## Content unit: 1hndea2026002 ## Source details **Canonical URL:** [Content unit: 1hndea2026002](https://www.imf.org/-/media/files/publications/cr/2026/english/1hndea2026002.pdf) ## Other formats - [Markdown version](/-/media/files/publications/cr/2026/english/1hndea2026002.pdf.md) - [Structured JSON version](/-/media/files/publications/cr/2026/english/1hndea2026002.pdf.json) --- ### Executive summary — diagnosis and headline statistics - Per capita GDP: - 1990: $1,704.93 - 2023: $2,539 - Income distribution and poverty: - Gini coefficient (2023): 0.51 - Poverty (national measure, 2023): 69.6 percent of population - Extreme poverty (national measure, 2023): 46.7 percent of population - International poverty line $6.85 (2017 PPP), 2023: 52 percent of population - Remittances and vulnerability: - Remittances as percent of GDP (2023): 26.1 percent (LAC average 2023: 2.4 percent) - IMF/INFORM Risk Index: Honduras highest in Latin America (scale 0–10) - Social indicators (selected): - Children/adolescents in poverty (2023): 79 percent; in extreme poverty: 55.8 percent - Femicide rate (2022): 6 per 100,000 women - Electricity coverage: 88 percent of homes; poorest quintile households lacking electricity: nearly 98,000 - Garbage collection access: 46.9 percent of homes; rural burning of waste: 79 percent - Labor and agrifood sector: - Agrifood sector share of GDP (2023): 12 percent - High informality and low female labor force participation; remittance receipt negatively correlated with labor participation ### Pillar 1 — Stability and inclusive growth: objectives, actions, and fiscal impacts - Main objective: achieve macroeconomic stability through inclusive and equitable growth and create fiscal space for social and productive investment. - Priority sectors and lines of action: - Industry: modernize manufacturing and agroindustrial sectors; foster transformation of raw materials, technological adaptation, and integration into value chains. - Agriculture: legalization of agricultural land; food sovereignty; BANADESA financing; inputs, technical assistance, irrigation. - Tourism: promote domestic tourism, agrotourism, Lenca/Maya Corridor recognition; create emergency support fund; diversify offerings. - Infrastructure and energy investments (selected projects and figures): - Roads: construction/rehabilitation of 35 road projects (2023-2025) benefitting 13 departments. - Health: construction of nine new hospitals; beneficiaries >285,588 residents; >900 beds total across hospitals. - ENEE investment program (2025-2032) — TOTAL ENEE (Millions of lempiras): - 2025: 11,890.25 - 2026: 20,975.78 - 2027: 29,170.26 - 2028: 26,738.43 - 2029: 34,182.36 - 2030: 28,624.13 - 2031: 11,424.68 - 2032: 12,951.90 - ENEE projects include Patuca III, Cañaveral Rio Lindo upgrade, Francisco Morazán renovation, El Tablón Multipurpose Dam - Tax and fiscal measures: - Tax Justice Law projected revenue impact: - 2025: 0.3 percent of GDP - 2026: 0.8 percent of GDP - 2027: 1.5 percent of GDP - Goal to increase tax revenue collection by 1 percent of annual GDP (30 billion lempiras) - Integrate tax/budget resources into Single State Fund; improve public enterprise efficiency (ENEE, HONDUTEL, SANAA, HONDUCOR, ENAG) - Fiscal-space commitments: - Maintain minimum spending threshold for vulnerable programs (Pillar 3) - Use fiscal consolidation to free resources for productive investment - Analytical tools: Macroeconomic Consistency Model; Financial Programming template; Public Debt Dynamics (DDT) ### Pillar 2 — Public services and programs to reduce inequalities (scope, targets, and programs) - Purpose: universal essential public goods/services designed to benefit poorest sectors disproportionately; integrates SIPS strategic axes: (1) Income social protection; (2) Human capacity development and access to social services; (3) Labor inclusion; (4) Adaptive social protection. - Education (selected indicators and targets — exact values): - Illiteracy rate: 2024 = 9.39; 2030 = 8.04; 2034 = 7.14; 2038 = 6.24; 2042 = 5.35; 2046 = 4.0 - Pre-basic coverage rate: 2024 = 74%; 2030 = 79%; 2034 = 83%; 2038 = 86%; 2042 = 90%; 2046 = 95% - Basic coverage rate (I and II cycle): 2024 = 79%; 2030 = 83%; 2034 = 86%; 2038 = 88%; 2042 = 91%; 2046 = 95% - Basic coverage rate (III cycle): 2024 = 49%; 2030 = 54%; 2034 = 57%; 2038 = 61%; 2042 = 65%; 2046 = 70% - Dropout rate: 2024 = 2.5%; 2030 = 2%; 2034 = 2%; 2038 = 2%; 2042 = 1%; 2046 = 1% - Number of children at pre-primary and basic levels served with school meals nationwide: 2024 = 1,222,827; 2030 = 1,355,434; 2034 = 1,443,841; 2038 = 1,534,840; 2042 = 1,628,432; 2046 = 1,743,056 - Health (selected indicators and targets — exact values): - Maternal mortality ratio (per 100,000 live births): 2024 = 47; 2030 = 45; 2034 = 40; 2038 = 38; 2042 = 36; 2046 = 34 - Under-five mortality rate (per 1,000): 2024 = 21; 2030 = 20; 2034 = 18; 2038 = 16; 2042 = 15; 2046 = 14 - Percentage supply of basic medicines in Public Health System: 2024 = 90; 2030 = 92; 2034 = 94; 2038 = 96; 2042 = 98; 2046 = 99 - Ratio of doctors per 10,000 inhabitants: 2024 = 10.83; 2030 = 14; 2034 = 16; 2038 = 18; 2042 = 19; 2046 = 20 - Ratio of nurses per 10,000 inhabitants: 2024 = 4.14; 2030 = 16; 2034 = 25; 2038 = 30; 2042 = 35; 2046 = 40 - Surgical delay percentage: 2024 = 59; 2030 = 39; 2034 = 19; 2038 = 0; 2042 = 0; 2046 = 0 - Housing, water and sanitation targets (selected): - Quantitative housing deficit: 2024 = 161,475; 2030 = 113,886; 2046 = 113,430 - Percentage of housing with access to energy: 2024 = 88.2; goals 2030–2046 = 100 - Electricity coverage index: 2024 = 86.2; 2030 = 93; 2034 = 95; 2038–2046 = 100 - Employment and labor targets: - New jobs created (baseline 2024 = 85,879) with goals up to 150,000 by 2046 - Unemployment rate baseline 2024 = 5.2 with goal 3 by 2046 - Informal employment baseline 2024 = 40.2 with goal 20 by 2046 - IHSS Coverage baseline 2024 = 896,472 with goal 2,000,000 by 2046 ### Pillar 3 — Targeted programs for people in poverty and vulnerable groups - Core programs: Solidarity Network (Red Solidaria), PROASOL, Solidarity Scholarships, Free Energy Program (subsidy up to 150 kWh/month) - Solidarity Network operational features: - Prioritizes interventions in 2,007 villages - Six intervention areas: Infrastructure; Health and nutrition; Education; Protection; Income opportunities; Local strengthening - Delivery modalities: direct cash delivery with personalized certificates and on-site verification; mobile ATM units; gradual move to mixed electronic schemes - PROASOL (2024 budget and composition): - 2024 budget: L 1.42 billion - >72% allocated to school meals - Monetary transfers include My Scholarship to Climb the Ladder; monetary aid programs: Bono Esperanza, Bono Oro, Bono Rosa, Bono Valiente, Solidaridad - Free Energy Program: - 2024 beneficiaries: more than 800,000 low-income Honduran families received electricity free - ENEE subsidies as percent of GDP: 2023 = 0.7 percent; 2024 = 0.7 percent; planned 2025 = 0.6 percent - Pillar 3 quantitative baselines (selected, held constant in plan): - Families receiving conditional transfers (2024 baseline): 217,254 - Families receiving monetary transfers (PROASOL baseline 2024): 65,586 - Children at pre-primary and basic levels served with school meals (PROASOL baseline 2024): 1,329,522 ### Transversal axes — Gender and Climate Change (strategic actions and indicators) - Gender objectives: - Protect/promote women’s human rights; mainstream gender across institutions; reduce unpaid care burden; universal sexual and reproductive health access - Ciudad Mujer expansion: centers in six cities; planned expansion and new CCM constructions in 2025 (subject to budget) - Gender indicators (exact values, baseline 2024 and targets): - Gender Reversal Index: 2024 = 4.8%; 2030 = 6.8%; 2034 = 8.8%; 2038 = 10.8%; 2042 = 12.8%; 2046 = 14.8% - Number of institutions mainstreaming gender: 2024 = 36; 2030–2046 = 110 - Percentage of women in elected positions: 2024 = 19.6%; 2030 = 25.2%; 2034–2042 = 30.7%; 2046 = 30.72% - Number of domestic violence cases resolved by courts baseline 2024 = 15,111; 2030 = 21,417; 2046 = 38,233 - Climate change objectives and actions: - Update NDC 3.0, National Decarbonization Strategy toward 2050, Climate Change Law update, Loss and Damage Fund design; development dates concentrated end-2025 and mid-2025 for systems - ENEE National Loss Reduction Program investment: L5,287,141 million lempiras (2025-2030 period) - Climate indicators (selected exact values): - New forest areas incorporated into restoration (hectares): 2024 = 192,828; 2030 = 210,000; 2034–2046 = 140,000 - Percentage of marine areas under conservation: 2024 = 6.96; 2030 = 11.6; 2034 = 12.1; 2038 = 15; 2042 = 16; 2046 = 18.5 ### Institutional governance, capacity, and organizational reforms - Social Cabinet governance: - SEDESOL as governing body for social policy; Cabinet made up of prioritized agencies including SEDESOL, SEFIN, SPE, SESAL, Solidarity Network, PROASOL, SAG, SEDUC, SECAPP, INE, SETRAS, SEMUJER, INJUVE, CONVIVIENDA, SINAF, SGJD, SRECI, IHSS - Functions: coordinate implementation of pillars, minimize technical/administrative risks, provide updated info for Annual Operating Plans (AOPs), sign cooperation agreements, promote transparency and citizen engagement - Institutional tools and information systems (selected): - SIMOP: Program Offer Monitoring System — 29 entities registered 136 programs/projects with georeferencing - SUISS: Single Social Sector Information System — planned centralization of social intervention data (launch planned Q1 2025) - SIRBHO: Honduras Beneficiary Information and Registry System; SIAMIR: Returned Migrant Registry; ROPI: Registry of Institutional and Social Organization Program Offers - Management Planning and Evaluation System (SIUPEG) — implementation phase 98% - Institutional reforms and measures planned: - Create ERP Operating Regulations; standardized guidelines for inter-institutional agreements; strengthen monitoring and evaluation; conduct institutional diagnosis; integrate PEIs into budget planning; strengthen territorial planning and budgeting; develop a sustainable technical civil service ### Implementation Plan, monitoring, evaluation, and risk matrix - Implementation plan features: - Biannual targets; periodic reviews every four years; midterm evaluations scheduled (2026, 2029, 2033, 2037, 2041) and final evaluation in 2046 (alternative listed dates within text for evaluations) - Two main monitoring tools: indicator matrix (biannual indicators/targets) and Annual Monitoring Report (DIGER responsibility with SEDESOL support) - Institutional roles: DIGER leads RBM evaluations; SPE leads strategic planning; INE supplies disaggregated statistics - Capacity-building actions for M&E: - Strengthen national M&E system; improve EPHPM; use SUISS and census for targeting; implement operational and impact evaluations and PETS - Risk matrix (selected risks, probability, impact, mitigation, responsible actor): - Lack of external financing for productive investments: Probability Average; Impact High; Mitigations: broad multilateral/bilateral portfolio; Sustainable Sovereign Bonds; Responsible: SEFIN (DGCP, DPMF) - Low inter-institutional coordination: Probability Medium; Impact High; Mitigations: coordination guidelines, inter-institutional agreements; Responsible: SEDESOL - Low execution capacity/qualified executing units: Probability Average; Impact High; Mitigations: project bank with designs, priority rating, monitoring by implementing units; Responsible: Social Cabinet - Natural disasters linked to climate change: Probability Medium; Impact High; Mitigations: early warning systems; contingency plans; emergency financing mechanisms; Responsible: SEFIN, COPECO, delegated institutions - Lack/inconsistency of information for M&E: Probability Medium; Impact Medium; Mitigation: establish M&E guidelines with responsibilities and resources; Responsible: DIGER ### Key quantitative targets across the ERP (summary of headline goals) - Poverty and inequality targets (Table 20 exact values): - Households in poverty baseline: 62.9%; Goals: 2024 = 58.8%; 2030 = 52.8%; 2034 = 47.8%; 2038 = 37.8%; 2042 = 27.8%; 2046 = 27.8% - Households in extreme poverty baseline: 40.1%; Goals: 2024 = 36%; 2030 = 30%; 2034 = 25%; 2038 = 15%; 2042 = 5%; 2046 = 5% - Inequality index baseline: 0.49; Goals: 2024 = 0.45; 2030 = 0.40; 2034 = 0.30; 2038 = 0.20; 2042 = 0.10; 2046 = 0.10 - ERP expenditure as percent of GDP (2023 baseline): 7% maintained across 2024–2046 *Source: Content unit 1hndea2026002 (Poverty Reduction Strategy 2022–2046, Honduras).* ### Executive summary ### Executive summary ### Diagnosis of the current situation — key findings - Honduras has one of the lowest per capita economic outputs in Latin America: per World Bank Development Indicators (WDI 2024), per capita GDP was $1,704.93 in 1990 and $2,539 in 2023. - Income distribution is highly unequal: Gini coefficient of 0.51 in 2023 (below only Brazil and Colombia in the region). - Remittances are a major share of national income: remittances represented 26.1 percent of GDP in 2023 (Latin American and Caribbean average in 2023 was 2.4 percent). - High climate and disaster vulnerability: the IMF’s Climate Risk Management Index (INFORM Risk Index) is scaled from 0 to 10 and shows Honduras with the highest level among Latin American countries. - Poverty and extreme poverty (national measures, 2023): 69.6 percent of the population lived in poverty (Poverty Line method defined as cost of the Basic Food Basket); 46.7 percent lived in extreme poverty. - International poverty comparison: using the World Bank international poverty line equivalent to $6.85 in 2017 PPP, in 2023, 52 percent of the population lived in poverty. - National poverty lines (2023): urban relative and extreme poverty lines were $4,931.94 and $2,538.78 respectively; rural relative and extreme poverty lines were $2,465.97 and $1,901.71 respectively. - No improvement in inequality trajectory: Honduras has one of the highest Gini coefficients in Latin America with no changes observed over the last decade. - Sectoral social outcomes and vulnerabilities: - Health/nutrition: prenatal coverage similar to regional average; maternal and neonatal mortality rates lower than regional averages; childhood stunting and malnutrition in children under five exceed regional averages; immunization rates close to average but below universal coverage and have declined over the last decade; undernourishment has increased above the regional average; tuberculosis incidence shows a downward trend. - Early childhood education: in 2019, only 13.6 percent of the 36- to 59-month-old cohort attended an early childhood education program. - Education overall: primary attendance rates below regional average with rural disadvantages; secondary and higher education attendance rates are the lowest in the region; low quality of education as reflected in standardized tests; limited years of schooling among adults constrain human capital development. - Labor market and agrifood sector: high informality and low labor force participation (particularly among women); negative correlation between remittance receipt and labor market participation; agrifood sector represented 12 percent of GDP in 2023, is predominantly small-scale, and faces limited access to resources, research gaps, high production costs, logistical problems, and labor shortages tied to migration. - Gender and violence: femicide rate of 6 per 100,000 women in 2022; 52.8 percent of women report having experienced violence at some point; 70.6 percent of women live in poverty (exceeding men), with female-headed households facing higher extreme poverty; discrimination in workplace and community where 31.9 percent of women report violence. - Housing and basic services: electricity coverage reaches 88 percent of homes, but nearly 98,000 households in the poorest quintile lack this service; 46.9 percent of homes have access to garbage collection; in rural areas, 79 percent burn waste. - Sport, recreation, and culture: infrastructure limitations, lack of inclusive policies, and shortage of specialized human resources limit access and economic opportunities; cultural rights implementation is limited by lack of funding, clear policies, and institutional attention, affecting Indigenous and Afro-descendant peoples and cultural inclusion. - Vulnerable groups: - Children and adolescents (2023): 79 percent in poverty and 55.8 percent in extreme poverty; approximately 9 percent of children and adolescents aged 5–17 reported paid employment (higher among 15–17-year-olds, boys, and rural residents); violence in family, school, and community settings affects development. - People with disabilities: multiple barriers of discrimination and invisibility; lack of national data limits inclusive policy design; infrastructure and communication obstacles persist in health, education, and employment. - Older adults: low coverage of contributory and non-contributory programs—less than 3 percent of the population aged 65 and over reported receiving contributory pensions; less than 3 percent are beneficiaries of the Gold Bonus program. - Returning migrants: face saturated labor market, limited formal opportunities, destabilization of family economies when remittances fall, inability to validate experience acquired abroad, and children/adolescents lacking identification face barriers to basic services. - Indigenous and Afro-descendant populations: structural inequalities in education and basic services; low secondary completion rates (e.g., Lenca have limited achievement at all academic levels); lack of legal protection for territories and discrimination increase poverty, food insecurity, malnutrition, and socioeconomic exclusion. ### Poverty Reduction Strategy (ERP) 2022–2046 — design and pillars - Strategic orientation: - The 2022–2046 ERP adopts an asset approach to reduce poverty by addressing structural factors that generate it, aiming to provide the most vulnerable with capabilities, opportunities, and resources to sustainably improve quality of life. - The ERP’s vision aligns with the Government Strategic Plan (2022–2026), Institutional Strategic Plans (PEI) of the Social Cabinet, and the 2030 Sustainable Development Goals. - Three central pillars of the ERP: - Pillar 1. Stability and inclusive growth: macroeconomic policy actions to guarantee stability, foster economic growth, and generate productive opportunities for the population, including lower-income groups. - Pillar 2. Public services and programs to reduce inequalities: supply of universally accessible goods and services designed to benefit lower-income populations to a greater extent, including education; health; employment; productive actions in the countryside; housing; water and sanitation; sports and recreation; culture and heritage; social infrastructure; and components of the Integrated Social Protection System. - Pillar 3. Programs focused on serving the poor and vulnerable groups: programs, actions, goods, and services directly aimed at the poor in priority geographic areas, including the Solidarity Network, Solidarity Action Program (PROASOL), Solidarity Scholarships, and Free Energy programs. - Institutional lessons and adjustments: - The ERP builds on the 2001 Strategy precedent but incorporates lessons about overly ambitious goals and institutional constraints, emphasizing targeted geographic priorities, strengthened social protection, and creation of productive ecosystems to support inclusive growth. ### Conceptual framework — asset approach and operational priorities - Asset approach core elements: - Poverty and inequality arise from imbalances in four elements: distribution of income-generating assets; opportunities to use those assets; prices that compensate for their use; and independent transfers of assets. - Income-generating assets are categorized as human capital (skills, health, nutrition), physical capital (land, property, basic services), and social capital (networks, norms, trust). - Operational priorities and synergies: - Simultaneous and territorial interventions to remove constraints to asset accumulation and use (lack of basic services, minimum capabilities, wealth, risk protection, and labor market access). - Maximize cross-sector synergies among health, education, infrastructure, and income-generation interventions. - Priorities include investing in basic services, creating accessible financial markets, developing infrastructure, and aligning skills of vulnerable populations with market demands to foster stable enabling environments for poverty reduction. ### Objectives — general and specific - Central objective: - Reduce poverty through comprehensive, multidimensional public policies that expand population capabilities, enable productive use of assets with adequate remuneration, and operate within an environment of stability and economic growth. - Specific objectives: - Create an environment for economic growth with economic stability as a necessary (but not sufficient) condition for sustained poverty and inequality reduction. - Reduce gaps in access to services for people living in extreme and relative poverty, considering the territories where they are concentrated. - Increase coverage of the social protection and welfare system and update the value or amount of transfers and pensions. - Create and financially and technically strengthen local savings and credit institutions in extremely poor communities to prioritize development of productive, viable, and sustainable ecosystems that generate family income and improve quality of life. *Executive summary — Honduras (ERP 2022–2046).* ### 3. Pillar 1: Stability and inclusive growth ### 3. Pillar 1: Stability and inclusive growth ### Objective and macroeconomic framework - Main objective: achieve macroeconomic stability through inclusive and equitable growth and creation of fiscal space to promote social and productive investment. - Macroeconomic stability components highlighted: low inflation, controlled budget deficits, and sustainable external debt. - Complementary policies: openness to international trade, improved education, and strengthening the rule of law. - Growth emphasis: increase per capita GDP to expand resources available to the population and direct them to the most disadvantaged sectors. ### Lines of action to boost key sectors of the economy - Proposed model: strengthen the role of the State in strategic areas and provision of essential public services. - Priority sectors: industry, agriculture, and tourism. - Industry: - Focus on modernizing manufacturing and agroindustrial sectors. - Promote transformation of raw materials, productive diversification, and firm integration to increase exports and participate in global value chains. - Prioritize innovation, technological adaptation, and improvement of basic infrastructure to generate greater added value and more jobs. - Agriculture: - Promote legalization of agricultural land with emphasis on social justice and respect for the law. - Combat rural poverty through food sovereignty, strengthening the local market, and access to financing through BANADESA. - Guarantee informed consultations with rural communities. - Support producers with inputs, technical assistance, and irrigation projects. - Tourism: - Promote sustainable tourism: strengthen domestic tourism, agrotourism, and international recognition of the Lenca/Maya Corridor. - Create an emergency support fund. - Diversify the tourism offering, foster sector resilience, promote access for local population, and attract international investment. ### Infrastructure and energy investments - Roads: - The Ministry of Infrastructure and Transportation (SIT) is promoting construction or rehabilitation of 35 road projects during the 2023-2025 period. - These projects directly benefit 13 departments; expected outcomes include improved market access, reduced transportation costs, local economic development, and better access to basic services to reduce rural poverty and isolation. - Health infrastructure: - Historic hospital infrastructure project: construction of nine new hospitals in Ocotepeque, Roatán, Salamá, and Santa Bárbara. - Beneficiaries: more than 285,588 residents. - Capacity and services: these hospitals will provide more than 900 beds, specialized services, advanced technology, and intensive care units. - Energy sector (ENEE): - ENEE investment program for the 2025-2032 period covering generation, transmission, distribution, and the National Loss Reduction Program. - Projects underway or planned include: - Construction and entry into operation of the Patuca III Hydroelectric Dam. - Cañaveral Rio Lindo Hydroelectric Complex upgrade project. - Renovation of the Francisco Morazán Hydroelectric Plant. - "Support for the National Electric Energy Transmission Program" project. - Expansion of distribution circuits in ENEE substations nationwide. - Construction of the El Tablón Multipurpose Dam (impact on flood mitigation in the Sula Valley and, to a lesser extent, on electricity generation). ### Lines of action to improve tax collection - Tax Justice Law projected revenue impact: - Increase revenue collection by 0.3 percent of GDP in 2025. - Increase revenue collection by 0.8 percent in 2026. - Reach 1.5 percent of GDP in 2027. - Additional tax measures: - Reform of the land-income tax system to global income to combat tax evasion. - Advance international tax cooperation and improve financial system integrity. - Aim to reduce the risk of blacklisting or graylisting and prevent being declared a tax haven. - Public financial management: - Integrate tax and budgetary resources into the Single State Fund to strengthen accountability and optimize transfer programming to public institutions. - Improve efficiency and sustainability of strategic public enterprises (ENEE, HONDUTEL, SANAA, HONDUCOR, ENAG). ### Policies for inclusive growth and fiscal space - Commitment to maintain a minimum spending threshold to strengthen programs aimed at the most vulnerable (further detailed in Pillar 3). - Programs and services: bonuses, subsidies, scholarships, school lunches, strengthening hospital network, repairing schools, building productive roads, implementing rediscount operations, among others. - Strategic investment focus: prioritize infrastructure that improves quality of life and economic dynamism, fosters job creation, and promotes sustainable development. - Fiscal consolidation actions: review non-priority budget expenditures to free fiscal space and finance investments with domestic resources. ### Analysis and monitoring - Analytical approach: a Macroeconomic Consistency Model and the Financial Programming template of the General Directorate of Macrofiscal Policy are used to analyze the impact of fiscal resources allocated to poverty reduction on economic growth. ### Advances for economic growth during the 2022-2026 administration - Fiscal and digital administration: - Promotion of the Tax Justice Law and improved tax and customs collection. - Establishment of the Advanced Electronic Signature as a digital seal for electronically signed documents. - Establishment of the SAR virtual office for user access to procedures, appointment scheduling, and self-paid receipts. - Financial sector and private sector support: - First cybersecurity regulation approved. - Lending increased by L. 60 billion. - Anti-money laundering measures strengthened. - MSME support: creation of 3,407 companies; financing for 1,564 producers; connection of 827 entrepreneurs to markets. - Industrial policy and institutions: - Progress in formulating Honduras's Industrial Policy with a focus on self-sustaining and inclusive industries (joint effort with private sector, Ministry of Economic Development, and UNIDO). - Reactivation of the National Quality Council. - Fiscal consolidation measures aligned with agreements with the IMF to ensure fiscal sustainability and prudent public debt levels while safeguarding social spending and productive investment. ### Connections to Pillars 2 and 3 (summary of relevant links) - Pillar 2 (Public services and programs to reduce inequalities): - Focus on universal public services that disproportionately benefit poorest sectors: education, health, employment, productive activities, housing, water and sanitation, sports and recreation, culture and heritage. - SIPS (Comprehensive Social Protection System of Honduras) strategic axes: (1) Income social protection; (2) Human capacity development and access to social services; (3) Labor inclusion; (4) Adaptive social protection. - Pillar 3 (Programs focused on population living in poverty and vulnerable groups): - Targeted programs include the Solidarity Network (Red Solidaria), PROASOL, Solidarity Scholarships, and the Free Energy Program. - Solidarity Network priorities: infrastructure; health and nutrition; education; protection; income opportunities; local empowerment; prioritized actions in 2,007 villages; plan to identify 120,000 new households in urban extreme poverty through a census; commitment to a specific budget allocation system for prioritized villages. - PROASOL: - Mission: strengthen capacities and generate opportunities for people in poverty and social exclusion across 12 vulnerable groups. - 2024 budget: L 1.42 billion, with more than 72% allocated to school meals. - Core supports: monetary transfers (My Scholarship to Climb), economic bonds (Hope, Gold, Pink, Brave and Solidarity), Hope Funds for humanitarian aid. - Six priority lines of action to strengthen PROASOL: continuous beneficiary information updates; improve service quality; develop strategic alliances; analyze coverage gaps; create new social services; increase inter-institutional coordination with SEDESOL and other agencies. - Free Energy Program: - Subsidy for residential ENEE subscribers consuming up to 150 kilowatt hours (kWh) per month. - 2024 beneficiaries: more than 800,000 low-income Honduran families received electricity free of charge. - ENEE subsidies as percentage of GDP: 0.7 percent in 2023; 0.7 percent in 2024; planned 0.6 percent in 2025. *Source: 3. Pillar 1: Stability and inclusive growth (content unit 1hndea2026002).