GTZ has been active in Guatemala on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) since 1978.

The peace agreements of 1996 ended 36 years of civil war in Guatemala. The agreements included the commitment to comprehensive political, social and economic reforms, which were to be implemented while taking into consideration the rights of the indigenous population. However, the process of implementation is proceeding only very slowly. Today, the Guatemalan state is strongly characterised by infringements of human rights, a high propensity to violence, impunity from the law, self-administered justice, insufficient focus and transparency of public expenditure, very low levels of tax payment, centralised decision-making structures, corruption and strong political pressure exerted by interest groups.

Guatemalan society is riven by many conflicts: landowners vs. those without land, organised crime vs. urban population, indigenous peoples vs. Ladinos, etc. Indigenous peoples constitute approximately half of the population. Illiteracy rates, birth rates and child morality are considerably higher for them than for Ladinos, who form the economically and culturally dominant layer of society. A catalyst for conflicts and disputes is the unequal distribution of incomes and property.

The stable macroeconomic growth of recent years has not improved the life situation of the poor population. More than half of the population still lives in poverty, and more than a fifth in extreme poverty. Slightly more than 4 percent of the richest citizens have the same income as the whole of the rest of the population. The indigenous population in rural areas is particularly affected by poverty, which is one of the greatest barriers to equal opportunities.

Since the peace treaty of 1996, attempts have been made to better meet the requirements of a multi-ethnic society, including increased expenditure on education and on the promotion of bilingual education. Underdevelopment and the problems of the Guatemalan education authorities are apparent in an illiteracy rate of 30 percent, and in regional and ethnic disparities. In rural areas, educational opportunities are very limited for the indigenous population. The illiteracy rate for women is considerably higher than for men.

When Alvaro Colom’s government took office in January 2008, it was associated with great hopes. The government programme promised to reduce poverty, organised crime and racism towards the indigenous population, and to introduce a new social policy. Meanwhile, two years after Colom took office, solutions for the major problems are still to be found.

In accordance with the agreement between the German and Guatemalan Governments, GTZ’s work concentrates on the priority areas of:

• Democratic governance with equal rights
• Education

It therefore works at the interface between public institutions and civil society.