Today's prevailing economic currents criticize, with increasing uniformity, the negative impact that monopolies and federal companies have had on the national economy.

In the case of Guatemala, this discussion is a current topic and, despite existing interest groups with considerable political clout who are not interested in demonopolization and privatization, the prevailing opinion is that monopolies should be eradicated and that federal companies like Guatel, Inde, and Fegua should be privatized.

Legally speaking, monopolies are supposedly forbidden by the Constitution, but lawmakers are far from setting a uniform criteria regarding the constitutionality of state monopolies. This is mainly due to our confusing juridical system.

This juridical uncertainty results from the fact that the Constitution contains rulings that are easily mis-interpreted according to need. For example, it recognizes the liberty of commerce and work, but it subsequently subjects it to the exceptions made by the law in case of social or national interest causes.

On the other hand, the prohibition of monopolies and privileges does not specify whether this also applies to federal companies.

The real essence of the problem is based on determining which are purely federal functions in which, for obvious reasons, the State may or must intervene, not functioning as a state but as a subsidiary aid, merely to complement private initiatives and activities.