Guatemala : Expenditure Reform in a Post-Conflict Country

This report is the third in a series of joint Government-World Bank reviews designed support Guatemala's peace process (See report nos. 15352 and 16392). As this report was under preparation in late 1998, Guatemala faced an emergency caused by Hurricane Mitch and increasing macroeconomic pressures associated with expansionary monetary and fiscal policies. Macroeconomic conditions continued to weaken in 1999, exacerbated by a number of external shocks, inappropriate macro policies and a fragile financial system. The success of the privatization program, in turn fed fiscal illusion, which was especially hard to resist in an electoral year. The availability of relatively large privatization proceeds created a sense that the emerging macroeconomic imbalances could be tolerated, peace and electoral outlays could be financed without the need to adopt revenue measures, and that international reserves were adequate to defend the Quetzal and keep inflationary pressures under control. While the original intention of this report was to analyze the fiscal stance supporting the peace process, progress in the Government's state modernization program, and performance in meeting agreed socioeconomic peace targets, the macroeconomic developments and the possibility of a major crisis required a more detailed analysis and intensified policy dialogue on the underlying macroeconomic risks in Guatemala. This report retains the macro analysis used in the policy dialogue with the Government.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2000-02-04
Subjects:	GOVERNMENT SPENDING POLICY, POST-CONFLICT RECONSTRUCTION, PUBLIC FINANCE, CIVIL SERVICE REFORMS, MODERNIZATION, DECENTRALIZATION, MUNICIPAL, GOVERNANCE, PEACE BUILDING, PERFORMANCE INDICATORS, FISCAL REFORMS, TAX REFORMS, FISCAL DEFICITS, CONTINGENT LIABILITY, FINANCIAL MANAGEMENT, BASIC NEEDS, PUBLIC EXPENDITURES, PUBLIC DEBT, FISCAL ADJUSTMENTS, NATURAL DISASTERS, REGULATORY FRAMEWORK BUDGET EXECUTION, CENTRAL BANK, CENTRAL GOVERNMENT, COMMUNITY DEVELOPMENT, COUNCILS, CURRENCY UNIT, DEFICITS, DEVELOPMENT GOALS, DEVELOPMENT PROGRAMME, ECONOMIC POLICIES, ELECTRICITY, EMPLOYMENT, EXCHANGE RATE POLICY, EXECUTION, EXPENDITURE, EXPENDITURE REFORM, FINANCIAL SYSTEM, FISCAL, FISCAL ADJUSTMENT, FISCAL DEFICIT, FISCAL ILLUSION, FISCAL POLICIES, FISCAL POLICY, FISCAL REFORM, FISCAL STANCE, FISCAL STRESS, FISCAL TRANSPARENCY, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, GOVERNMENT'S PRIVATIZATION PROGRAM, GOVERNMENTAL ORGANIZATION, HOUSING, HUMAN DEVELOPMENT, ILLITERACY, INSOLVENT, INSTITUTIONAL REFORMS, INTERNATIONAL MONETARY FUND, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, MACROECONOMIC FRAMEWORK, MACROECONOMIC INSTABILITY, MACROECONOMIC MANAGEMENT, MANAGERS, MINISTRY OF FINANCE, MONETARY POLICIES, MONETARY POLICY, MORTALITY, NATIONAL ELECTIONS, NATIONS, POLIO, POOR COMMUNITIES, PRIMARY EDUCATION, PRIMARY HEALTH CARE, PRIVATE SECTOR, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE PATTERNS, PUBLIC INVESTMENT, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SPENDING, REAL EXCHANGE RATE, REGULATORY FRAMEWORK, SHORT TERM, SOCIAL DEVELOPMENT, SOCIAL EXPENDITURE, SOCIAL PROGRAM, SOCIAL SECURITY, SOCIAL SERVICES, TAX, TAX ADMINISTRATION, TAX REVENUE, TELECOMMUNICATIONS,
Online Access:	http://documents.worldbank.org/curated/en/2000/02/1614805/guatemala-expenditure-reform-post-conflict-country https://hdl.handle.net/10986/15481
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