El Salvador : Policies for Business Recovery, Jobs and Economic Transformation

The report identifies the need for reforms in five complementary areas to boost recovery, productivity, and economic transformation: 1) business regulatory environment; 2) foreign direct investment (FDI); 3) access to productive finance; 4) innovation and entrepreneurship; and 5) participation in global value chains. These areas were selected through consultations with the government and private sector and to complement other analytical work. This report analyzes each area in detail and suggests concrete reform action plans. A cross-cutting trend - which has been accelerated by the COVID-19 crisis —is the importance of digitization within both the public and private sectors. Public policies to support digitization can increase efficiency, enable new business models, and keep firms from lagging behind in domestic and global markets