ive branches. [edit] Departments and municipalities See also: List of cities in El Salvador Departments of El Salvador El Salvador is divided into 14 departments (departamentos), which, in turn, are subdivided into 267 municipalities (municipios). Department names and abbreviations for the 14 Salvadoran Departments: AH Ahuachapán CA Cabañas CH Chalatenango CU Cuscatlán LI La Libertad PA La Paz UN La Unión MO Morazán SM San Miguel SS San Salvador SV San Vicente SA Santa Ana SO Sonsonate US Usulután [edit] Geography Shaded relief map of El Salvador The scenic Jiboa Valley and San Vicente volcano. Main article: Geography of El Salvador El Salvador is located in Central America. It has a total area of 8,123 square miles (21,040 km²), making it almost the same size as the U.S. state of New Jersey. It is the smallest country in continental America, and is affectionately called the "Tom Thumb of the Americas" ("Pulgarcito de America"). It has 123.6 square miles (320 km²) of water within its borders. Several small rivers flow through El Salvador into the Pacific Ocean, including the Goascorán, Jiboa, Torola, Paz and the Río Grande de San Miguel. Only the largest river, the Lempa River, flowing from Honduras across El Salvador to the ocean, is navigable for commercial traffic. Volcanic craters enclose lakes, the most important of which are Lake Ilopango (70 km² / 27 sq mi) and Lake Coatepeque (26 km² / 10 sq mi). Lake Güija is El Salvador's largest natural lake (44 km² / 17 sq mi). Several artificial lakes were created by the damming of the Lempa, the largest of which is Embalse Cerrón Grande (350 km² / 135 sq mi). El Salvador shares borders with Guatemala (126 mi / 203 km) and Honduras (212.5 mi / 342 km). It is the only Central American country that does not have a Caribbean coastline. The highest point in the country is Cerro El Pital at 8,957 feet (2,730 meters), which shares a border with Honduras [edit] Climate San Vicente Volcano San Vicente Volcano Survey marker at the summit of Cerro El Pital. El Salvador has a tropical climate with pronounced wet and dry seasons. Temperatures vary primarily with elevation and show little seasonal change. The Pacific lowlands are uniformly hot; the central plateau and mountain areas are more moderate. The rainy season extends from May to October. Almost all the annual rainfall occurs during this time, and yearly totals, particularly on southern-facing mountain slopes, can be as high as 217 centimeters. Protected areas and the central plateau receive lesser, although still significant, amounts. Rainfall during this season generally comes from low pressure over the Pacific and usually falls in heavy afternoon thunderstorms. Hurricanes occasionally form in the Pacific with the notable exception of Hurricane Mitch in 1998. From November through April, the northeast trade winds control weather patterns. During these months, air flowing from the Caribbean has had most of the precipitation wrung out of it while passing over the mountains in Honduras. By the time this air reaches El Salvador, it is dry, hot, and hazy. Temperatures vary little with season; elevation is the primary determinant. The Pacific lowlands are the hottest and most humid region, with annual averages ranging from 25°C to 29°C. San Salvador is representative of the central plateau, with an annual average temperature of 23°C and absolute high and low readings of 38°C and 2°C, respectively. Mountain areas are the coolest, with annual averages from 12°C to 23°C and minimum temperatures sometimes approaching freezing. [edit] Natural disasters A landslide caused by one of the 2001 El Salvador earthquakes El Salvador lies along the Pacific ring of fire, and is thus subject to significant tectonic activity, including frequent earthquakes and volcanic activity. Recent examples include the earthquake on January 13, 2001 that measured 7.7 on the Richter scale and caused a landslide that killed more than eight hundred people;[1] and another earthquake only a month after the first one February 13, 2001, killing 255 people and damaging about 20% of the nation's housing. Luckily, many families were able to find safety from the landslides caused by the earthquake. El Salvador's most recent destructive volcanic eruption took place on October 1, 2005, when the Ilamatepec volcano spewed up a cloud of ash and rocks, which fell on nearby villages and caused two deaths (Óscar Armando Guerrero Ventura and José Rafael Guevara). [2] [3] El Salvador's position on the Pacific Ocean also makes it subject to severe weather conditions, including heavy rainstorms and severe droughts, both of which may be made more extreme by the El Niño and La Niña effects. In the summer of 2001, a severe drought destroyed 80% of the country's crops, causing famine in the countryside.[4][5] On October 4, 2005, severe rains resulted in dangerous flooding and landslides, which caused a minimum of fifty deaths.