GREAT OPPORTUNITY OR IMPOSSIBLE SITUATION?

“We are all faced with a series of great opportunities brilliantly disguised as impossible situations”

                                                                                                           - Charles R Swindoll

This is the second of a two-part blog examining the education system in Guatemala. In this part I intend to explore what ensues for those fortunate enough to complete a secondary and tertiary education and the disparity between the cost of a tertiary education in Guatemala and the earning potential in Guatemala. Additionally, I wish to examine the opportunities for those without a tertiary education in Guatemala. Finally, I wish to observe the start-up costs of new business in Guatemala and the potential for entrepreneurship as a career path for those interested in self-employment.

A few things you need to know

• The Guatemalan currency is called the Quetzal (Q), for reference:

Ø      NZ$1 = 6Q

Ø      US$1 = 8Q

Ø      AU$1 = 8Q

• In Guatemala the qualification system is similar to New Zealand, however, the time to obtain each qualification is slightly different:

Ø      A Licenciatura is normally gained after 5 years of study and is more or less equivalent to a Bachelors degree in New Zealand.

Ø      A Maestrado is awarded after a further 1 or 2 years of study and submission of a thesis. A Maestrado is equivavlent to a Masters degree in New Zealand

Ø      A Doctorado is awarded after a further 2 years of study and submission of a thesis. A Doctorado is equivalent to a PhD in New Zealand.

• The cost of living in Guatemala is low, but to put things in perspective with respect to the wages that are quoted in the blog, I live in a share-house with basic facilities and eat very modestly. This costs me 2000Q-2500Q per month. To rent a basic but private one-bedroom apartment and eat modestly would cost in the vicinity of 3500Q per month.

Value for money?

The variation in fees for the 12 major Universities in Guatemala is enormous. The cost starts at a nominal 99Q per annum at the largest public University in Guatemala – Universidad de San Carlos de Guatemala. The cost increases significantly for private Universities. For the most prestigious Universities in the country (e.g. Universidad Fransisco Marroquin) fees are in the range of 5000Q per month or 60000Q per annum.  In both cases, these fees are solely for tuition; textbooks and extra-curricular tutoring and activities are additional to this. The huge difference in cost between private and public Universities doesn’t necessarily reflect the quality of the education, but rather, graduates of more prestigious private Universities are often more highly considered for the most prestigious and well-paying jobs.

One of the crucial issues is not how much a tertiary education in Guatemala costs, but instead, what undertaking said tertiary education gives you the ability to gain in the future. In 2008, a study was completed by the Inter-American Development Bank with a view to reporting on the disparity in wages across gender and ethnicity. It is the most comprehensive study comparing various demographics in Guatemala and their earning potential. From this study a number of realisations can be made.

The average salary in Guatemala for a male holding a Licenciatura degree or higher is 5013Q per month. For a female holding a Licenciatura degree or higher the average salary drops significantly to 3225Q per month. Only with this information is it possible to understand why so many well educated, young people live in their family home with their parents, perhaps their children and other siblings until well into their 30’s. The equation is simply impossible. Subtract the repayment of the significant debt incurred gaining an education at Universidad Fransisco Marroquin and there just isn’t enough money to afford a basic independent living arrangement as described above. The alternative of course is the almost desperation to emigrate to greener pastures (most commonly to the United States of America). For example, in the United States, as a result of immigration of people predominantly from the northern countries in Latin America, one-eighth of the US population speak Spanish in their homes and the US has the second-largest Spanish-speaking population in the world – 33.7 million people.

We don’t need no education

The aptitude examinations to gain entrance to any of the Universities are very stringent. Those that fail to gain acceptance to University, and the large number of primary and secondary-school leavers (as discussed in part one of this blog) face different but significant difficulties also. Generally speaking, opportunities for well-paid jobs in Guatemala are few, but lack of qualifications (tertiary or secondary-school) limits opportunities further.

