MARCH 2006 • EMBASSY OF SWEDEN, GUATEMALA

Sida Country Report 2005

Honduras

Table of Contents

1. Summary ............................................................................................3 2. Political, Economic and Poverty Development ...............................4 3. Swedish Development Cooperation – Overall Assessment of the Country Programme ........................13 4. Specific Country Programme Overview of the Swedish Development Cooperation .........................................15 4.1 Good Governance and Democracy ..........................................15 4.2 General Budget Support............................................................17 4.3 Education ..................................................................................18 4.4 Health ........................................................................................18 4.5 Water Supply and Sanitation ....................................................19 4.6 Other Social Infrastructure and Services .................................19 4.7 Environment/Multisector/Cross-cutting ..................................20 4.8 Research Co-operation .............................................................20 4.9 Swedish NGO:s .........................................................................20 4.10 Sida’s International Training Programs....................................20 5. Office and Administrative Issues .....................................................21 Annexes....................................................................................................22 1. Fact Sheet with Selected Macro-economic and Social Indicators. ...............................................................22 2. Current Planning Overview .....................................................23

Published by Sida 2006 Department for Latin America Author: Embassy of Sweden, Guatemala Printed by Edita Communication AB, 2006 Art. no.: SIDA28282en This publication can be downloaded/ordered from www.sida.se/publications

1. Summary

Honduras celebrated general elections for President, Congress and Municipalities in November 2005. The presidential candidate of the liberal party, Manuel Zelaya won the election but the party did not gain a majority in Congress. The country faced political instability prior to the elections, protests against the rising oil prices, among other things, caused political and social unrest. The economic situation remained relatively stable. 2005 ended with positive growth rates and other economic indicators mainly on target. Honduras finally reached the completion point for debt relief under the “Heavily Indebted Poor Countries” (HIPC) initiative in April 2005. The national Poverty Reduction Strategy elaborated in 2001 remains valid subject to revisions. The target for overall poverty reduction in the country is 42 percent by 2015. Present estimates show that despite positive economic growth rates and increases in poverty related spending, overall income poverty has not decreased significantly. This is partly due to an extremely unequal distribution of income and a weak link between economic growth and poverty reduction. Social indicators, especially when it comes to access to social services, are however improving. There has been notable progress towards achieving some, if not all, of the Millennium Development Goals. Quality of services and unequal access remain important challenges. Overall disbursements through Sida amounted to SEK 141.6 million, approximately 94% of the country allocation received. The support was mainly focused on Democratic governance, Social Development and Local Development. The sub-sector Education amounted to 28 percent and the sub-sector Health to 7 percent of the total. A major deviation from the country plan was that General Budget Support was not disbursed, due to lack of a comprehensive framework for Budget Support among donors.

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2. Political, Economic and Poverty Development

Political Development

The year of 2005 was much coloured by the primary elections in February and the general elections in November for President, Congress and Municipalities. The Liberal Party won the presidential elections with their candidate Manuel Zelaya Rosales, but did not gain majority in Congress. Thereby, there was a shift of government power from the National Party to the Liberal Party. The electoral results were produced at a slow pace creating unease in society and were contested when presented on December 5, given that they did not reflect the predictions made close to the election date. The participation rate in the general elections was 60 percent, which is considerably less than in the elections 2001 when participation rate was appproximately 70 percent. There are several possible explanations to the decreasing rate of participation, such as the complex electoral procedures, diminished faith in the political parties and the large number of migrants unable to vote abroad. Moreover, the natural disasters that occurred just prior to the general elections may have had an impact due to damaged infrastructure in the northern parts of the country, which made it more diffcult for the citizens to reach the polling-stations. The Electoral Reforms agreed upon in 2004 had a direct impact on the elections. One of the reforms was a shortened campaign period, which was a positive change. However, the shorter period may have turned up the slander level in the campaign. Instead of well prepared electoral manifests, negative messages regarding opponents and short populist messages were favoured. Another reform was the direct vote for specific candidates to Congress across party lines, which may have lead to the renewal of the Congress that was achieved. 80 out of 128 parliamentarians are new to Congress and the number of women in Congress increased from 7 to 31. Although the government succeeded in maintaining macroeconomic stability during an election year, it had problems to govern and maintain political stability. One of the main issues in 2005 were the effects of the very high international oil prices that meant an increase of 25 percent on domestic gasoline prices and 9 percent on domestic price on diesel1 in September. Latent tensions in an already economically strained society were triggered by this external shock. Taxi drivers went on strike and 1

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Third review of the Poverty Reduction and Growth Facility (PRGF), December 2005, IMF.

blocked the streets of Tegucigalpa and other major cities, leading to a political crisis, in which Congress finally agreed to temporarily freeze fuel prices, install price controls over basic foodstuffs and raise subsidies to the smallest electricity consumers, charging the cost to the state budget. The crisis affected the electoral campaign in such a way that the planned broad pre-electoral national agreement for political and economic stability in the transition from the old to the new government was not signed. The long disputed law establishing a National Anti-Corruption Council was finally agreed upon at the beginning of the year and the Council as such was established in August 2005. However, the primary elections were surrounded by corruption scandals produced by opposing candidates, often from the same party accusing each other of using public funds in the electoral campaign. The Electoral Tribunal (Tribunal Supremo Electoral), did not have the institutional strength to follow-up on these accusations. No or very slow progress was made in the legal processes related to the corruption accusations regarding smuggling of gasoline, involving Customs, and illegal issuing of passports, involving the Migration authorities. Processes against public servants and institutions initiated by the National Comptrollers Office (Tribunal Superior de Cuentas), have not lead to conclusive legal action in 2005. The continued serious security and violence situation has becoem one of the principal national challenges. Although the government maintained it’s so called zero-tolerance policy, violence remained extremely high in 2005, especially in San Pedro Sula and the northern parts of the country. At national level the homicide rate was 36.7 homicides/100 000 inhabitants.2 Overcrowded prisons have contributed to internal violence and killings, with strong links to illegal youthgangs and drugtrafficing. There is a sense of loss of control over the situation in the prisons. Civil Society organizations are requesting swift investigation of these killings. The victims are to a large extent youths. There is a dire need for a coherent national citizen security policy that comprices, prevention, criminal law inforcement and rehabilitation which at the same time reinforces the State responsibility for the protection of Human Rights. Macro-economic Development

The tendency o of a favourable macroeconomic development was sustained in 2005. The annual real GDP growth rate amounted to 4.2 percent, slightly below that of 20043 due to lower agricultural output, lower private investment and higher oil prices. However, most sectors of the economy grew, whereof the Construction sector most strongly. Strengthened domestic demand also contributed to growth. Public sector investments grew more than 10 percent, while the private sector investments diminished.4 The trade balance deteriorated further in 2005, as the increase of imports was twice as large as the increase of exports of goods and services.5 Surprisingly, the current account deficit was almost eliminated to 0.5 percent of GDP6, thanks to increased capital inflows (remittances increased with an outstanding estimated growth rate of 54.1 percent in 2005, while foreign direct investments decreased).7 Despite the high international oil price, inflation dampened compared to 2004 and ended at 7.7 percent, though above the target of 6.9 percent in the IMF 2 3 4 5 6 7

Violence Observatory Honduras, 2005. Preliminary figures from Central Bank of Honduras. Central Bank of Honduras. Central Bank of Honduras. Preliminary figures from Central Bank of Honduras. Central Bank of Honduras.

