Honduras will seek to sell $250 million in sovereign bonds in the United States in December.
To that end, it dispatched a team of government dignitaries to the United States to discuss the markets and the feasibility of placing the bonds. María Elena Mondragón, head of the Banco Central de Honduras,
and Wilfrido Cerrato, the Finance minister, will meet with
Representatives of the International Monetary Fund and the World Bank to
talk about the possibility of placing these bonds at an acceptable
rate. The funds raised will be used to support 2013 government spending.
The last time Honduras sought to place bonds, they found the 10% interest rate that would have been required too high. That seems unlikely to be much better now. In August, S&P reduced Honduras's debt rating to practically junk levels.
The Lobo Sosa government has been chronically late in paying government employees and contractors. Just today it reported that it had 5,900 million lempiras (about $295 million) backlog of payments owed, a backlog that it currently cannot pay.
Part of that debt is due to inefficiencies in collecting taxes owed the government. Collections are running about 2,000 million lempiras ($100 million) behind projections and have been since April. The other part is due to spending more that was even projected to come in through taxes and other forms of income.
The bonds Honduras seeks to place in the US capital market are not all it needs to close out the year. It will also seek to place a further 3,000 million lempiras ($150 million) in bonds internally. The Honduran government projects that if it places all these bonds, it will close the year with its debt equal to about 40.7 % of the Gross Domestic Product, better than the 45% of GDP predicted at the beginning of the year.
Honduran government monetary policy, especially the tactic of not paying segments of the workforce, has resulted in numerous public employee strikes. Last week it was the transit police, who were owed two months salary. This week it's the doctors, janitors, nurses, and medical staff at government hospitals, who are owed more than three months of back salary.
The police settled their strike after receiving one month's back pay.
Instead of paying the medical workers part of their back pay, Lobo Sosa had their strike declared illegal.
There is no money to pay these government workers without placing bonds, in part because of the $18.7 million payment made mid-September on the existing $500 million in bonds.
Do we need to say it: Honduras is broke.
Showing posts with label World Bank. Show all posts
Showing posts with label World Bank. Show all posts
Monday, October 14, 2013
Monday, September 5, 2011
Honduran Coffee Break
It may be time to buy Honduran coffee. But cautiously.
I myself prefer tea. But when I began doing research in Central America, I learned to drink coffee. Tea bags were imported and very expensive, especially unaffordable the summer I was given $10 a week as a stipend.
Cafe El Indio ads saturated billboards and radio. The coffee that I remember most fondly was prepared on visits to the campo, prepared from whole beans roasted one batch at a time. Back in La Lima, though, coffee came from little brown paper bags with the logo of a Plains Indian in war bonnet printed in red, where the coffee tasted a lot like the bag.
Coffee is big business in Honduras. Costa Rican and Guatemalan coffee may have more brand-visibility, but Honduras actually produces more coffee than Costa Rica, and depending on the source you consult, close to or more than Guatemala. The Honduran government has just announced projections of production for the current season that would make the country the second largest producer of washed arabica beans (the variety that is desirable for fine coffee drinking), remaining only behind Colombia.
Coffee cultivation is ubiquitous in Honduras: a USDA overview this April reports that coffee was being grown in 213 of the 298 Honduran municipios, distributed in 15 of the 18 departments that comprise the country. According to the same source, 30% of the Honduran population was employed in the coffee industry. Domestic consumption has been rising, fueled by urban coffee shops that are in demand for internet access, up 56% from 2008 to 2009. But still, most of the crop (90%) is exported.
Not all of this production comes into world markets labeled as Honduran.
Substantial amounts of Honduran beans used to end up purchased in Guatemala and mixed with Guatemalan beans, since, as a 2010 USDA report put it, "Guatemalan coffee is often sold at a premium in the international market, while Honduran coffee is typically sold at a discount". One year later, that statement had been changed to reflect a new reality; now importers are "more aware of the quality coffee that it is being produced in Honduras which has increased demand within the formal market".
Consequently, one of the reasons Honduras is expected to move into second place as a world coffee producer is "a sharp drop in smuggling Honduran beans to Guatemala" leading the year's projection to be increased from 3.8 million bags to 4.29 million. In 2010, the estimate was that between 400,000 and 650,000 bags of Honduran coffee made their way across the Guatemalan and Nicaraguan borders without being registered, to be consumed under the names of these more established premium coffees. But as Dow Jones notes, "so far this season, Honduran coffee has been fetching higher prices than Guatemalan coffee, averaging $2.46 per pound through Aug. 3, as Honduran coffee gains quality recognition". This year, only 260,000 bags of Honduran origin are expected to trickle across the borders as contraband.
