ABSTRACT
The signing of the accord on socioeconomic issues in early May 1996, after a year of difficult negotiations, raised expectations for some limited but important advances. The concrete expression of these high hopes came two weeks after the signing of the final peace accords in December 1996. From the perspective of 1999's stark realities, the idea that Guatemala might have served as an example of postconflict sustainable development appears somewhat absurd. The peace accords and the international enthusiasm they inspired provided a historic opportunity for change, but the magnitude of the obstacles is overwhelming. This chapter highlights the story of the tax (non)reform because it is paradigmatic: It reveals the systemic obstacles to change in Guatemala and the workings of a dysfunctional state. Tax reform has been one of the most difficult and hotly contested issues in Guatemala since the 1960s. Equally as significant as landlessness has been the continuing scarcity of decent jobs in both countryside and city.
