Poverty in Guatemala

This poverty assessment report has three
main objectives: 1) to conduct an in-depth, multi-
dimensional analysis of poverty building on the framework of
the World Bank's World Development Report (WDR) for
2000/2001 using both quantitative and qualitative data; 2)
to examine the impact of government policies and spending on
the poor in key sectors; and 3) to use the empirical
findings to identify options and priorities for poverty
reduction in the future. Policy options are outlined not
only in general, but for the specific themes and sectors
covered. Chapter 2 examines the poverty "problem"
using an array of monetary and social indicators, as well as
perceptions of poverty identified by Guatemalan communities
and households themselves. In general, poverty is determined
by key household endowments and characteristics. These are
analyzed in Chapter 3. Yet historical forces and contextual
factors also play a crucial role in shaping patterns of
poverty. These factors are discussed in Chapter 4. Chapter 5
examines the relationship between poverty and economic
growth in Guatemala from a "macro" perspective.
Chapter 6 builds on this macro-economic context to further
examine the livelihoods and earnings opportunities of the
poor at the household level ("micro" perspective),
with a focus on rural livelihoods. The poor also rely on a
portfolio of assets in order to forge opportunity, including
education (Chapter 7), health (Chapter 8), basic utility
services (Chapter 9), land and financial assets (Chapter 6),
and access to transport (Chapter 10). Generally, the poor
suffer from an unequal distribution of these assets. Chapter
11 provides an operational assessment of vulnerability,
while Chapter 12 reviews existing social protection and
social risk management mechanisms to assess their adequacy
and offer insights into ways in which to strengthen them. As
discussed in Chapter 4, one of the key remaining challenges
for the Peace Agenda is the modernization of the state and a
strengthening of community and social participation. Chapter
13 also considers the role of other important actors in
development, namely the private sector, NGOs, and religious
organizations. Finally, Chapter 14 builds on the empirical
findings in the rest of the report to build an agenda for
poverty reduction in Guatemala. Broadly speaking, a
concerted strategy should be adopted to reduce poverty by
building opportunities and assets, reducing vulnerability,
improving institutions and empowering communities.