Not coincidentally, Honduran media are also reporting new funding of 11 million lempiras (about $560,000) invested in businesses of coffee producers in Sensenti, in the western Honduran state of Ocotepeque. The funds come from a public-private initiative supported by the World Bank and the Honduran government. About 4 million lempiras ($203,000) of the funding is in the form of loans from private and commercial sources.
A key goal is to increase the export of fine and "special" coffees in the international market. Already in 2005, the USDA report tells us, Honduras established a "Denomination of Protected Origin" for coffee from Marcala. In April 2010, the USDA reported that less than 8% of Honduran coffee produced in 2008-2009 was "specialty coffee", the kind that ends up being labeled by origin at trendy coffee shops. By April of this year, the proportion had risen to about 14%.
One of the two groups receiving funding is committed to increasing the production of "eco-friendly" coffee by 40%, which their business plan reportedly says should increase net earnings by 50% (due to the premium price that would be received for the more select coffee).
Coffee exports continuing to increase are critical if Honduras is to decrease its trade deficit on commodities. Earlier this year, the Banco Central de Honduras projected a deficit of about $6.3 million. At that point the year-to-year comparison showed the deficit larger than in the comparable period in 2010. Coffee exports were specifically singled out as promising to keep the deficit lower than would otherwise be projected. Coffee made up over 48% of commodity export income at the time of that article, with bananas far behind at just over 8%, and African palm oil, gold, melons, shrimp, sugar, silver and zinc following.
But is this all good news?
Concerns have been raised about the ecological impacts of increased coffee cultivation.
Indiana University anthropologist Catherine Tucker notes that
As long ago as 1999 a writer for Honduras This Week noted the negative ecological effects of the introduction of sun coffee, which eliminates the need for shade, and thus the incentive to maintain a more mixed vegetation that Tucker argues maintains a similar biodiversity to forests. The Honduran Coffee Institute IHCAFE in 2008 claimed that shade-grown coffee constituted 98% of that grown in the country. Ellen Mickle, who studied Honduran coffee growing for her 2009 BA Honors thesis in Environmental Studies at the University of Nebraska, placed the proportion of shade coffee in Honduras at between 65% and 98% in a 2010 article for Roast magazine.
The amounts paid most coffee workers do not constitute a living wage. US Embassy sources note that even low-wage vegetable farms paying 150 lempiras a day ($8) offered better pay than coffee picking, which paid only 80 lempiras (about $4.25). Progressive media have also questioned the use of child labor in coffee cultivation.
And then there is the question of the social impacts of coffee production, where the most valued lands are located precisely where the people with the most vulnerable economic and social positions live, including many indigenous communities. The research results are actually reasonably promising, although not due in the end to government policy so much as grass roots Honduran initiative.
Anthropologist Tucker's paper for the 2008 conference of the International Association for the Study of Commons describes strategies used by the Lenca community of La Campa, located in a coffee-producing area of western Honduras, to maintain control of land. Here, even as coffee production increased
These positive findings were tempered by observations of increased inequality, especially in land access. As Tucker notes, in a pattern unique in Central America, Honduras did not redistribute land to large coffee plantations in the 19th century, one of the factors delaying the expansion of the coffee industry there. She argues that government policy then aimed to encourage expansion of agricultural production fostered a decision to grant land titles to communities, not just individuals. Among those communities were indigenous pueblos that were able to maintain control of land as a result. Coffee production was split among more small producers, rather than concentrated in the hands of a few large landowners.
Indeed, even today the USDA report pointedly underlines this distinction:
This situation came under pressure in the 1980s, with a move to replace land titles that were communal or simply traditional (and thus undocumented) with individual titles, on the model of individual landholding familiar in the US, and favored by US-fostered Honduran governments. In parallel, new efforts went into expanding coffee cultivation, with new roads built to formerly remote locations, again with US support. While La Campa managed to control land, the circumstances involved show that this depended largely on the efforts of the local community, and in particular, on the choice made by many to seek communal, rather than individual, land titles.
