Land Redistribution in Guatemala:

Necessary Steps Toward the Elimination of Poverty of Indigenous Peoples

 

EDGE Final Paper

Winter Quarter 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nicole Jordan

Lauren McCormick


Figure 1 - Temples at Tikal

 

"The imagination reels. There are reliefs, pyramids, temples in the extinguished city. The damp murmur of the arroyos, voices, crepitations of the intertangling vines, the sound of flapping wings, trickle into the immense sea of silence. Everything palpitates, breathes, exhausting itself in green above the vast roof of Peten."

Nobel Laureate Miguel Ángel Asturias, The Mirror of Lida Sal: Tales Based on Mayan Myths & Guatemalan Legends.

           

The ancient city of Tikal lies in the northwest corner of Guatemala.  The largest known Mayan city, Tikal was inexplicably abandoned thousands of years ago and only recently rediscovered by archaeologists and subsequently, tourists.  Tikal is an oasis of pyramids in the midst of thick jungle, alive with the cries of howler monkeys, the thick, wet smell of flora, and the almost audible drumbeat of an ancient civilization determined to survive.  It is here in Tikal that my odyssey into the mores of the indigenous people of Mesoamerica begins and ends.  

I traveled to Guatemala over Spring Break 2001 with an organization called Agros.  Agros is a humanitarian organization whose stated purpose is to break the cycle of poverty in Central America through land ownership.  Agros operates through the establishment of small villages.  They purchase plots of land and spend a year screening impoverished families.  Ten to fifteen families are then selected and put through a three-year training program which teaches them basic farming and business skills.  The villagers move onto their land, where they elect a local government, and decide how to distribute the land amongst themselves.  They also plan and, as a community, begin a small business which sells crafts and crops produced by the village workers.  Over time the villagers make money and slowly purchase back the land from Agros.  At the end of the process, the villagers are landowners.

During the time that the village infrastructure is being constructed, Agros sends in short-term teams to help with various construction projects.  My team was selected to work in a village in the center of the Ixil Triangle, a region of Guatemala greatly affected by the civil war.  Nearly every native person I spoke with during my time there had lost a loved one during the civil war.  Rather than have us travel directly to the village, Agros wanted us to develop an understanding for the people with which we were working and hence had us visit the city of Tikal, the birthplace of the Mayans in Guatemala.

The Mayans meticulously constructed Tikal over a period of nearly 500 years beginning in 600 B.C.  An ancient clay map discovered in Tikal foretells the completed city, including buildings and temples that would not be built for another 300 years.  The Mayans are a patient and faithful people, remaining scrupulously true to the vision of Tikal even after the city planner’s children, grandchildren, and great-grandchildren had died.[1]

            As I toured the ancient ruins, towering, white-barked Ceiba trees shaded most of the pathways.  These monstrous trees have very little natural vegetation; however, their wide limbs provide a framework off of which an ecosystem of orchids, ferns, and cacti survive.[2]  In many ways, these trees represent the Mayan people themselves; they are the stout backbone of Guatemala that has survived invasion, repression, and war while allowing other artistic elements of the society to survive.

In the third world, “land is an essential productive asset and . . . is important for household welfare, aggregate economic growth, and sustainable reduction of poverty.”[3]  Traditionally the top echelons of a society control the vast majority of a country’s land, and therefore the welfare of its people.  Poor countries such as Guatemala are especially prone to the manipulation of large, profit-driven corporations who subvert the law with bribes and sustain the impoverishment of the masses.  In these circumstances, land is power.  Land must be returned to the native people of Guatemala so that they can begin to rebuild their identity as an ethnicity and become economically independent.  This redistribution of land will be accomplished through the creation of a national Land Registry and farm workers cooperatives.  These cooperatives will be responsible for the harvesting, processing, distribution, and marketing of agricultural goods. 

