Jan. 14 (Bloomberg) -- Alvaro Colom, Guatemala's new president, took office pledging to fight poverty and help the country's most disadvantaged citizens by reducing crime and building housing.

``I thank God that Guatemala got the chance for the first time in 50 years to change to a social democratic government,'' he said today after being sworn in. ``I'm convinced that by giving to those who have the least, we will all have more.''

Colom, 56, has said his government will fight poverty, inequality and violence, all of which threaten the country's future. He will try to sustain the current economic expansion, which has accelerated to more than 5 percent in the last two years, according to estimates by Moody's Investors Service.

The World Bank's most recent data on Guatemala shows 56 percent of the population was below the poverty line in 2000, meaning they don't make enough income to meet their basic needs. Moody's expects the Central American country to grow 4.8 percent this year.

Guatemala also has one of the world's highest per-capita murder rates, with more than 5,000 killings a year. More than 40 candidates and activists were killed during the first round of the presidential elections.

``Fitch expects the government to do something to reduce crime, the violence, that could be a problem to investors,'' Theresa Paiz-Fredel, a senior sovereign debt analyst at Fitch Ratings in New York, said in an interview with Bloomberg Television on Jan. 11.

Fighting Crime

Colom said he would implement a 100-day plan to improve security as part of efforts to reduce crime. He pledged to build 200,000 houses for poor Guatemalans, and work to protect the environment.

``Today, we are starting to give more privileges to the poor, those without opportunities,'' Colom said.

Colom, an engineer, is the first social democrat to lead the country since Jacobo Arbenz was overthrown in a 1954 coup supported by the U.S., ushering in decades of military rule and repression.

Foreign direct investment in the $35.6 billion economy has more than doubled to $535.8 million in 2007 from $226.8 million in 2005, Julio Suarez, vice governor of the country's monetary board and central bank, said in a Jan. 10 interview. Suarez expects foreign investment to reach $616 million this year.

Moody's is considering raising the Guatemalan's foreign debt rating to Ba1, one level below investment grade, from Ba2, analyst Gabriel Torres said in a Jan. 10 interview with Bloomberg Television in New York.

Torres said that any increase to the rating will depend on how Colom performs in his first months on the job. Sustaining the current growth pace will be a key issue for Moody's decision, he said.

Torres said fiscal reform that raises tax collection, current at about 12 percent of gross domestic product, would be a great achievement for the new government. The lack of revenue threatens efforts to fight poverty and violence, he said.

To contact the reporter on this story: Andre Soliani in Guatemala City at asoliani@bloomberg.net; Karla Palomo in New York at kpalomo@bloomberg.net

Last Updated: January 14, 2008 19:00 EST