In another study of the social relations of coffee production, anthropologist Erin Smith examined one cooperative marketing to the Fair Trade sector. She concluded that the Fair Trade movement was "a key contributor to sustainable income generating strategies and socio-economic stability among rural, small-scale farmers" in this cooperative, an outcome she credits to the local farmers' own ability to organize and to international NGO support.
At the same time, she cites the cost and difficulty of being certified and maintaining standards as barriers that the cooperative members had to overcome, and notes that some individual farmers were discouraged by these factors. It took time-- five to six years-- for the cooperative to see the full benefits from the Fair Trade relationship. Participants had to be willing and able to invest efforts for years to see the benefits.
The thread that runs through both of these studies is that local actions by organized groups made the difference. As the value of coffee exports increases we can expect incentives for larger landowners to seek control of more of the coffee sector to put new pressures on smallholders and communities holding land traditionally, or organized as cooperatives.
So by all means buy that new Marcala, Copan, or La Campa single-source cup in your local coffee shop. But keep an eye out for news that might indicate that you are drinking an unhealthy brew.
I myself prefer tea. But when I began doing research in Central America, I learned to drink coffee. Tea bags were imported and very expensive, especially unaffordable the summer I was given $10 a week as a stipend.
Cafe El Indio ads saturated billboards and radio. The coffee that I remember most fondly was prepared on visits to the campo, prepared from whole beans roasted one batch at a time. Back in La Lima, though, coffee came from little brown paper bags with the logo of a Plains Indian in war bonnet printed in red, where the coffee tasted a lot like the bag.
Coffee is big business in Honduras. Costa Rican and Guatemalan coffee may have more brand-visibility, but Honduras actually produces more coffee than Costa Rica, and depending on the source you consult, close to or more than Guatemala. The Honduran government has just announced projections of production for the current season that would make the country the second largest producer of washed arabica beans (the variety that is desirable for fine coffee drinking), remaining only behind Colombia.
Coffee cultivation is ubiquitous in Honduras: a USDA overview this April reports that coffee was being grown in 213 of the 298 Honduran municipios, distributed in 15 of the 18 departments that comprise the country. According to the same source, 30% of the Honduran population was employed in the coffee industry. Domestic consumption has been rising, fueled by urban coffee shops that are in demand for internet access, up 56% from 2008 to 2009. But still, most of the crop (90%) is exported.
Not all of this production comes into world markets labeled as Honduran.
Substantial amounts of Honduran beans used to end up purchased in Guatemala and mixed with Guatemalan beans, since, as a 2010 USDA report put it, "Guatemalan coffee is often sold at a premium in the international market, while Honduran coffee is typically sold at a discount". One year later, that statement had been changed to reflect a new reality; now importers are "more aware of the quality coffee that it is being produced in Honduras which has increased demand within the formal market".
Consequently, one of the reasons Honduras is expected to move into second place as a world coffee producer is "a sharp drop in smuggling Honduran beans to Guatemala" leading the year's projection to be increased from 3.8 million bags to 4.29 million. In 2010, the estimate was that between 400,000 and 650,000 bags of Honduran coffee made their way across the Guatemalan and Nicaraguan borders without being registered, to be consumed under the names of these more established premium coffees. But as Dow Jones notes, "so far this season, Honduran coffee has been fetching higher prices than Guatemalan coffee, averaging $2.46 per pound through Aug. 3, as Honduran coffee gains quality recognition". This year, only 260,000 bags of Honduran origin are expected to trickle across the borders as contraband.
Not coincidentally, Honduran media are also reporting new funding of 11 million lempiras (about $560,000) invested in businesses of coffee producers in Sensenti, in the western Honduran state of Ocotepeque. The funds come from a public-private initiative supported by the World Bank and the Honduran government. About 4 million lempiras ($203,000) of the funding is in the form of loans from private and commercial sources.
A key goal is to increase the export of fine and "special" coffees in the international market. Already in 2005, the USDA report tells us, Honduras established a "Denomination of Protected Origin" for coffee from Marcala. In April 2010, the USDA reported that less than 8% of Honduran coffee produced in 2008-2009 was "specialty coffee", the kind that ends up being labeled by origin at trendy coffee shops. By April of this year, the proportion had risen to about 14%.
One of the two groups receiving funding is committed to increasing the production of "eco-friendly" coffee by 40%, which their business plan reportedly says should increase net earnings by 50% (due to the premium price that would be received for the more select coffee).
