[{"bbox": [85, 154, 334, 187], "category": "Section-header", "text": "2 RATIONALE"}, {"bbox": [100, 221, 255, 247], "category": "Section-header", "text": "2.1 Context"}, {"bbox": [85, 265, 1145, 578], "category": "Text", "text": "Guatemala has a multi-party political system with important weaknesses. As a result, many political parties are built upon personalised interests and therefore, have short life spans. Political actors have increasingly gained control and influence over the judicial organs and the Constitutional Court after the closure of the International Commission against Impunity in Guatemala (CICIG) in 2019, and political and legal targeting of members of the judiciary linked to the CICIG work has continued. This has had a negative impact on the separation and balance of powers, and further undermined the democratic checks and balances. Guatemala held general elections this year for its president, vice president, congressional seats, and other governmental positions, including all 340 mayors. The first round of voting took place on 25 June 2023, and the second round of voting for the presidential and vice-presidential races is scheduled for 20 August 2023. These elections are crucial for Guatemala's fragile democracy and will take place in a context of deteriorating rule of law, where the institutions charged with overseeing the elections have little independence or credibility."}, {"bbox": [85, 605, 1146, 1004], "category": "Text", "text": "As regards human rights, the institutional framework has been weakened as the Government of Guatemala merged three key entities into a new Presidential Commission for Peace and Human Rights (COPADEH). Guatemala faces acute challenges upholding fundamental labour rights, notably freedom of association and the effective recognition of the right to collective bargaining (ILO Conventions 87 and 98) and the complete eradication of child labour. Social dialogue is carried out mainly through the National Tripartite Committee on Labour Relations and Freedom of Association. It has enhanced communication and exchanges between social actors; however, limited progress has been achieved on key issues, such as clearing up long-standing murder cases and other acts of anti-union violence and preventing such acts. As well as the adoption of legislative reforms, among other actions, the Government of Guatemala committed to a roadmap to complying with the aforementioned ILO Convention. Adverse impacts related to labour issues, such as working conditions, freedom of association, forced and child labour, attacks against human rights defenders, including trade unionists and deforestation, negatively affect the levels of trust among actors in the country, which leads to higher polarisation and an increase in conflicts. Therefore, continuing to promote social dialogue and building bridges between actors to foster trust is vital to improve the human rights situation in the country, including on RBC and social-environmental due diligence."}, {"bbox": [85, 1030, 1146, 1373], "category": "Text", "text": "The fight against corruption has deteriorated, the continued delay in the election of Supreme Court and Appeal Court's Magistrates has persisted and the criminalisation of judges, prosecutors, analysts and human rights defenders who demand justice and transparency has increased. Within the overall deterioration of human rights in the country, women and girls are particularly at risk. LGBTI rights are not recognised with even new legal initiatives detrimental to the cause. Indigenous groups constituting about half of the population continue to be subject to structural discrimination. Despite various recommendations made by the United Nations Convention-control organs as well as the Inter-American Human Rights system, Guatemala lacks effective legal mechanisms to comply with international standards and guarantee the right of indigenous peoples to be consulted on matters that affect them. The efforts of the Ministry of Energy and Mines to conduct \"reparation consultations\" seem not to adequately guarantee free, prior and informed consent. This is reflected in social interaction, and indirectly by government decisions to focus on providing social investments and key services in urban rather than rural areas, where the majority of the indigenous people live."}, {"bbox": [85, 1398, 1146, 1627], "category": "Text", "text": "According to the Staff Report for the 2023 Article IV consultation of the International Monetary Fund (IMF), the country should continue to build on the achievements made in economic policy. The Guatemalan economy continued to show resilience in 2022, with growth exceeding its potential. Macroeconomic and financial stability was preserved despite an unfavourable global context. Large remittance inflows and vibrant bank credit to the private sector have played an important role in sustaining solid private consumption. Besides, large levels of international reserves persist. Stability was also the result of prudent monetary and fiscal policies. Inflationary pressures in Guatemala continued, hence the need to further strengthen the operationalisation of the inflation targeting framework and ensure swift action to accelerate the implementation of the pro-growth structural agenda. Addressing gaps in infrastructure,"}, {"bbox": [1038, 1682, 1145, 1706], "category": "Page-footer", "text": "Page 6 of 39"}]