Route to economic failure

Route to economic failure
Route to economic failure

Although the main objective should always be to strengthen and develop a country’s economy to achieve the well-being of all its inhabitants, and even though it is neither ethical nor desirable for a nation’s economy to fail, it is interesting to know what the shortest route is to ensure that the national economy ends up ruined.

So I asked the Aria AI how this fateful task could be achieved, and its enlightened response was as follows: “Here are some points that could contribute to that outcome:

1.- Political instability: constant political conflicts can generate uncertainty and distrust among investors, which negatively affects the economy.

2.- Widespread corruption: corruption can divert resources that could be used for economic development, undermining confidence in institutions and discouraging investment.

3.- Lack of transparency: the lack of transparency in economic policies and resource management can generate distrust and hinder informed decision-making by economic agents.

4.- Unsustainable debt: accumulating unsustainable debt without a clear strategy for its management can lead to financial crises that severely impact the economy.

5.- Lack of economic diversification: excessive dependence on a single economic sector can make a country vulnerable to fluctuations in world prices and sectoral crises.

6.- Extreme inequality: an unequal distribution of wealth can generate social tensions, affect social cohesion and limit the potential for long-term economic growth.

7.- Lack of education and training: A poorly educated and trained workforce can limit a country’s ability to compete in the global economy and adapt to technological changes.

8.- Uncontrolled inflation: high and uncontrolled inflation can erode the purchasing power of the population, affect economic stability and discourage investment.”

In my opinion, of the eight negative factors mentioned by Aria, six of them are present to some extent in Honduras, corresponding to numbers 1, 2, 3, 5, 6 and 7; which indicates that we are not following the correct path to achieve prosperity and well-being for Hondurans.

Fortunately, the total public debt (4) is still on the decline in the country, as it does not exceed 50.0% of the nation’s Gross Domestic Product (GDP) for now. In addition, inflation (8) is low and will remain below 5.0% at the end of this year.

The six negative factors mentioned by Aria are long-standing problems that are not the exclusive responsibility of the current government.

Although the current government administration only has two more years left in office, I believe that it can do something to improve the country’s economic situation and achieve greater well-being for all citizens. It would be enough for the authorities to allocate more resources to infrastructure and productive investment, so that many young people, adults and women heads of household can have a reasonably decent job.

In this regard, another great contribution from the government would be to take firmer steps to achieve the formalization of many micro and small businesses that currently operate informally, for which the necessary and correct incentives must be created.

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