National Autonomous University Of Honduras

National Autonomous University of Honduras

Introduction

In a world in which through the passage of time and the evolution of the same humanity it has sought an organization between peoples and an organization of their economy, different systems have been raised to meet the needs of citizens. In the search for a balance between the intervention of a State in the economy of a country and the participation of the private sector in the economy, a system arises that links a capitalist or market system and a socialist or planning system, having a contributiongreater by one of these, called the mixed economic system, whose emergence is attributed to the British economist John Maynard Keynes.

The present essay aims to analyze the mixed economic system in Honduras, and identify the main reasons why the Republic of Honduras is governed by a mixed system, according to the doctrinal explanation and applicability in current reality, through explanationof a mixed economic system, the intervention of the State in the economy of Honduras, as well as the participation of the private sector in the economy, this being the greatest contributions towards our developing economy, reaching both sectors (public and private company), in the sustainability of the Honduran economy.

Developing

As a starting point, it is imperative to resume a concept of an economic system and consequently one of the mixed economic system, the first refers to the forms of economic, social and political organization that societies adopt, to solve the problem of how to meet the needs of theirCitizens and the second refers to an economic organization system in which the performance of the private sector is combined with that of the public sector, which acts as a regulator and corrector of the first.

That is, we can see a market share, better known as a capitalist economic system and the participation of central planning, known as the socialist economic system. According to Maynard Keynes’s study, within the mixed system when referring to the capitalist system,

But what happens when the consumer, or a percentage of the population fail to obtain goods or services according to the market price? It is in this precise point that we manage to look at a state participation, or, such as the participation of the public sector in the economy, referring to the relationship to the socialist economic or central planning system, since it is the work of the same state to mitigate some effectWithin the market, when regulating its operation, in addition to providing in the satisfaction of needs to that group of people who cannot obtain products for the price set in the market, or cover the essential needs that the private company is not covering. 

It should? It should be noted that within the mixed system it will occur what consumers demand, where the company produces and the State will cover the essential needs as previously mentioned, and the form of production will be through an effective technique and factors in conjunction with the mediaof production, while the State will do so in order to obtain a degree of satisfaction, and will occur for both those who can obtain the product according to the fixed price, or for those who do not have enough income.

Now, since a brief explanation of what is in itself a mixed economic system has been proposed, you can continue to comment on the participation of the state of Honduras within the national economy. The participants within it, will be those institutions belonging to the State, whether of goods or services, such as electrical energy, through the National Electric Power Company (ENEE), fixed telephony with the Honduran Telecommunications Company (Hondutel),Drinking water, through the National Autonomous Service of Aqueducts and Sewers (SANAA), Basic Consumption Products, through the National Product Supplier Bank (Banasupro), among others, in search of benefits for the Honduran population. 

Since Honduras has a certain amplitude of state intervention within its economy, it may be feasibleIndeed, modifications would be viable in the management of the economy, since if the State is in charge of ensuring each citizen and to meet the essential needs towards those who have not been able to obtain from the market we can affirm with research from the World Bank,Honduras is a country of middle-low income that faces significant challenges, with about 66 percent of the population living in poverty in 2016, according to official data. 

In rural areas approximately one in 5 Hondurans live in extreme poverty or less than US $ 1.90 a day. Being impossible to disagree with conclusions from the World Bank, Honduras as a solution to the present problem, it has been discussed on the privatization of services, so that the economy improves and has a good functioning, regulation and supervision in the offer of the service, such as theExample of Aguas de San Pedro in 2001, when in the city of San Pedro Sula it was decided to privatize the drinking water service. Therefore, it can be seen that the public sector participation in the economy of a country is of the utmost importance,

Since the mixed system links the public sector with the private sector, it is evident that in Honduras it is applied in the same way, since there is a great report by the private company towards the Honduran economy. The private sector in Honduras is composed of the different registered societies, merchants, among others, where the businessman is the owner of the means of production and works through the law of supply and demand, whose operation has been supervised by the Honduran Council of thePrivate Company (COHEP), which seeks to contribute to the national economy through the strengthening of free company. 

Free company can define as an economic system in which production factors are subject to private appropriation and are used to obtain benefits for their owners, producing goods and services that are sold directly or indirectly to consumers. To clarify the concept, it is a term used mostly in the capitalist system, in which the private sector owns the means of production, offers the goods and services in the market so that the consumer can obtain it. It is logical to think that, the different types of companies are the largest countries of jobs in our, as Carlos Madero emphasizes “that the unemployment rate in Honduras fell from 6.7% in 2018 to 5.7% in whatgoes from 2019, that is, the unemployed population in the country this year is 250.000 people. 

It means that in effect, there is unemployment in Honduras, but without the existence of the private company within our territory, the percentage of unemployment would be greater, so it is that the private company greatly influences the economy of Honduras. You have to take into account the amount of jobs that the private sector has provided, currently the Honduran Association of Maquiladores establishes that they have used approximately 167,462 people, having an 80.6% of employees within the private sector according to studies carried out by the Secretary of Labor and Social Security, these data support the statement that the greatest contribution to the country’s economy is by the private sector and not by the public sector.

