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NATIONAL NEWS |
| Monday, July 31, 2006 Online Edition 28 |
Blocking of roads prompts reaction from the government Anette Emanuelsson A man protesting against the open-air mining in Santa Rita del Real in Olancho, where some minor demonstrations were carried out last Tuesday.
Financial institutions analyzed by Fitch Ratings Shirley Villalobos
Triumph week for the "merienda escolar" Gillian Arthur Courtesy of the Presidential Palace
Utila to host world festival of electronic music
The 10th annual Utila Sun Jam will be held on Saturday, August 5th. The festival will have an international line-up of techno DJs and is expected to draw fans from all over the world. The festival will begin at 12 pm Saturday and continue until 12pm on Sunday. The location for the concert will be on the uninhabited island of Water Cay, just off the coast of Utila.
Can Roatan maintain the most pristine coral in the Caribbean? Christopher Heffernan
Archive/Honduras This Week
Reefs at risk Economic Impacts Problems on Roatan A Way Forward
Courtesy of Ove Hoegh-Guldberg,University of Queensland
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Health contracts ending Indefinite suspension of classes causes protest La Tribuna to be distributed in the US |
| Monday, July 24, 2006 Online Edition 27 |
Bus crash causes crises in Honduras' public transit Christopher Heffernan
Anette Emanuelsson/Honduras This Week Electricity company trying Anette Emanuelsson
The electrical substation by Via Olimpica in Tegucigalpa which transfers power from the power stations to the consumers.
Golden era of Trujillo revealed in photos Wendy Griffin
United Fruit Company employee shows banana bunches to be loaded on the ship, circa 1929
Natural disasters weakening national economy Veronica Wood-Querales
Courtesy of NOAA
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Controversy in the Presidential Palace Teachers strike in seven departments The Health Ministry is behind in payments The health minister is behind in payments
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| Monday, July 17, 2006 Online Edition 26 |
Debt relief gives Honduras a chance to escape poverty cycle
Christopher Heffernan
Old man working to survive in the impoverished village of La Pintada, near Copán Ruinas.
On July 1st, the World Bank announced the cancellation of part of Honduras' debt. While nearly everyone in Honduras applauds this move, controversy has arisen over how the money will be spent. Honduras was eligible for debt relief under the Highly Indebted Poor Countries (HIPC) Initiative. Over the next fifteen years, Honduras will have $1.293 billion of its $5.5 billion debt forgiven by the multilateral lending institutions. It is expected that this money will be used to promote development and alleviate poverty. "Additional debt relief will help Honduras channel resources into programs that directly help the people who need it most," said Paul Wolfowitz, President of the World Bank. However, not everyone is as positive. Raf Flores is the Coordinator of FOSDEH, an organization whose goal over the past 11 years has been the cancellation of Honduras's debt. While he welcomes the relief, Flores is not so optimistic about how the money will be spent. According to Flores, only Lps. 700,000 of the Lps. 2,700,000 in debt relief for 2006 will be spent on poverty reduction. The rest will go to pay for President Zelaya's recent electoral campaign and "other special interests." "They don't have a plan for the use of the resources, they lack a strategy," continued Flores, who believes that the money should be immediately invested in reducing poverty. He is not in agreement with Honduras' Poverty Reduction Strategy Paper (PRSP), which he says, "has not diminished poverty." In fact, Flores argues that, while Honduras experienced growth of 4-5% last year, poverty actually increased. He cites statistics from the Economic Commission for Central America, which put Honduras' poverty rate at 65%. "This signifies a concentration of wealth," he says, which he blames on market liberalization policies that Honduras has undertaken as part of its PRSP. "It is simply that we lose productive capacity… the significance [of the PRSP] is loss of production, loss of jobs, loss of income." Flores' assessment of Honduras' poverty statistics is challenged by Florencia Castro-Leal, who is a Senior Economist at the World Bank's Nicaragua Country Office. Leal, along with associates at the World Bank, has just completed a poverty assessment of Honduras. "No, poverty didn't change… but what you can say is basically there has been very little growth, very little recent growth in per capita terms, and basically no change in poverty," she commented. The difference between the World Bank's and FOSDEH's statistics likely arise from how they measure poverty and where they place the poverty line. To explain Honduras' current situation, Leal spoke of 'virtuous' and 'vicious' cycles of development. Those in the virtuous cycle experience sustained growth, while those in the vicious cycle experience sustained poverty. "This is one of the countries where we think this is basically an example of that vicious cycle. That there's low growth, there's high poverty, and high poverty actually has an impact on growth," said Leal. Like Flores, she would like to see additional money going to poverty reduction and capacity building. "What we have seen is that public spending is probably the most significant or powerful instrument to reduce inequality," she added, emphasizing that spending should be focused on primary services like health and education. However, Leal is quick to point out that public spending can easily be wasted. She argues that waste and corruption are to blame for the government's failure to fulfill its PRSP. "What we found is that from the social spending and the PRSP spending only about one half goes to the poor. So it's not very well targeted… Also, in addition to being better targeted, it needs to improve its quality." "There needs to be a consolidation of programs. There needs to be a much more clear link between the spending and the targets... because what we see now is that the targets are not being achieved."
