Poverty in Guatemala

Indigenous community radio, Guatemala © A. Portalewska / Cultural Survival, Inc.

The 36-year civil war in Guatemala ended just over a decade ago in 1996, its detrimental economic impact overlapping with the 1990 baseline for assessment of the Millennium Development Goals (MDGs). Restoring social indicators has proved a volatile process and the country remains one of the poorest in Latin America with over half the population living below the poverty line, currently valued as $2.30 per day. Extreme poverty has reduced from 20% in 1990 only to about 15%; achieving the 10% target by 2015 will be a formidable task. There has been progress towards universal enrolment in primary education for both boys and girls but ingrained cultural gender roles lead to a high drop-out rate of girls. 60% of indigenous women are illiterate.

Almost all poverty in Guatemala is found in rural areas, where over 60% of the population lives, and is particularly focused on indigenous groups who make up 80% of the rural population. The Mayan people form the largest of these ethnic groups which have experienced a long history of discrimination, especially in land rights. Despite agrarian reform programmes, inequity in land ownership remains pervasive, pushing profits into the hands of a few. This distortion contributes to the slow development of infrastructure and transportation, further isolating the rural poor.

Health in Guatemala

Water carriers, Guatemala © Andy Narracott

These rural and indigenous populations experience high infant and maternal mortality with less than convincing progress towards MDG targets. 48% of children suffer chronic malnutrition, the highest incidence in Latin America. A significant share of the population lacks access to affordable health services, largely down to inequitable targeting of public money, with highly-subsidised public facilities almost exclusively used by the non-poor.

Like most of Central America, HIV/AIDS is on the increase and reaching epidemic proportions amongst high risk groups. The highest proportion of those infected are gay men, the problem exacerbated by the homophobic tendencies of the church and restrictive cultural attitudes. The increase is unlikely to be halted until there is sufficient political will.
The Economy in Guatemala

© ACSUR-Las Segovias

Agriculture, traditionally the backbone of the economy, is the main source of income for 87% of the country's poor. Various international institutions have historically pressured the government into an export-orientated agricultural model, putting large tracts of land into fewer hands and encouraging big business to take advantage of the fertile land and cheap labour force.

Small farmers may face further difficulties with the introduction of the controversial Central American Free Trade Agreement (CAFTA) which aspires to foster development but which, thanks to strong-arm tactics by US negotiators, will relax duties on American exports to the region. CAFTA was implemented in Guatemala in July 2006 despite evidence of a lack of critical analysis by the Guatemalan government.

CAFTA benefits U.S. trade © Andy Narracott

The move towards free trade has forced many farmers either to expand their plots into conservation areas or to accommodate maquilas - foreign-owned assembly plants attracted to the cheap labour force and the lax environmental and labour protection laws.

The main generator of foreign exchange is tourism and particularly eco-tourism, paving the way for internationally-backed conservation projects like the Sierra de las Minas Biosphere Reserve Project, which encourages sustainable water management and preservation of biodiversity.



The OneWorld Guatemala Guide was first published in December 2004 with a text written by Volunteer Editor Andy Narracott

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