This chapter outlines a set of policy recommendations aimed at strengthening Escuintla’s competitiveness by enhancing infrastructure, improving governance, and fostering a sustainable and inclusive environment for economic development. The proposed measures are designed to support both national and regional authorities, with a particular focus on aligning infrastructure and regulatory frameworks to regional priorities. Recognising the strategic role of SEZs and industrial parks, the chapter distinguishes between actions to be taken by public authorities – such as those responsible for regulation, planning and oversight – and those intended for SEZs and park operators themselves.
Rethinking Regional Attractiveness in Escuintla, Guatemala
Harnessing the Potential of Industrial Parks
Abstract
This chapter presents the main findings and recommendations to enhance the competitiveness of Escuintla’s industrial and economic landscape by improving infrastructure, refining governance and regulatory frameworks, and promoting a more resilient and sustainable environment for economic development at both national and regional levels. Presents a set of targeted policy recommendations to enhance the contribution of SEZs and industrial parks to regional development. To ensure clarity and practical relevance, the recommendations are clearly distinguished into four categories: Strengthening Infrastructure while ensuring climate resilience, Driving local economic development and social inclusion, Developing a long-term investment strategy and institutional framework, and Improving governance and regulatory effectiveness.
Public policy recommendations are complemented by the inclusion of best practice examples from other regions. These “best practices” are success stories that have proven effective in similar contexts. They should not be seen as one-size-fits-all solutions or direct implementation recipes, since each region has its own political, legal, economic, environmental, and social framework. Rather, they serve as starting points, sources of inspiration, and evidence that certain strategies can work, helping to contextualise recommendations and guide strategic planning in a more informed way.
A strategic framework to strengthen infrastructure, foster inclusive growth, and enhance institutional effectiveness in Escuintla
Strengthening infrastructure while ensuring climate resilience
Robust and resilient infrastructure is the backbone of economic development and social well-being. In regions like Escuintla, where strategic connectivity supports national and international trade, infrastructure plays a critical role in driving productivity and attracting investment. However, vulnerabilities such as climate change, environmental degradation, and insufficient maintenance have exposed critical weaknesses, jeopardising economic activities and community livelihoods. Strengthening infrastructure and enhancing its resilience is essential to ensuring reliable logistics, sustainable growth, and long-term development for the region and the country.
Improving transport and logistics
Expand and modernise road networks through public and private investment: Given the scale of investment required, the expansion of road infrastructure in Escuintla must be approached through a combination of public funding and private sector engagement. Mobilising private capital – particularly through public-private partnerships and concessions – can accelerate the development of strategic road networks and reduce the fiscal burden on the state, as outlined in OECD’s Principles for Private Sector Participation in Infrastructure (OECD, 2007[1]). Furthermore, this approach should be aligned with the OECD Recommendation on Effective Public Investment Across Levels of Government, its purpose is to help adherents at all levels of government to assess the strengths and weaknesses of their public investment capacity, a critical shared responsibility across levels of government, and set priorities ensuring that public investment is efficient, transparent, and aligned with long-term development goals.
Upgrade road quality, including rural infrastructure to improve accessibility: Poor road infrastructure continues to pose a significant barrier to mobility and investment, as highlighted in Section 2.1. In this context, the government of President Bernardo Arévalo – through the Private Secretariat of the Presidency – launched the first intervention of the Development Routes Programme in early 2025. This flagship initiative aims to transform road infrastructure and ensure access to basic services in the country’s most disconnected communities. The programme’s first intervention will cover over 400 km of departmental roads in Samox San Lucas, Cobán, connecting 122 communities and benefiting more than 40 000 people (Secretaría Privada de la Presidencia, 2025[2]). Improving the quality of rural roads is crucial to enhancing agricultural productivity and ensuring equitable access to markets and services. Rural infrastructure must be recognised as a core element of the national transport strategy, with targeted investments to address connectivity gaps in under-served areas. Involving the private sector through well-designed concessions or co-financing models can enhance the reach and durability of rural road networks, thereby supporting regional development and reducing territorial disparities. In parallel, improving digital connectivity – particularly in rural and peri-urban areas – should be prioritised as a key enabler of economic inclusion. Expanding access to reliable, high-speed internet can enhance access to education, financial services, e-commerce, and public programmes. Similarly, the development of periodic maintenance plans for existing roads and access routes to productive areas is essential.
Review and streamline processes for infrastructure development, including public-private partnerships and concessions: The current legal and procedural framework governing toll concessions should be reformed to enhance transparency, efficiency, and continuity. Political interference in toll agreements can jeopardise infrastructure projects and erode investor confidence. A viable and interesting alternative to tolls is “availability payment contracts”. Establishing clear and stable rules for awarding and managing concessions – along with differentiated tariff structures and route monitoring systems – will help ensure that infrastructure assets are properly maintained and serve long-term development goals.
