El Salvador agrarian reform sector strategy paper

A successful land reform may afford El Salvador the time to slow its population growth, invest in its human resources, and develop a viable industrial sector. However, serious constraints to a successful land reform exist, including financial and foreign exchange costs which may exceed $350 million in the next 2 years and $1 billion dollars over 5 years. In response, USAID/ES proposes $425 million in assistance over the next five years; $50 million will be used to finance agrarian reform activities and the balance will support complementary social and employment services. P.L. 480, Title III monies should be used along with Economic Support Fund financing to support sectoral programs. Such assistance should emphasize: creating employment opportunities for the many Salvadoreans, especially temporary wage earners, who will not directly benefit from the reform; supporting efforts to establish reform beneficiaries" rights and responsibilities; and establishing viable, self-supporting, participatory campesino enterprises. In addition, because turmoil in El Salvador has made international commercial financing unavailable, the Mission proposes that the U.S. Government guarantee up to $400 million of new Salvadorean external debt.