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GUATEMALA
>> Regional Overview >> Guatemala Overview 
Introduction
Guatemala is into its fourth year of implementing the historic peace accords signed December 29, 1996. The Peace Accords provide the framework for transforming Guatemala into a more participatory, pluralistic and equitable society. While there have been dramatic advances, particularly during the first two years following the signing of the Accords, the United Nations Monitoring Commission on Guatemala (MINUGUA) reports little progress was made in 1999 to meet key fiscal and justice sector reforms. The April 1998 murder of Bishop Juan Gerardi remains unsolved raising national and international concerns over impunity and the inability of the justice system to investigate and prosecute criminal cases. The limited follow-up on the recommendations flowing from the Historical Clarification Report has disappointed human rights groups in Guatemala and elsewhere. A May 1999 national referendum rejected a Congressionally approved set of constitutional reforms to help institutionalize the peace process. National elections in late 1999 witnessed the overwhelming victory for the opposition Guatemala Republican Front (FRG) which was supported at the local, departmental, and national levels. The new FRG Administration has pledged to continue support for the peace process.
The Mission Performance Plan (MPP) lists the principal U.S. national interests in Guatemala, in priority order, as maintaining regional stability, further democratization, economic liberalization, better control of international crime, slowing emigration and protecting the environment. A wide range of U.S. interests are served by supporting the peace process. The consolidation of democracy in Guatemala contributes to long-term growth and stability in the country as well as the region, which is of increasing trade and investment importance to the United States. Guatemala has 35% of the total population of Central America and a similar percent of regional economic production. Successful post-conflict recovery and reintegration supports other major U.S. interests, such as controlling illegal immigration and narcotics trafficking and creating a stronger trading partner, as well as addressing the global issues of environmental protection, global climate change, rapid population growth, and the improvement of human health.
The U.S. will continue to play a key role in Guatemala's disaster efforts. The USG provided over $9.5 million in emergency food, medical supplies and equipment, construction materials, and Department of Defense helicopter as an immediate response to Hurricane Mitch that struck in November 1998. The USG contributed another $30 million to early rehabilitation. USAID followed this response in July 1999 with a $25 million grant to the Government of Guatemala (GOG) under the Central American and Caribbean Emergency Disaster Relief Fund (CACDRF) and $3 million in emergency child survival funds. The two-year Hurricane Mitch Special Objective addresses near and medium term needs in the areas of disaster preparedness, agricultural recovery, and community disease prevention.
The Development Challenge
While Guatemala is the largest Central American country in terms of population (11 million) and economic activity (1999 gross domestic product GDP $18.5 billion), its largely rural, Mayan population lives in extremely difficult conditions. Distribution of land, income and other wealth is highly skewed toward a small percentage of Guatemala's Spanish-speaking population. An estimated 75% of Guatemalans live in poverty, and the roughly five million Mayans are isolated socially, economically, and politically due to geographic and language barriers as well as the lack of educational and economic opportunities. The country's social indicators are among the worst in the hemisphere, and national averages mask even sharper inequalities between ethnic groups and gender. Overall adult literacy is estimated at 65%, but literacy among Mayan women is estimated as low as 30%. Less than half of rural Guatemalans have access to running water, only a quarter have access to electricity and less than one in ten have access to modern sanitary facilities. Infant, child, and maternal mortality rates are among the highest in Latin America, despite decreases in recent years. These indicators reflect the country's persistent under-investment in social services and basic rural infrastructure, as well as past practices of political and socioeconomic exclusion of the indigenous population.
Implementing the Peace Accords remains a major challenge for Guatemala. Implementing the modernization plan for the judicial system that lays the foundation for increasing access, fairness, and due process, is essential to restoring public confidence in the judicial institutions and establishing the rule of law. A key element of the GOG efforts to address one of the most fundamental sources of conflict was the law establishing the Land Fund, which provides a market-based mechanism for land purchases and titling. Although slowed by Hurricane Mitch, the Government's increased budget allocations for social sectors and a comprehensive education reform plan that emphasizes multicultural, multilingual, and multiethnic education are beginning to address major disparities in the delivery of social services. Setbacks on the road to achieving lasting peace continue. Rising crime and random violence fuel concern as does the lack of an integrated national policy on public security. The proposed fiscal package that is needed to sustain the upward trend in revenue collections called for in the Accords awaits action by the new Administration.
U.S. assistance to date has played a key role in four areas of the peace process: (1) demobilization, reinsertion, and reconciliation; (2) integrated human capacity development; (3) sustainable productive investment; and, (4) modernization and strengthening of the state. U.S. assistance strengthens fragile democratic institutions and supports justice sector reform while promoting respect for human rights. USAID is also helping to increase income opportunities and access to social services for the rural poor while encouraging sound environmental management. Our support in the coming years will closely track the new Administration's efforts to move the peace process forward and deepen reforms.
The requirements for addressing Guatemala's multiple challenges, in addition to financing the costs associated with the peace agreements, are enormous and far exceed the country's current revenue-generating capacity. Increased donor funding is essential to complement domestic financing given the estimated $2.3 billion cost of implementing the Accords between 1997-2000 and the need to extend the Peace Accord implementation calendar. Additionally, the burden of financing Hurricane Mitch-related reconstruction is estimated to be $550 million. Thus, Guatemala is not considered a candidate for graduation from U.S. assistance in the near term.
Other Donors
The United States continues to be the largest bilateral donor, having pledged $260 million of the total $1.9 billion in donor pledges in support of the Peace Accords over the four-year period 1997-2000. Other important bilateral donors Spain ($168 million), Germany ($65 million), Norway, and Sweden are supporting Peace Accords activities mainly in community development, modernization of the state and the judiciary, and infrastructure. Major multinational donors include the Inter-American Development Bank ($945 million), the World Bank ($400 million), Central American Bank for Economic Integration, the United Nations Agencies, and the European Union with programs supporting demobilization and reinsertion, emergency assistance to affected populations, community development, integrated human development, income generation activities, infrastructure, and modernization of the state. International donors have pledged approximately $182 million to support Hurricane Mitch relief and reconstruction efforts. Major donors include Inter-American Development Bank ($61 million), Spain ($29 million), the World Bank ($13.5 million), the European Union, and the United Nations.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: December 21, 2000 |
