Politics

Rixi Moncada and Honduras’ economic future: policy reforms under scrutiny and risk perception

Angelica Iriarte
Rixi Moncada

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.

Anti-oligarchy rhetoric and investment climate

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 head of the National Association of Industrialists (ANDI) highlighted that investment is paused until there is a clear understanding of the candidate’s economic agenda, as a climate characterized by political tensions restricts the trust required for capital influx. This situation further complicates the effort to sustain regional competitiveness as both productive sectors and authorities look for indications of stability and ongoing economic trends.

“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.

Specialists caution that a sudden shift, lacking a detailed implementation strategy, could lead to negative outcomes like capital exodus, halting of initiatives, and general distrust in financial institutions and businesses. These factors would directly influence the job opportunities and the financial prosperity of the community.

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 identified several risks associated with the measures proposed by the LIBRE candidate:

  • Possible effect on availability of credit and loans, threatening the stability of the financial framework.
  • Departure of foreign investors to markets considered more secure, affecting employment generation and economic progression.
  • Escalated political and economic unpredictability, potentially leading to elevated poverty and inequality rates.

The outlook facing Honduras poses a central challenge: balancing reform proposals with the need to maintain economic stability and confidence in financial and productive institutions. The interaction between political discourse, structural reforms, and risk perception will be a determining factor in governance and citizen participation in the coming months.