Prayers for Matt

Prayers for Matt and Katie here in Honduras. It is difficult to know what to say or how to support people who are suffering or dealing with difficult situations. I know God will sustain them and uphold them. He is who will be their guide and their rock!

Looking back.... August 25, 2008

Today Honduran President Manuel Zeleya signed an agreement with five countries that could have implications on the future of the country. I wrote the attached article about the situation, but want to see what all of you think of it. I don't want to post it on the PW blog so as not to associate the organization with political or economic views. Maybe it will help to understand the situation of the country.

It should not have surprised me, but it did. The military tank was strategically located on the bridge at the entrance of my neighborhood. The tank was not the only reminder that today, August 25, 2008, is no ordinary day in the history of Honduras. The route between Toncontin International Airport and the Presidential House was lined with soldiers holding large guns.

The militarization of Tegucigalpa, the capital of Honduras, was due to the arrival of Daniel Ortega (President of Nicaragua), Evo Morales (President of Bolivia), Carlos Laje (Vice President of Cuba), and Hugo Chavez (President of Venezuela). Along with the small South Caribbean island of Dominica, the nations represented form the Bolivarian Alternative for the Americas (ALBA).

Created after the Venezuela-Cuba Agreement of 2004, ALBA is an alternative to the Neo-liberal Free Trade Area of the Americas proposed by the United States of America. ALBA seeks improvements to social welfare and regional economic integration in comparison to Free Trade Agreements that ALBA supporters say only seek trade liberalization.

Promised with the joining of ALBA are improvements to education, health and the economy. In coming months, teachers and doctors from Cuba are expected to provide medical services and reduce to zero the number of illiterate in the country. Campesinos (rural peasants) are expected to benefit from agricultural programs financed by the Bank of Venezuela and scholarships to study in Venezuela. With the vast national gas resources of Bolivia and the crude oil of Venezuela, Honduras also hopes to continue to receive favorable payment options for the purchase of petroleum.

Earlier this year, Honduras joined Venezuela’s oil alliance called Petrocaribe. For countries that are net importers of petroleum, the alliance is somewhat like a loan in that it provides governments with quick cash and assets that they will pay off during a future administration. Honduras receives petroleum from Venezuela with a very small down payment and promises to pay off the remaining value of the purchase over the next 25 years at 1% interest. The government has quick cash as it sells petroleum products like diesel to Hondurans or uses it as the energy source for state owned enterprises that generate electricity, which in turn is also sold to the public. The profit from Petrocaribe is being used to maintain the national budget of Honduras.

The signing of ALBA has also generated fear among Hondurans who believe in democracy and free market economies. Immigrants living in the United States are worried that they will face deportation as diplomatic ties between the US and Honduras weakens. Should this occur, the Honduran economy would also suffer as immigrant remittances represent over 20% of the Gross Domestic Profit.

Fears also have been expressed by the private sector of the economy that see currency devaluation, inflation and a drop in foreign investment with the new socialist leaning approach to development in ALBA. One look to their southern neighbor and ALBA member Nicaragua confirms the fears of Hondurans. Nicaragua suffers from the highest inflation of Central America at 21.8%, followed by Costa Rica at 12.24% and Honduras at 11.2%. The growth of Gross Domestic Product of Nicaragua is at 3.8% while the regional average in Central America is at 6.43% (Source: Estrategia & Negocios).

Finally, Hondurans fear that there is a military commitment included in ALBA. Hugo Chavez built up the Venezuelan Armed Forces and the webpage of ALBA mentions proposals of a regional and multinational army to defend South American petroleum and energy interests. It is widely assumed from the rhetoric of Hugo Chavez that this defense would be against the United States. Today on the streets of Tegucigalpa signs were hung that read, “No to Political-Military Agreements.”

Public dissent to ALBA is seen not only on roadsides but also in the press, something noted by Hugo Chavez before arrival to Honduras. At the airport the Venezuelan President refused to take questions from the Honduran press. He instead took advantage of their presence to explain that the owners of television and radio where “Yankee Sympathizers” and instead only took questions from Venezuelan reporters that traveled with him to Honduras.

At the end of the day I am left with an unclear picture of what ALBA will mean for Honduras. I hope it will be one of economic growth with benefits in the education and health options for the country. I have great fear, however, that negative results will be seen from the alliance with Venezuela.

There was one detail of the army tank that I did not understand. On its long radio antenna were three solid, single colored mini flags in the shapes of triangles. One might describe them as mini pennants. The highest pennant was yellow, the middle blue and the final red. Upon return to my office my suspicions were confirmed that this tank displayed the colors in correct order of the flag of Venezuela.