The successes of Alfredo Cristiani's 1989-94 administration in achieving a peace agreement to end the civil war and in improving the nation's economy helped ARENA--led by former San Salvador mayor Armando Calderon Sol--keep both the presidency and a working majority in the Legislative Assembly in the 1994 elections. ARENA's legislative position was weakened in the 1997 elections, but it recovered its strength, helped by divisions in the opposition, in time for another victory in the 1999 presidential race that brought President Francisco Guillermo Flores Perez to office. A young and serious leader, Flores concentrated on modernizing the economy and strengthening bilateral relations with the U.S. by becoming a committed partner in anti-terror efforts, sending troops to aid in the reconstruction of Iraq, and by playing a key role in negotiations for the Central American Free Trade Agreement (CAFTA).

Taking advantage of both public apprehension of Floresí policies and ARENA infighting, the chief opposition party, the Farabundo Marti Liberation Front (FMLN), was able to score a significant victory against ARENA in the March 2003 legislative and municipal elections. The FMLN won control over 31 seats in the 84-seat Legislative Assembly as well as a number of key mayorships including those in most major population centers. ARENA, with only 29 seats in the 84-seat Legislative Assembly, was forced to court the right-wing National Conciliation Party (PCN), with 14 seats, in order to form a majority voting bloc. However, in 2003 the PCN entered into a loose partnership with the FMLN, further limiting ARENAís ability to maneuver in the legislature.

Despite these constraints, ARENA made a strong showing at the March 2004 presidential election, which was marked by an unprecedented 67% voter turnout. ARENA candidate Elias ìTonyî Saca handily defeated the FMLN candidate and party head Schafik Handal, garnering 57.71% of the votes cast. Nevertheless, Saca faced a complex political environment.

The defeat of FMLNís presidential candidate Schafik Handal rekindled an FMLN internal struggle between party hardliners allied with Handal and more moderate party members who saw the partyís 2004 defeat as a call for reform. In addition, the PCN and the two parties that comprise the center/center-left coalition, the United Democratic Center (CDU) and the Christian Democratic Party (PDC), faced dissolution for failing to each capture at least 3% of the votes. Members of all three parties, whose deputies continued to hold seats in the legislature, publicly discussed creating new parties or aligning with existing ones. It remains to be seen how the reorganization of political parties, or the internal disputes of the FMLN, will affect voting blocs in the assembly.

El Salvador will hold legislative and municipal elections on March 12, 2006.

In accordance with the peace agreements, the constitution was amended to prohibit the military from playing an internal security role except under extraordinary circumstances. Demobilization of Salvadoran military forces generally proceeded on schedule throughout the process. The Treasury Police, National Guard, and National Police were abolished, and military intelligence functions were transferred to civilian control. By 1993--9 months ahead of schedule--the military had cut personnel from a war-time high of 63,000 to the level of 32,000 required by the peace accords. By 1999, ESAF strength stood at less than 15,000, including uniformed and nonuniformed personnel, consisting of personnel in the army, navy, and air force. A purge of military officers accused of human rights abuses and corruption was completed in 1993 in compliance with the Ad Hoc Commission's recommendations. The military's new doctrine, professionalism, and complete withdrawal from political and economic affairs leave it the most respected institution in El Salvador.

More than 35,000 eligible beneficiaries from among the former guerrillas and soldiers who fought the war received land under the peace accord-mandated land transfer program, which ended in January 1997. The majority of them also have received agricultural credits. The international community, the Salvadoran Government, the former rebels, and the various financial institutions involved in the process continue to work closely together to deal with follow-on issues resulting from the program.

El Salvador maintains an embassy in the United States at 2308 California Street NW, Washington, DC, 20008 (tel: 202-265-9671). There are consulates in Chicago, Houston, Los Angeles, Miami, New Orleans, New York, and San Francisco.