Recovery and Reconstruction Discussion

           The recovery process has begun in El Salvador. This past Tuesday Central American Presidents belonging to the Central American Integration System met to asses the damage caused by the E-12 storm and begin strategizing a reconstruction plan. A plan has not been decided upon yet. However, several key areas have become the focus of the discussion such as the economic sector, infrastructure and the health sector.

            In regards to the economic sector, the FMLN party has suggested that a legislative decree be made placing a ceiling on the price of grain, beans, rice, sugar and millet. Orestes Ortez, FMLN deputy, explains that this decree would only be in place for six months unless extended, and that it will help maintain stability until the true impact of the storm can be realized. Roberto d’Abuisson, ARENA congressman, disagrees stating that this sort of limitation will be counterproductive and only encourage shortages and hoarding. He explains that by placing a price ceiling on these goods the farmers will have no incentive to continue producing these goods, thus creating a shortage. This new law proposed by the FMLN has the consumers in mind as the benefactors rather than the producers, which is the main concern of those that oppose such as d’Abuisson.

            Another area that is key to the reconstruction discussion is that of the infrastructure sector. One of the initial points made by President Funes at the meeting on Tuesday was that the solution to the recovery process is not simply to obtain resources from the international community to reconstruct the infrastructure of the past. Instead, Funes urges the international community, particularly industrialized nations, to reduce their production of greenhouse gases and recognize that Central America is vulnerable to the climate changes caused by these gases. In addition to this, Funes states that the reconstruction process needs to be adjusted to include new plans for infrastructure that can endure future storms. The government intends to use the $50 million credit approved by the Inter-American Development Bank to fund the reconstruction process.

            In addition to the general infrastructure, the Health sector has also been an area of concern in the recovery discussion. It has been reported by Diario Co Latino that 247 Health centers have been affected by this storm, and will require 20 billion dollars for recovery. Of the 247, there are 39 hospitals and 3 centers that cannot be used at all. According to El Mundo, the Ministry of Finance plans to redirect $13 million in credit approved for reconstruction to the rebuild health units. Six million dollars has already been used towards humanitarian assistance. However, with diseases continuing to spread from contaminated water, health centers have become a priority.

 The issue of contaminated water is also on the table for discussion. La Prensa Grafica reports that 8,353 water wells have been destroyed and 1,833 are flooded and contaminated. Also, according to the Ministry of Health 6,689 latrines have been flooded and 22,173 have been destroyed. This is a health concern because the consumption of contaminated water and crops can cause gastrointestinal illness. The clean up process of an individual well ranges from $250-$750, which many farmers cannot afford. The total cost to clean the damaged wells would be about $6,000,000 and $17.5 million more to clean latrines, as opposed to an additional $1.2 million to completely replace 500 wells.

The discussion continues in El Salvador as leaders weigh their options and attempt to get their financial houses in order. More updates as the strategy for reconstruction is decided.