Travel Reference
In-Depth Information
country's civil war (1960-1996). Although the war had genocidal aspects, it was also very
much related to the distribution of wealth and the 1950s-era reforms that threatened eco-
nomic elites' hegemony. In essence, the oligarchy allied with the military in an attempt to
maintain the status quo.
The oligarchy also found a willing ally in the Unites States, which was happy to support
Guatemalan elites in their emulation of U.S. consumption patterns and the expansion of
privateenterprise.StephenConnelyBenz,inhisbook
Guatemalan Journey
,providessome
interesting insights on Guatemala's oligarchy and the way in which U.S. government aid
via the U.S. Agency for International Development (USAID) may have unknowingly ex-
acerbated Guatemala's inequitable social structures. He argues that capitalism, prior to the
arrivalofUSAID,alreadyfunctionedinitsmostbrutalforminGuatemala,andhepointsto
the history of “the conservative oligarchy and the essentially feudalistic economic system
thatremainedtheprincipalobstacletoamoreequitabledistributionofwealth.”Hegoeson
to say that, “This oligarchy did not care for democracy, modernization, or even economic
liberalism; what it cared for was the perpetuation of an extremely lucrative arrangement...
It was, in short, a segment of society that had long gotten its way and was principally in-
terested in maintaining its privileges—reform was the furthest thing from its interests, un-
less by economic reform one meant lower export taxes, privatization of services, and the
liberalization of price controls.” In essence, Benz argues, U.S. aid money given to support
agro-industry and free enterprise went directly to the oligarchy and thus helped perpetuate
the continuance of a “wildly unjust, cash-crop-driven economy that necessitated U.S. aid
for the impoverished masses in the first place.”
Morerecently,theGuatemalanelites'uncontestedholdonthereinsofpowercanbeseen
in the stalling of the 1996 peace accords. Although the accords contain many provisions
that would contribute to make Guatemala a more just society, the vast majority of these
reforms have fallen by the wayside. Ironically, the major economic reforms taking place
since the signing of the peace accords largely involve the lower export taxes and privatiza-
tion of services Benz speculated about.
On a practical level, you can see the Guatemalan elite at fancy restaurants, shopping
malls, and hotel lobbies in Guatemala City. You'll recognize them by their entourage of
bodyguards, nannies to mind the children, and chauffeur-driven late model luxury cars.
They'll greet each other in courteous fashion and it will seem like everyone in the restaur-
antknowseachotherandispartofthesametight-knitclan.Onapositivenote,absentlarge
quantities of U.S. foreign investment in Guatemalan real estate and tourism infrastructure,
the oligarchy's presence has given Guatemala the condos, office buildings, and five-star
hotels it would otherwise lack.
The Upper and Middle Classes