* ### 6. Transversal axes of the ERP ### 6. Transversal axes of the ERP ### Gender axis - Overall objective: protect and promote the human rights of women and girls; ensure gender equality at all levels of decision-making; include women and girls in the digital transformation; support women entrepreneurs; reduce the burden of unpaid domestic work and care; eliminate all forms of gender-based discrimination and violence; guarantee universal access to sexual and reproductive health and reproductive rights. - Implementation focus (within Pillar 2 and aligned with Honduras's Third Gender Equality and Justice Plan (2023-2033)): - Increase targeted investment in gender. - Mainstream gender perspective into all public institutions. - Promote female leadership and increase women's political and labor participation. - Expand comprehensive sexual and reproductive health care. - Strengthen the fight against domestic violence. ### Climate change axis - Overall objective: promote inclusive, sustainable, and resilient economic development that strengthens adaptation and mitigation against the effects of climate change and extreme events, integrating policies for the conservation and sustainable use of natural resources. - Strategic actions to be implemented by the Ministry of Natural Resources: - Update of the Nationally Determined Contributions (NDC 3.0). - National Decarbonization Strategy toward 2050. - National Climate Empowerment Strategy. - Update of the Climate Change Law. - Development of climate financing policies, the Loss and Damage Fund, national climate monitoring systems, and environmental and social safeguards. - Complementary emergency and adaptive social protection actions: - SEDESOL: Internal Protocol for Dealing with Emergency Situations (in draft form) and a Humanitarian Aid Plan delivering food rations in areas with greatest need. - Solidarity Network: Adaptive Social Protection providing monetary transfers in climate-related and social emergencies. ### Citizen participation in ERP construction - Participation mechanisms and scale: - Honduras Open State Action Plan (PAEAH) 2023-2025 developed with participation of more than 4,000 citizens. - 10 State Commitments developed through 20 national consultations involving diverse social sectors. - Dissemination event for the ERP with participation of nearly 90 civil society organizations, donors, and government institutions. - Role of community structures: - Solidarity Network includes solidarity roundtables with more than 12,000 volunteers in 1,653 roundtables acting as liaisons between communities and government institutions. - Social Protection Policy proposes social audits for citizen evaluation and supervision of public and private management. - Inputs from key stakeholders: - Honduran Council of Private Enterprise (COHEP): comments on economic growth, investment, formal employment, social security, regulatory environment, monitoring and evaluation; led to adjustments including incorporating private sector role in Industrial Policy and reformulating climate and agricultural objectives; PRS monitoring model strengthened. - Association for a More Just Society (ASJ): recommended improvements in investment, institutionality, citizen participation; emphasized closing gaps in health, education, infrastructure, rationalizing public spending, and strengthening state capacities; ERP includes specific lines of action in health, education, and road infrastructure in response. ### Fiscal framework of the ERP - Fiscal policy basis: MMFMP Framework guiding strategic economic and fiscal policy decisions and first step in formulating the General Revenue and Expenditure Budget of the Republic. - Fiscal consolidation and fiscal space approach: - Gradual return to fiscal consolidation while creating fiscal space to boost productive investment. - Commitment to maintaining prudent levels of public debt anchored in the Fiscal Responsibility Law (LRF). - Improve tax collection efficiency to increase fiscal space. - Fiscal goals and exact targets: - 2024 NFPS deficit target: 3.0 percent of GDP; this deficit includes fiscal space of 1.3 percent of GDP for productive investment. - Comparison: target below the 3.9 percent of GDP target established in Article 331 of Decree No. 62-2023. - 2025 NFPS deficit agreed under the IMF program: 2.5 percent of GDP; includes additional fiscal space of 1.0 percent of GDP for productive investment. - Measures to strengthen public spending efficiency (selected): - Progress toward a Medium-Term Expenditure Framework. - Adoption and implementation of a budget execution programming manual to strengthen expenditure control. - Development of a salary policy. - Detailed analysis of Fiscal Rules to guide gradual deficit reduction. - Continued service to the most vulnerable sectors with maintenance of minimum social investment and significant productive investment, anchored to the LRF or possible reforms/interpretations. - Continued implementation of the Government's economic program supported by the agreement with the IMF. - Encourage well-calibrated methodologies for measuring fiscal risks. - Monitor amendment to the Organic Budget Law to strengthen the Single Treasury Account (submitted to Congress in 2024). - Strengthen technical, regulatory, procedural, and implementation capabilities for the Single Fund. - Access financing resources for productive and social investment; encourage development of the domestic financial market. - Implement budget allocation according to Institutional Strategic Plans incorporating goals and service packages of the Solidarity Network Program. ### Institutional and organizational capacities for implementation - Implementation challenge: effective PRS execution depends on government institutional capacity; historical institutional and budgetary limitations produced fragmented coverage. - Institutional restructuring: initiated to establish new governance and strategic management to strengthen social protection system; requires continued institutional strengthening, specific budget allocations, and improved capacity to convert public resources into goods and services. - Proposed institutional advances: - Robust institutional framework central and territorial with clear governance, effective strategic coordination, strengthened technical capacities, clarified roles, avoidance of duplications, and a sustainable technical civil service. - Six key areas of reform: strengthening central and territorial governance; developing institutional and budgetary capacity; creating and coordinating specific social protection subsystems; climate risk resilience strategies; synergies with economic and productive sectors. - Governance of the Social Cabinet: - Social Cabinet: primary governance mechanism for the social sector to coordinate, articulate, organize, and provide feedback on actions across the social sector. - Within the ERP, the Cabinet is made up of 22 government entities with planning, programming, and coordination functions and/or participation in supply of goods and services within pillars 2 and 3 of the ERP (note: a total of 42 institutions are assigned to the Social Cabinet, with those listed prioritized for direct ERP implementation). - Named entities (selected): SEDESOL; Ministry of Finance (SEFIN); Ministry of Strategic Planning (SPE); Ministry of Health (SESAL); Solidarity Network; PROASOL; SAG; SEDUC; Ministry of Culture, Arts, and People's Heritage (SECAPP); CONDEPOR; SENPRENDE; FHIS; INE; Ministry of Labor and Social Security (SETRAS); Ministry of Human Rights (SEDH); Ministry of Women (SEMUJER); INJUVE; CONVIVIENDA; SINAF; SGJD; SRECI; IHSS. - Coordination beyond government: depends on academia, trade unions, international cooperation agencies, civil society, humanitarian actors, private companies, financial institutions, and political institutions. - Functions of the Social Cabinet (within PRS): - Implementation and oversight of policies, programs, and projects across three pillars. - Minimize technical and administrative risks; ensure proper execution of action lines. - Provide updated information for Annual Operating Plans (AOPs) to contribute to poverty reduction. - Establish technical and financial cooperation agreements with public and private institutions. - Promote transparency and citizen engagement; deliver training activities; facilitate ongoing public-private dialogue. - Assume additional functions assigned by the Presidency of the Republic as needed. - Inter-institutional coordination mechanisms: - Social Cabinet’s Internal Technical Committee responsible for coordinating and articulating efforts among entities. - SEDESOL’s Intersectoral Coordination Directorate links the Secretariat with implementing institutions for continuous monitoring. - Regulatory and operational framework supported by three legal documents: General Law of Public Administration of Honduras; Executive Decree No. PCM-008-97 (Regulations on the Organization, Functioning, and Powers of the Executive Branch); Executive Decree PCM-19-2022 (expands powers of SEDESOL and establishes governance of the Social Cabinet and the Social Protection and Labor Market Roundtable). ### Progress in current administration and future actions - Recent institutional achievements: - Creation of SEDESOL in 2022 consolidated its role as governing body for social policy; implementation shifted to Red Solidaria and PROASOL. - Progress (in collaboration with the Inter-American Development Bank) on a Social Protection Framework Law proposal (to be submitted to Congress) and a new Public Procurement Law. - Promotion of inter-institutional cooperation agreements among public entities, NGOs, academic institutions, and international organizations. - Solidarity Roundtables: more than 12,000 members in targeted villages supporting territorial implementation and socioeconomic data collection. - Formalized agreement between Ministry of Health and Solidarity Network to build and equip hospitals in collaboration with PAHO. - Upcoming implementation of the Single Social Sector Information System (SUISS) to centralize data on social interventions. - SIMOP implementation enabling registration and monitoring of institutional programs in the social sector with georeferenced national coverage. - SEDESOL systems for strategic planning, budget monitoring, gender equity, socioeconomic registration, assistance to returned migrants, institutional program offerings, citizen management, and geostatistical analysis. - Recognized need to integrate these systems with sectoral and territorial budget planning to improve targeting and effectiveness. - Future actions and institutional strengthening measures: - Adopt a collaborative management model coordinating government, civil society, private sector, academia, and international organizations; articulate horizontal and vertical government levels to local communities. - Implement sectoral planning and budgeting with territorial focus through Institutional Strategic Plans. - Create ERP Operating Regulations to establish clear guidelines. - Conduct institutional assessment to identify organizational and territorial gaps. - Standardize guidelines for inter-institutional agreements. - Implement a robust monitoring mechanism and clear operating rules for social programs. - Strengthen evaluation and monitoring system to operate a results-based model. - Enhance transparency and accountability through accessible and understandable information, focusing on population subgroups and different territories nationwide. *Source: 6. Transversal axes of the ERP (content unit: 1hndea2026002)* ### 10. Implementation Plan ### 10. Implementation Plan ### Overview - The 2022-2046 PRS includes a PRS implementation plan that establishes concrete goals, precise indicators, and responsible areas by sector, designed to monitor and evaluate progress toward achieving the defined objectives. - The plan is designed based on a comprehensive approach, with biannual targets that allow for intervention adjustments over time. - The plan acts as a strategic guide to direct efforts toward poverty reduction and promoting inclusive growth, while recognizing that changes in macroeconomic and social conditions may require periodic reviews to adapt to progress made, address new challenges, and take advantage of emerging opportunities. ### Risk matrix - Purpose: identify main challenges that could affect PRS implementation and achievements. - Risk categories: - Financial: related to insufficient resources and inaccuracies in macroeconomic assumptions. - Technical or management: operational problems such as limited inter-institutional coordination, a lack of installed capacity for program and project operations and adequate monitoring, and poor fund management. - Political and social: associated with the loss of political support and low citizen participation. - Contextual or external: factors beyond direct control, such as natural disasters, security crises, and pandemics. - Assessment method: - Each risk is assessed in terms of its probability of occurrence (high, medium, or low) and its impact (high, medium, or low). - Specific mitigation measures and the actors responsible for implementing them are included. ### General framework for monitoring and evaluation of the ERP - Rationale: A monitoring and evaluation framework is key to measuring progress toward objectives, identifying improvements, and adjusting interventions according to population needs; it is data-driven to facilitate informed decision-making, optimize resources, and ensure policies benefit the most vulnerable people. - Relationship to existing government tools: The plan draws on the Honduran government's policies and tools to monitor national goals, highlighting advances while recognizing the need for a single, integrated framework. - Results-Based Management (RBM): The Honduran government has adopted a Results-Based Management (RBM) model; monitoring and evaluation is one of the model's five key components. - Institutional setup: - Central level: Directorate of Results-Based Management (DIGER) (responsible for implementing the MGR) and the Secretariat of Strategic Planning (SPE) perform monitoring and evaluation functions. - Sectoral level: special monitoring and evaluation units of the State Secretariats coordinate with DIGER to ensure implementation of monitoring and evaluation stages. - Other participants: SEDESOL (responsibilities in this area and serves as the Strategy's governing body), civil society organizations, academia, and INE will be invited to participate. ### Monitoring and Evaluation plan — tools and scope - Scope: generate and manage information on progress of physical and financial indicators, impact of PRS programs and projects, quality of operation, sustainability analysis, and lessons learned. - Two main monitoring tools for the 2022-2046 ERP: 1. Indicator matrix: - Each objective of Pillars 2 and 3 has biannual indicators and targets, adjustable over the period based on analysis of national and international scenarios. - The Secretariat of Strategic Planning will lead data collection, with support from SEDESOL through the Program Monitoring Directorate. 2. Annual Monitoring Report: - An analytical document to assess Strategy progress and serve as a basis for planning the next cycle and the budgetary framework. - DIGER, with support from SEDESOL, will be responsible for its preparation. - National statistics: The national statistical system, led by the INE, will ensure collection of disaggregated and relevant data for ongoing monitoring. - Periodic review: The ERP includes a review of its objectives and goals every four years to ensure continued relevance and alignment with national reality. ### Evaluation schedule - Midterm evaluations: - Scheduled for 2026, 2029, 2033, 2037, and 2041. - Purpose: analyze impact of action lines on poverty targets and sectoral outcomes. - Leadership and execution: DIGER (National Institute of Human Rights) will lead these evaluations; State Secretariats, with DIGER support, will prepare annual plans to evaluate policies, programs, and projects, prioritizing major investments with territorial, gender, and Indigenous and Afro-Honduran approaches. - Final evaluation: - In 2046, a report will be prepared on the results and impact of the ERP, highlighting findings, sustainability, and lessons learned in technical, administrative, and operational aspects. - DIGER will be responsible for this evaluation. - Dissemination: All reports will be disseminated through official media, linked to the 2030 Agenda reports, and presented to high-level decision-making bodies. ### Capacity building in monitoring and evaluation - Objectives: - Strengthen the national monitoring and evaluation system. - Establish a unified institutional framework to coordinate and harmonize government actions in monitoring and evaluation. - Develop clear guidelines for monitoring and evaluating the PRS. - Specific actions: - Strengthen institutional capacities to collect, analyze, and disseminate information using different methodologies, including operational and impact evaluations, and the use of Public Expenditure Tracking Surveys (PETS). - Collaborate with the INE to improve the Permanent Household Survey (EPHPM). - Optimize use of the Single Information System for the Social Sector and the Population and Housing Census for precise targeting of resources to the most vulnerable households. - Implement advanced targeting models that integrate socioeconomic factors and specific variables such as disability, gender, and age, complemented by continuous monitoring mechanisms to adjust social interventions according to changing needs. - Expected outcomes: improved efficiency, transparency, and a positive impact on reducing poverty and inequality. *This document may be updated or modified as new provisions, information, or institutional needs arise, in order to ensure that its content remains current.* ### 2. Description of the Poverty Reduction Strategy 2022-2046 .................................................... 114 ### 2. Description of the Poverty Reduction Strategy 2022-2046 ### Background: the 2001 ERP (Section 2.1) - Presents historical context rooted in the 2001 ERP. - Includes Table 17 Incidence of Poverty in Households, 2001-2005 and Table 18 Gini coefficient of Honduras, 2001-2005. - Figure 2.1 General structure 1the ERP 2022-2046 referenced in this section. ### Conceptual Framework of the Poverty Reduction Strategy 2022-2046 (Section 2.2) - 2.2.1 Core elements of the approach - Describes foundational elements that guide the ERP’s design and implementation. - 2.2.2 Restrictions on the accumulation or use of assets - Addresses constraints related to assets in the ERP’s asset-based approach. - 2.2.3 Policy and action approach derived from the conceptual framework - Links conceptual pillars to actionable policy lines. - 2.2.4 Principle of integrity in actions - Sets out integrity as an operational principle. - Figure 2.2 Income inequality and poverty in the asset approach is located within this section. - Table 2.16 Composition of ERP expenditure by fund type (as a percentage of total expenditure) is referenced. ### General objective of the ERP 2022-2046 (Section 2.3) - States the overarching goal of the ERP for the 2022-2046 horizon. - Accompanied by Table 20 General poverty indicators and targets. ### Regulatory framework of the ERP (Section 2.4) - Details the legal and regulatory instruments that govern the ERP. - Includes Table 21 Regulatory framework of the ERP. ### Links to Pillars and Implementation (cross-references inside Section 2) - The Description section connects with later detailed pillars and implementation plans: - Pillar 1: Stability and inclusive growth (Section 3) - Pillar 2: Public services and programs to reduce inequalities (Section 4) - Pillar 3: Programs focused on the population living in poverty and vulnerable groups (Section 5) - Transversal axes (Section 6), Governance (Section 9), Implementation Plan (Section 10), Risk matrix (Section 11), and Monitoring and Evaluation framework (Section 12) - Numerous sectoral tables and figures referenced in later sections are introduced or linked from this description (e.g., Table 24 Investment Program 2025-2032 (Millions of lempiras); Table 22 Featured generation projects 2026-2033; Table 23 Featured transmission projects 2026-2030). ### Key structural elements and metrics cited in the Description - Time horizon: 2022-2046 (appears throughout chapter heading and section references). - Historical comparison points: 2001-2005 (Tables 17 and 18). - Fiscal and expenditure composition references: - Table 2.16 Composition of ERP expenditure by fund type (as a percentage of total expenditure). - Table 24 Investment Program 2025-2032 (Millions of lempiras). - Poverty indicators and targets: Table 20 General poverty indicators and targets. - Governance and organizational structure links: - Figure 2.1 General structure 1the ERP 2022-2046. - Cross-referenced governance diagrams in Sections 9 (Figure 9.1, Figure 9.2). *Source: 2. Description of the Poverty Reduction Strategy 2022-2046 (chapter contents and cross-references as listed in the PDF).* ### Introduction ### Introduction ### Context and challenges - Honduras is at a crucial moment of transformation, facing the challenge of re-establishing its development model to address structural roots of long-standing problems. - Renewed focus on sustainable development with clear priorities in: education, health, social protection, decent employment, entrepreneurship, financial inclusion, gender equality, and environmental stewardship. - The 2022-2026 government has renewed the Poverty Reduction Strategy (ERP), in force since 2001, recognizing limited progress, persistent inequality, and structural vulnerabilities affecting quality of life. - Key recent shocks exacerbating challenges: the COVID-19 pandemic and Tropical Storms Eta and Hurricane Iota in 2020. ### Poverty and inequality: key statistics - 2023 poverty incidence: 69.6 percent of the population lived in poverty. - 2023 extreme poverty incidence: nearly 47 percent of the population lived in extreme poverty. - National poverty measurement method (EPHPM): poverty line defined as cost of the basic food basket; inequality measured using the Gini coefficient. - 2023 relative and extreme poverty lines (urban): $4,931.94 and $2,538.78, respectively. - 2023 relative and extreme poverty lines (rural): $2,465.97 and $1,901.71, respectively. - International comparison: international line of $6.85 per day in 2017 PPP used to allow cross-country comparisons. ### Vision and alignment - The new Poverty Reduction Strategy 2022-2046 (ERP) proposes a medium-term approach responding to current social and macroeconomic reality. - ERP seeks to provide the most vulnerable populations with capabilities, opportunities, and resources to sustainably improve quality of life. - Prioritizes inclusive policies and programs focused on three main pillars: - (1) Stability and inclusive growth - (2) Public services and inequality reduction - (3) Comprehensive care for people living in poverty, extreme poverty, and vulnerability - ERP vision aligned with: Country Vision 2010-2038, Government Strategic Plan 2022-2026, Institutional Strategic Plans (PEI) of State Secretariats in the Social Cabinet, and the 2030 Sustainable Development Goals (SDGs). ### Conceptual framework and strategic approach - The PRS is conceptually guided by the asset approach, viewing social policy instruments as investments to improve productivity of people with fewer resources and economic opportunities. - Asset approach objectives: - (i) Focus on root causes of poverty, recognizing multiple dimensions requiring comprehensive treatment. - (ii) Expand productive capacities of the population to increase possibilities of generating sustained wealth. - (iii) Reduce inequality gaps by ensuring lower-income strata can access opportunities generated by the environment. ### Structure of the document and chapter highlights - The document consists of 12 chapters, with core elements summarized below: - Chapter 1 — Diagnosis of the Current Situation: detailed analysis of economic and social situation, macroeconomic dynamics, structural challenges, and impacts of external factors. - Chapter 2 — Conceptual Framework for the Poverty Reduction Strategy 2022-2046: presents the asset approach and the need to address structural causes of poverty. - Chapters 3–5 — The three core pillars (each developed in its own chapter): - Chapter 3 — Stability and Inclusive Growth: lines of action to foster sustained and dynamic growth and ensure inclusivity within economic stability. - Chapter 4 — Public Services and Programs to Reduce Inequalities: supply of universally accessible goods and services designed to benefit poorest populations; integrates Comprehensive Social Protection System components and links to SDGs. - Chapter 5 — Programs Targeted to Serve the Poor and Vulnerable Population: actions and services specifically aimed at populations in poverty and extreme poverty, including the Solidarity Network, the Solidarity Action Program (PROASOL), Solidarity Scholarships, and the Free Energy Program. - Chapter 6 — Cross-cutting themes: gender and climate change, promoting gender equality and comprehensive mitigation and adaptation policies to strengthen resilience and protect natural resources. - Chapter 7 — Citizen Participation: construction of the PRS through inclusive participatory processes involving indigenous communities, women's organizations, youth, agricultural producers, and private sector representatives. - Chapter 8 — Fiscal Framework: analyzes available fiscal space and links government objectives with the IMF program; details measures to improve public spending efficiency. - Chapter 9 — Institutional and Organizational Capacities: governance of the Social Cabinet in the ERP and actions to strengthen capacities for effective, coordinated implementation. - Chapter 10 — Proposed Implementation Plan: specific actions for strategic lines in chapters 4 and 5, each with goals, indicators, responsible actors, and implementation dates/periods. - Chapter 11 — Risk Mitigation Measures: identifies main unexpected events, distinguishes probability and impact levels (high, medium, low), and establishes mitigation measures for each risk. - Chapter 12 — Monitoring and Evaluation: framework describing indicator matrix, process monitoring, annual monitoring reports, and midterm and final evaluations to analyze achievements, provide feedback, and identify lessons learned. ### Implementation outlook - The ERP is presented as a roadmap to reduce poverty and promote inclusive growth in coming years. - The PRS is designed to be dynamic and periodically adjusted to respond to progress, emerging challenges, and opportunities in national and international environments. *Source: Introduction, 1hndea2026002* ### 1. Diagnosis of the current situation ### 1. Diagnosis of the current situation ### Macroeconomic and income-level overview - Honduras has been among the Latin American countries with the lowest per capita output: - Per capita GDP in 1990: $1,704.93. - Per capita GDP in 2023: $2,539. - The country combines low per capita income with highly unequal income distribution, contributing to one of the highest poverty rates in the region (see Figure 1.1 in source). - Vulnerability to recurring natural disasters has inhibited development and poverty reduction. ### Constitutional guarantees and social rights (context for PRS 2022–2046) - The Constitution recognizes fundamental rights and state obligations across multiple social areas: - Elderly (Article 117, Chapter III), children (Chapter IV), indigenous communities (Article 346, Chapter III, Title VI), with ILO Convention 169 as part of national legislation. - Education: basic education compulsory, free, and of high quality; includes pre-basic (4–6 years), three cycles of basic education (first cycle 6–8 years; second cycle 9–11 years; third cycle 12–14 years), and secondary level (15–17 years). - Health: State obligation to guarantee promotion, prevention, treatment, rehabilitation, and care for all pathologies. - Labor: guarantees freedom of choice of employment, equitable conditions, coverage for illness, maternity, family allowance, old age, orphanhood, forced unemployment, work accidents, occupational diseases, and other contingencies; State must promote employment policies and labor justice. - Housing: State must guarantee access to decent housing, prioritize low-income families, and promote social housing. - Water and sanitation: recognized as a human right; equitable use prioritized for human consumption and protection of sources. - Sports, culture: State responsibility to promote universal access to sports/recreation and protect/promote national culture and heritage. ### Economic growth and productivity - Historical growth and shocks: - Average annual GDP per capita growth rate for Honduras, 2009–2019: 1.8 percent. - In 2020, Argentina, Ecuador, and Honduras recorded some of the largest contractions in GDP per capita in the region, above 10 percent; regional LAC contraction was -7.4 percent. - COVID-19 and tropical storms Eta and Iota contributed to the 2020 contraction and a substantial increase in poverty. - Between 2021 and 2023, Honduras’ average annual growth rate of GDP per capita was faster than other countries in the region, but growth remains insufficient to offset high poverty levels. - Sectoral contributions to growth: - 2017–2019: financial intermediation contributed the largest proportion to GDP growth, followed by trade and manufacturing. - 2021–2023: financial intermediation and trade accounted for the largest share of growth; manufacturing contributed the least (linked to lower US clothing demand). - Employment composition and productivity: - Approximately 70 percent of the employed population works in low-productivity sectors (agriculture, commerce, services) versus 64.3 percent in LAC (Panel A, Figure 1.6). - Between 2010 and 2019, Honduras’ share employed in low-productivity sectors decreased by 2.5 percentage points (pp), with increases mainly in medium-productivity sectors and to a lesser extent high-productivity sectors. - Honduras has the lowest share of employment in high-productivity sectors in the region. - Output per hour worked in Honduras has remained almost unchanged between 2010 and 2023 and is the lowest among countries in the region (ILO modeled estimates). ### Trade, exports, and employment structure - Employment by sector (2010–2023): - Largest employment shares: primary sector (agriculture, livestock, fishing), followed by trade and services, then manufacturing. - Approximately 60 percent of employed population works in primary and trade/services; manufacturing accounts for approximately 13 percent of employment. - GDP value added: - Manufacturing, trade, and financial intermediation account for the largest shares of value added. - Financial intermediation’s share of value added has increased, while employing less than 5 percent of the working population. - Export composition: - Little diversification: coffee products and insulating wires and cables have remained main export products over the last decade. ### Remittances and migration - Remittances: - Remittances represented 26.1 percent of GDP in Honduras in 2023, compared with a Latin American average of 2.4 percent. - Panel evidence shows a positive association between remittances as a percentage of GDP and poverty incidence across Latin American countries (interpretation as association, not causation). - Migration statistics and demographics: - In 2020, approximately 985,000 Hondurans resided abroad (United Nations data). - United States Census Bureau estimates for 2022: 65 percent of Honduran-origin population abroad were between 18 and 60 years old, with a median age of 26.2 years. - Net migration rate in Honduras in 2023: -1.32 per 1,000 inhabitants. - INE 2023 National Survey on Migration and Remittances: common reasons for migration include being unemployed (38.6%), seeking better employment (59.8%), and low work income (41.2%); family reunification (9.9%) and violence/security (7%) are other factors. - IOM: Honduras was the sixth country with the highest number of asylum applications globally in 2021 with 59,800 applications (13 percent increase compared to 2020). ### Public sector income, debt, and social spending - Public debt and fiscal stance: - Total public debt increased by 17.4 percentage points (pp) relative to 2010; this increase is below the regional average increase of 25.6 pp. - Total public debt in 2023: 48 percent of GDP (lower than most Latin American countries). - Fiscal policy has been characterized as acyclical, limiting capacity to cope with external shocks. - Key fiscal challenges: high public sector payroll and the deficit of the National Electric Energy Company (ENEE), constraining resources for productive investment and poverty-reduction policies. - Fiscal balances and poverty: - The central government primary balance as a percentage of GDP shows a positive relationship with poverty (Panel C, Figure 1.8). - Weak correlation between public debt as a percentage of GDP and incidence of poverty across countries in the region (Panel D, Figure 1.8). - Public social spending levels and trends: - Public social spending in Honduras has been much lower than the regional average and is variable and dispersed. - Between 2013 and 2019, public social spending as a percentage of GDP in Honduras trended downward, contrasting with upward trajectories in the rest of the region. - Health spending: - Post-pandemic public health spending in Honduras: 2.7 percent of GDP; regional figure: 2.6 percent of GDP (years following the pandemic). - Between 2010 and 2019 Honduras experienced a downward trend in health spending as a percentage of GDP, while the region’s trend was upward. - Education spending: - Education public spending in 2022: 4.5 percent of GDP (Honduras) versus 3.7 percent (Latin America). - Education’s share of the national budget: declined from 32.3 percent in 2010 to 16.4 percent in 2024. - Between 2010 and 2022, social spending on education declined by 2.8 percentage points. - More than 90 percent of the executed education budget is spent on personal services (salaries), non-personal services, and materials and supplies (OPCA, 2024). - Social protection: - Public spending on social protection in Honduras is less than 1 percent of GDP. - In 2022, public social protection spending: 0.5 percent of GDP (Honduras) versus 4.3 percent of GDP (regional average). - Overall public social spending comparisons: - Among Latin American countries, Honduras and Guatemala have the lowest public social spending as a percentage of GDP (7.8 and 7.7 percent respectively). - Public social spending per capita in Honduras in 2022: $197.9 (constant 2010 prices), the lowest in the region and equivalent to 18 percent of the average social spending per capita in Latin America. ### Key implications identified in the diagnosis - Structural constraints to inclusive growth: - Low and unequal per capita income, concentration of resources, and high poverty incidence. - Low productivity and a large share of employment in low-productivity and informal sectors. - Limited diversification of exports and insufficient job creation in productive, high-productivity sectors. - Heavy reliance on remittances linked to persistent poverty and migration as a coping strategy. - Fiscal and social policy constraints: - Vulnerable public finances, acyclical fiscal policy, and binding sectoral fiscal pressures (public payroll, ENEE deficit) limit capacity to increase and align social spending with priorities. - Public social spending levels—particularly on social protection and health earlier in the decade—are low relative to the region, with social protection forming the largest gap. - Education spending remains above