Therefore, according to the doctrine in the mixed economy system, it is the private sector or the private company who participates mostly in the national economy, and that the public sector intervenes to mitigate or to cover certain needs, not all. When analyzing these data, a question arises. Does Honduras count with vast possibilities of choice even with the great participation of the private sector in the Honduran economy? Well, dreaming in a perfect economy with abundant offers and possibilities of choice, for the moments in our country, it would be mostly approaching a utopia, where there are currently no solved problems and who has been achieving greater advance is the private sector, but thePerfect economy within the mixed system could be emphasized mostly in a balance of both sectors where the largest beneficiary is the population and development of the country. A question arises, does Honduras count with vast possibilities of choice even with the great participation of the private sector in the Honduran economy?.

Well, dreaming in a perfect economy with abundant offers and possibilities of choice, for the moments in our country, it would be mostly approaching a utopia, where there are currently no solved problems and who has been achieving greater advance is the private sector, but thePerfect economy within the mixed system could be emphasized mostly in a balance of both sectors where the largest beneficiary is the population and development of the country. A question arises, does Honduras count with vast possibilities of choice even with the great participation of the private sector in the Honduran economy? Well, dreaming in a perfect economy with abundant offers and possibilities of choice, for the moments in our country, it would be mostly approaching a utopia, where there are currently no solved problems and who has been achieving greater advance is the private sector, but thePerfect economy within the mixed system could be emphasized mostly in a balance of both sectors where the largest beneficiary is the population and development of the country.

Therefore, in Honduras both the public and private sector have sought harmony, when they previousCountry, lawyer Juan Orlando Hernández presented himself with the aim of urging both sectors to work together for the improvement of the Honduran economy and the development of the country, in which the Government would facilitate conditions for private companies to generate the sources ofnecessary employment . Only working together can reach a stable development, in which there is not a single beneficiary sector, nor a disprortated country, without resources for their livelihood,

In Honduras a third sector enters, which cannot be left out, the social sector of the economy. This is governed by the Law of the Social Sector of the Economy, whose article 1 expressly establishes: declare of public interest the organization, promotion and development of the social sector of the economy, to contribute to humanize the economic and social development of the country, ofaccording to the principles of efficiency in production, social justice in the distribution of wealth and national income, democratic and harmonious coexistence in the various forms of property and companies that support the economic system of Honduras, according to the Constitutionof the Republic. The social sector of the economy is defined as the set of companies and organizations formed by workers who support the primacy of work, opt for social property of the means of production and that the surplus generated is a means to raise the standard of living ofIts members. 

In other words. Examples of this sector are associative companies of peasants, communal banks, cooperatives, and supply stores, among others. Being the Honduran Council of the Social Sector of the Economy, the entity that supervises and watches over the present sector. production and marketing for the benefit of associates and community. Examples of this sector are associative companies of peasants, communal banks, cooperatives, and supply stores, among others. Being the Honduran Council of the Social Sector of the Economy, the entity that supervises and watches over the present sector. production and marketing for the benefit of associates and community. Examples of this sector are associative companies of peasants, communal banks, cooperatives, and supply stores, among others. Being the Honduran Council of the Social Sector of the Economy, the entity that supervises and watches over the present sector.

conclusion

In conclusion, in Honduras a mixed economic system is practiced by the contribution that the private company and the state of Honduras have. However, there is a lack of economic development in the country, where there are families with an unfortunate life, and whose approach to the economy must be ideally the well -being of the population, being possible to coincide with Juan Domingo Perón, former president of the Argentine nation, when he expressed: ‘The organization of wealth and its exploitation is finally. Phrase that can be shared on the occasion of suggestion towards the different state authorities and private companies, that their act in the Honduran economy is to support the population and more to those vulnerable families that do not have a decent life,

Bibliography

• · Sullings, G, Beyond capitalism, mixed economy, humanist bookstore
• · The social economy in Honduras, Honduran Council of the Social Sector of the Economy
• · Anonymous (2020), President Hernández urges private company to work together to develop Honduras, National Banking and Insurance Commission
• · Lara, B (2018), more than four million people work in Honduras, the press
• · Hair, A, Mixed Economy, Economypedia
• · Stiglitz, M, the public sector in a mixed economy,
• · Anonymous, the World Bank in Honduras, World Bank
• · Anonymous, Honduran Association of Maquiladores
• · Anonymous, free company, eco-financial
• · Drafting (2018), Honduras and the private company, the country.HN
• · EFE (2019), Reducing Submployment is one of Honduras’s challenges, says Labor Minister Efe, Tegucigalpa
• · Rodríguez, L (2019) Employment in the private sector of Honduras. The Herald
• · Law of the Social Sector of the Economy, Decree no. 193-85
• · Regulation of the Law of the Social Sector of the Economy, Executive Agreement does not. 254-97