Editing El Salvador (section)

===Official corruption and foreign investment===
{{further|Corruption in El Salvador}}
In an analysis of ARENA's electoral defeat in 2009, the U.S. Embassy in San Salvador pointed to [[Corruption in El Salvador|official corruption]] under the Saca administration as a significant reason for public rejection of continued ARENA government.{{citation needed|date=July 2023}} Subsequent policies under Funes administrations improved El Salvador to foreign investment, and the World Bank in 2014 rated El Salvador 109, a little better than Belize (118) and Nicaragua (119) in the World Bank's annual "[[Ease of doing business index|Ease of doing business]]" index.<ref>{{cite web|url=http://www.doingbusiness.org/rankings |title=Economy Rankings |access-date=1 October 2014 |archive-url=https://web.archive.org/web/20150206025936/http://www.doingbusiness.org/rankings |archive-date=6 February 2015 }} Annual index, Doing Business 2014, World Bank.</ref>

As per Santander Trade, a Spanish think tank in foreign investment, "Foreign investment into El Salvador has been steadily growing during the last few years. In 2013, the influx of FDI increased. Nevertheless, El Salvador receives less FDI than other countries of Central America. The government has made little progress in terms of improving the business climate. In addition to this, the limited size of its domestic market, weak infrastructures and institutions, as well as the high level of criminality have been real obstacles to investors. However, El Salvador is the second most 'business friendly' country in Central America in terms of business taxation. It also has a young and skilled labour force and a strategic geographical position. The country's membership in the DR-CAFTA, as well as its reinforced integration to the C4 countries (producers of cotton) should lead to an increase of FDI".<ref>{{cite web|url=https://en.santandertrade.com/establish-overseas/el-salvador/investing-3|title=Foreign investment in El Salvador - Santandertrade.com|website=en.santandertrade.com|access-date=13 April 2015|archive-date=14 April 2015|archive-url=https://web.archive.org/web/20150414013243/https://en.santandertrade.com/establish-overseas/el-salvador/investing-3}}</ref>

Foreign companies have lately resorted to arbitration in international trade tribunals in total disagreement with Salvadoran government policies. In 2008, El Salvador sought international arbitration against Italy's Enel Green Power, on behalf of Salvadoran state-owned electric companies for a geothermal project Enel had invested in. Four years later, Enel indicated it would seek arbitration against El Salvador, blaming the government for technical problems that prevent it from completing its investment.<ref>{{cite news |title=CEL a punto de ir a otro arbitraje |url=http://www.elsalvador.com/mwedh/nota/nota_completa.asp?idCat=47861&idArt=6919711 |access-date=17 March 2020 |work=elsalvador.com |date=21 May 2012 |archive-url=https://web.archive.org/web/20141129045947/http://www.elsalvador.com/mwedh/nota/nota_completa.asp?idCat=47861&idArt=6919711 |archive-date=29 November 2014}}</ref> The government came to its defence claiming that Art 109 of the constitution does not allow any government (regardless of the party they belong), to privatize the resources of the national soil (in this case geothermic energy). The dispute came to an end in December 2014 when both parties came to a settlement, from which no details have been released. The small country had yielded to pressure from the Washington-based powerful [[International Centre for Settlement of Investment Disputes|ICSID]].<ref>{{cite news |title=El Salvador y Enel ponen fin a litigio por acciones de la CEL |url=http://www.lapagina.com.sv/nacionales/101837/2014/12/07/El-Salvador-y-Enel-ponen-fin-a-litigio-por-acciones-de-La-Geo |access-date=17 March 2020 |work=La Página |date=7 December 2014 |archive-url=https://web.archive.org/web/20161107110631/http://www.lapagina.com.sv/nacionales/101837/2014/12/07/El-Salvador-y-Enel-ponen-fin-a-litigio-por-acciones-de-La-Geo |archive-date=7 November 2016}}</ref> The U.S. Embassy warned in 2009 that the Salvadoran government's populist policies of mandating artificially low electricity prices were damaging private sector profitability, including the interests of American investors in the energy sector.{{citation needed|date=July 2023}} The U.S. Embassy noted the corruption of El Salvador's judicial system and quietly urged American businesses to include "arbitration clauses, preferably with a foreign venue", when doing business in the country.{{citation needed|date=July 2023}}

In terms of how people perceived the levels of public corruption in 2014, El Salvador ranks 80 out of 175 countries as per the [[Corruption Perceptions Index]].<ref>{{cite web|url=http://www.transparency.org/cpi2014/results,|title=How corrupt is your country?|first=Transparency International|last=e.V.|website=transparency.org|access-date=13 April 2015|archive-date=16 June 2016|archive-url=https://web.archive.org/web/20160616202240/http://www.transparency.org/cpi2014/results,}}</ref> El Salvador's rating compares relatively well with Panama (94 of 175) and Costa Rica (47 of 175).