One of the most common forms of employment for those not holding a tertiary qualification is agriculture. Approximately 50% of the population in Guatemala are employed at some level in this sector. The work here is hard and long. It is not uncommon to hear of 12-hour days in a climate that can only be described as an endless summer – 25-30 °C everyday, and moreover, excruciatingly humid for 6-9 months of the year. The Inter-American Development Bank places average salaries for the rural sector at 1170Q per month for males and 854Q per month for females.

In urban areas unqualified males may expect a salary of 2115Q per month and females 1650Q per month. Although the cost of living in Guatemala is relatively low, at this level of remuneration it is very difficult to maintain even a poor-to-middle standard of living, and there is certainly no room for luxuries.

Take a career path or make a career path?

There is another significant employment opportunity in Guatemala that is just starting to emerge – technology-based business. An interesting article in the New York Times on 16^th November 2011 details a revival of a previously defunct part of Guatemala City – Guatemala’s answer to Silicon Valley. Still in its infancy, Campus Tecnológico aims to attract the best entrepreneurial talent that Guatemala has to offer – the “hip, savvy, successful and young”. With numerous start-ups already populating Campus Tec and some 375 employees across these businesses, it is off to a positive start and for good reason. The cost of starting a business in Guatemala is US$7569 and with such close proximity to the United States there are certainly many positive aspects.

However, there are risks. Political corruption, violence and a relatively unstable economy could easily trigger an exodus of investment in comparable ventures to those already operating at Campus Tec. The optimism of the developers is admirable given the risks of setting-up businesses in Guatemala, particularly when foreign investment is required. Personally, however, I feel that it is a risk worth taking, and those in a position to accept the burden of that risk can be rewarded handsomely in the future. In doing so, improving the general economic environment and creating new employment opportunities for the people of Guatemala.

Good things take time

It seems that the majority of the money in circulation right now is in the hands of a select few. The masses are left with the dregs – as evidence by the severe levels of poverty. It is hard to balance the income vs. expense equation for many people. But, numerous forces are at play in this equation and with just a little better alignment I feel that Guatemala can turn the corner. Young people gaining an education, grasping opportunities and making good sound decisions; savvy entrepreneurs taking on the world’s best; a gradual improvement in working and living conditions in rural areas. These are the things that will help turn that corner.

Guatemala is a great opportunity brilliantly disguised as an impossible situation. The opportunity will be realised, it will just take time. Good things take time.

You can read the first part of this blog here:

http://meditacionesdelmomento.blogspot.com/2011/12/if-you-think-in-terms-of-year-plant.html

And if interested, the NY Times article is here:

http://www.nytimes.com/2011/11/17/world/americas/a-silicon-valley-dream-grows-in-guatemala-city.html?_r=2

And the Inter-American Development Bank working paper where many of the wage figures were drawn from here:

http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1535077

IF YOU THINK IN TERMS OF A YEAR, PLANT A SEED; IF IN TERMS OF TEN YEARS, PLANT TREES; IF IN TERMS OF 100 YEARS, TEACH THE PEOPLE

"If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people."

                                                           - Confucius (BC 551-BC 479) Chinese philosopher.

This is the first of a two-part blog examining the education system in Guatemala. In the first part I wish to give a general overview of the education system, illustrate the accessibility to and demographic disparities regarding education in Guatemala, and discuss the results of the relatively poor education level of the Guatemalan population. The second of the two-parts intends to explore what ensues for those fortunate enough to complete a secondary and tertiary education and the disparity between the cost of a tertiary education in Guatemala and the earning potential in Guatemala.

Not off to a great start…

The government of Guatemala requires that all children must attend school for a minimum of 6 years – primary school. There are a number of government-funded schools across the country that provide the compulsory, free education that is stipulated. Unfortunately for a number of reasons the reality of the situation is that, while the education is free, the cost of uniforms, books and transport to and from school is beyond the means of many families. The net result is that, in Guatemala, (although some children may actually attend school for longer than 5 years) less than 70% of children starting school in grade/year 1 will achieve completion of grade/year 5.