Strengthen port infrastructure to enhance trade and connectivity: Expanding port infrastructure in Puerto Quetzal is essential to accommodate growing trade volumes and support industrial development in Escuintla. This includes the construction of additional docking facilities and improved logistics to handle larger vessels and increased cargo flows. Co-ordinated planning between public authorities and private investors will be necessary to secure adequate financing and deliver projects on time. Efforts should also focus on optimising port connectivity as a critical node for nearshoring strategies and boosting exports. This includes streamlining customs procedures, modernising dock infrastructure, and deepening maritime access channels to improve port efficiency and competitiveness. The examples from ports such as Santos (Brazil), Jawaharlal Nehru (India), Antwerp (Belgium), and Bremen (Germany) show that involving private sector representatives – such as business associations or chambers of commerce – in port governance bodies can improve efficiency and ensure user needs are reflected in strategic planning (Box 5.1). Another good practice can be found in Chile, where the port of Valparaíso has invested significantly in the modernisation and expansion of its facilities to boost cargo handling capacity. Through partnerships with private companies and government authorities, the port has improved its efficiency and strengthened its position in the logistics chain (IKONSATN, 2020[3]).
While a significant portion of the world's major ports are under national government control, local authorities play a crucial role in governing approximately one-third, either through full or partial ownership. Complete local ownership remains less common, primarily observed in Northern Europe and the United States. More frequently, port governance involves hybrid models, such as shared ownership between national and local entities or local governments overseeing specific port categories.
In an era of increasing globalisation in both shipping and port operations, the economic advantages of ports often extend beyond their immediate vicinity, while the negative impacts tend to be localised. This dynamic underscore the importance for ports to generate local value, thereby securing ongoing community support for their activities.
Within many nationally owned ports, the national government typically holds primary influence over budgetary and strategic decisions. Local considerations are often addressed through the representation of local authorities on port institutions like boards of directors or supervisory bodies. Interestingly, some regions, such as those in Spain, employ a dual approval system, distributing decision-making authority between central and regional governments. Increasingly, modern port authorities recognise the significance of stakeholder relations management (SRM) and are incorporating various port stakeholders, particularly port users, into their governance structures. This direct SRM approach involves including representatives of private companies within key port bodies, as seen in the administrative council of the port of Santos, Brazil, and the Board of Trustees of the port of Jawaharlal Nehru, India. Furthermore, associations of private port companies, chambers of commerce, and development agencies, as exemplified by Alfaport in Antwerp, also play a vital role. Beyond direct inclusion, port users frequently contribute to advisory boards or committees, such as in Bremen and Los Angeles, providing recommendations on port policies. In France, private sector representatives from diverse port-related industries are integrated into supervisory and development councils. Barcelona's Council for the Promotion of the Port Community further demonstrates this collaborative approach, uniting public and private entities to propose development strategies. Finally, voluntary associations, like the Hamburg Port Marketing association, showcase a more external yet crucial form of private sector involvement in shaping the port's ecosystem.
Source: OECD (2024[4]).
India’s experience with the Model Concession Agreement (MCA) for highways offers a strong example of how infrastructure trust fund (ITF)-like mechanisms can strengthen transparency, financial discipline, and investor confidence in public-private partnerships (PPPs). Designed to support Design-Build-Finance-Operate-Transfer (DBFOT) projects, the MCA combines a detailed risk allocation framework with transparent financial governance. A central feature is the mandatory use of an escrow account through which all project inflows and outflows are channelled. This operates similarly to an ITF, ensuring revenue streams – such as user fees – are managed transparently and allocated to pre-agreed priorities, including debt service, maintenance, and public revenue sharing.
The MCA further supports financial predictability through viability gap grants, structured revenue-sharing models, and a capped concession fee tied to project performance. Alongside strong oversight – such as independent engineering supervision, statutory audits, and lender substitution rights – this approach effectively mobilises public and private finance for long-term infrastructure while safeguarding the public interest and limiting fiscal risks. These features are particularly relevant for contexts where institutional trust and investment environments are still developing.
To enhance project viability, the government may provide a capital grant of up to 20% of project cost, with an additional 20% for O&M support if required. The concession fee is set at 1 rupee per year, unless bidders propose a revenue share, which may increase by 1% annually. Other provisions include robust monitoring, termination clauses protecting up to 90% of debt under most force majeure events, and mechanisms that promote long-term project sustainability.
Source: Haldea (n.d[5]).