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program.8 The main contributors to inflation in 2005 were higher prices on food and non-alcoholic drinks, housing, water, fuel and electricity, as well as transports. One of the major events was reaching the completion point for debt relief under the “Heavily Indebted Poor Countries” (HIPC) initiative,9 on April 5, 2005. In May 2005, a new round of negotiations took place in the Paris Club10 leading to an agreement of bilateral debt relief from the USA, Germany, Canada, Spain, Japan and Denmark. Still pending is bilateral debt relief from France, Switzerland, Italy and Netherlands. The G811 initiative of multilateral debt relief in June (from the IMF and the World Bank) together with the bilateral debt relief will result in a total reduction of 60 percent of the external public debt as of June 2005 or 2875 MUSD when implemented. Thanks to the debt relief the public external debt-to-GDP ratio diminished to 53.1 percent of GDP in December 200512 from 69 per cent of GDP in the end of 2004 and according to IMF estimates the annual debt service will decrease by about 0.5 percent of GDP during the coming two years (see also under Poverty, PRS and MDGs). Negotiations on debt relief with the Inter American Development Bank (IDB) were also initiated in 2005. New public debt contracted in 2005 amounted to 371.9 MUSD. The central government budget deficit amounted to 3.2 percent of GDP in 2005, slightly above the target of 3.0 percent in the IMF program. The internal political crisis due to higher international oil prices (see Political development) led to higher than programmed spending which was counterbalanced by, among other things, delayed spending on investments in the national phone company, Hondutel, and the national electricity company, ENEE, and higher than expected tax revenues. The main areas of spending of the national budget in 2005 were education, public debt service, public health service, economic infrastructure and subsidies, as well as public administration.13 Still the largest part of the state budget goes to salaries (38 percent), followed by transfers to the public and private sector (22 percent), public debt service (17 percent) and public works and equipment (12 percent).14 Implementation of fiscal and economic reforms under the IMF program, such as strengthening of monetary operations at the central bank, reform of banks’ liquidity requirements in foreign currency and increased number of audits of large taxpayers by tax administration have been fulfi lled as programmed. The US is still the main trading partner, followed by Central America and the European Union.15 The Central American Free Trade Area (CAFTA) was ratified by Congress and will enter into force in 2006. 8 9

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11 12 13

14 15

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Central Bank of Honduras. Following the approval of the IMF Board of the Poverty Reduction and Growth Facility in the beginning of 2004, the Paris Club concluded a new agreement with Honduras in April 2004 that in addition to rescheduling arrears and current maturities of pre-cut-off-date debt on Cologne terms, the agreement also covered post-cut-off-date arrears and debt service. The agreement consolidated roughly 360 MUSD and led to the immediate cancellation by Paris Club creditors of about 147 MUSD. Debt service due to Paris Club creditors was thereby expected to be reduced between January 1, 2004 and June 30, 2005 from 405 MUSD to approximately 49 MUSD. Paris Club creditors also expressed their readiness to reduce Honduras’ stock of debts when Honduras reached the completion point of the HIPC initiative. The Paris Club is an informal group of official creditor countries, which co-ordinated sustainable solutions to payment difficulties by debtor nations. Group of 8 includes USA, Canada, UK, Germany, France, Italy, Japan and Russia. Central Bank of Honduras The priorities of the state budget in 2005 were Education and Culture (31 percent), public debt service (17 percent), public health service (13 percent), economic services (13 percent) and governmental administration (12 percent), defence and security (6 percent), prevention and social assistance (2 percent), housing and urbanism (0.4 percent) and Science and technology (0.3 percent), Ministry of Finance of Honduras. Ministry of Finance of Honduras. Out of total Honduran exports, 36.8 percent went to the US, 24.5 percent to Central America and 23.8 percent to the European Union, and out of total Honduran imports, 37.5 percent came from the US, 22.1 percent from Central America and 34.2 percent from European Union (Central Bank of Honduras).

The new EU Generalised System of Preferences (GSP+) entered into force by on January 1, 2006 and Honduras fulfi ls the GSP+ conditions.16 Poverty, the Poverty Reduction Strategy and Millennium Development Goals

Honduras has a population of 7 070 500 persons of which 51.7 percent live in rural areas.17 The major urban areas are located in Tegucigalpa and San Pedro Sula, where one fi fth of the population lives.18 Honduras is still the third poorest country in Latin America and is ranked as a lower middle-income country with a per capita income of USD 1218.19 In 2005, 65.8 percent of the population in Honduras live below the poverty line and 47.1 percent live in extreme poverty, which is a small increase since 2004.20 Within the country, poverty is more widespread in rural areas than in urban areas. Honduras has a Poverty Reduction Strategy (PRS) since October 2001, revised latest in connection to the Consultative Group meeting in June, 2004.21 The target for overall poverty reduction in the country is 42 percent by 2015. Each year the government presents a progress report on the implementation of the PRS. No report was presented by the end of the year 2005, due to the general elections. Preliminary figures from the Technical Assistance Unit at the Ministry of the Presidency (UNAT) estimate that poverty and extreme poverty rates increased to the same level as of 2003 (see previous paragraph). However, spending on the PRS increased to 9.1 percent of GDP in 2005. The coverage rate for pre-basic education is increasing by 12–14 percent annually, now reaching almost half of the children for that age, but yet far from the universalisation set as the goal within the Education For All (EFA) initiative.22 Net coverage rates for primary (1st to 6th grade) and secondary (7th to 9th grade) education show small increases, but the main problem is that drop out rates and repetition rates are still far from target, which are indicators of quality and efficiency of the education system. The PRS target for Electric energy coverage showed very little increase in 2005. The most significant increases were access to freshwater by 2.5 percentage points and access to sanitation by 1.5 percentage point. There are no updated figures in 2005 of the other global targets of the PRS (infant mortality, child mortality under five years, child malnutrition and maternal mortality, gender related targets, fi xed telephone lines and mobile telephones). According to the assessment made by the Institute of Social Studies in The Hague, the following Millennium Development Goals are in progress and probably on-track in Honduras; achieving universal primary education, promoting gender equity and empowerment of women, improving maternal health, combating malaria and other diseases, and en16