[6] El Salvador's location in Central America also makes it vulnerable to hurricanes coming off of the Caribbean, however this risk is much less than for other Central American countries. The Santa Ana volcano in El Salvador is currently dormant, but while it was still erupting it was very dangerous. Lago de Coatepeque (One of El Salvador's lakes.) was caused by a massive eruption. [edit] Economy Main article: Economy of El Salvador According to the IMF and CIA World Factbook, El Salvador has the third largest economy in the region (behind Costa Rica and Guatemala) when looking at nominal Gross Domestic Product and purchasing power GDP.[7] El Salvador's GDP per capita stands at US$4,900, however, this "developing country" still faces many social issues and is among the 10 poorest countries in Latin America.[8] Approximately 2.4 million (35.2%) people live below the poverty line, its GDP real growth rate is low compared to its neighbors, and 6% of the population is unemployed with much underemployment. Most of El Salvador's economy has been hampered by natural disasters such as earthquakes and hurricanes, but El Salvador currently has a steadily growing economy. GDP in purchasing power parity (PPP) in 2006 was estimated at $33.68 billion USD. The service sector is the largest component of GDP at 60.7%, followed by the industrial sector at 29.6% (2006 est.). Agriculture represents only 7.6% of GDP (2006 est.). The Salvadoran economy has experienced mixed results from the recent government's commitment to free market initiatives and conservative fiscal management that include the privatization of the banking system, telecommunications, public pensions, electrical distribution, and some electrical generation, reduction of import duties, elimination of price controls, and an improved enforcement of intellectual property rights. The GDP has been growing since 1996 at an annual rate that averages 2.8% real growth. In 2006 the GDP's real growth rate was 4.2%. [9] A problem that the Salvadoran economy faces is the inequality in the distribution of income. In 1999, the richest fifth of the population received 45% of the country's income, while the poorest fifth received only 5.6%. In December 1999, net international reserves equaled US$1.8 billion or roughly five months of imports. Having this hard currency buffer to work with, the Salvadoran government undertook a monetary integration plan beginning January 1, 2001 by which the U.S. dollar became legal tender alongside the Salvadoran colón and all formal accounting was done in U.S. dollars. This way, the government has formally limited its possibility of implementing open market monetary policies to influence short term variables in the economy. As of September 2007, net international reserves stood at $2.42 billion.[10] Since 2004, the colón stopped circulating and is now never used in the country for any type of transaction.[11] In general, there was discontent with the shift to the U.S. dollar, primarily because of wage stagnation vis-a-vis basic commodity pricing in the marketplace. Additionally there are contentions that, according to Colin's Law, a reversion to the colón would be disastrous to the economy. The change to the dollar also precipitated a trend toward lower interest rates in El Salvador, helping many to secure much needed credit for house or car purchases. A challenge in El Salvador has been developing new growth sectors for a more diversified economy. As many other former colonies, for many years El Salvador was considered a mono-export economy (an economy that depended heavily on one type of export). During colonial times, the Spanish decided that El Salvador would produce and export indigo, but after the invention of synthetic dyes in the 19th century, Salvadoran authorities and the newly created modern state turned to coffee as the main export. Since the cultivation of coffee required the highest lands in the country, many of these lands were expropriated from indigenous reserves and given or sold cheaply to those that could cultivate coffee. The government provided little or no compensation to the indigenous peoples. On occasion, this compensation implied merely the right to work for seasons in the newly created coffee farms and to be allowed to grow their own food. Such actions provided the basis of conflicts that would shape the political landscape of El Salvador for years to come. For many decades, coffee was one of the only sources of foreign currency in the Salvadoran economy. The Salvadoran Civil War in the 1980s and the fall of international coffee prices in the 1990s pressured the Salvadoran government to diversify the economy. The government has followed policies that intend to develop other export industries, such as textiles and sea products. Tourism is another industry Salvadoran authorities see as a possibility. But rampant crime rates, lack of infrastructure, and inadequate social capital have prevented this resource from being properly exploited and is still underdeveloped. There are 15 free trade zones in El Salvador. The largest beneficiary has been the maquila industry, which provides 88,700 jobs directly, and consists primarily of supplying labor for the cutting and assembling of clothes for export to the United States.