Outcome SLV_D_2.4

Outcome 2.4. of the SN aligned to Outcome 2 and 4 of the UNSDCF: By 2026, people, particularly those in vulnerable situations, have greater opportunities to access decent, productive work and sustainable livelihoods, in an environment of inclusive economic transformation, innovative and sustainable.

The outcome 2.4. of the Strategic Note is aligned with Outcome 2 and 4 of the UNSDCF, which seeks to generate greater opportunities for access to decent and productive work and sustainable livelihoods for Salvadoran people, particularly those in vulnerable situations. During the year 2022, the Country Office has made progress on the outcome, by enabling women, especially rural ones, to access decent, productive work and sustainable livelihoods, while promoting a political dialogue that recognizes the specificities of women within the economy. UN Women has indeed fostered opportunities for rural women and micro and small entrepreneurs to access financial products and services. Through an itinerant fair in the municipalities of the Trifinio region, organized with the Central Reserve Bank, rural women of such area could learn about the financial products offered by 24 Salvadoran Financial Institutions. Moreover, thanks to the accompaniment of UN Women, 45 women living in the department of Chalatenango formed 5 new community savings and credit groups. UN Women has also contributed to ensure credit opportunities for small businesswomen thanks to its continued collaboration with the Central American Bank for Economic Integration (CABEI) on the strengthening and follow-up of the CABEI-MELYT Guarantee Fund. Such instrument, established within the framework of the MELYT Program (2019-2021), aimed at fostering the post-COVID 19 economic reactivation by providing access to credit, non-reimbursable capital, and technical assistance to MSMEs. To be specific, during 2022, 650 micro and 357 small enterprises led by women were granted a loan, for a total of US$3 million, protecting 8,582 women's jobs from the impact of the pandemic. UN Women also enabled rural women to seize the opportunities for improved livelihoods offered by technological innovations: 153 rural producers, 81% of them women, received on a regular basis content on climate-smart agriculture and rural women's rights, thanks to the partnership of UN Women with the social enterprise Acceso and its virtual platform "Extensio". Such efforts in the territories have been coupled with initiatives at the institutional level, such as a debate on the urgency to integrate women into the digital economy (annex 7) and the promotion an inter-institutional agreement to develop projects that use technology as a tool to support women entrepreneurs in the rural areas of El Salvador (annex 8). At the political level, the recognition of the care economy and the importance of gender mainstreaming at the institutional level have been acknowledged as central for the achievement of better working conditions for women. This is witnesses by the important steps taken in a series of policy development processes that UN Women has accompanied throughout the past year, such as the finalization of a National Policy on Co-responsibility of Care (annex 1), currently in the approval stage under the Presidency of the Republic; the review and presentation of the proposed National Policy for Rural, Indigenous and Peasant Women (PMRIC, annex 2) to the Minister of Agriculture and Livestock, and the launching of the Institutional Policy for Gender Equality of the Tri-national Commission of the Trifinio Plan (annex 3).

Outcome 2.4. of the SN aligned to Outcome 2 and 4 of the UNSDCF: By 2026, people, particularly those in vulnerable situations, have greater opportunities to access decent, productive work and sustainable livelihoods, in an environment of inclusive economic transformation, innovative and sustainable.

In El Salvador, many women still lack opportunities to access decent, productive work and sustainable livelihoods in an environment of inclusive economic transformation, innovative and sustainable. However, in 2023, significant steps forward were made at the country level, to improve women’s conditions in terms of public policies. This is witnessed, for instance, by the improvement in the Financial Education Indicator registered in 2022, which has increased to 11.75 points in 2022 – a 14% improvement compared to 2016 ( Encuesta Nacional de Acceso y Uso de Productos y Servicios Financieros , 2022)- and by the approval of several legislation and policy instruments, such as the Policy for Co-responsibility of Care, the laws "Lactancia Materna", "Nacer con Carino", "Crecer Juntos" and the Policy "Crecer Juntos" (see ICJ website ), which demonstrate the compromise of the state in providing an enabling environment that allows women to take advantage of economic opportunity by providing quality and accessible care services. During the reporting year, the CO has made significant contributions to such efforts. In this regard, El Salvador Country Office (CO) has used a multilevel approach that combines capacity building at the micro and meso levels, while focusing on dismantling structural inequalities in economic systems at the macro level. On the one hand, it has established a solid alliance with the financial ecosystem, in particular the National Council of Financial Inclusion and Education, CNIEF, led by the Central Reserve Bank, BCR, and the private sector, promoting platforms (such as the fourth Central American Financial Inclusion Forum ), in alliance with the Central-American Bank for Economic Integration, CABEI, to bring together different actors and foster strategic networking in the region for the financial inclusion of women. In particular, it has provided technical assistance for the revision of the Financial Inclusion Roadmap (2024-2028) promoted by CNIEF, which is currently under approval (annex 1). On the other hand, it has renewed its collaboration with a strategic actor, i.e. CENPROMYPE, and established a joint workplan to improve the provision of business services for female-led MSME (annex 2). Moreover, the Country Office has provided technical assistance to government agencies belonging to Plan Social for the design of the National Policy on Co-Responsibility of Care (annex 3) and will continue to support its implementation in 2024, since the unpaid domestic and care work of women and girls is the backbone that allows households, communities and economies to function and thrive. Increasing digitization and automation threaten precarity and job loss on a large scale, yet there may also be new opportunities for women in STEM fields if gender-sensitive measures are taken. It is with this conviction that the Country Office has developed with the Secretariat of Innovation of the Presidency of the Republic proposal for a National Strategy for the Empowerment of Women in Science, Technology, Engineering and Mathematics, which is currently under negotiation (annex 4). In this sense, the CO has established fruitful intersectoral alliances, spanning from governmental actors (BCR, CNIEF Secretariat of Innovation, Plan Social) to regional ones (CABEI and CENPROMYPE), that will reasonably lead to the implementation of public policies from which Salvadoran women will benefit in terms of financial and digital inclusion, as well as of care work redistribution and recognition. In 2024, the CO will increase and strengthen efforts to enhance women's economic empowerment, supporting governmental instances in the implementation of the Financial Inclusion Roadmap (2024-2028), the National Policy on Co-Responsibility of Care and the National Strategy for the Empowerment of Women in STEM, as well as the joint actions with regional actors such as CABEI and CENPROMYPE.

