According to the UNDP Human Development Index, Guatemala ranks 136th out of 193 countries. We are barely above Honduras and Namibia, and far below countries such as Gabon and Equatorial Guinea. We are still far from reaching nations like Belize or the State of Palestine. Not to mention the top 70 countries, which make up the segment of very high human development.
As we have analyzed in previous columns, our education and health indicators are among the lowest in the region. However, although the economy is where we perform best, in GDP per capita we have only reached position 127, below Kosovo and Botswana, and far behind our regional competitors such as Panama (71), Costa Rica (78), and the Dominican Republic (96). Even though the government and the Bank of Guatemala pride themselves on our macroeconomic stability, the reality is that we remain stagnant.
Many attribute these results to the economic model. The voices within this government argue that a more interventionist state could improve the situation through price controls, competition regulations, wage increases, or laws to encourage investment. There is a serious mistake in that premise: countries with greater economic freedom are the ones that grow the most. But there is a much deeper factor limiting our development: our own culture.
This is an uncomfortable but necessary topic. Guatemalan culture has been a barrier to wealth generation, business growth, and the modernization of the country. It is not only about government policies, but also patterns of thought and behavior that have rooted invisible barriers to progress. And in everyday life, those barriers affect businesses, opportunities, and the decisions that can change our destiny.
A clear example is our lack of long-term vision. The recent visit of United States Secretary of State Marco Rubio resulted in an agreement for U.S. Army engineers to design the macro infrastructure for highways, ports, and airports. Undoubtedly, this will increase our logistical and commercial capabilities. However, constructing a project of this magnitude can take between 7 and 15 years. If we begin today, it could be completed between 2037 and 2040 —that is, four governments from now. Meanwhile, El Salvador secured nuclear energy projects, and the Dominican Republic secured electronic chip manufacturing for computers.
This delay is only a symptom of a much broader problem. In health and education we are doing even worse. At the current pace of improvement, it would take us 54 years to reach Costa Rica’s life expectancy (77 years). And if they continue advancing, the gap will only widen. The reality is that we live with a distorted perception of our own backwardness and of the challenges we face to catch up.
Culture is the way we think, feel, and act. At the individual level, each person is different, but at the national level there are patterns of thought that define societies. Sociologist Geert Hofstede identified five key indicators that explain the culture of peoples, and Guatemala ranks critically in several of them.
If we want to change our destiny, we must transform our mentality. We must act quickly, assume individual responsibility, and move forward even without having all the information in hand. In the worst-case scenario, we will learn along the way.
One of these indicators is power distance, which measures the rigidity of hierarchies and the tendency toward blind obedience. Countries with lower power distance, such as Switzerland, Ireland, and Finland, have citizens with greater autonomy and confidence in decision-making. In contrast, the three countries with the highest power distance are Guatemala, Malaysia, and Panama. This submission prevents individual empowerment and perpetuates unquestionable authority structures.
Another indicator is individualism versus collectivism. The most individualistic countries, such as the United States, Australia, and the United Kingdom, promote autonomy and personal responsibility. In contrast, Guatemala is the most collectivist country in the world. In collectivist societies, people avoid expressing their opinions clearly, prioritize harmony over efficiency, and delegate responsibility to the group rather than assuming it individually. This submission to the collective and to what others might say limits the capacity for innovation and entrepreneurship.
The third critical factor is uncertainty avoidance. Countries with low uncertainty avoidance, such as Denmark, Sweden, and Singapore, tend to be more innovative, flexible, and open to risk. Guatemala, on the other hand, is one of the three countries with the highest uncertainty avoidance, alongside Greece and Portugal. This fear and caution translate into administrative rigidity, fear of change, and resistance to new ideas, which becomes an obstacle to competitiveness and progress.
Psychologist Michael Minkov identified the hypometropia index, which measures a society’s tendency to focus on the short term and to accept high levels of violence and risk. Guatemala is among the eight countries with the highest hypometropia, which explains certain levels of unconsciousness regarding the future and partly why our culture does not encourage long-term investment or the development of mathematical and technical skills.
These patterns are not determined by race or language, but by education and the way a society organizes itself. Costa Rica, for example, despite being a Hispanic country, has a power distance index similar to Germany and Switzerland thanks to its investment in education. It is through both formal and informal education that skills are cultivated to make quick decisions, assume responsibilities, and act assertively.
We must learn to decide quickly and clearly, to communicate directly, and to assume risks in a calculated manner. A study by psychologist Robert Levine found that countries where people walk faster and postal services operate more efficiently tend to be more prosperous. Among them are Ireland, Switzerland, Germany, and the United States. And where does Guatemala stand? The answer is obvious.
If we want to change our destiny, we must transform our mentality. We must act quickly, assume individual responsibility, and move forward even without having all the information in hand. In the worst-case scenario, we will learn along the way. In the best-case scenario, we will conquer the future. This new culture should permeate every area of our education. And to those making decisions in the business world: responding on time, acting clearly, and eliminating the culture of “let’s go over it again” or the “fear of failure” may be the key to a true cultural takeoff toward change, innovation, and economic and social development.
