SOC300: Written Assignment: Comparing Factors that Lead to Underdevelopment

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Running head: Comparing Factors that Lead to Underdevelopment

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Comparing Factors that Lead to Underdevelopment

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Comparing Factors that Lead to Underdevelopment

Guatemala and Panama

By Student M.B.D.

SOC300 Sociology of Developing Countries

Professor Gwendolyn Royal-Smith

December 5, 2018

Comparing Factors that Lead to Underdevelopment - Guatemala and Panama

In this paper, I will discuss issues associated with the developing countries of Guatemala and Panama. Our text defines under-developed countries as a country’s gross national income (GNP) per capita, the measurement for whether a country is low-income, middle-income or high-income. Guatemala’s gross national income (GNP) per capita is $3,340 which makes is a lower-middle income economy and Panama’s (GNP) is $10,700 which makes it an upper-middle economy (Soomo Webtext p. 1.2). Some of my family members live in Panama, and I have visited the country several times. In visiting my relatives, I experienced the challenges of living in a poorly constructed house (more like a small shack), in the countryside with limited running water, electricity and common comforts from home that I took for granted. For this assignment, I am interested in learning more about specific characteristics that these two developing countries share as well as their differences. I chose factors related to a) geography, b) governmental corruption, c) internal or external conflicts, d) ethnic, racial or tribal disparities and, e) lack or misuse of natural resources.

Geography

Panama and Guatemala are in Central America and share similar geography. Both countries are tropical with hot humid climates, and both have the lowest point of 0 meters sea level at the Pacific Ocean up to 3,475 to 4,220 meters at the highest points of their mountains (World Factbook). The two countries are mostly steep rugged mountain areas and countryside which split the countries into hot humid lowlands and cooler highlands. Over half the population in both countries reside in urban areas while the remaining population is made of up indigenous people living in the mountains and countryside. Urbanization in Guatemala is 51.1% and in Panama is 67.7% according to the World Factbook and infrastructure is lacking in the sparsely inhabited regions where the indigenous people live. The poverty rate among the indigenous people in Guatemala is 73% (Erichsen, 2018) and over 95% of the indigenous in Panama fall below the poverty line, while 86% live in extreme poverty according to the World Bank. Poverty plays a major role in the inability of the poor to provide even the most basic needs for their children including food, healthcare, education. The geographies of both countries are significant contributors to poverty because the indigenous people are more likely to live in the mountains and countryside regions which lack physical infrastructures including roads, bridges, highways. The inaccessibility of construction equipment, utilities and building materials hampers the ability of communities to connect with each other and to create nearby school districts, medical centers, as well as grocery stores and other markets.

Lack or misuse of natural resources

Guatemala’s natural resources include petroleum, nickel, rare woods, fish, chicle and hydropower while Panama’s include copper, mahogany, shrimp and hydropower according to the World Factbook. Panama has the additional resource which is the Panama Canal which was constructed from 1904 to 1914 as a way for boats to travel from the Atlantic to the Pacific Oceans and saved boats about 8,000 miles from traveling around South America (Rosenberg, 2018, June 14). Initially, the United States owned about 50 miles of the isthmus at the Canal, however, the country did not benefit from that income as the area was inhabited and maintained by Americans. Friction between these groups developed (which led to anti-American riots in the 1960’s), prompting President Jimmy Carter to sign a treaty returning 60% of the land back to the country. In both countries, natural resources are gaining more importance and traction in developing and growing the economies.

In recent years, Guatemala’s revenues in mining has increased from $4 million in 2009 to $5.6 million in 2010 (Thomas, 2012). The issue has arisen regarding the safety of the mining industry in the indigenous areas which has caused a conflict between the communities concerned about pollution to their water and damage to land and the mining industry. The continuation of problems in mining regulation has triggered government revisions of mining laws in response to frequent complaints (Thomas, 2012).

In Panama, the growing interest in hydropower has resulted in human rights violations against the indigenous people. In the process of building these hydropower projects, the government has allowed authoritarianism in the cases where the military police infiltrate the tribes and enter their land and private areas to protect the equipment being used for hydropower (Finley-Brook, 2011). The balance between using the resources to benefit the economy while benefitting all people and not just those in the urbanized areas is the issue here. While natural resources are beginning to benefit the countries, the indigenous populations continue to suffer because they are not likely to gain from the monies gained by sales and disposition of these resources.

