El Salvador is a small developing country that has undergone important processes of agrarian change and suffered the consequences of a 12-year civil war which ended with a peace agreement in the 1990s. Economic reforms have given insufficient weight to history, institutions and politics. This book will show that to improve their efficiency, there is a need to consider how both economic and political variables have affected social structures and institutions. To be sustainable reforms should aim at an appropriate balance between growth and distribution. The outcomes of this research question some commonly accepted theses on agrarian transformation, state autonomy and the role of economic policy and foreign intervention in El Salvador and Central America in general.