In El Salvador in 1998, the Inter-American Development Bank, a branch of the World Bank, approved a loan for a reform program directed at the nation’s water sector. The loan focused on a program based on decentralization and privatization of El Salvador’s water systems. 36 million dollars of the loan was designated specifically for the promotion of private sector participation in the decentralization program.
In 2002, El Salvador was under intense pressure from the International Monetary Fund and the World Bank to privatize its healthcare system, which had up until that point been controlled by the government and available to all legally employed Salvadorans. The system, while admittedly seriously lacking in the services that it provided to the typical Salvadoran, had shown marked improvements over the past few years. A widely popular 1999 strike by the ISSS, the healthcare workers union, had prevented the country from privatizing healthcare and since that point services had graduall