Guazapa is a municipality in the San Salvador department of El Salvador .
128-516: 13°53′N 89°10′W / 13.883°N 89.167°W / 13.883; -89.167 An area is known for fostering—and harboring—FMLN combatants during the 1980s This El Salvador location article is a stub . You can help Misplaced Pages by expanding it . El Salvador El Salvador , officially the Republic of El Salvador , is a country in Central America . It
256-533: A Reducing Inequality Index which measured social spending, tax and workers' rights to show which countries were best at closing the gap between the rich and the poor. The 2022 World Inequality Report , a four-year research project organized by the economists Lucas Chancel , Thomas Piketty , Emmanuel Saez , and Gabriel Zucman , shows that "the world is marked by a very high level of income inequality and an extreme level of wealth inequality" and that these inequalities "seem to be about as great today as they were at
384-597: A talud - tablero style of architecture that is associated with Nahua culture and corresponds with their migration history from Anahuac. In eastern El Salvador, the Lenca site of Quelepa is highlighted as a major pre-Columbian cultural center and demonstrates links to the Mayan site of Copan in western Honduras as well as the previously mentioned sites in Chalchuapa, and Cara Sucia in western El Salvador. An investigation of
512-449: A "substantial head start". A 2017 report by the IPS said that three individuals, Jeff Bezos , Bill Gates and Warren Buffett , own as much wealth as the bottom half of the population, or 160 million people, and that the growing disparity between the wealthy and the poor has created a "moral crisis", noting that "we have not witnessed such extreme levels of concentrated wealth and power since
640-529: A Maya-Lenca crown princess, Antu Silan Ulap I, organized resistance to the conquistadors. The commonwealth of the Lenca was alarmed by de Moscoso's invasion, and Antu Silan travelled from village to village, uniting all the Lenca towns in present-day El Salvador and Honduras against the Spaniards. Through surprise attacks and overwhelming numbers, they were able to drive the Spanish out of San Miguel and destroy
768-499: A few families. Throughout the last half of the 19th century, a succession of presidents from the ranks of the Salvadoran oligarchy, nominally both conservative and liberal, generally agreed on the promotion of coffee as the predominant cash crop , the development of infrastructure (railroads and port facilities) primarily in support of the coffee trade, the elimination of communal landholdings to facilitate further coffee production,
896-572: A low-income group, within a high-income group and between them, within an age group and between inter-generational groups, within a gender group and between them etc, either from one or from multiple nations). Income inequality metrics are used for measuring income inequality, the Gini coefficient being a widely used one. Another type of measurement is the Inequality-adjusted Human Development Index , which
1024-511: A measurable effect on the rising inequality in the United States . He attributes this trend to increased trade with poor countries and the fragmentation of the means of production , resulting in low skilled jobs becoming more tradeable. Anthropologist Jason Hickel contends that globalization and " structural adjustment " set off the " race to the bottom ", a significant driver of surging global inequality. Another driver Hickel mentions
1152-584: A race that has experienced discrimination are born into a disadvantaged family from the beginning and therefore have less resources and opportunities at their disposal. The universal lack of education, technical and cognitive skills, and inheritable wealth within a particular race is often passed down between generations, compounding in effect to make escaping these racialized cycles of poverty increasingly difficult. Additionally, ethnic groups that experience significant disparities are often also minorities, at least in representation though often in number as well, in
1280-533: A result of the Napoleonic Wars , with the resulting inability to control its colonies effectively. In November 1811 Salvadoran priest José Matías Delgado rang the bells of Iglesia La Merced in San Salvador, calling for insurrection and launching the 1811 Independence Movement . This insurrection was suppressed, and many of its leaders were arrested and served sentences in jail. Another insurrection
1408-586: A result of the change in tax regime. Additionally, steeper tax progressivity applied to social spending can result in a more equal distribution of income across the board. Tax credits such as the Earned Income Tax Credit in the US can also decrease income inequality. The difference between the Gini index for an income distribution before taxation and the Gini index after taxation is an indicator for
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#17327731324961536-611: A shadowy figure, a rich anti-communist banker called Rodolfo Duke, and later installed the vice-president Martínez as president. The revolt was probably caused by the army's discontent at not having been paid by President Araujo for some months. Araujo left the National Palace and unsuccessfully tried to organize forces to defeat the revolt. The U.S. Minister in El Salvador met with the Directorate and later recognized
1664-623: A union named the Federal Republic of Central America . In early 1822, the authorities of the newly independent Central American provinces, meeting in Guatemala City, voted to join the newly constituted First Mexican Empire under Agustín de Iturbide . El Salvador resisted, insisting on autonomy for the Central American countries. A Mexican military detachment marched to San Salvador and suppressed dissent, but with
1792-588: A vest-like armour made of three inch cotton which arrows could not penetrate, and long spears. Both armies suffered many casualties, with a wounded Alvarado retreating and losing a lot of his men, especially among the Mexican Indian auxiliaries. Once his army had regrouped, Alvarado decided to head to the Cuzcatlan capital and again faced armed Cuzcatlec. Wounded, unable to fight and hiding in the cliffs, Alvarado sent his Spanish men on their horses to approach
1920-632: A volcanic eruption, after which it never regained its former prominence. Another major Pre-Columbian settlement is Cara Sucia in the far west of the country, which began as a small settlement around 800 BC at the beginning of the Middle Preclassic, during the Late Classic (600-900 AD), Cara Sucia emerged as a major urban settlement, before being abruptly destroyed during the 10th century. The Pipil people , Nahua speaking groups migrated from Anahuac beginning around 800 AD and occupied
2048-485: Is a near-universal belief that complete economic equality (Gini of zero) would be undesirable and unachieveable. In 1820, the ratio between the income of the top and bottom 20 percent of the world's population was three to one. By 1991, it was eighty-six to one. A 2011 study titled "Divided we Stand: Why Inequality Keeps Rising" by the Organisation for Economic Co-operation and Development (OECD) sought to explain
2176-482: Is a statistic composite index that takes inequality into account. Important concepts of equality include equity , equality of outcome , and equality of opportunity . Historically , there has been a long-run trend towards greater economic inequality over time. The exceptions to this during the modern era are the declines in economic inequality during the two World Wars and amid the creation of modern welfare states after World War II. Whereas globalization has reduced
