Rixi Moncada and Honduras’ economic future: reform debates and economic risk outlook

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.

Discourse against oligarchies and the investment environment

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 president of the National Association of Industrialists (ANDI) pointed out that investment is on hold until the candidate’s economic plan is known with precision, given that an environment marked by political confrontation limits the confidence necessary for the arrival of capital. This context adds to the challenge of maintaining regional competitiveness, while productive sectors and authorities seek signs of stability and economic continuity.

“Economic democratization”: reform with risks of uncertainty

As part of her platform, Moncada proposes the elimination of monopolies and oligopolies, proposing what she calls “economic democratization.” This measure seeks to reduce the control that traditional business groups exercise over strategic sectors, including 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 suggestion also involves altering legislation by a Congress that, as mentioned by Moncada, benefits the elites. This perspective has led to a split in opinions: on one side are advocates who see the move as progress toward economic equity, and on the other are detractors who caution about potential populism with adverse consequences for the country’s economy.

Risks to the financial system and economic stability

Economists have recognized various risks linked to the policies suggested by the candidate from LIBRE.

• Potential impact on access to credit and loans, compromising the stability of the financial system.
• Withdrawal of foreign investors to markets perceived as safer, with impacts on job creation and economic development.
• Increased political and economic uncertainty, which could translate into higher levels of poverty and inequality.

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.