This poverty assessment report has threemain objectives: 1) to conduct an in-depth, multi-dimensional analysis of poverty building on the framework ofthe World Bank's World Development Report (WDR) for2000/2001 using both quantitative and qualitative data; 2)to examine the impact of government policies and spending onthe poor in key sectors; and 3) to use the empiricalfindings to identify options and priorities for povertyreduction in the future. Policy options are outlined notonly in general, but for the specific themes and sectorscovered. Chapter 2 examines the poverty "problem"using an array of monetary and social indicators, as well asperceptions of poverty identified by Guatemalan communitiesand households themselves. In general, poverty is determinedby key household endowments and characteristics. These areanalyzed in Chapter 3. Yet historical forces and contextualfactors also play a crucial role in shaping patterns ofpoverty. These factors are discussed in Chapter 4. Chapter 5examines the relationship between poverty and economicgrowth in Guatemala from a "macro" perspective.Chapter 6 builds on this macro-economic context to furtherexamine the livelihoods and earnings opportunities of thepoor at the household level ("micro" perspective),with a focus on rural livelihoods. The poor also rely on aportfolio of assets in order to forge opportunity, includingeducation (Chapter 7), health (Chapter 8), basic utilityservices (Chapter 9), land and financial assets (Chapter 6),and access to transport (Chapter 10). Generally, the poorsuffer from an unequal distribution of these assets. Chapter11 provides an operational assessment of vulnerability,while Chapter 12 reviews existing social protection andsocial risk management mechanisms to assess their adequacyand offer insights into ways in which to strengthen them. Asdiscussed in Chapter 4, one of the key remaining challengesfor the Peace Agenda is the modernization of the state and astrengthening of community and social participation. Chapter13 also considers the role of other important actors indevelopment, namely the private sector, NGOs, and religiousorganizations. Finally, Chapter 14 builds on the empiricalfindings in the rest of the report to build an agenda forpoverty reduction in Guatemala. Broadly speaking, aconcerted strategy should be adopted to reduce poverty bybuilding opportunities and assets, reducing vulnerability,improving institutions and empowering communities.
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