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Weekly Report - 26 June 2014 (WR-14-25)
EL SALVADOR-HONDURAS: Model cities to trump little island?
Diplomatic tension between El Salvador and Honduras is obstructing economic cooperation – but there are signs that this might not be the case for much longer. Since his investiture on 1 June, El Salvador’s President Salvador Sánchez Cerén has been careful to try and defuse tension with Honduras in the bilateral sovereignty dispute over the tiny Isla Conejo in the Gulf of Fonseca. Sánchez Cerén is also seeking to repair damaged ties with El Salvador’s powerful umbrella business association (Anep) in a bid to improve competitiveness, attract investment and drive economic growth after years of stagnation. One of Anep’s principal proposals is for El Salvador to emulate Honduras by creating controversial ‘zones of economic development and employment’ (Zedes).
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