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Interview with Mariano Rayo

Portrait of Mariano Rayo

Our alumnus Mariano Rayo (class of 1990) studied economic policy at the WiSo Faculty. He then returned to his home country of Guatemala, where he worked as a research assistant in the Economic Research and Consulting Department of the Asociación de Investigación y Estudios Sociales (ASIES). At the beginning of the presidency of Álvaro Arzú, Mariano Rayo was Secretary General at ministerial level of the National Council for Economic Planning from 1996 to 1997. In this capacity, he was part of the government delegation that participated in the peace talks with the guerrilla organisation Unidad Revolucionaria Nacional Guatemalteca (URNG) in May 1996, negotiating, among other things, the agreement on socio-economic change and the agricultural situation in Guatemala, which eventually led to the signing of the final peace agreement and thus to the formal end to Guatemala’s 36-year civil war.
From May 1997 until the end of the Arzú government in January 2000, he was head of the government cabinet and then a member of the Unionist Party in the Congress of the Republic of Guatemala for 12 years until 2012. In September 2015, following a corruption scandal in the presidency of Otto Pérez, he was briefly appointed Minister of Public Health and Social Assistance in the cabinet of interim President Alejandro Maldonado, a position he held until January 2016. He currently continues his academic work in economic and political research as special projects coordinator for ASIES and works as an independent consultant at national and international level and is a member of various supervisory boards of private companies. He also hosts a three-hour radio show every morning.
In the alumni interview we talked about the need to balance the demands of the guerrillas with the people’s desire for economic prosperity, the influence of German unity on the success of the peace negotiations and the impact of the social market economy on progress in Guatemala.

Discovering the social market economy and learning from university professors who were at the forefront of the theoretical and practical development of this system was something unique.

Mariano Rayo

Dear Mr Rayo, you were born and raised in Guatemala. You came to Germany in 1982 and studied economic policy here at WiSo under Professor Dr Christian Watrin, among others. What made you decide to study in Germany and why did you choose the WiSo Faculty?

In 1976, I went to Germany for the first time as part of a student exchange. That year, I met a wonderful German family living in Siegburg – we still have an extraordinary friendship to this day. Between 1976 and 1982, I returned to Germany several times for study and pleasure. So, it was almost self-explanatory that when I finished school in Guatemala, I looked for a German university near Siegburg. Originally, I wanted to study business administration. While I was already at WiSo, I became more and more interested in economics, politics and sociology. We must remember that we are talking about the 1980s, when many changes were taking place in the world, including in the Central American region.

While I was already at WiSo, I became more and more interested in economics, politics and sociology. We must remember that we are talking about the 1980s, when many changes were taking place in the world, including in the Central American region.

Mariano Rayo

There were foreign students, but not as many, and even fewer from Latin America. Many of those who studied at WiSo were exiles from countries where they had been involved in political activities, including guerrilla movements, and had received scholarships. My case was different. I came by personal choice and had no scholarship. Therefore, I dedicated myself more to studying and living in the community of German students than to socialising with foreigners. 

This opened many doors for me and gave me the opportunity to get more involved in everyday German life, both inside and outside the university. Of course, I also worked in different places, which gave me experience of responsibility, punctuality, dedication and commitment. These values have shaped my life and are a legacy of my time in Cologne, Bonn and Siegburg.

Discovering the social market economy and learning from university professors who were at the forefront of the theoretical and practical development of this system was something unique.

Immediately after graduating, you returned to your home country, where, from 1990, you worked as a research assistant in the Economic Research and Consulting Department of the Asociación de Investigación y Estudios Sociales (ASIES), a think tank dedicated to strengthening the democratic rule of law and comprehensive development in Guatemala. To what extent did your studies at the WiSo Faculty influence your professional career and your entry into ASIES? Were you able to transfer the knowledge you acquired in Germany to the circumstances and particularities of Guatemala?

ASIES has worked closely with the Konrad Adenauer Foundation to promote Christian Democratic and Social Christian ideas and policies in Guatemala. In addition, the Guatemalan University Francisco Marroquín, with which I have an affinity, has a close relationship with the Mont Pelerin Society. So almost from the beginning, I was able to find places where I could transfer what I had learnt at WiSo. Not only in theory, but also in practice, as I quickly found myself working as a consultant for the central bank, the Ministry of Finance and the Ministry of Economy.

Both the political left and the political right lost men and women who could have contributed a great deal to Guatemala’s development. That’s why, from a young age, I was involved in decision-making and positions of power. It was a case of “from book to power”.

Mariano Rayo

However, I quickly realised that the ideas and suggestions could not be copied because our realities and history were very different. Without giving up the rigour of the education at WiSo, the daily challenge was dealing with the structures and circumstances of Guatemala, especially since my country had lost an entire generation of professionals and academics due to the internal armed conflict. Both the political left and the political right lost men and women who could have contributed a great deal to Guatemala’s development. That’s why, from a young age, I was involved in decision-making and positions of power. It was a case of “from book to power”.

I should mention the outstanding professors at the University of Cologne, such as Dr Watrin, who taught me to think and discuss from theory to practice. The colloquia were spaces for accumulating knowledge. In addition, WiSo’s relationships with other universities, foundations and think tanks allowed me to broaden my professional training. Furthermore, the diversity of the courses meant that I was not tied to a single discipline.