17

18

19 20 21

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According to these regulations the Andean and Central American countries will enjoy zero tariffs on 7,200 products, on condition that they comply with three conditions: (i) that the country has limited production and export diversification, in the sense that its five major products exported to the EU must contribute at least 75 per cent of the country’s total exports to the EU, (ii) that the exports to the EU represent less than 1 per cent of the total imports of the EU under the GSP regime, and (iii) that the country has ratified and put into operation a total of 27 international conventions, including conventions on human rights, labour, environment, good governance, etc. La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey) La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey) Third review of the PRGF, December 2005, IMF. Technical Assistance Unit at the Ministry of the Presidency, January 2006. The PRS has six overall goals: (i) accelerating equitable and sustainable growth to levels consistent with the income poverty reduction targets; (ii) reducing rural poverty; (iii) reducing urban poverty; (iv) enhancing investment in human capital; (v) strengthening social protection for specific vulnerable groups; and (vi) ensuring the sustainability of the strategy through governance and institutional reforms. There are also three crosscutting themes in the strategy, namely gender equity, environmental sustainability and decentralisation. Ministry of Education of Honduras.

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suring environmental sustainability. Slow progress and probably off track are eradication of extreme poverty and hunger, reduction of child mortality, and the combat of HIV/AIDS.23 World Bank estimates are somewhat more positive, concluding that if Honduras spends as much as it does now on poverty reduction and keeps the same pace of implementation of the PRS, the country will achieve 90 percent of the Millennium Development Goals by 2015.24 The debt relief for Honduras (see under Macro-economic development) created great expectations in 2005. To a majority of Honduran citizens it was most likely understood as fresh funds entering the country. Both media and authorities had dificulties explaining the implications of the debt relief; that instead of paying public debt service, funds will be available for poverty reduction. A new round of national consultations carried out by the Consultative Council of the PRS (CCERP)25 increased expectations even further. To a large extent these consultations produced a repetition of already presented proposals from the municipalities and civil society. However, the tendency favouring productive projects was stregthened. Civil Society did an important job reminding the authorities of the Law of the Fund of the PRS and the institutions that guarantee that both HIPC-funds and other debt relief are to be used in implementing the PRS. The challenge ahead to diminish poverty is complex. Several factors are to be taken into account in this context. In Honduras around 40 percent of the population is under 15 years of age. The population growth rate is 2.4 percent a year26 which together with the economic growth rate, gives a modest per capita growth of 1.2 percent a year.27 Even if economic growth has been sustained above four percent during two years in a row it is too short a term to have any positive impact in fighting social exclusion. Honduras was ranked 116 out of 177 countries in the United Nations Development Programme’s (UNDP’s) Human Development Index (HDI)28 in 2005. HDI ranking of some of the countries in the region Haiti

153 (worst in the region)

Guatemala

117

Hondura

116

Bolivia

113

Nicaragua

112

El Salvador

104

Belice

91

Panamá

56

México

53

Costa Rica

47

Barbados

30 (best in the region)

A major problem is that the formal labour market cannot absorb the increasing supply of labour. Open unemployment is estimated to be 4.8 23

24 25 26 27 28

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Budgeting for Poverty Reduction, Regional Report 2005, Evaluation of Poverty Reduction Strategies in Latin America 2005, Institute of Social Studies. Oral statement by Ulrich Lächler, the World Bank, at a meeting in Tegucigalpa on February 2, 2005. CCERP consists of representatives from government, civil society and international co-operation agencies. The World Bank “Honduras Development Policy Review” (Nov. 2004) Technical Assistance Unit at the Ministry of the Presidency, January 2006. The Human Development Index is the UNDP’s measurement of Human Development in a country, weighing the following factors together: Life expectancy at birth, adult literacy rate above 15 years, combined gross enrolment ration for primary, secondary and tertiary schools and GDP per capita.

percent in May 2005, slightly higher in rural areas than in urban areas.29 An issue of concern is the invisible underemployment, which amounts to more than one fourth of the population employed (in other words people working more than 36 hours a week having a lower salary than the minimum wage).30 This is even more common in rural areas. Official statistics do not differentiate between formal and informal employment. However, according to the private sector association COHEP (El Consejo Hondureno de la Empresa Privada) the informal sector is considered to be the major part of the labour market (86 percent). According to official statistics, women participate in the labour market to a lesser degree than men. In rural areas,one out of four women, is economically active in comparison to almost three out of four men.31 Another problem is the low level of education in general which impedes the necessary competitivety that would allow the country to produce more value added in manufacturing and services. On average the population has 4.8 years of schooling, and it takes on average 9.5 years for children to complete primary education (6th grade), due to the problem of high repetition of classes.32 Moreover, few continue schooling after 6th grade. One of the reasons is that some children already work. Child labour between the age of five and eighteen years amounts to 14.5 percent.33 Furthermore, the illiteracy rate amounts to 17.7 percent at the national level.34 One of the reasons why women are less active on the labour market are frequent and early pregnancies. Of the sexually active women under 18 years of age, almost three fourths had been pregnant out of which 59.7 percent had had their first pregnancy before the age of 17.35 Out of the ones that were studying at the time of their pregnancy, 61.3 percent abandoned their studies.36 Meanwhile, the number of single parent households has increased and simultaneously, also the number of households run by women.37 In recent years public programmes targeting sexual rights and reproductive health have resulted in increasing numbers of women using contraceptives contributing to a, although slow, decrease of fertility rates38, above all among women in urban areas in contrast to poor women in rural areas, still with high fertility rates. Two factors contributing to the difference is the higher level of education and better access to health services among women in urban areas.39 The persistence of poverty and inequality in Honduras’ society has an impact on the access to and the use of health services. Despite a slow decrease in maternal and infant mortality rates during the last decade, Honduras has still the second highest rates in Central America.40 Factors contributing to these high rates of infant mortality are on one hand the low level of literacy among mothers, on the other hand the poverty level and the lack of access to health services.41 This shows that improvements in health cannot be produced by the health sector alone. Complementary 29 30

31

32 33

34

35 36 37 38 39 40 41

Central Bank of Honduras La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey) La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey) Ministry of Education of Honduras. La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey)I La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Living Standards Measurement Survey) Country Gender Assessment, November 2005, National Women’s Institute of Honduras. Country Gender Assessment, November 2005, National Women’s Institute of Honduras. Country Gender Assessment, November 2005, National Women’s Institute of Honduras. National Instiute of Statistics of Honduras. Plan Nacional de Salud 2021, Health Ministry of Honduras. Plan Nacional de Salud 2021, Health Ministry of Honduras. Plan Nacional de Salud 2021, Health Ministry of Honduras.