the regional average in GDP terms but has declined as a share of the national budget and faces efficiency/concentration issues in spending composition. - Development priorities suggested by the diagnosis (implicit in the analysis): - Improve competitiveness and productivity by creating jobs in productive sectors and improving human capital. - Strengthen fiscal resilience and reorient public spending toward priority social and productive investments. - Address vulnerabilities to natural disasters and other external shocks to protect development gains and reduce poverty. *Source: 1. Diagnosis of the current situation — 1hndea2026002* ### 14.7 percent to 11.7 percent). ### 1hndea2026002 - 14.7 percent to 11.7 percent). ### Fiscal priorities, public spending, and social investment - Data from CEPALSTAT for 2023: average spending on education and health in Latin America was 3.7 and 2.5 percent of GDP, respectively; this falls short of the recommendation to allocate at least 4 to 6 percent of GDP or at least 15 to 20 percent of public spending to the education sector (Education 2030 Framework for Action, UNESCO, 2015). - The Poverty Reduction Strategy (PRS) shows a reduction in planned public spending on education, research, culture, and recreational activities from 5 percent of GDP in 2019 to 4.6 percent in 2020; health changed from 2.5 to 2.4 percent of GDP between 2019 and 2020; social protection budget went from 0.5 percent of GDP in 2019 to 0.6 percent of GDP in 2020. - Although the PRS regulatory framework establishes that external debt relief resources must be allocated exclusively to PRS programs and projects, there was a decline in investments related to children, childhood, and adolescents between 2014 and 2024. - Fiscal policy in Honduras has a smaller redistributive effect compared to other Latin American countries (including El Salvador, Nicaragua, and Costa Rica); the tax system contributes to the increase in poverty because the burden of indirect taxes on the poorest households is not offset by social transfers. ### Impact of natural disasters and climate vulnerability - Honduras is highly vulnerable to natural phenomena; GHG emissions (excluding land use, land-use change, and forestry) in 2021 reached 22 MtCO2e, representing 0.6 percent of total global emissions and equivalent to 2.16 tCO2e per capita. Comparative averages: LAC 4.95 tCO2e per capita; world 6.11 tCO2e per capita. - Hurricane Mitch (1998) reported impacts in the National Reconstruction Plan: 5,657 deaths, 8,058 people legally considered missing, 12,272 injured, and 1.5 million homeless. ECLAC estimated total damage at US$3.794 billion—representing nearly 70 percent of GDP—and replacement cost estimated to exceed US$5 billion (almost 100 percent of GDP). - World Bank (2023) estimates losses from tropical storms Eta and Iota in 2020 at USD 1.8 billion, equivalent to 7.5 percent of 2019 GDP; these storms caused large agricultural losses and increased food insecurity. - Correlations: Guatemala and Honduras show a positive relationship between the number of disasters and poverty. Honduras and Guatemala rank highest in the region on the IMF staff-adjusted INFORM (Climate Risk Management) Index and in the percentage of the population living in poverty. - 2024 General Budget of the Republic allocated 4.8 percent of its total budget to climate/change-related items: L. 19,545.3 million of the total L. 407,137.5 million. Allocation by sector: energy 57.2 percent of the climate-related total; land use planning, infrastructure and housing 26.9 percent; risk management 6.3 percent. - Given Honduras's high exposure and low coverage of social protection programs for disaster response, Honduras is one of the most vulnerable countries to climate shocks in the region. ### Demographic transition and policy implications - The demographic dependency ratio indicates that between 2015 and 2045 Honduras will be in a productive age period: an increase in the working-age population and a lower proportion of dependents (children and the elderly). - Population projections predict that starting in 2050 the percentage of the working-age population will decline while the growth rate of the population aged 60 and over will increase. - Policy implications recommended in the text: establish actions to increase productivity and develop human capital in health, nutrition, social protection, and education; implement employment policies that facilitate job placement; and build a care system with cost-effective care models and programs for older adults and people with disabilities. ### Poverty and inequality: levels, recent dynamics, and regional comparisons - 2023 EPHPM data for Honduras: 69.6 percent of the population lives in poverty (Poverty Line method defined as the cost of the Basic Food Basket) and 46.7 percent lives in extreme poverty. - Changes over time (national lines, EPHPM): - Between 2014 and 2019: poverty fell by 3.5 pp; extreme poverty fell by 2.9 pp. - Between 2019 and 2021 (post-COVID-19): poverty increased by 13.1 pp; extreme poverty increased by 16.4 pp. - Between 2021 and 2023: poverty fell by 8.2 pp; extreme poverty fell by 11.4 pp. - Inequality (Gini coefficient) has remained relatively high and constant between 2014 and 2023. - Using the international poverty line of $6.85 per day (2017 PPP): - In 2019 Honduras's poverty incidence rate was 49.6 percent, compared to the LAC average of 28.1 percent and Central America at 36.7 percent. - Between 2001 and 2019: LAC reduced poverty incidence by 22 pp; Central America by 12.3 pp; Honduras by 7 pp. - Decomposition of changes in poverty (2012-2022) with the $6.85 per day line: - LAC’s reduction in poverty is associated with changes of similar magnitude from economic growth and income distribution. - In Honduras, economic growth had a regressive effect (increasing poverty), while redistribution contributed to poverty reduction; the net effect showed economic growth outweighed redistribution, producing an increase in poverty. Argentina and Honduras registered increases in the poverty rate explained by the regressive effect of change in average household income. *Source: https://www.imf.org/-/media/files/publications/cr/2026/english/1hndea2026002.pdf* ### 46.7 percent will live in extreme poverty. Between 2019 and 2023, poverty increased by 4.9 ### 1hndea2026002 - 46.7 percent will live in extreme poverty. Between 2019 and 2023, poverty increased by 4.9 ### Poverty trends (2019–2023) - 46.7 percent will live in extreme poverty. - Between 2019 and 2023: - Poverty increased by 4.9 percentage points. - Extreme poverty increased by 5 percentage points. - The increase in poverty is largely explained by the rise in the incidence of poverty in urban areas: - Urban poverty increased by 10.8 percentage points between 2019 and 2023. - Rural poverty decreased by 2.1 percentage points between 2019 and 2023. - Urban extreme poverty increased by 11.5 percentage points between 2019 and 2023. - Rural extreme poverty incidence decreased by 2.7 percentage points between 2019 and 2023. - Contextual driver: the health and economic crisis generated a significant drop in employment—mainly in urban areas due to lockdown policies—in a highly informal economy, leading to decreased income and private consumption. ### Urban–rural and demographic breakdowns - By area (population-level figures): - Rural: 70.1 percent living in poverty; 58.8 percent living in extreme poverty. - Urban: 69.3 percent living in poverty; 36.9 percent living in extreme poverty. - By gender (2023): - Men: 68.5 percent living in poverty. - Women: 70.6 percent living in poverty. - Between 2019 and 2023, gender changes: - Percentage of women living in poverty increased by 6.4 percentage points. - Percentage of men living in poverty increased by 3.2 percentage points. - Percentage of women in extreme poverty increased by 6.7 percentage points. - Percentage of men in extreme poverty increased by 3.1 percentage points. ### Households, headship, and multidimensional poverty (2023) - Household incidence (2023): - 64.1 percent of households lived below the poverty line. - 41.5 percent of households lived below the extreme poverty line. - Between 2019 and 2023, the percentage of households in both poverty and extreme poverty increased by 4.8 percentage points. - By household head (2023 vs. 2019): - Households headed by women: - 65.9 percent lived in poverty in 2023 (increase of 7.4 pp vs. 2019). - 41.3 percent lived in extreme poverty in 2023 (increase of 8.7 pp vs. 2019). - Households headed by men: - 63 percent lived in poverty in 2023. - 41.6 percent lived in extreme poverty in 2023. - Increases were less pronounced than for female-headed households. - By area (household-level, 2023): - Rural households: 64.1 percent below the poverty line; 52.3 percent in extreme poverty. - Urban households: 64.0 percent below the poverty line; 33.5 percent in extreme poverty. - Multidimensional Poverty Index (2023): - 83.5 percent of the rural population lives in multidimensional poverty. - 49.2 percent of the urban population lives in multidimensional poverty. ### Territorial concentration and inequality - A concentration of poverty is observed at the territorial level, exemplified by gaps in basic services and territorial indicators, which contributes to stagnation of well-being, inhibits productivity, limits participation in economic growth, further concentrates poverty, and drives migration. ### Income distribution (2019–2023) - Income concentration by decile (2023): - The tenth decile concentrated 34.8 percent of wealth in 2023 (a reduction of 1.7 pp compared to 2019). - The poorest decile decreased by 0.4 pp in 2023 compared to 2001. - The reduction in wealth concentration of the richest decile is associated with increases in deciles 8 and 9, not with redistributive effects in low-income deciles. - Top income share: - The richest 1 percent of the population received approximately 30 percent of total income, making Honduras one of the most unequal countries in the world. ### Health, nutrition, and social protection — overview - The section analyzes prenatal, early childhood, childhood and adolescence, and youth and adulthood stages. - Honduras shows mixed outcomes: significant progress in prenatal and early childhood stages, but challenges in tuberculosis incidence, access to safe water and sanitation, teenage pregnancies, undernourishment, and immunization coverage declines. ### Prenatal stage indicators - Maternal mortality ratio: - Honduras: 71.8 per 100,000 live births in 2020. - LAC average: 87.6 in 2020. - Central America average: 64.5 in 2020. - Prenatal care coverage: - 88.3 percent in Honduras in 2019. - Latin American average: 87.6 percent in 2019. - Between 2012 and 2019, Honduras registered a decrease in prenatal care coverage of 0.6 percentage points (vs. 0.3 pp reduction in LAC). - Births attended by skilled personnel: - Honduras: 94.1 percent in 2019. - LAC average: 94.2 percent in 2019. - Honduras registered an increase of 11.3 percentage points between 2012 and 2019 (vs. 1.4 pp for LAC). - 2019 MICS gaps: poorest quintile 83 percent; richest quintile 100 percent. - Neonatal mortality rate: - Honduras: 9.4 per 1,000 live births in 2021. - LAC: 9.3 per 1,000 in 2021. - Central America average: 8.5 in 2021. - Honduras decline between 2011 and 2021: 4.1 percentage points (vs. 1.6 pp for the region). - Subnational variation: neonatal mortality rose to 15 in rural areas and up to 18 and 24 in the departments of Comayagua and Intibuca. ### Early childhood indicators - Stunting (moderate or severe) among children under 5: - Honduras: 17.5 percent in 2022. - LAC average: 11.5 percent in 2022. - Change 2012–2022: Honduras decrease of 4.5 pp vs. LAC decrease of 1.2 pp. - Prevalence of malnutrition (children under 5 years): - Honduras: 7.1 percent. - LAC: 1.8 percent. - Between 2012 and 2019, Honduras showed no significant change; LAC registered a reduction of 0.4 pp. - Subnational: Low Weight for Age indicator 8.5 in rural areas vs. 5.1 in urban areas; >13 in Copán and Lempira. - DPT immunization (children 12–23 months): - Honduras: 78 percent in 2022. - LAC average: 78.9 percent in 2022. - Both Honduras and LAC showed decreases of approximately 10 percentage points between 2012 and 2022. - Declines linked to health system deficiencies and public health emergencies (Zika, chikungunya, COVID-19). - Infant mortality (under 5): - Projected 13.8 deaths per 1,000 live births in Honduras in 2022. - LAC: 13.5 per 1,000 in 2022. - Honduras decline 2015–2022: 3.7 percentage points vs. 2.2 pp in LAC. ### Adolescence and adulthood indicators - Adolescent fertility: - Honduras: 97.1 births per 1,000 women aged 15–19 in 2018. - Regional average: 54.8. - Change 2010–2018: decrease of 18 percentage points in Honduras vs. 3.5 pp decrease in LAC (2010–2020). - Rural adolescent fertility: 115. - Urban adolescent fertility: 77. - By education: reaches 236 among women with basic education 1–3 and 13 among those with higher education. - By wealth: 145 among poorest quintile adolescents vs. 35 among highest wealth quintile adolescents. - High rates in departments: Colon (124), Intibuca (122), Gracias a Dios (125), Olancho (147). - Unmet need for family planning: - Honduras: 10.9 percent. - Latin American region: 9.9 percent. - Change 2011–2023: decrease of 1.8 pp in Honduras vs. 1.3 pp for the rest of the countries. - Undernourishment: - Honduras: 18.7 percent in 2021. - LAC: 6.5 percent in 2022. - Change 2011–2021: Honduras increase of 4.6 percentage points vs. 0.8 pp in LAC. - Chronic malnutrition: national 19 percent; rural 23 percent; urban 12 percent. - Malaria incidence: - Honduras: 0.2 cases per 1,000 inhabitants in 2021. - LAC: 3.9 cases per 1,000 inhabitants in 2021. - Between 2011 and 2021, Honduras almost completely reduced malaria incidence while LAC registered a 2 percentage point increase. - Tuberculosis incidence: - Honduras: 30 cases per 100,000 inhabitants in 2021. - Latin American average: 45 cases per 100,000 inhabitants in 2021. - Change 2011–2021: Honduras decrease of 18 points vs. regional increase of 2 points. - Access to improved sanitation (drainage): - Honduras: 52.6 percent in 2021. - LAC: 49.2 percent in 2021. - Change 2012–2020: Honduras increase of 3.1 percentage points vs. LAC increase of 10.3 percentage points. - Access to improved drinking water sources: - Honduras: significant increase of 7.9 percentage points compared to 2012 (figure reported in source). *Source: Estimates and figures as presented in the provided IMF content unit.* ### 65.2 percent in 2022, which is lower than the LAC average of 75.2 percent. ### 1hndea2026002 - 65.2 percent in 2022, which is lower than the LAC average of 75.2 percent. ### Human resources and health infrastructure - Honduras had a density of health personnel of 4.9 per 10,000 inhabitants in 2020, while the regional average was 24.1 in 2021 (CEPALSTAT). - Entire municipalities have just one doctor; more than half of the population cannot access specialist consultations, and those who do face waits of several months. - Rural health network deficiencies: - Centers without electricity or water. - More than 70 percent of facilities in need of repair or reconstruction. - Infrastructure need: expand hospital network nationwide and restore existing infrastructure, described as being in precarious condition. ### Mental health - In 2019, Honduras had 0.66 psychiatrists per 100,000 inhabitants (CHEPES, 2021). - Mental health spending represented 1.75 percent of the government's health budget in 2019: - 88 percent of that spending was allocated to three psychiatric hospitals. - 12 percent allocated to other mental health services. - In 2019, fewer than 50 psychologists worked in the public sector, equivalent to 0.5 psychologists per 100,000 inhabitants. - Pandemic impact and prevalence: - COVID-19 caused a considerable increase in people with new mental health conditions. - An estimated 30 percent of Hondurans suffered psychiatric disorders as a result of the pandemic. - Drivers aggravating mental health problems: loss of loved ones, financial problems, hunger, domestic violence, uncertainty, social stigmatization. - Resource shortfall: number of trained mental health professionals remains insufficient. ### Violence against women - Femicide rates (selected highlights): - Honduras femicide rate in 2015: 7.7 per 100,000 women. - Honduras femicide rate in 2022: 6 per 100,000 women — the highest in the region for that indicator in 2022. - El Salvador femicide rate in 2015: 8.4 per 100,000 women. - ENESVMN 2022 survey findings: - 1.8 million girls and women aged 15 and over indicated having experienced violence at some point in their lives (52.8 percent). - 23.2 percent indicated they were victims of violence in the 12 months prior to the survey. - Types of violence reported (women aged 15 and over): - Psychological violence: 39.5 percent. - Property violence: 26.4 percent. - Sexual violence: 23.7 percent. - Physical violence: 18.2 percent. - Main settings where violence occurred during lifetime: - Public sphere: 40.1 percent. - Workplace: 31.9 percent. - Community sphere: 20.9 percent. - Private sphere: 32.3 percent (main perpetrator: current partner). - Probit regression (women aged 15 to 64) — marginal effects (selected): - Rural residence: associated with lower probability of gender-based violence in last 12 months (e.g., Gender violence in 12M: -0.0629***). - Married or cohabiting women: on average 19 percentage points more likely to have been victims of intimate partner violence in the past 12 months (marginal effect reported for "House or free union (CB: Single)" shows 0.1966*** for Domestic violence in 12M). - History of childhood gender-based violence: positive and statistically significant association with adult victimization (e.g., Gender violence in 12M: 0.1907***). - Age effects: older age groups show negative and statistically significant associations with probability of being a victim relative to 15–24 (e.g., 55 to 64 years: -0.3131*** for Gender violence in 12M). - Observations by specification: 2,778; 1,173; 818; 1,120; 1,623. Pseudo R2 values: 0.0642, 0.0410, 0.0866, 0.0896, 0.178. - 2024 Budget Project gender-related allocations: - Total allocated to gender-related activities, programs, and projects: L. 1,444,756,603 million. - Red Solidaria: 681,701,367 lempiras (47.5 percent of the total). - Secretariat for Women: 153,422,789 lempiras. - National Directorate of the Ciudad Mujer Program: 133,720,447 lempiras. ### Education — public spending and coverage - Public spending on education, total (% of GDP): - Honduras: 2019 = 5.93; 2020 = 5.98; 2021 = 5.81; 2022 = 4.44. - Latin America and the Caribbean: 2019 = 4.60; 2020 = 4.52; 2021 = 4.17; 2022 = 3.79. - Trend: Honduras allocated a higher percentage of GDP to education than the LAC average, but trend in Honduras is downward from 5.93 in 2019 to 4.44 in 2022. ### School attendance rates (selected Honduras statistics and comparisons) - 4–5 years old: - Honduras attendance rate in 2023: 51.5 percent. - Latin American average in 2023: 77.4 percent. - Change: between 2019 and 2023, attendance for this cohort decreased by 3.4 percentage points. - 6–11 years old (primary age cohort): - Honduras in 2023: 94.6 percent. - Latin America in 2023: 98.3 percent. - Honduras experienced a 13.7 percentage point drop between 2019 and 2021 for this cohort; recovered by 2023 to pre-pandemic level but remains one of the lowest in Latin America. - 12–14 years old: - Honduras in 2023: 73.8 percent. - Latin America in 2023: 96.3 percent. - Post-pandemic drop was 11.3 percentage points. - 15–17 years old: - 2023 gap between Honduras and Latin America: 32.6 percentage points. - Honduras attendance is 2.2 percentage points below the 2019 level; drop of 6.8 percentage points between 2019 and 2021. - 18–23 years old: - Honduras in 2023: 22.2 percent. - This is 18.8 percentage points below the regional average. - Attendance fell by 3 percentage points during the COVID-19 pandemic and remained 2.2 percentage points below 2019 level in 2023. - Gender and residence disaggregation: - 4–5 cohort: no gender gap in 2023; higher rate observed in rural areas compared to urban areas. - 6–11 cohort in 2023: gender gap of 3.7 percentage points in favor of girls. - 12–14 cohort in 2023: girls 74.2 percent, boys 72.6 percent; rural attendance 26 percentage points lower than urban. - 15–17 cohort: gender gap increased by 9.2 percentage points in favor of women; urban-rural gap widened to 34.3 percentage points. - By household per capita income quintile: - Largest inequalities in attendance rates for ages 12–17 and 18–23: gaps of 26.4 percentage points and 22.2 percentage points between richest and poorest quintiles, respectively. - For ages 6–11, attendance rates are similar across income quintiles. ### Education quality and infrastructure - ERCE 2019 scores for Honduras: - 3rd grade: Reading = 675; Mathematics = 702. - 6th grade: Reading = 661; Mathematics = 682; Science = 674. - Regional (AL Average) scores: 3rd grade Reading = 697; Mathematics = 698; 6th grade Reading = 694; Mathematics = 697; Science = 697. - Honduras ranks midway among 16 countries in Reading and Mathematics scores. - 3rd grade Reading below regional average (675 vs. 697); 3rd grade Mathematics slightly above (702 vs. 698). - Educational infrastructure conditions: - Prior to 2020, seven out of ten educational establishments had deficient facilities; up to 90 percent in some areas. - By early 2023, 12,000 schools were identified as requiring urgent intervention. - National averages from SIPLIEL: - National average infrastructure index: 54.9; hydrosanitary: 15.7; furniture: 38.2; social threats: 79.1; Precariousness indicator: 44.6. - Departments with lowest precariousness indicator values include Gracias a Dios (29.0) and Olancho (39.0); national average precariousness indicator = 44.6. - Coordination for reconstruction: Ministry of Education (SEDUC), Solidarity Network, and Honduran Social Investment Fund (FHIS) coordinating reconstruction and construction of educational spaces. ### Transition to the labor market and human capital - Young people not studying and economically inactive (15–24) — Honduras: - 2019 = 22.8; 2021 = 25.8; 2023 = 26.9 (total). - Men in 2023: 14.3; Women in 2023: 39.4. - Honduras, El Salvador, and Guatemala are countries in the region with more than 20 percent of young people in this condition. - Disaggregation by age, gender, and residence shows women and rural residents have the highest rates of young people neither studying nor economically active; people aged 20–24 and 25–29 in rural areas registered the greatest increase between 2019 and 2023. - Average years of education for the working-age population: - Youngest generation aged 25 to 34 in Honduras: 8.6 years of schooling. - Regional average for 25 to 34: 11.1 years of education. - Honduras and Guatemala have the fewest average years of education across age groups in the region. - Consequences: - Low attendance from upper basic education onward and poor educational quality imply lower human capital accumulation. - Honduras exhibits high private returns to tertiary and upper secondary education relative to lower secondary or less, potentially reflecting low higher-level coverage. - A noted downward trend in private returns to education over the last decade, similar to regional trends. ### Key policy-relevant observations and implications (as presented in source) - Health sector: - Urgent need to expand hospital network nationwide and restore existing infrastructure. - Address shortages in health personnel density and regional inequalities in access to specialized services. - Mental health: - Scale up training and numbers of mental health professionals. - Rebalance mental health spending away from concentration in psychiatric hospitals toward broader services and community-level care. - Gender-based violence: - Strengthen prevention, protection, and support services given high femicide rate and pervasive forms of violence (psychological, property, sexual, physical). - Ensure adequate financing and institutional capacity for programs receiving budget allocations (e.g., Red Solidaria, Secretariat for Women, Ciudad Mujer). - Education: - Reverse downward trend in public spending on education as a share of GDP and prioritize investments to recover and improve attendance, especially for ages 12–23. - Prioritize reconstruction and equipping of school infrastructure (12,000 schools identified for urgent intervention). - Address regional, urban-rural, and income-based disparities in attendance and completion rates. - Strengthen policies to reduce the share of young people neither studying nor economically active, with gender- and area-targeted interventions. - Review CCT design and amounts, regularity, predictability, and activation of co-responsibilities to improve retention (source notes suggested increases to L 7,000 and L 10,000 annually for specific cycles as context for consideration). *Prepared from chapter content in the provided IMF PDF (file: 1hndea2026002 - 65.2 percent in 2022, which is lower than the LAC average of 75.2 percent.).* ### 55.9 percent, 6.6 pp below the regional average (62.5 percent) and 7.4 pp below the pre-pandemic ### 1hndea2026002 - 55.9 percent, 6.6 pp below the regional average (62.5 percent) and 7.4 pp below the pre-pandemic ### Labor force participation and unemployment - Participation rate (population aged 15 and over) for Honduras: - 2019: 63.3 percent (Men 83.7; Women 45.6) - 2021: 60.7 percent (Men 74.3; Women 48.7) - 2023: 55.9 percent (Men 74.6; Women 40.0) - 55.9 percent is 6.6 pp below the Latin America regional average (62.5 percent) and 7.4 pp below Honduras' 2019 level. - Unemployment rate, Honduras: - 2019: 5.9 percent (Men 4.4; Women 8.3) - 2021: 8.6 percent (Men 7.0; Women 10.7) - 2023: 6.4 percent (Men 5.0; Women 8.8) - Gender gap in participation: 34.6 pp in favor of men; gap narrowed between 2019 and 2023 largely because male participation fell more and has not recovered to 2019 levels. - Age and education patterns: - Lowest participation rates: ages 15–24, then 65 and over. - Largest declines since 2019: people with no schooling and those with upper secondary education (10–12 years). ### Employment rates, gender gaps, and geographic patterns - Employment rate (employed population aged 15 and over relative to working-age population): - 2023 national: 52.3 percent, which is 7.3 percentage points below the 2019 level. - 2023 by gender: Women 36.5 percent; Men 70.6 percent. - Gender gap in employment rate narrowed from 48.2 pp in 2019 to 34.4 pp in 2023. - Rural vs urban: - Rural employment rate in 2023: 10.1 pp below 2019 level. - Urban employment rate fell by 5.7 pp between 2021 and 2023. - Age groups: cohorts aged 25 and over recorded the sharpest employment declines between 2019 and 2023. - Education: people with no schooling and those with upper secondary education recorded the most negative changes in employment rate between 2019 and 2023. ### Economic inactivity and reasons - Percentage of population aged 15 and over economically inactive increased by 7.4 percentage points between 2019 and 2023. - Largest increases in inactivity: men, rural residents, people with high school education or less. - In 2023, 90 percent of economically inactive people aged 15–60 indicated they neither worked nor sought work in the four weeks prior because they “did not want to, could not, or did not need to work.” - Of that 90 percent, 22.6 percent lived in remittance-receiving households. - By gender, 92.1 percent of women and 85.5 percent of men cited that reason. - In 2023, 60 percent of women aged 15 and over were economically inactive. - Time-use: 2009 survey estimated women averaged 15.5 hours/week on unpaid work; men averaged 3 hours/week. ### Remittances and labor market marginal effects (probit marginal effects) - Specification: sample ages 15–64; models for 2019 and 2023; dependent variables = working or participating in labor market. - Residing in remittance-receiving household: - 2019: associated with a decrease of 5.2 percentage points in probability of working and 4.5 percentage points in probability of participating in the labor market. - 2023: associated with a decrease of 7.4 percentage points in probability of working and 6.3 percentage points in probability of participating in the labor market. - Table 1.10 reports coefficients with standard errors and significance (robust SEs; ** p<0.05; *** p<0.01). - Remittances as percentage of total household monetary income: - Negative and statistically significant association with likelihood of working and participating. - Effect intensified in 2023 compared to 2019. ### Formality and quality of employment - Formal employment defined as affiliation and contribution to a pension system. - Honduras has the lowest formal employment rates across income distribution in Latin America (2019): - Quintile 1: 0.6 percent contributing to a pension system. - Quintile 2: 2.6 percent - Quintile 3: 7.3 percent - Quintile 4: 14.9 percent - Quintile 5: 27.3 percent ### Sectoral composition and occupational structure (2019–2023) - Sectoral shifts: - Primary sector (agriculture, hunting, forestry, fishing) registered a 6 percentage point drop between 2019 and 2023. - 2023 distribution (employed population aged 15 and over): Trade and services 27 percent; Primary sector 23 percent; Social and community services 21 percent. - By gender and area (selected 2019 vs 2023): - Primary sector employment: - Men: 2019 = 42%; 2023 = 34% - Women: 2019 = 8%; 2023 = 6% - Rural: 2019 = 57%; 2023 = 49% - Urban: 2019 = 7%; 2023 = 5% - Trade and services: - Women: 2019 = 37%; 2023 = 42% - Urban: 2019 = 30%; 2023 = 33% - Occupational type changes (2019 → 2023): - Self-employed share fell by 10 percentage points overall. - Private employee share increased (evidence of restructuring toward private employment). - Distribution by group (Table 1.13): - Self-employed: - Men: 2019 = 39%; 2023 = 27% - Women: 2019 = 44%; 2023 = 39% - Rural: 2019 = 47%; 2023 = 35% - Urban: 2019 = 36%; 2023 = 29% - Private employee: - Men: 2019 = 47%; 2023 = 61% - Women: 2019 = 28%; 2023 = 36% - Rural: 2019 = 32%; 2023 = 50% - Urban: 2019 = 46%; 2023 = 53% ### Wages and wage dispersion - Average real wage (employed population aged 15 and over): - Declined by 14 percent between 2019 and 2021; returned to previous level in 2023. - Wage contraction in 2021 greatest in urban areas and for employed men. - 2023 wage differentials: - Highest average incomes: professional scientific and intellectual workers; directors and managers. - Lower-than-average incomes: service and sales workers; farmers; elementary occupations. - By industry: workers in financial and insurance establishments earn 2.1 times the national average; primary sector has the lowest salaries. - Positive correlation between salary and educational level. ### Agrifood sector: structure, challenges, and data gaps - Agriculture contribution: - Prior to COVID-19: averaged 13 percent of real GDP; share of exports ~35 percent; similar employment share. - 2023: sector represented 12 percent of real GDP. - Farm structure: - 71 percent of farms < 5 hectares; 25 percent between 5 and 50 hectares. - Average household farm size: 1.47 hectares. - Key constraints: - Access to water, land, capital, technical assistance, inclusive financing, grain storage, irrigation, marketing. - High production costs, lack of updated agricultural data (last National Agricultural Census: 1993), absence of integrated agricultural-livestock-climate-agro-commercial information system. - Logistics challenges: excessive maritime logistics costs, insufficient cargo and air transport infrastructure, container shortages, slow transit for perishables, deteriorating productive road network. - Positive observed effect: growth in production of bioinputs, especially organic fertilizers. ### Housing, basic services, and sanitation - Housing stock (June 2023 EPHPM): - 2,567,936 dwellings; 2,581,382 households; 9,744,744 people; average household size nationwide 3.8 people. - Urban households: 58 percent; Rural: 42 percent. - Urban average household size: 3.6; Rural: 4.0. - Housing access and demand: - 2019–2023: 16.6 percent growth in acquisition of fully paid homes (increase of 114,000 homes). - 23.3 percent growth in demand for rental housing. - 2020 housing shortage: 1,366,691 housing units (38 percent new homes; 62 percent need improvements). - Overcrowding: - Increase of 12,911 overcrowded households from 2019 to 2023. - By June 2023, ~7.8 percent of households overcrowded. - Electricity access: - National coverage: ~88 percent of homes. - Urban coverage: 94.6 percent; Rural: 79 percent. - Coverage by urban domains: Central District 99.4; San Pedro Sula 93.1; Rest of Urban Area 93.4. - 97,929 homes in the lowest-income quintile lack electricity. - Urban richest quintile coverage: 95 percent; Urban poorest quintile: 93.6 percent. - Rural first quintile coverage: 69.4 percent; Rural fifth quintile: 84.8 