Summary:

The current IT situation in Guatemala is bleak. Much if the available information is grossly outdated, and some simply have no information. “Sometimes the lack of information, IS information.” Prof. Carmel. This quote helps to explain the situation in Guatemala very well. The impetus for change has simply not occurred yet. The government, wealthy, and higher educated people in Guatemala are the elite. These are the people with power and influence to create change and also the people with the most to lose.

Strengths:
Large population provides a potential wealth of workers.
Lack of out-dated infrastructure, reduces abandonment cost of adopting new technologies.
Location between North and South America is a good position to reach both continents.
Privatization of phone network will help improve service and ultimately put costs at a “natural” level.

Weaknesses:
Lack of education of the general population.
Unequal distribution of wealth, power and information.
Lack of enforcement of legal issues.
Lack of interest from government.
Lack of confidence from business and foreign investors.

There are numerous obstacles facing Guatemala in the development of an IT presence.

General Overview
Guatemala possesses very diverse eco-systems, but its natural resources are severely stressed due to population pressures.
Current Issues
Key current environmental issues in Guatemala include the following:
• Deforestation
• Soil erosion
• Water pollution
• Limited sewage disposal facilities
• Decimation of bio-diversity
• Health problems in human populations
• Over-use of certain pesticides
Natural Hazards
Major natural hazards in Guatemala include the threat of volcanic activity, due to the numerous volcanoes in mountains with frequent violent earthquakes, and the threat of hurricanes and other tropical storms on the Caribbean coast.

Summary of IT situation

The lack of IT policies, either preventative or supportive, will be another hurdle that needs faced. Currently, the governmental process is still in the early development stages after a long and bloody civil war. Stabilization must take place before the government can take an active part in supporting IT policy.

The lack of infrastructure and recent privatization of telecommunications are determents to starting IT in Guatemala, though they may be developed into advantages if the proper action is taken. The privatization will increase competition, lower prices, and increase service. The lack of infrastructure means that Guatemala will not have to abandon systems that are already in place. It could start fresh with the latest technology available if they can get their act together.

Due to its status as a developing nation, computing and internet diffusion and Domestic Production are very low. Being a primarily agrarian economy Electronic commerce and ICT use by businesses is minimal. Though to reach new markets and take advantage of world markets, I suspect these areas will develop very rapidly.

One of their greatest obstacles is the lack of an educated workforce. With almost 50% of the population illiterate, a huge portion of those that are literate have the equivalent of a 5th grade education in the US.

While there is great potential for financing opportunities, these capital resource have not presented themselves from government, internal nor external investment. Due to the downturn in the economy, few external investors are willing to take the risks associated with a developing nation in an untried field.

The e-gov and legal environment are unfortunately somewhat typical for a developing nation. The Guatemalan government has yet to come into the 20th century let alone the 21st. Legally, they are signatories to several significant WTO treaties, though enforcement will remain to be seen. Piracy rates remain very high and even basic crimes often go unpunished.