Guatemala ratified International Labour Organization Convention 169 (ILO 169) on June 5, 1996, more than a year after Guatemala's Constitutional Court, the highest court in the country, ruled in Document 199-95 that the Convention did not contradict the Guatemalan Constitution.
With 11 homicides per 100,000 inhabitants in 2012, Nicaragua stands out as a relatively fortunate exception in a region whose homicide rates rank among the world's highest. Its northern neighbors all recorded rates at least three times greater: with Guatemala at 34.3 murders per 100,000 citizens; El Salvador at 41.5; and—at the top of this grim list—Honduras at 85.5. To the south of Nicaragua, only traditionally stable and more developed Costa Rica recorded a lower rate (8.8). Panama registered 17.6 murders per 100,000 in 2012.
Guatemala is one of the most unequal countries in Latin America and has the highest incidence of poverty. The indigenous population is more than twice as likely to be poor than the nonindigenous group. Fiscal incidence analysis based on the 2009-2010 National Survey of Family Income and Expenditures shows that taxes and transfers do almost nothing to reduce inequality and poverty overall or along ethnic and rural-urban lines. Persistently low tax revenues are the main limiting factor. Tax revenues are not only low but also regressive. Consumption taxes are regressive enough to offset the benefits of cash transfers: poverty after taxes and cash transfers is higher than market income poverty.