Coffee exports continuing to increase are critical if Honduras is to decrease its trade deficit on commodities. Earlier this year, the Banco Central de Honduras projected a deficit of about $6.3 million. At that point the year-to-year comparison showed the deficit larger than in the comparable period in 2010. Coffee exports were specifically singled out as promising to keep the deficit lower than would otherwise be projected. Coffee made up over 48% of commodity export income at the time of that article, with bananas far behind at just over 8%, and African palm oil, gold, melons, shrimp, sugar, silver and zinc following.
But is this all good news?
Concerns have been raised about the ecological impacts of increased coffee cultivation.
Indiana University anthropologist Catherine Tucker notes that
coffee plantations are making incursions into important watersheds and high biodiversity forests. These processes occur in a context of climate change that is disrupting traditional expectations of weather patterns.
As long ago as 1999 a writer for Honduras This Week noted the negative ecological effects of the introduction of sun coffee, which eliminates the need for shade, and thus the incentive to maintain a more mixed vegetation that Tucker argues maintains a similar biodiversity to forests. The Honduran Coffee Institute IHCAFE in 2008 claimed that shade-grown coffee constituted 98% of that grown in the country. Ellen Mickle, who studied Honduran coffee growing for her 2009 BA Honors thesis in Environmental Studies at the University of Nebraska, placed the proportion of shade coffee in Honduras at between 65% and 98% in a 2010 article for Roast magazine.
The amounts paid most coffee workers do not constitute a living wage. US Embassy sources note that even low-wage vegetable farms paying 150 lempiras a day ($8) offered better pay than coffee picking, which paid only 80 lempiras (about $4.25). Progressive media have also questioned the use of child labor in coffee cultivation.
And then there is the question of the social impacts of coffee production, where the most valued lands are located precisely where the people with the most vulnerable economic and social positions live, including many indigenous communities. The research results are actually reasonably promising, although not due in the end to government policy so much as grass roots Honduran initiative.
Anthropologist Tucker's paper for the 2008 conference of the International Association for the Study of Commons describes strategies used by the Lenca community of La Campa, located in a coffee-producing area of western Honduras, to maintain control of land. Here, even as coffee production increased
the community has retained common property woodlots and grazing areas, and created a protected watershed in a cloud forest...forest cover expanded between 1987 and 2000, and protections of communal forests increased even as privatization proceeded in areas suitable for coffee production.
These positive findings were tempered by observations of increased inequality, especially in land access. As Tucker notes, in a pattern unique in Central America, Honduras did not redistribute land to large coffee plantations in the 19th century, one of the factors delaying the expansion of the coffee industry there. She argues that government policy then aimed to encourage expansion of agricultural production fostered a decision to grant land titles to communities, not just individuals. Among those communities were indigenous pueblos that were able to maintain control of land as a result. Coffee production was split among more small producers, rather than concentrated in the hands of a few large landowners.
Indeed, even today the USDA report pointedly underlines this distinction:
Honduras differs from other coffee-growing countries in the region because of the prevalence of small producers. 85,000 producers who annually produce less than 77 bags of 60 kg. of coffee constitute more than 90 percent of all production in Honduras and contribute to 50 percent of total exports.
This situation came under pressure in the 1980s, with a move to replace land titles that were communal or simply traditional (and thus undocumented) with individual titles, on the model of individual landholding familiar in the US, and favored by US-fostered Honduran governments. In parallel, new efforts went into expanding coffee cultivation, with new roads built to formerly remote locations, again with US support. While La Campa managed to control land, the circumstances involved show that this depended largely on the efforts of the local community, and in particular, on the choice made by many to seek communal, rather than individual, land titles.
In another study of the social relations of coffee production, anthropologist Erin Smith examined one cooperative marketing to the Fair Trade sector. She concluded that the Fair Trade movement was "a key contributor to sustainable income generating strategies and socio-economic stability among rural, small-scale farmers" in this cooperative, an outcome she credits to the local farmers' own ability to organize and to international NGO support.
At the same time, she cites the cost and difficulty of being certified and maintaining standards as barriers that the cooperative members had to overcome, and notes that some individual farmers were discouraged by these factors. It took time-- five to six years-- for the cooperative to see the full benefits from the Fair Trade relationship. Participants had to be willing and able to invest efforts for years to see the benefits.
