Nobody knows Quote by Erik Ching
““A good part of the state’s assets were privatized, including electric power distribution, banks, and telecommunications. The country lacks a national currency, having shifted from the colón to the U.S. dollar in 2001. The country’s main export is people, who travel to and remain in the United States and other countries and send back remittances, which constitute one of the largest contributions to the nation’s GDP; drug money-laundering may bring in more than remittances, but nobody knows for sure. A sizable proportion of economically viable enterprises are now owned wholly or partially by multinational corporations, including the important banks, all communications (mobile phones and internet), beer, petroleum derivatives, and airlines. The country imports a lot of what it consumes, especially foodstuffs, energy, and health products, which is reflected in a chronic trade deficit that would be unsustainable were it not for remittances.””
About This Quote
Source Report: Economic Overview of El Salvador, 2023
The nation relies heavily on remittances and foreign-owned firms, while lacking a sovereign currency and facing trade deficits.
In simple terms: El Salvador depends on money sent home and foreign companies, with no own currency and a trade gap.
Diversify economy and strengthen local industries.
Themes
Mood
Type
When to use this quote
- policy planning
- investment strategy
- government reform
- NGO advocacy
Key Concepts
Questions to Reflect On
- How can El Salvador develop sustainable domestic industries?
- What risks arise from heavy foreign corporate control?
Reliance on external money can limit sovereign policy options.