2304-479: Is accompanied by systematically unequal access to education, career opportunities, and poverty relief. This region of the world, apart from urbanizing areas like Brazil and Costa Rica, continues to be understudied and often the racial disparity is denied by Latin Americans who consider themselves to be living in post-racial and post-colonial societies far removed from intense social and economic stratification despite
2432-423: Is also a globally recognized disparity in the wealth, income, and economic welfare of people of different races. In many nations, data exists to suggest that members of certain racial demographics experience lower wages, fewer opportunities for career and educational advancement, and intergenerational wealth gaps . Studies have uncovered the emergence of what is called "ethnic capital", by which people belonging to
2560-444: Is associated with substantial levels of social exclusion, including high levels of income inequality, high relative and absolute poverty rates, poor and unequal educational outcomes, poor health outcomes, and high rates of crime and incarceration. At the same time, the available evidence provides little support for the view that U.S.-style labor market flexibility dramatically improves labor-market outcomes. Despite popular prejudices to
2688-418: Is at the center stage of economic policy debate across the globe, as government tax and spending policies have significant effects on income distribution. In advanced economies, taxes and transfers decrease income inequality by one-third, with most of this being achieved via public social spending (such as pensions and family benefits). While the "optimum" amount of economic inequality is widely debated, there
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#17327731324962816-698: Is bordered on the northeast by Honduras , on the northwest by Guatemala , and on the south by the Pacific Ocean . El Salvador's capital and largest city is San Salvador . The country's population in 2024 was estimated to be 6 million according to a government census. Among the Mesoamerican nations that historically controlled the region are the Mayans , and then the Cuzcatlecs . Archaeological monuments also suggest an early Olmec presence around
2944-523: Is considered medium; countries including Vietnam, Mexico, Poland, the United States, Argentina, Russia and Uruguay can be found in this category. A Gini index value lower than 30% is considered low; countries including Austria, Germany, Denmark, Norway, Slovenia, Sweden, and Ukraine can be found in this category. In the low-income inequality category (below 30%) is a wide representation of countries previously being part of Soviet Union or its satellites, like Slovakia, Czech Republic, Ukraine and Hungary. In 2012
3072-823: Is due to women not taking jobs due to marriage or pregnancy. A U.S. Census's report stated that in US once other factors are accounted for there is still a difference in earnings between women and men. A study done on three post-soviet countries Armenia , Georgia , and Azerbaijan reveals that gender is one of the driving forces of income inequality, and being female has a significant negative effect on income when other factors are held equal. The results show more than 50% gender pay gap in all three countries. These findings are because usually employers tend to avoid hiring women because of possible maternity leave. Other reason for this can be occupational segregation , which implies that women are usually accumulated in lower-paid positions and sectors, such as social services and education. There
3200-475: Is either stalling or erasing itself in the newest generation of blacks that seek education and improved transgenerational wealth. The economic status of one's parents continues to define and predict the financial futures of African and minority ethnic groups. Asian regions and countries such as China, the Middle East, and Central Asia have been vastly understudied in terms of racial disparity, but even here
3328-644: Is imperfect; information unevenly distributed; opportunities to acquire education and skills unequal; market failure results. Many such imperfect conditions exist in virtually every market. According to Joseph Stiglitz this means that there is an enormous potential role for government to correct such market failures. In the United States, real wages are flat over the past 40 years for occupations across income and education levels, e.g., auto mechanics, cashiers, doctors, and software engineers. However, stock ownership favors higher income and education levels, thereby resulting in disparate investment income. Another cause
3456-473: Is measured by Gini coefficient (expressed in percent %) that is a number between 0 and 1. Here 0 expresses perfect equality, meaning that everyone has the same income, whereas 1 represents perfect inequality, meaning that one person has all the income and others have none. A Gini index value above 50% is considered high; countries including Brazil, Colombia, South Africa, Botswana, and Honduras can be found in this category. A Gini index value of 30% or above
3584-510: Is measured by high rates of invention, there is a negative correlation between it and inequality. Countries with high invention rates – "as measured by patent applications filed under the Patent Cooperation Treaty" – exhibit lower inequality than those with less. In one country, the United States, "salaries of engineers and software developers rarely reach" above $ 390,000/year (the lower limit for
3712-463: Is now Salvadoran territory was made by the admiral Andrés Niño , who led an expedition to Central America. He disembarked in the Gulf of Fonseca on 31 May 1522, at Meanguera island , naming it Petronila, and then traversed to Jiquilisco Bay on the mouth of Lempa River . The first indigenous people to have contact with the Spanish were the Lenca of eastern El Salvador. In 1524, after participating in
3840-417: Is similarly limited by factors like a lack of public transportation, child care, and communication and language barriers which result from the spatial and economic isolation of minority communities from redlining. Educational, income, and wealth gaps that result from this isolation mean that minority groups' limited access to the job market may force them to remain in fields that have a higher risk of exposure to
3968-745: Is that a lack of education leads directly to lower incomes, and thus lower aggregate saving and investment. Conversely, quality education raises incomes and promotes growth because it helps to unleash the productive potential of the poor. Access to education was in turn influenced by land inequalities. In the less industrialized parts of 19th century Europe, for example, landowners still held more political power than industrialists. These landowners did not benefit from educating their workers as much as industrialists did, since "educated workers have more incentives to migrate to urban, industrial areas than their less educated counterparts." Consequently, lower incentives to promote education in regions where land inequality
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4096-482: Is the debt system which advanced the need for structural adjustment in the first place. In many countries, there is a gender pay gap in favor of males in the labor market . Several factors other than discrimination contribute to this gap. On average, women are more likely than men to consider factors other than pay when looking for work and may be less willing to travel or relocate. Thomas Sowell , in his book Knowledge and Decisions , claims that this difference
