The international environment is more fragmented, more fragile and more prone to shocks that can generate one crisis after another, said the president of the Central Bank of Honduras (BCH), Rebeca Santos.
In this globalized context, “the weakest links in the chain are the most vulnerable and with the greatest risks”.
According to the official, Honduras, as one of the smallest economies in the region, “faces not only the effects of external shocks and crises identified by the Economic Commission for Latin America and the Caribbean (ECLAC), but also a high structural problem . social, environmental and food vulnerability”.
The president of BCH said that globalization had an asymmetric effect, deepening the poverty situation faced by 70% of the Honduran population and causing “greater environmental fragility, deterioration of our natural resources, loss of economic and productive infrastructure, insecurity food and delay. in the formation of human capital”.
In June 2022, inflation in Honduras reached double digits for the first time since 2008. Although it has shown signs of beginning to ease in August and September, it continues to be one of the main challenges of the national economy.
“Inflation has affected us in unquestionable proportions, worsening wages and increasing the price of the minimum basic basket of our population,” said Santos. He spoke at the thirty-ninth session of ECLAC, which ends tomorrow.
The official paraphrased the secretary general of the United Nations Conference on Trade and Development, Rebecca Grynspan, indicating that “the largest percentage of this inflation comes from abroad, meaning we have no control over it.”
TOWARDS SUSTAINABLE DEVELOPMENT
During the three-day meeting in Buenos Aires, Argentina, ECLAC called on the countries of the region to raise their ambitions and promote action to advance towards sustainable development and equity.
In this space, high authorities of the region, researchers, world-renowned academics, civil society representatives and international officials will discuss the institutional document entitled:
“Towards the transformation of the development model in Latin America and the Caribbean: production, inclusion and sustainability, in which the organization proposes to countries its proposal for recovery and sustainable development in the new global and regional context.”
At this point, Santos said during her virtual participation that “the document integrates the central issues regarding the challenges posed in the Latin American and Caribbean region by a globalized, weakened and reconfiguring economic model; More and more frequent external shocks that have led to cascading crises, among which the inflationary, climate, energy and social crises stand out.
The official added that this scenario has been complicated by the consequences of the Covid-19 pandemic, “which has left some of our countries very fragile in terms of health and, in addition, the food security crisis that a number of big places , not only in the region but also in other parts of the world.
ACTIONS TO GUARANTEE FOOD SAFETY
Santos said the government, under the leadership of President Xiomara Castro, has implemented various measures aimed at strengthening the Social Protection Network and subsidies focused on the most vulnerable population.
Also, others focused on the population as a whole and the national productive apparatus, maintaining the dynamics of economic growth, giving priority to productive sectors that guarantee food security and a series of monetary and fiscal measures to curb the growing inflationary pressures “without sacrificing priorities “. that cannot be postponed in terms of public and private investments”.
Honduras is the only country in the region that has not modified the monetary policy rate (MPR) in recent months to deal with inflationary pressures. BCH has maintained this indicator at 3% since November 2020.
“A stable economy is important, but it should not rise above the common welfare,” the official said.
“Consequently, institutions must adjust their macroeconomic model, recognizing the great fragility we face within our countries. Old recipes and paradigms also need to be reconfigured.”
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In his opinion, the paradigm of globalization for countries like Honduras and many of those that make up the Latin American and Caribbean region “requires a rethinking more in line with our realities, taking citizens as central actors in it”.
Santos proposed to take stock to address the immediate issue of building resilient societies, taking into account at least three dimensions: economic, social and environmental, which he considered an agenda that cannot be postponed.
“In this sense, the proposals outlined by ECLAC are driving aspects that can promote productive and structural transformation, as well as increased investment and employment, and should be part of this medium-term regional agenda,” said the BCH president.
At the end of the presentation, she said that this agenda would enable us to function in this phase of the reconfiguration of globalization, making a more humane and comprehensive reading in line with economic and social differences.
“I urge you to accept that not all countries are in the same conditions and the internal influences have been of different sizes; in short, there are winners and losers here.”
With information from Bloomberg