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actions are needed in Honduras in terms of education and institutional reforms. In this context, the PRS, which is closely linked to the MDG targets, provides a comprehensive approach looking across a range of policies in health, education, water and sanitation and gender relations. In addition, in 2005, the task of the Government of meeting the MDGs health targets resulted in the elaboration of a national health plan, Plan Nacional de Salud 2021, aiming at extending health interventions to the poorest. One important health intervention is greater attention to reproductive health, not only to limit fertility through family planning but also to control the spread of sexually transmitted infections such as HIV/AIDS. Honduras has the largest number of HIV/AIDS cases in Central America and the infection of women and adolescents is increasing rapidly. It is estimated that out of the 220 000 women who become pregnant every year, 1.8 percent are HIV-positive.42 According to estimates, between 35 000 and 110 000 adults and children are living with HIV/AIDS in Honduras.43 Since 1997, HIV/AIDS is the leading cause of death for women of childbearing age and the third cause of death for men after injuries and violence.44 Over 80 percent of the transmission is heterosexual.45 The prevalence is higher in urban areas, especially in the two largest cities of Tegucigalpa and San Pedro Sula. Even though the epidemic is already spreading among the general population, HIV is concentrated to vulnerable groups such as the garífunas (Afro-Caribbean descendants), sex workers, men who have sex with men and people in prison. 82 percent of registered AIDS cases are found among the economically active population between 20–49 years of age46 which implies great productivity losses for the country as well as aggravated socio-economic situation for the families affected. The number of HIV orphans in Honduras is estimated to be 27 000.47 The national AIDS law, the CONASIDA48 and the National AIDS plan 2003–2007 are part of a framework for action, but have yet not yielded the results needed to reverse the epidemic. With all these facts in mind, it is evident that there is a lack of wellbeing for the major part of the population. The great inequity of distribution of income in Honduras is illustrated by the weak link between economic growth and poverty reduction. For each percentage economic growth, poverty is only reduced by 0.27 percent.49 The inequity is also illustrated by the Gini concentration ratio,50 which is 0.55.51 According to World Bank estimates, Honduras will have to strengthen growth rates to a sustained 5–6 percent to reach the MDGs. The greatest impact will be reached through improvement of educational efficiency, diversification of rural employment opportunities, promotion of self-employment, greater access to productive assets and improved geographical targeting.52 Moreover, there is a need for changing the current tax system which sus42 43 44 45 46 47 48

49

50

51 52

UNAIDS fact sheet Honduras 2004 Report on the global AIDS epidemic, UNAIDS Country Profile for HIV/AIDS, WHO, 2005 Honduras Plan Nacional de Salud 2021, p. 63 Honduras Plan Nacional de Salud 2021, p. 63 Draft Honduras UNGAS 2005 Report, UNAIDS In 1999 the National Commission on HIV/AIDS (CONASIDA) was created. It is a multi sector body including civil society with 15 members. La Encuesta Nacional sobre Condiciones de Vida (ENCOVI) 2004, National Institute of Statistics of Honduras. (Household survey of living conditions)I The Gini concentration ratio is measuring the inequality of income distribution in a country. The Gini concentration ratio ranges from 0 (perfect equality) to 1 (perfect inequality) i.e. the higher the ratio, the higher the inequality of distribution of income in the country. It is derived from the Lorenz curve that measures the percentage of total income accounted for by any cumulative percentage of recipients. Third review of Poverty Reduction and Growth Facility, December 2005, IMF. World Bank: Honduras Policy Note, January 2006

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tains inequity as it is regressive. The major part of the tax collection is from indirect taxes, which also affects poor people negatively. Another problem is that poor people do not have access to credit, diminishing opportunities to change their precarious situation. As a result of unemployment and lack of opportunities, there is a persistent flow of migrants towards above all the USA, but also to other countries such as Canada, Spain, Italy, Mexico and El Salvador. The Honduran Ministry of Foreign Affairs estimates that approximately 220 persons are leaving the country each day or approximatelly 80 000 migrants in 2005 (probably underestimated numbers.)The Honduran Ministry of Foreign Affairs also estimates that 934 000 Hondurans live outside the country, whereof around 800 000 in the USA. However, according to the Mexican government and the US government, in 2005 around 95 000 illegal immigrants were sent back to Honduras. The high levels of migration has a macro-economic impact on the country due to remittances of approximatelly 1763 MUSD in 2005.53 No analysis is available regarding to what extent there is an impact from remittances on poverty reduction. Less investigated is also the social impact of migration, both its positive and negative aspects, for example the consequences of the family disintegration. Female internal migration is mostly related to the “maquila” industries, where many women seek work opportunities. Sustainable Development The concept of Sustainable development was present in the political speeches during the general elections campaign. It was also mentioned in almost every single document produced by the government. These are signs of a positive tendency of working towards sustainable development. During 2005, projects were initiated to provide strong support to protect national parks and wilderness areas, especially in the humid tropical parts of the country. Good efforts were made by civil society organizations to reduce the forestry depredation, and an environmental pact was signed with the participation of the two major political parties, academics, timber producers and almost all organizations related to the sector. This effort was a result of a very bad year of forest fires. It is noteworthy that the long debated Forestry Law did not pass Congress in 2005. The Forestry issue became part of the heated electoral campaign with the two main opponents launching corruption accusations at each other, regarding their participation in logging. An additional deplorable precedent, according to the national media, was the approval by the Ministry of Natural Resources and Environment (SERNA), of several permits to allow open ceiling mining in different areas of the country during the final months of the government. Conclusively, Honduras faces the most common dilemma of developing countries today; how to balance the short term need of high investments for greater supply of energy to achieve MDGs in different sectors, such as water and sanitation, housing, education and health, meanwhile ensuring a long term sustainable development. Changes in development co-operation and partnerships

The Swedish pro-tempore chairmainship of the donor co-ordination G16 ended in mid-March and Canada took on this task. However, as a troika mechanism was established to share the work burden Sweden together 53

Central Bank of Honduras.