4224-406: Is the rate at which income is taxed coupled with the progressivity of the tax system. A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. In a progressive tax system, the level of the top tax rate will often have a direct impact on the level of inequality within a society, either increasing it or decreasing it, provided that income does not change as
4352-462: The COVID-19 pandemic has increased economic inequality substantially; the wealthiest people across the globe were impacted the least by the pandemic and their fortunes recovered quickest, with billionaires seeing their wealth increase by $ 3.9 trillion, while at the same time the number of people living on less than $ 5.50 a day likely increased by 500 million. According to economist Joseph Stiglitz ,
4480-574: The Chapultepec Peace Accords . This negotiated settlement established a multiparty constitutional republic, which remains in place to this day. During the civil war and afterwards, large numbers of Salvadorans emigrated to the United States. From 1980 through 2008, nearly one million Salvadorans immigrated to the United States, such that by 2008, they were the sixth largest immigrant group in the US. El Salvador's economy has historically been dominated by agriculture, beginning with
4608-477: The Greater Republic of Central America , which dissolved in 1898. After the mid-19th century, the economy was based on coffee growing. As the world market for indigo withered away, the economy prospered or suffered as the world coffee price fluctuated. The enormous profits that coffee yielded as a monoculture export served as an impetus for the concentration of land into the hands of an oligarchy of just
4736-575: The Harvard Business School and Dan Ariely of the Department of Psychology at Duke University found this to be true in their research conducted in 2011. The actual wealth going to the top quintile in 2011 was around 84%, whereas the average amount of wealth that the general public estimated to go to the top quintile was around 58%. According to a 2020 study, global earnings inequality has decreased substantially since 1970. During
4864-599: The Preclassic Period and earlier. A notable archaeological site in western El Salvador is Chalchuapa , which was first settled around 1200 BC, and became a major urban settlement on the periphery of the Maya civilization during the Preclassic Period and was heavily involved in the trading of valuable items like ceramics, obsidian, cacao and hematite. The settlement was heavily damaged around 430 AD by
4992-623: The conquest of the Aztec Empire , Pedro de Alvarado , his brother Gonzalo, and their men crossed the Rio Paz southward into Cuzcatlec territory. Upon their arrival, Spaniards were disappointed to discover that the Pipil had little gold compared to what they had found in Guatemala or Mexico. The small amount of gold that was available had to be panned so that it could be obtained. Eventually,
5120-606: The election . He was sworn in as president on 31 May 2014. He was the first former guerrilla to become the president of El Salvador. In October 2017, an El Salvador court ruled that former president Funes and one of his sons had illegally enriched themselves. Funes had sought asylum in Nicaragua in 2016. In September 2018, former president Saca was sentenced to 10 years in prison after he pleaded guilty to diverting more than US$ 300 million in state funds to his own businesses and third parties. On 1 June 2019, Nayib Bukele became
5248-555: The glyptodont Glyptotherium , the llama Hemiauchenia , and the horse Equus conversidens . El Salvador has likely been occupied by humans since the Paleoindian period, based on fluted stone points found in western El Salvador. Archaeological knowledge of Pre-Columbian civilisation in El Salvador is poor, due to its high population density limiting excavation, as well as volcanic eruptions blanketing potential archaeological sites. This lack of knowledge particularly effects
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5376-537: The world population over the period 1990–2015. In 2015, the OECD reported in 2015 that income inequality is higher than it has ever been within OECD member nations and is at increased levels in many emerging economies. According to a June 2015 report by the International Monetary Fund (IMF): Widening income inequality is the defining challenge of our time. In advanced economies, the gap between
5504-482: The 2000s and 2010s, the share of earnings by the world's poorest half doubled. Two researchers claim that global income inequality is decreasing due to strong economic growth in developing countries. According to a January 2020 report by the United Nations Department of Economic and Social Affairs , economic inequality between states had declined, but intrastate inequality has increased for 70% of
5632-766: The Cuzcatlec to see if they would fear the horses, but they did not retreat, Alvarado recalls in his letters to Hernán Cortés . The Cuzcatlec attacked again, and on this occasion stole Spanish weaponry. Alvarado retreated and sent Mexican messengers to demand that the Cuzcatlec warriors return the stolen weapons and surrender to their opponent's king. The Cuzcatlec responded with the famous response, "If you want your weapons, come get them". As days passed, Alvarado, fearing an ambush, sent more Mexican messengers to negotiate, but these messengers never came back and were presumably executed. The Spanish efforts were firmly resisted by Pipil and their Mayan-speaking neighbours. They defeated
5760-523: The Gini index for income inequality for whole European Union was only 30.6%. Income distribution can differ from wealth distribution within each country. The wealth inequality is also measured in Gini index. There the higher Gini index signify greater inequality within the wealth distribution in country, 0 means total wealth equality and 1 represents situation, where everyone has no wealth, except an individual that has everything. For instance, countries like Denmark, Norway and Netherlands, all belonging to
5888-640: The OECD countries, has been driven mostly by increasing inequality in wages and salaries. Economist Thomas Piketty argues that widening economic disparity is an inevitable phenomenon of free market capitalism when the rate of return of capital (r) is greater than the rate of growth of the economy (g). According to an IMF report in 2016, after reviewing four decades of neoliberalism, it had warned that certain neoliberal policies including privatization, public spending cuts, and deregulation, have resulted in "increased inequality" and are stunting economic growth globally. In modern market economies , if competition
6016-583: The Salvadoran left had formed the Farabundo Martí National Liberation Front , or FMLN. By the end of the 1970s, government-contracted death squads were killing about 10 people each day. Meanwhile, the FMLN had 6,000 to 8,000 active guerrillas and hundreds of thousands of part-time militia, supporters, and sympathizers. The U.S. supported and financed the creation of a second junta to change the political environment and stop
6144-424: The Spaniards and what was left of their Tlaxcalan allies, forcing them to withdraw to Guatemala. After being wounded, Alvarado abandoned the war and appointed his brother, Gonzalo de Alvarado , to continue the task. Two subsequent expeditions (the first in 1525, followed by a smaller group in 1528) brought the Pipil under Spanish control, since the Pipil also were weakened by a regional epidemic of smallpox. In 1525,
