foreign aid they are currently receiving. In El Salvador and Guatemala’s tax efforts remain insufficient to meet countries’ social investments. Financial freedoms among businesses have advanced rapidly over the past decade, whereas the laws to keep the businesses in check have not. It is important for the countries of Central America to keep track of all the businesses and their activities. Large amounts of foreign debt are also a serious problem for many of these countries. Taxes in these nations should be simplified and exemptions should be decreased in order to be able to pay for these debts. The countries must also begin to attract investments from corporations in other nations. The people in these countries do not need a high salary to survive, and companies like Intel, who has set up a factory in Central America, are taking advantage of this. If countries like Nicaragua and Honduras can attract foreign investments of these kinds it will ease the tension from the damaged crops sector.Central America has a promising future. Debt relief is in sight under the Initiative for Highly Indebted Poor Countries (HIPC Initiative), which will help them achieve a sustainable external position and significantly increase their capacity to meet their social needs. With the foreign debt aid and the money that is being invested in the countries for disaster relief, the countries should be able to lower their poverty rates, and increase employment levels....