percent. - Garbage collection: - Only 46.9 percent of households have public home collection services. - Urban coverage: 75 percent (San Pedro Sula 90.6; Central District 86.4; other urban areas 68.2). - Rural coverage: 8.2 percent. - Common alternatives: burning garbage (40.8 percent overall; 79 percent in rural areas), disposing in containers (3.6 percent). ### Sports, recreation, culture, and heritage - Sports: - Investment in sports infrastructure in 2023: 433,151,132 Lempiras, representing 76.02 percent of CONDEPOR executed budget. - Female participation in sports increased to 42 percent in 2023. - Technical personnel: 34 on-site technicians serve a monthly average of 11,500 people. - Challenges: limited infrastructure (concentration in urban areas), deteriorating facilities (e.g., Walentay Gymnasium, José de la Paz Herrera National Stadium), no Sports Law, no sports-only scholarships, low inclusion of women, people with disabilities, older adults. - Homicide context: Honduras reduced homicide rate by 17 percent between 2022 and 2023 but remains highest in Central America at 31.3 homicides per 100,000 inhabitants. - Culture and heritage: - Constitutional cultural rights insufficiently implemented; declining budget and institutional attention. - Public library network reduced from 137 (2008) to 15 (2022); cultural centers decreased from 50 to 12 (2008–2022). - Lack of investment in protection and revitalization of Indigenous and Afro-descendant cultural heritage. - Cultural institutions for training (dance, music, performing arts) operate with inadequate resources and trained personnel. ### Vulnerable groups: children and older adults - Childhood (2023): - Poverty among 0–17 years: 79 percent; extreme poverty: 55.8 percent. - Child labor (EPHPM 2023) — percentage reporting paid work: - Ages 5–9: 0.3 percent - Ages 10–14: 6.4 percent - Ages 15–17: 25.4 percent (table shows 25.5 percent in narrative; table totals 25.4 percent) - By area: - Urban: 5–9 = 0.2%; 10–14 = 3.1%; 15–17 = 18.1% - Rural: 5–9 = 0.3%; 10–14 = 10.0%; 15–17 = 34.3% - By gender: - Women: 5–9 = 0.2%; 10–14 = 2.6%; 15–17 = 11.4% - Men: 5–9 = 0.4%; 10–14 = 10.1%; 15–17 = 38.8% - By education of head of household: - Primary: 5–9 = 83.2% (note: table shows distribution across education categories for child labor characteristics) - Violence against children: VAC survey and other sources show high exposure to community and household violence (nearly 33 percent witnessed violent acts outside family; ~12 percent witnessed physical assaults against mother/stepmother; similar share witnessed physical violence against siblings). - COVID-19 effects: exacerbated domestic violence, school dropout, and social exclusion. - Older adults (65+): - In the cohort, 2.7 percent reported receiving pension or retirement income in the three months prior to the survey (table reference cutoff in supplied content). *Source: https://www.imf.org/-/media/files/publications/cr/2026/english/1hndea2026002.pdf* ### 2.4 percent reported being beneficiaries of the Bono Oro (Gold Bonus) for older adults. By ### 1hndea2026002 - 2.4 percent reported being beneficiaries of the Bono Oro (Gold Bonus) for older adults. By ### Social protection and older adults - 2.4 percent reported being beneficiaries of the Bono Oro (Gold Bonus) for older adults. - By geographic area: - Central District: 8.7% receive a pension or retirement; 0.9% receive the Gold Bonus. - San Pedro Sula: 6.9% receive a pension or retirement; 5.3% receive the Gold Bonus. - Urban: 4.5% receive a pension or retirement; 2.1% receive the Gold Bonus. - Urban Remains: 2.2% receive a pension or retirement; 1.8% receive the Gold Bonus. - Rural: 0.4% receive a pension or retirement; 2.8% receive the Gold Bonus. - By gender (population aged 65 and over): - Women: 2.0% receive a pension or retirement; 3.1% receive the Gold Bonus. - Man: 3.7% receive a pension or retirement; 1.5% receive the Gold Bonus. - By income quintile (population aged 65 and over): - Quintile 1: 1.2% receive a pension or retirement; 3.3% receive the Gold Bonus. - Quintile 2: 3.0% receive a pension or retirement; 1.5% receive the Gold Bonus. - Quintile 3: 2.8% receive a pension or retirement; 3.4% receive the Gold Bonus. - Quintile 4: 2.6% receive a pension or retirement; 2.9% receive the Gold Bonus. - Quintile 5: 4.3% receive a pension or retirement; 1.6% receive the Gold Bonus. - Total: 2.7% receive a pension or retirement; 2.4% receive the Gold Bonus. - Source of estimates: Permanent Multiple Purpose Household Survey (EPHPM) 2023. ### Returned migrants - Honduras functions as origin, return, transit, and to a lesser extent destination for migrants; drivers include violence, economic precariousness, climate vulnerability, and pursuit of better opportunities. - Returned migrant counts (2015–2024): - 2015: 6,021 - 2016: 37,243 - 2017: 23,898 - 2018: 52,352 - 2019: 111,017 - 2020: 36,165 - 2021: 63,420 - 2022: 89,366 - 2023: 51,495 - 2024: 34,386 - Key impacts and challenges: - Deportation/forced return reduces family remittances and destabilizes household incomes. - Returnees face a saturated labor market with few formal opportunities, limited validation of foreign credentials, and entry into informal jobs with low wages and no social security. - Children and adolescents among returnees face acute difficulties: by mid-2023, nearly 38 percent of the 3,543 returned children and adolescents were unaccompanied. ### People with disabilities - No national census or survey on disabilities exists in Honduras; estimates from INE's Permanent Household Surveys suggest approximately 14 percent of the population may have a disability, equating to approximately 1,200,000 people. - Barriers and shortcomings: - Multiple forms of discrimination and invisibility in education, healthcare, and employment. - Penal Code provides for penalties for discrimination based on disability, but there are no effective or accessible reporting mechanisms, remedial actions, or reflective statistics. - Public health system lacks specific care protocols; healthcare personnel often lack adequate training and sensitivity. - Education: absence of statistical data on school dropouts for persons with disabilities. - Employment: high unemployment due to poor compliance with employment quotas and legal limitations on sanctions. - Access to justice hindered by infrastructure, communication, exclusionary regulations, and limited accessible information, particularly in rural and Indigenous and Afro-descendant communities. - International recommendation: - Committee on the Rights of Persons with Disabilities recommended adoption of a gender perspective in disability policies and incorporation of non-discrimination principles into the Children's and Adolescents' Code. ### Indigenous and Afro-descendant peoples - Nine groups identified: Lenca, Maya-Chortí, Tawahka, Tolupán, Pech, Miskito, Nahua, Garífuna, and English-speaking Blacks. - Representation: approximately 7 percent of the population. - Key deprivations: - Invisibility in national statistics and averages due to scarce data. - Exclusion of children from indigenous communities from health services, education, or school meals for not having official identification documents. - Education levels: - Pre-basic education rates are low in all groups (Garífuna 4.0%, Pech 3.6%, others lower). - Basic education predominates; gaps between highest (Garífuna) and lowest (Lenca) approach 57 percentage points. - Secondary schooling levels are extremely low across all populations; Lenca show the lowest percentages overall. - Disproportionate lack of access to basic services, employment opportunities, economic inclusion; higher food insecurity, malnutrition, teenage pregnancy, and maternal mortality. - Lack of land tenure protections increases risks of poverty, malnutrition, and lack of safe drinking water and sanitation when territories are lost. ### Conclusions and policy implications - Longstanding low GDP per capita and high dependence on low-productivity sectors generate high informality and low-paying jobs. - High exposure to external shocks and heavy dependence on remittances: remittances represented 26.1 percent of GDP in 2023. - Climate vulnerability: highest Climate Risk Management Index in the region, linking climate vulnerability to high poverty rates. - Poverty and inequality: - 2023: 69.6 percent of the population lived in poverty (Poverty Line method); 46.7 percent lived in extreme poverty. - Honduras has one of the highest Gini coefficients in Latin America with no observed improvements over the last decade. - Social indicators mixed: prenatal coverage comparable to regional average; maternal and neonatal mortality lower than regional averages; childhood growth retardation and malnutrition in children under five exceed regional averages. - Education challenges: low attendance for ages 4–5 and in primary school; very low secondary and higher education attendance; poor quality of education and limited adult schooling. - Labor market: high informality and low female labor force participation; negative correlation between remittance receipt and labor market participation. - Agrifood sector: represented 12 percent of GDP in 2023; predominantly small-scale and faces resource access limitations, data gaps, high production costs, logistical problems, and labor shortages. - Gender challenges: femicide rate of 6 per 100,000 women in 2022; 52.8 percent of women report having experienced violence; 70.6 percent of women live in poverty. - Housing and services: electricity reaches 88 percent of homes; nearly 98,000 households in the poorest quintile lack electricity; only 46.9 percent of homes have garbage collection; 79 percent in rural areas burn waste. - Vulnerable groups: - Children and adolescents: 79 percent live in poverty and 55.8 percent in extreme poverty in 2023; approximately 9 percent of children and adolescents aged 5–17 reported paid employment. - Older adults: low coverage of contributory and non-contributory programs; less than 3 percent of population aged 65 and over reported receiving contributory pensions; less than 3 percent are beneficiaries of the Gold Bonus program. - Returned migrants and Indigenous and Afro-descendant populations face structural and recurrent vulnerabilities. - Recommended reorientation of the ERP (Economic Recovery Plan): - Focus on improved service delivery with a territorial approach for prioritized services to promote equitable social and economic development. - Actions implied: improved sectoral plans, increased budget allocation (from national and external funds), tax reform, territorial planning, and institutional strengthening with strategic leadership and ongoing monitoring of results. - Social policy role: - An active social policy that enables the most vulnerable and low-income populations to increase productivity and participate in development can trigger a virtuous cycle; this is the approach proposed by the current Strategy. *Source: Estimates and analysis from the provided PDF content (EPHPM 2023 and related sections).* ### 2. Description of the Poverty Reduction Strategy 2022-2046 ### 2. Description of the Poverty Reduction Strategy 2022-2046 ### Overview and strategic intent - Two decades into the 21st century, Honduras faces significant challenges in ensuring broad access to opportunities that allow acceptable levels of well-being, increased productivity, and participation in economic growth. - The 2022-2046 PRS is conceptually based on the asset approach, which seeks to reduce poverty by addressing the structural factors that generate it. - Objective of the asset approach: provide the most vulnerable populations with capabilities, opportunities, and resources necessary to improve quality of life in a sustainable and lasting manner. ### Three central pillars of the 2022-2046 PRS (as described) - Pillar 1. Stability and inclusive growth: - Macroeconomic policy actions that guarantee stability, foster economic growth, and generate productive opportunities for the population, including those with lower incomes. - Pillar 2. Public services and programs to reduce inequalities: - Supply of universally accessible goods and services designed to benefit lower-income populations more. - Included areas: education; health; employment; productive actions in the countryside; housing; water and sanitation; sports and recreation; culture and heritage; social infrastructure actions. - Incorporates components of the Comprehensive Social Protection System. - Pillar 3. Programs focused on serving the poor and vulnerable groups: - Programs, actions, support, goods, and services directly aimed at the poor, focusing on priority geographic areas. - Examples of programs listed: Red Solidaria, PROASOL, Becas Solidarias, Energía Gratis (a subsidy for poor households consuming less than 150 kWh). ### Background: the 2001 ERP (lessons and context) - HIPC Initiative timeline and context: - September 1996: HIPC Initiative adopted by international community, IMF, and World Bank. - Beginning in 1998: Honduras began negotiations with IMF and World Bank for inclusion. - March 1999: Negotiations in the context of the National Reconstruction and Transformation Process following Hurricane Mitch (1998). - December 1999: Honduras declared eligible for the HIPC Initiative. - June 2000: IMF and World Bank Boards approved the "Decision Point" for Honduras. - 2001 Poverty Reduction Strategy Paper: - Fundamental objective: reduce poverty significantly and sustainably, based on accelerated and sustained economic growth; ensure equity via greater access to factors of production, human capital development, and social safety nets. - 2001 PRS goals for 2015 (selected): - Reduce incidence of poverty and extreme poverty by 24 percentage points. - Double net coverage of pre-basic education for 5-year-olds. - Achieve net coverage of 95 percent in access to the first two cycles of basic education. - Achieve net coverage of 70 percent in the third cycle of basic education. - Ensure that 50 percent of the new workforce completes secondary education. - Halve infant and under-5 mortality rates. - Reduce malnutrition among children under 5 to 20 percent. - Halve the maternal mortality rate. - Achieve 95 percent access to safe drinking water and sanitation. - Equalize and raise the gender-related Human Development Index (HDI) by 20 percent. - Implement a strategy for sustainable development. - 2001 Strategy guidelines: - a) Prioritize actions aimed at sustainable poverty reduction. - b) Prioritize actions for the country's most disadvantaged groups and areas. - c) Strengthen civil society participation and decentralization. - d) Strengthen governance and participatory democracy. - e) Reduce environmental vulnerability and its impact on poverty. - Six strategic areas for policy measures and projects: - 1) accelerating equitable and sustainable economic growth; - 2) reducing poverty in rural areas; - 3) reducing urban poverty; - 4) investing in human capital; - 5) strengthening social protection for specific groups; - 6) ensuring the sustainability of the strategy. - Financing design and expectations for the 2001 PRS: - Total estimated cost: US$2.666 billion over 15 years, with an annual average of US$178 million. - Expected additional financing source: release of resources within the General Budget thanks to external debt relief through HIPC (Hypothecary Program for the Recovery and Development of Small and Medium-Sized Enterprises). - Expected annual average contribution from debt relief: US$62.3 million, with largest contribution expected in early years. - Recognized need for supplementary grants and concessional loans from bilateral and multilateral sources. ### Financing composition and execution (2001 ERP historical figures) - Composition of ERP expenditure by fund type (as a percentage of total expenditure): - National funds: 66.1% (2005); 74.7% (2010); 83% (2015). - External loan funds: 21.9% (2005); 10.1% (2010); 7.7% (2015). - Donation funds: 7% (2005); 2.1% (2010); 1.5% (2015). - Relief funds: 5% (2005); 13.1% (2010); 7.8% (2015). - Public spending on the ERP reached 8.8 percent of GDP in 2005. - Budget allocation in 2005 by ERP Area (execution highlights): - Area 4, "Investing in Human Capital": 57.1 percent of total ERP budget in 2005. - Area 6, "Ensuring the Sustainability of the Strategy": 22.9 percent in 2005. - Area 2, "Reducing Poverty in Rural Areas": 10.3 percent in 2005. - Areas 1 ("Accelerating Equitable and Sustainable Economic Growth") and 3 ("Reducing Urban Poverty"): recorded lower levels of budget execution in both years cited. ### Outcomes, shortcomings, and evaluative findings of the 2001 ERP - Poverty and inequality outcomes: - 2005 poverty incidence: 65.8 percent of the population affected by poverty. - 2001 national poverty incidence: 65.2 (see table). - Gini coefficient evolution: 56.1 (2001) to 58.9 (2005). - Household poverty incidence, selected figures (2001–2005) — Total poverty / Extreme poverty: - National: 2001 = 65.2 / 48.4; 2005 = 65.8 / 47.1. - Urban: 2001 = 57.7 / 37.8; 2005 = 60.3 / 31.3. - Rural: 2001 = 73.8 / 60.6; 2005 = 71 / 63.8. - Women (national): 2001 total poverty 68.9; 2005 total poverty 66.8. - Men (national): 2001 total poverty 64.1; 2005 total poverty 65.4. - Table 19 ERP Indicators, 2005 — selected indicators comparing 2001, 2005 real, and 2005 goal: - GDP per capita growth rate: 2001 = 0.2; 2005 real = 1.8; 2005 goal = 1.6. - Poverty spending as a percentage of GDP: 2001 = 8.8; 2005 real = 8.8; 2005 goal = 8.7. - Poverty Rate: 2001 = 65.2; 2005 real = 65.8; 2005 goal = 58.4. - Extreme Poverty Rate: 2001 = 47.4; 2005 real = 47.1; 2005 goal = 39.7. - Coverage Rate in Pre-Basic Education: 2001 = 38.1; 2005 real = 34.3; 2005 goal = 36.5. - Net Coverage Rate 1st to 2nd Cycle of Basic Education: 2001 = 87.7; 2005 real = 89.4; 2005 goal = 91.7. - Coverage Rate in the 3rd Cycle of Basic Education: 2001 = 34.1; 2005 real = 39; 2005 goal = 37.3. - Diversified Cycle Net Coverage (10th to 12th grade): 2001 = 18; 2005 real = 22.7; 2005 goal = 22.3. - Infant Mortality Rate (per 1,000 live births): 2001 = 34; 2005 real = ND; 2005 goal = 29. - Under-5 Mortality Rate (per 1,000 live births): 2001 = 45; 2005 real = ND; 2005 goal = 39. - Child Malnutrition Rate: 2001 = 32.9; 2005 real = ND; 2005 goal = 28.9. - Maternal Mortality Rate per 100,000 live births: 2001 = 108; 2005 real = ND; 2005 goal = 95. - Electricity Coverage Rate: 2001 = 57.5; 2005 real = 64.2; 2005 goal = 64.9. - Fixed Line Density per 100 inhabitants: 2001 = 4.8; 2005 real = 6.6; 2005 goal = 5.4. - Mobile Phone Penetration (users per 100 inhabitants): 2001 = 3.6; 2005 real = 15.5; 2005 goal = 7.2. - Percentage of Drinking Population with Access to Drinking Water: 2001 = 81.0; 2005 real = ND; 2005 goal = 83.4. - Percentage of Population with Access to Excreta Disposal Systems: 2001 = 69.4; 2005 real = ND; 2005 goal = 73.0. - Gender-related HDI: 2001 = 0.62; 2005 real = ND; 2005 goal = 0.70. - Gender Empowerment Index: 2001 = 0.45; 2005 real = ND; 2005 goal = 0.50. - Number of Priority Protected Areas (AA.PP) with Management Plans: 2001 = 5; 2005 real = ND; 2005 goal = 31. - Percentage of Total Area of Priority Protected Areas with Management Plans: 2001 = 12.5; 2005 real = ND; 2005 goal = 79.5. - Note: ND = Not available. - Reported implementation strengths and limitations: - Positive aspects: significant civil society involvement, participation of professionals and academics, productive space for dialogue and collaboration. - Achievements noted: social spending reached 8.8 percent of GDP (goal 8.7); GDP per capita growth 1.8 (goal 1.6); fixed-line density achieved 6.5 per 100 inhabitants (goal 5.4) as highlighted in the text. - Red Solidaria Monitoring and Evaluation report (2008) findings: - Collaboration agreements with 11 different service providers for beneficiary population; 9 were government institutions. - Investment by axis in Red Solidaria: social protection 56.2 percent; capacity building 16.1 percent; social infrastructure 14.8 percent; no investment in economic infrastructure. - Budget allocated to the Program covered 33.2 percent of the Program's target population. - Territorial presence: 69.7 percent of targeted villages had at least one intervention; 30.21 percent had no intervention or presence. - Critical assessments: external debt relief resources used primarily for short-term priorities and less for long-term impact programs (FOSDEH assessment); the PRS weakened over the years and poverty reduction and human development goals were not achieved as expected. - Summary judgement of 2001 PRS: - Despite clear objectives and goals, the 2001 PRS failed to address structural causes of poverty or substantially improve living conditions for the majority, especially in rural areas and among the most vulnerable groups. - Red Solidaria achieved moderate presence in villages but reached barely a third of the target population. ### Conceptual framework of the 2022-2046 PRS - Overarching premise: - Achieving sustained poverty reduction requires addressing structural causes. - The Strategy relies on a conceptual framework guiding specific government action. - Asset approach fundamentals: - Views social policy instruments as investments to improve capabilities, productivity, and economic opportunities of low-income people and territories. - By focusing on the lowest-income groups, success aims at reducing inequality gaps. - Core elements of the approach (conceptualization of inequality and poverty as processes depending on four central elements): 1. The distribution of income-generating assets; 2. The distribution of opportunities to use such assets; 3. The prices at which the market compensates for its use; 4. (The fourth element is listed in the original content but not included in the supplied excerpt). *Source: 1hndea2026002 - 2. Description of the Poverty Reduction Strategy 2022-2046* ### 4. Transfers and other income independent of assets. ### 4. Transfers and other income independent of assets. ### Asset-based income-generation: four elements - Capabilities/assets: income-generating assets classified into three types for PRS purposes: - Human capital: "competencies, skills, or knowledge" plus physical capabilities determined by nutrition and health. - Physical capital: "monetary value of any form of financial asset, land for production, money holdings, property, and capital reserves used for production" including housing tenure, basic services, and ability to save or generate wealth. - Social capital: "trust, norms, and networks" that facilitate coordinated actions. - Productive use of assets: assets and capabilities translate into well-being only when there are opportunities to employ them productively (labor market access, opportunities to invest). - Price system: market prices for asset use (wages, product prices, profitability of instruments) are determined by supply and demand, access to services, communications, infrastructure, and institutional factors; infrastructure and communications can modify effective prices received without direct price intervention. - Transfers and other non-asset income: "public or private resources, including remittances" that supplement disposable income and provide stability in vulnerability, enabling consumption smoothing and sometimes investment for asset accumulation. ### Territorial dynamics and interaction of elements - Territorial inequalities in access to basic services—education, healthcare, water and sanitation, electricity, digital connectivity, and financial services—are "marked," especially in rural areas, reducing productivity and deepening poverty. - Concentration of climate risks in particular areas increases vulnerability and creates poverty traps and migration pressures. - The four elements interact: higher societal valuation of an asset raises incentives to accumulate it; expanded utilization opportunities incentivize accumulation; asset prices may change as holdings expand or are used more intensively. ### Constraints on accumulation or use of assets - Two broad groups of constraints are identified. - First group (five types): a. Offering basic services and infrastructure. b. Minimum capacities to participate in economic activity. c. Assets or capacity to invest. d. Risk or lack of protection mechanisms. e. Entry and permanence in the labor markets or credit opportunities. - Illustrative details on the first group: - Service supply constraints (electricity, water, sewage) hinder asset accumulation and access to education and health. - Basic capability constraints: lack of identity document, health care, nutrition—families may be unable to plan beyond immediate survival; even free public services impose costs (transportation, clothing). - Asset constraints: absence of collateral or own resources limits access to credit and productive investment; families without assets are restricted to financing investments from precarious incomes. - Protection constraints: lack of insurance forces use of assets as buffers, discouraging long-term productive investment and biasing choices toward lower-risk, lower-return projects. - Labor market/credit entry constraints: discrimination (e.g., indigenous populations), transportation costs, and information asymmetries limit access to employment opportunities. - Second group: - Barriers to creation of economic activity through investment when credit markets are imperfect or absent and in contexts of economic instability; absence of financial markets limits ability to take advantage of investment opportunities. ### Policy and action approach from the framework - Supply constraints: invest in basic services (electricity, water and sewage, education, health) with emphasis on territories/populations with lower socioeconomic status to unleash new productive potential and inclusive growth. - Basic capabilities: ensure supply of nutritional goods and a minimum level of resources so families can plan beyond daily survival. - Investment and insurance constraints: create credit instruments and markets accessible across territories and for low-income groups; channel financial resources to small-scale, high-yield activities; build trust via repayment to expand availability. - Productive opportunities and prices: generate an environment of economic stability and inclusive growth; enhance local vocation, potential, and comparative advantages via investments in communications, transportation, market access, and technology; align asset accumulation with productive-sector requirements; use infrastructure/communications to influence prices through improved market access and higher productivity. - Comprehensive sequencing: eliminate or reduce multiple constraints simultaneously (or the most binding ones) to generate a virtuous cycle of asset accumulation, productive opportunities, and income generation. ### Principle of integrity and complementarities (program design) - Actions and programs should be implemented strategically to leverage complementarities and synergies across interventions; combined effects may exceed the sum of individual actions. - Example: health and education interventions have multiplier effects—better health reduces out-of-pocket costs and improves academic performance; higher education levels improve health practices. - Case study: addressing child malnutrition requires coordinated actions across at least five causes: 1. Lack of nutritious food (supply). 2. Poor nutrient utilization due to sanitation (e.g., dirt floors, animals in the home). 3. Lack of health services/treatment. 4. Insufficient income to purchase food. 5. Lack of access to basic services such as drinking water. - Coordinated interventions to reduce malnutrition include: - Providing food in the home and complementary school feeding or cash transfers (protection/capacity). - Primary and preventive medical care (health). - Training/counseling for mothers on nutrition, hygiene, childcare (capacity). - Household infrastructure improvements (flooring, stoves, roofs, latrines) and basic service infrastructure (drinking water, electricity) (asset strengthening). - Productive options: income-generation support such as family gardens (productive opportunities). - Complementary policies—communications, market information, access to credit—amplify impacts by improving market access, prices, and returns. ### Targeting, planning, and implementation instruments - Identification systems and sectoral/territorial planning tools are necessary to target low-income populations and prioritize geographic areas, families, and households most in need given budget constraints. - Existing information partially enables prioritization, but some efforts (e.g., Urban Census of Households in Extreme Poverty) remain incomplete. ### ERP 2022–2046 objective, theory of change, and headline targets - General objective: "reduce poverty by implementing public policies aimed at implementing a comprehensive and multidimensional strategy with a territorial focus" to expand capabilities and assets, improve utilization and remuneration, complemented by monetary transfers and policies for productive, sustained growth with economic stability and inclusion. - Theory of change (verbatim logic): If the capabilities and assets of the population living in poverty are improved, as well as the opportunities to use them and receive adequate remuneration, complemented by monetary transfers and, in addition, lines of action are implemented to promote greater productivity and sustained growth with economic stability, as well as policies to ensure that income growth is inclusive for the population and the territories With greater disadvantages, then, people will have the tools to achieve economic independence in a sustainable way, and in a virtuous circle, their productivity will increase, income poverty will be reduced, and economic development will be promoted. - Table 20 — General poverty indicators and targets (Baseline and Goals): - Households in poverty: Baseline 62.9%; Goals 2024 58.8% 2030 52.8% 2034 47.8% 2038 37.8% 2042 27.8% 2046 (goal) 27.8% (table lists baseline and goals aligned across years; baseline labeled 62.9% with subsequent period goals as shown). - Households in extreme poverty: Baseline 40.1%; Goals 2024 36% 2030 30% 2034 25% 2038 15% 2042 5% 2046 (goal) 5%. - Inequality index: Baseline 0.49; Goals 2024 0.45 2030 0.40 2034 0.30 2038 0.20 2042 0.10 2046 (goal) 0.10. - ERP expenditure as a percentage of GDP (2023 baseline): Baseline 7%; Goals 2024 7% 2030 7% 2034 7% 2038 7% 2042 7% 2046 7%. - PRS implementation structure: three pillars (development policies/programs benefiting general population; programs that benefit poorest population the most; programs and strategies focused on population living in poverty) plus two transversal axes (gender perspective and climate change). *Source: 4. Transfers and other income independent of assets., 1hndea2026002* ### 1. State Secretariat for Transparency and the Fight against Corruption ### 1. State Secretariat for Transparency and the Fight against Corruption (STLCC) ### Institutional organization and new entities - Secretariat functions and responsibilities listed: - State Secretariat for Transparency and the Fight against Corruption (STLCC): Responsible for preventing and combating corruption in the exercise of public and private functions. - Secretariat of State in the Office of Strategic Planning: Governing institution of the National System of Planning for Social and Economic Development. - Secretariat of State for Women's Affairs: Dedicated to designing and implementing public policies for gender equality and the protection of women's rights. It is part of the Ciudad Mujer Program. - Secretariat of State for Culture, Arts, and the Heritage of the Peoples of Honduras: Responsible for formulating policies for the promotion and protection of art, culture, and national heritage. - Secretariat of State for Infrastructure and Transportation (SIT): Responsible for developing and managing infrastructure and transportation projects and programs. The Strategic Investment/MCC-Honduras (INVEST-H) functions are transferred to it, except for health and agriculture. - Secretariat of State for Social Development (SEDESOL): Created to coordinate and implement social policies focused on inclusion and poverty reduction. The National Center for Social Sector Information (CENISS) is attached to it, which becomes the Poverty and Vulnerability Observatory. - Secretariat of State for Community Development, Water and Sanitation (SEDECOAS): Responsible for the management of community infrastructure, access to drinking water and sanitation. - Secretariat of State in the Office for Project Development and Monitoring of the Secretariat of the Presidency: Created to supervise and coordinate strategic government projects. - Additional creations attached to or stemming from the decree: - Solidarity Network Program, attached to the Ministry of Social Development, for poverty reduction and the implementation of social projects. - Results-Based Management Directorate, as a decentralized