Case 302 - Saving the Coffee Industry in El Salvador

Letovsky, Robert

The case study focuses on the severe economic, social, and environmental consequences in El Salvador of the long-term decline in global coffee prices. After an overview of Salvadoran history and the connection between land and social peace, the study looks at the coffee industry, both locally and globally, before presenting options for saving what is left of the industry.

This case study is primarily intended for courses in economic development, ideally after students have reviewed alternative models of economic development. It would also fit introductory courses in international relations, political economy, or sustainable development, focusing on issues like the collapse of the International Coffee Agreement and the holdback scheme by the Association of Coffee Producing Countries.