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with Canada and Germany took a shared responsibility for G16 dialogue and activities. The electoral year also influenced the joint work of the donor community prompting dialogue with the presidential candidates on development issues, especially the continuity of the PRS. The Maduro government implemented an ambitious program on PRS-continuity as part of the political transition. On May 31st a follow –up meeting to the Consultative Group meeting held in June 2004, was carried out. The main issues discussed were: the consolidation of the Economic Porgram an the PRS, the modernization of the Justice sector, legislative agenda and Transparency as well as the issues related to development co-operation effectiveness as outlined in the Paris-declaration. The discussions on aid effectiveness were summed up in the Governments’ National plan for Harmonization presented in December. From the donors’ side the follow up of the Paris-declaration has lead to the establishment of a Budget Support Group in which, Sweden, Kf W, the World Bank, the Inter-American Development Bank, the European Comission and the IMF. The idea is to create a common framework for future budget support together with the Honduran Government. In the area of Education the first effort to diminish the number of project management units was formalized in an agreement with the Government regarding the use of the Ministy’s own management structures for the EFA-program. Within the G16 a joint matrix of strategy processes, baseline studies and sector involvement has been produced, in order to facilitate harmonized action. On June 13, the United States of America, through the Millennium Challenge Corporation, signed a five-year, 215 MUSD compact with Honduras and established an office in Honduras. The funds are mainly geared towards economic infrastructure such as roads and irrigation. The European Commission initiated its consultation process for Development Co-operation strategy for Honduras 2007–2013 and strengthened its representation and presence by opening a delegation in Tegucigalpa lead by a Chargé d’Affaires. Also the German Development Bank Kf Wdecided to open an office in Honduras. As the previously mentioned donors formalized their presence in Honduras the DFID closed their offices in Tegucigalpa ending all bilateral development co-operation. In 2003, Honduras began receiving USD 42 million from the Global Fund for AIDS, Tuberculosis and Malaria.54 In 2005, Honduras proposal for the second round of funding was partly turned down and a turbulent dialogue started between Honduras and the Secretariat of the Global Fund, where the co-operation community actively supported the Honduran proposal. Two components of the proposal, prevention and human rights protection, were re-written twice and later unofficially approved. The final outcome is still unclear, which affects the country’s planning and response in the areas mentioned.

54

The Global Fund against HIV/AIDS, tuberculosis and malaria was established by some countries, NGOs and UN organs at the turn of the year 2001/02. The Fund is independent but co-operates with the UN system.

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3. Swedish Development Cooperation – Overall Assessment of the Country Programme

The Regional Strategy for Central America and the Caribbean 2001– 2005 was revised and extended to be valid through June 30, 2007. The strategic choices made in the document regarding poverty reduction and democratic development are still relevant. The Honduran PRS is the guiding framework for the Honduran Government and the international development co-operation. A prioritization within the PRS was made by the Honduran government in 2004.55 It was assessed that any major changes of the Swedish development co-operation will be discussed during the process of producing a new Strategy for Development Cooperation 2007–2011. The main method of dialogue during this election year was via G16. A dialogue paper emphasizing 10 key messages has been the common frame-work for dialogue. The point of departure has been the PRS and its continuity as a vehicle for maintaining poverty reduction as primary objective for the ne Administration. Linked to this the resources liberated through the debt relief have been a center of attention as has the need for transparency and accountability. The country allocation of Development Co-operation with Honduras in 2005 amounted to 150 MSEK and Research Assistance to 1.581 MSEK or a total of 151.81 MSEK. Out of this amount around 141.6 MSEK were disbursed. The support was focused on Social development, Demo-

Outcome by Sector 2005 (141,6MSEK) Research/HE*, 1% Local Development, 19%

Admin/Project/Consult Fund, 6%

Economic Reforms, 0%

Social Development, 35%

55

Good Governance & Democracy, 39%

Six sectors for the development of sector-wide strategic planning were prioritized; health, education, agriculture and forestry, water and sanitation, justice and security, and economic infrastructure.

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cratic governance and Local Development.56 The sub-sector Education amounted to 28 percent and the sub-sector Health to 7 percent of the total. A major deviation from the country plan was that General Budget Support was not disbursed, due to lack of a comprehensive framework for Budget Support among donors. (For other deviations see below under 4. Specific Country Programme Overview). The forecast for the coming two years is 225 MSEK inside the country allocation and 13 MSEK for Research Assistance in 2006, and 250 MSEK inside the country allocation and 14 MSEK for Research Assistance in 2007. The new Government assuming power in January 2006 announced already during the electoral campaign that a revision of the PRS will be done. It is hard to foresee what this will mean, however it is important that this revision is done in dialogue with the civil society and development co-operation partners. The Stratetgy process that Sweden will initiate early in 2006 is an excelent opportunity for Sweden to align with national priorities and share our experineces with the new authorities.

56

Sector names correspond to Sida’s Country Plan for Honduras for 2005.

14

4. Specific Country Programme Overview of the Swedish Development Cooperation 4.1 Good Governance and Democracy OAS The carrying out of primary and general elections 2005, was a test both of the electoral reforms and the technical capacity of the new institutions, he Supreme Electoral Court-TSE and the National Civil Register-RNP supported by Sida in collaboration with the Organization of American States-OAS. There were several technical problems, mostly related to deficit in planning capacity and human resources, however, mostly solved. The main problem is still the politisization of the institutions. Therefore, there is a need for continued reforms towards more professional and independent institutions. OAS played a key role giving technical assistance and was highly appreciated by the two national institutions. Collaboration with civil society organisations supporting the electoral process was important, but could have been far better coordinated. UNDP Programme on democratic governance 2004–2007 Within the Defence sector, the support focused on elaboration of the White Paper on National Defence, the political framework for continued reform, policy and legislation. It was finally elaborated within a participatory process involving authorities, civil society and the armed forces. The government was pressing the time-table to be able to publish the White Paper before leaving power, which lead to tensions between the UNDP and the government. The UNDP wa not given the possibility to revise the document before publishing. UNDP and Sweden decided to maintain a low profi le when the document was made public because of the delicacy of the issue, but also respecting the national process and ownership. Sweden needs to evaluate whether to end the support for Defence sector reform or find ways to support its sustainability. The dialogue between the five political parties within the political commission, and its sub-commissions, resulted in a technical document as a basis for political consensus on pre-electoral agreements. The objective was to support political and economic stability during transition to the new government for the period 2006–2009. However, the national agreement “Gran acuerdo para Honduras” that was to be signed on September 5, failed because of the national crisis related to increased oil prices. The regional initiative on reforming political parties initiated its second phase and a regional workshop was arranged in Copán in 15

