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General Lucas (1978-1982): Economic Development and National Reconstruction through the use of Foreign Aid General Lucas was one of, if not the largest beneficiary of the military’s practice of self- enrichment. The practice of rewarding allies and supporters in the military with economic opportunities in the private sector led to considerable infighting and competition within the military and between the private sector elites and the military. The tactics used by the military in the political arena to repress and control the population, the systematic murder or disappearance of any political adversaries or competition, was used more prolifically in the economic arena as politics and economics became closely tied. In 1981-1982 the lines between favored and out-of- favor were clear; Guatemalan business elites, members of the MLN, the middle class, U.S. business investors, and junior officers had grown increasingly incensed by the rampant corruption during a period of economic recession and internal warfare. As the Lucas regime displayed even more openly corrupt, violent and economically unstable behavior segments of the elite population began to distance themselves from the Lucas regime; further cultivating their close ties with the United States government and American business elites. This involved intense lobbying efforts in Washington D.C. by Guatemalan elites. It also involved the strengthening of ties between like institutions in each state; such as the Chamber of Commerce. Finally it involved increasing the partnerships of U.S. firms and Guatemalan firms in ventures outside of agriculture. In search of new revenues the Lucas administration siphoned funds designated for infrastructure projects, widely inflating the construction costs of existing projects, and increased taxes on coffee exporters (Black, 1984, 119). The United States government and the IMF sent conflicting signals to General Ydígoras; the United States continued to send aid to the Guatemalan government. Also, the IMF continued to lend to Guatemala, US$110 million. IMF conditionality on loans required Guatemala to cut their already “lowest per capita in Central 141
America” spending on social programs (Black, 1984, 119). The level of public debt soars during this period, from US$190 million in 1972 to US$2.65 billion in 1985. The United States, IMF, and World Bank repeatedly encouraged Guatemala to increase the amount of government revenue from taxes placed on the private sector. Taxes on the private sector were only 20% of total government revenues. However, the Guatemalan state caved into pressure from the private sector and the “private sector’s share of taxes actually declined between 1980 and 1986” (Jonas, 1991, 81). Stagflation in Guatemala, a recession combined with inflation, began under General Lucas and continues under General Montt and General Víctores. The austerity measures recommended by the IMF and World Bank during this time included, (1) devaluing the quetzal, (2) eliminating tariffs and protections for domestic industries, (3) implementing a “wage ceiling”, and (4) cuts to social programs (Jonas, 1991, 83). Under President Lucas the economy began a sharp downward trajectory as the GDP growth rate fell from 5.0 in 1978 to -3.5 in 1982. Total exports and GDP per capita had previously increased nearly every year since 1950; but from 1981-1983 GDP per capita decreased as did the number of total exports. The level of external debt increases from US$549 million in 1980 to US$1,187 in 1983 (Dunkerly, 1988, 212). President Lucas and the military were unresponsive to demands from the bulk of society, instead they continued to use any available resources to build businesses and monopolies owned by and controlled by the military. During the Lucas regime the military ran “46 semiautonomous state institutions” including a pension fund, named the Institute for Military Social Security, and a bank established by the army (Black, 1984, 52). The Institute for Military Social Security (IPM) initially funded the army bank under President Arana; started with US$5 million (Black, 1984, 52). The army bank continued to be funded under the Lucas regime; in 1981 the administration approved a US$20 million dollar 142
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A FRAMEWORK FOR INTRA AND INTERSTAT
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Student: Kristina Victor I certify
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volume and duration of total migrat
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TABLE OF CONTENTS Dedication ......