6272-452: The Spaniards recognized the richness of the land's volcanic soil. Following this discovery, the Spanish crown began granting land based on the terms of the encomienda system. Pedro Alvarado led the first incursion to extend their dominion to the domain of Cuzcatlan in June 1524. When he arrived at the borders of the kingdom, he saw that civilians had been evacuated. Cuzcatlec warriors moved to
6400-541: The Spanish Crown. The most important internal factors were the desire of local elites to control the country's affairs free of involvement from Spanish authorities, and the long-standing Creole aspiration for independence. The main external factors motivating the independence movement were the success of the French and American revolutions in the 18th century, and the weakening of the Spanish Crown's military power as
6528-609: The Spanish taking control of the indigenous cacao crop in the 16th century, with production centred in Izalco , along with balsam from the ranges of La Libertad and Ahuachapán . This was followed by a boom in use of the indigo plant in the 19th century, mainly for its use as a dye. Thereafter the focus shifted to coffee , which by the early 20th century accounted for 90% of export earnings. El Salvador has since reduced its dependence on coffee and embarked on diversifying its economy by opening up trade and financial links and expanding
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#17327731324966656-553: The Spanish, which included the territory that would become El Salvador until its independence from Spain in 1821. It was forcibly incorporated into the First Mexican Empire , then seceded, joining the Federal Republic of Central America in 1823. When the federation dissolved in 1841, El Salvador became a sovereign state, then formed a short-lived union with Honduras and Nicaragua called the Greater Republic of Central America , which lasted from 1896 to 1898. From
6784-429: The US national wealth, while in 2019 it is just over 1.5 percent. Mexican-Americans, while suffering less debilitating socioeconomic factors than black Americans, experience deficiencies in the same areas when compared to whites and have not assimilated financially to the level of stability experienced by white Americans as a whole. These experiences are the effects of the measured disparity due to race in countries like
6912-621: The US, the UK, France, Spain, Australia, etc. In the countries of the Caribbean, Central America, and South America, many ethnicities continue to deal with the effects of European colonization, and in general nonwhites tend to be noticeably poorer than whites in this region. In many countries with significant populations of indigenous races and those of Afro-descent (such as Mexico, Colombia, Chile, etc.) income levels can be roughly half as high as those experiences by white demographics, and this inequity
7040-496: The US, where studies show that in comparison to whites, blacks suffer from drastically lower levels of upward mobility , higher levels of downward mobility, and poverty that is more easily transmitted to offspring as a result of the disadvantage stemming from the era of slavery and post-slavery racism that has been passed through racial generations to the present. These are lasting financial inequalities that apply in varying magnitudes to most non-white populations in nations such as
7168-516: The United Nations ending the 12-year civil war. This event, held at Chapultepec Castle in Mexico, was attended by U.N. dignitaries and other representatives of the international community. After signing the armistice, the president stood and shook hands with the newly ex-guerrilla commanders, an action which was widely admired. The so-called Chapultepec Peace Accords mandated reductions in
7296-464: The United States for example, African American populations are more likely to drop out of high school and college, are typically employed for fewer hours at lower wages, have lower than average intergenerational wealth, and are more likely to use welfare as young adults than their white counterparts. The racial wealth gap in the US has been maintained throughout history. In 1863, two years prior to emancipation from slavery, Black people owned 0.5 percent of
7424-503: The World Institute for Development Economics Research at United Nations University reported that the richest 1% of adults alone owned 40% of global assets in the year 2000. The three richest people in the world possess more financial assets than the lowest 48 nations combined. The combined wealth of the "10 million dollar millionaires" grew to nearly $ 41 trillion in 2008. Oxfam 's 2021 report on global inequality said that
7552-435: The basic utility of the wealth or income is the expenditure. People experience the inequality directly in consumption, rather than income or wealth. There are various reasons for economic inequality within societies, including both global market functions (such as trade, development, and regulation) as well as social factors (including gender, race, and education). Recent growth in overall income inequality, at least within
7680-695: The causes for this rising inequality by investigating economic inequality in OECD countries; it concluded that the following factors played a role: The study made the following conclusions about the level of economic inequality: A 2011 OECD study investigated economic inequality in Argentina , Brazil , China , India , Indonesia , Russia , and South Africa . It concluded that key sources of inequality in these countries include "a large, persistent informal sector , widespread regional divides (e.g., urban-rural ), gaps in access to education, and barriers to employment and career progression for women." A study by
7808-462: The central and western regions of El Salvador. The Nahua Pipil were the last indigenous people to arrive in El Salvador. They called their territory Kuskatan , a Nawat word meaning "The Place of Precious Jewels," back-formed into Classical Nahuatl Cōzcatlān , and as Cuzcatlán . It was the largest domain in Salvadoran territory up until European contact. The term Cuzcatleco is commonly used to identify someone of Salvadoran heritage, although
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#17327731324967936-476: The coastal city of Acajutla and waited for Alvarado and his forces. Alvarado approached, confident that the result would be similar to what occurred in Mexico and Guatemala. He thought he would easily deal with this new indigenous force since the Mexican allies on his side and the Pipil spoke a similar language. Alvarado described the Cuzcatlec soldiers as having shields decorated with colourful exotic feathers,
8064-623: The colonial period, San Salvador and San Miguel were part of the Captaincy General of Guatemala, also known as the Kingdom of Guatemala ( Spanish : Reino de Guatemala ), created in 1609 as an administrative division of New Spain . The Salvadoran territory was administered by the mayor of Sonsonate, with San Salvador being established as an intendencia in 1786. In 1811, a combination of internal and external factors motivated Central American elites to attempt to gain independence from