Developing climate-resilient and sustainable infrastructure
Integrate climate resilience and risk management into infrastructure planning: Improving the resilience of infrastructure in Escuintla is essential to safeguard development gains and protect communities from extreme weather events such as floods and landslides. Public investment should prioritise the use of sustainable construction technologies and durable materials capable of withstanding environmental shocks. In parallel, regulatory frameworks must be strengthened to manage land use in high-risk zones, including volcanic and forested areas. A relevant example is France’s “RE2020” regulation, which came into force in 2022 and aims to reduce energy consumption and emissions, promote more sustainable construction practices, and enhance resilience to increasingly intense and frequent heatwaves (OECD, 2024[6]). By enforcing environmental standards – particularly in agriculture – and implementing advanced monitoring systems for natural hazards, authorities can mitigate the risks of deforestation, soil degradation, and biodiversity loss while protecting critical infrastructure.
Strengthen water governance and management systems: Escuintla faces persistent challenges in water management, including scarcity, pollution, and inefficient use of resources. A comprehensive and integrated water governance framework is necessary to ensure equitable access, sustainable usage, and long-term resilience. Strengthening institutional capacity at both national and local levels, improving data collection, and encouraging stakeholder co-ordination will be key to addressing current gaps. These actions should be supported by robust policies that promote water conservation, improve sanitation infrastructure, and manage industrial demand effectively. Given that Guatemala is one of the few countries in Central America without a comprehensive water law, prioritising the review and approval of the proposed Water Law is essential to establish a clear and consistent national water management framework. During the legislative process, it is crucial to engage with diverse stakeholders, including local communities, indigenous groups, agricultural sectors, and industry, to ensure the law reflects the varied needs of all water users. The OECD Principles on Water Governance and their accompanying Indicator Framework provide practical tools to assess and improve governance systems at local level. These instruments can serve as a valuable reference for local governments in Escuintla seeking to design transparent, inclusive, and effective water management strategies (Box 5.3). Advancing in specific legislation, notably to enable financial and contractual mechanisms so that local governments and Mancomunidades de Municipalidades have the resources to develop wastewater treatment plants, can be a practical way forward in the shorter term.
Expand renewable energy infrastructure to support economic and environmental goals: Reliable and sustainable energy infrastructure is crucial for supporting industrial development and reducing environmental impact in Escuintla. Efforts should focus on expanding renewable energy sources, including solar and biomass, particularly from local industries such as sugar mills. This approach not only meets the increasing energy demands of emerging eco-industrial parks but also contributes to national climate commitments. Public-private partnerships can play a vital role in financing and implementing these projects, ensuring energy security while promoting innovation and environmental sustainability. To support this expansion, strategic policy frameworks should be developed to encourage private investment in clean energy and ensures equal conditions with conventional energy sources. Guatemala already has a legal framework that provides incentives for the development of renewable energy projects, along with mechanisms such as the PEG-5 tender, aimed at strengthening the energy matrix through long-term contracts. In this context, it is key to reinforce the implementation of these initiatives and ensure that they effectively promote private investment in clean energy while providing fair conditions compared to conventional sources. Instruments such as reverse auctions – used successfully in Brazil for wind energy – can promote transparency and reduce energy costs by fostering competitive bidding processes. These mechanisms have proven effective in lowering tariffs and making renewable energy development more affordable and attractive to private investors (OECD, 2015[7]).
The Handbook of What Works presents more than 50 water governance practices implemented across OECD and partner countries, demonstrating how cities, regions and basins have applied the OECD Principles on Water Governance to address local challenges. These practices are organised around the three dimensions of effective governance – effectiveness, efficiency, and trust and engagement – and illustrate concrete solutions in areas such as policy coherence, stakeholder participation, regulatory frameworks, financing, and data management.
The Handbook offers a step-by-step methodology for identifying and adapting solutions to local contexts, supported by case studies from Latin America, Europe, Africa, and Asia. For departments, which face water-related challenges exacerbated by rapid urbanisation and industrial development, the Handbook can serve as a practical guide to strengthen water governance frameworks, promote co-ordination across actors and levels of government, and design adaptive policies to improve resilience and service delivery. By leveraging this international knowledge base, local authorities can accelerate the implementation of integrated and inclusive water management strategies.
Source: OECD (2015[8]) (2018[9]) (2024[10]).
Driving local economic development and social inclusion
Inclusive economic growth is essential for fostering sustainable development and reducing inequality. In regions like Escuintla, where significant industrial activity and economic potential exist, ensuring that local communities benefit from development is both a challenge and an opportunity. By creating stronger linkages between large-scale industries, small businesses, and local communities, and by investing in social and economic infrastructure, Escuintla can channel its growing industrial output into improvements in living standards for its residents. Boosting local economic development and fostering community inclusion will ensure shared prosperity and strengthen the social fabric, making the region a model of sustainable and equitable growth in Guatemala.
