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Public investment
Public investment is aimed at offering the country the kind of long-term
development the private sector can’t provide, given its slow financial
return.
For example, the type of development required in irrigation zones, that
experience has shown us is imminent to assure food security. This
package of invisible needs includes water, electricity and sewage
systems, etc.
At the beginning of this administration, the central government was
criticized for lacking an entity capable of long-term planning. An
institution such as the defunct Ministry of Economic Planning, which was
closed 1998.
Planning is not an easy task; it requires skill and methodology. The
most important factor is having the will to make things happen and it is
disturbing to realize there are certain persons who disrespect the
country’s vision and impose whimsical goals that do not fit development
schemes.
Let’s not underestimate other imponderable factors such as earthquakes,
hurricanes, wars, the Monetary Fund, etc.
No one can do a better job than the government when it comes to carrying
out major projects that will benefit future generations. The current
lack of planning for future generations just reflects our poor
performance and low self-esteem. We are responsible for the future of
this country.
One budget analysis establishes that this task doesn’t pertain to the
State anymore, it would seem international financial organisms have
taken over.
Only in the last 10 years, the population has increased by million
people. Reproduction is something we do well.
Indeed, does the future of Honduras depend on family planning? Judge for
yourself. We have come to the conclusion that the expression “where two
eat, so do three” is totally false. We must take care of our future, and
this is directly linked to the quality of our current actions. That is
why we must trust in short, medium and long term planning as a vital
function of the national public administration.
Nothing is more valid than long-term public investment. It is
particularly strange that financial organisms disapprove of public
investment as a means of survival. They actually establish rules to
generate immediate riches, which avoid state investment and that chiefly
benefit importation.
Such is the case of electric energy, where pollution and mechanical
equipment is preferred over building dams, a renewable source of energy.
It is urgent the Honduran government and its authorities commence
development that will prevent the failure of the future Honduran
economy.
Confiscated food products
Dear HTW:
I just received a call from a friend and pilot, Captain Mejia. His son
recently flew to Roatan and Customs kept a Butterball turkey he was
taking to relatives for Thanksgiving. Is Honduras doing this now to its
visitors? We understand that canned food is also being confiscated. I am
concerned about this because I do send friends to Honduras with food for
family and friends and if Honduras is doing this, then I will make
efforts to curtail visitors, this is not right. My wife is going down to
visit our daughter this month. Is Honduras not allowing visitors to take
food?
I also learned that when you leave the San Pedro airport they are still
holding up people? A friend of ours was held up and everything was
stolen. How can we send tourists if they will be held up?
I would appreciate a reply to this email before I send friends next week
with perishable products.
Captain Paul J. Holsen II
Via Internet
Dear Captain:
No law says you can’t bring foods to this starving country, with about a
70% or people living UNDER the absolute poverty barrier. In the case of
the frozen foods, like the turkey, if the product is frozen and packaged
properly, I see no reason why to impound it. As far as I know, there are
no existing curves or bans against ANY product imported from the U.S.
Sometimes people at a post like in customs and/or Migration, give a
lousy impression of the REAL Honduras people. Sorry about that and I
advise you to get in touch with the State Department to inquire further.
TOURISM, ENVIRONMENT AND DISCRIMINATION
Dear HTW:
Klaus Borchert, in his article and his letter, illustrates the economic
theory that more tourists are likely to come to Honduras if the prices
were lower. Depending on the elasticity of demand, that may or may not
result in a net financial gain for the country. However, according to a
report by the United Nations, a race to attract tourists with the lowest
prices has contributed to neglect of fragile ecosystems in many third
world countries. Is that what we want?
Along with his money, the tourist has needs: security, transportation,
natural resources, and sewage treatment. Economist, entrepreneur, and
contributor to HTW, Lorenzo Dee Belveal has written eloquently of the
adverse effects Roatan and its delicate coral reef have suffered as a
result of too many people and insufficient infrastructure to manage the
impact of said people on the island’s environment. Mr. Borchert suggests
that tourists, guests and friends who come to Honduras should be exempt
from all fees. If the amount charged to the tourist is less than the
total costs (including overhead) of serving her, then Honduras will be
worse off in the long run. Is that what we want?
Mr. Borchert complains of the 300 lempira per month charge to tourists
(a little more than 50 cents a day). Another person told of traveling
hours to visit a national park and then refusing to enter because of an
85 lempira (about five bucks) entrance fee. I suggest that these type of
penny-pinching tourist go somewhere else. That’s not what we want.
I’m bewildered at the hypocrisy of those who criticize Honduras for it’s
discriminatory prices. Depending on where you go in the United States,
the amount you pay for entrance or service may depend on your age,
occupation, gender and place of residence. Some state and local parks in
the United States charge more for non-residents. Most state funded
colleges in the United States charge more, sometimes as three times as
much, for non-residents. Senior citizen discounts; student discounts;
children under 12 eat free. While Mr. Borchert complains about price
discrimination in Honduras, somehow the same practice in the United
States does not bother him. Now that’s discrimination!
Once again hats off to HTW for it’s fair treatment of a topic.
Silencia Cruz
Via Internet
Web Edition Editor's Comment:
Within the European Union, Admission to many museums and monuments is
free to E.U. residents only. Admission is charged to all others.
PEGGY BRINKLEY AND THE RAMIREZ FAMILY “TOPS”
Dear HTW:
I very much enjoyed the article about Peggy Brinkley; I have stayed at
her hotel many times and have to say, “that is Peggy.” She has helped
many groups that have come to work in Honduras as I have with a Medical
group.
