Businessmen in El Salvador are increasingly unhappy about the absence of policies to attract foreign investment. Foreign direct investment (FDI) has declined in recent years, making the country the lowest recipient of FDI in Central America, according to their perception.
Entrepreneurship refers to FDI figures for 2011 and the aggressive plans that all the other Central American countries are carrying out in order to attract investment, or to the large infrastructure investments in Costa Rica and Panama, reports Laprensagrafica.com.
Arnoldo Jimenez, executive director of the National Association of Private Enterprise (ANEP), considers that the country has no real desire to develop, for example, public-private partnerships which create jobs and revitalize the economy. He notes that the State, motivated by political interests, allocates large sums to massive subsidies instead of using these sums to modernize public service systems, in particular, Jimenez mentions the $56 million in grants for public transportation, which could be used to install articulated buses.
Ismael Nolasco, executive director of the Salvadoran Chamber of Construction (CASALCO), meanwhile, also believes that the government spends too much on subsidies ($340 million annually according to La Prensa Grafica) and avoids investing. "When investing in ports, remodeling, this does work in favor of the economy because it generates, taxes and greater availability for government to do social programs,", said the businessman.
Added to these complaints are inefficiencies with the budget. Last year, the Government announced a public investment of $1.2 billion, but only managed to implement between 60% -65% of that amount. This year, the goal is $900 million.
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