El Salvador’s story of transformation has been one of faith, bold leadership and ambitious goals—a story that took the spotlight at the 9th High-Level Meeting of the OECD Development Centre in Paris this month.
While global leaders debated the future of sustainable development, El Salvador’s Vice President Félix Ulloa Jr. brought El Salvador’s tangible progress into sharp focus, from crime reduction to economic recovery and green innovation.
The event coincided with the release of the Latin American Economic Outlook (LEO) 2024 report, titled Financing Sustainable Development, a joint initiative by the OECD, CAF Development Bank of Latin America, the European Commission, and the UN Economic Commission for Latin America and the Caribbean (ECLAC).
The gathering brought together regional leaders and global policymakers, including France’s OECD Ambassador Amélie de Montchalin, the EU’s Sustainable Development Policy Director Luc Bagur, Spain’s Foreign Minister José Manuel Albares, Paraguay’s President Santiago Peña Palacios, and Peru’s Prime Minister Gustavo Adrianzén Olaya.
Vice President Ulloa underscored El Salvador’s significant gains in public safety, a cornerstone of President Nayib Bukele’s Territorial Control Plan.
Since its implementation, crime rates have plummeted, with homicides falling by over 70% since 2019, earning the nation recognition as the safest country in the Western Hemisphere, (World Bank, 2023).
The improved security climate has created fertile ground for economic growth, attracting foreign investors and boosting business confidence.
VP Ulloa went on to describe El Salvador’s “economic miracle,” citing robust growth in the tourism sector.
In 2023 alone, tourism generated USD 3.8 billion in revenue, supported by a record-breaking influx of international visitors drawn to the country’s natural beauty and improved infrastructure, (El Salvador Tourism Ministry, 2023).
This economic upturn reflects a broader effort to diversify the economy and reduce reliance on remittances, which have historically accounted for a significant share of GDP.
Central to El Salvador’s development strategy is its green transition. The Vice President highlighted that 86% of the country’s energy matrix is now sourced from renewable energy, including geothermal, hydroelectric, and solar power.
This achievement stems from innovative energy policies designed to harness the country’s natural resources, such as its vast geothermal reserves (International Renewable Energy Agency, 2024).
A landmark financial restructuring initiative also took centre stage in Ulloa’s address.
El Salvador successfully restructured USD 1.031 billion in debt, with significant savings redirected toward environmental conservation efforts, particularly in the Lempa River basin, a critical source of water for the country.
The agreement, facilitated by JPMorgan, was bolstered by USD 1 billion in political risk insurance from the U.S. International Development Finance Corporation and a USD 200 million standby letter of credit from CAF Development Bank.
“This operation secures the preservation of a vital ecosystem while strengthening El Salvador’s financial resiliencem” says VP Ulloa.
In Paris, VP Ulloa also engaged in high-level discussions with OECD officials. Key figures included Sebastián Nieto Parra and Olivia Cuq, who presented findings from the LEO 2024 report.
The report emphasises the need for innovative financing mechanisms to support sustainable development in Latin America, including blended finance and climate funding. Ulloa further met with José Antonio Ardavín, head of the OECD’s Latin America and Caribbean Division, to advance El Salvador’s aspirations for OECD membership.
Plans for a Memorandum of Understanding were discussed, aiming to deepen collaboration in priority areas such as investment, education reform, innovation, and economic competitiveness.
The OECD forum underscored El Salvador’s commitment to integrating sustainable development into its national strategy while fostering regional cooperation. With its achievements in public safety, economic growth, and environmental sustainability, El Salvador is increasingly seen as a model for nations striving to balance development and conservation.
