 GOVERNMENT PROGRAM |
´The State will be an instrument to stimulate and foster individual and social initiatives and not to substitute them.
The Government Program 1996-2000 is the general framework in which the Alvaro Arzú administration published its plans for the presidential period 1996-2000. One of the main intentions of the plan was the Modernization of the State, as a means to build a more efficient and more competitive economy. According to this program, the government promised to redefine its own role, basing it on the principles of subsidiarity and solidarity. The government also promised to reconstruct the State, changing it from a Welfare-State to a subsidiary one, delegating functions to social organizations that are closer to society. Amongst other things, the decentralization of State services was announced, as well as the de-concentration of ministries, the modernization of the Public Administration and the de-monopolization of State activities.
The infrastructure modernization, as mentioned in the Government Program 1996-2000, responds to the objective to increase the quantity and improve the quality of services at efficient prices. "Infrastructure is one where you have a big opportunity in new markets. Even if we see a disadvantage of low coverage, this is a big opportunity for investors because there is a big space to do things. Also the position of Guatemala in the region could be an opportunity from the commercial side", enthused Carmen Uriza of Cien
The reforms were initiated within a philosophical framework based on the principles of subsidiarity of the State, de-monopolization of the sector and free competition between parties. The reforms included, among other things, new legal frameworks that foster competition, the establishment of a regulatory agency and the sale of public assets. The subsidiarity role of the State became manifest through the creation of special funds for social investment.
| Public Investment |
The government announced that social investment and basic infrastructure would be oriented towards areas with the most critical degree of poverty. Actions were initiated in the following high-priority areas: Totonicapán, Quiché, Jalapa, Baja Verapaz, Jutiapa, Huehuetenango, Petén, San Marcos, Sololá, Quetzaltenango, Chimaltenango, Chiquimula, Alta Verapaz, Suchitepéquez and Retalhuleu. These areas will receive 61% of total public investment dedicated to health, education, environmental improvement, electricity and infrastructure. Of total investment, 17% is dedicated to electricity and 19% to infrastructure projects.
| This objective seems to be legitimate, considering the poor availability of infrastructure in these areas. Table no. 3 shows the situation in electricity, phones and roads for all departments in 1992. This gives a clear idea of basic infrastructure necessities by area. For the three sectors that were analyzed, the average infrastructure availability for the rest of the country is much higher than the one for the areas in conflict (the regions that were mostly affected by the armed conflict between the army and the guerrilla in the 60s, 70 and 80s). This justifies the Governments intention to guide most of the public investment to these departments.
| Infrastructure per department |
see table
| Infrastructure |
In general terms, the proposals related to infrastructure fit into the Modernization-of-the- State framework. Regarding this area, the government proposed the following:
Adapt the regulatory framework by redefining the role of State institutions, but at the same time foster private sector participation in the different stages of planning, design, construction, financing, operation and maintenance of national and local infrastructure, limiting the State companies to regulatory and policy-making activities. The challenge of provoking social and economic development in the country includes the objective to increase infrastructure indicators and to overcome the enormous deficits the country shows in this area, by increasing the endowment of infrastructure and improving its quality´
A summary of the proposals in infrastructure.
 Summary of Government Program 1996-2000 on infrastructure
Deregulate the sectors;
Adapt the regulatory frameworks;
De-monopolize, privatize and decentralize the sectors;
Improve the infrastructure;
Increase public investment from 2.9% of GDP in 1995 to 4.5% of GDP in 2000 |