entity of the Presidency. - Social Development Observatory, with the aim of permanently and continuously analyzing and evaluating poverty levels and the factors linked to it. ### Decrees, ministerial agreements, and institutional mandates (selected) - Executive Decree PCM-08-2022: - Details the functions of the Red Solidaria Program; main objective: "to reduce poverty and extreme poverty through the implementation of programs and projects aimed at vulnerable populations, targeted by social information systems and the technical tools available to the State, considering the design, structuring, execution, administration, and supervision of productive and social projects, including scholarships for young people in primary, secondary, and university education." - Ministerial Agreement 010-SEDESOL-2022: - Establishes the creation of the Solidarity Fund for the Disability Sector in Honduras. - Executive Decree PCM-11-2022: - Establishes the elimination and liquidation of several State Secretariats, Programs, Special and Sectoral Cabinets as part of governmental restructuring; orders creation of a Technical Liquidation Commission and formation of the National Commission for Sports, Physical Education, and Recreation (CONDEPOR). - Executive Decree PCM-19-2022: - Establishes core responsibilities of SEDESOL, including: - a) Act as the governing body for public policies for the development and social protection of populations living in poverty, extreme poverty, and social vulnerability. - b) Lead the governance of the social sector through the Social Protection and Labor Market Roundtable, which establishes sectoral outcome targets to be evaluated semiannually by the Presidency through the Results-Based Management Directorate (DIGER). - Article 2: “the exercise of its institutional mandate strictly as the governing body, trainer, and regulator of the country's social policy...” - Executive Decree PCM-020-2022: - Creates PROASOL as a decentralized entity of SEDESOL and presents a definition of “vulnerable groups” that enumerates specific categories (including vulnerable children of school age; people in a condition of homelessness; forcibly returned migrants; people with disabilities; vulnerable older adults; displaced people and those affected by disasters, natural risks and/or pandemics, epidemics, etc.; people with addiction to any type of drug; people discriminated against and/or without access to medical care due to chronic or contagious diseases; displaced people or victims of crimes resulting from violence; people discriminated against for belonging to the LGBTIQ+ community; ethnic minorities discriminated against for having roots in indigenous peoples or Afro-descendants; human rights defenders and others designated by the country's Public Policy on Social Protection). - Ministerial Agreement No. 036-2022: - Indicates the Solidarity Network Program may implement emergency CCTs or Humanitarian Cash Transfers and/or redefine existing CCTs in design (amounts, conditionalities, eligibility) to mitigate impacts of emergency situations from natural disasters by providing temporary financial support to eligible households directly affected. - Ministerial Agreement 020-B-SEDESOL-2023: - Regulations of the Solidarity Scholarship Program. - Executive Decree PCM-09-2023: - Establishes the creation of Solidarity Scholarships. - Executive Decree PCM-41-2023: - Creates the Secretariat for the Offices of Children, Adolescents and Family. - Legislative Decree 18-2024: - Law that protects the country's reserve areas, especially the core zone of the Botaderos Mountain National S. ### 3. Pillar 1: Stability and inclusive growth ### Context and strategic objective - Historical challenges identified: - Low economic growth, high informality, dependence on a small number of export products, declining foreign investment, high unemployment, and limited effectiveness and allocation of public social spending, with its systematic reduction. - Weak and centralized institutional environment for planning, budgeting, management, implementation, and development of policies and technical standards. - Regressive fiscal policies that increased poverty, fostered public debt, resulted in a higher tax burden, insufficient tax revenue, and limited capacity to meet social demands. - Government objective: - Promote a virtuous relationship between macroeconomic stability and inclusive and equitable growth to create fiscal space that promotes social and productive investment, generate employment, serve the most vulnerable sectors, and strengthen productivity across population groups and territories. - Macroeconomic stability elements emphasized: - Growth in per capita GDP, increasing resources available to the population, targeting disadvantaged sectors, low inflation, controlled budget deficits, and sustainable external debt; openness to international trade, improved education, and strengthening the rule of law are cited as supportive policies. ### 3.1 Lines of action for revenue growth 3.1.1 Lines of action to boost key sectors of the economy - Strategic approach: - Alternative economic model based on strengthening the role of the State, especially in strategic areas and provision of essential public services; formulation and implementation of public policies to strengthen various types of businesses and forms of ownership; state intervention to correct market distortions and direct investment toward priority sectors while ensuring environmental harmony. - Equity between genders, ethnicities, generations, and territories prioritized as fundamental principles. - Emphasis on three key sectors with significant potential: industrial, agricultural, and tourism. Industrial development - Policy focus: - Support and modernize manufacturing and agroindustrial sectors by promoting transformation of raw materials to generate greater unit and added value. - Create a favorable investment climate (macroeconomic stability, legal and physical security). - Build basic infrastructure in roads, energy, transportation, and telecommunications to boost domestic and foreign investment and transform the productive structure. - Invest in job training and vocational education services to ensure skills development aligned with infrastructure and product investment. - Objectives and measures: - Promote productive diversification and competitiveness, seek new markets, coordinate large, medium, and small businesses to reduce costs and increase exports. - Foster scaling up of added value in manufacturing and maquiladora activities through greater integration of local knowledge and productive structure. - Encourage development of new, highly productive industrial products and activities to boost exports via increased innovation, diversification, adoption of new technologies, and improved coordination and information externalities. Agricultural development - Land policy and legal measures: - Adopt measures to ensure legalization of agricultural lands, prioritizing social justice and respect for the law; study legalization of lands under control of peasant groups benefiting from agrarian reform, returning to the original purpose of Decree 18-2008. - Promote equal access to lands for men and women in compliance with current legal provisions. - Sanitize and legalize lands of Indigenous and Afro-descendant peoples, beginning with those in conflict, in compliance with ILO Treaty 169. - Rural poverty and productivity measures: - Implement a comprehensive strategy combining provision of basic services in rural areas, food sovereignty, and analysis of land distribution targeted to areas with highest poverty rates to promote self-sufficiency and strengthen the local market. - Support basic grain producers with agricultural inputs, pest control, technical assistance, community irrigation projects, and rural roads to facilitate trade and access to services. - Establish rural banks to boost the agricultural economy and strengthen the value chain by eliminating intermediaries. - Institutional strengthening: - Revive and strengthen the National Agricultural Development Bank (BANADESA) as an agricultural development bank offering affordable, long-term loans to small and medium-sized producers. - Consolidate the National Agrarian Institute (INA) as the entity responsible for legalizing and titling land, ensuring it is used for its productive purpose. - Social and rights commitments: - Commit to resolving agrarian conflicts and guaranteeing the right of rural, Indigenous, and Afro-descendant communities to free, prior, and informed consultation regarding any agricultural project in their territories. Tourism - Sector potential and objectives: - Honduras has diverse resources and attractions for domestic and international tourism; development is expected to generate decent employment and contribute to economic recovery without harming the environment. - Policy measures: - Prioritize promotion of domestic tourism through collaborative strategies with tourism chambers and municipalities. - Create a Support Fund to address emergencies from natural disasters and promote diversification of tourism offerings to enhance sector resilience and long-term sustainability. - Promote agrotourism as a strategic pillar linking tourism and agriculture; leverage successful ventures (e.g., coffee and cocoa sectors) and invest in road networks and rural roads to reduce trade costs and expand access to tourist destinations. - Conduct a comprehensive review of tourist taxes to promote domestic tourism, noting currently these taxes are similar to those applied to luxury goods, which limits access for the local population. - Seek UNESCO recognition for the Lenca/Maya Corridor Cultural Landscape to strengthen international investment prospects. - Institutional note (footnote content preserved as presented): - The governing body for tourism policy is the Ministry of Tourism, and the Honduran Tourism Institute (IHT) implements said policy. The 2024 Institutional Strategic Plan defined a strategic objective for 2025 as "Creating a Public Policy Framework for the Development of the Tourism Sector." Updating the regulatory framework and the National Sustainable Tourism Strategy (which expired in 2022) is contemplated; a consultancy to update the strategy was financed via USAID's DAI-Climate Change agency, but assistance projects were put on hold due to the closure of USAID programs worldwide. The Ministry of Tourism is consulting with SEFIN and other agencies to evaluate continuation and funding. Infrastructure projects - Road network program: - The Ministry of Infrastructure and Transportation (SIT) planned the construction or rehabilitation of 35 road projects during the period 2023-2025, with an impact on 13 departments: Cortés, El Paraíso, Francisco Morazán, Lempira, Olancho, Santa Bárbara, Atlántida, Intibucá, Comayagua, Ocotepeque, Yoro, Copán and Choluteca. - Expected benefits cited for poverty reduction (enumerated as presented): 1. Improved access to markets and jobs: Roads facilitate the transportation of goods and services, allowing people in rural communities to sell their products in larger markets and access more job opportunities. *Source: own elaboration* ### 2. Reduced transportation costs: Improved roads reduce travel costs and time, benefiting both ### 2. Reduced transportation costs: Improved roads reduce travel costs and time, benefiting both ### Primary benefits of improved roads and infrastructure - Reduced transportation costs and travel time increase economic efficiency for farmers and workers. - Construction and maintenance generate direct and indirect employment, supporting related local businesses such as restaurants and construction supplies. - Roads improve access to health, education, and emergency services, enhancing quality of life and opportunities for human development. - Improved infrastructure connects rural areas with urban centers, fostering regional trade and economic exchange. - Reduced isolation enables remote communities to integrate socially and economically, potentially helping to break cycles of poverty. ### Hospital network expansion - Honduras is building an unprecedented hospital network including nine hospitals, which will increase the number of available beds by just over 900 and benefit more than 285,588 residents. - The hospitals enumerated are: - Salamá Hospital, Olancho - Santa Bárbara Hospital - Ocotepeque Hospital - Bay Islands Hospital, Roatán - Tocoa Hospital, Colón - Choluteca Hospital - Trauma Hospital in Tegucigalpa - Trauma Hospital in San Pedro Sula - Bay Islands Emergency Hospital, Roatán - Maps and a location map of four hospitals currently under construction are included in the Annex; details on progress are provided under Pillar 2 of the PRS. ### ENEE: Key investment projects and objectives - ENEE participation in the Medium-Term Macrofiscal Framework (MMFMP) is important to define and estimate long-term investments across the institutional value chain: generation, transmission, distribution, and the National Program for Loss Reduction. - All projects developed by ENEE contribute directly to reducing electricity losses. - ENEE has had a shortfall in priority investments necessary for the National Interconnected System (NIS) to function properly; several projects are completed or planned. a. Generation program — primary objectives and projects - Purpose: generate electricity through ENEE-owned generating plants (renewable and non-renewable), protect hydroelectric basins via sustainable use of natural resources, and repower generating plants with national and external financing. - Currently underway or planned projects referenced: - Construction and entry into operation of the Patuca III Hydroelectric Dam (operational entry in 2020). - Repowering of the Cañaveral Rio Lindo Hydroelectric Complex. - Renovation of the Francisco Morazán Hydroelectric Plant. - Construction of the El Tablón Multipurpose Dam to impact flood mitigation in the Sula Valley and contribute to electricity generation. - Patuca IIA (La Tarrosa) project: studies to add 150 MW of power generation to the National Interconnected System (SIN) from Patuca IIA (La Tarrosa) below Patuca III, manage small reservoirs of 45 km², and support regional development approximately 270 km from the South Central region. - Los Llanitos and Jicatuyo hydroelectric projects: feasibility studies and basic designs to determine dam viability, increase installed capacity and renewable energy supply, incentivize use of natural resources, and contribute to flood and disaster control in the Ulúa and Chamelecón river areas. - El Tablón multipurpose dam: primary objective to prevent flooding in the Sula Valley, safeguard lives and assets, and contribute to water security and economic growth. b. Transmission program — objectives and featured projects - Program covers operation and maintenance of the National Electric Power Transmission Grid (substations and transmission lines), projects related to transmission and transformation, and administrative units. - Project "Support for the National Program for Electric Power Transmission" includes construction of substations, expansion of transmission lines, and installation of compensation banks in substations. - Table 23 featured transmission projects 2026-2030 (project descriptions preserve exact project attributes): - Construction of a 230kV transmission line with a length of 152.6 km. Project to section the L612/L613 line – Zamorano II – Danlí II – Terrero Blanco at 230kV: objectives include improving service quality, reducing technical losses, improving reliability of radial circuits in the South-Central region supplying El Paraíso, increasing capacity for electric power exchange, and allowing incorporation of large-scale and more efficient generation to meet growing demand. - Construction of a 197km 230kV transmission line; Negrito Project – Yoro II – Arenales – Coyoles Central II – Reguleto: objectives include improving service quality, reducing technical losses, improving reliability of radial circuits along the Atlantic coast and part of Yoro, increasing capacity for electric power exchange, and allowing incorporation of large-scale and more efficient generation to meet growing demand. c. Distribution program — objectives and components - Aim: guarantee continuous, safe, and efficient electricity supply to end consumers, minimizing interruptions and maximizing service quality at medium and low voltages. - Planned expansion of distribution circuits across ENEE substations nationwide for the 2026-2031 period, in addition to the National Loss Reduction Program (PNRP). Other priority transmission projects currently formulating profiles and identifying financing: - 230 kV Transmission Line, 33 km long, Masca – La Victoria – Bermejo Project - 230 kV Transmission Line, 30 km long, La Entrada – Santa Rosa II – Santa Rosa Project - 230 kV Transmission Line, 42 km long, Amarateca – Talanga Project - 138 kV Transmission Line, 4 km long, Bermejo – Circunvalación Project ### ENEE multi-year investment program (2025-2032) — exact figures (Millions of lempiras) - Estimated exchange rate L/US$ 26.0 - Table 24 Investment Program 2025-2032 (Millions of lempiras): - Projects in Process: 2025 11,462.30; 2026 10,783.93; 2027 11,576.88; 2028 9,423.64; 2029 4,840.26; 2030 812.20; 2031 -; 2032 - - Generation: 2025 38.07; 2026 2,489.86; 2027 9,459.51; 2028 13,494.06; 2029 23,768.88; 2030 21,946.12; 2031 10,966.80; 2032 12,951.90 - Transmission: 2025 389.87; 2026 4,053.15; 2027 3,936.98; 2028 1,036.10; 2029 3,034.14; 2030 2,996.75; 2031 -; 2032 - - Distribution: 2025 -; 2026 3,648.85; 2027 4,196.89; 2028 2,784.64; 2029 2,539.08; 2030 2,869.06; 2031 457.88; 2032 - - TOTAL ENEE: 2025 11,890.25; 2026 20,975.78; 2027 29,170.26; 2028 26,738.43; 2029 34,182.36; 2030 28,624.13; 2031 11,424.68; 2032 12,951.90 ### Lines of action to improve tax collection (Strategic Axis 1: Economic Policy 2022-2026) - Approve the Tax Justice Law (LTJ) to create a more progressive and equitable tax system; projected revenue impact: 0.3 percent of GDP in 2025, 0.8 percent in 2026, and reaching 1.5 percent of GDP in 2027. - Increase tax revenue collection by 1 percent of annual GDP (30 billion lempiras). - Reform the principle of territorial income to global income to prevent evasion through tax havens. - Prevent Honduras from being declared a tax haven. - Integrate resources from tax collection and annual budget settlements into the State's single treasury for effective accountability. - Efficiently schedule transfers to institutions through the Treasury's Single Fund. - Achieve efficient and cost-effective delivery of strategic services by public companies: ENEE; Honduran Telecommunications Company (HONDUTEL); National Water and Sewer Service (SANAA); Honduran Postal Company (HONDUCOR); and National Graphic Arts Company (ENAG). - Implement territorial development plans with analysis of demand for basic services at the local level and strategies for mobilizing services with corresponding budget allocation. ### Policies for inclusive growth and fiscal-space use - Goal to maintain a minimum spending level to strengthen programs for the most vulnerable, considering population subgroups and regions (urban and rural). - Strategic investment in infrastructure to improve quality of life, local productivity, job creation, and sustainable development. - Non-priority budget expenditures were reviewed to free fiscal space for financing investments with domestic resources. - Productive investment targets align with commitments in international economic programs and Multiannual Fiscal Performance Rules; macroeconomic forecasts establish fiscal space ceilings for productive investment. - Analysis of fiscal resources allocated to poverty reduction on economic growth uses a Macroeconomic Consistency Model, Financial Programming template of DPMF, and the Public Debt Dynamics (DDT) tool. ### Advances during the 2022-2026 government administration (selected progress and statistics) - Tax system improvements: - The Tax Justice Law was submitted to the National Congress on April 25, 2023. - By end-2023, the Revenue Administration Service (SAR) estimated a collection of L. 90,031.70 million, approximately L. 6,600 more than the previous period, representing an 8 percent increase. - Reclassification of 2,770 taxpayers in 2022 allowed oversight of 85 percent of tax collection in 2023 versus 69 percent under previous classification; reclassification improved oversight of 721 large companies and 2,024 medium-sized companies. - Introduction of the Advanced Electronic Signature to streamline procedures and reduce administrative costs. - Establishment of the SAR virtual office for information, appointments, and self-paid receipts. - Opening of the Roatán tax office, the first tax window in Puerto Cortés, and two tax office relocations in December 2023 as part of a strategy to cover all 298 municipalities by 2025. - Customs revenue collection: cumulative revenue from January to December 15 is L. 53,336.61 billion, L. 2,650.01 billion higher than revenue collected in 2022. - Fiscal consolidation: - Medium-term fiscal projections show a gradual convergence path consistent with the Fiscal Responsibility Law (LRF) and the economic agreement with the IMF. - Institutional and sectoral advances: - Reactivation of the National Quality Council after 11 years of inactivity with participation from private sector, academia, and government. - Progress on Honduras's Industrial Policy with private sector, SDE, and UNIDO collaboration; policy topics include sustainable and inclusive development, FDI focus, Central American integration, and economic growth. - MSME support: 3,407 businesses established; 1,564 MSMEs and producers benefited from financing; 3,210 received financial education; 769 entrepreneurs participated in fairs; 827 entrepreneurs linked to national and international markets. - Energy sector: renegotiation of energy contracts improving financial conditions. - Banking sector: first cybersecurity regulation for the Honduran financial system approved; as of September 2023, the loan portfolio increased by more than L. 60 billion, and savers' deposits in financial institutions grew by more than L. 40 billion compared to December 2022. - Anti-money laundering and anti-terrorist financing measures: CNBS issued provisions to prevent misuse of financial products and services in 988,764 active electronic wallets as of February 2023. *Source: 1hndea2026002 - 2. Reduced transportation costs: Improved roads reduce travel costs and time, benefiting both* ### 4. Pillar 2 of the ERP: Public services and programs to reduce inequalities ### 4. Pillar 2 of the ERP: Public services and programs to reduce inequalities ### Pillar 2 overview and purpose - Pillar 2 consists of programs, actions, and services offered generally to the entire population that, by usage patterns, benefit the poorest sectors relatively more, contributing to the reduction of inequality. - Services included: education; health; employment; productive activities; housing; water and sanitation; sports and recreation; culture and heritage (asset approach guiding the PRS conceptual framework). - Pillar 2 integrates components or axes of the Comprehensive Social Protection System of Honduras (SIPS), aimed at benefiting excluded or discriminated groups and increasing supply of goods and services in the territories. - The SIPS proposes a universal, comprehensive, sustainable, and resilient approach with actions throughout the life cycle, addressing structural axes of social inequality and protection against multiple social risks (life cycle and individual/collective contingencies), and recognizing non-economic exclusions and discrimination (gender identity, culture, territorial location, life cycle stage, disability, immigration status, sexual orientation). ### SIPS strategic axes (four priorities) - (1) Income social protection axis: - Considers contributory and non-contributory dimensions. - Non-contributory dimension includes conditional and non-conditional cash benefits, in-kind benefits, and pension programs for those experiencing poverty, extreme poverty, vulnerability, exclusion, and social risk. - Linked to Pillar 3 of the PRS; pays special attention to food insecurity (Chapter 5). - (2) Human capacity development and access to social services: - Connects people with provision of health, education, food and nutrition security, care, housing, and basic services. - Actions implemented under national infrastructure and development plans, adopting the principle of universal accessibility. - (3) Labor inclusion axis: - Policies to generate income and provide productive and quality employment, promoting decent work. - Strengthens labor inclusion of populations in poverty and vulnerability, especially young people, women, and people with disabilities. - Actions aligned with Pillar 3 of the PRS (Chapter 5). - (4) Adaptive social protection axis: - Policies and programs to ensure security and well-being in emergencies and reduce disaster impacts on economy and society. ### General objective of Pillar 2 - Guarantee access to universal essential public goods and services, prioritizing their design and execution to benefit populations and territories most disadvantaged. ### Link to Sustainable Development Goals (context) - The diagnostics document multiple problems in Honduran education limiting the right to education: - Educational coverage has declined significantly in recent years, increasing exclusions, particularly in rural and hard-to-reach areas. - Lack of access to the third cycle of basic and secondary education in rural areas. - Deficiencies in infrastructure: insufficient classrooms, poor hygiene conditions, lack of teaching resources. - Crisis in teaching quality: poor academic performance, high dropout and repetition rates. - Government commitment: transform the Honduran education system to ensure free, quality public education built on universality and progressivity, expand formal and non-formal coverage (including bilingual education), improve retention, renovate entire school infrastructure, reform the National Basic Curriculum aligned with Morazan's philosophy, and review higher education model to align with national and global development needs. ### Education lines of action and commitment dates (Table 25 summary) - Fund an education system providing free, high-quality, universal, and progressively bilingual public education: - Free Tuition at Government Educational Centers — 2026 - Expand coverage and access to formal and non-formal education (selected specific actions): - Creation of Bilingual Teacher Training Schools - Access to Pre-school, Basic and Secondary educational levels - Nutritional School Feeding - Education for Prevention and Social Rehabilitation - Literacy, Basic and Secondary Education for Youth and Adults - Transformation of Community Pre-Basic Education Centers into Common Pre-Basic Education Centers (CEPB). - Development dates: 2026 - Extend school attendance and improve access conditions (selected actions): - Transition from Single-Teacher and Two-Teacher Centers to Multi-Teacher Centers - Social Scholarships for Basic and Secondary Education Students - Creation and Strengthening of School Gardens - Occupational Training - Environmental Education for Sustainable Development - Mainstreaming the Gender Approach - Pedagogical Use of Educational Technologies and Libraries - Operation of the National System of Teacher Supervision and Support - Strengthening Extracurricular Education - Development dates: 2026 - Rehabilitate school infrastructure, prioritizing marginalized rural and urban communities (improve classrooms, restrooms, drinking water systems, electricity, sports facilities): - Expansion, Repair and Construction of Educational Centers — 2026 - Reform the National Basic Curriculum aligned with Morazan's thinking: - Redesign of the National Basic Curriculum and Curricular Designs for Pre-school, Elementary, and Secondary Education — 2026 - Update higher education model to align with labor market demands (digital skills, specialized technical training, interdisciplinary approaches): - No specific date indicated in the table (text includes "Earring" entry without additional detail). ### Education indicators, baselines, targets, and linked programs (Table 26) - Key indicators, baseline (2024) and targets for 2030, 2034, 2038, 2042, 2046, and programs linked to achievement (Source: Secretariat of Strategic Planning, 2025). - Indicators and numeric values preserved exactly: - Illiteracy rate - 2024: 9.39 - 2030: 8.04 - 2034: 7.14 - 2038: 6.24 - 2042: 5.35 - 2046: 4.0 - Pre-basic coverage rate - 2024: 74% - 2030: 79% - 2034: 83% - 2038: 86% - 2042: 90% - 2046: 95% - Basic coverage rate (I and II cycle) - 2024: 79% - 2030: 83% - 2034: 86% - 2038: 88% - 2042: 91% - 2046: 95% - Basic coverage rate (III cycle) - 2024: 49% - 2030: 54% - 2034: 57% - 2038: 61% - 2042: 65% - 2046: 70% - Average coverage rate - 2024: 28% - 2030: 33% - 2034: 37% - 2038: 41% - 2042: 44% - 2046: 50% - Dropout rate - 2024: 2.5% - 2030: 2% - 2034: 2% - 2038: 2% - 2042: 1% - 2046: 1% - Number of Students Served: Pre-school - 2024: 213,528 - 2030: 235,665 - 2034: 250,689 - 2038: 265,713 - 2042: 280,737 - 2046: 295,761 - Number of Students Served (Basic I and II cycles) - 2024: 1,032,186 - 2030: 1,332,186 - 2034: 1,532,186 - 2038: 1,732,186 - 2042: 1,932,186 - 2046: 2,132,186 - Number of students served: Basic (3rd cycle) - 2024: 367,476 - 2030: 403,007 - 2034: 422,462 - 2038: 441,917 - 2042: 461,372 - 2046: 480,827 - Number of Students Served: Average - 2024: 219,815 - 2030: 272,559 - 2034: 305,917 - 2038: 339,275 - 2042: 372,634 - 2046: 405,992 - Schooling rate - 2024: 7.4 - 2030: 7.8 - 2034: 8.1 - 2038: 8.3 - 2042: 8.6 - 2046: 9 - Number of children at pre-primary and basic levels served with school meals nationwide - 2024: 1,222,827 - 2030: 1,355,434 - 2034: 1,443,841 - 2038: 1,534,840 - 2042: 1,628,432 - 2046: 1,743,056 - Programs linked to achievement (selected list as presented): - Community Educational Model for Local Economic Development EDUCAR - Project to Improve the Quality of Pre-basic Education in Honduras - School Infrastructure Improvement Program (PROMINE) - National Program for Digital Educational Transformation - Literacy, Basic and Secondary Education for Youth and Adults - Alternative Education for Youth and Adults - Free Tuition at Government Educational Centers - Women's City Program - Comprehensive Improvement Program for Educational Infrastructure and Training in Honduras (MIFE) - Honduran Community Education Program (PROHECO) - "Art for Life" Project to Strengthen Extracurricular Art Education for Children and Young People in High-Risk and Violence-Induced Areas - Youth Employability Project for Migration Prevention, “Creating My Future Here” - Progress with Education Project - Educating for Life Project - Our Educational Future Project Is in Honduras - Happy Return to School Project - Bright Smiles, Bright Futures ### Planned program strengthening and timelines (Table 27 summary) - Community Educational Model for Local Economic Development (EDUCAR) - Implementation through BTPs in Agroforestry Innovation and Development and BTP in Agribusiness Development; validated in 28 educational centers in western Honduras and in more than 80 centers in other regions. - 2024: EDUCAR Model scaled to southern region; Southern Agrifood Network consolidated. - During 2025: expand to northwestern and eastern regions, serving more than 70 percent of educational centers offering agroforestry programs; curriculum redesign for the third cycle aimed at technical education centers. - By end of 2025 expected outcomes: - BTPs in Agroforestry Innovation and Development and BTPs in Agribusiness Development validated; - third-cycle curriculum redesigned focusing on agroforestry; - Southern Agrifood Network consolidated; - Agro Noroccidente Network and Agro Eastern Network formed; - ITC Network's strategic plan updated to scale EDUCAR. - For 2026 and beyond: - Establish the Agro Norte Network; consolidate agroforestry sector network; implement EDUCAR nationwide. - Project to Improve the Quality of Pre-basic Education in Honduras - Objectives: improve (a) institutional capacity of the SE for preschool management; (b) pedagogical practices of preschool teachers and educators; (c) physical learning environments in targeted preschool centers. - Implemented by SE through the Project Coordinating Unit (PCU). - Completion expected in July 2025; work underway on technical justification and request for an extension of a Phase III. - Phase III proposal elements: - Evaluation and Diagnosis: analyze achievements and challenges. - Prepare official Technical Justification. - Extension Proposal: request additional financial resources, new duration (initial extension of 18 months at the proposal level), focus on rural and marginalized communities. - Key Activities in Phase III: train administrative staff and teachers; update curriculum; improve educational infrastructure. - Monitoring and Evaluation: establish monitoring system; collect feedback from educational community. - Development dates: 2025 - National Program for Digital Educational Transformation (PNTED) - Funded by IDB; implementation concluded. - Next steps: leverage intervened educational centers (devices, connectivity, trained staff), expand cooperating partners’ involvement, consider continuing licenses for educational platforms, expand use of new educational platforms, continue teacher training, create digital educational resources and communities of practice. - There are no definite dates. - Literacy, Basic and Secondary Education for Youth and Adults - José Manuel Flores Arguijo National Literacy Program began implementing ¡Sí, puedo! methodology starting in 2023. - From 2023 to December 31, 2024: 398,010 people were taught to read and write. - 2025 goal: teach 70,000 more people to read and write. - Third cycle Alternative Basic and Secondary Education programs: ISEMED, IHER, EDUCATODOS, ALFASIC will serve population aged 15 and over. - Development dates: 2025 - Alternative Education for Youth and Adults - Serve population aged 15 and over with educational gaps via Accelerated Primary Education; priority to first and second grades of Alternative Basic Education, vulnerable groups, and penitentiary centers. - Goal: serve 10,000 students in the first semester and 10,000 students in the second semester. - Development dates: 2025 - Free Tuition at Government Educational Centers - A budget of L. 684,739,063.53 implemented under the 2024 PMG, benefiting 12,867 educational centers nationwide, representing 1,266,852 students at pre-primary, elementary, and secondary levels. - Pending confirmation of the budget for 2025 distribution. - Objective for the process: 100 percent of targeted educational centers receive the benefit to improve infrastructure and pedagogical conditions. - Development dates: 2024-2025 - Comprehensive Improvement Program for Educational Infrastructure and Training in Honduras (MIFE) - Program components: continuous training methodology for teachers and students; improvements to public education infrastructure with emphasis on areas of greatest urban and rural poverty. - Infrastructure improvements: expansion/repair of educational infrastructure, provision of specialized furniture and technical educational equipment; strengthen competency-based teaching methodologies and entrepreneurship capacities. - Program status: currently underway; completion of the program in 2026. - Implementation modality: joint coordination CABEI - FHIS - SEDUC / DIGECEBI, with quarterly planning and execution throughout 2025. - There are no definite dates beyond stated completion. ### Program implementation notes and monitoring - Information on objectives, lines of action, indicators, and goals obtained from the 2022-2026 Government Strategic Plan "Preliminary Bases for the Construction of Strategic Planning of the Government of the Republic" and the 10 State-Summit SDG 2023 commitments. - The education indicator table and program list are sourced to the Secretariat of Strategic Planning, 2025. *Source: 4. Pillar 2 of the ERP: Public services and programs to reduce inequalities (chapter content provided).