Divisions Threaten El Salvador’s Economic Rebound

Divisions Threaten El Salvador’s Economic Rebound

Salvadoran President Mauricio Funes must rein in hard-line members of his party of former guerrilla leaders and win over the private sector if the country is to rebound from credit-rating cuts that suggest its economic growth is at risk.

The extent to which the divide between the moderate Funes, a former TV journalist, and the ex-guerrillas leading his Faribundo Marti Liberation Front (FMLN) party is threatening his government was made all too public by secret U.S. diplomatic cables leaked to Wikileaks and published by Spanish daily El Pais.

According to the cables, Funes asked the U.S. for protection against protests organized by former guerrilla leaders within his party and expressed fears that his own intelligence boss is spying on his phone calls.

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