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This Development Policy Review (DPR) discusses Honduras's development agenda with a special focus on accelerating economic growth. This focus emerges from the Honduras Poverty Reduction Strategy Paper (PRSP), which identified growth as the main determinant o f the evolution of poverty, and guides the review of policy developments in various economic, social and infrastructure sectors. To the extent that the measures and reforms recommended in this report are able to generate a more attractive investment climate in Honduras, they will clearly serve to promote a faster accumulation o f physical capital, which is one component of economic growth. The main thrust of most of these reforms, however, is to improve the quality of factor services and the efficiency of factor allocation, which, in a growth accounting framework, are reflected in faster productivity growth. Recommended are measures to expand the coverage and quality o f education, measures to promote financial market development, measures to remove price distortions, attract greater private investment and improve the regulatory framework, as well as measures contemplated on the governance front, especially in the area o f improving public sector financial management and the civil service.
Honduras’s First Review Under the Poverty Reduction and Growth Facility and Request for Waiver of Performance Criteria are discussed. The authorities are taking measures to contain inflation. The inflation target has been raised to accommodate the first-round impact of the oil price increase, and measures to limit foreign borrowing and credit growth are being taken to restrain domestic liquidity in the face of high foreign exchange inflows. A cautious monetary policy is particularly important given the role of expected inflation in wage settlements.
Focusing on the term empowerment this book examines the various meanings given to the concept of empowerment and the many ways power can be expressed - in personal relationships and in wider social interactions.
Grabbing Power explores the history of agribusiness and land conflicts in Northern Honduras focusing on the Aguán Valley, where peasant movements battle large palm oil producers for the right to land. In the wake of a military coup that overthrew Honduran president Manuel Zelaya in June 2009, rural communities in the Aguán have been brutally repressed, with over 60 people killed in just over two years. United States military aid--spent in the name of the War on Drugs--fuels the Honduran government's ability to repress its people. A strong and inspiring movement for land, food and democracy has grown over the last two years, and it shows no sign of backing down.
This paper examines Honduras’s 2005 Article IV Consultation and Second Review Under the Poverty Reduction and Growth Facility. In the period 1960–2000, output growth in Honduras ranked among the lowest in the region. During the 1990s, when growth recovered in the rest of Central America, in Honduras it only kept pace with population growth. The authorities embarked on an economic reform program that focuses on ensuring macroeconomic stability and strengthening growth prospects through the development of human capital and basic infrastructure.