Alvaro Arzu

Arzú was elected president in a runoff election, defeating Alfonso Portillo. His victory represented a shift toward center-right politics and a mandate to pursue peace negotiations with the URNG guerrillas, which he had campaigned on.

Arzú's government implemented neoliberal economic reforms, including privatization of state-owned enterprises, trade liberalization, and fiscal austerity. These policies aimed to attract foreign investment but also increased inequality and social unrest.

Arzú signed the final peace accords with the Guatemalan National Revolutionary Unity (URNG), ending 36 years of civil war. The accords included provisions for human rights, indigenous rights, land reform, and demilitarization, though implementation was incomplete.