The Mayan people were first displaces from their land during the years 1523-24, when Spanish conquistador Pedro de Alvarado warred with, and eventually defeated the native Mayan people, establishing Guatemala as a Spanish colony.  Guatemala endured 300 years of Spanish rule before gaining their independence in the late nineteenth century.  In 1944 Juan Jose Arevalo rose to power, signaling the start of a period in Guatemalan history called the “Ten Years of Spring.”   Arevalo implemented many social reforms, including a land redistribution effort, which sought to put land back into the hands of peasants.  Guatemala’s next president, Jacobo Arbenz Guzman, furthered these reforms and began to institute education and public healthcare programs.[4]

            Meanwhile in the United States, Lorenzo Baker, who had arrived in New Jersey in 1870 with 160 bunches of bananas, decided to merge his Boston Fruit Company with three other banana importers, creating the United Fruit Company (UFC) at the turn of the twentieth century.[5]  Throughout the early twentieth century, the UFC continued to expand rapidly.  Guatemala’s lowland Pacific strip, with its tropical climate and heavy summer rains is an ideal region for banana plantations and its land was rapidly bought by the UFC.[6]  In 1932, the United Fruit Company owned nearly 60% of all bananas exported from Central and South America.  The company’s land holdings were so extensive that it earned the name “El Pulpo,” or The Octopus.[7] 

            In 1954 the United Fruit Company denounced President Guzman in the United States as a communist after he attempted to seize some of the UFC’s fallow acreage in one of his land reform programs.  The United Fruit Company provided ships to carry CIA-backed troops to Guatemala who overthrew Guzman and installed a military dictatorship under the rule of Carlos Castillo.[8],[9] The overthrow plunged Guatemala into a ferocious and deadly civil war, which lasted 36 years.  In 1996 after a peace accord was signed, a UN investigation revealed that over 200,000 murders had been committed during the war, 93% by military forces who oversaw 626 documented massacres in Mayan villages.[10]  One vocal witness to these horrors is Rigoberta Menchú, the recipient of the 1992 Nobel Peace Prize. 

“My personal experience is the reality of a whole people.”[11]  Such begins the memoirs of Rigoberta Menchú, a Quiché Indian woman from Guatemala.  The introduction to her autobiography, I Rigoberta Menchú, An Indian Woman in Guatemala, describes her as a fortunate observer:  “She has survived the genocide that destroyed her family and community and is stubbornly determined to break the silence and to confront the systematic extermination of her people.”[12]  The Guatemalan army killed her father, mother and brother during the civil war; and she has experienced the exploitation and injustice that have plagued the native people of Guatemala over the last 500 years. 

Menchú was born to a family of peasant workers.  As a teenager she became interested in women’s rights as well as the well-being of farm workers.  Along with her father she joined the Committee of the Peasant Union (CUC) in 1979.  As tensions between the indigenous population and those of European descent increased in the 1980s, Menchú’s political involvement and interests shifted.  In 1981 she joined the 31st of January Popular Front, which was named in order to commemorate the date on which a group of Quiché Indians were massacred as they occupied the Spanish Embassy in Guatemala.  The purpose of this organization was to fight for the recognition and rightful share of power of indigenous peoples in Guatemala.  This is a cause for which Menchú continues to fight.[13]  This same year, because of her increasing political involvement, Menchú was forced into exile in Mexico. 

Rigoberta Menchú’s work has brought worldwide attention to the struggles of indigenous people in Guatemala.  The organization that she heads, the Rigoberta Menchú Foundation, “strives to galvanize the majority indigenous Mayan population in their fight for civil and human rights.”[14]  Despite the efforts of groups such as Menchú’s, Guatemala is still struggling to overcome the ravages of war. 

            The population of the country today stands at 12.6 million, an estimated 45 to 60% of which come from 22 Mayan ethno- linguistic groups.  Each group speaks its own native language and approximately 40% of all Guatemalan children enter school with no knowledge of Spanish.[15]  Although the war greatly damaged the country, Guatemala has the largest economy in Central America.  Exports account for about 20% of GDP, 5% of which is bananas.[16],[17] Although foreign investment has been encouraged, it has been limited due to the lack of a domestic land market. 

Figure 2 - Map of Present-day Guatemala

The United Fruit Company, which changed its name in 1970 to United Brands and again to Chiquita Brands International, Inc. in 1990, still has extensive land holdings in Guatemala[18],[19] The Del Monte Company also owns quite a bit of this much-desired land, but its holdings are obfuscated because the land is technically owned by a dozen, separately titled subsidiaries.[20]  Even with the prosperity relative to their neighbors, nearly 80% of Guatemalans lives in poverty.  Less than three percent of the citizens own more than 70% of the arable land.[21]

The economic and land ownership disparities of the indigenous Guatemalan population parallels that of the Chiapas Indians in Southern Mexico.  As in Guatemala, the results of Spanish colonization in Southern Mexico were the systematic stripping of indigenous lands, racism and poverty.  On January 1, 1994, the inaugural day of the North Atlantic Free Trade Agreement (NAFTA), a guerrilla group known as the Zapatistas took hold of San Cristobal and five other towns in Chiapas.  For this mostly indigenous guerrilla group, and the rest of the native population, NAFTA was merely a form of “corporate colonialism.”[22]  NAFTA would create for them a living standard below the already appalling living conditions that existed. 