8192-492: The conquest of Cuzcatlán was completed and the city of San Salvador was established. The Spanish faced much resistance from the Pipil and were not able to reach eastern El Salvador, the area of the Lencas. In 1526 the Spanish founded the garrison town of San Miguel in northern Managuara—territory of the Lenca, headed by another explorer and conquistador, Luis de Moscoso Alvarado , nephew of Pedro Alvarado. Oral history holds that
8320-408: The contrary, the U.S. economy consistently affords a lower level of economic mobility than all the continental European countries for which data is available." More recently, the International Monetary Fund has published studies which found that the decline of unionization in many advanced economies and the establishment of neoliberal economics have fueled rising income inequality. Contrary to
8448-553: The country in 1979 to enter politics after working on projects in Venezuela as an engineer. On 15 October 1979, a coup d'état brought the Revolutionary Government Junta (JRG) to power. It nationalized many private companies and took over much privately owned land. The purpose of this new junta was to stop the revolutionary movement already underway in response to Duarte's stolen election. Nevertheless,
8576-510: The definite form "El Salvador", The Savior, again a reference to Jesus, rather than Salvador. The legislature reaffirmed the country's name as El Salvador with another law passed in 1958. During the Pleistocene El Salvador was inhabited by now extinct megafauna species, including the elephant-sized giant ground sloth Eremotherium , the rhinoceros-like Mixotoxodon , the gomphothere (elephant-relative) Cuvieronius ,
8704-466: The demand for unskilled labor while increasing the demand for skilled labor. Trade liberalization may shift economic inequality from a global to a domestic scale. When rich countries trade with poor countries, the low-skilled workers in the rich countries may see reduced wages as a result of the competition, while low-skilled workers in the poor countries may see increased wages. Trade economist Paul Krugman estimates that trade liberalisation has had
8832-655: The early 1990s brought major benefits in terms of improved social conditions, diversification of the export sector, and access to international financial markets at investment grade level. Crime remains a major problem for the investment climate. Early in the new millennium, El Salvador's government created the Ministerio de Medio Ambiente y Recursos Naturales — the Ministry of Environment and Natural Resources (MARN) — in response to climate change concerns. In March 2014, former FMLN guerrilla leader Cerén narrowly won
8960-501: The effects of Western colonization provide similar results to those found in other parts of the globe. Additionally, cultural and historical practices such as the caste system in India leave their marks as well. While the disparity is greatly improving in the case of India, there still exists social stratification between peoples of lighter and darker skin tones that cumulatively result in income and wealth inequality, manifesting in many of
9088-526: The effects of such taxation. An important factor in the creation of inequality is variation in individuals' access to education. Education, especially in an area where there is a high demand for workers, creates high wages for those with this education. However, increases in education first increase and then decrease growth as well as income inequality. As a result, those who are unable to afford an education, or choose not to pursue optional education, generally receive much lower wages. The justification for this
9216-497: The evidence to the contrary. African countries, too, continue to deal with the effects of the Trans-Atlantic Slave Trade , which set back economic development as a whole for blacks of African citizenship more than any other region. The degree to which colonizers stratified their holdings on the continent on the basis of race has had a direct correlation in the magnitude of disparity experienced by nonwhites in
9344-412: The expense of increasing inequality within countries. The United Nations Development Programme in 2014 asserted that greater investments in social security, jobs, and laws that protect vulnerable populations are necessary to prevent widening income inequality. There is a significant difference in the measured wealth distribution and the public's understanding of wealth distribution. Michael Norton of
9472-567: The fall of Iturbide on 19 March 1823, the army decamped back to Mexico. Shortly thereafter, the authorities of the provinces revoked the vote to join Mexico, deciding instead to form a federal union of the five remaining provinces (Chiapas permanently joined Mexico at this juncture) known as the Federal Republic of Central America . El Salvador declared its independence from the Federal Republic of Central America on 30 January 1841. El Salvador joined Honduras and Nicaragua in 1896 to form
9600-567: The first gilded age a century ago." In 2016, the world's billionaires increased their combined global wealth to a record $ 6 trillion. In 2017, they increased their collective wealth to 8.9 trillion. In 2018, U.S. income inequality reached the highest level ever recorded by the Census Bureau . The existing data and estimates suggest a large increase in international (and more generally inter-macroregional) components between 1820 and 1960. It might have slightly decreased since that time at
9728-596: The first millennium BC. In the beginning of the 16th century, the Spanish Empire conquered the Central American territory, incorporating it into the Viceroyalty of New Spain ruled from Mexico City . However the Viceroyalty of New Spain had little to no influence in the daily affairs of the isthmus, which was colonized in 1524. In 1609, the area was declared the Captaincy General of Guatemala by
9856-420: The garrison. For ten years the Lencas prevented the Spanish from building a permanent settlement. Then the Spanish returned with more soldiers, including about 2,000 forced conscripts from indigenous communities in Guatemala. They pursued the Lenca leaders further up into the mountains of Intibucá . Antu Silan Ulap eventually handed over control of the Lenca resistance to Lempira (also called Empira). Lempira
9984-601: The government of Martínez, which agreed to hold presidential elections. He resigned six months prior to running for re-election, winning back the presidency as the only candidate on the ballot. He ruled from 1935 to 1939, then from 1939 to 1943. He began a fourth term in 1944 but resigned in May after a general strike. Martínez had said he was going to respect the constitution, which stipulated he could not be re-elected, but he refused to keep his promise. Beginning in January 1932, there
10112-443: The inequality between nations, it has increased the inequality within the population in most nations. Income inequality between nations peaked in the 1970s, when world income was distributed bimodally into "rich" and "poor" countries. Since then, income levels across countries have been converging, with most people now living in middle-income countries . However, inequality within the population in most has risen significantly in
10240-405: The land was divided into the province of San Salvador, which means "Holy Savior"; a Spanish title for Jesus . From 1579 that also including the province of San Miguel (Saint Michael). San Salvador would become, throughout the colonial era, an alcaldía mayor (great mayor's office), intendancy, and finally a province with a provincial council, and the province of Izalcos (which would become be called