Poverty reduction and cultural promotion on French agenda
Courtesy of the French Embassy For the grand majority of countries July 14 passes unnoticed, but for the French this is a day of great national importance and in Honduras, the French Ambassador plans to celebrate despite being thousands of miles from home. There are approximately 300 French nationals registered in Honduras today, quite a small number when one considers that French-Honduran relations first materialized nearly 150 years ago. This history of inter-dependence has led to a stable and consistent political relationship between the two governments, a relationship so strong in fact that Jacques Chirac was the first State Leader to visit a devastated Honduras after Hurricane Mitch in 1998. At that time, Honduras' national debt was estimated at $30 million and France pledged to do all in its power to cancel this huge deficit. Not surprisingly, according to the Ambassador Frederic Basaguren, the cancellation of Honduran debt and the relief of poverty remain top of the French list of priorities. "About 65% of the Honduran population earn less than $2/day. France aims to combat this extreme poverty and in effect transform the country. We have made a lot of progress and it will continue." The quest to alleviate the suffering of the poor in Honduras has taken many forms, but is essentially centered on the amelioration of training facilities within the country and thus is an attempt to help Hondurans help themselves. France has taken positive action in favor of the permanent training of police, an important step considering the reported level of corruption within the police force. Through reinforcing the police structure, the hope is that the police will come to depend more on civil power than on the army and will thus become a more effective entity. Basaguren insists that a main French focus is the battle against drugs, a problem rife in the grand majority of Central American countries. Yet French pro-activism does not stop here. There is in fact a French high school in Tegucigalpa, and despite the small numbers, its importance for the promotion of French-Honduran unity cannot be overstated. Each year approximately ten students are given the opportunity to study for a French diploma, an invaluable opportunity given the power of education. Reinforcement of social cohesion and the promotion of integration between the countries of Central America has its limits, yet coupled with greater political co-operation and the promotion of a free trade zone, the French government is confident that the future for Honduras is bright. Basaguren's role in Honduras however is not a solitary one. He works in perfect harmony with his European colleagues, as one of Europe's principal policies is the development of third world countries. It is in fact through the European Union that the greatest amount of French capital and co-operation is provided. Undeniably, social and economic conditions in Honduras have improved rapidly and despite the forthcoming presidential elections in France, Basaguren confirmed that France's role in Honduras will not change. "No matter what government is in power, our foreign policy remains unanimous. The development of third world countries is a top priority for all western countries." On a non-governmental level, it is important to recognize the invaluable role the French Alliance plays in Honduras. By promoting French culture among the strong French community here, and in helping French nationals adapt to Honduran culture, the Alliance helps ensure continued French-Honduran unity and a prosperous future.
COHEP presents a plan for economic regionalization
Sophie Cross
The key aims for the recently created Centre for Economic and Social Investigations, CIES, lie within economic growth and territorial development. The first national seminar dealing with these themes was held on Tuesday in Tegucigalpa. During the seminar, COHEP revealed its objective to increase public awareness concerning these issues and has presented the idea of 'national regionalization' as a means of bettering the Honduran economy. National regionalization would divide the country into distinct areas, each with its own specialized economic activity, which could enable the management and most effective use of the country's resources. It is hoped that the concept would provide the blueprints for creating sustainable economic growth and reducing poverty in the long term. CIES has initially divided Honduras into six zones, based around the water basins within them that can be used to sustain industry. The subsequent project would involve a detailed evaluation of these zones' infrastructure, land and electrical energy, defining the potential benefits and risks at stake in the development of agricultural and industrial production there. The principal problems facing Honduras in its quest to maximize its market potential are the high levels of extreme poverty combined with low employment and income levels. These factors mean the country's economy cannot develop properly and yield effective competition. Mario Canahuati, COHEP's president, explained that 35 per cent of the country's population is living in 61 communities, creating a dispersed population that hinders the implementation of development projects and often means much of Honduras' available land is being wasted. COHEP is proposing that more roads be introduced to facilitate transport, while a railway system could be used to transfer cargo more effectively. "We need to create eco-productive systems and guarantee that we have water supplies for communities, but also for irrigation and energy production," commented Canahuati. According to the organization, Honduras statistically has six times more water per capita than Europe. Ricardo Arias Brito, the Sub-secretary of the Presidential Office, commented on the increasing opportunities for investment in Honduras that have been brought by the introduction of CAFTA. "In this climate there is now the possibility of increasing national and regional competition on the economic markets. Theory and practice tell us that there are four factors involved in development." Brito then listed these factors as the quantity and quality of resources in each department, the institutional policies that are in practice, the risks and threats to each developing zone and finally the strategy to combat poverty. Also attending the seminar was Victoria Asfura de Díaz, Executive Director of CIES. Through COHEP's new investigative council, Asfura is hoping to prevent duplication of the country's forces as CIES will be acting as a link between COHEP, the public, governmental and non-governmental organizations. The group aims to independently analyze all available information from these sources and then present its findings to the public, creating what they have termed a 'dialogue' between everyone involved. The idea of regionalization is based on an approach originally used in Chile where the division of land paved the way for more effective use of the country's resources and municipal decentralization. During this project, the private sector was treated as the backbone to creating a more stable economy. Asfura described how she is proud to be involved in the project as a "means of making better use of the country's resources, while maintaining our national treasures."
