Although the Guatemalan economy has struggled because of political instability and
violence within its borders, it has made great strides in recent years (particularly with the 1996
Peace Accords, which ended the 34 year Guatemalan Civil War). Even more recently (July 2006),
the Central American Free Trade Agreement (CAFTA) was created between the majority of
Central American countries and the U.S. This agreement’s official intent is to increase
investment in Central America and diversify the exports from these areas, although this
measure is far from unanimously supported by North or Central Americans (Fort and Mercer
and Gish, 2004). . Another fundamental element of the national economy is the large amount
of foreign aid which Guatemala receives. Perhaps due in part to the large expatriate
community in Guatemala, the country receives the most U.S. remittance of all Central American
countries. In fact, this funding is equal to almost two-thirds of Guatemala’s exports (CIA, 2010).
Despite this aid2
and forward strides made by the government since the Civil War, much