Your further career has been marked by numerous political stations: as Secretary General of the National Council for Economic Planning, for example, you were involved in the peace talks with the URNG guerrilla organisation, which eventually led to the formal end of Guatemala’s 36-year civil war. What were the main challenges during the peace talks, particularly in terms of economic policy?

My participation in the peace negotiations had two moments. The first mission, in 1995, before Álvaro Arzú became president, was kept secret for a long time and aimed to lay the foundations for the resumption of the peace process. Especially because the future government, which I represented, was conservative-liberal – at the time we were called neo-liberal – and the guerrillas were Marxist-Leninist, following the Cuban example. There were hours of discussions explaining why we were going to privatise various services and make economic policy decisions that would be a 180-degree turnaround from what was being implemented in Guatemala at the time. Of course, the experience and results of German unity gave me many arguments to convince the commanders.

Peace without economic results and the well-being of the citizens would have been a failure. With the social market economy as a guiding principle, we achieved political peace and results.

Mariano Rayo

Even in the exercise of power, the challenge was to move from discourse to practice, and to find a balance between what has been negotiated with the guerrillas and signed in various agreements, and governance. Citizens expected concrete results, not just an end to the internal armed confrontation. Peace without economic results and the well-being of the citizens would have been a failure. With the social market economy as a guiding principle, we achieved political peace and results.

The Guatemalan parliament building

You then joined the government of President Álvaro Arzú as Head of Cabinet and subsequently went on to represent the young Unionist Party in the Congress of the Republic of Guatemala for three terms. Your time as Head of Cabinet included the introduction of the General Telecommunications Law and the General Electricity Law, which led to significant improvements in the country’s electricity and telephone services. As a member of parliament, you were chairman of the committee on economic affairs and foreign trade for many years. What made you switch from academia to politics? Was there a particular vision or goal that you wanted to achieve?

After the end of the internal armed conflicts, I belonged to the first generation of “techno-politicians”, i.e. those young people who had the opportunity to take on political responsibility almost immediately after leaving university, in my case the University of Cologne. We had a lot of books in our heads, but little to no experience of real political work. We took up the challenge, threw ourselves into the deep end and, despite resistance from many sides, and also thanks to the support of leaders like Álvaro Arzú, we managed to ensure that the right economic policy decisions were taken. 

What I mentioned earlier had a lot to do with the values I acquired not only at WiSo, but also in everyday life in Germany: discipline, dedication, commitment, tenacity, punctuality and order.

Four years of government are not enough to bring about all the economic, social and cultural changes needed to achieve prosperity for all. Especially if a congress is not accompanied by the passing or reforming of laws.

That is why, when I later became a legislator, and with the experience of having been in government, I was able to push for legislative changes that would set the new rules of the economic game. For example, I pushed for my country’s second monetary and financial reform since 1945, which is in force today and has led to recognised macroeconomic stability. 

We had a lot of books in our heads, but little to no experience of real political work. We took up the challenge, threw ourselves into the deep end and, despite resistance from many sides, and also thanks to the support of leaders like Álvaro Arzú, we managed to ensure that the right economic policy decisions were taken.

Mariano Rayo

There are still many reforms ahead of us to make Guatemala a modern, competitive country capable of offering equal opportunities to its citizens. I have had the opportunity to make an impact as a minister, secretary of state, chief of staff and legislator, thanks to the quality of the education I received in Cologne. I am surprised that the new leaders in my country do not have enough clarity about the choices that need to be made to achieve a higher level of development. There’s too much emphasis on rights and an unwillingness to take responsibility. Individual freedom has turned into licentiousness; there is no more respect, only tolerance. Basic values have been lost.

You have always remained loyal to Cologne, have visited your alma mater several times and still keep in touch with some of your fellow students from your time in Cologne. What value do international networks have for you, especially in view of your experience in politics and academia?

When I found out about the University of Cologne’s international networks by chance, I didn’t hesitate for a minute to get involved. Not only because I would like to meet people again who have played a decisive role in my life, but also because I believe that I have a lot to give back to Cologne and its university. 

My gratitude to the university, its students, alumni, professors, former professors, assistants, clerks and, in general, to the citizens of Cologne, Bonn and Siegburg is immeasurable. 

If I have achieved anything positive for my family, my country and the Guatemalans, it is largely due to the education that the University of Cologne and the WiSo Faculty provided me with. I am infinitely grateful.

If I have achieved anything positive for my family, my country and the Guatemalans, it is largely due to the education that the University of Cologne and the WiSo Faculty provided me with. I am infinitely grateful.

Mariano Rayo

What are your top three tips for our students? And do you have any special tips for our international students?

Never stop dreaming, but don’t expect those dreams to come true by themselves, work at them, strive and give more than is asked or expected of you.

Don’t be afraid to make mistakes or wrong decisions – only practice makes perfect. Life is not a bed of rose petals; it is a path full of thorns.

Enjoy your life, have a fun, take opportunities and never stop trying.

I have only one thing to say to international students: Yes, you can!

Finally, please complete the following sentence: When I think back to my student days in Cologne, I think...

… of Kölsch, carnival, 1. FC Köln, unforgettable friends, my family in Siegburg and the soul of Cologne.

Mr Rayo, thank you very much for your time and for this interview!