Minister of culture struggling with limited resources Hannah Green
Hannah Green/Honduras This Week
Over the past months, Honduras This Week has investigated a variety of cultural scenes in the country, from Reggaeton to poetry. Similarly worrying conclusions were drawn from the majority of these articles: that each movement suffered not from the participants' and organizers' lack of passion, but from a crippling lack of funds. Honduran culture is currently surviving owing only to the struggling minority's efforts to make the public both more aware and more interested in the current and past cultural treasures of its country. Rodolfo Pastor Fasquelle is the Honduran Minister of Culture, and agrees that the budget assigned to culture is insufficient. He cites that UNESCO (United Nations Educational, Scientific and Cultural Organization) suggests to governments of developing countries worldwide that they assign 2% of the total budget to culture. In short, this is not happening in Honduras. Of the 45,000 million Lempira budget, only 105 million Lempiras are put by for the Ministry of Culture. Pastor Fasquelle is resigned to the fact that UNESCO's guidelines will not be followed, certainly not in the near future. However, at the next budget meeting, he is to press the government for 450 million Lempiras (1% of the National Budget). The budgetary problem is not only a lack thereof, but also of poor distribution. Firstly, the Ministry presides over not only culture, but also sport in Honduras; the latter therefore receives half of the 105 million Lempira budget. The issue is not this, but that of the 53 million Lempiras assigned to culture alone, only 3 million of that actually go to the organizations and people who need the money. This is due to 94% of the current allowance for culture being squandered on bureaucracy. The salaries of the 360 employees at the Ministry make a large dent in the money and subsequent potential available for Honduran culture. Pastor Fasquelle does not only have the short-term problems to address, but has some other plans to remedy the long-term "embarrassing situation". During his time as Minister of Culture, he aims to secure support for legal changes to transform the Ministry, which should result in solutions such as cutting unnecessary jobs and wage packets so that the culture budget can be spent as it was intended. Despite the snowball effect of poor funding, the Ministry has a number of projects currently underway. It is establishing a website and radio station to promote Honduran culture and raise awareness about the existence and locations of theatres around the country. It is also working alongside the National Library to promote Central American literature. Many of the artists interviewed by Honduras This Week complained about Honduras and its people losing identity. Pastor Fasquelle disagrees with this statement. He does, however, admit that there is not enough consciousness of the country's history. For this reason, some of the Ministry's money is put into funding modern art and other manifestations of Honduras' past. For example, a film about Honduran history has recently been produced, focusing on the famous Francisco Morazán. With regards to the poets', playwrights' and musicians' claims, Pastor Fasquelle states that "identity is difficult to lose", and that "although it is based on the past, a country has to be willing to both confront and assimilate foreign influences." That mixture of the established and new is reflected in the newly appointed Heads of Department in the Ministry. Pastor Fasquelle describes them all as "young and committed people" and hopes that their enthusiasm will percolate down into the lower ranks of the Ministry, and from there progress can begin. He is prepared for a long struggle towards a brighter future, and is all too aware that although "we (the Ministry) are only here to help artists", that job is not being carried out currently.
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Bus crash in Tegucigalpa 15 people are dead and more than 30 have been injured following a collision between two buses. A yellow intercity bus, full of passengers, crashed into the back of another intercity bus at the exit of the road towards Danlí, El Paraíso, in colonia Villa Nueva. Preliminary information indicates among the fatalities are seven women, two girls, one boy and three men. El Heraldo Agreement between Honduras and Cuba over illegal immigrants The regulations that the government tried to impose to prevent Cubans illegally entering the country are unclear. The only alternative would be an agreement between Honduras and Cuba to send all undocumented people back to Cuba. There was a meeting between the Foreign Minister, the Minister of Government and Justice, and the Director of Immigration where they discussed possible options, but nothing specific came of it. In the meeting they also discussed that in the past week, 38 Cubans arrived illegally Honduras, which indicates the severity of the problem. El Heraldo
Foreign minister requests return of passports Civil servants from the previous government refused to return diplomatic passports that were given to them while they were in charge. The secretary of foreign policy has been forced to put out an official notice which requests that all ex-employees return their diplomatic passports. If they are not returned within 60 days, appropriate measures will be taken. El Heraldo U.S. revises the Honduran immigration system Charles Ford, the US Ambassador has announced that a representative of the Immigration Service will arrive to revise the process of identity documentation. Ford denied that the embassy is planning to suspend appointments to grant visas, even though this has been happening over the past few weeks. Apparently they trust the migratory reforms that the Honduran government is implementing, and are working closely with them. The embassy also states it did not suspend visas, just appointments, and they will be accepting new ones in August. La Tribuna |
| Monday, July 10, 2006 Online Edition 25 |
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Modernization commission proposes structural reforms
The issue of modernization has become a hot topic in Honduras recently, especially with the coming into force of CAFTA. The controversy surrounding this issue has focused the spotlight on a small office located in the Lomas Executive Building. In this building, you find the office of the Presidential Commission for the Modernization of the State, which has been quietly working with international financial institutions and Honduran lawmakers to "modernize" Honduras. Marcio G. Sierra Discua, director of the commission, believes that many people in Honduras do not fully understand what modernization entails. "Most people relate modernization just with computer programs, software, new hardware, but in this case it's not that… Modernization is changes in different areas of the state, and we make structural reforms in [these] different areas," said Discua. The commission is advocating changes in the sectors of telecommunications, energy, and infrastructure. According to Discua, the purpose of the reforms is the liberalization of Honduras' economy and its integration into the global economy. It is hoped that these reforms will, "make more efficient the public services… and lower costs," said Discua. For example, the Presidential commission is advocating a restructuring of the country's energy sector, which would