Guatemala

HISTORICALLY, THE REPUBLIC of Guatemala was part of the Mayan civilization during the first millennium. In 1821, Guatemala won independence from Spain after nearly three centuries of harsh repression. The dissolution of the United Provinces of Central America in 1839 led to the formation of the republic. During the latter half of the 20th century, political power in Guatemala changed hands frequently among various military and civilian governments. A guerrilla war that lasted for three and one-half decades ended in 1996 after more than 100,000 people had died and a million more had become displaced.

Within Central America, Guatemala is the largest and most populous country. However, its per capita income of $4,200 is around half that of Brazil, Argentina, and Chile. Approximately 50 percent of the labor force are involved in the agricultural sector, chiefly in coffee, sugar, and bananas. Agriculture accounts for about a fourth of the Gross Domestic Product. Services employ 35 percent of the labor force, and the remaining 15 percent are engaged by various industries. Current employment stands at 7.5 percent.

The Guatemalan government has begun wooing foreign investors who ignored the country during the years of political strife. However, widespread government corruption and excessive criminal activity, including drug trafficking and gang violence, present major obstacles to economic prosperity. The weather also plays a role in Guatemala's economic health because of its vulnerability to volcanic activity, occasional violent earthquakes, and hurricanes.

Income is unequally distributed in Guatemala. The richest 20 percent of the population hold 64.1 percent of resources while the poorest 20 percent share 2.6 percent. Guatemala is ranked 48.3 percent on the Gini Index of Human Inequality. Three-fourths of the population lives in poverty; 24 percent live in extreme poverty. Some 37.4 percent of Guatemalans live on less than $2 a day, and 16 percent on less than $1 a day. The poorest segments of the population are women, children, rural residents, and members of the indigenous population. Within this group, 54.3 percent are poor and 22.8 percent are extremely poor. It is estimated that 75,000 children in Guatemala are malnourished, and 67 percent of them are of indigenous ancestry. Elderly women are also particularly vulnerable to poverty in Guatemala because 84.1 percent of them have no social security coverage.

In 2001 the Guatemalan government passed a value-added-tax bill and earmarked five percent of the revenue for food security programs. The National Food Security and Nutrition Council was created to oversee the distribution of food, giving priority to children and pregnant and nursing mothers.

Guatemala has a relatively young population and a life expectancy of 65.14 years. The projected life span has increased considerably since 1980, when life expectancy was 55 years for males and 59 years for females. Among the population of 14,655,189, the median age is 18.47 years. Over 42 percent of the population are under the age of 14, and 3.2 percent have reached the age of 65.

The medical system is in crisis in Guatemala because hospitals do not have necessary medicines and social security does not function. Some 2.4 million people have no access to the healthcare system at all. There are only 109 physicians for every 100,000 residents, and from 20 to 50 percent do not have access to affordable essential drugs. With a prevalence rate of 1.1 percent, HIV/AIDS is raising concern in Guatemala.

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