32 years of economic and political information and analysis on the region

GUATEMALA

Dramatic fall in international bilateral aid

Between 1996 and 2002, bilateral and multilateral international cooperation totaled US$3.5 billion, most of which was directed to completion of the Peace Accords. According to figures from the Secretariat of the Presidency for Planning and Coordination (SEGEPLAN, in Spanish), last year saw the lowest levels of bilateral aid in a decade. Specialists from embassies and cooperation agencies consulted by CAR believe that there were several reasons for the reduction: funds are being re-directed to other parts of the world, multilateral aid is on the increase and, for some, widespread inefficiency in the use of funds. The consensus among those interviewed is that complying with the Peace Accords is no longer a central aim of development projects in the country. Agencies and donor countries are instead focusing their efforts on fighting poverty and issues related to globalization.

REGION

Development Cooperation: from fellow traveler to gate keeper?

Over the last 50 years, the context in which international cooperation works has changed a great deal, and so has its role. Despite the changes, it often seems as though those who run agencies that allocate funds to promote development have no idea of the gravity and implications of the changes that have taken place. These same agencies, which once accompanied development and encouraged the growth of social movements, have gradually turned into sponsors. What, then, is their role now that modernity's creative tensions dissipate under the influence of rapid market expansion? CAR director, Matthew Creelman, tries to answer this question by laying out some of the ideas that have been generated throughout a decade of analyzing the fluctuating fortunes of the Guatemalan Peace Accords.

CAFTA to assuage Chinese textile threat

All available data gathered since the end of textile quotas on January 1, 2005, indicate an accelerated increase in Chinese exports to the US. Since diversifying its textile offerings, China has undercut producers which specialize in the manufacture of specific types of clothing. The implementation of the Free Trade Agreement between Central America, the Dominican Republic and the US (CAFTA) is the only way forward, according to textile manufacturers in the region who signed a letter destined for countries yet to ratify. Meanwhile, several European and US companies are developing safeguards to diminish the effects of increased production from China.

COSTA RICA

Fears over future of preventative health

Embroiled in corruption scandals, the state institution responsible for preventive health care (the Costa Rican Social Security Fund, CCSS) has embarked on a process of restructuring beginning with transfers of management personnel to the busiest clinics and hospitals. While some analysts argue that the moves threaten the future of preventative medicine in the country, CCSS Director claims such fears are unfounded and the result of "misinformation". Other analysts argue that the privatization of health services began 20 years ago, with a gradual weakening of preventive health helping to boost the number of future private clients.

Privatization of prisons?

Despite setbacks and the lack of a clearly defined strategy, Honduran prison reform is gathering pace. Security minister Óscar Álvarez appears the driving force behind most of the changes that seek to end the current state of crisis, with executions and extreme violence an almost daily occurrence. It is in this context that the recent proposal by an Israeli consortium, "Noa Group", to replace the archaic prison in San Pedro Sula has become big news in the local media.

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13 May 2005