see an overhauling of the ENE, Honduras' national energy company. They are working to open the energy market to private investors and are trying to foster more private investment in power plants and other infrastructure. Discua believes this will help to solve Honduras' chronic power shortage and eventually lead to lower prices for consumers. Though the commission's director believes in the reforms, he acknowledges that not everyone in Honduras embraces the idea of market liberalization. "In telecommunications some are for and others are against… For example, Hondutel is against the liberalization of the market because it affects the monopoly they have had until last year. On the other hand, the operators are for it because it allows them to work openly," said Discua. However, criticism of the modernization commission comes from more than just disgruntled companies. Rigoberto Gómez Madrid has a PhD in Sociology and currently teaches at the Autonomous University of Honduras. He questions the motives of the modernization commission, arguing that its focus is solely on economic reforms and ignores broader social issues. "It only provides a partial viewpoint [of development]," said Gómez. He believes that the commission, which is funded by the IMF and World Bank, is pushing a neoliberal economic agenda. Furthermore, he is sceptical of the assertions made by people such as Discua who are in favour of liberalization. "For example [the belief] that free market forces alone will lead to the development of society, or of the country, or of all humanity. This is questionable," said Gómez. "In the end, this process benefits some groups, the groups in power, but the common people benefit very little," continued Gómez. He points out that the commission for modernization, along with neoliberal reforms, has been underway in Honduras since the early 1990's but have yet to produce any tangible benefits for the common people. Honduras remains one of the poorest countries in Latin America, with over 50% of the population living in poverty. Gómez argues that, so long as the commission for modernization remains focused solely on economic reforms, it is not going to have a positive impact on the country. "This approach to modernization is not going to produce, and is not producing, the hoped for results. What is necessary is a reconceptualization, or a redesigning of, the way we think about social participation. After all, what we want a Honduras that is for all Hondurans," said Gómez. Discua contends, however, that these economic reforms are necessary if Honduras is to have sustainable economic growth. "We are making these changes in order to update our economy and to meet the needs of the global economy," said Discua. He also points out that the modernization commission has programs aimed at fighting state corruption, which is a major problem in Honduras. For example, they have a program to modernize the judiciary and to make it more impartial. Another is aimed at ensuring that state acquisitions are done fairly and with transparency. Despite their differences, both men make it clear that their end-goal is a more prosperous Honduras in which all Hondurans can participate.
Dam project creates uncertainty in communities
An eleven year old plan to construct a hydroelectric dam on the border between Honduras and El Salvador has been reopened by the governments of the two countries. A presidential commission - headed by Jacobo Regalado, general manager of Honduran telephone company Hondutel - has been created and is currently dialoguing with the Honduran communities that would be affected by the project, obtaining their permission to carry out a pre-feasibility study in the area. According to the only data available - which comes from a study carried out in 1995 by the Salvadorian government - the dam would cover 70 square kilometers and produce 700 megawatts of electricity annually, 50 percent of which would go to Honduras. Between 51 and 55 percent of the water reservoir would be located on Honduran territory, affecting seven municipalities in the departments of Lempira and Intibuca. If constructed El Tigre would be the largest dam in Honduras. "President Manuel Zelaya wants to establish an energy policy that permits the country to have a sustainable development, to make it competitive and attractive for investment," said Jacobo Regalado. The estimated cost, according to Regalado, could be anything from 700 million up to 1500 million dollars. He hopes the project could be financed by international organizations interested in promoting renewable sources of energy. However, before defining any investment plans, an updated study needs to be carried out, looking at the Honduran part of the project since the older study focused only on El Salvador. "A huge discussion has developed and unfortunately it is based on speculations since the only evaluations we have was made a long time ago," Regalado said. That is why he has been traveling to the areas in question and holding town meetings. A couple of weeks ago, Regalado visited the municipality of San Antonio - the community most affected by the dam - where he met compact opposition. "Our town will be completely gone," said Lucia Orrellana, the mayor of San Antonio. "Agricultural land, private properties, schools and roads, everything will be lost." According to Orrellana, there is nobody in favor of the El Tigre project in her municipality and especially the elderly and the children are worried because of the uncertainty and the possibility of having to be relocated. "They say that this is where we were born and this is where we will die," according to Orrellana. She also has her doubts about the compensations that will be paid those affected. "We have heard about similar cases in other parts of the country where some people are still waiting for the value of their properties to be recognized." However, the plan is to for the compensations will be paid before the dam is constructed. "The social aspect will be fundamental in this project. The President has made it very clear that all Hondurans living in the project area will be equally or better off after the relocation," Regalado said. He estimates that 4,300 people will be directly affected, but field work is needed in order to update that number. "It worries me that there is so much speculation going on and that there are rumors that people will be sent to La Mosquitia or that the dam will give them cancer. None of that is true." He underlines the importance of a pre-feasibility study. Not until he has the study in his hands will he be able to say with certainty how far the water would reach and who will be affected. However, Orrellana says that the people of San Antonio don't want to give its permission for the study to be carried out. "If we permit the study, the project would be advancing," she said. Regalado understands the worries expressed by the people from the area. "I understand that people are worried about the possibility of being displaced from where they have lived historically but it is certainly worth evaluating whether the project should be carried out or not." He emphasizes that the dam would benefit seven million Hondurans and could also bring economic development to a depressed part of the country, mentioning tourism around the reservoir, fish breeding as new job sources. "We have to explain to the people that the President hasn't made any decision yet since he is waiting for all the necessary information first."