Governmental Corruption

Guatemala’s political system is a constitutional democracy with a President and Vice President, (both elected for single 4-year terms), presiding over 22 departments with a civil law system and a constitution (https://www.cia.gov/library/publications/the-world-factbook/geos/gt.html). Panama is a democratic republic with a multi-party system. Panama’s President is both the head of state and the head of government presiding over 10 provinces with a constitution. Guatemala has the National Army of Guatemala and the Air Force made up mostly of volunteers. Panama abolished their military in February of 1990 and does not have regular military forces, therefore, their public security consists of the National Police, Air Naval Service and Border Services. While it appears that the structure for government is like that of the United States (functioning with checks and balances), it does not stop the potential for government corruption. Guatemala is a major transit country for cocaine and heroin which results in money laundering running rampant and corruption. The profits from the sale, production and distribution has led to untold sums of money coming into the country. Government leaders (aware of illicit drug trades), are paid off to allow these activities to continue at the expense of the people. The same can be said about Panama which is also receives major cocaine shipments into the country resulting in money laundering and official corruption (World Factbook). Because both countries are in Central America, they are a midpoint between the drug producers and the way to the US via Mexico. If this corruption is allowed to continue unchecked, it will continue to contribute to the underdevelopment of the country as investments in infrastructure, security and safety for the people become second to profits for drugs.

Internal or External Conflicts

The most significant conflict I found both countries shared are the displacement of indigenous people. The large indigenous population in Guatemala is poor and has the highest fertility rate. In Guatemala, it is estimated that 242,000 were displaced from decades of internal conflict which impacted the Maya population. More details about the genocide that took place in Guatemala will be explained later in the tribal disparities. In Panama, the indigenous population account for a growing share of the poor and extreme poor. As mentioned previously, the growing interest in hydropower has resulted in human rights violations against the indigenous people of Panama. In addition to the authoritarianism, the government allowed spatial control where tribes were relocated without consent to access the areas needed for the hydropower. This often resulted in violence towards the tribe’s people who resisted such intrusions (Finley-Brook, 2011). Displacement also impacted families and access to food and forced restructuring of their villages and homes. As mentioned previously, both countries also bear the burden of drug trafficking due to the proximity between the producers in neighboring countries and Mexico which results in corruption, money laundering and potential violence which is a detriment to progress and development.

Ethnic, racial or tribal disparities

As mentioned, the indigenous people make up a significant portion of the extreme poor in these countries. In the rural areas where they reside, they have very limited access to clean water which impacts 13.2% of the rural population in Guatemala and 11.4% of the rural population in Panama according to the World Factbook. In addition to lack of infrastructure, these tribes lack the ability to communicate with the remaining population as many do not speak Spanish. Guatemala recognizes 23 languages and most of them are Mayan dialects (Erichsen, 2018, October 19). The genocide against the Mayans took place in Guatemala from 1982 – 1983 as the military at the time targeted the people and even the children, specifically to wipe out people who did not fit the mold the government was seeking (Schauwecker, 2018). While the severity of this racism does not exist today, the continued lack of infrastructure and development in the areas populated by indigenous people continues. As mentioned previously, human rights violations continue today in Panama as well with the focus on hydropower and infiltrating indigenous areas for profit with no concern for the impact on those people.

Summary

In conclusion, Guatemala and Panama are seeing a steady rise with their economies benefitting from natural resources and a mostly stable government system that has built infrastructure for the urbanized areas. The issue appears to mostly impact the poverty in outlying areas that have not been attended to. I know from personal experience, that the people in the countryside of Panama work very hard to maintain their families in hutches built by hand with limited clean water access and self-sustained by food they farm and raise. A solid plan to develop infrastructure, provide jobs, reduce crime with more controls on the drug trafficking and money laundering as well as providing more access to the outlying areas would benefit both countries in the long run.

References

Erichsen, Gerald. (2018, October 19). Facts About Guatemala. Retrieved from https://www.thoughtco.com/facts-about-guatemala-3079147

Finley-Brook, M., & Thomas, C. (2011). Renewable Energy and Human Rights Violations: Illustrative Cases from Indigenous Territories in Panama. Annals of the Association of American Geographers101(4), 863–872. https://doi.org/10.1080/00045608.2011.568873

Guatemala World Factbook retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/gt.html

Panama World Factbook retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html

Rosenberg, Matt. (2018, June 14). Panama Canal. Retrieved from https://www.thoughtco.com/panama-canal-overview-1435562

Schauwecker, Lacey M... (2018). “You Could See Rage”: Visual Testimony in Post-Genocide Guatemala. Genocide Studies and Prevention: An International Journal, Vol 12, Iss 2, Pp 18-34 (2018), (2), 18. https://doi.org/10.5038/1911-9933.12.2.1529

Soomo, Understanding Development, 4e [Webtext]. (Asheville, NC: Soomo Publishing, 2013).

Thomas, G.P. (2012, August 14). Guatemala: Mining, Minerals and Fuel Resources. Retrieved from https://www.azomining.com/Article.aspx?ArticleID=79

World Bank. 2009. Guatemala - Poverty assessment: good performance at low levels (English). Washington, DC: World Bank. http://documents.worldbank.org/curated/en/803331468254934801/Guatemala-Poverty-assessment-good-performance-at-low-levels

World Bank. 2009. Panama - Poverty assessment: Priorities and Strategies for Poverty Reduction. Washington, DC: World Bank. http://go.worldbank.org/G48WWJ8YB0