Guatemalan Economic
Model Failed
Guatemala - The economic
model implemented in
Guatemala since 1989 has
failed to reduce poverty
and foster growth,
according to a report
from the United Nations
Development Fund (UNDP)
that will be presented
here on Tuesday.
During that period, the
role of the State in
regulating the market
was restricted and the
public administrative
apparatus was reduced,
two principles that are
the pillar of neoliberal
policies.
Consequently,
Guatemala's growth has
remained under the world
average over the past
three decades, at 2.7
percent of the Gross
Domestic Product (GDP),
according the UNDP's
Human Development
Report.
In addition, poverty
increased up to 51
percent of Guatemala's
population and basic
social needs such as
education, healthcare,
housing and employment
were not met, the report
adds.
If it had not been for
family remittances from
Guatemalans living
abroad, the country's
economic deterioration
would have been worse
and dozens of thousands
of families would have
become extremely poor.
In 1989, the
entrepreneurial sector
employed 50 percent of
the country's working
population, but that
number dropped to less
than one third in 2006.
It is possible to change
the situation, the UNDP
says, if bigger growth
is achieved and
mechanisms are
established to guarantee
a fair and egalitarian
distribution of the
wealth.
The Human Development
Report will be submitted
to President Alvaro
Colom on Tuesday.
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