Honduras in September. This initiative will continue during 2006–2007 and will serve as an input to national processes reforming political parties and systems. The Small arms control, security and justice project within the Justice and Security sector has continued as planned and reached expected results in a very satisfactory way. The project has maintained and developed involvement of stakeholders within society. The need to move on towards a comprehensive national citizen security plan has not been possible, regardless civil society initiatives and efforts, mostly due to the risks that these efforts could be used for political purposes during the electoral year. Gender Equity The Swedish institutional support to the National Women’s Institute, INAM, has continued as planned and a mid-term review was carried out in June. The institution has strengthened its role to promote gender equity in public institutions at central and municipal level. INAM has also gained credibility on a regional and international level. However concerns considering the transition to a new government were raised. A broad co-ordinated Country Gender Assessment, CGA, was carried out during the year under the leadership of INAM, involving the Ministry of Internal affairs and the Supreme Court. Civil Society Sida has entered into an agreement with CEDOH, Centro de Documentación de Honduras, for the period 2005–2007. CEDOH produces studies and is promoting a dialogue on issues, such as democratic governance, justice and security and migration. CEDOH also serves as a regular support to the DCS on political and economic analysis. A research study on existing dialogue fora between government and civil society was supported by Sida. The study was conducted by CIPRODEH, Centro de Investigación y Promoción de los Derechos Humanos, and focused on effectiveness of these dialogue fora and possibilities for civil society to influence on issues like the citizen security, the poverty reduction strategy agenda and anti-corruption. The support to Democratic media, initiated in November 2004, has been carried out as planned in collaboration with C-Libre, an independent network of journalists. The main issue that they have been working on during 2005 is the law proposal on access to public information and transparency. The proposal did not pass Congress, but is widely known and discussed in the public. This remains a main challenge for the next year with a new Congress. The access to alternative information through a digital newspaper has been a success, with thousands of readers daily. Statistics The Swedish support to the National Statistics Bureau (INE) in cooperation with the IDB covers the period 2003–2007. INE’s institutional capacity has been further strengthened during the year contributing to the implementation of the project. In the end of the year the new household survey of living conditions, ENCOVI (Encuesta Nacional de Condiciones de Vida), was presented. Fiscal management Swedish support to the national tax authority DEI (Dirección Ejecutiva de Ingresos) was initiated in November 2004, through the IDB program 16

“Strengthened Fiscal Management” (2004–2007). The objective with the DEI component is a more efficient tax administration, inorder to increase the tax collection. The implementation of the programme has been slow due to a re-organization of DEI during 2005, as well as to the up-coming elections. The inspection component within the program Efficiency and Transparency in Public Procurement, co-financed with among others IDB, was prolonged until December 2005. The focus in 2005 has been on the transferring of responsibilities to the National Procurement Office and to the National Audit Office (Tribunal Superior de Cuentas). Sida is, in cofinancing with the IDB, considering support to further strengthen the institutional capacity of Honduras’ internal control system and external audit functions. A major preparation during 2005 has been the Swedish contribution to the World Bank’s PRSTAC (Poverty Reduction Strategy Technical Assistance Credit) for the period 2005–2008. It is a complementary instrument to the World Bank Poverty Reduction Strategy Credit (PRSC). The Swedish contribution is earmarked to the strengthening of the National Audit Office (Tribunal Superior de Cuentas) and the implementation of a new Civil Service Legislation. The new law on the National Anti-Corruption Council was passed in Congress in the beginning of the year. During 2005 it was still not clear which working mechanisms or methodology the Council will apply. Sweden will consider support to anti-corruption initiatives, including the Council. Human Rights An evaluation of the Human Rights Ombudsman was carried out as planned. It concludes that the institution needs to focus on its mandate as a watch-dog regarding the Governments’ respect for human rights and its capacity to promote human rights in the country. Civil rights organisations and civil society in general emphasize the importance of the institution. Discussions regarding future Swedish support have been initiated. The discussions held in 2004 with the Attorney General’s Office on future Swedish support have not materialised in a agreement on development co-operation due to a crisis within the institution in 2005. COFADEH, Comité de Familiares de Detenidos Desaparecidos en Honduras, have received support to build a memorial place for disappeared people from 1979 to 1994. The construction was ready in May. Culture The support to the Honduran Mobile Theatre Stage ended in 2005. The mobile stage is for performances to reach also remote communities in the country. The Stage was originally donated to Honduras by the Swedish co-operation and it has been supported by Sida since 1998. With the final entrustment of the Stage in 2006, Sida will promote a broad and continuous use of the Stage in Honduras. 4.2 General Budget Support One major deviation from planned support in 2005 was the postponed General Budget Support, which was planned to be a co-financing of the second phase of the World Bank’s Poverty Reduction Strategy Credit, PRSC II. However, there was no agreement between the World Bank and the Government of Honduras on the PRSC II and thereby Sweden decided not to disburse. 17

4.3 Education The initially agreed Swedish financing through a World Bank Trust Fund permitted the procurement of Spanish and Math books, school backpacks and teachers materials. Furthermore, the Education For All (EFA) Pool Fund mechanism, funded only by Sweden in 2005, allowed execution of approved activities such as nationwide distribution of above mentioned books and materials and teachers’ training. Canada, Germany (Kf W), and Spain signed their bilateral agreements and Memorandum of Understanding addenda with the government, and will initiate disbursements to the Pool Fund early next year, pending the completion by the Ministry of Education of a prioritized Annual Plan. In spite of a delayed planning process in 2005, donor disbursement uncertainties, the novelty of the Sector Wide Approach concept, the established co-operation structures, and the implementation of in-process national public financial management system, the core group of pool fund partners (including still tentatively the World Bank) have expressed their willingness to consolidate this one-of-its-kind mechanism in Honduras. Two Joint Revision Meetings were held (in April and December) to revise the status of the EFA Plan. Although requirements for simplified monitoring formats and more comprehensive reports are still to be followed up, the main accomplishment in the Joint Revision was initiation of an adequate harmonization among the different donors (MERECEgroup). Moreover, a methodology to focus on prioritized targets was developed and will be observed by all donors during subsequent revisions. Key agreement from the previous revision was accomplished in 2005, namely the elimination of the EFA Unit and the mandate from the Ministry of Education to incorporate the functions within its units. Further actions agreed on in 2005 revision was the inclusion of the Institutional Strengthening Plan and the definition of a Transition Group to work on vital activities for the first semester of 2006. Prioritized dialogue issues and actions include the definition of EFA functions within line departments, the implementation of the Institutional Strengthening Plan, execution of prioritized actions during the transition period, follow up of SIAFI (Honduras Public Financial Management system) development to facilitate the sector’s ability to produce comprehensive and expedite reporting and monitoring using national systems and the continued efforts to increase donor co-ordination. 4.4 Health The Sida-supported programme Access to Health Services was externally evaluated in 2005. According to the evaluation, the programme shows positive results in providing a flexible and efficient support to the organisation of health services in its area of intervention. It was concluded that the programme contributes to an increased assess to health services and to reduce morbidity and mortality in relation to common diseases and health problems. Based on the evaluation’s recommendation, in 2005 Sida prolonged its support to the programme. During the extension period, the programme will focus on further promoting the decentralisation of the health services and to improve the integration of the programme’s positive results into the Ministries regular sector planning. The prolonged support to the Acceso programme will coincide with Sida’s continued promotion of a five-year strategic plan and a Sector Wide Approach (SWAp) in the sector. Sweden has an ongoing support to the Honduras National AIDS Forum, a broad umbrella organization focusing on human rights advo18

