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Extreme Poverty In El Salvador

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The wealth in El Salvador is held by a small minority of the population who made their money from coffee and sugar and have now diversified into finance and commerce. Land reforms and property redistribution in the 1980s improved the situation for many small farmers and peasants, but there is still a substantial divide between the rich and the poor. According to a report from the U.S. Agency for International Development (USAID), El Salvador's per capita income is the fifth lowest in the Western Hemisphere (when adjusted to reflect the cost of living). Over 25 percent of children below the age of 5 experience extreme poverty in El Salvador and 36 percent of the rural population lives in poverty. Urbanization is a problem developing countries face as cities grow and become a hub for economic, medical and commercial activity. This causes problems for those in rural areas as they have less and less …show more content…

Currently, 60.3 percent of citizens live in urban areas, which results in greater poverty for the remaining people outside of cities. Youth in rural areas of El Salvador face a particularly difficult situation. Many live in poverty and are highly vulnerable owing to the difficulties faced in entering the educational system and the formal labour market. They generally lack the productive and financial assets needed to launch sustainable ventures and are among the main victims of the violence and insecurity that prevail in rural areas. As a result, many choose to migrate. Little attention has been paid to this segment of the rural population in the design of public policies for rural inhabitants. Economic growth in El Salvador reached 4.7% in 2007. However, the 2008-2009 global financial crisis had a negative impact on the country. Export revenues and remittances dropped and unemployment rates rose, while food and energy prices

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