Complete Thesis_double spaced abstract.pdf

poles in rural areas. From 1983 to 1985 the military establishment began to restructure and
reorganize the government and the economy. General Victores attempted to reduce the amount
of government expenditures by at least 10% in 1985. The budget cuts did not affect military
spending, instead the funding cuts largely fell on the “finance” sector. This was the sector
frequently used and abused by General Lucas and his military allies as they purchased goods and
services with state funds (Central America Report, 1985, 158). The United States offered a
variety of financial assistance to Guatemala in the mid 1980s. The financial aid for development
was channeled through the military, funds for rural agriculture, education, healthcare,
administrative reforms, and food aid were all dispersed by the military, usually in exchange for
peasant cooperation.
President Cerezo, President Serrano, President Carpio (1986-1995):
Economic Development: Privatization, Government Austerity, Structural Adjustment
After President Cerezo was elected, he instituted an “Economic Reordering Plan” in
April of 1986. Part of the Economic Reordering Plan called for the creation of emergency
employment in the rural departments. The business sector and the elites immediately opposed
this portion of the development plan and this part of the program was abandoned before it was
implemented. The remainder of the Economic Reordering Plan suffered from a lack of resourced
dedicated to development. Fierce competition between domestic groups for the meager
development funds that were provided by the plan erupted immediately. President Cerezo
attempted to reduce the government’s operating budget and similar to President Victores the
majority of financial cuts came from the investment portion of the state’s budget. However,
President Cerezo’s plan to reduce government expenditures was sabotaged by President Lucas’
previous development decisions. One such example was the expensive and poorly constructed
Chixoy Hydroelectric Project, a dam built on the Rio Negro. Years of rampant corruption by the
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