The thread that runs through both of these studies is that local actions by organized groups made the difference. As the value of coffee exports increases we can expect incentives for larger landowners to seek control of more of the coffee sector to put new pressures on smallholders and communities holding land traditionally, or organized as cooperatives.
So by all means buy that new Marcala, Copan, or La Campa single-source cup in your local coffee shop. But keep an eye out for news that might indicate that you are drinking an unhealthy brew.
Thursday, January 6, 2011
Control of Corruption
So just what is this indicator called "control of corruption" for which the Lobo Sosa government would like to allocate blame to Manuel Zelaya Rosales?
The Millennium Challenge Corporation scorecards are built from data assembled by a variety of third parties. This particular indicator is one of six assembled by the World Bank ('voice and accountability', 'political stability and absence of violence', 'government effectiveness', 'regulatory quality', 'rule of law', and 'control of corruption').
The World Bank says the 'control of corruption' measure
Note that last part, about capture of the state by elites and private interests. That's a big part of the problem in Honduras. Not to say that there isn't corruption by government officials for private gain because there certainly is, though no one has quantified it. However, the capture of the state by elites is a significant factor in this indicator, and the coup d'etat exposed just how tightly the Honduran state has been captured by "elites and private interests".
As our previous post shows, the MCC scorecards don't support the claim that this measure was the key to Honduras not being selected for a new Compact. Here's a chart of the World Bank data on this measure from 1996 to 2009:
What the chart shows is that 71%-80% of the world's countries rate better than Honduras on this measure, and that the results haven't changed that much, regardless of which party is in power, since 1998.
Our previous post also noted that Honduras had some problems during the MCC Compact in the 'rule of law' measure. According to the World Bank, 'rule of law'
The World Bank supplies data from 1996 through 2009 for this measure. Here's the chart:
As you can see, here the chart again shows Honduras with a low score, with 70% to 82% of the countries rated scoring better. It shows a pattern of year to year gains, then a steep crash under the Maduro administration, and then slight gains again under Zelaya.
Politicians, of course, are not required to pay any attention to actual data. In the Honduran context, it is probably great politics for the Lobo Sosa administration to blame this decision on Zelaya. But failing to come to grips with the actual history of performance is unlikely to help the country make a case to the MCC for a future Compact.
It isn't hard to find the data; what may be lacking is the will to face the facts.
The Millennium Challenge Corporation scorecards are built from data assembled by a variety of third parties. This particular indicator is one of six assembled by the World Bank ('voice and accountability', 'political stability and absence of violence', 'government effectiveness', 'regulatory quality', 'rule of law', and 'control of corruption').
The World Bank says the 'control of corruption' measure
captures perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.
Note that last part, about capture of the state by elites and private interests. That's a big part of the problem in Honduras. Not to say that there isn't corruption by government officials for private gain because there certainly is, though no one has quantified it. However, the capture of the state by elites is a significant factor in this indicator, and the coup d'etat exposed just how tightly the Honduran state has been captured by "elites and private interests".
As our previous post shows, the MCC scorecards don't support the claim that this measure was the key to Honduras not being selected for a new Compact. Here's a chart of the World Bank data on this measure from 1996 to 2009:
What the chart shows is that 71%-80% of the world's countries rate better than Honduras on this measure, and that the results haven't changed that much, regardless of which party is in power, since 1998.
Our previous post also noted that Honduras had some problems during the MCC Compact in the 'rule of law' measure. According to the World Bank, 'rule of law'
captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of the contract enforcement, property right, the police, and the courts, as well as the likelihood of crime and violence.
The World Bank supplies data from 1996 through 2009 for this measure. Here's the chart:
As you can see, here the chart again shows Honduras with a low score, with 70% to 82% of the countries rated scoring better. It shows a pattern of year to year gains, then a steep crash under the Maduro administration, and then slight gains again under Zelaya.
Politicians, of course, are not required to pay any attention to actual data. In the Honduran context, it is probably great politics for the Lobo Sosa administration to blame this decision on Zelaya. But failing to come to grips with the actual history of performance is unlikely to help the country make a case to the MCC for a future Compact.
It isn't hard to find the data; what may be lacking is the will to face the facts.
