Financial and Economic Policies: The question is in the air...

Economy Minister Juan Mauricio Wurmser mentioned among his "fronts" import tax reductions, the elimination of non tax barriers, negotiations with the North American Free Trade Agreements (NAFTA) and the G-3 Group (Mexico, Colombia and Venezuela), the eventual establishment of free trade zones and finally, modernization of the present legislation in order to make it compatible with the World Trade Organization (WTO).

We consider this something different to the answer he gave to the final questions, when he mentioned compromises with the Central American Common Market were inevitable, that the process of import tax reductions produces a negative effect, for the government, that he will " eliminate regulations and leave the Government away from productive activities and that we are in a taxation process. But we all were waiting to hear about a privatization policy and a clear determination to reach a subsidiary State in order to end with privileges which have created the mercantilist society in which we live now.

The president of the National Bank (Banguat, for its abbreviation in Spanish), Willy Zapata, offered his usual hopeful numbers of a stable economy, when bringing up indicators of the last five years, making clear that now, it is necessary to go through a growth process without falling into what happened in 1990: an inflation spiral. Nevertheless, we cannot see how he will be able to achieve interest rates reduction as the population is asking for in order to actually "grow". On the contrary, the Banguat competes in the money market every day , paying more than 20% interest rates, over the counter, harming savers from the national financial system, impeding the country's development and discouraging exporters.

Nonetheless, the Financial Minister, José Alejandro Arévalo, didn't tell us what the fiscal policy would be. He mentioned that he wants to change the retirement system but he didn't say when, which is fundamental for the country's growth. Hopefully, the only long term financial tool to develop the country will not stay only as ideas.

We all agree and know that the so called "financial bomb" sums 6,400 million quetzals, about 1,032 million dollars and we all know about new taxes negotiations through bonds that will not solve the problem but will just transfer it to the next government (with its interest to be paid). It is of general interest the need to sell Government properties, to eliminate monopolies, reduce public spending and eliminate import taxes, increase tax collection charging taxes evenly without privileges and follow the path that half of Latin America already crossed successfully.

To see what other countries have done and listen to the Economic Cabinet of the Government, which has the ability and knowledge, produced melancholy. If the basics and perspectives exist, to achieve the real change urgent to the county, why isn't it done, especially with a majority in Congress to promote the legislation Research Institutes have already recommended? Why not changing? Or is there no political will to face the challenge to solve the main problem and bring this county out of the crisis?

In conclusion we can say what we all commented at the end of the gathering: We heard good intentions, we applauded the initiatives, but we listened to more of the same, which will not bring the country out of the poverty it lives in, the violence culture it supports and privileges won't disappear, which means that we will lose the opportunity, if we do not catch the train that has already left.