El Libertador fighting for free press
Dealing with stalkers, death threats, and robberies isn't something most people could deal with at work everyday, but for Jhonny Lagos, it's all in the name of independent press. Lagos is the founder and director of El Libertador, one of few newspapers in Honduras that does not have links with business and politics. He worked as a reporter for Tegucigalpa daily El Heraldo for ten years, but seems to have found his niche with El Libertador. The first issue was published in May 2004, however the concept was born a year earlier. Lagos had just left his job with El Heraldo and was spending a morning in Tegucigalpa's Central Park when he thought of a newspaper that would give democracy an extra push. His friends told him he was 'crazy', but still he created the first issue, with nine students and one computer. The newspaper is monthly and covers a range of subjects, from economics and politics, to the environment and art. There are a number of opinion and analysis pieces that offer an alternative view to current affairs. The main objective of El Libertador is to tell the truth. It has no economic, financial or political interest. However it is impossible for any journalist to remain completely impartial, and El Libertador is a very passionate publication, receiving plenty of feedback, both positive and negative, from the public. Letters about particularly controversial articles are often responded to in the paper. They aren't afraid of touching contentious subjects, for example, July's issue discusses US and Honduran relations in depth. Lagos believes that the people of Honduras receive biased information in the news, and says that El Libertador is 'our participation' towards communicating with the public. It is no secret that El Libertador has been the subject of threats. There have been cars waiting outside the office, telephone calls, and Lagos says he has been the subject of a number of thefts. He does not, however, live in terror, insisting 'we don't have fear'. He added that having dealt with the situation for so long there is no point being scared. Lagos gives the impression that it is the principle of what he does that is important, emphasizing that money is 'not important' to him. Lagos commented that Honduras has always been a changing country and he wants El Libertador to contribute to that. The future of the paper, he said, somewhat elusively, 'depends on the fight', adding that he hopes El Libertador contributes to a better democracy. He believes that if El Libertador receives sufficient funding, then it can continue with 'its message'. Lagos acknowledges that the future, however, depends on society understanding the paper.
Recent storms only the beginning
Fierce storms in the past two weeks have caused much property damage and some fatalities in the north coast region of Honduras. There have been two reported cases of death as a result of the storms and more than 2,000 people have lost their homes and property. According to COPECO, the Permanent Contingency Commission, these storms are only the beginning of what is shaping up to be a rough summer. They are expecting 17 tropical storms in the Caribbean Basin, of these five to seven will be hurricanes, and three to five of those will be high intensity. Despite the potential danger, officials are confident that they can detect the storms before they become serious and do their best to mitigate the damage. "As part of our early warning system, we monitor 24 hours a day, 365 days a year the climate, ocean behaviour, and river levels," said Juan Carlos Elvir, National Commissioner of COPECO. "We also have a contingency plan which includes training the communities in rescue, humanitarian aid, and damage evaluation. It is organized through local committees, called CODEL, on the level of villages or barrios and CODEM on the municipal level. They cooperate with the army, the Red Cross, and the fire departments," said Elvir. However, the ability of COPECO to effectively handle disaster situations has been seriously questioned in recent weeks. In the wake of the recent storms, criticism has centred on the slow flow of financial aid into the effected areas. Quoted in El Heraldo, the Director of the Executive Commission for the San Pedro Valley, Marcos Sandoval, said, "[w]e have not had the money because in this period of transition the funds were not appropriated to us. Therefore we were not able to act in a rapid manner, because we lacked the money." Sandoval referred to the transition of governments in the past six months and how this has hindered the ability of state agencies to function effectively. Though they have been criticized for their slow response, Juan Carlos Elvir says that they are now working in the effected communities. "We have been working on the sanitary situation in Choloma and we are working on re-locating of the people in Santa Barbara, for example," said Elvir. While COPECO is coordinating the response, much of the help in disaster relief has come from agencies outside of the government. The United Nations World Food Program has been distributing emergency food supplies in the effected regions. CASM, a Honduran based Mennonite organization, has also been working in effected regions. "CASM, in cooperation with the World Food Program, gave out 325 food packages," said Marieke Rodenhuis of CASM. In addition to immediate disaster relief CASM provides longer-term aid by donating seeds and fertilizers so that the communities can replant their crops. This will be especially important in Choloma where 600 hectares of cropland was destroyed. CASM, along with other government and non-governmental organizations, are doing their best to prepare for the storms they know will be coming.
