1. The Honduran economy’s extreme sensitivity to a wide range of shocks—internal and external, endogenous and exogenous—is largely responsible for its pattern of slow and uneven growth punctuated by repeated crashes. Honduras’ economy is small, open, largely agricultural and predominantly informal. A lack of physical and institutional infrastructure, an adverse business climate, burdensome regulations and high security costs discourage investment, inhibit diversification and slow the reallocation of capital and labor, creating structural rigidities on the supply side. Agricultural output is especially vulnerable to both market volatility and exogenous shocks, as the sector focuses on a narrow range of primary commodities produced with limited …show more content…
Although the contribution of mining to GDP has decreased over the last few decades, Honduras is now presented with an important opportunity to explore its untapped mineral potential. Currently, there are only seven metallic mines and about 300 non-metallic mines in Honduras. Yet, the country has significant reserves of iron oxide, and there are about 160 pending permit requests for exploration and feasibility studies. The revised Mining Law passed in April 2013 provides an improved framework to promote investment in the sector. In addition, offshore oil exploration is underway, and a commercially viable discovery could significantly improve the trade balance, encourage foreign investment and bolster government revenues, all of which would help to reinforce macroeconomic stability. However, for extractive industries to effectively promote long-term growth and sustainable social development appropriate transparency and accountability mechanisms must be in place. In light of Honduras fragile ecology, environmental protection must also be accorded a high priority. Finally, high-value extractable resources have a history of fomenting instability in developing countries, and steps must be taken to ensure that any new resource development does not further undermine the rule of …show more content…
Honduras’ macroeconomic profile is expected to improve during 2015-16, as a positive external environment supports critical efforts to strengthen the country’s fiscal position and boost economic growth. Table 5.1 presents Honduras’ medium-term macroeconomic outlook. Growth is expected to recover during 2015-18, with all major sectors contributing. The ongoing recovery in coffee production combined with rising yields for other export-oriented crops will bolster the agricultural sector, while continued growth in manufacturing and construction will have an especially positive impact on employment indicators. Increasing investment will boost the credit supply as the financial sector remains solvent, while expanding internet and telecommunications infrastructure will spur growth in services. Finally, lower oil prices are expected to help reduce the current-account deficit. However, this forecast rests on the assumption that current fiscal consolidation efforts will continue to be implemented as part of a broader program of governance reforms, and that past progress will be maintained. Consequently, a sustained political commitment to the reform agenda is critical to the positive outlook presented
Where is Honduras located? What are some main landforms? What food do Hondurans eat? What language do Hondurans speak? How did Honduras become Honduras? These are all questions you might have, and in this paper all will be answered. You will learn more about the geography, society, people, their lifestyles, and the history of Honduras.
I was born in Guatemala in a city called, called Guatemala City. Life in Guatemala is hard which is why my parents brought me into the United States when I was eight months old. Some of the things that makes life in Guatemala hard is the violence. However, Guatemala has plenty of hard working men, women, and children who usually get forced to begin working as soon as they are able to walk. However, unlike many other countries, Guatemala has a huge crime rate. I care about the innocent hard working people that live in Guatemala and receive letters, threatening to be killed if they do not pay a certain amount of money at a certain amount of time.
The republic of Colombia has been fighting an internal war for over 50 years. On April 9th 1948, 1:00P.M. The leader of the Liberal Party Jorger Eliecer Gaitan walked out of his office in the downtown area, got shot 3 times and died once he got to the hospital. This day went down in Colombian history as the Bogotazo. Gaitan was a moderate socialist congressman that gave a voice to the middle and lower classes in Colombia. He gave hope to those that had nothing under the right wing elitist government. In 1948 after his death, the era of the Violencia started. A civil war between the Colombian communist party and the farmers against the right wing military conservative government due to the high inflation and unfair assistance to those that
To begin understanding the intricate sociopolitical situation faced in Honduras today and causing migration, the rich history of the nation must be understood. Honduras is a country with a
What do you think of when you hear the name Honduras? A warm, tropical country? A culture filled country? The music, the food, the dances? “White” Hispanics on an area?... In my experience, the last thing that comes to mind when someone hears the name Honduras, is the association of dark-skinned, african- american descendants who speak spanish as well as have their own language, food, dances, and way of living, known as garifunas. Garifuna people are a mixed race whose descendants are from West Africa, Central Africa, the Caribbean, and the Arawak tribe who live along the coast of Central American countries such as Honduras, Guatemala, Belize, and Nicaragua. According to the article, “Garifuna,” “their phenotype reveals their African heritage,
The media in the United Sates is accustomed to portraying Haiti as a failed state without referring to the external influences of other countries on Haiti’s problems including the 1915 to 1934 occupation of Haiti by the United States. Haiti has suffered at the hands of numerous dictators who have robbed the country of its resources, but little is said of the U.S support of some of the dictatorial regimes that have ruled over Haiti and plundered its resources (Maus, 2015). The natural disasters that have wrought havoc in Haiti in the form of hurricanes and floods are solely blamed on Haitians who have decided to destroy their land using destructive agricultural methods. Little is said of the destruction of Haiti’s natural landscape
...rica. There will need to be an assessment of the political risk versus the potential gains and growth in the newly emerging markets of the Middle East.