Skills development
Strengthen vocational training and technical education to align with labour market needs: Strengthening vocational training and technical education is essential to meet the labour market demands of Escuintla’s growing industrial base. Public investment should prioritise the expansion of training centres equipped with modern technologies to prepare the workforce for emerging sectors such as advanced manufacturing, green technologies, and logistics. A subnational skills development strategy – developed in co-ordination with the Ministry of Education, the private sector, and training institutions – can help align curricula with real market needs and address existing skill gaps. Targeted support for women, indigenous peoples, and rural communities is also key to ensuring inclusive participation. To ensure that workforce development efforts effectively contribute to regional competitiveness, stronger local governance and planning frameworks are needed. Public-private collaboration within Industrial Parks and ZDEEP can facilitate skills development initiatives, ensuring that economic expansion translates into broader social benefits. The role of INTECAP is vital, and it has already made important contributions in this area by offering demand-driven programmes that support industrial development and workforce readiness (Box 5.4) and can further strengthen its approach by observing good practices from other countries in the region that have successfully aligned technical training (Box 5.5). For instance, Brazil offers a useful example of large-scale vocational reform aimed at expanding access and relevance. The government has committed to tripling vocational enrolment by 2024, and institutions such as SENAI – part of the "Sistema S" – play a key role by offering employer-led, demand-driven training that aligns closely with industry needs and improves employment outcomes (OECD, 2022[11]). To strengthen the role of INTECAP, it is important to set up a more flexible framework to purchase machinery, equipment and supplies from abroad, as current procurement legislation can make this burdensome, hence the institution usually relies on cooperation to modernise the machinery it uses. Similarly, it will be important to facilitate hiring and training temporary and foreign instructors, which can have a positive impact in improving the quality of teaching and learning. Developing the capacity of providing skills in emerging global sectors and in areas of opportunity is also crucial, for instance digital skills or technical skills in green sectors. In terms of INTECAP’s governance structure, it would be important to consider the possibility that the General Manager of the institution can be appointed by the Board of Directors.
Establish mechanisms for certifying job skills, even those acquired in informal settings, and improve the connection between businesses, training centres, and local governments to identify and provided skills that are demanded: Design internship and dual education programmes where students combine theoretical and practical training (possibly in companies located in industrial parks). Implement incubators and accelerators at the local level, supported by universities, research centres, and the private sector, promoting the creation of new enterprises.
Engage skilled diaspora to transfer expertise: Tapping into the expertise of Guatemala’s skilled diaspora can significantly enhance the national talent pool and accelerate capacity building in priority sectors. Policies should explore mechanisms to facilitate the return or remote engagement of professionals abroad, particularly in fields such as engineering, digital innovation, and green industry. Diaspora engagement programmes can support technical training, mentor local entrepreneurs, and contribute to curriculum development in vocational institutions. Creating institutional links between local education systems and diaspora professionals would strengthen knowledge transfer and promote innovation-led development in regions like Escuintla. A useful example comes from Morocco, where national authorities have developed online platforms – such as FINCOME and Maghribcom – to connect the diaspora’s skills with domestic development goals. Similarly, the website clubfrancemaroc.com, launched by the French Embassy and the French Chamber of Commerce and Industry in Morocco, helps match Moroccan students in France with job opportunities back home while raising awareness of career prospects in the country (OECD, 2017[12]).
The INA’s collaboration with free zone companies to meet workforce needs
Costa Rica offers a compelling example of how technical training institutions can collaborate with industry to foster inclusive and demand-driven skills development. The National Institute of Learning (INA), in partnership with Costa Rican IPA and companies located in the country’s free zones, has developed sector-specific training programmes to respond to the growing needs of the life sciences sector. This collaborative effort strengthens employability, enhances productivity, and reinforces Costa Rica’s reputation as a leading hub for advanced manufacturing. The INA plays a central role in co‑ordinating training content with emerging industry trends and fostering agile responses to evolving labour market needs. By directly engaging with clusters of high-tech industries, it ensures that training remains relevant and inclusive, particularly for women and young professionals. These efforts illustrate how a strong partnership between public training institutions and the private sector can support talent development, attract foreign direct investment, and promote social progress.
Source: CINDE (2020[13]), MTSS (2023[14]).