10368-426: The last 30 years, particularly among advanced countries . Research has generally linked economic inequality to political and social instability, including revolution , democratic breakdown and civil conflict . Research suggests that greater inequality hinders economic growth and macroeconomic stability, and that land and human capital inequality reduce growth more than inequality of income. Inequality
10496-432: The last category (below 30%, low-income inequality) also have very high Gini index in wealth distribution, ranging from 70% up to 90%. In economics , the consumption distribution or consumption inequality is an alternative to the income distribution or wealth distribution for judging economic inequality, comparing levels of consumption rather than income or wealth . This is an important measure of inequality as
10624-569: The late 19th to the mid-20th century, El Salvador endured chronic political and economic instability characterized by coups, revolts, and a succession of authoritarian rulers. Persistent socioeconomic inequality and civil unrest culminated in the Salvadoran Civil War from 1979 to 1992, fought between the military-led government backed by the United States , and a coalition of left-wing guerrilla groups. The conflict ended with
10752-466: The left-wing party to win presidential elections led to its selection of a journalist rather than a former guerrilla leader as a candidate. On 15 March 2009, Mauricio Funes , a television figure, became the first president from the FMLN. He was inaugurated on 1 June 2009. One focus of the Funes government has been revealing the alleged corruption from the past government. ARENA formally expelled Saca from
10880-504: The majority of the eastern population has an indigenous heritage of Lenca origin, as do their place names such as Intipuca , Chirilagua , and Lolotique . Most of the archaeological sites in western El Salvador such as Lago de Guija and Joya De Ceren indicate a pre-Columbian Mayan culture. Cihuatan shows signs of material trade with northern Nahua culture, eastern Mayan and Lenca culture, and southern Nicaraguan and Costa Rican indigenous culture. Tazumal 's smaller B1-2 structure shows
11008-469: The manufacturing sector. The colón , the currency of El Salvador since 1892, was replaced by the United States dollar in 2001. As of 2019 economic improvements had led to El Salvador experiencing the lowest level of income inequality among nearby countries. Among 77 countries included in a 2021 study, El Salvador had one of the least complex economies for doing business. After the Spanish conquest ,
11136-559: The mayor's office of Sonsonate). In 1824 the two jurisdictions were united in the State of Salvador, a part of the Federal Republic of Central America . After the dissolution of the Federal Republic of Central America, the country was referred to as the "Republic of Salvador" ( República del Salvador ), but in 1915, the Legislative Assembly passed a law which officially stated that the country's name should be rendered as
11264-640: The meantime, the guerrilla movement was spreading to all sectors of Salvadoran society. Middle and high school students were organized in MERS (Movimiento Estudiantil Revolucionario de Secundaria, Revolutionary Movement of Secondary Students); college students were involved with AGEUS (Asociacion de Estudiantes Universitarios Salvadorenos; Association of Salvadoran College Students); and workers were organized in BPR (Bloque Popular Revolucionario, Popular Revolutionary Block). In October 1980, several other major guerrilla groups of
11392-565: The middle class and the latter the interests of the Salvadoran military. PDC leader José Napoleón Duarte was the mayor of San Salvador from 1964 to 1970, winning three elections during the regime of PCN president, Julio Adalberto Rivera Carballo , who allowed free elections for mayors and the National Assembly. Duarte later ran for president with a political grouping called the National Opposing Union (UNO) but
11520-848: The nations that eventually rose from their colonial status. Former French colonies, for example, see much higher rates of income inequality between whites and nonwhites as a result of the rigid hierarchy imposed by the French who lived in Africa at the time. Another example is found in South Africa, which, still reeling from the socioeconomic impacts of Apartheid , experiences some of the highest racial income and wealth inequality in all of Africa. In these and other countries like Nigeria, Zimbabwe, and Sierra Leone, movements of civil reform have initially led to improved access to financial advancement opportunities, but data shows that for nonwhites this progress
11648-437: The nations where they experience the harshest disadvantage. As a result, they are often segregated either by government policy or social stratification, leading to ethnic communities that experience widespread gaps in wealth and aid. Redlining intentionally excluded black Americans from accumulating intergenerational wealth. The effects of this exclusion on black Americans' health continue to play out daily, generations later, in
11776-786: The nature and effects of the violence, and...recommend methods of promoting national reconciliation". In 1993 the Commission delivered its findings reporting human rights violations on both sides of the conflict. Five days later the Salvadoran legislature passed an amnesty law for all acts of violence during the period. From 1989 until 2004, Salvadorans favoured the Nationalist Republican Alliance (ARENA), voting in ARENA presidents in every election ( Alfredo Cristiani , Armando Calderón Sol , Francisco Flores Pérez , Antonio Saca ) until 2009. The unsuccessful attempts of
11904-622: The need for labor across competing suppliers. Market concentration drives down labor's share of the GDP, increasing the wealth of capital and thereby exacerbating inequality. Economists have linked automation to increases in economic inequality, as automation raises the returns to wealth and contributes to stagnating wages at the lower end of the wage distribution. Several economists have suggested that automation has increased income inequality by causing low skill jobs to be replaced with machines operated by technologically skilled workers, thereby reducing
12032-448: The new president of El Salvador. Bukele was the winner of February 2019 presidential election . He represented GANA, as he was denied participating with the newly formed Nuevas Ideas party. ARENA and the FMLN, El Salvador's two main parties, had dominated politics in El Salvador over the past three decades. Economic inequality Economic inequality is an umbrella term for a) income inequality or distribution of income (how
12160-492: The oligarchy opposed agrarian reform , and a junta formed with young reformist elements from the army such as Colonels Adolfo Arnoldo Majano and Jaime Abdul Gutiérrez , as well as with progressives such as Guillermo Ungo and Alvarez. Pressure from the oligarchy soon dissolved the junta because of its inability to control the army in its repression of the people fighting for unionization rights, agrarian reform, better wages, accessible health care and freedom of expression. In
12288-403: The pandemic's "most significant outcome" will be rising economic inequality in the United States and between the developed and developing world. The 2024 Oxfam report found a significant increase in inequality as roughly five billion people have become poorer while at the same time the fortunes of the five richest individuals have doubled. The report warns that current trends are paving the way for
