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Guadeloupe
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The
Mayan civilization flourished in Guatemala and surrounding
regions during the first millennium A.D. After almost
three centuries as a Spanish colony, Guatemala won its
independence in 1821. During the second half of the 20th
century, it experienced a variety of military and civilian
governments, as well as a 36-year guerrilla war. In 1996,
the government signed a peace agreement formally ending
the conflict, which had left more than 100,000 people
dead and had created, by some estimates, some 1 million
refugees.
Guatemala
is the most populous of the Central American countries
with a GDP per capita roughly one-half that of Argentina,
Brazil, and Chile. The agricultural sector accounts for
about one-tenth of GDP, two-fifths of exports, and half
of the labor force. Coffee, sugar, and bananas are the
main products, with sugar exports benefiting from increased
global demand for ethanol. The 1996 signing of peace accords,
which ended 36 years of civil war, removed a major obstacle
to foreign investment, and Guatemala since then has pursued
important reforms and macroeconomic stabilization. The
Central American Free Trade Agreement (CAFTA) entered
into force in July 2006 and has since spurred increased
investment in the export sector, but concerns over security,
the lack of skilled workers and poor infrastructure continued
to hamper foreign participation. The distribution of income
remains highly unequal with more than half of the population
below the national poverty line. Other ongoing challenges
include increasing government revenues, negotiating further
assistance from international donors, curtailing drug
trafficking and rampant crime, and narrowing the trade
deficit. Given Guatemala's large expatriate community
in the United States, it is the top remittance recipient
in Central America, with inflows serving as a primary
source of foreign income equivalent to nearly two-thirds
of exports. Economic growth will slow in 2009 as export
demand from US and other Central American markets drop
and foreign investment slows amid the global slowdown.
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