[citation needed] El Salvador signed the Central American Free Trade Agreement (CAFTA) — negotiated by the five countries of Central America and the Dominican Republic — with the United States in 2004. CAFTA requires that the Salvadoran government adopt policies that foster free trade. El Salvador has signed free trade agreements with Mexico, Chile, the Dominican Republic, and Panama, and increased its trade with those countries. El Salvador, Guatemala, Honduras, and Nicaragua also are negotiating a free trade agreement with Canada. In October 2007, these four countries and Costa Rica began free trade agreement negotiations with the European Union. Negotiations started in 2006 for a free trade agreement with Colombia. Fiscal policy has been the biggest challenge for the Salvadoran government. The 1992 peace accords committed the government to heavy expenditures for transition programs and social services. The Stability Adjustment Programs (PAE, for the initials in Spanish) initiated by President Cristiani's administration committed the government to the privatization of banks, the pension system, and the electric and telephone companies. The total privatization of the pension system has implied a serious burden for the public finance system, because the newly created private Pension Association Funds did not absorb coverage of retired pensioners covered under the old system. The government lost the revenues from contributors and absorbed completely the costs of coverage of retired pensioners. This has been the main source of fiscal imbalance. ARENA governments have financed this deficit with the emission of bonds, something the leftist FMLN has opposed. Debates surrounding the emission of bonds have stalled the approval of the national budget for many months on several occasions. The emission of bonds and the approval of government loans need a qualified majority (3/4 of the votes) in the National Legislature. If the deficit is not financed through a loan it is enough with a simple majority to approve the budget (50% of the votes plus 1). Despite such challenges to keep public finances in balance, El Salvador still has one of the lowest tax burdens in the American continent (around 11% of GDP). Many specialists claim that it is impossible to advance significant development programs with such little public sector aid. (The tax burden in the United States is around 25% of the GDP and in developed countries of the EU it can reach around 50%.) The government has focused on improving the collection of its current revenues with a focus on indirect taxes. Leftist politicians criticize such a structure since indirect taxes (like the value-added tax) affect everyone alike, whereas direct taxes can be weighed according to levels of income. However, basic foods and medicines are not subject to the value-added-tax.[citation needed] A 10% value-added tax (VAT), implemented in September 1992, was raised to 13% in July 1995. The VAT is the biggest source of revenue, accounting for about 52.3% of total tax revenues in 2004. Inflation has been steady and among the lowest in the region. Since 1997 inflation has averaged 3%, with recent years increasing to nearly 5%. From 2000 to 2006 total exports have grown 19% from $2.94 billion to $3.51 billion. During this same period total imports have risen 54% from $4.95 billion to $7.63 billion. This has resulted in a 102% increase in the trade deficit from $2.01 billion to $4.12 billion.[12] Remittances from Salvadorans living and working in the United States, sent to family in El Salvador, are a major source of foreign income and offset the substantial trade deficit of $4.12 billion. Remittances have increased steadily in the last decade and reached an all-time high of $3.32 billion in 2006 (an increase of 17% over the previous year).[13] approximately 16.2% of gross domestic product(GDP). Remittances have had positive and negative effects on El Salvador. In 2005 the number of people living in extreme poverty in El Salvador was 16%,[14] according to a United Nations Development Program report, without remittances the number of Salvadorans living in extreme poverty would rise to 37%. While Salvadoran education levels have gone up, wage expectations have risen faster than either skills or productivity. For example, some Salvadorans are no longer willing to take jobs that pay them less than what they receive monthly from family members abroad. This has led to an influx of Hondurans and Nicaraguans who are willing to work for the prevailing wage. Also, the local propensity for consumption over investment has increased. Money from remittances have also increased prices for certain commodities such as real estate. Many Salvadorans abroad earning much higher wages can afford higher prices for houses in El Salvador than local Salvadorans and thus push up the prices that all Salvadorans must pay.