A camouflage cowboy
How far can he go? When Manuel Zelaya, Honduras’ president, was elected in 2006, a sense of relief was palpable among the people. A businessman, chosen to be the people’s chief! Granted, there were some uncomfortable rumors about electoral fraud and the man always wore such an exotic Texan cowboy hat, but he had done so well in business, surely he would do well for his nation too?
Three years later, the nation feels fooled and abandoned. Zelaya is even richer than when he started, but his people cannot say the same. He hasn’t got many political allies left, let alone friends among the people.
Early in 2008 Zelaya decided that buying electricity was too costly for the state, and he decided to raise prices with an average 90%, from one day to another! Although there was a limit below which people didn’t have to pay anything at all, this was only for those with one bulb and a transistor radio, who have no money to survive to begin with.
After an insane year filled with laws and rules that made the man’s popularity sink to a hilarious, unfathomable – 11 % (Oh yes, in Honduras this is possible) he suddenly decided to boost his rating with an unthinkable act: the minimum wage had to be raised a stunning 55%, immediately!
At first sight, this may seem the stroke of a genius to solve the entire poverty problem, but in reality the devastating effects were felt within weeks. National companies have begun massive lay offs because they cannot afford to pay the wages and international companies are making good on their threats to move to cheaper havens nearby. Price hikes are exploding because companies are forced to increase their turnover dramatically to make some money. The 40% of the population who work in the informal economy (markets, street vendors, agriculture…) are not eligible for higher wages and increasingly unable to buy anything at all, let alone the 20% of the population who had no income anyway.
For our partners in Honduras, this is a hefty obstacle too. Should they fire employees? Even less educators per child, while they are craving attention as it is? Should they limit food supplies, while there’s hardly too much to eat anyway? Proniño needs another € 1.500 (2.000 $) and Hogar Suyapa € 2.200 (3.000 $).
Currently, we are working hard with our American partners to find the necessary funds to avoid firing anyone. Although, Zelaya himself of course will undoubtedly be fired by his people by the end of this year! What will the next president bring?
