"Xiomara Castro's Government Struggles with Remittances in Honduras"
Honduras, the Latin American country most dependent on remittances, is caught in a "remittances trap" that keeps the government reliant on these funds while neglecting basic services and the root causes of migration. President Xiomara Castro's administration has failed to establish an anti-corruption commission and has expanded the military's role in security, raising concerns about human rights violations. Castro's decision to cut ties with Taiwan in favor of China was driven by economic motives, but migration continues to increase. Remittances sustain private consumption but hinder productivity and job creation, perpetuating the cycle of migration. To maximize the positive impact of remittances, Honduras should focus on financial inclusion and gender-specific approaches to encourage savings and investment.
