Guatemala is divided into 8 regions, 22 departments (states) and 331 municipalities. The government operates on three different levels: national, departmental (state), and municipal (local). The municipalities have defined and limited autonomy and the authorities such as the mayor are chosen democratically.
The constitution of the republic establishes that all qualified Guatemalans may vote and that the ultimate political power resides in the people.

Guatemala has a representative and democratic government, divided into three branches: executive (presidency), legislative (congress), and judicial (supreme court).  Each citizen over 18 has the right to vote.
The basic unit of the national legislative branch is the congress, which is composed of 158 members, all elected by a direct vote every four years.
Guatemala is currently going through a period of change. The country is looking forward positively as a result of innovative government initiatives aimed at:

• Encouraging sustained and accelerating growth with a balance in social and economic development.
• Promoting honesty and transparency in operations at every level of government.   
• Aggressively entering into commercial relationships and free trade treaties that will broaden the attractiveness of the investment climate of the country.    

All this is being accomplished through constant dialogue and continuous inclusion of all sectors of the socio-economic fabric of the country. In particular there is a strong working relationship between the public and private sectors.    
A recently implemented economic reactivation plan, named Vamos Guatemala, “Let’s Go Guatemala,” is part of the process directing the country toward sustainable development, economic growth, and the consolidation of the rule of democracy and law.

The present government, headed by President Oscar Berger, was elected in December 2003 and assumed office on January 14, 2004.  His management background, reputation for honesty, clear vision and continuous country development promotion have earned the confidence and respect of the people.  President Berger’s cabinet is in the main drawn from the private sector and is composed on individuals who have accepted the challenge of governing the country efficiently and honestly, often at great personal financial sacrifice.

Source: www.investinguatemala.org