Actividades

Beyond aspirations, raising capacities and prosperity

In order to address the various issues influencing Guatemala's development, we have held virtual discussions to gain a complete perspective on the country's situation. Recently, we had the discussion, The Future of Anti-Corruption Efforts in Guatemala. This time, we discussed the generation of economic opportunities and prosperity in Guatemala.

The generation of economic opportunities begins with understanding our reality as a country, where we want to go, and what we can do to achieve it. In the discussion, Beyond Aspirations, Raising Capacities and Prosperity, different perspectives were heard on how the generation of economic opportunities, through the elevation of capacities, is essential for prosperity in Guatemala. The following participated: 

 

Prosperity

Prosperity refers to favorable economic and social development for individuals. The think tank, Legatum Institute of London, compiles the Prosperity Index where Guatemala:

  • Is ranked 102 out of 167 evaluated countries.
  • Since 2010, it has dropped 10 places in the ranking. 
  • In Latin America, it ranks 19th out of 25, placing the country among the lowest in prosperity in the region. 

Conditions necessary for economic development

The first part of the discussion addressed the necessary conditions for a favorable climate to create economic opportunities. Domingo Sadurni presented the report, The Role of the Private Sector in Catalyzing Inclusive Economic Opportunities in the Northern Triangle, which was conducted by the Atlantic Council. In the report, they analyzed how the Central American private business sector can play a central role in: reducing informality, investing in job-creating sectors, developing human capital, and generating more investment in human infrastructure. 

There is a vicious cycle where informality hinders progress in productivity and maintains high levels of poverty – Domingo Sadurni

For Juan Carlos Zapata of Fundesa, the conditions Guatemala must meet to increase economic opportunities are: institutional strengthening, human capital strengthening, security and justice, and investment in productive infrastructure. 

No country achieves prosperity without first having competitiveness – Juan Carlos Zapata

One of the biggest challenges to fostering prosperity generation is the country's economic reality. Carmen Rosa de León of IEPADES commented that 6 out of 10 Guatemalan households are supported by remittances. There is a culture of dependence on these remittances, but this money is not invested in something that can generate wealth. A change is important to initiate investment that is generated from a savings perspective. 

The union between civil society and entrepreneurship must become a reality. Much dialogue is needed between the actors involved in the issue of prosperity – Carmen Rosa de León

Stories that give hope

In the second part of the discussion, two initiatives that have fostered opportunities and growth for their target audiences were presented. Ricardo Mansilla of Scale Up Xela describes this project as a profitable scalability model, working with existing businesses that need growth. The foundation is to work within a business ecosystem, where the entrepreneur is at the center, but understands the actors and services around them to exponentialize their business. 

Providing tools to entrepreneurs in places where there is no training to do so is the key to projects like this. One of the beneficiaries is Pedro Pablo, CEO of CNPNetwork, who mentioned that the problem often is believing that one cannot grow and limiting oneself as an entrepreneur. Projects like Scale Up Xela teach that it is possible, and they also prepare for future adversities. 

Another project shared was Popoyán, commented on by Alvaro Viteri. This project is based on empowering the agricultural sector, developing different technologies to adapt and innovate with the market. They are an example of sustainable projects that improve farmers' incomes. It is about making a model that many, especially young people, have been accustomed to seeing attractive and profitable. 

Raising capacities for prosperity

On the other hand, the panelists mentioned the relationship between prosperity and migration. The lack of opportunities is one of the reasons why thousands of Guatemalans decide to migrate. It will be a priority to address jointly with the United States, efforts to mitigate the causes of migration and provide Guatemalans with options and opportunities so they can live well in our country. 

One of the main conclusions of the discussion was the recognition that there are various challenges such as economic informality, weak institutions, and undeveloped human capital. However, there are also capacities that can be developed and strengthened, such as the role of public-private partnerships or taking advantage of the demographic dividend of an active population for employment. Likewise, a multidimensional and multisectoral approach is necessary to address the problems and solutions for generating opportunities in the country. It is important to implement successful project models and ways to evaluate their effectiveness to properly use available resources. 


We must incorporate various sectors, as change will not come from a single actor – Christa Walters