Modernization: Changing the Role of the State

The government is committed to begin the integral reform of the State, starting with the Executive Branch. Federal organization and intervention will be governed by two basic principles: subsidiarity and solidarity.

The modernization and fortification of the State is conceived as the process by which its functions, its legal institutions, systems, policies and the federal apparatus of the Legislative, Executive, and Judicial branches are transformed, so that they wi ll be capable of maintaining the effectiveness of the Federal Law, of enforcing laws without privileges, of maintaining democracy, and of articulating society's interests.

The Program for the Modernization and Fortification of the Executive Branch (PMFOE, in Spanish), is the instrument that will be utilized by the Executive Branch for its modernization and fortification. The PMFOE is structured in three areas: 1) Functi ons of the Executive Branch - the new role of the State; 2) fringe laws; and 3) intervention policies and new forms of provision of services.

The word "dis-incorporation" is introduced to the Guatemalan lexicon by the new government, which defines it as the process by which the organs and functions of managerial nature are transferred to entities that operate according the to the regime of pri vate law. Various sectors are ready for this process, such as telecommunications, electricity, railroads, finance, ports and airports, the mail system, and tourism.

Fegua, one of the oldest federal companies, heads the transformation race. Sale of its stock will begin in May.

> According to CIEN, the issue is not just to privatize companies. Privatization is only one of the actions. The most important aspect is to change the legal framework, in order to guarantee competition in all of the sectors. Here, the most advanced cas es include electricity, telecommunications, airlines and social welfare.

Many countries in the world are moving in this direction. A challenge this big, requires efficient operative systems and resources, both human and financial. A State cannot be strong if it is weak financially. Thus, it is essential that the problem of the volatility of fiscal income be solved.

The role of the State must change, not just because it is fashionable, but because of principles. Today, modern means less State intervention. It means transforming a paternalistic State into a subsidiary, law-enforcing State. The change implies crea ting a State that is small, healthy, strong, and agile, towards a conscious, consequent, and participating society.

To achieve a shared vision, both by government structures and society in general, is probably the greatest short term goal for the modernizing agents. This can only be done with an effective communications system, to achieve change from the inside out.< p>