cacy, monitoring of the implementation of the national HIV/AIDS plan, and support to grassroot initiatives. The Forum with its 190 members has a secretariat in Tegucigalpa and is represented at the local level by 11 chapters around the country. Sida provides the Forum with a small grant fund for strategic initiatives at the grassroot level by and for vulnerable groups. 4.5 Water Supply and Sanitation The program Water System Choluteca II is implemented as planned. The technical assistance related to defining a client oriented mission and to improve the administrative efficiency of the “Aguas de Choluteca” company was finished with very good results. There is optimism that all improvements will be consolidated after the new government is in place. As expected, some minor delays occurred due to the general elections; however, all administrative difficulties regarding financial reports were overcome at the end of the year. Plans of construction of the system advanced and construction will start nex year as planned. The in-depth preparation phase of the Local Development Water and Sanitation program was initiated in 2005. The Central American Water and Sanitation Network (RRASCA) together with the National Water and Sanitation Network of Honduras (RAS-HON) are working in the preparation phase. Experienced NGO’s are directly involved in the process as well. There is a potential for developing a Sector Wide Approach (SWAp) in the water sector and a willingness to do so among co-operation agencies if the incoming government is interested. So far, the implementation of the new water and sanitation law, implying a transformation of the water sector, has been slow. 4.6 Other Social Infrastructure and Services The Housing sector is supported through Fundevi in a joint effort with Germany. The Housing II project is in full implementation phase. The number of micro credits for progressive improvement of houses has increased noticeably and the first disbursement for social infrastructure credits has been made. At the request of the Executive Director of Fundevi the technical assistance contracts have been modified to provide a continuous rather than sporadic support as initially planned. The elections in November 2005 may imply that the representatives of the government in the Fundevi Board will be changed, which may have an unpredictable impact on Fundevi’s institutional configuration due to a lack of knowledge of the new government of Fundevis’ financial and management characteristics, independent from the government. Major delays occurred on finishing the access roads to the Stockholm Bridge. SOPTRAVI (Ministry of Public Works) had to take over the work to finish the accesses from the Municipality of Tegucigalpa. However, the part that was financed by Sweden, the actual bridge, was completed in 2005. The Land Regularization and Titling project has been extended for one more year without additional funding. During the first year of implementation more than three thousand plots were measured and geo-referenced, but the new national institute of property was unable to sustain the pace and only four hundred plots were issued with a land title. The project goal was to obtain 1800 land titles during the first year. The main objective extending the project for one more year is to achieve titling of all plots and guarantee a good transition with the new municipal authorities. 19

4.7 Environment/Multisector/Cross-cutting Environmental/Waste management Co-operation Stockholm-Tegucigalpa project was finished in 2005. As explained in previous reports, both municipalities had limitations during the implementation. This was resolved by working though Swedish and Honduran consulting firms. An evaluation will be held during 2006 to identify the project impact at different institutional levels of Tegucigalpa’s and Stockholm municipalities, lessons learned, accomplishment of project objectives and social impact. 4.8 Research Co-operation The Agreement on Research Co-operation between Sida and the Universidad Nacional Autónoma de Honduras (UNAH), along with the Agreement between Sida and the Technical Secretariat of International Co-operation (SETCO), in support of research and university reform were signed in November for the first phase of the pilot period covering July 2005 through June 2007. Pending positive trends, a second pilot phase will cover July 2007 through December 2008. In 2005, the whole contribution went to cover the costs of Hondurans enrolled in PhD Programmes underway at Swedish Universities. Main activities from the signed agreement, namely the ICT Platform, KPMG Assistance and other important reform processes to foster a research environment and proper Higher Education sector leadership, will commence in 2006. 4.9 Swedish NGO:s Three Swedish NGO’s (DIAKONIA, ForumSyd and Swedish Cooperative Center) have implemented their programs according to schedule and are actively participating with their counterparts on the Local Development Water and Sanitation program planning. 4.10 Sida’s International Training Programs In 2005, 19 persons from Honduras, eight men and eleven women, were selected to participate in the courses presented below. Name of International Training Programme

Institution

Project Management

UNAT

No. of participants Men Women 1

Environmental Impact Assessment

Municipalidad de Puerto Cortés

Gestión de Servicios Públicos en Procesos de Cambio

Secretaría de Educación Dirección de Servicio Civil

Prevención de la Violencia en la Escuela y la Familia

Prog. Armas Pequeñas Policía Nacional Ministerio Público

Programa Regional sobre Derechos Humanos

FIAN CIPRODEH FOPRIDEH

Solid Waste Management

Ministerio RRNN

1

Journalism and Democracy

FIDE

1

Instituciones Democráticas y Democracia Participativa

Secretaría de Defensa CIEL INAM SOPTRAVI

1 1 1

Conservation and Management of Historical Buildings

Instituto de Antropología e Historia

1

Curso Especializado Derechos Humanos de las Mujeres

Corte Suprema de Justicia

Total 20

1 2 1 1

1 1 1 1 1

1

1 8

11

5. Office and Administrative Issues

The Development Co-operation Section had by the end of 2005 eighteen members of staff, whereof six ex-patriates, including one BBE (Bilateral assistant expert) as well as two National Programme Officers (NPO) and ten local employees dedicated to administration, programme assistance and services. In addition to the DCS staff, a BBE is placed at the National Women’s Institute, INAM. Two local recruitment processes took place during spring to employ an NPO for social sectors and to replace one of the drivers. New office premises have been identified and procurement of a construction company was made in December 2005. The process has been more extensive than planned. The DCS will move into new premises in March 2006. The change of offices has required considerable inputs and co-ordination from the DCS during 2005 being a link between Headquarters, SFV (Swedish National Property Board), local and Swedish Consultants. Out of the budget for running costs, 4.1 MSEK, 89 percent was used. Rest of the amount was not spent as planned, mainly due to delays in moving into a new office space. The investment purchases proceeded as planned except for 0.8 MSEK of the funds aimed for investments at the new office which will be needed in 2006. Outcome: 1.8 MSEK of budgeted 2.6 MSEK. In May, the IT-division installed the new IT-platform (XP) followed by training for the staff. For all staff, seminars on HIV/AIDS were held twice during the year and a two-day team-building workshop took place in November. A decision to formalise controller functions at the DCS was taken in March for better quality-assurance. Also worth mentioning to further strengthen quality-assurance of development co-operation, a framework agreement was signed with a local audit company in October.

