Guatemala Country Plan for 2004-2010

USAID/Guatemala’s current program builds on the gains of the Peace process that followed the signing of the Peace Accords in December 1996, as well as on the achievements of our 1997-2004 Peace Program. Our current program works to advance U.S. foreign policy objectives by focusing on Guatemala’s potential as Central America’s largest economy and trading partner of the United States, but also recognizes the country’s lagging social indicators and high rate of poverty. The three areas of focus for our program are modeled after the Millennium Challenge Account areas—Ruling Justly, Economic Freedom, and Investing in People, and are as follows:

More Responsive, Transparent Governance, through:

• Strengthened justice; and
• Greater transparency and accountability of governments.

Open, Diversified and Expanding Economies, through:

• Laws, policies, and regulations that promote trade and investment;
• More competitive, market-oriented private enterprises; and
• Broader access to financial markets and services.

Healthier, Better Educated People, through:

• Increased and improved quality of social sector (health and education) investments; and
• Increased use of quality maternal-child and reproductive health services, particularly in rural areas.

(Please see Our Programs for more detailed information on each area)

Complementing these priority areas are cross-cutting programs to promote increased food security, greater transparency and accountability in the use of public resources, and expanded opportunities for youth and indigenous peoples. In support of this first cross-cutting program as well as our economic growth and health programs, USAID provides from $16 to $18 million a year in food assistance to address elevated levels of chronic malnutrition in Guatemala—the highest in the hemisphere. Roughly a third of this assistance is “monetized” or sold on the local market to generate funds for complementary productive and health care activities. (Go to Our Programs/Cross-Cutting Activities)

Over the period 2004–2008, total estimated funding for USAID’s program in Guatemala is $192.5 million. The majority of these funds will be provided in technical assistance, training and commodities through U.S. and Guatemalan private and non-profit organizations. Currently USAID funding for Guatemala is around $40 million a year.

USAID/Guatemala also manages the Central America Regional Program for HIV/AIDS that supports the President’s Emergency Plan for AIDS Relief. The annual budget for this program is approximately US $6 million. (Go to Our Programs/Regional Programs)

USAID has also launched its “Global Development Alliance” initiative aimed at forging public/private alliances to leverage additional funds for sustainable development activities in the countries where USAID works. USAID/Guatemala has been a leader in promoting such alliances and is currently managing several of them, both in Guatemala and in the region, through which it has leveraged close to $40 million from the private sector and other sources. (Go to Doing Business with USAID/GDA)