Towards Better Expenditure Quality : Guatemala Public Expenditure Review
Guatemala has made tremendous strides in moving toward democracy and building institutions after a prolonged civil war, much remains to be done in generating the foundations for strong broad-based economic growth. As Guatemala enters its fifth pres...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/05/17817212/towards-better-expenditure-quality-guatemala-public-expenditure-review http://hdl.handle.net/10986/16085 |
| Summary: | Guatemala has made tremendous strides in
moving toward democracy and building institutions after a
prolonged civil war, much remains to be done in generating
the foundations for strong broad-based economic growth. As
Guatemala enters its fifth presidential cycle since the 1996
Peace Accords, the newly elected administration faces
tremendous economic challenges. Efforts during the previous
administration to directly address poverty and improve
education and health outcomes, particularly in the
indigenous and rural areas, were intense, with tentative
signs of success. The signing of the Peace Accords in 1996,
following a protracted negotiations process, marked a
turning point in Guatemala's development path. Three
cross-cutting themes were emphasized through the Accords: 1)
the rights of indigenous communities; 2) commitments
regarding the rights and position of women, and 3) a
strengthening of social participation. However,
Guatemala's institutional environment continues to
complicate the cooperation of political actors over time and
thus the inter-temporal bargains required to agree upon and
sustain structural reforms. Over the past two decades,
economic growth has been relatively stable but weak. Since
1990, real Gross Domestic Product (GDP) growth per capita in
Guatemala has averaged about 1.2 percent, about
three-quarters of a percentage point less than the rest of
Latin America and the Caribbean and significantly less than
other middle-income countries. Financial sector legal and
regulatory reforms implemented since 2000 have improved
banks' solvency and resilience to market volatility,
but lack of access to finance remains a major issue for the
financial sector. To accelerate broad-based growth,
Guatemala will need to improve the investment climate for
business, increase educational attainment and make progress
on governance, transparency and security. |
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