On the other side, the article concerning Erika Ramirez is very sad. If
you need an outside opinion about the Ramirez family I can say they are
“tops.” Erika’s father, mother and several of her sisters give volunteer
help to the group that I work with. They have been translators for our
medical clinic that works in the village of Chapagua, (near Trujillo)
for quite a few years. Without their help, we would have had a lot of
trouble with the language barrier. If you need any further verbal
support for her family, just let me know.
Linda Miller Bluffton
Ohio, USA
Via Internet
ERIKA RAMIREZ TELLS THE TRUTH
Dear HTW:
I was very upset to read the story in your November 18, 2002 issue
concerning Erika Ramirez and the problems that she has had. My wife (a
Honduran native) and I visit Honduras every year, and I was fortunate
enough to be staying at the same hotel as Erika in April of this year. I
met her and some of her family, and they were extremely pleasant and
friendly to me. Erika is very articulate and intelligent, and was a
terrific representative for Honduras in the Miss Universe Pageant. I
remember feeling sad to see this beautiful young lady and the three
women traveling with her carrying their luggage to the street and
flagging down taxis on her way to see President Maduro. She was “on her
own”, and I remember thinking how she should have been better taken care
of. I found her to be very sincere, and I believe what she is saying
now, and I hope she succeeds in her brave effort to tell the truth.
Gary Mott
New York
Via Internet
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Trying to rationalize the origins of corruption
By LORENZO DEE BELVEAL
In the absence of a case excusing the corrupt, perhaps an explanation of
corruption as being an inherent, “natural” outcome in the very scheme of
things is the next best thing.
Pedro A. Brizuela is the author of an “opinion” piece that appeared in
the November 20 edition of La Prensa, and that insists that “the source
of corruption has always been the free market”. Somehow, in Sr.
Brizuela’s opinion, the tap-root of corruption is contained in the “law
of supply and demand”.
This is not a new idea. Protagonists of Socialism and ranging from
Eugene V. Debs, to Karl Marx and a long list of hangers-on sought to
peddle the same message throughout most of the 20th century. Their
thesis being that if we could just supplant the law of “supply and
demand” with the law of “from each according to his ability, and to each
according to his need”, we would magically replace the heartless “search
for profit” with a more compassionate marketplace. Enticing as the
proposition sounded, even its most passionate adherents were unable to
make it work.
Socialism provided the cornerstone for the communistic experiment that
Russia doggedly pursued for some seventy years and that, at the end,
bankrupted the nation and prompted the death and dissolution of the
U.S.S.R.
While the tragedies of failure proliferated all over the communistic
world, capitalism - based on the natural forces of supply and demand -
was producing a growing list of glowing global success stories.
Socialism is an enticing theory, but it fails at the point of
“equalizing” the distribution of goods and services that the human
family requires for its survival. More particularly, there has to be a
mechanism to decide who has a “surplus” and who has a “need”. And then
take from one and give it to the other - thereby satisfying the
socialistic ideal. Nobody has ever succeeded in structuring a system
that could meet even the most basic requirements of fairness and the
requisite market efficiencies.
Allowing the forces of Supply and Demand to meet in the un-buffered
marketplace provides a dynamic distribution point for both producers of
products and potential purchasers of same. “Price” is the even-handed
arbiter between sellers and buyers. Obviously, sellers will seek the
best return for their labors in producing the products, and buyers will
strive to obtain their needed supplies at the best (lowest) price
available.
Price fluctuation is the regulator that smoothes out periods of shortage
and oversupply: When excessive supplies are offered in the market,
prices will fall, as sellers seek to clear their overstocked
inventories. When supplies are sparse, buyers will have to raise their
bids as they seek to obtain the supplies they need.
This confrontation between buyers and sellers is never-ending. Suppliers
trying to make higher prices prevail, and buyers trying to make lower
prices apply in the trade. In the process, the production of a nation is
brought to market, offered for sale and moved into the hands of the
buyers who require it. In the absence of monopolistic effects,
government price-fixing or other artificial interference, it is an
equitable, even-handed and highly efficient process. At the very least,
it is preferable to any substitute marketing system humans have ever
been able to devise.
Great commodity markets have existed throughout the world, for at least
the last one-thousand years, facilitating commercial trade in everything
from precious metals, to foodstuffs, spices, petroleum products,
gemstones, vegetables, livestock and fibers - with which to feed, house
and clothe the world’s burgeoning population.
It is at least remarkable that Mr. Brizuela’s apologia for corruption
appears in a major publication of one of the most notoriously corrupt
nations of the world. Except the shameful practices are not as easily
explained away as he obviously envisions it to be.
Honduras corruption is widespread and devastating in its effect on
buyers, sellers, private citizens and the political elite, alike.
Corruption is a cancerous growth within the national body. Its deadly
effects penalize everyone, whether they occasionally profit from a
corrupt act or not. The overall impact brings handicaps in every aspect
of economic, social and political functioning.
And corruption is not a product of the “free market” or the forces of
“supply and demand”, as Sr. Brizuela would like us to believe.
Corruption is the direct product of unprincipled political, business and
social leadership. Corruption thrives because it is engaged in by the
political and economic leadership, then it is replicated down the
structural pecking-order. In due course, as in Honduras, “everyone is
doing it. Whether the particular corrupt acts involve commercial bribes,
subornation of judges, tax and import duty “deals” or any of a hundred
other large or small transgressions against equity and fair dealing.
In short, corruption isn’t the product of any natural activity.
Corruption is the result of corrupt, illegal, abusive practices on the
part of corrupt people. It is a crime, like theft or murder, but it
carries a lesser degree of opprobrium; especially after a nation - or a
society - comes to accept it. But this doesn’t render it any less lethal
to the state or nation so infected.
If anyone doubts this, take a hard look at Honduras. Decades of
corruption have largely been responsible for bringing it to the state of
penury is presently occupies in the roster of nations.
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