Outcome 2.4. of the SN aligned to Outcome 2 and 4 of the UNSDCF: By 2026, people, particularly those in vulnerable situations, have greater opportunities to access decent, productive work and sustainable livelihoods, in an environment of inclusive economic transformation, innovative and sustainable.

The Country Office implemented a comprehensive approach to support the Salvadoran Government in fostering inclusive economic growth that addresses women’s unequal care responsibilities and barriers to financial inclusion. On one hand, with technical support from UN Women and under the leadership of the Salvadoran Institute for Women’s Development, the government developed an action plan and budget (annex 1) to implement the National Policy on Care Co-responsibility approved in 2022, while also enhancing its expertise in the care economy (annex 2). On the other hand, public and private financial institutions, including the Salvadoran Central Reserve Bank, strengthened their capacity to advance financial inclusion and education through capacity-building initiatives, technical support, and action plans facilitated by the Country Office (annex 3). Additionally, the National Commission for Micro, Small, and Medium Enterprises employed a localized strategy to extend credit to women entrepreneurs excluded from traditional financial markets, deploying financial advisors at the local level with the support of the Country Office (annex 4). At the same time, thanks to the training provided by UN Women at local level, organizations of women in the rural area of El Trifinio have improved their livelihoods, by employing alternative strategies for financial inclusion, such as the methodology of Community Savings and Loan Groups (annex 5) and growing their own vegetables garden with sustainable agricultural practices and diversified crops (annex 6).

Outcome 2.4. of the SN aligned to Outcome 2 and 4 of the UNSDCF: By 2026, people, particularly those in vulnerable situations, have greater opportunities to access decent, productive work and sustainable livelihoods, in an environment of inclusive economic transformation, innovative and sustainable.

The Country Office promoted a comprehensive and transformative approach to support the Government of El Salvador in advancing truly inclusive economic growth, capable of addressing women’s unequal care responsibilities and persistent barriers to financial inclusion. With technical support from UN Women and under the leadership of the Salvadoran Institute for Women’s Development, the country took a decisive step by developing a dedicated action plan and budget for the implementation of the National Policy on Care Co-responsibility approved in 2022, while simultaneously strengthening institutional capacities in the care economy. In parallel, engagement with 20 public and private financial institutions enabled structural changes within the financial system. Through capacity-building processes, technical assistance, and the development of gender-responsive action plans, these institutions advanced the integration of financial inclusion and financial education as strategic priorities, laying solid foundations to reduce long-standing gender gaps in access to financial services. At the territorial level, the National Commission for Micro and Small Enterprises, with support from the Country Office, implemented an innovative proximity-based strategy that brought credit to women entrepreneurs traditionally excluded from formal financial markets. The deployment of financial advisors at the local level helped remove information and access barriers, creating tangible opportunities to strengthen and sustain women-led businesses. At the same time, in the rural areas of El Trifinio, UN Women supported training processes generated direct impacts on the lives of organized women. Through alternative financial inclusion approaches, such as Community Savings and Loan Groups, and the establishment of household gardens using sustainable agricultural practices and diversified crops, women strengthened their livelihoods, increased their economic autonomy, and advanced toward more resilient and sustainable models of local development. Taken together, these actions demonstrate an integrated approach that combines public policy, institutional transformation, territorial innovation, and community empowerment, clearly showing that gender equality is a key driver of inclusive and sustainable economic growth in El Salvador.