentals by addressing macro and institutional vulnerabilities, strengthening delivery of social services, and increasing economic opportunities. It was aligned with the twin WBG goals on poverty and shared prosperity. Social inclusion of vulnerable groups was supported by DPLs and investment lending, and about two thirds of program resources were devoted to social protection, education, and health. Thus the program was focused enough for resources to have maximum impact on the twin goals. Poverty and shared prosperity issues were reflected in the results framework and measured with indicators, although some of them failed to reflect the objectives appropriately. The CPS was also aligned with government objectives, and focused on areas with initial commitment at various government levels, which was essential during negotiations with congress about WBG interventions. IEG will like to add that although the progress report was expected to be a significant exercise, it appears to have been a missed opportunity to attempt to modify the program and strengthen key interventions. As a result implementation progressed at an extremely low pace during the second half of the program. Progress reports (PLRs) in future should not miss the opportunity for a substantive reflection on what needs to be modified in the remainder of the program, and WBG teams should use the opportunity to revise approaches to implementation on the ground. The CLR draws no lessons from IFC’s lack of involvement beyond the financial sector, despite ambitious plans for interventions in infrastructure, electricity, and others. IFC needs to go beyond identifying issues and explore the investments and interventions in considerable detail, specifying conditions for success and identifying barriers to choice.


  • Document Date


  • Document Type

    CAS Completion Report Review

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  • Country

    El Salvador,

  • Region

    Latin America & Caribbean,

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  • Doc Name

    El Salvador - Completion and learning review for the period FY2010-14 : IEG review

  • Keywords

    access to information law;economic and sector work;access to public information;access to basic health service;access to public health service;legal and regulatory framework;quality of health services;tax and customs administration;social and economic development;Micro and SME Finance;Analytic and Advisory Activities;Micro and Small Enterprises;results framework;Science and Technology;public sector procurement;public sector capacity;disaster risk management;tax administration system;adverse macroeconomic environment;increasing tax revenue;division of labor;promotion of health;international good practice;labor market need;social protection system;global economic crisis;civil society engagement;institutional vulnerability;health care service;short term issue;availability of credit;emergency response plan;education and health;climate change adaptation;excise tax rates;long term development;poor urban settlement;consumption of electricity;medium-term budget framework;provision of education;analytical and advisory;technical assistance loan;debt sustainability analysis;global financial crisis;secondary technical education;marginal income tax;cost of subsidy;opportunities for development;judicial service;electricity subsidies;expenditure policy;trust funded;financial statement;Financial Sector;Tax Reform;economic recovery;fiscal information;fiscal planning;Municipalities;donor coordination;tax collection;transport subsidy;poor household;public hospital;hospital discharge;vulnerable population;drug supply;intermediate indicator;local capacity;fiscal space;political opposition;income support;development partner;consensus building;program objectives;outcome indicator;local jurisdiction;expenditure reform;targeted outcomes;Indicator Target;review period;causal chain;enrollment rate;strategic areas;Tax Evasion;institutional environment;promoting synergies;inadequate capacity;registration system;complementary financing;public finance;social progress;disbursement ratio;investment operation;investment lending;fiscal data;government objective;program documents;vulnerable group;causal link;government ownership;ruling party;power supply;tax base;domestic saving;stable inflation;identifying barrier;net disbursements;Advisory services;tax loopholes;regulatory target;practical training;risk indicator;insurance sector;public lighting;satisfactory progress;political climate;procurement transaction;fiscal transparency;local counterpart;fiscal management;commercial banking;international petroleum;investment portfolio;internal revenue;family communities;potential conflicts;investment guarantee;customs agency;eligible source;tax measure;contingency plan;effective dialogue;stakeholder consultation;public support;land administration;Rural Sector;exposure data;natural disaster;seismic hazard;Disaster Management;residential consumer;absorptive capacity;citizen security;job skill;government transfer;targeted population;social program;pregnant woman;electrical engineering;productive sector;strategic focus;government commitment;low-income group;european commission;public satisfaction;reform objectives;regional initiative;fiscal policy;Fiscal policies;healthcare services;system operator;legal standard;bilateral agency;seismic risk;metropolitan area;national drug;supply management;urban poor;capital expenditure;specific taxes;investment policy;tax incentive;oil price;important component;tax system;PPP Law;standard indicator;health reform;regular meetings;nutrition program;private consumption;social aspect;emerging country;Tax Exemption;negative effect;Property tax;liquid propane;multiyear perspective;survey results;highway network;judicial system;



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El Salvador - Completion and learning review for the period FY2010-14 : IEG review (English). Washington, D.C. : World Bank Group.