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model that is successful in benefiting the few and preserving low cost and extensive manpower. Unlike its north neighbor Mexico and other countries, Guatemala could never achieve an agrarian reform that could dismantle the basis of this historic economic model. The history from 1839 to 1945 is a history of military dictatorships and great influence of the catholic church and an oligarchy formed by European descendants (Spaniards, German and North Americans), which established its power in the capital of Guatemala thanks to their domain and big property on natural resources, and the process of colonization of the southern lands of the pacific rim (1950), where they established the crops of cotton, sugar and nowadays palm and bananas. The strategy of colonization of the southern region was also based on the formula: land domain and migration of the indigenous and ladino population, mainly coming from the western highlands: that’s is the explanation of why the resources and main assets are concentrated, producing an extreme persiting inequality. The absence of democracy and the extreme social injustice, paved the road for a democratic spring between the decade of 1944 and 1945. During this period, progressive citizens supported by a democratic social oriented faction of the Guatemalan Army, gain power through clean elections after a long era of dictatorships and frauds. They were inspired by social changes throughout the continent and mainly by the Rerum Novarum Papal Encyclical that called for 7 a fairer distribution of the land and the need to grant labour rights. During this era, Guatemala created important reforms as adopting a Labour Code, establishing a basic non-universal social security system, and other social reforms. Caught within the whirls of the Cold War era, the anticommunist fever and fear headed by the United States it was obvious, that when the democratic government aimed to generate land reforms that affected the interests of the elite and the transnational companies, a coup would end this era. And so it did, throwing Guatemala into a 36 year long period of internal armed conflict, that shattered the lives of more than 250,000 people most of them civilians and non-fighters. The low intense armed conflict was characterized by grave human rights violations, the installation of forced disappearance and genocide acts against the indigenous communities. Truth Commissions have evidenced that at least 80% of the victims where non combatant ones. The internal armed conflict was contrary to popular believe, not generated by a group of rebel communist peasant or indigenous movements financed by the late USSR. It originated within the own Guatemalan Army where a group of social oriented high-ranking officers opposed North American interventions, absence of democracy and an end to social injustice. Later, trade unions, peasants, university students and teachers and people from diverse socioeconomic backgrounds embraced the movement. The armed conflict ended with the signature of the Peace Agreements in 1996.