One out of five is a victim of corruption
The low salaries and difficult social conditions of countries in development and economic transition often result in corruption among public employees. Bribes made by businesses to public authorities are common all over Latin America. National and international companies can offer succulent rewards for business licenses, contracts and they even manage not to pay the taxes and tariffs they owe. According to Rosa Maria Borjas, Honduran Custom's Director, 400 18-wheel trucks at Toncontin were send back to their original destiny because of corruption on Tuesday July 4th. According to Borjas, 100 million lempiras of government taxes were being avoided with the help of custom officials. Some owners of the merchandise were said to be known leaders of the Liberal Party. One out of every five Hondurans is a victim of corruption and aside from politicians, custom officials are considered the most corrupt, according to a study carried out by the World Bank together with the Honduran Anticorruption Council. Corruption is considered the number one obstacle for entrepreneur development in Honduras. According to the study, 40% of small and middle size enterprises pay government taxes while the rest doesn't declare their taxes correctly. Big companies have more resources to pay off public officials that help them reduce their taxes or even eliminate them completely, making it possible for them to lower the prices of their products and compete unequally with those companies that pay taxes. That is why small companies that pay taxes have difficulties to compete and are exposed to economic losses. Corruption, especially irregularities in Honduran customs, represents a loss of recourses for the state. The study points to the fact that everyone, especially the poor, end up paying for the corruption through high local taxes and less social benefits, like education, health and housing. These unfavourable social conditions affect economic stability, and reduce national investment. World Bank studies estimate that corruption can reduce the economic growth of a country by between 0.5 and 1 percent per year. Also, investment in corrupted countries is 5% less than in less corrupt countries. According to a study made by UNDP (United Nations Development Programme) on human development, Honduran society has a high institutional distrust. Therefore, society expects more transparency in public authorities.
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99% of Hondurans have applied for TPS The US consulate has announced that the time period has elapsed for Hondurans to apply for Temporary Protection Status (TPS). However, 77,255 - which is more than 99% of eligible Hondurans - have applied in time. This permits them to remain in the US for another year. Storm threat to Honduras' Caribbean coast The Honduran Permanent Contingency Commission (COPECO) declared a preventative 'code green' on the Caribbean coast of Honduras, faced with storms that could affect the lives of many coastal communities. COPECO subcommittee member Carlos González described how the storms could contain waves reaching from nine to eleven feet. These could particularly affect the department of Gracias a Dios that borders Nicaragua. Police warn civilians of impending strikes Police authorities warned inhabitants of Tegucigalpa early on Tuesday morning of the impending teaching and trade union protests that would block various streets that day. The protests aimed to call on the government to provide salary increases and the abolishment of various decrees that have gone against the interests of collective hiring. During the strike more than 1,200 members of the Union of Telecommunication Workers of Honduras marched from Colonia Kennedy to Congress. Report shows government failing to meet demands The promises made during the current government's electoral campaign regarding health and education reforms and the subsidizing of fuel are the greatest economic crises currently facing Honduras. The Central American Bank of Economic Integration (BCIE) carried out a report entitled "Tendencies and economic perspectives of Central America" during the first trimester of 2006. Marvin Taylor, chief economist for BCIE, called for a long-term solution that does not put what has already been achieved at risk. The priorities are said to be to strengthen public finances, reinforce the financial system, update monetary policy and hold reforms in energy, telecommunications, transport and water sectors. |
| Monday, July 3, 2006 Online Edition 24 |
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Ambassador Ford discusses U.S. - Honduran relations Anette Emanuelsson
Charles Ford began his duties as U.S. Ambassador in Honduras on November 8, 2005. A member of the Foreign Service since 1982, Ford most recently served at the United States Foreign Commercial Service. At the residence of U.S. Ambassador Charles Ford, the preparations for the traditional Fourth of July celebrations are in full swing, and by the entrance a group of workers are busy improving the paintjob on the white gate. On Sunday July 2nd, hundreds of prominent Honduran and international guests are expected at the traditional reception. Ambassador Ford, working from home on the day of the interview, meets up in the library together with Press Attaché Julie Nickels. Lately, their focus has been less on the upcoming festivities and more on the somewhat strained relations between Honduras and the United States, although Ambassador Ford describes the relations between the two countries as good. "Honduras and the U.S. are very intimately tied together, with one million Hondurans living in the U.S, with 25 percent of the Honduran economy being money sent home from the U.S. and with two thirds of Honduran exports going to the U.S., and that is why we always have at least a good relationship because we have to work all these issues," he said. The U.S. Embassy in Honduras became the center of attention on June 16th when they stopped scheduling appointments for the issuing of visas to Honduran citizens. Numerous incidents of foreigners obtaining Honduran birth certificates and other fraudulent identification had cumulated when two Cameroonians were detained after trying to obtain Honduran passports. A few days later, the U.S. Deputy Chief of Mission James Willard raised questions over a meeting held between Honduran government representatives and Venezuelan state-owned oil company PDVSA. "Last week a delegation from Venezuela arrived in the country and talked with your government and for us it is difficult to understand why these negotiations are taking place at the same time as a public oil bid is underway," he was quoted as saying in Honduran daily El Heraldo. The Honduran government, critical over the American comments, reiterated that the meeting wasn't secret and that they had every right to meet with Venezuelan investors just as they had met with American investors in the past. However, Ambassador Ford points out that when American oil companies met with President Manuel Zelaya in Washington, members from the Honduran Embassy as well as himself were present and the meeting was also announced publicly. "It would have been preferable to announce that PDVSA was coming and that they would talk to them about the bid