Honduras’ LIBRE Proposals: Economic Risk Warnings from Business

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.

One foreign investor stated that he decided to withdraw his capital in view of the uncertainty generated by the possibility of a change in the regulatory framework and economic policy that would affect the profitability and security 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 model proposed by LIBRE argue that, if implemented, the reforms could lead to greater state intervention in the economy, limiting the participation of private enterprise and affecting investor confidence. The lack of clarity regarding the implementation of these measures has increased the perception of risk, affecting the strategic planning of local and international companies.

Socioeconomic repercussions

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.

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 current situation shows a country in which governance, institutions, and private investment are under pressure. The business sector is closely monitoring each proposal from LIBRE, assessing how it could affect the country’s economy and institutional structure, while political actors move forward with their agenda for change, with implications that have yet to be measured in terms of investment, employment, and sustainable development.