Kehoe, Timothy J. (November 2010). Why Economic Reforms Have Not Generated Economic Growth in Mexico. Kim J. Ruhl Department of Economics, NYU Stern School of Business. Retrieved from http://www.kimjruhl.com/storage/data/KehoeRuhlJEL.pdf
"The Eye of the Storm; Violence in Honduras." The Economist Jun 16 2012: 44. ProQuest. Web. 22 Oct 2013.
The economics of Haiti has deceased in the last 4 years after the devastating earthquake that struck it 4 years ago. The Haiti economy has become very poor and one of the poorest country in the south, Central America and Caribbean region making it ranked 24 out of 29 countries in this area and its overall score is below average. Haiti’s economic freedom is 48.1 making it economy the 151st freest country while in the last several years Declines in the management of government spending, freedom from corruption, and labor freedom make its overall score 2.6 points lower than last year. Recovering from the disastrous earthquake in 2010 with the support of the U.S. recovering efforts “Haiti’s post-earthquake reconstruction efforts continue, assisted by substantial aid from the international community. Governing institutions remain weak and inefficient, and overall progress has not been substantial. The parliament has not renewed the mandate of the Interim Haiti Recovery Commission, which had been tasked with overseeing reconstruction efforts but was unpopular.”( .heritage.org). The open market of Haiti trade weighted to be 2.1 this is because the lack of tariffs hamper the trade freedom of Haiti. Foreign investors are given national treatment but the investment is small and the financial sector is remained underdeveloped and does not provide any adequate support.
During the past few years the tourism in these countries has increased which helps them get more money in the country and make the economy grow a little but this is not going to help the country’s GDP increase a lot because this is only one part of the income that contributes to all of the Latin American and Caribbean countries. In “Regional Economic Outlook: Western Hemisphere Northern Spring, Southern Chills” It was stated that “Latin America and the Caribbean are the known spot for tourist destinations”. This shows us that the Latin America and the Caribbean are beautiful places but their economy just isn't doing the best. Also tourism is not the only source of income for the countries because these countries also hves oil which is one of the leading asset in Latin America and Caribbean economy. There was also a sharp drop in oil prices in 2014 and cheaper oil is creating significant relief, which is cutting import bills by 3-4 percentage points of the GDP on average. This helps other countries look at Latin America and Caribbean as places to get cheap oil. This will ultimately help Latin America and Caribbean get some money for their economy which will increase the
Anita Isaacs points out, “Mr. Morales has promised to go after corruption, but he can’t clean up Guatemalan politics without the cooperation of Congress.” Morales’ readiness to change the country’s corruption exemplifies his quality as a leader, even though he may not be totally effective due to overarching congressional power. His drive shows a pursuit of the common good and responsibility for the wants and needs of his country’s people, which an accountable democratic leader and the government should seek. The Guatemalan government lacks the level of concern pertaining to listening to the citizens and acting upon it that Morales emphasized in his campaign, “I have received a mandate, and the mandate of the people of Guatemala is to fight against the corruption that has consumed us” [Malkin, Jimmy Morales is Elected]. This may not directly and immediately shift Guatemalan democracy, but Morales’ passion towards being accountable puts Guatemala in a safer and stabler
In recent years, the Gross Domestic Product/capita (PPP) in Paraguay has increased significantly in the last decade, with $6,136/capita around $40.9 billion. Paraguay has been one of the fastest growing economies in Latin America, mostly due to an increase in exports of agricultural produce. According to Banco Central del Paraguay, reported “From 2008 until 2013, Paraguay GDP Growth Rate averaged 1.3 Percent reaching an all tim...
The main purpose of this paper is to study and analyze the effects that the U.S. Free Trade Agreement have in Colombia’s developing economy by demonstrating the effects in Colombia’s GDP after the agreement, the effects in farmers, illegal drugs, and in the internal market share...
66% (2004) of Haiti’s population is employed in agriculture. Agriculture has a low labour productivity because of the tradition of manual labour and preferential land agreements. Highly automated industries have a higher production rate per worker, but this also requires the workers to be educated and skilled. Unfortunately most of the Haitian population is illiterate and unskilled. This hinders production, therefore resulting in less exports, which in turn lowers the GDP.