The stylish new central library in El Salvador's capital San Salvador is buzzing with activity.

The futuristic-looking glass building, which is located opposite the city's cathedral and next to the presidential palace, has turned into a family meeting hub.

Children read or play, parents watch them, and the selection of books is impressive.

The entire project was financed by China and is part of a modernization project for the historical center in San Salvador.

However, El Salvador President Nayib Bukele wants to transform much more than just the capital's city center — he has a vision for the entire country.

"Our next step is to ensure that the world perceives El Salvador more for its economic miracle than for its security miracle," he stated, adding, "this will take a few more years, but we are on the right track."

Security situation stabilized

According to official data, El Salvador has transformed itself from one of the most dangerous countries in Latin America to the safest.

The number of murders fell from almost 4,000 in 2017 to less than 80 in the first few months of 2024.

The government arrested more than 80,000 suspected members of the dreaded "Mara" gangs as part of an ongoing state of emergency that began in 2022.            

The term "Mara" comprises numerous criminal gangs that operate throughout Central America.

Their main businesses are arms, drugs and human trafficking as well as prostitution.

However, human rights and non-governmental organizations (NGOs) criticize the crackdown, saying it has landed thousands of innocent people in prison.

Critics say basic democratic rights are being undermined and that state of emergency restrictions have negatively impacted normal citizens, not just armed gangsters.

Confident industry

And yet the majority of the Salvadoran population feels downright liberated.

The same is true for small and medium-sized businesses, which suddenly no longer have to pay protection money to the much-feared Mara gangs.

"Small businesses had to give up part of their income for security purposes and the money was then lacking for investments," Karla Klaus, the director of the German-Salvadoran Chamber of Commerce, told DW.

Also, many large German companies felt forced to leave the country due to the poor security situation, she added.

However, a current survey by the chamber amongst its around 150 members, shows that confidence is now significantly higher.

"Numerous companies are considering investments in renewable energy supplies, in upgrading machinery and in hiring new staff," Klaus told DW, observing a general 'spirit of optimism' among businesses.

In April 2024, for instance, Google also opened a new headquarters in San Salvador.

The American IT giant stated at the time that it wanted to help digitize and modernize the country.

Since then, its modern glass building has become a symbol for the hope that the economic miracle could actually be on its way.

Controversial megaproject

The government is banking on a ripple effect and is also pinning further hopes on tourism.

The "Surf City II" project, for example, aims to appeal to water sports enthusiasts from all over the world.

"We have one of the most spectacular beaches in the country," Bukele stated years ago.

"Surfers tell me it's one of the best surfing beaches in the world but there is not even a decent road to get there," he said.

Also other beaches in the area have not been made accessible, Bukele said.

He promotes the project and has promised to invest $100 million (€95m).

Furthermore, plans for a new, second Pacific airport are in the pipeline. The idea is to bring tourists from Western countries and the southern US directly to the beaches.

Investors also have plans to build new hotels for these target groups, including the global surfing scene.

Questioning the promises

"The ecological damage of this project is so substantial that a sustainable implementation is basically impossible," Ines Klissenbauer, Central America expert at the Latin American aid organization Adveniat, told DW.

In her view, it is simply another attempt by President Bukule to attract capital to the highly indebted country.

Claudia Ortiz from the oppositional Vamos party remains skeptical, too.

She compares the project to El Salvador's failed Bitcoin strategy.

"Bitcoin is part of an authoritarian project and a system in which public funds are used at discretion and without transparency," Ortiz criticizes.

Throughout El Salvador, there are signs in stores that Bitcoin is accepted as a means of payment.

However, the average person is far from being able to afford the virtual currency.

"El Salvador's economic problems and the economic needs of the people will not be solved by making Bitcoin a legal tender," Ortiz told DW.

This article was originally published in German.