The mountainous land of Guatemala is regularly shaken by earthquakes and by political unrest. AGuatemala is one of the most militarised countries in Central America, and government forces have little regard for human rights. In an attempt to isolate possible supporters of the anti-government guerrillas, rural Indians are being resettled into new villages and refugee camps, breaking up their communities.
Although there is widespread poverty, Guatemala is one of the richest countries in Central America. Coffee made the country - and the coffee producers and traders - prosperous and still dominates the economy. The banana crop was once of major importance, and allowed the United Fruit Company to influence Guatemalan politics. In 1954 the company helped to oust President Jacobo Arbenz in an armed coup backed by the United States. The Arbenz administration was thought to be Communist, principally because it seized land from the great estate owners to give to the landless Indians.
Civil conflict has almost destroyed tourism, and has dragged the economy down. The land could generate more wealth; there is oil, zinc, lead and nickel, and hydroelectric power potential. The volcanic subsoil is fertile, and although one-third of the country is uninhabited and very little cultivated, crops could be grown almost everywhere.
Guatemala City is growing, with a drift of people from the countryside over the past 30 years swelling the population to 1.2 million ten times the size of any other town in the country. It is the seat of industry - textiles, paper and pharmaceuticals - and the core of economic life.
To improve access to the Caribbean, Guatemala wants a longer coastline, and regularly threatens to invade neighbouring Belize to obtain it. While defending Belize, Britain is arbitrating between the two countries.