12416-558: The party in December 2009. With 12 loyalists in the National Assembly, Saca established his own party, the Grand Alliance for National Unity (GANA), and entered into a tactical legislative alliance with the FMLN. After three years in office, with Saca's GANA party providing the FMLN with a legislative majority, Funes had not taken action to either investigate or to bring corrupt former officials to justice. Economic reforms since
12544-430: The passage of anti- vagrancy laws to ensure that displaced campesinos and other rural residents provided sufficient labour for the coffee fincas (plantations), and the suppression of rural discontent. In 1912, the national guard was created as a rural police force. In 1898, General Tomas Regalado gained power by force, deposing Rafael Antonio Gutiérrez and ruling as president until 1903. Once in office he revived
12672-452: The peak of western imperialism in the early 20th century." According to the report, the bottom half of the population owns 2% of global wealth, while the top 10% owns 76% of it. The top 1% owns 38%. The wealth is calculated by various factors, for instance: liabilities , debts , exchange rates and their expected development, real estate prices, human resources , natural resources and technical advancements, etc. Income inequality
12800-402: The platform as an opportunity to increase their income by diversifying their activities outside employment, which tends to restrict the volume of work remaining for the minority of platform workers. In addition, there is an important phenomenon of labour substitution as manual tasks traditionally performed by workers without a degree (or just a college degree) integrated into the labour market in
12928-501: The practice of presidents designating their successors. After serving his term, he remained active in the Army of El Salvador and was killed on 11 July 1906, at El Jicaro, during a war against Guatemala . Until 1913 El Salvador was politically stable, with undercurrents of popular discontent. When President Manuel Enrique Araujo was killed in 1913, many hypotheses were advanced for the political motive of his murder. Araujo's administration
13056-400: The present day. The global South is considered to be particularly victimized by this phenomenon, though the exact socioeconomic manifestations change across different regions. While the progression of civil rights movements and justice reform has improved access to education and other economic opportunities in politically advanced nations, racial income and wealth disparity still exists. In
13184-480: The proponents of neoliberalism, trickle-down economics have been proven to not be effective in resolving economic inequalities but have instead worsened it. The growth in importance of information technology has been credited with increasing income inequality. Technology has been called "the main driver of the recent increases in inequality" by Erik Brynjolfsson, of MIT . In arguing against this explanation, Jonathan Rothwell notes that if technological advancement
13312-734: The rich and poor is at its highest level in decades. Inequality trends have been more mixed in emerging markets and developing countries (EMDCs), with some countries experiencing declining inequality, but pervasive inequities in access to education, health care, and finance remain. In October 2017, the IMF warned that inequality within nations, in spite of global inequality falling in recent decades, has risen so sharply that it threatens economic growth and could result in further political polarization . The Fund's Fiscal Monitor report said that "progressive taxation and transfers are key components of efficient fiscal redistribution." In October 2018 Oxfam published
13440-589: The same communities. This is evident currently in the disproportionate effects that COVID-19 has had on the same communities which the HOLC redlined in the 1930s. Research published in September 2020 overlaid maps of the highly affected COVID-19 areas with the HOLC maps, showing that those areas marked "risky" to lenders because they contained minority residents were the same neighborhoods most affected by COVID-19. The Centers for Disease Control (CDC) looks at inequities in
13568-648: The site of La Laguna in Usulutan has also produced Copador items that link it to the Lenca-Maya trade route. By 1521, the indigenous population of the Mesoamerican area had been drastically reduced by the smallpox epidemic that was spreading throughout the territory, although it had not yet reached pandemic levels in Cuzcatlán or the northern portion Managuara. The first known visit by Spaniards to what
13696-794: The size of the army, and the dissolution of the National Police, the Treasury Police, the National Guard and the Civilian Defence, a paramilitary group. A new Civil Police was to be organized. Judicial immunity for crimes committed by the armed forces ended; the government agreed to submit to the recommendations of a Commission on the Truth for El Salvador (Comisión de la Verdad Para El Salvador) , which would "investigate serious acts of violence occurring since 1980, and
13824-540: The social determinants of health like concentrated poverty and healthcare access that are interrelated and influence health outcomes with regard to COVID-19 as well as quality of life in general for minority groups. The CDC points to discrimination within health care, education, criminal justice, housing, and finance, direct results of systematically subversive tactics like redlining which led to chronic and toxic stress that shaped social and economic factors for minority groups, increasing their risk for COVID-19. Healthcare access
13952-545: The spread of a leftist insurrection. Napoleón Duarte was recalled from his exile in Venezuela to head this new junta. However, a revolution was already underway and his new role as head of the junta was seen by the general population as opportunistic. He was unable to influence the outcome of the insurrection. Óscar Romero , the Roman Catholic Archbishop of San Salvador, denounced injustices and massacres committed against civilians by government forces. He
14080-445: The top 1% earners). Some researchers, such as Juliet B. Schor, highlight the role of for-profit online sharing economy platforms as an accelerator of income inequality and calls into question their supposed contribution in empowering outsiders of the labour market. Taking the example of TaskRabbit, a labour service platform, she shows that a large proportion of providers already have a stable full-time job and participate part-time in
14208-444: The total sum of money paid to people is distributed among them), b) wealth inequality or distribution of wealth (how the total sum of wealth owned by people is distributed among the owners), and c) consumption inequality (how the total sum of money spent by people is distributed among the spenders). Each of these can be measured between two or more nations, within a single nation, or between and within sub-populations (such as within
14336-629: The traditional economy sectors are now performed by workers with a high level of education (in 2013, 70% of TaskRabbit's workforce held a bachelor's degree, 20% a master's degree and 5% a PhD). The development of platforms, which are increasingly capturing demand for these manual services at the expense of non-platform companies, may therefore benefit mainly skilled workers who are offered more earning opportunities that can be used as supplemental or transitional work during periods of unemployment. It has also been proposed that information technologies contribute to "winner take most" market concentration, reducing
