Growth in Honduras is due to remittances and strong export performance. Nevertheless, over 59% remain below the poverty line and 36.2% in extreme poverty. Bank and government work together to reduce vulnerabilities and create opportunities for all.
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Honduras has accomplished important
political, economic, and social achievements in the recent
past. The country underwent a successful transition from an
authorita... Show More +rian military regime to a pluralistic democracy.
The list of economic achievements of the last four years
includes: macroeconomic stability, improvements in the
business climate and the performance of the financial
sector, and putting in place a sound framework for public
sector financial management. Progress toward achieving the
Millennium Development Goals (MDGs) has also been
significant. Despite these achievements, state institutions
are still fragile and the governance framework is weak.
Furthermore, notwithstanding the country's economic and
social improvement, almost two-thirds of the population
still lives below the poverty line and key structural
constraints on growth have still to be addressed. The key
development challenges for Honduras are: (a) strengthening
governance and improving the effectiveness of the
government, and (b) accelerating its recent growth
performance and translating growth into poverty reduction.
Among the recommendations the report makes are: The
development of additional regulations, strengthen links
between the environmental impact assessment (EIA) and other
management instruments, particularly Strategic Environmental
Assessments (SEAs) and zoning. Work with the Honduran
government to strengthen the follow-up and compliance
process as well as strengthening public participation in the
EIA process. Show Less -