* ### 1. Assign PROHECO teachers to communities where there are no other ### 1hndea2026002 - 1. Assign PROHECO teachers to communities where there are no other educational alternatives ### Education: PROHECO and complementary programs - Assign PROHECO teachers to communities where there are no other educational alternatives to cover the three levels of education: pre-primary, primary, and secondary. - Train PROHECO teachers in effective pedagogical approaches for meaningful learning and promote community participation in school management. - Provide teaching materials and resources to enhance learning. - 2025 "Art for Life" Project: - Goal: participation of 3,600 students in workshops provided by teachers with a minimum duration of 40 class hours. - Workshop topics: Plastic art (drawing, painting, muralism, modeling, sculpture, wood carving, ceramics), Music art (choir, instrumental groups, student bands), Dramatic art (circus arts, mimes, puppets, language and body expression, staging of theatrical works), Audiovisual production of artistic cuts and themes, Folk dance and others related to the artistic field. - Development date: 2025 - 2025 Bright Smiles, Bright Futures: - Distribution of 90,028 Colgate Kits, including toothpaste and toothbrushes, for students in pre- and primary school (first cycle) in educational districts #1, 3, 5, 10, 14, and 15. - Kits also distributed through monitoring tours nationwide. - Development date: 2025 - National Scholarship Program (2025): - To benefit 27,800 pre-primary, primary, and secondary school students from government-run educational centers nationwide. - Single annual amount: L. 5,000.00 per student. - Beneficiary groups: students with academic excellence, students with disabilities, students with outstanding skills in the arts and sports, and students at social risk and vulnerable groups. - Objective: improve access, retention, and promotion indicators. ### Health: objective and structural diagnosis - Objective: establish a single, universal, and free public health system, with an emphasis on prevention, that guarantees comprehensive care, access to medications, treatments, and timely, immediate procedures. - Key challenges identified: - Rural areas: marked lack of services, deteriorating infrastructure, lack of electricity and water in many health centers. - Severe shortage of health personnel (doctors, nurses, psychologists, dentists, etc.). - Limited social security coverage and unequal access to sexual and reproductive health care, primarily affecting adolescents and women in vulnerable situations. - Child, nutritional, and reproductive health: compromised early childhood care including vaccination rates; malnutrition remains critical and related to economic conditions. - High teenage pregnancy rates and lack of access to contraception and family planning in low-income and rural areas. - Lack of awareness and resources for mental health; violence against women, including high rates of femicide. - Strategic orientation (Pillar 2): - Create a single, comprehensive, preventative system with primary care as core focus. - Unify supply of 100 percent of the basic supply chain for the Honduran Social Security Institute (IHSS), the Teaching Hospital, and the Ministry of Health (SESAL). - Establish a Generic Drug Molecular Laboratory to strengthen national production capacity and access to essential treatments. - Assign unemployed physicians to meet preventive needs and maximize available human resources. - Build nine new hospitals and optimize installed capacity of existing ones. - Commitment to reach 100 percent of the population with vaccination. - Implement Hospital and Health Center Network Investment Program aligned with the National SESAL Plan, including installation of a CT scanner and a first-class operating room in each municipality. - Eliminate surgical backlog and revise medical status within National Health Law to strengthen working conditions and optimize service delivery. - Expand sexual and reproductive health care, mental, dental, eye, and senior health care. ### Medication supply and logistics - Target: Supply 100 percent of the basic medication list in a unified manner for IHSS, the Teaching Hospital, and the Ministry of Health. - SESAL actions to narrow medication supply gap (in progress): - Change in methodology for estimating and scheduling medications, adjusting to actual need for each health unit. - Timely medication purchase planning with purchasing processes having sufficient lead time, considering current procurement laws and regulations. - Strengthening operability of drug storage and distribution processes. - Implementation, maintenance, and monitoring of the Drug Logistics Management System (SALMI) to ensure proper functioning of the information system and control of drug inventories. - Note: SESAL has managed to achieve a 90 percent supply of medications for the centralized network; logistical constraints make 100 percent supply not always possible (unsupplied medications during purchasing processes, increased consumption due to health emergencies, natural disasters, etc.). ### Human resources and primary care expansion - Specific actions and dates: - Strategy to extend primary care hours and enable the CEEMs with the hiring of 294 physicians nationwide. - Approval and operationalization of the national human resources policy. - Strategy for forming family health teams. - Development date: 2026 ### Create 9 hospitals — list, capacities, services, and timing - The 9 hospitals and progress: 1. Salamá Hospital, Olancho: - Second stage completed in December 2024 (earthworks and foundations). - Third stage (equipment and commissioning) underway. - Capacity: 36 beds. - Services: Internal medicine, pediatrics, general surgery, and gynecology and obstetrics. - Estimated completion and commissioning date: November 2025. 2. Santa Barbara Hospital: - Currently under construction, progress in earthworks and structural design; next stage (equipment and commissioning) underway. - Capacity: 186 beds. - Services: Pediatrics, gynecology, general surgery, internal medicine, neonatology, endocrinology, nephrology, traumatology, dermatology, cardiology, dentistry, orthopedics-traumatology, urology, gastroenterology. - Estimated completion and commissioning date: early 2026. 3. Ocotepeque Hospital: - Second stage completed in December 2024 (earthworks and foundations). - Third stage (equipment and commissioning) underway. - Capacity: 36 beds. - Services: Internal medicine, pediatrics, general surgery, gynecology and obstetrics. - Estimated completion date: November 2025. 4. Bay Islands Hospital, Roatan: - Construction began in 2017; projected area: 10,962.01 square meters. - Capacity: 93 beds. - Services: Internal medicine, pediatrics, general surgery, gynecology and obstetrics, and orthopedics. - Estimated completion and commissioning date: early 2026. 5. Tocoa Hospital, Colón: - Currently under construction, progress in earthworks and structural design. - Capacity: 109 beds. - Services: Internal medicine, pediatrics, general surgery, gynecology and obstetrics, cardiology, physical medicine and rehabilitation, and orthopedics. - Estimated completion and commissioning date: early 2026. 6. Choluteca Hospital: - Currently under construction, progress in earthworks and structural design. - Capacity: 159 beds. - Services: Pediatrics, general surgery, gynecology and obstetrics, physical medicine and rehabilitation, nephrology, and dialysis unit. - Estimated completion and commissioning date: early 2026. 7. Trauma Hospital in Tegucigalpa: - Designs, site, and environmental studies underway. - Capacity: 160 beds. - Services: Outpatient Clinic, Emergency Room, Operating Room, Inpatient Clinic, Imaging, Teaching, Laboratory, Transfusion Service, CEYE (Emergency Medical Center), Morgue, General Services, Intensive Care Unit, Intermediate Therapy Unit, Blood Bank, Pharmacy. - Estimated start date: Construction is projected to begin in late 2026. 8. Trauma Hospital in San Pedro Sula: - Designs, site, and environmental studies underway. - Capacity: 150 beds. - Services: Outpatient Clinic, Emergency Room, Operating Room, Inpatient Clinic, Imaging, Teaching, Laboratory, Transfusion Service, CEYE (Center for the Study of the Blood and Endocrinology), Morgue, General Services, Intensive Care Unit, Intermediate Therapy Unit, Blood Bank, Pharmacy. - Estimated start date: Construction is projected to begin in late 2026. 9. Bay Islands Emergency Hospital, Roatan: - Equipment and commissioning are underway. - Capacity: 40 beds. - Services: Internal medicine, pediatrics, general surgery, gynecology and obstetrics. *Source: 1hndea2026002 - 1. Assign PROHECO teachers to communities where there are no other educational alternatives* ### 9. Bay Islands ### 9. Bay Islands ### Health infrastructure and service expansion (Bay Islands — Roatán) - Emergency Hospital, Roatán — Estimated start date: May 2025. - Ensure vaccination of 100% of the population. - Implementation of the plan to increase vaccination coverage. - National vaccination and deworming day. - Follow-up vaccination campaign for measles, rubella, and polio. - Develop the Investment Program for the Hospital and Health Center Network, covering national, regional, and local areas, in accordance with the SESAL National Plan. - Each municipality will also have a first-class CT scanner and operating room. - Strengthening the response capacity of the SESAL hospital network through the acquisition of medical and electromechanical equipment, financed with external funds, to improve the efficiency, effectiveness, and sustainability of health services. - Estimated budget executed for this equipment: L 378,933,177.19 during the 2024 period. - Draft the National Health System Law. - Preparation and approval of the proposed document for the National Health System Law. - Current SESAL responsibility: providing medications for the centralized health network (20 Health Regions and 28 Hospitals). - Eliminate surgical backlog (targeted actions and status: In progress). - Development of the national plan to reduce surgical backlog. - Planning gynecology and surgery brigades in priority hospitals. - Remodeling and equipping operating rooms to increase surgical hours. - Expand sexual and reproductive health care. - National Plan for the Reduction of Maternal Mortality: Maternal Health, Neonatal Health, and Family Planning Protocols updated to improve quality of care. - Expansion target year: 2026. - Expand mental, dental, eye, and senior care network (2025 actions). - Submission of the mental health policy proposal. - Delivery of the proposed mental health law. - Strategy to increase ophthalmologic care coverage via outpatient ophthalmologic care clinics in: Colinas Santa Barbara, Siguatepeque Comayagua Polyclinic, and San Felipe Hospital. - Draft manual of prioritized dental procedures for outpatient care. - Expansion of the national vaccination schedule (2025). - Introduction of the dengue virus vaccine. - Introduction of the Hexavalent vaccine. - Increase in number of specialist physicians in the public health system. - Contest for specialist doctors: 2024. - Expansion of services with the construction of 9 hospitals (in progress). - Increase in number of scholarships for national and international postgraduate studies. - Training of specialized resources with pandemic funds: training will begin in 2025. - Improve coordination of programs for nutrition, early childhood protection, sex education, and public-health-related behaviors. - Coordination with SIGADENA and SENAF; ongoing every year. - Awareness and family planning. - Updated Family Planning Care Protocol, including ECPs; training of 200 (alternate entry says 299) human resources to improve quality of care, counseling, and access to modern methods; communications campaign coordination with the Social Communication Unit — 2026. - Pharmaceutical procurement and supply improvements (2026). - Change in methodology for estimating and scheduling medications to actual need per health unit. - Timely medication purchase planning with sufficient lead time while considering procurement laws. - Search for alternative purchasing mechanisms for hard-to-obtain medications. - Increase in technical personnel for disease prevention campaigns (dengue) — 2024-2025. - Training of Entomologists for vector control activities. - Recruitment of resources during dengue emergency. - Expansion of maternal and child health services (2026). - Training in maternal health services and obstetric emergencies: 1,394 human resources. - Basic medications and necessary equipment available to provide care. - Improve data collection and statistics for decision-making. - Updating and implementing statistical forms for primary sources. - Automation of manual information collection processes. - Interoperability of information systems for decision-making. - Single integrated electronic health record — actions in progress; the single electronic file is in the pilot phase. ### Health indicators and targets (Pillar 2 of the Strategy) - Maternal mortality ratio (per 100,000 live births) - Baseline 2024: 47 - Goals: 2030: 45; 2034: 40; 2038: 38; 2042: 36; 2046: 34 - Under-five mortality rate (per 1,000 live births) - Baseline 2024: 21 - Goals: 2030: 20; 2034: 18; 2038: 16; 2042: 15; 2046: 14 - Number of family health teams (ESFAM) - Baseline 2024: 343 - Goals: 2030: 343; 2034: 343; 2038: 349; 2042: 349; 2046: 352 - Percentage of supply of basic medicines in the Public Health System - Baseline 2024: 90 - Goals: 2030: 92; 2034: 94; 2038: 96; 2042: 98; 2046: 99 - Construction of a drug laboratory - Baseline 2024: 0 - Goals: 2030: 0; 2034: 1; 2038: 0; 2042: 0; 2046: 0 - Percentage of surgical delay - Baseline 2024: 59 - Goals: 2030: 39; 2034: 19; 2038: 0; 2042: 0; 2046: 0 - Ratio of doctors per 10,000 inhabitants - Baseline 2024: 10.83 - Goals: 2030: 14; 2034: 16; 2038: 18; 2042: 19; 2046: 20 - Ratio of nurses per 10,000 inhabitants - Baseline 2024: 4.14 - Goals: 2030: 16; 2034: 25; 2038: 30; 2042: 35; 2046: 40 - Incidence rate of diarrhea in children under 5 years of age (per thousand inhabitants) - Baseline 2024: 88 - Goals: 2030: 85; 2034: 83; 2038: 80; 2042: 78; 2046: 75 ### Decent employment (Pillar 2 commitments and targets) - Objective: Improve access to labor market, create decent employment, focus on youth, women, vulnerable groups; promote technical capacity development and microenterprise creation with seed capital (priority to single mothers). - Microenterprises with seed capital via rural banks, Banhprovi, Banadesa, and "Brother/Sister, Come Home" program — 2025. - Employment indicators and goals: - New jobs created - Baseline 2024: 85,879 - Goals: 2030: 100,000; 2034: 120,000; 2038: 130,000; 2042: 140,000; 2046: 150,000 - Unemployment rate - Baseline 2024: 5.2 - Goals: 2030: 4.5; 2034: 4; 2038: 3.8; 2042: 3.5; 2046: 3 - Underemployment rate - Baseline 2024: 43.3 - Goals: 2030: 37; 2034: 31; 2038: 25; 2042: 19; 2046: 13 - Informal employment - Baseline 2024: 40.2 - Goals: 2030: 38; 2034: 35; 2038: 30; 2042: 25; 2046: 20 - IHSS Coverage - Baseline 2024: 896,472 - Goals: 2030: 1,100,000; 2034: 1,300,000; 2038: 1,500,000; 2042: 1,700,000; 2046: 2,000,000 ### Productive activities in the field (agriculture, fisheries, and rural development) - National Agricultural Census (CAN): pilot test, training, and official data collection completed; scheduled results release in the last quarter of 2025 (implementation phase: June 2024-April 2025). - Key programs incorporated into SAG budget: COMRURAL, PROOCIDENTE, PROSASUR, among others. - Selected lines of action and timelines: - COMRURAL II and III to incorporate subsistence producers into commercial stage — in implementation. - Establish 2,007 Rural Savings and Credit Funds (CACR) — January 2025-December 2026. - Presidential production input bonuses (Productive Technology Bonus, Coffee voucher, Livestock Bond) — From March to December of each year. - Agrifood Extension Program (priority to Dry Corridor municipalities) — February-December 2025. - Strengthen government support services and agribusiness environment — February-December 2025. - National irrigation and water resource strategy: national study, update irrigation master plan, update irrigated area records — 2025-2026. - Reactivation of BANADESA, creation of FINAGRO unit — Every year. - Parametric Agricultural Insurance program for corn and bean producers in specified departments — January 2025. - Mechanisms to guarantee production: social bonds, irrigation kits (1 to 4 hectares), release of two corn and bean seed varieties (SENASA certification in process) — 2025. - Free, prior, and informed consultation with Indigenous and Afro-descendant communities for projects — 2022-2024. - Innovation and sustainability actions (Rural Competitiveness Program) — 2025. - SAG restructuring and SISAGRO implementation — 2024-2025. - Production and productivity targets (Table 33 highlights): - Production of basic grains (millions of quintals) - Baseline 2024: 19,685.51 - Goals: 2030: 21,290.60; 2034: 22,541.84; 2038: 23,793.07; 2042: 25,044.30; 2046: 26,295.54 - Hectares under irrigation (number of ha) - Baseline 2024: 2,432 - Goals: 2030: 2,000; 2034: 2,000; 2038: 2,000; 2042: 2,000; 2046: 2,000 - Number of productive technological bonds - Baseline 2024: 536,971 - Goals: 2030: 280,000; 2034: 280,000; 2038: 280,000; 2042: 280,000; 2046: 280,000 - Corn productivity (quintals per manzana) - Baseline 2024: 35 - Goals: 2030: 40; 2034: 42; 2038: 44; 2042: 46; 2046: 50 - Bean productivity (quintals per manzana) - Baseline 2024: 14.6 - Goals: 2030: 16.5; 2034: 17.5; 2038: 18.5; 2042: 20; 2046: 22 - Total amount of credit disbursed to the agricultural sector (millions of Lempiras) - Baseline 2024: 1764 - Goals: 2030: 6500; 2034: 7,000.00; 2038: 7,500.00; 2042: 7,500.00; 2046: 7,500.00 - Total amount of credit disbursed to the agri-food sector (Millions of Lempiras) - Baseline 2024: 1,148.41 - Goals: 2030: 1,453.10; 2034: 1,699.93; 2038: 1,988.67; 2042: 2,326.47; 2046: 2,721.64 - Notable projects and timelines (selection): - COMRURAL III — February 2025 to December 2027. - Strengthening Urban Water Supply — February 2025 to December 2026. - Productive Technological Bonus Program — Each year, February to December. - PRONAGRI — Each year, February to December. - PDABR — February 2025 to December 2025. - PROINORTE — February 2025-December 2027. - Water Security Project in the Dry Corridor — February 2025-December 2026. - KoLFACI projects (manure transformation; GHG research) — 2025-2026. - Surveillance and control of animal diseases; phytosanitary surveillance — 2026. ### Universal housing, water and sanitation (Pillar 2 targets) - Objective: Universalize access to housing with drinking water and sanitation; prioritize increasing homeowner families, property legalization, continuous high-quality access to drinking water, sanitation, and solid waste collection. - Indicators and targets: - Quantitative housing deficit (preliminary) - Baseline 2024: 161,475 - Goals: 2030: 113,886; 2034: 113,772; 2038: 113,658; 2042: 113,544; 2046: 113,430 - Qualitative housing deficit (preliminary) - Baseline 2024: 1,571,692 - Goals: 2030: 1,108,490; 2034: 1,107,381; 2038: 1,106,273; 2042: 1,105,166; 2046: 1,104,060 - Percentage of housing with access to energy - Baseline 2024: 88.2 - Goals: 2030 onward: 100 - Electricity coverage index - Baseline 2024: 86.2 - Goals: 2030: 93; 2034: 95; 2038: 100; 2042: 100; 2046: 100 - Electricity generation renewability index - Baseline 2024: 52.30% - Goals: 2030: 70%; 2034: 74%; 2038: 80%; 2042: 79%; 2046: 78% ### Sports and recreation - Objective: Promote access to sports and recreation as collective rights; institutionalize CONDEPOR; draft law awaiting approval. - Key actions: - Recognition of sports and recreation as collective rights via PCM 11-2022 — CONDEPOR created; a bill submitted to the Presidency (law awaiting approval; no specific date). - Preventive and corrective maintenance, reconstruction, and construction of sports and recreational facilities — permanently and continuously. - Promotion of sports disciplines (soccer, basketball, volleyball, swimming): execution of activities, athlete support, donation of clothing and equipment — permanently and continuously. - Indicators and targets: - Number of sports and recreational spaces reconstructed and improved - Baseline 2024: 32 - Goals: 2030: 80; 2034: 95; 2038: 105; 2042: 113; 2046: 115 - Number of sports and recreational spaces built - Baseline 2024: 43 - Goals: 2030: 116; 2034: 146; 2038: 174; 2042: 209; 2046: 239 - Number of sports scholarships - Baseline 2024: 0 - Goals: 2030: 440; 2034: 880; 2038: 1320; 2042: 1980; 2046: 2970 ### Culture and heritage of the peoples - Objective: Promote arts and culture, support creators, strengthen national identity; approve Law on Culture, Arts and Heritage; create Observatory of Cultures; expand cultural infrastructure and creative industries. - Key actions and status: - Approve the Law on Culture, Arts and Heritage — draft law in the Office of Ministers — targeted 2025. - Promote arts and culture via community arts education, cultural festivals, public spaces, expansion of Houses of Culture and Public Library Network — significant progress 2022-2024; implementing units expanding each year. - Create the Observatory of Cultures with access to the cultural satellite account — 2024. - Creation of creative cultural industries and PICCCCMAH (project for music and visual arts clusters) — 2024-2025; PICCCCMAH benefits: 26,653 people directly and 36 municipalities. - SECAPPH achievements 2022-2024 (reported progress): - More than 216,000 people directly benefited from programs during 2022-2024. - Houses of Culture increased from 12 in 2022 to 50 in 2024. - Public library network increased from 15 in 2022 to 93 in 2024. - Historic investment approximately 74 million lempiras in vehicles, equipment, instruments, printing machinery, etc. - Indicators and targets: - Network of Cultural Centers in municipalities - Baseline 2024: 50 - Goals: 2030: 60; 2034: 70; 2038: 80; 2042: 90; 2046: 100 - Public library network - Baseline 2024: 93 - Goals: 2030: 133; 2034: 153; 2038: 173; 2042: 193; 2046: 213 - Number of Hondurans benefiting from art and culture programs - Baseline 2024: 216,009 - Goals: 2030: 960,293; 2034: 997,282; 2038: 1,259,046; 2042: 1,589,516; 2046: 2,006,728 - Observatory of Cultures - Baseline 2024: 100% - Goals: 2030 onward: 100% *Source: Secretariat of Strategic Planning, 2025 (chapter: 9. Bay Islands).* ### 5. Pillar 3 of the ERP: Programs focused on the population living in poverty and ### 5. Pillar 3 of the ERP: Programs focused on the population living in poverty and vulnerable groups ### Overview: asset approach and scope - Poverty reduction in Honduras is framed by the asset approach in the Conceptual Framework: addressing structural roots by promoting accumulation and productive use of human, physical, financial, and social capital. - Poverty is characterized as more than lack of income; it is linked to absence of the fundamentals needed to generate sustainable opportunities. - National initiatives cited as part of the Social Protection System and the third pillar of the PRS include: the Solidarity Network, PROASOL, Solidarity Scholarships, and Free Energy (a subsidy for poor households consuming less than 150 kWh). - Pillar 3 consists of targeted programs with clear eligibility criteria for people living in poverty, extreme poverty, or vulnerability; unlike the ERP second pillar, these actions are not universal. ### Targeting, institutional roles, and delivery modalities - Entities with mandates to empower poor and vulnerable populations include SEDESOL, PROASOL, and the Solidarity Network; they complement ministries by providing territorially focused, personalized services and by identifying excluded groups via targeting tools and community work. - Targeted delivery modalities include direct cash delivery supported by personalized certificates with unique codes, photographic records, and on-site verification by Red Solidaria technical staff; mobile units equipped with ATMs are used for hard-to-reach communities. - A gradual transition to mixed schemes combining in-person delivery with electronic methods—such as bank transfers and digital payments—is being considered where infrastructure exists. - The Solidarity Network prioritizes localized, participatory planning and social oversight to tailor interventions to rural areas, indigenous communities, and marginalized urban neighborhoods. ### Solidarity Network: mandate, history, coverage, and priorities - Created originally in 2006, restructured in 2022 by Executive Decree PCM-08-2022 and institutionally created as a decentralized and autonomous entity attached to the Secretariat of State in the Office of Social Development. - Purpose: execute projects assigned or pre-designed by the Secretariat focused on progressively improving living conditions and access to social protection mechanisms for households living in poverty and extreme poverty. - Due to budgetary constraints, the Solidarity Network currently prioritizes its actions in 2,007 villages. - While 70 percent of the Solidarity Network's budgeted resources are allocated to CCTs, the Network expands social policy into a broader development policy by integrating training, investment and savings promotion, and employment-generation measures. ### Six areas of intervention (summary) - The Solidarity Network concentrates support in the following six areas of intervention: 1. Infrastructure: investments in educational, healthcare, and communications infrastructure, housing, and basic services (electricity, water, sewage) to expand capabilities and improve family and community environments. 2. Health and nutrition: ensure adequate nutrition and support use of health services to develop human capabilities. 3. Education: support and services to enable families to access educational services. 4. Protection: individual and collective insurance mechanisms, non-contributory pensions for people lacking social security, and related protections. 5. Income opportunities: job training; initiatives to facilitate women's incorporation into market-based productive activities; microcredit; housing improvements or construction to build wealth; and support for productivity in home-based work. 6. Local strengthening: participatory local-level planning, strengthening local capacities for planning, monitoring (social oversight), and administrative management. ### Solidarity Network packages and key actions - Comprehensiveness principle: packages of goods and services are implemented sequentially within the same territory. - The six packages and examples of their structured services/actions: - Educational package - Actions to reduce illiteracy and increase adult basic education coverage. - Expansion of coverage and improvement of the quality of Pre-basic and Basic Education, with emphasis on the third cycle. - Expansion of coverage and quality of Secondary Education in rural areas through alternative modalities. - Provision of school meal services in targeted communities. - Actions to reduce absenteeism, grade repetition, and school dropout. - Implementation of the Free Enrollment Program as an incentive for children to enter the education system. - Health package - Promotion (via Family Health Teams—ESFAM): self-care and healthy lifestyles; primary health care; Integrated Community Child Care (AIN-C) and Integrated Management of Childhood Illness (IMCI/AIEPI); exclusive breastfeeding; prenatal, childbirth, postpartum, and newborn care; sexual and reproductive health; primary environmental health and community surveillance; micronutrient-rich food promotion; strengthening health committees; rational use of health services. - Prevention: micronutrient supplementation; sustained vaccination for children; human papillomavirus (HPV) vaccination for adolescents; folic acid administration to girls from age 12; sexual and reproductive health and family planning education; vaccination, supplementation, early pregnancy detection, family planning, and cervical cytology for women; adolescent workshops; vaccination and supplementation for older adults. - Care: treatment and management for prevalent diseases for children (deworming; acute diarrheal disease management; ARI management; skin problem treatment; growth and development monitoring); women of reproductive age (prenatal care; institutional childbirth care; postpartum care; family planning; cervical cytology; oral health during pregnancy); adolescents (differentiated family planning and sexual/reproductive health care); older adults (management of respiratory symptoms; chronic degenerative diseases; urinary tract infections; sexually transmitted infections; emerging diseases including COVID-19; vector-borne diseases—malaria, dengue, leishmaniasis; clinical laboratory services; diagnostic imaging services including ultrasound; emergency care). - Social protection package - Minimum income support to help households with basic consumption. - Promotion of human capital development. - Cash transfers to households in extreme poverty with children and adolescents ages 6 to 18 who are enrolled in the public school system, conditional on registration and attendance of at least 80% of school days in any of the national education system’s modalities. - Encouraging attendance at health checkups for children under five and for pregnant and postpartum women. - Strengthening and establishing the social protection network. - Creating the Solidarity Fund for the Disability Sector. - Infrastructure package - Housing: improvement or replacement of housing; construction of eco-stoves and/or eco-cookers; infrastructure providing dignified spaces with legal security; provision of basic services including roof replacement, wall plastering, floor construction, or replacement/provision of a minimum housing unit for new homes. - Water and sanitation: improvement of water intake sources (repairs, cleaning, etc.); construction of drinking water systems; construction of basic sanitation works. - Health and education infrastructure: improvement of educational facility infrastructure; classroom equipment (furniture); construction of school classrooms; improvement and construction of small health centers; equipment for small health centers. - Environment: protection of micro-watersheds; restoration of public forest areas; training on forest management. - Income opportunities package - Promotion of self-employment. - Support for entrepreneurship with equal participation of women and men. - Improvement of family productive and management capacity through strengthened skills, abilities, and competencies. - Improvement of household income by linking families to markets where they can sell products under favorable conditions for producers. - Improvement of family diet by access to nutritious and varied food produced through family initiatives. - Participation in more dynamic markets with value-added products, encouraging productive and income diversification, especially for indigenous or rural family agriculture. - Organization, creation, and strengthening of rural savings and loan groups as alternative financing and capital-building mechanisms; support for community stores and basic goods/input sales; support for community projects. ### Implementation notes and operational links - Some interventions are carried out directly by the Solidarity Network (e.g., cash transfers); others are implemented by partner actors (e.g., PROASOL implements School Lunch Programs; SESAL implements Family Health Teams). - The Solidarity Network’s CCT modality currently uses direct cash delivery with on-site verification and mobile ATM units for remote deliveries, with consideration for gradual mixed in-person and electronic payment schemes to improve efficiency and transparency. *Source: 5. Pillar 3 of the ERP: Programs focused on the population living in poverty and vulnerable groups (PDF chapter).