21

Annexes 1

Fact Sheet with Selected Macro-economic and Social Indicators. 1998

1999

2000

2001

2002

2003

2004

2005

6.068

6.220

6.376

6.535

6.698

6.866

7.000

7.070

2.6

n.a.

2.8

2.6

2.5

2.6

2.6

n.a.

0.631

n.a.

0.651

n.a

0.638

0.667

n.a.

n.a.

113

n.a.

n.a.

n.a

116

115

116

n.a

23.3

21.3

21.3

n.a.

23.1

23.4

n.a.

n.a.

GDP (in billion USD) (1) (3)

5.3

5.4

5.9

6.4

6.6

6.95

GNI/capita (in USD) (1)

872

862

920

968

920

970

1020

n.a.

GDP growth (3)

2.9

-0.19

5.7

2.6

2.7

3.5

4.6

4.2

GDP growth/capita (1) (3) (4)

0.39

-4.29

3.12

0.1

-0.6

0.5

2.0

1.2

Gini coefficient

0.59

n.a.

0.564

n.a.

n.a.

n.a.

0.55

n.a.

Inflation (Consumer prices in percent end of period) (3)

13.7

10.9

10.1

8.8

8.1

6.8

9.2

7.7

n.a.

n.a.

10.6

10.8

n.a.

n.a.

n.a.

n.a.

52.5

130.1

102.4

102.9

64.0

n.a.

n.a.

n.a.

General Inhabitants Population growth in percent annually (3) Human Development Index (HDI) (2) HDI World Ranking out of 173 countries (2) Human Poverty Index (2)

Economy

ODA received as percentage of GDP (1) ODA received per capita (in USD) (1) Poverty Reduction Strategy Papers (PRSP)

I-PRSP

7.45 8.3 est.

full-

1st

2nd

PRSP

PRSP

PRSP

Social Development Percent of population living in poverty (4)

n.a.

n.a.

66.0

64.4

63.9

63.5

64.2

65.8

Percent of population living in extreme poverty (4)

n.a.

49

49.0

47.4

45.0

44.7

44.6

47.1

Average life expectancy (1) (2) (3)

n.a.

n.a.

70.0

70.7

68.8

67.8

n.a.

n.a.

Infant mortality per 1000 live birth (1) (2) (3)

n.a.

n.a.

36

34

32

32

n.a

n.a.

Maternal mortality per 100 000 live birth (1) (2) (3) (4)

108

n.a.

147

108

n.a.

n.a.

n.a.

n.a.

Literacy rate (1) (3)

73

n.a.

75

76

80.3

81

81.5

82.3

Share of population with safe water in percent (1) (3) (4)

77

81

n.a.

89.5

82.3

83.4

84.1

n.a.

2/3/F 3/3/PF 3/3/PF 3/3/PF 3/3/PF 3/3/PF

n.a.

n.a.

Democratic Development Freedom House Index (PR/CL/Status)* Corruption Perception Index (TI)

1.7

1.8

n.a.

2.7

2.7

2.3

2.3

n.a.

Transparency International (TI) Ranking

83

94

n.a.

71

71

106

114

n.a.

Genderrelated Development Index (2) (4)

0.6

0.64

0.62

0.656

0.633

0.652

n.a.

n.a.

Seats in parliament held by women in percent (2)

9.4

n.a.

n.a.

8.6

n.a.

5.5

5.5

24.2**

11.1

n.a.

n.a.

n.a.

n.a.

13.3

13.3

13.3

Women in government at ministerial level in percent 22

*Index 1-7 PR stands for “political rights”, CL stands for “civil liberties”, and “Status” PF=partly free ** Results of the general elections on November 27, 2005 Sources: (1) Worldbank’s Country Profile at www.worldbank.org (2) Informe sobre el Desarrollo Humano UNDP 1999, 2002, 2003, 2005 (3) Art. IV Consultation, April 18 2003, Honduras Enhanced Initiative for HIPC Completion Point Document March 14, 2005, Third review of the PRGF Nov. 28, 2005, IMF (4) Republica de Honduras: Informe de Avances y Actualizacion Estrategia de Reduccion de Pobreza 2003 y 2004, TA Unit at the Ministry of the Presidency, Jan. 2006

23

15524 Honduras

01 Health 02 Education 03 Research 04 HR & Democratic governance 05 Conflict, peace & security 07 Infrastructure 09 Trade, business & fin. syst 10 Natural resources&environm. 12 Other 15561 Non-governmental organisations Total 15571 Humanitarian assistance 06 Humanitarian assistance 15571 Humanitarian assistance Total Outside country allocation Total

02 Education Total

01 Health 02 Education 04 HR & Democratic governance 07 Infrastructure 10 Natural resources&environm. 12 Other No sector stated Total

Allocation Account

Allocation Frame Inside country allocation

15524 Honduras Inside country allocation Total Outside country allocation 15551 Research 15551 Research 15561 Nongovernmental organisations

Main Sector

(All)

Responsible Unit

Outcome and forecast in TSEK

Country report - Honduras

9 26 0 242 0 0 1 157 171 606 0 0 1 515

438 438 11 810

909 909

0 104 3 775 0 152 1 126 0 5 158 5 158

272 271 0 3 360 9 564 1 158 3 117 1 039 9 790

1 581 1 581

10 370 40 173 52 820 16 684 12 724 7 281 0 140 053 140 053

0 0 16 103

50 154 0 882 0 0 8 519 615 2 228

13 875 13 875

25 684 40 961 57 463 20 000 9 636 8 421 9 600 171 766 171 766

0 0 13 472

0 0 0 0 0 0 0 484 88 572

12 900 12 900

0 60 611 37 425 15 500 736 8 002 57 750 180 024 180 024

Data Outcome 2005 Outcome 2006 Forecast 2006 Forecast 2007

Delimitation: Status: I, P, A and C (agr end > 200500 or Outcome 0) Region/Country: Honduras Other:

2. Current Planning Overview

Halving poverty by 2015 is one of the greatest challenges of our time, requiring cooperation and sustainability. The partner countries are responsible for their own development. Sida provides resources and develops knowledge and expertise, making the world a richer place.

SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY SE-105 25 Stockholm Sweden Phone: +46 (0)8 698 50 00 Fax: +46 (0)8 20 88 64 [email protected], www.sida.se