Advancing public investment in agriculture to reduce rural poverty and end hunger: key developments in Guatemala under the Hand-in-Hand Initiative

19.09.2024
 

Enhancing the public investment system stands as a top priority for the Government of Guatemala, driving forward its vision for sustainable growth and national development. To this end, the General Secretariat of Planning and Programming of the Presidency (SEGEPLAN), through the Pre-Investment Directorate, has made significant strides in strengthening public investment in agriculture.  

With the support of various international partners, including the Food and Agriculture Organization of the United Nations (FAO), and by utilizing the Hand-in-Hand (HIH) tools, this progress contributes to aligning national policies with sustainable development goals and fostering economic growth in rural areas. 

The HIH initiative is distinguished by its innovative and collaborative approach, utilizing high-precision data, artificial intelligence, and advanced analytical tools to identify areas with the greatest growth potential and sectors requiring priority attention. This methodology ensures a more efficient and effective allocation of public resources, promoting sustainable and inclusive development. 

"This initiative is proving to be an essential catalyst for rural development and agricultural transformation. With FAO's support, public investments are becoming more strategic and effective, generating tangible benefits for local communities," stated Rafael Zavala, FAO Representative in Guatemala. 

Integration of Hand-in-Hand in public investment planning 

Following the commitments made during the recent visit of FAO Chief Economist, Máximo Torero in April 2024, four key meetings have been held with the Pre-Investment Public Directorate of SEGEPLAN. The focus has been on the allocation of public investment for 2024, particularly in irrigation and road infrastructure. 

In these meetings, FAO provided strategic tools developed through the HIH initiative to assist authorities in prioritizing development-driven investments, such as the Irrigation Investment Plan and the "Avenues for Well-being" Program. 

One of the major achievements includes the successful incorporation of territorial typologies into the national public investment system. The HIH Initiative is now integrated into the database used to analyse all public investments in the country. This analysis leverages market access indicators and projections aligned with government plans, such as the National Irrigation Policy and the 'Avenues for Well-being' program.  

Capacity building  

As part of a series of ongoing capacity-building efforts, a dynamic workshop on June 10, 2024, brought together 18 public investment technicians from SEGEPLAN. Building on previous discussions, the workshop set the stage for impactful collaboration. Key figures such as the Deputy Secretary of Public Investment and the Secretary of SEGEPLAN provided valuable insights, alongside contributions from representatives of FAO headquarters, making it a pivotal session.

Edvan Marroquín, Director of Pre-Investment at SEGEPLAN, emphasized the significance of the workshop, stating, "This workshop facilitated the development of a dashboard which showcases the typology implemented through the Hand-in-Hand methodology. This tool will allow us to identify and establish projects based on territorial areas.”  

He furthered added, “We believe that the Hand-in-Hand methodology and tools enable us to implement comprehensive pre-investment initiatives that, most importantly, can benefit the most vulnerable populations."  

Continuing this process, another capacity-building workshop is scheduled for the second week of September 2024. Led by SEGEPLAN in close collaboration with FAO, this session will convene 21 public institutions to present the HIH tools designed to guide public investment. FAO Guatemala, FAO Investment Center, and FAO’s Agrifood Economics and Policy Division (ESA) will also participate, reinforcing the collective effort to strengthen public investment strategies. 


Strategic guidelines  

The Ministry of Agriculture, Livestock, and Food (MAGA) has published its Strategic Guidelines for 2024-2028, incorporating HIH as a tool for prioritizing public investment. This document is being disseminated across MAGA’s technical teams in all 22 departments, marking the beginning of the agricultural policy update. Additionally, this document has been distributed among donors and cooperation agencies linked to the agricultural sector.  


Irrigation investment plan 2024-2026 

The 2024-2026 irrigation investment plan places a strong emphasis on the Dry Corridor Program, dedicating USD 67.3 million to irrigate 6 900 hectares. Looking ahead, the Ministry of Finance has pledged around USD 20 million for irrigation infrastructure beginning in 2025, contingent on the successful development of pre-investment projects. 


Strengthening the coffee value chain 

In partnership with the National Coffee Association (ANACAFÉ), MAGA and the Ministry of Economy (MINECO),  an ambitious roadmap is being developed to fortify Guatemala's coffee value chain. This comprehensive roadmap will harness a range of tools, including detailed territorial typologies and insights from new European Union regulations, to drive innovation and growth in Guatemala’s coffee sector.  

These initiatives represent a significant step forward in Guatemala's efforts to enhance agricultural productivity and sustainability through strategic public investment and international collaboration, under the joint support of the HIH Initiative and the One Country One Priority Product programme. 

As the Minister of MAGA, Maynor Estrada, remarked, “The Hand-in-Hand Initiative enables Guatemala to achieve the transformation of agrifood systems, promoting sustainable development through an inclusive approach and improving the lives of our rural communities.” 


Hand-in-Hand Investment Forum 

The country is also preparing for its participation in the third edition of the HIH Investment Forum, which will take place in Rome from 15–17 of October 2024.  The country will present two investment notes: one focused on facilitating access to irrigation infrastructure for family farmers and another promoting sustainable development in the coffee, cardamom, and cacao value chains.