National export plan for Guatemala : `Guatemala mil millones" -- final report

Since 1980, however, this protected market has collapsed as the result of economic deterioration in the politically unstable countries of Nicaragua and El Salvador. Guatemalan exports to Central America have declined by over 60%, or almost 3.5% of GDP. The plan outlined herein aims to refuel Guatemala"s economy by gradually reducing the anti-export bias inherited from several decades of import substitution. The plan - which is named Guatemala Mil Millones because it will enable Guatemala to reach $1 billion in nontraditional exports by 1995 - includes 45 specific recommendations. In the short term (1989-92), the plan calls for several programs to counteract the negative effects of current policies and economic institutions. These programs include special credit lines for exporters, effective and transparent duty-drawback and free-zone programs to ensure access of inputs at competitive prices and reduce costly bureaucratic procedures, and infrastructure improvements to facilitate transport and communication with world markets. In the medium (1993-96) and longer (1997-2000) terms, the plan emphasizes the importance of maintaining a stable, outward-oriented macroeconomic framework, including continued gradual reduction of effective protection rates.