Overview
Guatemala continues to make progress towards a stable
and prosperous democracy with the December 2003 election
of President Oscar Berger. President Berger’s
administration has steadily moved forward to mobilize
the public and private sectors to increase economic
growth and combat widespread poverty.
Still the positive and peaceful election process does
not disguise the challenges that Guatemalan society
faces. With a population of 12 million and a growth
rate that surpasses its Latin American neighbors (2.2
percent a year), Guatemala is the most populous country
in Central America and struggles with some of the lowest
social indicators in the hemisphere.
Guatemala is a middle income country with a per capita
gross income of $1,740.00 a year. This figure, however,
is somewhat misleading since Guatemala suffers from
extreme income inequality — 56 percent of the
population lives in poverty, one in five in extreme
poverty. Infant mortality is among the worst in the
region (39 per 1,000 live births), maternal mortality
is extremely high (153 per 100,000 births) and chronic
malnutrition remains a serious problem (49 percent).
Though primary school enrollment has risen sharply
from 72 to 85 percent between 1991 and 2001, more than
two million children do not attend school, most of them
indigenous girls in rural areas. Only three of ten children
graduate from sixth grade and only one of 20 enter high
school. The country’s complex topography, 23 languages,
and disenfranchised indigenous population further complicate
efforts to expand health and education services and
improve an extremely low rate of labor productivity.
Despite these challenges, Guatemalans are one of the
strongest supporters of the U.S. Central American Free
Trade Agreement (CAFTA). Guatemala's economy, dominated
by the private sector, generates about 85 percent of
Gross Domestic Product (GDP). Agriculture contributes
22 percent of the GDP and accounts for 75 percent of
exports. Most manufacturing is light assembly and food
processing, geared to the domestic, Central American
and U.S. markets. Over the past several years, tourism
and exports of textiles, apparel, and nontraditional
agricultural products (e.g. winter vegetables, fruit,
cut flowers, ornamental plants) have boomed, while more
traditional exports (e.g. sugar, bananas, coffee) continue
to represent a large share of the export market.
The USAID Program – In 2004,
USAID plans to spend $38.6 million to implement a strategy
that builds on the gains of the peace process and supports
the Government of Guatemala’s plans in four principal
areas:
- Building just, representative governance
- Promoting rural economic diversification and “green”
growth
- Improving investment in health and education
- Cross-cutting emphases on youth, anti-corruption
and food security.
Resources
Feature Stories
Program Information
Country Information
Government Institutions, International Organizations,
Media, and Universities
Multilateral Donors
|
