Corruption crisis risks broad fallout in Guatemala

Significance

On May 8, Vice-President Roxana Baldetti resigned, following high-profile allegations that she was involved in a corruption network linked to the national tax agency. However, her resignation has not defused the situation, with major protests on May 16-17 calling for Perez Molina's departure.

Impacts

• Public protests will continue and may increase in frequency before September elections, given public frustration with the political elite.
• The Perez Molina administration will now focus on trying to minimise the damage done by the corruption scandal.
• It will thus have little attention to spare for attempting to progress its legislative agenda in its final months in office.
• Longer-term, corruption revelations and the unprecedented public response may drive further anti-corruption initiatives.