Promoting inclusive economic opportunities
Ensure local participation and connection with communities benefit from new industrial development projects: to ensure inclusive and equitable regional development, policies must promote the active integration of local and marginalised communities into new industrial initiatives such as SEZs and industrial parks. Participatory planning mechanisms should be established to align infrastructure, training, and employment programmes with community needs. This includes facilitating local job creation, enhancing access to vocational training, and supporting local entrepreneurship through linkages with supply chains, which will require that tax incentives offer a careful balance between attracting foreign suppliers and providing opportunities for domestic ones. It can also involve other dimensions like improving local transport connections or strengthening daily care facilities for children. Encouraging industrial parks to engage with nearby communities not only improves social cohesion but also maximises the territorial impact of investment and fosters long-term resilience. A notable example is the Kwinana Industrial Area (KIA) in Western Australia, where the Kwinana Industries Council (KIC) has fostered strong ties with the local community through various initiatives. These include the Community and Industries Forum (CIF), which convenes bi-monthly public meetings to facilitate dialogue between industry representatives and community members, and the Community Education Development Programme, which partners with local schools and technical colleges to offer workshops, internships, and industry tours, aiming to excite youth about potential career pathways in the industrial sector. Additionally, KIC supports local not-for-profit organisations through its Community Grants Program, enhancing community development across the region (VanBeers, 2022[15]).
Enhance the appeal of formal employment for young people and women to reduce emigration, informal work and illicit activities: Expanding access to quality employment opportunities for youth and women is critical to reducing the drivers of emigration and preventing engagement in informal or illicit activities. Policymakers should prioritise job creation strategies that emphasise fair wages, job security, and career development in sectors with growth potential. Tailored support measures – such as training subsidies, apprenticeships, and childcare services – can enhance labour market inclusion and empower underrepresented groups. Strengthening the quality and visibility of formal jobs will not only improve social outcomes but also reinforce the legitimacy of industrial development efforts in regions like Escuintla. A good practice comes from Argentina, where the Ministry of Productive Development launched the ‘Guide for Industrial Parks with a Gender Perspective’ in 2021. This initiative provides concrete tools to facilitate the integration of women and non-binary individuals into industrial sectors by promoting gender-sensitive infrastructure, inclusive hiring practices, and incentives for companies to reduce gender gaps. Such a framework not only improves equity but also boosts productivity and innovation within industrial parks (Ministerio de Desarrollo Productivo, 2021[16]).
Leveraging multi-stakeholder collaboration for local economic development and social inclusion
The Triple Helix model of innovation promotes structured collaboration between government, industry, and knowledge institutions to drive territorial development. In the context of Mexico, this model has been applied not only to support technological innovation, but also to foster inclusive economic growth and reduce regional disparities. By connecting public policy, private sector capacities, and academic expertise, the model aims to generate local employment opportunities, strengthen regional value chains, and build institutional capacity in underserved areas.
While implementation remains uneven across the country, the model has enabled the development of regional partnerships that align education and training with local labour market needs, particularly in cities such as Monterrey and Guadalajara. In more peripheral areas, like the El Paso–Ciudad Juárez–Las Cruces corridor, the integration of universities, businesses, and public agencies has contributed to cross-border economic development, community-based innovation, and expanded access to social services.
In Mexico, the Triple Helix approach has also been operationalised through dual education programmes, as promoted by Fundación Por México. This initiative brings together public authorities, private enterprises, and educational institutions to deliver workplace-based training that addresses local skills gaps, enhances employability, and supports the competitiveness of strategic sectors. To enhance its potential, policies should focus on deepening private sector engagement, securing sustainable financing, and ensuring that innovation initiatives are aligned with inclusive development objectives at the local level.
Sources: American Industries Group (2023[17]), Fundación por México (n.d.[18]).
Developing a long-term investment strategy and institutional framework
A well-defined long-term investment strategy, supported by a robust institutional framework, is crucial for ensuring sustainable economic growth and resilience. In Guatemala, the absence of strategic planning and fragmented institutional co-ordination have hindered Escuintla’s ability to fully capitalise on its economic potential. Currently, investment promotion efforts in Guatemala, including those led by Pronacom and the Ministry of Economy, tend to operate on a demand-driven, ad hoc basis rather than through a cohesive strategic framework. This reactive approach limits the effectiveness of investment attraction and long-term planning. To address these challenges, the following recommendations are proposed.
