Alleviating Poverty: Land Conflict in Guatemala

Laura CashDavid Lefebvre

Jason LiuShelina Merchant

Julie Vaeth

Be the change

Agenda Root cause of Guatemalan poverty:

Land Mercy Corps overview Integrated approach to resolving land

conflict Financing and efficiency Key conclusions

Unequal Wealth

Distribution

Unequal Land

Distribution

Lack of Health

and Education Povert

y

1523: Spanish Conquest

1954: U.S. CIA-orchestrated coup

to oust Arbenz1996: Peace

Accords signed

Guatemala Land History

1523: Spanish Conquest

1954: U.S. CIA-orchestrated coup

to oust Arbenz1996: Peace

Accords signed

Guatemala Land History

1523: Spanish Conquest

1954: U.S. CIA-orchestrated coup

to oust Arbenz1996: Peace

Accords signed

Guatemala Land History

1523: Spanish Conquest

1954: U.S. CIA-orchestrated coup

to oust Arbenz1996: Peace

Accords signed

Guatemala Land History

1523: Spanish Conquest

1954: U.S. CIA-orchestrated coup

to oust Arbenz1996: Peace

Accords signed

Guatemala Land History

Hernando De Soto’s Thesis

Developing countries lack a formal property system

It’s impossible for the poor to leverage informal land ownership into capital As a result, farmers

remain trapped in subsistence agriculture

Does Guatemala Fit Into This Thesis? Guatemala is currently

the only country in Central America that lacks a national property registry Over 50% of Guatemalan

landholdings are not currently registered

77% of rural farmers engage in subsistence agriculture

“You must be the change you wish to see in the

world.”-Mahatma Gandhi

Mercy Corps

Mercy Corps: A Broad Overview

Founded in 1979 Provided $1.3 billion

in assistance to people in100 nations

Focus on transitioning countries

2007 Nobel Peace Prize Candidate

Mission Mercy Corps exists to alleviate suffering,

poverty and oppression by helping people build secure, productive and just communities.

Strategic Approach1. Enable community-led and market-driven

recovery2. Discover social innovations3. Inspire others to engage in global

challenges

Mission & Strategy

Projects in Guatemala

TIERRAS - Integrated Land Conflict Mediation

Improving health systems in rural areas

Engaging youth in HIV/AIDS awareness

Investing in local capacity

Strategy in Action in Guatemala

ENABLEcommunity-driven recovery

DISCOVERsocial innovations

INSPIRE

Mercy Corp’s Land Strategy in Guatemala

Previous Situation in Guatemala•Undefined property rights

•Farmers cultivate on this land

•Unequal legal battles that are won by landlords

•Farmers get expelled

•Resentment from both sides

•An unsustainable, violent Guatemala

Situation with Mercy Corps•Bring all the parties to the negotiation table

•Mercy Corps serves as an impartial mediator

•A definitive agreement with definition of property

•Provide financing for the agreement

•Done in a peaceful way to limit resentment

MercyCorps

“The process was just because it defended our dignity as a people.”

“Rather than viewing the poor primarily as consumers, an alternative approach is to focus on the poor as producers and to emphasize buying from the poor. The only way to alleviate poverty is to raise the real income of the poor.”

-Aneel Karnani

Relationship Between Farmers and Markets

Farmers

Markets

middlemen

Little knowledge sharing and low returns on goods

Low value added products

Relationship With Mercy Corps

Farmers

Markets

Mercy CorpsNGOs

Greater knowledge sharingAccess to new, larger markets

High value added products that are in demand

Sustainable income for generations

CorporationsGovernments

The Social Enterprise Spectrum

Purely Philanthropic

Purely Commercial

MERCY CORPS

Social Enterprise Spectrum

Philanthropic Commercial

Mercy Corps Expense Breakdown

88%

7%5%

Program Expenses

Administrative Expenses

Fundraising Expenses

For every 4 cents spent on fundraising,Mercy Corps receives $1 in funds.

Every $1 raised can provide $20.89 in food

and other critical supplies

Comparison Shows:Mercy Corps is More Efficient

Progra

m Expe

nses

Admini

strati

ve Ex

pense

s

Fund

raisin

g Exp

enses

0%20%40%60%80%

100%

Agros In-ternational

Mercy Corps

% o

f Tot

al E

xpen

ses

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