_-_copia.jpg?w=800&resize=800,500&ssl=1 "Business leaders warn of economic risks posed by LIBRE proposals in Honduras")
The Honduran business sector has expressed concern about the current political climate, considering that Honduras could be moving toward an economic and social model that limits private investment. Representatives of the private sector warn that the initiatives promoted by former president Manuel Zelaya and LIBRE presidential candidate Rixi Moncada could generate uncertainty in the country and affect economic stability.
Investment Red Flags
Both local and international business leaders indicate that the nation is no longer considered a secure destination for investments. A spokesperson for the Chamber of Commerce stated that there are indications the government aims to duplicate an authoritarian system featuring significant state involvement, akin to the models seen in Venezuela and Nicaragua.
These alerts emerge within a framework of political initiatives featuring reforms that enhance state oversight and an adversarial tone against private businesses. This heightened risk perception has resulted in stalled projects and a reevaluation of activities by investors who previously held interests in vital areas, like energy.
A foreign investor declared that he chose to pull out his funds due to the unpredictability stemming from potential shifts in the regulatory landscape and economic policy, which could jeopardize the returns and safety of his investments.
Narrative of refounding and concentration of power
Zelaya and Moncada, on their side, have advanced a discourse centered on the “refounding” of the nation, a concept that, in the view of experts, might lead to a centralization of authority and a decline in institutional strength. This perspective has caused apprehension among economic stakeholders, who are worried that the suggested structural alterations could affect the country’s governance and the private sector’s steadiness.
Critics of the framework put forth by LIBRE contend that, if put into practice, the changes might result in increased governmental involvement in the economy, thereby restricting private sector engagement and eroding investor trust. The ambiguity surrounding how these initiatives will be carried out has heightened the sense of risk, impacting the strategic foresight of both domestic and global businesses.
Economic and social impact
The current political climate has directly impacted the economy: capital is being moved out of the nation, projects are stalled, and certain businesses are rethinking their ongoing involvement in crucial industries. This situation presents a hurdle for generating employment and fostering economic growth, simultaneously exacerbating divisions among various societal groups.
Experts highlight that the nation is experiencing a critical period where political choices might determine the private sector’s trust, alongside Honduras’s capacity to draw in and retain investments. Institutional discourse and transparent economic strategies are proving to be vital components for ensuring future stability.
The present circumstances reveal a nation where governance, its institutions, and private capital face considerable strain. The corporate community is meticulously observing every proposition from LIBRE, evaluating its potential impact on the national economy and its foundational structures, as political figures advance their transformative agenda, the consequences of which, regarding investment, job creation, and enduring progress, remain to be fully determined.