…And the statistics only get worse

Of the secondary school-aged population in Guatemala only 35% will be enrolled to begin their secondary school education. 8.5% of the tertiary-aged population will enrol to further their education in a University or a tertiary education institute. Exact figures are difficult to find but it is estimated that only ~2% of the tertiary-aged population will continue these studies and graduate with a bachelor’s degree (equivalent or higher).

The most vulnerable demographics

The education levels between the indigenous peoples and non-indigenous peoples in Latin America are noticeably different, however, nowhere more so than in Guatemala. In the adult population of Guatemala, the indigenous (Mayan) people have, on average, half the number of years of education as the non-indigenous (Ladino) people – 2.5 years cf. 5.7 years. In the younger demographic the margin is lessening but is still very significant. The school completion rate for indigenous girls is half that of non-indigenous girls and approximately a third that of all boys.

There are also significant gender disparities. Across all cultural groups, female students are the most likely to withdraw from school prematurely. Often the female students are considered more valuable as home-makers; cleaning the family house and caring for younger siblings. Studies have found there is a direct correlation between having a new-born baby in the family and the termination of the education of an (older) daughter living in the parental home. Another study concerning the education system of Guatemala noted, in 2007, that: “parental concerns over allowing adolescent girls to mix with boys overwhelm other reasons for keeping girls at home”. These concerns probably stem from another major issue here; the extremely high fertility rate in Guatemala.

As you would expect the impoverished also suffer heavily. Often those living in severe poverty are the less educated population and thus in many cases the parents don’t understand the value of a high school and tertiary education for their children. Frequently the parents will allow or even encourage their children to leave school to work in similarly low-skilled and poorly-paid jobs as they themselves hold. Furthermore, by definition these families can barely cover the costs of living; let alone the burden of school uniforms, books, transport etc. Sadly for many children that fall into this demographic, school is simply not a reality.

The cost to the country

The illiteracy rate of Guatemala sits significantly below the majority of Latin America with a meagre 69.1% of people over the age of 15 literate. This is a major contributing factor to the incredibly high poverty rate (greater than 50% of the population live in poverty) as a vast percentage of the population simply don’t have the fundamental basics of reading and writing. Consequently, many people are forced into low-skilled and poorly-paid employment. This lack of basic education costs the country dearly in terms of GDP. A study in 2008 suggested that, as a direct result of premature secondary school leaving, the benefit to society forgone annually is 58.8% of GDP.

When considering the GDP per person of Guatemala, the education level is severely disproportionate. Aside from Haiti, Guatemala performs the worst in nearly every education statistic when compared to the remainder of Latin America regardless of GDP or other prosperity indexes.

Tomorrow belongs to the people who prepare for it today

While many of the statistics discussed above are alarming it should be noted that they are significantly better now than 20, 10 even 5 years ago. Guatemala is improving slowly with gradual advances in education level and quality. Much of this improvement is on the back of foreign-aid and the tireless work of non-governmental organisations. It is my belief that although the Guatemalan government is currently investing very little money in the education system there will be a time in the near future where they will have no option. As the population generally becomes more educated they will demand stronger emphasis on education and greater investment in education by the Government.

Guatemala is taking a step in the right direction. For now it is not important how the education comes about but rather that the people become empowered. With an educated population comes educated decision-making and in turn a future to look forward to. Guatemala is heading for that future…albeit slowly.

While I cannot speak from first-hand experience, I have lived with a number of great 100-year-thinkers who volunteer at Niños de Guatemala (one of many education-based non governmental organisations in Guatemala). If you are interested to see the change that these friends have helped make to some of Guatemala’s most underprivileged, follow the link below. And if you want to help make a difference, even better!

http://www.ninosdeguatemala.org/