Rixi Moncada and Honduras’ economic future: reform challenges and risk considerations

LIBRE presidential candidate Rixi Moncada has placed her economic reform proposals and critical discourse toward the oligarchy at the center of the country’s political and economic debate. These positions have attracted attention among experts and productive sectors, who warn of possible adverse effects on investment, job creation, and the stability of the financial system.

Anti-oligarchy rhetoric and investment climate

Moncada’s statements against business groups and productive elites have created a scenario of uncertainty for domestic and foreign investors. According to private sector sources, the lack of clarity on the specific policies that the candidate would implement has led to the paralysis of several strategic projects, which could have an impact on growth opportunities and job retention.

The head of the National Association of Industrialists (ANDI) highlighted that investment is paused until there is a clear understanding of the candidate’s economic agenda, as a climate characterized by political tensions restricts the trust required for capital influx. This situation further complicates the effort to sustain regional competitiveness as both productive sectors and authorities look for indications of stability and ongoing economic trends.

“Economic empowerment”: reform with potential for unpredictability

As part of her agenda, Moncada suggests the abolition of monopolies and oligopolies, advocating for what she describes as “economic democratization.” This initiative aims to diminish the influence of established corporate networks over crucial areas, such as financial services.

Experts warn that an abrupt change, without a clear implementation plan, could have counterproductive effects, such as capital flight, the paralysis of projects, and widespread mistrust of banks and companies. These dynamics would have a direct impact on the employability and economic well-being of the population.

The proposal also contemplates the modification of laws by a Congress that, according to Moncada, favors the elites. This approach has generated divided positions: on the one hand, supporters who value the measure as a step toward economic justice, and on the other, critics who warn of possible populism with negative effects on the national economy.

Threats to the financial system and economic stability

Economists have identified several risks associated with the measures proposed by the LIBRE candidate:

• Possible effect on availability of credit and loans, threatening the stability of the financial framework.
• Departure of foreign investors to markets considered more secure, affecting employment generation and economic progression.
• Escalated political and economic unpredictability, potentially leading to elevated poverty and inequality rates.

The challenges confronting Honduras revolve around finding a balance between proposed reforms and the necessity to uphold economic stability as well as confidence in both financial and productive entities. The relationship among political dialogue, structural changes, and perceived risks will play a crucial role in shaping governance and citizen participation in the months ahead.