AI Policy and Governance in El Salvador: Framework for Policymakers

National AI Readiness

El Salvador, population 6.3 million, GDP per capita $5,129, faces both opportunities and governance challenges in the AI era. Labor force: 2.9 million. AI adoption: Low; but Bitcoin adoption created some fintech infrastructure. GDP growth: 3.5%.

Labor Market Policy

Unemployment: 5.8%. Average wages: $500 USD. Minimum wage: $365/month (commerce/services sector, 2024).

Priority Sectors for Transition Programs

Maquila assembly, BPO/call centers, administrative services

Digital Infrastructure Gaps

Internet: 63%. Literacy: 89%. STEM graduates: ~6,000 annually.

Policy Recommendations

• AI Ethics: Guidelines for AI in high-stakes sectors
• Data Protection: Privacy regulations that enable innovation
• Workforce Transition: AI reskilling programs proportional to disruption
• Innovation: Tax incentives for responsible AI development

Fiscal Context

Gang crackdown (state of exception since 2022 — mass incarceration), remittance dependency, Bitcoin experiment uncertainty, migration/brain drain, small domestic market, climate vulnerability