14464-415: The use of Marxist–Leninist ideology. In December 1930, at the height of the country's economic and social depression, Martí was once again exiled because of his popularity among the nation's poor and rumours of his upcoming nomination for president the following year. Once Araujo was elected president in 1931, Martí returned to El Salvador and, along with Alfonso Luna and Mario Zapata, began the movement that
14592-506: The virus, without options to take time off. Finally, a direct result of redlining is the overcrowding of minority groups into neighborhoods that do not boast adequate housing to sustain burgeoning populations, leading to crowded conditions that make prevention strategies for COVID-19 nearly impossible to implement. As a general rule, races which have been historically and systematically colonized (typically indigenous ethnicities) continue to experience lower levels of financial stability in
14720-552: The western part of the country, killing an estimated 2,000 people. The government suppressed the rebellion brutally, killing between 10,000 and 40,000 people, mostly, Pipil peasants. Many of the rebellion's leaders, including Ama and Martí, were captured and executed. Historically, the high Salvadoran population density has contributed to tensions with neighbouring Honduras , as land-poor Salvadorans emigrated to less densely populated Honduras and established themselves as squatters on unused or underused land. This phenomenon
14848-465: The world's first trillionaire within a decade and global poverty eradication being postponed for 229 years. According to PolitiFact , the top 400 richest Americans "have more wealth than half of all Americans combined." According to The New York Times on July 22, 2014, the "richest 1 percent in the United States now own more wealth than the bottom 90 percent". Inherited wealth may help explain why many Americans who have become rich may have had
14976-487: Was General Maximiliano Hernández Martínez . In December 1931, a coup d'état was organized by junior officers and led by Martínez. Only the First Regiment of Cavalry and the National Police defended the presidency (the National Police had been on its payroll), but later that night, after hours of fighting, the badly outnumbered defenders surrendered to rebel forces. The Directorate, composed of officers, hid behind
15104-645: Was a major cause of the 1969 Football War between the two countries. As many as 130,000 Salvadorans were forcibly expelled or fled from Honduras. The Christian Democratic Party (PDC) and the National Conciliation Party (PCN) were active in Salvadoran politics from 1960 until 2011, when they were disbanded by the Supreme Court because they had failed to win enough votes in the 2004 presidential election. Both parties have since reconstituted. They share common ideals, but one represents
15232-549: Was brutal suppression of a rural revolt known as La Matanza . In the unstable political climate of the previous few years, social activist and revolutionary leader Farabundo Martí helped found the Communist Party of Central America, and led a communist alternative to the Red Cross, called " International Red Aid ", serving as one of its representatives. Their goal was to help poor and underprivileged Salvadorans through
15360-454: Was considered "the voice of the voiceless", but he was assassinated by a death squad while saying Mass on 24 March 1980. Some consider this to be the beginning of the full Salvadoran Civil War , which lasted from 1980 to 1992. An unknown number of people "disappeared" during the conflict, and the UN reports that more than 75,000 were killed. The Salvadoran Army 's US-trained Atlácatl Battalion
15488-430: Was defeated in the 1972 presidential elections. He lost to the ex-minister of interior, Colonel Arturo Armando Molina , in an election that was widely viewed as fraudulent; Molina was declared the winner even though Duarte was said to have received a majority of the votes. Duarte, at some army officers' requests, supported a revolt to protest the election fraud, but was captured, tortured and later exiled. Duarte returned to
15616-489: Was followed by the Melendez-Quinonez dynasty that lasted from 1913 to 1927. Pio Romero Bosque , ex-minister of the government and a trusted collaborator of the dynasty, succeeded President Jorge Meléndez , and in 1930 announced free elections, in which Arturo Araujo came to power on 1 March 1931, in what was considered the country's first freely contested election. His government lasted only nine months before it
15744-540: Was high led to lower levels of numeracy in these regions. John Schmitt and Ben Zipperer (2006) of the CEPR point to economic liberalism and the reduction of business regulation along with the decline of union membership as one of the causes of economic inequality. In an analysis of the effects of intensive Anglo-American liberal policies in comparison to continental European liberalism, where unions have remained strong, they concluded "The U.S. economic and social model
15872-568: Was later truncated by the military. On 22 January 1932, thousands of poorly armed peasants in the western part of El Salvador revolted against the government and Martínez. The rebellion occurred amid widespread unrest over suppression of democratic political freedoms following the cancelation of the results of the 1932 legislative election. The rebels were led by Feliciano Ama and Farabundo Martí and were largely composed of indigenous people and communists. The rebellion made gains initially, capturing several towns and cities across
16000-542: Was launched in 1814, which was also suppressed. In 1821, in light of unrest in Guatemala, Spanish authorities capitulated and signed the Act of Independence of Central America , which released all of the Captaincy General of Guatemala (comprising current territories of Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica and the Mexican state of Chiapas ) from Spanish rule and declared its independence. In 1821, El Salvador joined Costa Rica, Guatemala, Honduras and Nicaragua in
16128-477: Was noteworthy among indigenous leaders in that he mocked the Spanish by wearing their clothes after capturing them and using their weapons captured in battle. Lempira fought in command of thousands of Lenca forces for six more years in Managuara until he was killed in battle. The remaining Lenca forces retreated into the hills. The Spanish were then able to rebuild their garrison town of San Miguel in 1537. During
16256-437: Was overthrown by junior military officers who accused his Labor Party of lacking political and governmental experience and of using its government offices inefficiently. President Araujo faced general popular discontent, as the people had expected economic reforms and the redistribution of land. There were demonstrations in front of the National Palace from the first week of his administration. His vice president and minister of war
16384-613: Was responsible for the El Mozote massacre where more than 800 civilians were murdered, over half of them children, the El Calabozo massacre , and the murder of UCA scholars . On 16 January 1992, the government of El Salvador, represented by president Alfredo Cristiani , and the FMLN, represented by the commanders of the five guerrilla groups – Schafik Hándal , Joaquín Villalobos , Salvador Sánchez Cerén , Francisco Jovel and Eduardo Sancho , all signed peace agreements brokered by
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