NAFTA reduces the barriers to trade by eliminating tariffs and import quotas on products such as agricultural goods.  In effect, foreign companies have the comparable advantage over indigenous farm workers, as they are able to produce goods at a lower cost.  Additionally, foreign companies have an incentive to relocate to Mexico, where they can hire cheap labor and offer little or no health protection to their workers.  Despite the fact that NAFTA opens the North American market, it is a detriment to the poor farm workers. 

As in Guatemala, foreign investment is abundant in Chiapas, Mexico.  Beginning in 1994 and over a span of 5 years, foreign and Mexican businesses like Axa Yashaki, Herdez, Produce and Foundation, the Chiapas Funds and Propalma, had invested a total of 40 million dollars in the region.  The ecotourism industry has also flourished in the area.  Coffee production in Chiapas accounts for 36% of the coffee produced in Mexico.  In fact, the coffee production in Soconusco alone is equivalent to that produced by the Dominican Republic.[23]  Despite the influx of revenue into the region, the state of Chiapas is the second poorest in all of Mexico.[24]  The literacy rate in the rest of Mexico is 87%, while in Chiapas it is a mere 69%; seventy nine percent of households in Mexico have running water, while this number stands at 58% in Chiapas; and finally, eighty eight percent of Mexican households have access to electricity compared to 67% of households in Chiapas. 

The organization, Food First, offers suggestions to empower the indigenous population of Chiapas that greatly parallel our proposal for the banana-growing Pacific region of Guatemala.  First, they recognize that a new land ownership program and the proper macroeconomic climate are key to improving the lives of the indigenous population.  Specifically, they assert that “Mayan communities must be given communal land holdings… with guarantees of secure tenure.”[25]  Second, they recognize the need for fair credit, and reasonable crop prices that allow the farmers to maintain their livelihood.[26]  Lastly, they recognize the need to eliminate corruption in local governments in order to ensure the viability of such Mayan cooperatives.  The native population of Guatemala is ready for such a plan.

Figure 3 - A Typical Mayan Village in Guatemala

Recently unrest has been welling in Guatemala in support of land redistribution.  In August of 2002 over 30,000 peasants went on strike, blocking roads and occupying large farms.  The strike was organized by the National Coordinator of Campesino Organizations (CNOC), and called on President Alfonso Portillo to develop concrete plans to rectify the gross unequal distribution of land.[27]  The growing disillusionment with the status quo in Guatemala demands that an explicit policy be developed and implemented.

            The cornerstone of any land policy is secure property rights.  In a country where land has been forcibly taken for hundreds of years (most recently during the civil war) ownership of titled land is a measure of worth.  Evidence indicates that farmers are both willing to relocate over large distances to receive a piece of titled land, and are willing to pay an average of five times more than they would for untitled land.  Individual as well as communal tenure agreements will increase the supply of formal credit—land is ideal for collateral—and encourage long-term investment.[28],[29]

            With secure property rights must also come the creation and maintenance of a national Land Registry and Cadastre.  The Land Registry would record the ownership of all land in Guatemala, and be accessible at the national and regional levels.  This database will be used to assure the land titles are upheld, provide a means for land use planning, and reduce transaction costs of individuals purchasing land (as they would not have to travel to Guatemala City to purchase land.)[30],[31]

A trial project by the World Bank in Guatemala’s Petén region estimates the cost of rural land regularization at about $18 per hectare.  The estimated cost of the project in Petén only is $7.1 million, with an expectation to break even within 10 years.[32]  Given that Petén accounts for about 10% of the land in Guatemala, the total cost of the property rights aspect of the program is expected to be less than $70 million.

Another major benefit to the plan is the creation of land markets.  According to the rule of “inverse farm size productivity relationship,” farms are more efficient for many types of agricultural endeavors the smaller they are.  Small, privately owned farms provide a greater incentive to farmers to optimize both efficiency and quality.  As these farmers begin to prosper beyond basic sustenance, they will be able to bring their product to market.  The Puebla-Panama Plan could help the farm workers cooperatives gain access to markets. 