Sunday, April 25, 2010
"It Should Be Automatic"
Mario Canahuati, Honduras's Foreign Minister, says Honduras's readmission to the OAS should be automatic when the OAS next convenes in Peru on June. He currently is in the US to meet with Miguel Insulza to lobby for Honduras's reinsertion in the OAS. In a La Tribuna article, he's quoted as saying "the seventh point of the Tegucigalpa-San Jose Accord says Honduras should be reintegrated into the different forums, and nothing remains but for the OAS to fulfill its promise under the document." In Canahuati's vision, it's automatic because they've fulfilled the letter, if not the intention, of the clauses of the Tegucigalpa-San Jose Accord, so they should be allowed back in to play with other countries.
The OAS has a slightly different view. Albert R. Ramdin, the Assistant Secretary General of the OAS, said that the OAS “continues to seek solutions”, and “supports the efforts started by the governments of Central America to create the necessary conditions for the readmission of Honduras to the Organization”.
The OAS determined last July, under Article 21 of the Democratic Charter, that there had been an "unconstitutional interruption of the democratic order of a member state", and that diplomatic initiatives to correct the situation had failed. More than two-thirds of the member countries voted to suspend Honduras. Although suspended, Article 21 still required that Honduras uphold all its OAS obligations, including human rights obligations.
Under Article 22, restoration may be proposed, once the situation is resolved, by the Secretary General of the OAS (Miguel Insulza) or any member state, and will require that two-thirds of the member countries vote in favor of restoration.
You see the problem. While the United States, and several Central American countries are working for Honduras's readmission as a member in good standing in the OAS, there are other countries that have expressed concerns. These countries, including most of South America and Mexico, remain uncertain about whether Honduras should be readmitted at this time.
Honduras hasn't exactly complied with its human rights obligations as required under Article 21. It was added to the OAS Human Rights organization's "black list" in April. It also is not clear that even if the will was there to uphold human rights on the part of the government, that the judicial system has the required independence. Human rights violations aren't grounds for suspension, but they certainly will be taken into account in discussing reincorporation. While the US would like to say the situation is resolved and that Porfirio Lobo Sosa was democratically elected, as Hillary Clinton said in Costa Rica last month, there are other governments that have a different view.
Why is all of this important? What's at stake is the unlocking of aid from the World Bank and International Monetary Fund. Both have stated in the past that Honduras being reincorporated into the OAS would be required before funding could actually be restored. That funding, along with money from the BCIE and BID is critical to staving off a complete collapse of the Honduran economy.
The OAS discussions in June in Lima, Peru should be interesting.
The OAS has a slightly different view. Albert R. Ramdin, the Assistant Secretary General of the OAS, said that the OAS “continues to seek solutions”, and “supports the efforts started by the governments of Central America to create the necessary conditions for the readmission of Honduras to the Organization”.
The OAS determined last July, under Article 21 of the Democratic Charter, that there had been an "unconstitutional interruption of the democratic order of a member state", and that diplomatic initiatives to correct the situation had failed. More than two-thirds of the member countries voted to suspend Honduras. Although suspended, Article 21 still required that Honduras uphold all its OAS obligations, including human rights obligations.
Under Article 22, restoration may be proposed, once the situation is resolved, by the Secretary General of the OAS (Miguel Insulza) or any member state, and will require that two-thirds of the member countries vote in favor of restoration.
You see the problem. While the United States, and several Central American countries are working for Honduras's readmission as a member in good standing in the OAS, there are other countries that have expressed concerns. These countries, including most of South America and Mexico, remain uncertain about whether Honduras should be readmitted at this time.
Honduras hasn't exactly complied with its human rights obligations as required under Article 21. It was added to the OAS Human Rights organization's "black list" in April. It also is not clear that even if the will was there to uphold human rights on the part of the government, that the judicial system has the required independence. Human rights violations aren't grounds for suspension, but they certainly will be taken into account in discussing reincorporation. While the US would like to say the situation is resolved and that Porfirio Lobo Sosa was democratically elected, as Hillary Clinton said in Costa Rica last month, there are other governments that have a different view.
Why is all of this important? What's at stake is the unlocking of aid from the World Bank and International Monetary Fund. Both have stated in the past that Honduras being reincorporated into the OAS would be required before funding could actually be restored. That funding, along with money from the BCIE and BID is critical to staving off a complete collapse of the Honduran economy.
The OAS discussions in June in Lima, Peru should be interesting.
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