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LIST OF TABLES 1. Table 2.1 Framewo
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Chapter 1 INTRODUCTION Purpose of t
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eyond a simple threshold the intens
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eceiving states (predominantly deve
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Topics in the immigration literatur
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Security is a related sub-topic wit
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sheltered from having to justify th
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Rowthorn 2004; Kemnitz 2003; Stores
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decision by a state to develop rest
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(1) transnationalism increases amon
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or opportunity to receive higher wa
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migration in sending states. While
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individuals from emigrating. Additi
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tend to spend remittances less equi
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have been used for small scale deve
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Cornelius 2001; Crush 2002; Fitzger
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the industrial goals of society rei
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literature is (1) “idiographic,
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violence is approximately 6-10% of
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Hamilton and Chinchilla (1991) ackn
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interstate migration and the effect
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migration is almost always a ration
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A second criticism of non-quantitat
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Lifetime migrants are defined as
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ural and urban has changed over the
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independent variables such as regim
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entrapped in a clandestine detentio
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d. Interstate migrants: Lifetime, i
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eds and continuous cultivation of c
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elite classes during this period co
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enumeration of the Mayan population
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to foreign investment and foreign i
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the Liberal’s initial rule in pos
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The Conservatives were unable to es
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Company in 1901. Corporations from
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corresponding increase in state san
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Democracy in Guatemala: Juan Jose A
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Chapter 5 CURRENT CONDITIONS Guatem
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(1954) and Armas (1954-1957). The f
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President Méndez’s term ends wit
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voter turnout. Eligible voters igno
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against President Cerezo resulting
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Ramiro de Leon Carpio, the former H
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military personnel, and preconceive
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the counterrevolution’s “Libera
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President Kennedy addressed Latin A
Page 102 and 103: dropped napalm on rural villages in
Page 104 and 105: counterinsurgency effort during Pla
Page 106 and 107: funded secretly through the CIA. A
Page 108 and 109: By the end of the 1950s the deep-ro
Page 110 and 111: coffee plantations was affected mor
Page 112 and 113: that significant portions of the un
Page 114 and 115: Guatemala had been described as bei
Page 116 and 117: Chapter 6 DATA AND ANALYSIS The iss
Page 118 and 119: While Arbenz initially enjoyed the
Page 120 and 121: losing their employment, since many
Page 122 and 123: een banned after the coup in 1954,
Page 124 and 125: the “Tiger of Ixcán” and Enriq
Page 126 and 127: (1994), a Truth Commission, the Hum
Page 128 and 129: infuse Guatemala with funds for the
Page 130 and 131: G-2. The G-2 was a military intelli
Page 132 and 133: In the 1990s the Catholic Church jo
Page 134 and 135: included the murder of labor leader
Page 136 and 137: carried over significant social and
Page 138 and 139: In 1945 under President Arévalo th
Page 140 and 141: unfortunately, agrarian reform was
Page 142 and 143: went unheeded. President Arana’s
Page 144 and 145: American and Foreign Power Company,
Page 146 and 147: and timber contained and extracted
Page 148 and 149: highest agricultural wages were tho
Page 150 and 151: Efforts to diversify the Guatemalan
Page 154 and 155: appropriation of state funds to be
Page 156 and 157: ural areas, and the implementation
Page 158 and 159: poles in rural areas. From 1983 to
Page 160 and 161: purchased by the United States over
Page 162 and 163: The Framework: Initiating Economic
Page 164 and 165: the state’s exports-not just agri
Page 166 and 167: 155
Page 168 and 169: agrarian reform in 1952. The studen
Page 170 and 171: individuals on the lists. The death
Page 172 and 173: the population to elect Colonel Ara
Page 174 and 175: Almost immediately after President
Page 176 and 177: unarmed and innocent civilians; the
Page 178 and 179: many years after his removal from o
Page 180 and 181: President Cerezo’s term produced
Page 182 and 183: charged (Human Rights Watch, 1990,
Page 184 and 185: The final findings of the CEH repor
Page 186 and 187: the earlier period in the 1950s the
Page 188 and 189: sponsored violence were linked to e
Page 190 and 191: Dependent Variable: Intra and Inter
Page 192 and 193: 207). Migrants, and their children,
Page 194 and 195: Detailed monitoring of displaced pe
Page 196 and 197: Figure 6.3 The monitoring and maint
Page 198 and 199: Table 7.1 Year 1. Administration 2.
Page 200 and 201: coincided with high levels of polit
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The predicted patterns of economic
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APPENDIX A Table A.1 Year Leader Re
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Year GDP US$ (million) GDP Growth R
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Year Population Life Expectancy Inf
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199
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Castles, Stephen. “Migration and
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Gerstle, Gary., and Mollenkopf, Joh
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Kofman, E. “Female ‘Birds of Pa
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SALA, Statistical Abstract of Latin
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of Economic Affairs, 1987. Storesle
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