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Economy & Business - July 2003

GUATEMALA: Economic implications of Rios Montt decision

The local media has been fierce in its criticism of the key recent decision by the constitutional court, which was packed with supporters of the Frente Republicano Guatemalteco (FRG). The court ruled that the FRG candidate for the presidency, the controversial General Efraí­n Rí­os Montt, could run for the presidency, even through he had taken part in a coup. The court took the view that the law forbidding coupsters from running for the presidency was passed after Rí­os Montt's coup, therefore, it ruled that the principle of no retrospective legislation meant that Rí­os Montt could run for the presidency this November. 

Local commentators ignore this, and instead emphasise the political dimension of the decision. They argue that the decision will put off foreign investors because it is clear that the courts are not independent but deeply political. They claim that the precedent means that the courts will do the politicians' bidding when they have to rule on issues such as taxes, labour laws or profit remittances.

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