1. Alleviating Poverty: Land Conflict in Guatemala
Laura Cash David Lefebvre Jason Liu Shelina Merchant Julie Vaeth
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2. Agenda
Root cause of Guatemalan poverty: Land
Mercy Corps overview
Integrated approach to resolving land conflict
Financing and efficiency
Key conclusions

3. Poverty Unequal Land Distribution Unequal Wealth Distribution
Lack of Health and Education
Poverty

4. Guatemala Land History
1523: Spanish Conquest
1952: Agrarian Reform Law
1954: U.S. CIA-orchestrated coup to oust Arbenz
: Guatemalan Civil War
1996: Peace Accords signed

5. Guatemala Land History
1523: Spanish Conquest
1952: Agrarian Reform Law
1954: U.S. CIA-orchestrated coup to oust Arbenz
: Guatemalan Civil War
1996: Peace Accords signed

6. Guatemala Land History
1523: Spanish Conquest
1952: Agrarian Reform Law
1954: U.S. CIA-orchestrated coup to oust Arbenz
: Guatemalan Civil War
1996: Peace Accords signed

7. Guatemala Land History
1523: Spanish Conquest
1952: Agrarian Reform Law
1954: U.S. CIA-orchestrated coup to oust Arbenz
: Guatemalan Civil War
1996: Peace Accords signed

8. Guatemala Land History
1523: Spanish Conquest
1952: Agrarian Reform Law
1954: U.S. CIA-orchestrated coup to oust Arbenz
: Guatemalan Civil War
1996: Peace Accords signed

9. 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

10. 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

11. “You must be the change you wish to see in the world.”
Mercy Corps
“You must be the change you wish to see in the world.”
-Mahatma Gandhi

12. Mercy Corps: A Broad Overview
Founded in 1979
Provided $1.3 billion in assistance to people in
100 nations
Focus on transitioning countries
2007 Nobel Peace Prize Candidate
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13. Mission & Strategy Mission
Mercy Corps exists to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities.
Strategic Approach
Enable community-led and market-driven recovery
Discover social innovations
3. Inspire others to engage in global challenges

14. Projects in Guatemala TIERRAS - Integrated Land Conflict Mediation
Improving health systems in rural areas
Engaging youth in HIV/AIDS awareness
Investing in local capacity
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15. community-driven recovery
Strategy in Action in Guatemala
ENABLE
community-driven recovery
DISCOVER
social innovations
INSPIRE
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16. Mercy Corp’s Land Strategy in Guatemala

17. 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

18. 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
“The process was just because it defended our dignity as a people.”
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19. “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

20. Relationship Between Farmers and Markets
Little knowledge sharing and low returns on goods
middlemen
Access to new markeys, knwoeldge sharing, high value goods
Low value added products

21. Relationship With Mercy Corps
Farmers
Markets
Greater knowledge sharing
Access to new, larger markets
Mercy Corps
NGOs
Corporations
Governments
Access to new markeys, knwoeldge sharing, high value goods
Financing:"agricultural and economic assistance contributes to sustainability by ensuring families improve their livelihoods and can pay for their land, to prevent evictions and renewed conflicts."
High value added products that are in demand
Sustainable income for generations

22. The Social Enterprise Spectrum
Purely Commercial
Purely Philanthropic
Mercy Corps

23. Social Enterprise Spectrum
Philanthropic
Commercial
Workforce: Volunteers
Primary Beneficiaries:
Not required to pay
Suppliers: In-Kind Donations
Capital Sources: Donations/ Grants
Workforce: Paid Employees
Paying customers

24. Mercy Corps Expense Breakdown

25. 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

26. Comparison Shows: Mercy Corps is More Efficient

27. Be the change

28. Questions?
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