* ### 1. Includes training activities on human rights, local leadership, social and solidarity ### 1. Includes training activities on human rights, local leadership, social and solidarity economy, and family care. ### Implementation strategy and objectives - Red Solidaria uses a gradual introduction strategy in villages, sequentially incorporating each benefit to trigger a virtuous cycle of asset accumulation and the generation of productive opportunities. - Goal: empower communities to take ownership of projects, generate their own resources, achieve sustainability, and become financially independent from government support. - Village classification is by phase based on deficiencies in the six intervention areas of the Solidarity Network; classification maps package components for progressive implementation. ### Phases of progression toward "graduation" - Concept involves three progressive phases toward the “graduation” of families and villages, defined as the moment when capacities and context for sustainable development are available. - Phase 1 (focus on most pressing needs; initial protection and basic services): - Protection: basic income, senior citizen bonuses, disability bonuses for eligible individuals. - Health: prioritize the "care" component of the basic package. - Education: school meals, a sixth-grade educational kit, pre-school centers, literacy programs, free tuition. - Infrastructure: ensure safe drinking water and sanitation for all families. - Income opportunities: focus on family diets. - Local empowerment: training in family care and human rights. - Phase 2 (adds to Phase 1 benefits where urgent needs are addressed but essential gaps remain): - Health: access to the basic package with promotional benefits. - Education: increased coverage for third-level education and secondary education with alternative modalities. - Infrastructure: housing improvement and improvement of health and education infrastructure. - Income opportunities: investments to expand productive capacity through capacity building. - Local strengthening: training of local leaders and social oversight. - Phase 3 (retains previous phases’ benefits and adds further elements): - Health: basic prevention package. - Education: investments in information and communications technologies in schools; expansion of educational services for 10th grade. - Infrastructure: new housing and the basic environmental package. - Income opportunities: self-employment facilities, rural banks, market linkages, participation in more dynamic markets. - Local strengthening: training in the social and solidarity economy. - Completion of Phase 3: households expected to reach sustainable productivity status; Solidarity Network "graduation" achieved; linkage to other types of public support. ### Implementation challenges and data inputs - Challenges: structuring services and actions corresponding to basic packages and their incorporation into sectoral plans and budgets; requires systematic coordination with Pillar 2 (through each institution's Institutional Strategic Plans). - Between 2022 and 2024, the Single Social Record was compiled in more than 400,000 households in the 2,007 targeted villages, providing a precise snapshot of population needs to determine service gaps and structure goods and services packages. ### Actions and projects operating through the Solidarity Network (selected descriptions) - Sister, Brother Come Home: - Distributes cards redeemable at BANASUPRO: value of L4,000 in two L2,000 cards; goal to benefit 10,000 people so far. - Activated through PCM-08-2025, Article 7, establishing creation of the program for economic and social reintegration of returned migrants. - SENPRENDE provides a Solidarity Bonus: initial financial assistance of L 2,000 for returning adult migrants, an additional bonus of USD 100 for people over 18 years of age, and USD 1,000 in seed capital to boost entrepreneurship. - Social Protection Program II (IDB 5681): - Aim: reduce the percentage of households living in relative and absolute poverty by providing access to education, healthcare, entrepreneurship training, social protection, social development initiatives, infrastructure, and food security. - Credit program for agroindustry and rural banks (CABEI 2332 / CABEI 2248 SECTION B): - Aim: improve living conditions of the poor and extremely poor by strengthening productive and associative skills of micro, small, and medium-sized producers and entrepreneurs linked to rural banks; facilitate access to favorable credit terms; promote establishment and strengthening of rural banks. - Establishment of the Solidarity Fund for the Disability Sector: - Repository of national and international financial resources to improve living conditions of persons with disabilities; funds projects aligned with five strategic lines and Sustainable Development Goals; annual funding via public calls; community organizations may apply. ### Lines of action and commitment dates for Red Solidaria - Implement a budget allocation for the Red Solidaria Program to ensure resource allocation to selected villages; specific steps for Ministry of Finance coordination and budget registry proposed. Development date: 2025. - Expand coverage of the Program to vulnerable urban areas through urban census identifying 120,000 households. Development date: 2026. - Note: Annex reports annual coverage and budget projections for 2022-2025. ### PROASOL (Solidarity Action Program) mandate, mission, and components - Created under Executive Decree PCM-20-2022 as a decentralized entity of SEDESOL with technical, administrative, and financial autonomy; mandate to provide social care to vulnerable groups. - Mission: respond to inclusive social care needs to develop opportunities and empower most vulnerable social groups prioritized by social policy, contributing to personal, family, and social development within community resilience and sustainability. - Program axes: social assistance, human empowerment, educational strengthening, complementary health care. - Two main strategic programs: - Social Promotion and Care Program: assist vulnerable populations to identify and strengthen technical and social capacities via training, health assistance, entrepreneurship promotion, and social assistance. - National School Feeding Program (school snacks): provide supplies for daily nutritious and safe food to all children in pre-primary and elementary government-run centers nationwide, with cross-cutting interventions (indigenous peoples, vulnerability, gender, Solidarity Network). ### Target vulnerable groups for PROASOL - Vulnerable school-age children. - Homeless people living on the streets. - Migrants returned by force. - People with disabilities. - Vulnerable older adults. - Displaced and affected by natural disasters, pandemics, epidemics and other risks. - People discriminated against and/or lacking access to medical care due to chronic or contagious diseases. - Displaced persons or victims of crimes resulting from violence. - Ethnic minorities discriminated against for roots in indigenous peoples or Afro-descendants. - People addicted to any type of drug. - People discriminated against for belonging to the LGBTIQ+ community. - Human Rights Defenders. - Other groups designated by the country's Public Policy on Social Protection. ### PROASOL governance, information systems, and transfers - Programs and projects identified through social information systems and State technical tools; next steps include strengthening the Social Development Observatory to identify eligible beneficiaries and PROASOL’s targeting systems. - Increased budget allocations and on-site presence planned to promote identification and referral to State services. - Monetary transfers operated by PROASOL include: - My Scholarship to Climb the Ladder: monetary transfers to students in vulnerable situations across all educational levels in the country's eighteen departments. - Monetary aid (Bono Esperanza, Bono Oro, Bono Rosa, Bono Valiente, and Solidaridad): vouchers and monetary transfers as economic, social, and survival contributions. - Social and humanitarian aid (Cajas de la Esperanza): food assistance and short-term survival supplies to residents in areas vulnerable to natural disasters. ### PROASOL budget and coverage - Total budget: L 1.42 billion, representing less than 1 percent of GDP, according to 2024 figures. - School meals account for more than 72 percent of the Program's total budget; remainder distributed to various vulnerable groups including older adults, people with disabilities, women, and children. - Planned lines of action and development dates (from strategic plan in validation stage): - Update of beneficiaries: 2026. - Improvement in quality of services: 2026. - Development of strategic alliances: 2025. - Analysis of coverage gaps: 2026. - Offer of new services: 2026. - Interinstitutional strengthening: 2026. - Note: Annex provides annual coverage and budget projections for 2022-2025. ### Other actions for people living in poverty and vulnerability - Solidarity Scholarship Program: provide various scholarships to youth living in poverty, extreme poverty, and/or social vulnerability to strengthen capacities and access to education. - Free Energy Program: - Subsidy for residential ENEE subscribers who consume up to 150 kilowatt hours (kWh) per month. - During 2024, more than 800,000 low-income Honduran families benefited, receiving electricity free of charge. - ENEE subsidies as percentage of GDP: 0.7 percent in both 2023 and 2024; planned to reach 0.6 percent in 2025. ### Indicators and targets for Pillar 3 (Red Solidaria and PROASOL) - Savings and credit institutions in urban and rural areas with local development capacity in extremely poor communities: - Baseline 2024: 3,600; Goals 2030: 3,600; 2034: 3,600; 2046: 3,600. Program: Solidarity Network. - Credits granted by rural banks (millions): - Baseline 2024: 20; Goals 2030: 20; 2034: 20; 2046: 20. Program: Solidarity Network. - Number of people self-employed directly through Rural Banks: - Baseline 2024: 36000; Goals 2030: 36000; 2034: 36000; 2046: 36000. Program: Solidarity Network. - Community Councils or solidarity roundtables in villages focused on extreme poverty and poverty: - Baseline and goals: - - - - (no values). Program: Solidarity Network. - Number of families living in poverty and extreme poverty that receive conditional transfers: - Baseline 2024: 217,254; Goals 2030: 217,254; 2034: 217,254; 2046: 217,254. Program: Solidarity Network. - Number of families living in poverty and extreme poverty that receive monetary transfers: - Baseline 2024: 65,586; Goals 2030: 65,586; 2034: 65,586; 2046: 65,586. Program: PROASOL. - Number of families in vulnerable conditions that receive social or humanitarian aid: - Baseline 2024: 111,000; Goals 2030: 111,000; 2034: 111,000; 2046: 111,000. Program: PROASOL. - Number of people in vulnerable conditions who receive training and support for technical, productive, social and entrepreneurial skills: - Baseline 2024: 3,698; Goals 2030: 3,698; 2034: 3,698; 2046: 3,698. Program: PROASOL. - Number of children in vulnerable situations at the pre-primary, basic and secondary levels who benefited from non-monetary aid: - Baseline 2024: 64,810; Goals 2030: 64,810; 2034: 64,810; 2046: 64,810. Program: PROASOL. - Number of students belonging to vulnerable groups benefiting from scholarships for the three levels: - Baseline 2024: 33,198; Goals 2030: 33,198; 2034: 33,198; 2046: 33,198. Program: PROASOL. - Number of children at pre-primary and basic levels served with school meals, nationwide: - Baseline 2024: 1,329,522; Goals 2030: 1,329,522; 2034: 1,329,522; 2046: 1,329,522. Program: PROASOL. *Source: Secretariat of Strategic Planning, 2025* ### 6. Transversal axes of the ERP ### 6. Transversal axes of the ERP ### 6.1. Gender — Objective and strategic focus - Objective: Protect and promote the human rights of women and girls, ensure gender equality at all levels of decision-making, include women and girls in the digital transformation, support women entrepreneurs, and reduce unpaid domestic and care work. Also, eliminate all forms of gender-based discrimination and violence, and guarantee universal access to sexual and reproductive health and reproductive rights. - Cross-cutting alignment: Linked to the Sustainable Development Goals and consistent with the Third Plan for Equality and Gender Justice of Honduras 2023-2033 (III PIJGH). - Identified challenges: - Poverty disproportionately affects women; female-headed households face greater economic hardship and higher incidence of extreme poverty. - Teenage pregnancies reflect limited access to family planning and comprehensive sexuality education. - High rates of femicide and widespread lifetime experience of violence among women, with psychological violence most common. - Lower labor market participation for women; many young women lack access to education or employment. - Women spend significantly more time than men on unpaid work. - Priorities: - Increase targeted investment in gender issues and mainstream gender and women's human rights across public institutions. - Promote female leadership and political representation. - Expand comprehensive care coverage in health, with emphasis on sexual and reproductive health. - Increase prosecutions of domestic violence cases to reduce impunity. ### Lines of action and development timing (Table 45 — selected entries) - Increase targeted investment in gender issues - Review and update of the General Budget Provisions with a Gender Focus to be submitted to the National Congress and approved for the following fiscal year (2026). - Monitoring compliance with the 2025 Provisions of the General Budget of Revenue and Expenditure of the Republic. - Technical Roundtables meet every month of the year; Strategic Roundtables every three months; Gender Hearings every six months. - Continue Gender Marking strategy in its second Traceability phase. - Mainstreaming the gender and women's human rights approach in public institutions - Creation of the National Women's Policy and its Action Plan - IIIPIJGH. - Provision of tools and methodology for gender mainstreaming in 110 institutions; activities planned through 2025. - Increase women's political participation in elected positions - Leadership training processes in Choluteca, Olancho, Francisco Morazán, and El Paraíso. - Training with Commonwealth representatives in La Paz, Choluteca and El Paraíso. - Training in Human Rights, Planning and Gender-Sensitive Budgeting in Santa Bárbara, Comayagua, La Paz. - Technical assistance to the National Electoral Council and the Electoral Court of Justice for gender mainstreaming. - Gender Parity Initiative implemented through the IIIPIJGH, supported by the IDB; activities planned for 2025. - Increase female participation in the labor market - Through the Gender Parity Initiative with the IDB; activities planned for 2025. - Increase the number of domestic violence cases prosecuted - Through the PNM's "Right of Women and Girls to a Life Free from Violence" pillar; Monitoring Committee for the Implementation of the Law Against Domestic Violence led by SEMUJER; activities planned for 2025. - Strategy for the Promotion of Sexual and Reproductive Health for Honduran Youth - Training for Municipal Women's Offices nationwide; two campaigns targeting adolescents and young people; MEC of Ciudad Mujer addresses adolescent sexual and reproductive health through educational centers; activities planned for 2025. ### Ciudad Mujer (Women's City) — program modules and services - Program purpose: Provide comprehensive care, support, and assistance to women, seek to eradicate violence against women, and promote gender equality. - Coverage: Centers operate in six Honduran cities — Tegucigalpa, Choloma, San Pedro Sula, Ceiba, Choluteca, and Juticalpa. - Module 1: "Attention and Protection of Women's Rights" — highlighted services: - Psychological Processes (specialized psychological support for women victims and survivors of violence). - Self-help groups. - Experience Sharing Days. - Life and Safety Plans (workshops). - Gender and Human Rights Awareness and Empowerment. - Module 2: "Community Education" — educational and prevention programs: - Gender and Women's Human Rights Educational Programs for municipalities with Ciudad Mujer Centers. - Training for Parents and/or Guardians in Gender and Women's Human Rights. - Training of Trainers in Gender and Women's Human Rights. - H&M Strategy for Adolescents (training on gender and human rights, new masculinities, sexual and reproductive rights). - Community Education Program for Femicide Prevention. - Single Gender-Based Violence (GBV) Prevention Days. - Celebration and Commemoration of Key Dates for Women's Human Rights. ### Indicators and goals of the gender strategy (Table 46 — exact values) - Gender Reversal Index - Baseline 2024: 4.8% - 2030: 6.8% - 2034: 8.8% - 2038: 10.8% - 2042: 12.8% - 2046: 14.8% - Contributing programs: Strategy for the Promotion of Sexual and Reproductive Health for Honduran Youth; National Solidarity Credit Program for Rural Women (CREDIMUJER); Women's City Program; Economic Empowerment Program; Young Women's Autonomy Program; Women's Citizenship Construction Program; Strengthening Women's Right to Decide Program; consulting and provision of tools and methodology for gender mainstreaming; legislative reforms; training and empowerment actions; support for women's networks; institutional support; awareness campaigns; education and awareness; support for victims; training of law enforcement. - Number of institutions that mainstream the gender approach in public management - Baseline 2024: 36 - 2030–2046: 110 (110 for each target year listed) - Percentage of women in elected positions - Baseline 2024: 19.6% - 2030: 25.2% - 2034: 30.7% - 2038: 30.7% - 2042: 30.7% - 2046: 30.72% - Percentage of women in deputy positions - Baseline 2024: 32.4% - 2030: 43.1% - 2034: 53.7% - 2038: 53.7% - 2042: 53.7% - 2046: 53.7% - Percentage of women in mayoral positions - Baseline 2024: 6.8% - 2030: 7.3% - 2034: 7.7% - 2038: 8.2% - 2042: 8.2% - 2046: 8.8% - Number of domestic violence cases resolved by courts nationwide - Baseline 2024: 15,111 - 2030: 21,417 - 2034: 25,621 - 2038: 29,825 - 2042: 34,029 - 2046: 38,233 - Gender Inequality Gap Index - Baseline 2024: 0.7260 - 2030: 0.789 - 2034: 0.831 - 2038: 0.873 - 2042: 0.915 - 2046: 0.957 - Source for indicators and goals: Secretariat of Strategic Planning, 2025. ### Plans to strengthen gender programs (Table 47 — selected program plans and dates) - Strategy for the Promotion of Sexual and Reproductive Health for Honduran Youth - Training for Municipal Women's Offices (OMM) nationwide on Human Rights, Gender, Sexual and Reproductive Rights, and Violence Prevention for community replication. - Two campaigns for adolescents and young people: Strategic campaign for information, communication, and prevention of HIV/AIDS and other STIs; Campaign on consequences of alcohol and addictive substance use and their relationship with sexual behavior and teenage pregnancy. - Through the Community Education Module of Ciudad Mujer, the H&M strategy addresses adolescent sexual and reproductive health in educational centers. - Development date: 2025. - National Solidarity Credit Program for Rural Women (CREDIMUJER) - Budget allocation increased from 5 million lempiras in 2022 to 25 million lempiras in 2025. - SEMUJER and SENPRENDE will form a team to ensure effective use of funds; training sessions planned for entrepreneurs to organize and access credit. - Development date: 2025. - Women's City Program — expansion and infrastructure improvements - Objectives: Expand coverage to rural and marginalized areas; renovate and modernize existing CCMs; prioritize construction in vulnerable communities; ensure accessibility for women with disabilities; establish monitoring and evaluation. - Implementation modality: Joint Coordination Ciudad Mujer Honduras – SEDUC/DIGECEBI. - Construction of a new Women's City Center planned for Santa Rosa de Copán with coverage for four additional departments: Lempira, Copán, Ocotepeque, and Intibucá. - Development date: 2025, with quarterly planning and execution (subject to budget approval). - Economic Empowerment Program - Focus via the National Women's Policy - Third Plan for Equality and Gender Justice on rural and urban women heads of households; emphasize training, access to financing, and creation of support networks to increase income and participation in economic decision-making. - Development date: 2025. - Young Women's Autonomy Program - Focus on strengthening decision-making capacities of young women in rural and high-poverty areas through technical skills training, empowerment, and access to economic and social opportunities; Community Education Module to deliver Training of Trainers and related activities. - Development date: 2025. - Women's Citizenship Construction Program - Focus on leadership development and empowerment for participation in public and community decision-making. - Development date: 2025. - Strengthening Women's Right to Decide Program - Training in women's human rights, international human rights regulations, and gender-sensitive planning and budgeting for women leaders. - Development date: 2025. *Source: 1hndea2026002 - 6. Transversal axes of the ERP (Secretariat of Strategic Planning, 2025).* ### 1. Expansion of Ciudad Mujer Centers (CCM) - Objective: Expand ### 1. Expansion of Ciudad Mujer Centers (CCM) - Objective: Expand ### Objectives and Actions - Objective: Expand coverage to serve more women in rural and marginalized areas. - Actions: - Construct new CCMs and expand existing ones in communities with high demand. - Renovate and modernize current CCMs by evaluating and repairing infrastructure and creating multifunctional spaces for workshops and services. - Prioritize construction in vulnerable communities and guarantee accessibility for women with disabilities. - Establish a monitoring system to evaluate the use and satisfaction of beneficiaries. ### Implementation plan - When: Throughout 2025, with quarterly planning and execution. - How: Joint Coordination Ciudad Mujer Honduras – SEDUC/DIGECEBI. - Conditionality: 2025 activities are subject to budget approval. ### Expected outcomes - Create adequate spaces for services and empower women in their communities. - Increased geographic coverage in rural and marginalized areas and improved accessibility for women with disabilities. --- ### Monitoring and Evaluation (policy recommendation) - Establish a monitoring system to evaluate: - Use of CCM services. - Beneficiary satisfaction. - Effectiveness of renovated or newly constructed multifunctional spaces. --- ### Climate change — strategic actions, targets, and indicators ### Strategic objective - Promote inclusive, sustainable, and resilient economic development that strengthens adaptation and mitigation to the effects of climate change and extreme events, integrating policies for the conservation and sustainable use of natural resources. ### Summary of planned institutional/strategic actions (with development dates) - Update of the NDC (Nationally Determined Contributions) in 2021; Honduras has already begun its NDC 3.0 process. — End of 2025 - Implementation of the National Decarbonization Strategy starting in 2022, with a mitigation horizon of 2050; roadmap in place. — Progress by the end of 2025 - Proposal and drafting of a National Climate Empowerment Strategy (scheduled for publication in December 2024). — Progress by the end of 2025 - Draft update of the Climate Change Law; draft to be submitted to National Congress. — End of 2025 - National Climate Financing Policy: legal groundwork underway; develop first draft. — Progress by the end of 2025 - National Resilient Recovery Strategy: developed, socialized, and approved; implement action plan. — Progress by the end of 2025 - Damage and Loss Fund / National Loss and Damage Mechanism: legal groundwork through Climate Change Law update. — Progress by the end of 2025 - Climate Library and Monitoring System / SNMCC: IT platform with modules including "Biblioclima." — Mid-2025 - Environmental and Social Safeguard System: planned actions include analysis, evaluation, strategic proposal for SIS, implementation and monitoring, and development of a financial mechanism. — Mid-2025 - CABEI and Carbon Footprint: an electronic tool for calculating the corporate carbon footprint is available and expected to be implemented through SNMCC operations. — Progress by the end of 2025 ### Notable sectoral investments - ENEE's National Loss Reduction Program: investment of L5,287,141 million lempiras during the 2025-2030 period. ### Indicators and targets of the climate change strategy (Table 49) - New forest areas incorporated into restoration processes (hectares) - Baseline 2024: 192,828 - Goals: 210,000 (2030), 140,000 (2034), 140,000 (2038), 140,000 (2042), 140,000 (2046) - Current, updated and/or approved forest management plans in community forestry areas for the comprehensive use of forest resources - Baseline 2024: 37 - Goals: 49 (2030), 57 (2034), 65 (2038), 73 (2042), 81 (2046) - Assisted community forest management contracts - Baseline 2024: 60 - Goals: 65 (2030), 69 (2034), 73 (2038), 77 (2042), 81 (2046) - Productive forest area under forest management plan - Baseline 2024: 1,366,565 - Goals: 1,390,565 (2030), 1,406,565 (2034), 1,422,565 (2038), 1,438,565 (2042), 1,454,565 (2046) - Number of declared micro-basins - Baseline 2024: 1,334 - Goals: 3,850 (2030), 4,000 (2034), 4,150 (2038), 4,250 (2042), 0 (2046) - Percentage of forest cover - Baseline 2024: 55.44% - Goals: 53.72% (2030), 52.58% (2034), 51.44% (2038), 50.30% (2042), 49.16% (2046) - Percentage of marine areas under conservation and protection regime - Baseline 2024: 6.96 - Goals: 11.6 (2030), 12.1 (2034), 15 (2038), 16 (2042), 18.5 (2046) ### Complementary emergency and social protection instruments - SEDESOL has an Internal Protocol for Dealing with Emergency Situations (in draft version) that outlines steps from anticipatory actions to post-intervention. - SEDESOL’s Humanitarian Aid Plan: delivery of food rations as immediate response to emergencies. - Solidarity Network (Social Protection axis) has an Adaptive Social Protection structure enabled through Ministerial Agreement No. 036-2022 Article 71, allowing emergency TMCs, Humanitarian Cash Transfers, and redefinition of TMCs to mitigate emergency impacts; actions executed when COPECO dictates sector guidelines and currently acting according to the SEDESOL emergency protocol. --- *Source: 1hndea2026002 - 1. Expansion of Ciudad Mujer Centers (CCM) - Objective: Expand* ### 8. Fiscal Framework of the ERP ### 8. Fiscal Framework of the ERP ### MMFMP framework and macro-fiscal context - The MMFMP Framework serves as the roadmap guiding strategic economic and fiscal policy decisions and constitutes the first step in formulating the General Revenue and Expenditure Budget of the Republic. - The General Budget is based on the Operating and Strategic Plans of each public sector institution. - The MMFMP includes: - a description of fiscal execution figures at the end of the periods and the outlook for the next four years; - the economic and fiscal policy guidelines linked to the Government's Strategic Program. - The Macroeconomic Framework includes the future behavior of the main macroeconomic variables and the expected fiscal outcomes for the short and medium term. - Fiscal estimates are: - based on the national context and the country's priorities; - aimed at improving public financial management and reducing social inequalities; - consistent with the Multi-Year Fiscal Performance Rules established in the LRF and with targets in economic programs with international organizations. - The estimates made in the MMFMP are monitored every six months. ### Fiscal policy orientation and objectives - Fiscal policy is oriented toward a gradual return to fiscal consolidation while creating fiscal space to boost productive investment to support economic growth, job creation, and vulnerable sectors. - Commitment to maintaining prudent levels of public debt and adopting fiscal policy measures anchored to the LRF (Financial Framework for Fiscal Reduction). - Actions to improve tax collection efficiency to enlarge fiscal space (detailed in Chapter 3). ### Fiscal goals and numerical targets - Fiscal space for productive investment is included in the economic program with the IMF and in the fiscal estimates, allowing for a larger NFPS deficit if financing is obtained to implement programs and projects. - 2025 targets: - NFPS deficit target of 2.5 percent of GDP has been set for the current MMFMP. - This deficit includes fiscal space of 1.0 percent of GDP, allocated to productive investment. - The deficit target for 2025 was set below the established target of 3.4 percent of GDP. - 2026-2029 outlook: - Short- and medium-term fiscal forecasts are anchored to due compliance with the FRL for the 2026-2029 period. - Forecasts estimate a gradual decline in the fiscal deficit as part of a fiscal consolidation process, while preserving fiscal space for productive investment. - Strengthening enforcement capacity of tax oversight agencies is expected. ### Measures to strengthen public spending efficiency and fiscal management Planned measures during the current administration with medium- and long-term impact: - Move towards a Medium-Term Expenditure Framework. - Adopt and implement a budget execution programming manual to strengthen expenditure control. - Develop a salary policy (currently lacking). - Conduct a more detailed analysis of the Fiscal Rules based on the country's current needs, recognizing that deficits will need to be gradually reduced and fiscal space will shrink. - Continue progress in serving the most vulnerable sectors; maintain a minimum level of social investment and significant levels of productive investment, anchored to the LRF or to possible reforms/interpretations thereof. - Continue implementing the Government's economic program supported by the agreement with the IMF. - Encourage well-calibrated methodologies for measuring fiscal risks. - Monitor the amendment to the Organic Budget Law (submitted to Congress in 2024) to strengthen the Single Treasury Account. - Strengthen technical, regulatory, procedural, and implementation capabilities for the development of the Single Fund. - Maintain prudent levels of public debt and access financing resources to cover needs and fiscal spaces for productive and social investment through programs, projects, and budgetary support. - Encourage the development of the domestic financial market. - Implement budget allocation according to Institutional Strategic Plans, incorporating goals and service packages of the Solidarity Network Program to prioritize goods and services for the poorest populations and