The goal of the Puebla-Panama Plan is to establish trade markets from Mexico down through Central America.  Suitable infrastructure to facilitate trade in these regions is one of the main focuses of the plan.  For this reason $3.4 billion dollars has been earmarked to repair stretches of highway and railroad, as well as electricity grids.  The other $600 million dollars is allocated to realize the other seven goals of the Puebla-Panama Plan:  “sustainable development, human development and education, prevention and mitigation of disasters, tourism, facilitation of commercial exchange, connecting the energy grids and integrating the telecommunications systems.”[33]  As a result of the Puebla-Panama Plan, the farm workers’ cooperatives will be able to establish themselves in markets in major cities throughout Mexico and Central America. 

In addition to the Puebla-Panama Plan, the Free Trade Area of the Americas is expected to begin negotiations this year.  The goal of these negotiations is to establish free trade between the United States and the five Central American countries.  U.S Trade Representative Robert Zoellick has stated that if the Free Trade Area of the Americas does not materialize, the United States “will go forward with those who are interested.”[34] This will help the farm workers cooperatives further integrate into the world’s markets, as they will gain access to the largest economy in North America.  In the United States, the cooperatives could gain access to higher prices by gaining the patronage of the Latino community and non-traditional sellers like Whole Foods and Trader Joes.  

The Puebla-Panama Plan and the Free Trade Area of the Americas, however, do have their opponents who fear that labor rights violations and environmental abuses will abound.  However, there are ways of enforcing fair labor practices for the farm workers in these cooperatives.  The dockworkers’ union is one such way.  Dockworkers could refuse to accept any shipment of goods that does not meet a fair labor practice standard.  As a result, the cooperatives will only remain viable as long as the farm workers have healthful working conditions and a livable salary.  Advocacy groups such as the Rigoberta Menchú Foundation could also put pressure on local governments to ensure that there are no labor rights violations in farm workers’ cooperatives.

The creation of land markets also has potential negative impacts.  The main drawback to the commoditization of land is that it favors those who already have equity.  Thus the main cost of the plan would be grants given to peasants or groups of peasants so that they could begin to acquire land.  The cooperatives can seek financial support from organizations such as the Japanese Bank for International Cooperation (JBIC).  This government institution’s aim is “the stable and autonomous development of the economies and societies of countries in the world and closer and stronger economic ties between Japan and the rest of the world.”[35]  The cooperative needs to remain autonomous in order to ensure that the workers will directly benefit from its operation.  In order for this to happen, the cooperatives must be able to produce, process, distribute and market their own goods.  In other words, the cooperative will need acres of land, a factory in which to process their goods, and solid infrastructure with which to distribute and market their products.  Training and health care are also necessary components of this venture if it is to succeed and provide the peasants with sustained prosperity. 

JBIC could provide the cooperatives with an Official Development Assistance (ODA) loan through their Overseas Economic Cooperation Operations.[36]  This financial assistance will provide the cooperatives with the money the need to have the proper infrastructure.  This will involve buying land, the necessary equipment to harvest and distribute the product, training and health care facilities.  This process is not one of high technology.  In the case of the banana industry, many indigenous people have harvested and processed bananas all of their lives.  Often, programs aimed at helping the poor peasants only affect one aspect of their lives.  For instance, appropriate technologies such as an improved chimney protect the eyesight of families.  However, the peasants are kept poor, as these programs do not make the peasants economically independent. 

Unlike these narrow programs, redistributing land to peasants and creating a cooperative among the peasants is a powerful way of increasing and sustaining their financial well-being.  The establishment of a national Land Registry, creation of secure property rights, and grants of money for poor farmers are necessary steps toward the elimination of poverty in Guatemala.  Placing the responsibilities of harvesting, processing, distributing and marketing in the hands of peasants will simultaneously break their cycle of hardship and strengthen their culture.  A cultivated sense of self-dependence will give them a stronger sense of pride and make them less vulnerable to the whims of big corporations.   

As I watched the sun set over the ancient city of Tikal, I was struck by the continuity of the legacy of the Mayan people.  Like the Ceiba tree who offers its wide branches as the home for other flora to thrive, the Mayan people have had a constant, constructive influence in the country of Guatemala.  They are strong and industrious, and if given the chance to be landowners, they could prosper, raise themselves out of poverty, and begin successful businesses. 

Bibliography

 

1.      “Guatemala.  Country Profile.”  Janet Matthews Information Services, Quest Economics Database.  Americas Review World of Information.  September 23, 2002.

2.      “Guatemala.”  CIA World Factbook 2002. 

3.      Hunt, Sewanee.  “Senselessness of U.S. Policy in Guatemala.”  Rocky Mountain News.  Denver, CO.  September 28, 2002.  Pg. 21B. 

