Dollarization and After
On 30 November 2000, the Asamblea Legislativa approved the ARENA government's plan to dollarize the domestic economy - El Salvador thus became the third Latin American nation, along with Ecuador and Panama, to elect to use the US dollar in all aspects of its domestic economy. The main thrust of dollarization was to create an attractive economic environment for the foreign investment El Salvador desperately wants to attract, and a massive publicity campaign was launched across the country using the motto "Good for you, good for the country". For many Salvadoreans, however, the prospect of welcoming the "Yanqui" dollar reopens still healing wounds, recalling the massive amount of US funding that flooded into the country during the 1980s to prop up the cruel right-wing government during the civil war. As veteran FMLN leader Schafik Handal put it: "After this, I wouldn't be surprised if they passed a law so that every 'senor' must now be called 'mister' ". At about the same time, the government also announced its elaborately titled Plan de Nacion , a public-private investment in public infrastructure totalling over 900 million dollars. Most of this money came from the sale of the state telecommunications company Antel, and will be devoted to building a new road network and developing Cutuco into the largest Pacific port in Central America. El Salvador was again brought to the world's attention when a devastating earthquake ripped through the country on the morning of 13 January 2001. Measuring 7.6 on the Richter scale, the earthquake killed over 1000 people and left more than 5000 injured; some 145,000 homes were destroyed and a further 120,000 were badly damaged. Two further earthquakes in the weeks that followed killed another 250 people and left tens of thousands more homeless. Hardest hit were the coastal areas, although most of the country was affected in some way. For a country already struggling, these earthquakes represented a monumental disaster, while it's estimated that the cost of repairing the widespread damage and destruction will run into billions of dollars. The next presidential elections are scheduled for 2004, by which time El Salvador will have a fully operating dollar economy. In the meantime, the issues of poverty, unemployment and civil violence will remain at the forefront of Salvadorean politics and society. National unity will be sorely tested over the coming years as El Salvador is forced to recalculate the economic cost of natural disaster.
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