USAID-Guatemala Partnership

Classified as a lower-middle-income country by the World Bank, Guatemala has enjoyed relatively stable economic growth over the past decade. But Guatemala’s economic gains have yet to translate into significant poverty reduction in much of the country. Guatemala’s poverty and inequality levels remain among the highest in the region. According to official estimates, the national poverty rate actually rose from 51 percent in 2006 to 54 percent in 2011. In addition, over a quarter-century into civilian rule, Guatemala’s democratic institutions continue to be characterized by poor governance and weak political accountability. Most recently, the May 2013 reversal of former Guatemalan dictator Rios Montt’s conviction on genocide charges further eroded confidence among many quarters in the country’s justice system. In Transparency International’s 2012 Corruption Perceptions Index, Guatemala ranked 113 among 176 countries. In its 2012-16 country development cooperation strategy for Guatemala, the U.S. Agency for International Development pledges Washington’s continued aid engagement with the country. In the strategy, USAID asserts that historic inequality and weak governance are the two most significant challenges to Guatemala’s development. The overall goals of USAID programming in Guatemala are: - Achieving greater security and justice for Guatemalan citizens. - Fostering greater socioeconomic development in Guatemala’s Western Highlands region. - Promoting sustainable management of the country’s natural resources. Funding levels For the third consecutive year, cuts have been slated for U.S. foreign aid spending in Guatemala. For fiscal 2014, the Obama administration has requested $74 million in foreign assistance to Guatemala, 21 percent below current levels. The United States is Guatemala’s largest aid donor. USAID delivers the vast majority of U.S. foreign aid to Guatemala. In 2011, 81 percent of U.S. foreign assistance to Guatemala was channeled through USAID. Funding priorities (fiscal 2014 request) For fiscal 2014, the Obama administration has requested $20.2 million in democracy, human rights and governance assistance to Guatemala, representing 27 percent of proposed U.S. aid spending in the country. USAID Guatemala’s programming in the sector focuses on improving the effectiveness and efficiency of security and justice institutions — including the Police Reform Commission, the National Security Council and the Supreme Court — through the following activities: - Strengthening prosecution and adjudication of crime. - Improving management, administration and coordination among security and justice institutions. - Strengthening accountability and transparency of security and justice institutions. Meanwhile, the Obama administration has allocated $14 million (19 percent) of its proposed fiscal 2014 aid budget for Guatemala to the health sector. The administration has earmarked $6.4 million for family planning and reproductive health, as well as $4 million for maternal and child health. Guatemala is a focus country for the U.S. Global Health Initiative which aims to foster country ownership and strategic coordination across U.S. global health programming. Receiving $13 million in funding from the Obama administration in fiscal 2014, agriculture programming is another priority for USAID in Guatemala. Through 2016, USAID Guatemala will support market-led horticulture as well as coffee production, processing and export projects which are designed to increase rural income and generate employment. Guatemala is a focus country for the Obama administration’s global hunger and food security initiative, Feed the Future. USAID Guatemala emphasizes that its Feed the Future activities are closely coordinated with its health programming. Devex analysis Anchored on long-standing and strategic U.S.-Guatemalan ties, USAID’s partnership with Guatemala is likely to remain strong for the foreseeable future. After Haiti and Colombia, Guatemala is slated to be third-largest recipient of U.S. development assistance in Latin America and the Caribbean in fiscal 2014. USAID Guatemala manages programming for each of the administration’s marquee global development initiatives: Feed the Future, the Global Health Initiative and the Global Climate Change Initiative. Only last month during a visit to Guatemala, U.S. Secretary of State John Kerry reaffirmed the administration’s commitment to Feed the Future’s programming in the country. On the other hand, ongoing congressional concerns over alleged human rights abuses by the Guatemalan military could potentially become a thorn in USAID’s partnership with Guatemala. Current U.S. law provides that the U.S. Secretary of State must certify the Guatemalan military’s compliance with certain human rights conditions before U.S. peace and security assistance is released to the government of Guatemala. Congress has, however, been reluctant to impose conditions on USAID’s Guatemala program. Find USAID projects and tenders in Guatemala. Join the Devex community and gain access to more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.