4.      “Guatemala Protests Scheduled.  Guatemalan Peasants Block Highways to Demand Land Reform.”  EFE News Service.  August 21, 2002.

5.      “Fresh Del Monte Produce Inc.”  Disclosure Incorporated.  Feb 21, 2003.

6.      “Chiquita Brands International, Inc.”  Hoover's Company Profile Database - American Public Companies 2003.

7.      Gallagher, Mike and Cameron McWhirter.  “How ‘El Pulpo’ Became Chiquita Banana.”  The Cincinnati Enquirer.  May 3, 1998.

8.      Deininger, Klaus and Gershon Feder.  “Rural Development Note: Land Policy in Developing Countries” The World Bank.  July 1999.

9.      http://www.enjoyguatemala.com/tikal.htm

10. http://www.tikalpark.com/trees.htm

11. Pagiola, Stefano.  “Economic Analysis of Rural Land Administration Projects.”  World Bank.  June 1999.

12. Menchú, Rigoberta. I, Rigoberta Menchú, An Indian Woman in Guatemala. Ed. Elisabeth Burgos-Debray.  London: Verso, 1984.

13. Porteous, Shelley. “Indigenous People in Turmoil.” The Hamilton Spectator Oct.

2002: A3.

14. http://www.globalexchange.org/campaigns/mexico/slope/section3.html

15. http://flag.blackened.net/revolt/mexico/reports/chiapas_econ_99.html

16. http://flag.blackened.net/revolt/mexico/reports/back94.html

17. Braine, Theresa.  “Back on Track.” Latin Trade Dec. 2002.

18. http://jbic.maying.com/en/profile.php



[1] http://www.enjoyguatemala.com/tikal.htm

[2] http://www.tikalpark.com/trees.htm

[3] Deininger, Klaus and Gershon Feder.  “Rural Development Note: Land Policy in Developing Countries”

   The World Bank.  July 1999.

[4] “Guatemala.  Country Profile.”  Janet Matthews Information Services, Quest Economics Database.  Americas Review World of Information.  September 23, 2002.

[5] “Chiquita Brands International, Inc.”  Hoover's Company Profile Database - American Public Companies 2003.

[6] Janet Matthews Information Services, Quest Economics Database. 

[7] Gallagher, Mike and Cameron McWhirter.  “How ‘El Pulpo’ Became Chiquita Banana.”  The Cincinnati Enquirer.  May 3, 1998.

[8] “Chiquita Brands International, Inc.”  Hoover's Company Profile Database - American Public Companies 2003.

[9] Janet Matthews Information Services, Quest Economics Database. 

[10] Ibid.

[11] Menchú, Rigoberta, I, Rigoberta Menchú, An Indian Woman in Guatemala, ed. Elisabeth Burgos-Debray (London: Verso, 1984), 1.

[12] Ibid, xi.

[13] Ibid, xiii.

[14] Shelley Porteous, “Indigenous People in Turmoil.” The Hamilton Spectator Oct. 2002: A3.

[15] Janet Matthews Information Services, Quest Economics Database. 

[16] Ibid.

[17] “Guatemala.”  CIA World Factbook 2002. 

[18] Hoover's Company Profile Database - American Public Companies 2003.

[19] Gallagher and  McWhirter.

[20] “Fresh Del Monte Produce Inc.”  Disclosure Incorporated.  Feb 21, 2003.

[21] Sewanee Hunt,  “Senselessness of U.S. Policy in Guatemala.”  Rocky Mountain News.  28 September 2002, 21B. 

[22] http://www.globalexchange.org/campaigns/mexico/slope/section3.html.

[23] http://flag.blackened.net/revolt/mexico/reports/chiapas_econ_99.html.

[24] http://flag.blackened.net/revolt/mexico/reports/back94.html.

[25] Ibid.

[26] Ibid.

[27] “Guatemala Protests Scheduled.  Guatemalan Peasants Block Highways to Demand Land Reform.”  EFE News Service.  August 21, 2002.

[28] Pagiola, Stefano.  “Economic Analysis of Rural Land Administration Projects.”  World Bank.  June 1999.

[29] Deininger and Feder. 

[30] Pagiola.

[31] Deininger, and Feder.

[32] Pagiola.

[33] Theresa Braine, “Back on Track.” Latin Trade Dec. 2002.

[34] Ibid.

[35] http://jbic.maying.com/en/profile.php.

[36] Ibid.