just like they did with the American oil companies. If you do things in darkness it implies that you are hiding something, whether you are or not," Ford said. He dismisses suggestions made by some, that the visa-measures were related to the recent contacts between the Honduran and Venezuelan governments, saying that the issuing of false identification documents at the Honduran Office of Migration is a well-known problem and that the U.S. Embassy has been working with for over a year. "The Migration Office has not had the systems or the political will to tackle this question, which provoked the suspension of the interviews for visas. We needed time to assure my government that we would be able to detect people having false documents." As of Monday 26th, the Embassy is again scheduling interviews for visa applicants after the Honduran government developed a plan to hold corrupt officials accountable and bring them to justice. "Of course things are not going to change from one day to the next but we are hopeful that by the time we get to August there will be legislation and money to help fix the problem." Also, the consular section of the Embassy now feels that they have systems to verify the authenticity of Honduran identification documents. Apart from migration reform, other areas of specific interest for the U.S. Embassy in Honduras at the moment are drug trafficking, energy policy, and macroeconomic stability (see separate article). Ford is concerned over the increasing use of Honduras as a transit country for drugs headed for North America. He says that the will to fight the smuggling is in place, but that there is a need for more resources to deal with the problem adequately. In the area of energy, the embassy is promoting alternative energy sources such as ethanol, African palm oil, and hydropower. "There are a lot of American companies that would be interested in producing ethanol or helping the country become less dependent on petroleum," Ford said, making the comparison with Brazil that has substituted its oil imports with ethanol and other types of alternative fuel. As important as the policy questions might be, American citizen service is at the core of the work of the U.S. Embassy. Lately there has been an outreach campaign with town hall meetings, the next one coming up in La Ceiba on July 12th, in order to strengthen the communication between the American community and the Embassy. The most common problem facing Americans in Honduras is property disputes, according to Ford. "There is frustration that they can't get their case resolved. They bought a piece of property and somehow it was taken from them and there is no court they can turn to in order to get a resolution. We have had several meetings with the attorney general and the courts to make them aware of the problem." For Americans thinking of opening up their business in Honduras, the Ambassador gives a word of caution. "You need to really analyze the risk you might face because of a lack of a rule of law in a country where you might not have a court system to help you. Companies that have been successful have taken their time and carefully researched the project and often found a good local partner to work together with." The same applies when buying property. "When you take the extra time to research well, you have no problems." On the occasion of the Fourth of July, the Ambassador concludes with a message to his fellow Americans. "The very best wishes to the American community in Honduras on our national holiday and the 230th birthday of the U.S. and I hope that we will see as many as possible at the celebrations in Zamorano. My number one commitment is to reach out and get in touch with the American community, for them to know that the Embassy is open."
Expected increase of non-traditional agricultural exports
With CAFTA bringing globalization and general economic opening, the Honduran economy has experienced increasing exports. Not only that, but there has been a diversification of the products being exported, with a reduction of traditional products and strong development of non-traditional ones. Non-traditional agricultural products in particular are expected to have a bright future. According to a study made by CIPRES (Center for Social and Economic Investigations), traditional exports like banana, coffee, wood, refrigerated meat, silver, zinc and sugar made up 83.2% of the country's total exports in the year 1960. Starting in the 1990s, these traditional exports have been on the decrease, and today they represent 50% of the country's total exportation of goods. On the other hand, non-traditional products made up 20% of exports in the 1970s. Today they represent 40% to 45% of total exports. Some of the most popular non-traditional products include shrimp, lobster, pineapple, cantaloupe melon and tobacco. It is important to acknowledge that most of these non-traditional products are part of the agricultural sector. There are approximately 41 million Latin Americans living in the US, and about 355,569 of those are Hondurans. According to a study made by the National Competitiveness Program supported by the Inter American Development Bank, there is an unsatisfied demand for Honduran food products, and there is a possible U.S. market for Honduran cultural products to an estimated value of 45 to 217 million dollars depending on the availability of such products. These products include cheese, processed beans, coconut candy, rosquillas, yucca and plantain. Most of these desirable cultural products are from the agricultural sector. The study also shows that the exportation of these cultural products could triple in five years. According to Arturo Chavez, executive director for the National Competitiveness Program and working for FIDE (Foundation for Investment and Development of Exports), Hondurans living in the US are willing to pay twice as much for Honduran products compared to Salvadorian or Mexican products. The Latin American market in the US is significant and demand for these cultural products can be very profitable with the right decisions. Although the Honduran manufacturing exports to the US are significant, the country is now competing with strong economies like China, Thailand and India in the manufacturing business. Honduras would meet less competition and have better chances to increase its exports in the area of non-traditional products especially those of the agricultural sector. According to Norman Garcia, CAFTA negotiator for Honduras and executive president of FIDE, non-traditional agriculture products have a good standing position in Honduran future exports. Today, Honduras has a positive commercial balance with the U.S. According to Garcia, the main U.S. exports to Honduras include products used for animal food, like wheat or soy; while Honduran exports to the US include mainly non-traditional products like tilapia, shrimp, cucumber, mango and cantaloupe melon. According to FIDE National Competitiveness Program, there is a significant international market for non-traditional agriculture products, especially in the US. However, introducing Honduran products to international markets needs organization but is not impossible. Organizations like FIDE are trying to organize producers, no matter their size, in clusters, to make production more efficient.