Strengthening FDI strategies
Enhance co-ordination and role definition in investment promotion and in the definition of opportunities and strategies at the regional level: Guatemala’s investment promotion landscape features multiple actors – InvestGuatemala (led by the private sector), the recently established National and Foreign Investment Attraction Agency (ProGuatemala), and PRONACOM, all of which operate under the Ministry of Economy to boost efficiency and impact, a clear governance framework should define the roles and responsibilities of each entity. The Ministry of Economy is the governing body for foreign direct investment attraction, while ProGuatemala plays an operational role in investment promotion, and PRONACOM holds a crucial but more targeted mandate focused on improving national competitiveness. InvestGuatemala as the private sector-led agency, could continue to excel in investor services, international promotion, and business facilitation. Strengthening structured collaboration between these actors, with clear mandates for information sharing through existing mechanisms such as the Inter-Institutional Investment Intelligence Technical Group, can minimise duplication, enhance institutional capacity, and improve investor confidence. Formal integration of the private sector into strategic discussions would further leverage sector-specific knowledge and investment leads. While ProGuatemala’s mandate is defined in the Ministerial Agreement that established its functions, a complementary mapping of ProGuatemala and InvestGuatemala’s activities and resources could help identify overlaps and areas for synergy. Establishing formal mechanisms for regular communication and co-ordination between both entities – regardless of whether a consolidation takes place – can improve strategic alignment and performance. Drawing on Tunisia’s experience, where three investment agencies with overlapping responsibilities (APII, FIPA and TIA) prompted a mapping exercise to evaluate potential gains and costs of consolidation, Guatemala can similarly benefit from assessing its current structure to inform future institutional reforms (OECD, 2019[19]).
Promote tailored FDI attraction strategies through empowered municipal alliances: To unlock Guatemala’s full investment potential, FDI attraction efforts should be based on functional economic areas rather than administrative boundaries. Given the limited institutional capacity of departments and the fragmented resources of individual municipalities, the national government should support the empowerment of mancomunidades. These mancomunidades can serve as a practical scale for developing tailored FDI strategies, aligned with both national development goals and local strengths. To operationalise this approach, Congress could establish a dedicated programme to fund and certify self-organising mancomunidades. Such a decentralised yet co‑ordinated model would ensure that investment promotion efforts contribute to balanced territorial development, industrial diversification, and greater economic resilience. For instance, the region of Central Anatolia–East in Türkiye successfully attracted over USD 200 million in greenfield FDI between 2020 and 2023 – up from less than USD 1 million in the previous period – by leveraging local assets such as mineral reserves and solar energy potential. This investment included metals extraction, solar panel manufacturing, and distribution services, and illustrates how less traditional regions can attract strategic investments when supported by targeted planning and alignment with national priorities (Kimura and Flood, 2025[20]).
Ireland's South-East FDI strategy has been a key driver of economic growth and innovation in the region. Its approach focuses on forming partnerships between multinational companies and local businesses, particularly in sectors such as advanced manufacturing, ICT, and pharmaceuticals. These collaborations enable international firms to leverage local talent and research, while SMEs in the region benefit from new markets and innovation opportunities. The FDI strategy also promotes workforce development, aligning educational programmes with the needs of high-growth sectors. By offering specialised training and apprenticeship schemes, the region ensures the provision of high-skilled professionals, while retaining local talent and attracting graduates from other parts of Ireland and beyond. The South-East markets its rich natural capital as part of its appeal to investors, as well as its location close to Dublin. The region promotes its scenic landscapes and quality of life to attract remote workers and companies looking for sustainable environments. Alongside this, the South-East has made significant investments in renewable energy, particularly offshore wind, aligned with Ireland’s broader climate action goals, which has enhanced the region's attractiveness to environmentally conscious investors.
Source: Ireland South-East (n.d[21]).
Leveraging nearshoring and global trade opportunities
Maximise and diversify trade agreements and international partnerships to improve market access: Emerging global trends such as nearshoring are reshaping international investment flows, offering new opportunities for countries like Guatemala to integrate more deeply into regional value chains. Thanks to its proximity to North American markets and its network of trade agreements, Guatemala is well positioned to benefit from this shift and attract investment in both manufacturing and services. Guatemala should make strategic use of its existing network of trade agreements to improve its attractiveness to foreign investors and strengthen its integration into global value chains. By actively promoting these agreements – such as those with Japan, Korea, Chinese Taipei, the United States, Mexico, Spain, and Central American partners – in investment pitches, the country can position itself as a competitive gateway to multiple markets. Emphasising Guatemala’s strategic location and preferential market access can serve as a key differentiator in attracting export-oriented investment and nearshoring opportunities. In particular, Guatemala could capitalise on the momentum generated by Mexico, which has stood out as the preferred destination for the installation of manufacturing centres aimed at supplying the North American market (Drenik, 2023[22]). The ongoing trend of nearshoring is expected to continue driving demand for industrial space in Mexico – especially in border states – which may extend to neighbouring Guatemala, reinforcing its relevance as an alternative or complementary hub for investment. To maximise impact, public authorities and investment promotion agencies should co-ordinate messaging and ensure that trade benefits are clearly communicated to international investors.
The Invest in Canada Hub was established in 2018 as Canada’s dedicated national agency for attracting Foreign Direct Investment. The Hub promotes Canada as an investment destination by integrating national and regional efforts: it aligns federal policies with provincial and municipal initiatives, ensuring effective collaboration across government levels and offers tailored support to foreign investors.
