Two-Bloc System On The Brink

BMI View: El Salvador's two-bloc political system appears to be on the verge of disintegration as internal divisions plague both the main leftist and rightist blocs. Failure of President Mauricio Funes to distance himself from the increasingly acrimonious disputes could lead to a prolonged bout of political tensions, which we believe would act as a major deterrent to investment in the country, and could threaten its medium term economic trajectory.

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