MEDIA REACTION ON MCC, JUNE 15, 2005

UNCLAS TEGUCIGALPA 001292 SIPDIS DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES DEPT. FOR PM AND EB/TRA DEPT. FOR WHA/EPSC, WHA/PPC AND WHA/CEN E.O. 12958: N/A TAGS: OIIP KPAO PGOV MASS EAID HO SUBJECT: MEDIA REACTION ON MCC, JUNE 15, 2005 ¶1. The San Pedro Sula-based liberal daily "La Prensa" published an editorial entitled "Compensation?" "New reports have been flooding in and reactions towards them have multiplied, bringing about an optimistic ambience that could deviate attention on fundamental problems and wrap us up in an illusion that everything will be solved like magic." "The MCC signing of the $215 million donation on Monday in Washington and announcement of G-8 debt forgiveness to 18 countries including Honduras has stirred up politicians and officials with promises to the weakest and most unprotected sectors. The debt forgiveness was not only fair but also necessary in order to face the heavy-weight social debt that the State, governments and political parties have with most of the Honduran population which have been promised on several occasions to be compensated for their sacrifices in the heavy and painful economic measures." "It's urgent to go to the root of the progressive and growing poverty for which we desperately need the resources from debt forgiveness. As much debt forgiveness as there should be, they won't be sufficient if there's no fight against corruption, populism, demagoguery, bureaucratic slowness and manipulating centralism." "This bitter lesson must serve as an experience not to falter and mire ourselves again. The opportunity to destine debt resources to fight against poverty must redirect governors in a new direction to assume responsibility towards poor sectors and push them to take the initiative to be the major figures of development and prosperity through work and not to wait for unemployment benefits." Pierce