The Hub provides both centralised services – acting as a single point of contact for international investors and offering services such as market insights and guidance through Canada's regulatory environment – and operates through strong regional partnerships. Through its ‘Regional Spotlight’ series it promotes different parts of the country, providing overviews of the different regions and their characteristics (for example including labour force and sectoral statistics, working closely with provinces and cities to identify and promote local opportunities and leverage regional strengths, while maintaining a cohesive national strategy and avoiding inefficient competition. Lastly, it offers customised support to investors, including around navigating regulatory requirements, finding suitable locations and providing bespoke solutions to investors’ needs.
Source: Invest Canada (2023[23]).
Advancing green and sustainable investment
Increase the adoption of green and innovative financing tools: To accelerate the green transformation of Guatemala’s industrial base, particularly in regions such as Escuintla, public authorities should develop financing mechanisms that facilitate access to climate finance. Blended finance instruments – combining public funds with private capital – can be leveraged to mitigate the risks associated with investments in sustainable infrastructure. Partnerships with multilateral organisations, such as the CAF and development agencies, can help mobilise resources through green bonds, grants, and concessional loans. Linking eco-parks to international climate finance frameworks will support long-term investment in clean technologies while reinforcing Guatemala’s positioning as a destination for environmentally responsible production.
Promote eco-friendly industrial parks with sustainability certifications to attract green investment: Transforming traditional industrial parks into eco-parks can enhance Guatemala’s attractiveness to investors committed to sustainability. Establishing a national certification scheme for eco-industrial parks, incorporating international standards such as LEED, would provide a clear signal of environmental performance and credibility. Incentives should be introduced for firms adopting green technologies and best practices in resource efficiency, circularity, and emissions reduction.
Improving governance and regulatory effectiveness
Effective governance and robust regulatory frameworks are essential for creating an enabling environment that fosters investment, ensures compliance, and drives sustainable development. In regions like Escuintla, where economic potential is high but institutional weaknesses persist, strengthening governance and regulation is critical to overcoming challenges such as fragmented co-ordination, inadequate enforcement of environmental and infrastructure standards, and inefficient planning processes. By enhancing institutional capacity, promoting transparency, and fostering collaboration among stakeholders, Escuintla can build a governance structure that supports long-term development while addressing the needs of its businesses and communities.
Enhancing institutional capacity and co-ordination
Simplify and improve public procurement processes to increase transparency and efficiency: Reforming public procurement is essential to improve infrastructure delivery and reduce the cost and time associated with project implementation. Bidding and contracting procedures should be simplified and made less bureaucratic, with a focus on transparency, efficiency, and technical rigour, and facilitating public institutions – e.g. INTECAP – to purchase machinery from abroad. Introducing regular audits and independent oversight mechanisms will help ensure that project selection and execution are guided by objective criteria rather than political interests. The OECD recommendation on public procurement underlines a number of actions from training programmes for the procurement workforce, internal control measures, to integrity frameworks, that can help combat corruption. Emphasising evidence-based decision-making and strong technical assessments across public entities can enhance trust in institutions and support sustainable economic development. One example is Peru's successful advancements in transparent e-procurement, Guatemala should prioritise the modernisation of its Guatecompras platform to foster greater efficiency and accountability in public spending. Peru has made significant progress in electronically recording procurement information and ensuring transparency, placing openness at the heart of its e-procurement developments. The Secretariat of Public Management (SGP) within the Presidency of the Council of Ministers (PCM) has played a key role in formulating, co-ordinating, supervising, and evaluating transparency and public information policies. Guatemala could benefit from establishing or empowering a similar institutional actor to lead and oversee procurement reforms. This would involve investing in robust data management systems, user-friendly digital platforms, and real-time reporting capabilities to ensure Guatecompras can serve as a reliable tool for accountability and efficiency (OECD, 2017[24]). By implementing such practices, SEZs can improve their governance frameworks, build trust with international partners, and maximise their contribution to legitimate investment and regional development (OECD, 2025[25]).