Honduran war hero Fernando Soto dead
Honduras this Week Honduras has lost one of its national heroes. Colonel Fernando Soto died in a private Tegucigalpa hospital early on Sunday June 25th at the age of 67, after his health deteriorated, according to relatives quoted in the local newspapers. The veteran pilot was declared "National Hero" after the "100 Hour War" between Honduras and El Salvador in 1969, where Soto shot down three Salvadorian airplanes from his World War II Corsair - the last air combat between piston-engine planes in the world. In a Honduras This Week article written by Jorge Flores McClellan in 1999, Soto recalled the day of the famous battle: "After three days of non-stop activity, on my tenth mission while strafing enemy positions near El Amatillo, we were attacked by two P-51 Mustangs. The cannon of Captain Zepeda, my wingman, hammed so he called for support. I was the first to arrive. After maneuvering, I got behind one of the P-51s, fired a couple of volleys and it caught on fire, lost control and spun to earth. "The same day, the 17th, Captain Acosta and I were heading toward the border when we spotted two Corsairs. They were in an open, combat formation. I signaled Acosta with my hand that I would take the one on the left. He nodded. I fired and the plane caught on fire. I saw it go down and a parachute open. "Acosta had seen two other Corsairs and had to leave me. While he went for the others, the second Corsair was already behind me and shot two holes in my right wing. Luckily, I had no fuel there. I maneuvered the way I knew and finally got behind him. After two volleys, it exploded. I had to dodge the debris. "I turned back to join Acosta who said the other two Corsairs had not participated. Probably they were out of ammo. When we were flying level and straight home, that's when my knees started shaking." The war - which is also known as the Football War - was caused by political differences between Hondurans and Salvadorans, including immigration from El Salvador to Honduras and a border dispute. It started on July 14th 1969 and ended on the 18th, after an intervention by the Organization of American States. However, the peace agreement wasn't signed until 1980 after mediation by the Peruvian ex-President José Bustamante. According to Soto, the Honduran air force played a decisive role in the war. "Without our planes the invasion would have done much more damage," he said in the 1999 interview, in which he also explained why Honduras had such skilled pilots: "Do you know what it was like to fly in Honduras in the 50s, 60s and 70s? Honduras is all mountains and there were no roads. You name the town and I will tell you how to approach it in a DC-3 or any other plane. "Everyday it was a different village, hopping over a mountain to the next city or town, flying below high ridges looking at the pine trees above, to land on an uphill dirt strip, delivering everything from guaro (liquor) to pigs. Passengers got on here and would get off five or six stops later, then others would take their place and so on. "Every Saturday we logged 17 landings and takeoffs including San Salvador and Guatemala City ending in Guanaja and on Sundays the whole thing would start all over again coming back to Tegus. We had to know every trick in the book and then write some tricks of our own to fly, land and takeoff safely in treacherous airways, to bring common necessities anywhere they were needed. "Today, 90 percent of those airstrips have disappeared because there are roads now. El Salvador's topography is not as contorted and it is a smaller country, so much less was demanded of their pilots."
A national celebration Shawna Lehr The Continental Congress adopted the Declaration of Independence in Philadelphia on August 2, 1776 declaring America free from Great Britain. However, the vote in favor of independence was held already on July 2nd and the text of the Declaration was reworked and released, unsigned, on July 4th which is therefore the actual date on the Declaration. The first unofficial holiday was celebrated on July 4, 1777 in Philadelphia. Those of us who were raised in the United States have fond memories of baseball, barbeques and fireworks associated with the birthday of the nation. The national holiday represents the essence of American identity. Have we ever wondered, however, where the traditions on the 4th day in July originated? Originally, 13 rounds of cannons were discharged for each original state of the union followed by bell ringing, and toasting to the future. Thus began the presence of red, white and blue fireworks taking place on America's day of reflection. The sounds and spectacles unite the spirit of Americans and intensify the traditions of this special occasion. This year, Coney Island in New York will host its annual hotdog-eating contest and Washington will host its annual Independence Day Parade with over 300,000 spectators. Boston Harborfest is considered the most patriotic with seven days dedicated to recreating the heritage of the American Revolution. Here in Honduras, on July 2nd, American citizens, members of AMCHAM and Club Rotary, employees and students of the Zamorano agricultural school as well as their family and friends are invited to a day of festivities at the Zamorano campus. Celebrate with sports and activities from 8am to 5pm. For more information contact Sigret Sanes at the American Embassy: 236-9320 ext. 4703. Admission is free with proper identification. |
