 Arévalo took office on 15 March 1945 , inheriting a country with numerous social and economic issues . Despite Ubico 's policy of using unpaid labor to build public roads , internal transport was severely inadequate . 70 % of the population was illiterate , and malnutrition and poor health were widespread . The wealthiest 2 % of landowners owned nearly three quarters of agricultural land , and as a result less than 1 % was cultivated . The indigenous peasants either had no land , or had far too little to sustain themselves . Three quarters of the labor force were in agriculture , and industry was essentially nonexistent . 