Strengthen anti-corruption measures and accountability mechanisms: Tackling institutional weaknesses is critical to improving Guatemala’s investment climate. Structural reforms should be implemented to reduce political interference in infrastructure and investment decisions. This includes reinforcing the independence and professionalism of public agencies, enhancing enforcement capacity in regulatory bodies, and adopting international standards such as the OECD Certification Scheme for Free Trade Zones. These measures can help prevent illicit trade, strengthen governance in SEZs and industrial parks, and build investor confidence through greater transparency and integrity. One SEZ that is part of the certification is the Consorci de la Zona Franca de Barcelona (CZFB), which recently became the first free trade zone in the world to be awarded the OECD Free Zone Certification. This recognition highlights CZFB as a global benchmark in innovation, Industry 4.0, sustainability, and its strong commitment to transparency and security in international trade (TIC Council, 2025[26]).To further support transparency, investor protection, and effective governance in SEZs and industrial parks, Guatemala could also strengthen its investment facilitation ecosystem by enhancing its one-stop shop (Ventanilla Unica de Comercio Exterior - VUCE), expanding post-investment services, and establishing streamlined conflict resolution mechanisms. This could include appointing dedicated aftercare officers, systematically monitoring investor satisfaction, and facilitating linkages with local suppliers and talent. Such practices have proven effective in other countries in the region, for example, Costa Rica’s PROCOMER and Colombia's PRO-Colombia. Such cases can serve as a model for Guatemala in its efforts to promote trusted and competitive investment environments. Also, Ukraine has established the Digital Restoration Ecosystem for Accountable Management (DREAM), a national platform supporting project planning, appraisal and implementation. DREAM is fundamental to operationalising Ukraine’s new public investment management system. It enables public bodies, at all levels of government, donors and citizens to plan, track and report on reconstruction projects in a transparent way. By making investment project data publicly accessible and traceable, DREAM strengthens accountability mechanisms and helps deter misuse of funds. It also supports anti-corruption efforts by providing a digital audit trail across the investment management cycle.
Improve co-ordination between national and subnational governments to enhance policy implementation: Effective infrastructure planning and investment require strong multi-level governance. Co-ordination between national, regional, and local authorities should be improved to ensure alignment of infrastructure priorities and investment strategies. Guatemala can draw inspiration from international good practices, such as Mexico’s Triple Helix Model, which promotes collaboration among government, academia, and the private sector. Institutionalising mechanisms for intergovernmental dialogue and joint planning can enhance the coherence of infrastructure development and support balanced territorial growth.
Fostering collaborative governance through a steering committee: To ensure the Synergy Industrial Park's long-term success and maximise its positive impact on the region, we recommend the establishment of a dedicated Steering Committee. This committee would serve as a vital platform for ongoing collaboration and communication among key stakeholders, fostering transparency and inclusivity in the park's development. Comprising representatives from various levels of government (national, regional, and local), local businesses, community leaders, and potentially, beneficiaries from adjacent regions, the committee would also play a crucial role in securing community buy-in and monitoring the socioeconomic conditions of local communities and workers. In the People’s Republic of China, for example, a Corporate Social Responsibility (CSR) evaluation system protects the rights of workers by monitoring and evaluating employer-employee relations in industrial parks (UNIDO, 2020[27]).
Boosting transparency and evidence-based decision-making
Improve the availability and quality of subnational data: Strengthening subnational statistics is essential for evidence-based policymaking and attracting high-value investment. Guatemala faces significant data gaps in areas such as sectoral specialisation, labour market dynamics, and innovation. The National Institute of Statistics (INE), in collaboration with SEGEPLAN and other stakeholders, should improve the quality and frequency of regional data collection. This includes enhancing survey representativeness, integrating data sources through digital platforms, and building technical capacity for analysis. Publishing regular territorial statistical reports will enable more targeted policy responses and support the design of investment strategies tailored to local needs. A platform portraying data on territorial attractiveness can help in attracting investments to where they can have stronger impacts. More generally, efforts should be made to improve the access of the INE to financial resources to invest in people, equipment, and facilities.
The Partnership in Statistics for Development in the 21st Century (PARIS21) was established in 1999 as a global partnership hosted by the OECD to promote the better use and production of statistics in low- and middle-income countries. PARIS21 works to strengthen national statistical systems (NSS), advocate for increased and more effective funding to data, and promote evidence-informed policymaking. Its partners include national governments, multilateral agencies, regional organisations, and civil society actors. Since 2006, the PARIS21 Partner Report on Support to Statistics (PRESS) has provided the most comprehensive annual analysis of financial flows to data and statistics, supporting the global community in aligning funding with priority data needs.
PARIS21 has emphasised the need to strengthen subnational statistics to ensure no one is left behind.
In recent years, PARIS21 has emphasised the need to strengthen subnational statistics to ensure no one is left behind. National statistical offices (NSOs) face growing demand for more disaggregated, timely, and policy-relevant data – particularly at the regional and local levels. However, financial constraints and fragmented support have limited the capacity of many NSOs to collect, manage, and disseminate subnational data. To address this, PARIS21 advocates for more strategic planning, stronger data governance, and better co-ordination between donors and countries. Strengthening subnational statistics is key to understanding spatial inequalities, guiding territorial development strategies, and monitoring progress towards the SDGs in a more granular and inclusive way.
Source: PARIS21 (2022[28]).
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