[15] [edit] Tourism El Salvador's ministry of tourism logo The only airport serving international flights in the country is Comalapa International Airport (airport code: SAL). This airport is located in Comalapa, about 30 minutes southeast of the capital.[16] The airport is commonly known as Comalapa International or El Salvador International. El Salvador's tourism industry has grown dynamically over recent years as the Salvadoran government focuses on developing this sector. Last year tourism accounted for 4.6% of GDP; only 10 years ago, it accounted for 0.4%. In this same year, tourism grew 4.5% worldwide. Comparatively, El Salvador saw an increase of 8.97%, from 1.15 million to 1.27 million tourists. This has led to revenue from tourism growing 35.9% from $634 million to $862 million. As a reference point, in 1996 tourism revenue was $44.2 million. Also, there has been an even greater increase in the number of excursionists (visits that do not include an overnight stay). 222,000 excursionists visited El Salvador in 2006, a 24% increase over the previous year.[17] Most North American and European tourists are seeking out El Salvador's beaches and nightlife. Besides these two choices, El Salvador's tourism landscape is slightly different than those of other Central American countries. Because of its geographical size and urbanization, there aren't many nature-themed tourist destination such as ecotours or archaeological monuments. Surfing, however, is a natural tourist sector that is gaining popularity as more surfers visit El Zonte, Sunzal, and La Libertad, surfing spots that are not yet overcrowded. Also, the use of the United States dollar as Salvadoran currency and direct flights of 4–6 hours from most cities in the United States are important things to note for first-time travelers from the United States. Urbanization and Americanization of Salvadoran culture has also led to something else that first time tourists might be surprised to see: the abundance of American-style malls, stores, and restaurants in the three main urban areas, especially greater San Salvador. Currently, tourists to El Salvador can be classified into four groups: Central Americans; North Americans; Salvadorans living abroad, primarily in the United States; and Europeans and South Americans. The first three represent the vast majority of tourists. Recently, El Salvador is attempting to broaden its tourist base and looking to the last group. Early indicators show that the government's efforts are working. When comparing January–March 2007 to the same period in 2006 (most recent data available), overall tourism has grown 10%, while from North America 38%, Europe 31%, and South America 36%.[18] In the fall, Livingston Airlines will initiate the only direct flight between Europe (departing from Milan) and El Salvador. The Decameron Salinitas, a recently inaugurated resort, has contributed to the growth of tourists from South America (because of name recognition of the resort chain) and is looking to do the same with Europeans. It is interesting to note that Decameron Salinitas is responsible for half the initial bookings on the Milan-San Salvador flights.[citation needed] This demonstrates a synergy between two of the few businesses that cater to European tourists and is evident of what is necessary in this nascent sector. Additionally, more and more tourists continue to be drawn by El Salvador's turbulent past. [1] Some of the latest tourist attractions in the former war-torn El Salvador are gun fragments, pictures, combat plans, and mountain hideouts. Since 1992, residents in economically depressed areas are trying to profit from these remains. The mountain town of Perquin was considered the "guerrilla capital." Today it is home to the "Museum of the Revolution," featuring cannons, uniforms, pieces of Soviet weaponry, and other weapons of war once used by the FMLN's (Farabundo Marti National Liberation Front) headquarters. El Salvador continues to grow as an attraction. 40% of El Salvador visitors want to enjoy the sun and the country's beautiful beaches; 38% of El Salvador visitors enjoy the colonial structures and the country's history; and 22% enjoy the nature and El Salvador mountains and volcanoes. According to El Salvador newspaper El Diario De Hoy the top 10 attractions are the beaches in La Libertad, Ruta Las Flores, Suchitoto, Playa Las Flores in San Miguel, La Palma, Santa Ana where you find the country's tallest volcano, Nahuizalco, Apaneca, Juayua, San Ignacio. [2] [edit] Culture The Roman Catholic Church plays an important role in the Salvadoran culture. Important foreign personalities in El