The worldwide setting is extra fragmented, extra fragile, and extra susceptible to shocks that may generate one disaster after one other, stated the president of the Central Bank of Honduras (BCH), Rebeca Santos.
In this globalized context, “the weakest links in the chain are more unprotected and with greater risks”.
According to the official, Honduras, as one of many smallest economies within the area, “faces not only the effects of external shocks and the crises identified by the Economic Commission for Latin America and the Caribbean (ECLAC) but also a structural problem of high social, environmental, and food vulnerability”.
The president of the BCH stated that globalization had an uneven impact, deepening the scenario of poverty confronted by 70% of the Honduran inhabitants and inflicting “greater environmental fragility, deterioration of our natural resources, losses in economic and productive infrastructure, food insecurity and lag in the formation of human capital”.
In June 2022, inflation in Honduras reached double digits for the primary time since 2008. Although it has proven indicators of starting to ease in August and September, it continues to be one of many important challenges of the nationwide economic system.
“Inflation has impacted us in unsuspected magnitudes, deteriorating wages and increasing the price of the minimum basic basket of our population,” stated Santos. He spoke on the thirty-ninth session of ECLAC, which concludes tomorrow.
The official paraphrased the secretary common of the United Nations Conference on Trade and Development, Rebeca Grynspan, by indicating that “the largest percentage of this inflation comes from outside, that is, we have no control over it”.
TOWARDS SUSTAINABLE DEVELOPMENT
During the three-day assembly in Buenos Aires, Argentina, ECLAC known as on the area’s nations to boost their ambition and promote actions to advance towards sustainable and egalitarian growth.
In this area, excessive authorities of the area, researchers, world-renowned lecturers, representatives of civil society, and worldwide officers will talk about the institutional doc entitled:
“Towards the transformation of the development model in Latin America and the Caribbean: production, inclusion, and sustainability, in which the organization proposes to the countries its proposal for recovery and sustainable development in the new global and regional context.”
On this level, Santos stated throughout her digital participation that “the document integrates the central issues in terms of the challenges imposed on the Latin American and Caribbean region by a globalized economic model, weakened and in reconfiguration; increasingly frequent external shocks that have led to cascading crises, among which inflationary, climate, energy, and social crises stand out”.
The official added that this state of affairs is compounded by the aftermath of the covid-19 pandemic, “which has left a few of our nations extremely fragile when it comes to well being and, as well as, the meals safety disaster that numerous nations are already going through, not solely within the area but additionally in different elements of the world.
ACTIONS TO GUARANTEE FOOD SECURITY
Santos stated that the federal government, beneath the management of President Xiomara Castro, has been implementing numerous measures geared toward strengthening the Social Protection Network and subsidies targeted on essentially the most weak inhabitants.
In addition, others targeted on the inhabitants as a complete and the nationwide productive equipment, sustaining the dynamics of financial development, prioritizing the productive sectors that assure meals safety and a set of financial and financial measures to comprise the rising inflationary pressures “without sacrificing priorities that cannot be postponed in terms of public and private investment”.
Honduras is the one nation within the area that has not modified the financial coverage fee (TPM) within the final months to face inflationary pressures. The BCH has maintained this indicator at 3% since November 2020.
“A stable economy is important, but it should not be erected above the common welfare,” stated the official.
“Consequently, institutions must adjust their macroeconomic model, recognizing the enormous fragilities we face within our countries. Old recipes and paradigms also need to be reconfigured.”
MORE RESILIENT SOCIETIES
In his opinion, the globalization paradigm for nations like Honduras and lots of of people who make up the Latin American and Caribbean area “requires a rethinking more in line with our realities, taking the citizens as central actors in it.”
Santos proposed taking inventory to handle the fast whereas constructing resilient societies, contemplating at the very least three dimensions: financial, social, and environmental, which he thought of an agenda that can’t be postponed.
“In this sense, the proposals outlined by ECLAC are driving aspects that can boost productive and structural transformation, as well as investment and employment growth, and should be part of this medium-term regional agenda,” stated the president of the BCH.
In closing her presentation, she stated that this agenda would enable us to operate on this stage of reconfiguration of globalization, making a extra humane and inclusive studying in step with financial and social variations.
“I call on you to recognize that not all countries are in the same conditions, and the internal impacts have been of different magnitudes; in short, there are winners and losers here”.
With data from Bloomberg