For Guatemalan businessmen, in order to have solid institutions in the country, aspects of the electoral system, civil service, justice sector and public expenditure must be modernized, strengthened and regulated.
On October 10, the National Meeting of Businessmen for Development (ENADE 2019) was held, which dealt with the theme "From a Liquid State to a Solid State."
For Moody's, the withdrawal of the International Commission against Impunity weakens efforts to improve the rule of law in a country with high levels of corruption.
For Moody's, President Morales' decision to end the mandate of the International Commission against Impunity in Guatemala (CICIG) is a setback for the country because corruption is still widespread and institutions are still fragile.
With the resignation of Pérez Molina and Alejandro Maldonado sworn in as president, the institutional crisis should moderate in its intensity.
From a statement by AmCham Guatemala:
After several months of political uncertainty in Guatemala it has been demonstrated that nobody is above the law and that the country's institutions are able to perform their job.
If Central America does not strengthen the institutions that ensure a stable legal framework and full respect for contracts, foreign investment will not come and national investment will go to other countries, no matter how many incentives and tax exemptions are offered.
EDITORIAL
The frequent displays of discontent for the Salvadoran Executive Branch in respect to rulings issued by the Constitutional Court and the inaction of the Panamanian government over blockades by a group of people are holding not only over the hydroelectric project Barro Blanco, but also the main access roads, are appalling signals sent from the region to the world, casting doubt on those companies who consider the region to be a potential investment destination.
The Otto Perez Molina administration appears to be disintegrating in time with the successive dismantling of networks of entrenched corruption at the highest level, jeopardizing the country's basic institutions.
EDITORIAL
There are very few occasions when political parties with different ideologies and civil groups with dissimilar origins in Latin America have teamed up to denounce the same cause, as is currently happening in Guatemala.
Although Central American countries have big problems that impair their image abroad, it is sometimes the small episodes that stand out as unacceptable when viewed from abroad by modern society.
EDITORIAL
Many politicians would have the people they lead believe that the main function of the state is welfarism, when the road to prosperity and social justice begins with the proper functioning of the judiciary and will of the state to enforce the law. If the State complies properly with these primary functions, development is protected from the fickleness of any bad leaders, and formation of a culture of justice and respect for the rules, which is essential to human progress, is assured.
Growing institutional weakness in several countries of the isthmus brings to the forefront the responsibility of the business sector to keep the economy of this region moving forward.
EDITORIAL
Currently, the governments of several Central American countries are showing signs of weaknesses which - to different degrees- point to a sharp decline in institutional quality.
Employers in the region are complaining about a lack of long-term development policies, and are asking for Government transparency, effectiveness and legal certainty, so that they can continue investing in the region.
During a meeting between businessmen and government called 'Expanding opportunities: promoting the private sector and job creation', entrepreneurs from different sectors shared their concerns and views on the investment climate in the region.
El Salvador's foreign minister, Marisol Argueta, said the region has worked hard to strengthen its institutions and has made three important achievements.
It has adopted a protocol of reforms to the treaty of the Central American Parlament, Parlacen, with which opportunities have been broadened.
As well it has boadened Parlacen's powers to propose legislation at the level of Central American integration, and proposals to homogenize standards.
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