Honduras’ LIBRE Proposals: Business Leaders Warn of Economic Risks

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.

Warning signs for investment

Domestic and foreign business leaders point out that the country is no longer perceived as a safe haven for capital. According to a representative of the Chamber of Commerce, there are signs that the government is seeking to replicate an authoritarian model with strong state intervention, similar to that implemented in Venezuela and Nicaragua.

These warnings arise in a context of political proposals that include reforms with greater state control and a confrontational discourse toward private enterprise. The perception of risk has led to the paralysis of projects and the reconsideration of operations by investors who previously had a stake in strategic sectors, such as 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 political situation has had a direct effect on the economy: capital is being relocated outside the country, projects are on hold, and some companies have reconsidered their continued presence in key sectors. This scenario poses a challenge for job creation and economic development, while intensifying polarization between different sectors of society.

Analysts emphasize that the country is facing a tense moment in which political decisions could define the confidence of the private sector, as well as Honduras’s ability to attract and maintain investment. Institutional dialogue and clarity in economic policies are emerging as crucial elements for 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.