Honduran
Post-Coup Government Optimistic
About Overcoming Economic Difficulty
Honduras - Economists
have estimated that the political crisis in
Honduras could deepen the country's
recession, but the post-coup authorities
seem quite optimistic about its ability to
overcome the difficulty.
Honduras-based economists, who had predicted
a 1-percent decline in the country's gross
domestic product (GDP) before the June 28
coup, said the political crisis could result
in a two-digit drop in the country's GDP.
Figures in the Honduran business circle have
said that the country has lost some 100
million U.S. dollars in trade due to highway
closures and other protests that have taken
place since June 28, when President Manuel
Zelaya was ousted to Costa Rica in a coup.
The nation's main aid contributors have
frozen their promised cash. The European
Union suspended 65 million euros (93 million
dollars) in aid it pays directly to the
Honduran government, while the United States
has halted 16.5 million dollars in military
assistance.
The political crisis has also dealt a blow
to tourism. European airliners have
suspended planned flights to the Caribbean
islands belonging to Honduras, and hotel
occupancy rates are some 40 points lower
than the average of past years, according to
Ana Abarca, who is in charge of tourism in
the post-coup government.
U.S. clothing firms that own factories in
Honduras have said the political crisis is
hurting them too.
Last week, companies including Nike, Adidas
and Gap jointly sent a letter to U.S.
Secretary of State Hillary Clinton, calling
for a swift return to democracy in Honduras.
"We are deeply worried by the continuation
of violence if the dispute is not
immediately resolved," the letter said.
Honduras was plunged into a political crisis
when Zelaya was forced into exile after some
200 soldiers surrounded his official
residence and forced him to board a plane to
Costa Rica on June 28.
The Congress appointed Roberto Micheletti as
the country's acting president.
A referendum scheduled for the same day to
change the country's constitution put Zelaya
at odds with the military, the courts and
the legislature.
The opposition accused Zelaya, whose current
term expires next January, of seeking
reelection through the referendum, while the
Supreme Court and the attorney general said
that the vote was illegal.
The coup, however, has failed to win
international recognition. Both the United
Nations and the Organization of American
States (OAS) have condemned the coup and
called for an immediate reinstatement of
Zelaya.
Costa Rican President Oscar Arias Sanchez
has tried to broker a deal between Zelaya
and the interim government, but the latter
has repeatedly refused Zelaya's return to
serve out his presidency.
Micheletti, who heads the interim
authorities, said the nation can survive the
economic difficulties as it has enough basic
foodstuff.
He told media last week that his government
had sufficient foodstuff for the next six
months.
"Basic grains in the country will last until
February of next year, possibly March, so we
are not afraid of being hit by shortages,"
he told media.
"Private companies, who support the country,
have said they are going to freeze prices
for the basic basket of goods ... for as
long as is necessary," he said.
He also said Honduras was "proud" to resist
international isolation and that he believed
the political crisis would soon be solved.
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