ElSalvador - RURAL LIFE

Fixed Income   Retirement Planning   Roth IRA   Money Market   Tax Planning   Risk Management   Convertible Bonds   Technical Analysis   

As indicated, El Salvador remained a largely rural country despite the growth of San Salvador and its environs. For the vast majority of rural residents, however, land shortages, unemployment and underemployment, and extremely low wages combined to keep the standard of living low and the quality of life barely tolerable.

Standard of Living

In this largely agrarian society, land distribution continued to lie at the heart of the many problems afflicting the poor. In 1971, which as of 1988 was the date of the latest census, 92 percent of farms, some 250,500 in number, covered less than ten hectares each and together constituted only 27 percent of total farm area. These farms were the holdings of peasant laborers who planted basic foodstuffs such as corn, beans, rice, and sorghum on 95 percent of their holdings. They used rotational methods of agriculture in which individual plots were cultivated for about two years, then left fallow while another plot was tilled.

The 8 percent of the farms with an area greater than ten hectares occupied the remaining 73 percent of farm area. Within this category, 1,941 farms between 100 and 500 hectares in size, representing 0.8 percent of the total number of farms, accounted for 38.7 percent of all land under cultivation. Less than 20 percent of this land produced basic grains. Farms of more than 500 hectares accounted for more than 15 percent of the cultivated land. These farms included the agricultural estates of the elite. The data actually understated the extent of land concentration within the upper sector, however, since some elite individuals owned more than one farm and some large farms were registered in the names of various family members in an effort to conceal family holdings.

At the other end of the scale, there was a considerable increase during the 1970s in the number of farms composed of less than one hectare of land. These farms were on very poor soil, often on steep hillsides prone to erosion, and frequently were rented rather than owned. Such small rental farms were particularly common in the hilly northern departments of Chalatenango, Cuscatlan, Morazan, and Cabanas. In 1950 there were 70,400 such farms in 1961 there were 107,000 in 1971 there were 132,000 and in 1975 there were 138,800. Stated somewhat differently, in 1975 an estimated 96.3 percent of the rural population had access to five hectares or less of generally marginal quality land per family approximately seven hectares were judged necessary for a "typical" family of six people to produce enough food and income for its needs.

Wage labor was the alternative to agricultural selfsufficiency for the majority of rural Salvadorans. In fact, by 1980 approximately 65 percent of the rural work force was landless and dependent on temporary or full-time wage labor more than half the rural families depended on wage work for over half their income. Given the lack of permanent jobs in the agricultural sector, the low wage scale, and the number of laborers seeking work, however, cash income was insufficient for many peasant laborers in the countryside.c9f e. In 1975, for example, a typical family of six was estimated to need US$533 in annual income to buy the basic food needed to survive, yet 60 percent earned US$120 or less.

The effect of a declining national economy in the late 1970s and early 1980s, as evidenced by a decline in agricultural production of 7.4 percent in 1982 and 8.7 percent in 1983, restricted the number of available jobs (see The Labor Force , ch. 3). Unemployment and underemployment increased markedly during the late 1970s and early 1980s and reached such serious proportions that by 1986, according to Salvadoran government statistics, 30 percent of the work force was unemployed and another 20 percent was underemployed (unofficial sources claimed even higher figures). Of those working, a reported 80 percent worked only part time, often at jobs lasting only a few days, or received less than the minimum wage. Regular day labor on a cotton or sugar estate sometimes provided the equivalent of US$1.75 per day or less seasonal jobs at harvest sometimes paid as little as US$0.60 a day.

In addition, even as the number of workers receiving less than the minimum wage increased, the buying power of that wage declined by 65 percent from 1979 to 1983, further aggravating the already serious economic problems of the poor. The minimum diet was very sparse, consisting of maize, beans, rice, sorghum, and, for a family of six, less than one kilogram of meat per month and a per capita caloric intake that was the lowest in the Western Hemisphere. Consumption levels in general fell by 27 percent between 1979 and 1981 and by a further 20 percent by 1984 the overall cost of living rose 98 percent during the 1979-84 period. Clothing and foodstuffs--items on which some 63 percent of all Salvadoran families spent 62 to 65 percent of their income--rose by 153 and 122 percent, respectively.

Poverty encouraged the additional hardship of broken families, a particularly acute problem among landless laborers who often had to move to find work. By 1980 about 25 percent of households were headed by women, partially as a result of men leaving the family unit in search of work. That over 60 percent of children were born out of wedlock was another indication of familial instability.

Data as of November 1988


Next Page    Prev Page    Index Page    

Other Links:  MarketSigns.com  Bonds  IRS Procedures  IRS FAQ's  IRS Tax Info  Employer's Guide for Tax  Individual Federal Tax    
Countries  China  Colombia  Comoros  Cyprus  DominicanRepublic  Ecuador  Egypt  ElSalvador  Ethiopia