Santiago's Entrepreneurial Journey in Guatemalan Paper Manufacturing Industry

Support from the Guatemalan Government

Santiago, a Guatemalan entrepreneur, has embarked on a journey to start his own local paper-manufacturing company. However, he faces challenges in competing with international paper mills that already sell to businesses in Guatemala. To assist Santiago in overcoming these challenges and to bolster the local paper-manufacturing industry, the Guatemalan government has stepped in with crucial support measures.

Imposed Tariffs on Imported Paper

In order to protect and promote local production, the Guatemalan government has imposed tariffs on imported paper. By making imported paper more expensive, this action encourages businesses like Santiago's to source materials locally, thereby stimulating the growth of domestic industries.

Extended Credit for Purchasing Up-to-Date Equipment

Recognizing the importance of modern equipment in enhancing productivity and competitiveness, the Guatemalan government has extended credit to Santiago. This financial support enables Santiago to invest in up-to-date machinery, which can improve the efficiency and quality of his paper-manufacturing operations.

Import Substitution Industrialization

Import substitution industrialization is the economic policy exemplified by the Guatemalan government's support for Santiago. This strategy aims to promote local production of goods by reducing reliance on imports. By encouraging domestic industries to manufacture goods that were previously imported, countries like Guatemala can boost their economy, foster industrialization, and achieve rapid growth and development.