territories. ### Institutional and organizational capacities for ERP implementation - Effective implementation of the PRS depends on government's ability to organize and execute actions efficiently. - Historical institutional and budgetary weaknesses have limited consistent implementation of social protection, resulting in partial and fragmented coverage. - Fiscal policy has slightly reduced inequality but has increased poverty more than in any other country in the region. - Government implemented a major institutional restructuring to establish new governance and strategic management to strengthen the social protection system; this process is in its infancy and requires sustained strengthening in: - (i) institutional capacity; - (ii) budget allocations to sectors prioritized by the Social Protection Floor and the Updated Poverty Reduction Strategy; - (iii) the State's capacity to convert resources into public goods and services that improve living conditions and enable household contribution to economic growth. - Necessary continuation of strengthening the institutional framework (regulatory, organizational, and technical) at central and territorial levels to progressively operationalize the Comprehensive Social Protection System, including governance, strategic management, clarifying actors/competencies, ensuring coordination, avoiding duplication, and strengthening monitoring and oversight mechanisms. - Promotion of a technical and sustainable civil service is required. ### Substantial reforms required for a Comprehensive Social Protection System The strategy is organized into six areas requiring substantial reform: - Strengthen governance (central and territorial levels) and strategic leadership (regulations, identification of actors, etc.). - Enhance institutional, technical, and budgetary capacity, especially at the territorial level (mapping of service networks, identification of gaps, prioritization/targeting of actions, territorial planning/budgeting, etc.). - Develop protection subsystems for specific groups/themes aligned and articulated with the Comprehensive Social Protection System. - Implement strategies to strengthen resilience of the vulnerable to climate shocks. - Generate synergies with the productive and economic sector. ### Governance of the Social Cabinet - The Social Cabinet is the primary governance mechanism for the social sector: a space to coordinate, articulate, organize, and provide feedback with institutions comprising the government's social sector. - Purpose: promote and validate mechanisms that respond to social needs and structure public policies aimed at development and social protection of the most vulnerable populations. - Structure: - SEDESOL is responsible for leading PRS actions, largely supported by SEFIN and the SPE, and serves as the main coordinating body of the Social Cabinet. - The Cabinet is chaired by the Secretary of State in the Office of Social Development and is organized into two main levels: - Executive Social Cabinet (political level; executive direction of policies). - Technical Team (technical level; implementation of programs and projects). - Operationally, the Technical Team is composed of directors, coordinators, and delegated staff from each institution, organized through a Technical Directorate; the Executive Cabinet includes an Executive Directorate. - Within the ERP, the Cabinet is made up of 15 government entities that have planning, programming, and coordination functions and/or participate in the supply of goods and services within pillars 2 and 3 of the ERP. - A total of 42 institutions are assigned to the Social Cabinet; the selection prioritizes those with direct responsibility for effective ERP implementation. ### Social Cabinet functions within the Strategy Key roles and responsibilities: - Prioritize execution of policies, programs, and projects defined in the three pillars of the Strategy. - Implement solutions to reduce technical and administrative risks in the Strategy's operation to avoid impacts on implementation. - Provide, guide, and share updated information to enable participating institutions to prepare their AOPs, ensuring programs/projects are supported by relevant data to reduce poverty. - Sign agreements, accords, and technical and financial cooperation instruments with public and private institutions and organizations to achieve Strategy goals. - Disseminate achievements and challenges of the PRS to promote transparency and citizen engagement. - Promote training activities to strengthen skills and capabilities of actors comprising the Cabinet. - Facilitate ongoing dialogue mechanisms between public and private sectors to promote synergies improving social conditions. - Assume any other functions assigned by the Presidency of the Republic. ### Inter-institutional coordination mechanisms - The Social Cabinet has an Internal Technical Committee responsible for coordinating and articulating efforts among the various entities comprising the Cabinet. - Four main powers linked to Strategy implementation: 1. Coordination: Integrate SEDESOL's areas with state institutions responsible for interventions in the ERP, including program design, information generation, evidence production, and human resource training. 2. Coordination: Establish efficient and effective links with implementing entities of the Strategy and other institutions involved in development and poverty reduction; create spaces/mechanisms to collaborate with private sector and other relevant social actors. 3. Feedback: Provide strategies and actions that benefit participating entities, generating comprehensive solutions that mitigate technical and administrative risks and ensure correct implementation of policies, programs, and projects. 4. (Implied continuation of coordination/oversight roles as part of committee functions within the operational framework.) *Source: 8. Fiscal Framework of the ERP (from the provided chapter).* ### 4. Organization: Systematize lines of action and procedures through tools such as the ### 4. Organization: Systematize lines of action and procedures through tools such as the ### Institutional tools and coordination mechanisms - Institutional Program Offer Registry (ROPI), the AOP Regulation, and the Program Offer Monitoring System (SIMOP) are the proposed tools to allow effective measurement of program and project impact relative to the Strategy's goals. - Internal Technical Committee plays a fundamental coordinating and articulating role for the Strategy. - SEDESOL's Intersectoral Coordination Directorate: - Links the Secretariat with other implementing institutions to generate efficient and effective coordination. - Focuses on coordinating sectoral and intersectoral efforts and creating alliances with the private sector and other stakeholders. - Acts as liaison between the Red Solidaria Program and the Poverty and Vulnerability Observatory. - Promotes a comprehensive approach through management tools and methodologies to strengthen interventions in priority regions. - Establishes agreements with the Strategic Monitoring Directorate to define and monitor key indicators. - Ensures continuous, transparent, and effective monitoring of actions relevant to the PRS. - Social Cabinet: - Articulated through a regulatory and operational framework to ensure effective implementation of public policies for the most vulnerable. - Legal basis for inter-institutional collaboration in Honduras includes: the General Law of Public Administration of Honduras; the Regulations on the Organization, Functioning, and Powers of the Executive Branch (Executive Decree PCM-008-97); and Executive Decree PCM-19-2022. ### Governance advances under the 2022-2026 administration (progress reported) - Creation and institutional changes: - In 2022, SEDESOL was created to strengthen the regulatory and guiding role in social policy and occupy a central position within social sector secretariats. - Implementation of social protection programs and projects was transferred to the Solidarity Network Program and PROASOL. - Legal and procurement progress: - SEDESOL, with IDB support, has led creation of a draft Social Protection Framework Law scheduled to be submitted to Congress. - Progress made drafting a new Public Procurement Law to be submitted to the National Congress to streamline bidding and procurement (notably medicines and infrastructure). - Interinstitutional cooperation: - Promotion and signing of Interinstitutional Cooperation Agreements among government entities, NGOs, academia, and international organizations. - Formalized agreement between the Ministry of Health and the Solidarity Network to build and equip key hospitals in collaboration with the Pan American Health Organization. - Data, targeting, and local agents: - Agents of change established in 2,007 targeted villages; they support territorial project execution and data collection. - Collection of data from more than 400,000 households in poverty and extreme poverty. - Information systems milestones: - Launch of the Single Social Sector Information System (SUISS) planned for the first quarter of 2025; presented as a commitment to the IMF to centralize social intervention information. - Implementation of SIMOP to register the institutional program offering of the social sector; statistics to date: - 29 social sector entities have registered 136 programs and projects with interventions in the country's 298 municipalities, with detailed georeferencing of the benefited villages. - SIMOP enables graphic mapping of institutional interventions and clarifies executing entities. ### Systems developed by SEDESOL and related institutions - SEDESOL systems supporting institutional operations and the ERP's programs and actions: - Management Planning and Evaluation System: institutional strategic planning, goal monitoring, and budget execution. - Social Inclusion and Gender Equity Information System: coordination of gender equity activities. - Honduras Beneficiary Information and Registry System (SIRBHO): socioeconomic registry of vulnerable households. - Returned Migrant Assistance System (SIAMIR): registry of repatriated migrants. - ROPI: Registry of Institutional and Social Organization Program Offerings. - SEDESOL Listens: managing complaints, reports, and claims for citizen participation. - Geostatistics and Spatial Econometrics System. - Examples of other institutional improvements: - SEFIN: Public Finance Statistics Manual; Budget Execution Programming and Cash Management Manual; website interface for monitoring budget execution; updates to SIAFI modules. - SECAPPH: field monitoring guides; functions manual; appointment process for an internal auditor. - SAG: internal process manuals; standard for acquisition of technological goods and services; Data Center modernization including virtual storage; accountability platform for delivery of social benefits. - SESAL: Single Integrated Health Record (EUIS); Logistics Management Information System for Medications and Supplies (SALMI); expanded hospital data network connectivity; Logistics Unit for Medications and Supplies. - SEDUC: National Educational Information System of Honduras (USINIEH) centralizes SEDUC information systems and subsystems. ### Identified gaps and integration needs - Despite system development progress, a need exists to link these instruments to sectoral planning and budgeting exercises and to target programs by territory and population subgroup. - Improved connection of information reported by different systems with management processes is required to enrich decision-making. ### Future actions and key proposed measures (ERP implementation period) - General objective: design a collaborative management model integrating all actors involved in Policy formulation and implementation, ensuring horizontal and vertical coordination across government levels and with civil society, private sector, academia, and international cooperation agencies. - Strengthen managerial and strategic capacities across institutional architecture from the Social Cabinet down to directors, coordinators, and operational/technical teams. - Reflect strengthened capacities in sectoral planning and budgeting with a territorial focus via Institutional Strategic Plans. - Key actions SEDESOL and stakeholders will collaborate on: 1. Creation of the Operating Regulations for the Poverty Reduction Strategy 2022-2046 to establish guidelines, procedures, and mechanisms for effective, coordinated, and transparent implementation; strengthen coordination, optimize resources, foster accountability, and promote achievement of established goals. 2. Development of a detailed institutional diagnosis to identify gaps in institutional development and organizational and territorial gaps to inform organizational strengthening strategies. 3. Development of standardized guidelines to ensure uniform structure and essential core elements for all inter-institutional agreements, including incorporation of the PEIs to align ERP priorities with State management processes. 4. Establishment of a robust monitoring mechanism to ensure compliance with agreement responsibilities and the effectiveness of inter-institutional collaborations. 5. Design of clear and transparent operating rules for social programs detailing diagnosis, design, eligibility and operation criteria, indicators, goals, and results. 6. Strengthening an evaluation and monitoring system to operate under a results-based management model, facilitating impact measurement and informed decision-making; includes design, process, and outcome evaluations and development of Public Expenditure Tracking Surveys (PETS). 7. Strengthening a transparency and accountability system to allow Honduran population access to and understanding of policy content and program functioning, focusing on population subgroups and territories; provide relevant information in easy-to-understand formats and accessible channels (both physically and culturally). - Note: Actions 1, 3 and 6 were identified as part of the consultancy; their validation is requested. *Source: Extract from 4. Organization: Systematize lines of action and procedures through tools such as the (ERP implementation section).* ### 10. Implementation Plan ### 1hndea2026002 - 10. Implementation Plan ### Overview - The PRS implementation plan establishes concrete goals, precise indicators, and responsible areas by sector with a comprehensive territorial approach and biannual targets to monitor and evaluate progress toward poverty reduction and inclusive growth. - The ERP intervention plan is organized by Pillar 2 (public services and programs to reduce inequalities) and Pillar 3 (heritage and the Solidarity Network and PROASOL). - The plan anticipates periodic reviews to adapt to changes in macroeconomic and social conditions. ### Pillar 2 — Public services and programs to reduce inequalities #### Poverty - Households in poverty: Baseline 62.9% with goals 58.8% (2030), 52.8% (2034), 47.8% (2038), 37.8% (2042), 27.8% (2046). Responsible: General. - Households in extreme poverty: Baseline 40.1% with goals 36% (2030), 30% (2034), 25% (2038), 15% (2042), 5% (2046). Responsible: General. - Inequality index: Baseline 0.49 with goals 0.45 (2030), 0.40 (2034), 0.30 (2038), 0.20 (2042), 0.10 (2046). Responsible: General. - ERP expenditure as a percentage of GDP (2023 baseline): 7% maintained across 2030–2046. Responsible: General. #### Education - Illiteracy rate: Baseline 9.39 with goals 8.04 (2030), 7.14 (2034), 6.24 (2038), 5.35 (2042), 4.0 (2046). Responsible: SEDUC. - Coverage rates: - Pre-basic coverage rate: 74% baseline; goals 79% (2030), 83% (2034), 86% (2038), 90% (2042), 95% (2046). Responsible: SEDUC. - Basic coverage rate (I and II cycle): 79% baseline; goals 83% (2030), 86% (2034), 88% (2038), 91% (2042), 95% (2046). Responsible: SEDUC. - Basic coverage rate (III cycle): 49% baseline; goals 54% (2030), 57% (2034), 61% (2038), 65% (2042), 70% (2046). Responsible: SEDUC. - Average coverage rate: 28% baseline; goals 33% (2030), 37% (2034), 41% (2038), 44% (2042), 50% (2046). Responsible: SEDUC. - Dropout rate: 2.5% baseline; goals 2% (2030), 2% (2034), 2% (2038), 1% (2042), 1% (2046). Responsible: SEDUC. - Number of students served: - Pre-school: 213,528 baseline; goals 235,665 (2030), 250,689 (2034), 265,713 (2038), 280,737 (2042), 295,761 (2046). Responsible: SEDUC. - Basic I and II cycles: 1,032,186 baseline; goals 1,332,186 (2030), 1,532,186 (2034), 1,732,186 (2038), 1,932,186 (2042), 2,132,186 (2046). Responsible: SEDUC. - Basic (3rd cycle): 367,476 baseline; goals 403,007 (2030), 422,462 (2034), 441,917 (2038), 461,372 (2042), 480,827 (2046). Responsible: SEDUC. - Average: 219,815 baseline; goals 272,559 (2030), 305,917 (2034), 339,275 (2038), 372,634 (2042), 405,992 (2046). Responsible: SEDUC. - Schooling rate: 7.4 baseline; goals 7.8 (2030), 8.1 (2034), 8.3 (2038), 8.6 (2042), 9 (2046). Responsible: SEDUC. - Number of children at pre-primary and basic levels served with school meals nationwide: 1,222,827 baseline; goals 1,355,434 (2030), 1,443,841 (2034), 1,534,840 (2038), 1,628,432 (2042), 1,743,056 (2046). Responsible: SEDUC. #### Health - Maternal mortality ratio (per 100,000 live births): 47 baseline; goals 45 (2030), 40 (2034), 38 (2038), 36 (2042), 34 (2046). Responsible: SESAL. - Under-five mortality rate (per 1,000 live births): 21 baseline; goals 20 (2030), 18 (2034), 16 (2038), 15 (2042), 14 (2046). Responsible: SESAL. - Number of Family Health Teams (ESFAM): 343 baseline; goals 343 (2030), 343 (2034), 349 (2038), 349 (2042), 352 (2046). Responsible: SESAL. - Percentage of supply of basic medicines in the Public Health System: 90 baseline; goals 92 (2030), 94 (2034), 96 (2038), 98 (2042), 99 (2046). Responsible: SESAL. - Construction of drug laboratories: 0 baseline; goal 1 (2034). Responsible: SESAL. - Percentage of surgical delay: 59 baseline; goals 39 (2030), 19 (2034), 0 (2038), 0 (2042), 0 (2046). Responsible: SESAL. - Ratio of doctors per 10,000 inhabitants: 10.83 baseline; goals 14 (2030), 16 (2034), 18 (2038), 19 (2042), 20 (2046). Responsible: SESAL. - Ratio of nurses per 10,000 inhabitants: 4.14 baseline; goals 16 (2030), 25 (2034), 30 (2038), 35 (2042), 40 (2046). Responsible: SESAL. - Incidence rate of diarrhea in children under 5 years of age (per 1,000 inhabitants): 88 baseline; goals 85 (2030), 83 (2034), 80 (2038), 78 (2042), 75 (2046). Responsible: SESAL. #### Employment - New jobs created: 85,879 baseline; goals 100,000 (2030), 120,000 (2034), 130,000 (2038), 140,000 (2042), 150,000 (2046). Responsible: General. - Unemployment rate: 5.2 baseline; goals 4.5 (2030), 4 (2034), 3.8 (2038), 3.5 (2042), 3 (2046). Responsible: General. - Underemployment rate: 43.3 baseline; goals 37 (2030), 31 (2034), 25 (2038), 19 (2042), 13 (2046). Responsible: General. - Informal employment: 40.2 baseline; goals 38 (2030), 35 (2034), 30 (2038), 25 (2042), 20 (2046). Responsible: General. - IHSS Coverage: 896,472 baseline; goals 1,100,000 (2030), 1,300,000 (2034), 1,500,000 (2038), 1,700,000 (2042), 2,000,000 (2046). Responsible: General. #### Productive activities in the field - Production of basic grains (millions of quintals): 19,685.51 baseline; goals 21,290.60 (2030), 22,541.84 (2034), 23,793.07 (2038), 25,044.30 (2042), 26,295.54 (2046). Responsible: DICTA. - Hectares under irrigation (number of ha): 2,432 baseline; target 2,000 across 2030–2046. Responsible: PRONAGRI. - Number of productive technological bonds: 536,971 baseline; goal 280,000 across 2030–2046. Responsible: Ministerial Office of the SAG. - Number of livestock bonds: 15,000 baseline; goal 15,000 across 2030–2046. Responsible: Under-Secretary of Livestock. - Number of coffee bonds: 90,000 baseline; goals 85,000 across 2030–2046. Responsible: Secretary of Coffee Growing. - Crop productivity (quintals per manzana): - Corn: 35 baseline; goals 40 (2030), 42 (2034), 44 (2038), 46 (2042), 50 (2046). Responsible: SAG. - Bean: 14.6 baseline; goals 16.5 (2030), 17.5 (2034), 18.5 (2038), 20 (2042), 22 (2046). Responsible: SAG. - Rice: 44 baseline; goals 54 (2030), 58 (2034), 62 (2038), 66 (2042), 70 (2046). Responsible: SAG. - Technical assistance provided: 36,041 baseline; goal 30,000 across 2030–2046. Responsible: SAG. - Total amount of credit disbursed to the agricultural sector (millions of Lempiras): 1,764.00 baseline; goals 6,500.00 (2030), 7,000.00 (2034), 7,500.00 (2038), 7,500.00 (2042), 7,500.00 (2046). Responsible: SAG. - Total amount of credit disbursed to the agri-food sector (Millions of Lempiras): 1,148.41 baseline; goals 1,453.10 (2030), 1,699.93 (2034), 1,988.67 (2038), 2,326.47 (2042), 2,721.64 (2046). Responsible: SAG. - Total amount of credit disbursed for the housing sector (Millions of Lempiras): 3,760.82 baseline; goals 4,758.64 (2030), 5,566.93 (2034), 6,512.52 (2038), 7,618.73 (2042), 8,912.83 (2046). Responsible: SAG. #### Housing, water and sanitation, and energy - Quantitative housing deficit: 161,475 baseline; goals 113,886 (2030), 113,772 (2034), 113,658 (2038), 113,544 (2042), 113,430 (2046). Responsible: BANHPROVI. - Qualitative housing deficit: 1,571,692 baseline; goals 1,108,490 (2030), 1,107,381 (2034), 1,106,273 (2038), 1,105,166 (2042), 1,104,060 (2046). Responsible: BANHPROVI. - Percentage of housing with access to energy: 88.2 baseline; goal 100 across 2030–2046. Responsible: ENEE. - Electricity coverage index: 86.2 baseline; goals 93 (2030), 95 (2034), 100 (2038–2046). Responsible: ENEE. - Electricity generation renewability index: 52.30% baseline; goals 70% (2030), 74% (2034), 80% (2038), 79% (2042), 78% (2046). Responsible: ENEE. #### Sports and recreation - Number of sports and recreational spaces reconstructed and improved: 32 baseline; goals 80 (2030), 95 (2034), 105 (2038), 113 (2042), 115 (2046). Responsible: CONDEPOR. - Number of sports and recreational spaces built: 43 baseline; goals 116 (2030), 146 (2034), 174 (2038), 209 (2042), 239 (2046). Responsible: CONDEPOR. - Number of sports scholarships: 0 baseline; goals 440 (2030), 880 (2034), 1320 (2038), 1980 (2042), 2970 (2046). Responsible: CONDEPOR. #### Culture and heritage - Network of Cultural Centers in municipalities of Honduras expanded: 50 baseline; goals 60 (2030), 70 (2034), 80 (2038), 90 (2042), 100 (2046). Responsible: Unit of Houses of Culture. - Public library network expanded: 93 baseline; goals 133 (2030), 153 (2034), 173 (2038), 193 (2042), 213 (2046). Responsible: General Directorate of Books and Documents. - Number of Hondurans benefiting from art and culture programs: 216,009 baseline; goals 960,293 (2030), 997,282 (2034), 1,259,046 (2038), 1,589,516 (2042), 2,006,728 (2046). Responsible: SECAPPH implementing units (Directorate of Artistic Training and Education, Directorate of Arts, Cultures, and Heritage, Directorate of Books and Documents). - The Observatory of Cultures: 100% baseline and maintained 100% through 2046. Responsible: Unit of Houses of Culture. ### Pillar 3 — Programs focused on serving population in poverty and vulnerable groups #### Solidarity Network and PROASOL - Savings and credit institutions in urban and rural areas with local development capacity in extremely poor communities: 3,600 baseline and constant across 2030, 2034, 2046. Responsible: Solidarity Network. - Credits granted by rural banks (millions): 20 baseline and constant across 2030, 2034, 2046. Responsible: Solidarity Network. - Number of people self-employed directly through Rural Banks: 36,000 baseline and constant across 2030, 2034, 2046. Responsible: Solidarity Network. - Community Councils or solidarity roundtables in villages focused on extreme poverty: not specified (-). Responsible: Solidarity Network. - Number of families living in poverty and extreme poverty that receive conditional transfers: 217,254 baseline and constant across 2030, 2034, 2046. Responsible: Solidarity Network. - Number of families living in poverty and extreme poverty that receive monetary transfers: 65,586 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. - Number of families in vulnerable conditions that receive social or humanitarian aid: 111,000 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. - Number of people in vulnerable conditions who receive training and support for technical, productive, social and entrepreneurial skills: 3,698 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. - Number of children in vulnerable situations at pre-primary, basic and secondary levels who benefited from non-monetary aid: 64,810 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. - Number of students belonging to vulnerable groups benefiting from scholarships for the three levels: 33,198 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. - Number of children at pre-primary and basic levels served with school meals, nationwide: 1,329,522 baseline and constant across 2030, 2034, 2046. Responsible: PROASOL. ### Transverse axes #### Gender - Gender Reversal Index: 4.8% baseline; goals 6.8% (2030), 8.8% (2034), 10.8% (2038), 12.8% (2042), 14.8% (2046). - Number of institutions that mainstream the gender approach in public management: 36 baseline; goal 110 across 2030–2046. Responsible: SEMUJER units (Public Policy Unit; Education Unit; Health Unit; Economic Unit; Social and Political Participation Unit; Violence Prevention Unit). - Percentage of women in elected positions: 19.6% baseline; goals 25.2% (2030), 30.7% (2034, 2038, 2042), 30.72% (2046). Responsible: National Electoral Council (CNE). - Percentage of women in deputy positions: 32.4% baseline; goals 43.1% (2030), 53.7% (2034–2046). Responsible: SEMUJER. - Percentage of women in mayoral positions: 6.8% baseline; goals 7.3% (2030), 7.7% (2034), 8.2% (2038, 2042), 8.8% (2046). Responsible: SEMUJER. - Number of domestic violence cases resolved by courts nationwide: 15,111 baseline; goals 21,417 (2030), 25,621 (2034), 29,825 (2038), 34,029 (2042), 38,233 (2046). Responsible: Supreme Court of Justice. - Gender Inequality Gap Index: 0.7260 baseline; goals 0.789 (2030), 0.831 (2034), 0.873 (2038), 0.915 (2042), 0.957 (2046). Responsible: SEMUJER. #### Climate Change - New forest areas incorporated into restoration processes (hectares): 192,828 baseline; goals 210,000 (2030), 140,000 (2034–2046). Responsible: SAG. - Current, updated and/or approved forest management plans in community forestry areas: 37 baseline; goals 49 (2030), 57 (2034), 65 (2038), 73 (2042), 81 (2046). Responsible: SAG. - Assisted community forest management contracts: 60 baseline; goals 65 (2030), 69 (2034), 73 (2038), 77 (2042), 81 (2046). Responsible: SAG. - Productive forest area under forest management plan: 1,366,565 baseline; goals 1,390,565 (2030), 1,406,565 (2034), 1,422,565 (2038), 1,438,565 (2042), 1,454,565 (2046). Responsible: SAG. - Number of declared micro-basins: 1,334 baseline; goals 3,850 (2030), 4,000 (2034), 4,150 (2038), 4,250 (2042), 0 (2046). Responsible: SAG. - Percentage of forest cover: 55.44% baseline; goals 53.72% (2030), 52.58% (2034), 51.44% (2038), 50.30% (2042), 49.16% (2046). Responsible: SAG. - Percentage of marine areas under conservation and protection regime: 6.96 baseline; goals 11.6 (2030), 12.1 (2034), 15 (2038), 16 (2042), 18.5 (2046). Responsible: SAG. ### Risk matrix — principal risks, probabilities, impacts, and mitigation measures - Risk categories: financial; technical or management; political and social; contextual or external. - Selected risks, probability, impact, mitigation measures and responsible actors: - Lack of resources through external financing to make productive investments: Probability Average; Impact High. Mitigations: broad portfolio of multilateral/bilateral organizations; fungibility figures to issue Sustainable Sovereign Bonds. Responsible: SEFIN (General Directorate of Public Credit (DGCP) and the DPMF). - Risks in macroeconomic assumptions: Probability Low; Impact Average. Mitigation: act precisely through economic policy measures. Responsible: SEFIN-BCH. - Low inter-institutional coordination: Probability Medium; Impact High. Mitigations: establish coordination guidelines, specific mechanisms, inter-institutional agreements. Responsible: SEDESOL. - Low execution of programs and projects due to lack of installed capacity and qualified executing units: Probability Average; Impact High. Mitigations: maintain bank of projects with designs and priority rating; ensure timely management and monitoring by implementing units; SEFIN created a unit within DGCP to monitor implementation. Responsible: Social Cabinet. - Lack or inconsistencies of information for Monitoring and Evaluation: Probability Medium; Impact Medium. Mitigation: create Monitoring and Evaluation guidelines with actions, responsibilities, timelines, resources. Responsible: Results-Based Management Directorate (DIGER). - Poor fund management: Probability Medium; Impact High. Mitigation: strengthen internal controls (independent audits), transparency and accountability mechanisms. Responsible: SEFIN, SEDESOL. - Lack of gender focus in implementation: Probability Medium; Impact Medium. Mitigations: train officials in gender perspectives, establish equality goals and indicators, include gender perspective in monitoring and evaluation. Responsible: SEDESOL, SEMAN. - Loss of political support for the Strategy over the years: Probability Medium; Impact High. Mitigations: design communication campaigns; engage community leaders, civil society, media; share results; develop transition plan for continuity. Responsible: Social Cabinet (SEDESOL). - Low citizen participation: Probability Medium; Impact High. Mitigation: disseminate information campaigns, involve NGOs and community leaders. Responsible: SEDESOL. - Negative exogenous events undermining implementation capacity (e.g., security crisis, pandemic): Probability Medium; Impact High. Mitigations: multisectoral contingency plans; strengthen early warning systems; train officials in crisis management. Responsible: Social Cabinet. - Natural disasters linked to climate change (hurricanes, storms, floods, droughts): Probability Medium; Impact High. Mitigations: early warning system; convene inter-institutional committee on natural disasters; executive branch declares national emergency and SEFIN to find resources; natural disaster insurance. Responsible: SEFIN, Secretariat of the Permanent Contingency Commission (COPECO) and delegated institutions. *Source: 1hndea2026002 - 10. Implementation Plan (ERP implementation tables and risk matrix).* ### 12. General Framework for Monitoring and Evaluation of the ERP ### 12. General Framework for Monitoring and Evaluation of the ERP ### Structure for monitoring and evaluation - Honduras has adopted a Results-Based Management Model (RBM) to improve efficiency and effectiveness of public administration. Monitoring and evaluation is one of five fundamental components of the Model. - Central institutions and roles: - DIGER (General Directorate of Public Administrations, decentralized entity of the Presidency): objectives within ERP include (i) guide results-based management through the Public Management by Results and Transparency System (SIGPRET); (ii) evaluate the results of the Strategy; (iii) implement feedback processes from evaluations; and (iv) evaluate compliance with the Strategy's transparency goals. - SPE (Special Public Service / Secretariat for Strategic Planning): lead agency for strategic planning; designs, implements, and oversees the monitoring and evaluation framework using tools such as indicator matrices, annual monitoring reports, and midterm and final evaluations; links government institutions and aligns with national objectives and international commitments such as the SDGs. - Sectoral and other institutional roles: - Special monitoring and evaluation units in State Secretariats coordinate with DIGER for implementation. - SEDESOL has responsibilities in monitoring and serves as the Strategy's governing body. - INE (National Institute of Statistics and Census): provides data for indicator construction via census and survey program; will implement a calendar of surveys and censuses to meet ERP needs and provide capacity-building to strengthen administrative data systems. - SIGPRET: based on a Results Consistency Matrix (RCM) to conduct periodic assessments of physical, financial, and transparency measures at the institutional level. - SEDESOL tools: Single System for the Evaluation of Social Public Policies (SUEPPS) and Comprehensive Social Monitoring and Analysis System (SIMAS) support annual program-plan monitoring and centralized social/economic data analysis. ### Monitoring and Evaluation Plan - General scope: - Generate and manage information on progress of physical and financial indicators, impact of PRS programs/projects, operational quality, sustainability, and lessons learned. - The monitoring and evaluation plan is based on policies, mechanisms, and tools developed by the Honduran government and the MGR/RBM framework. - 12.2.1 Monitoring — tools and actions: - Indicator matrix: - Each general and specific objective of pillars 2 and 3 of the PRS has a set of indicators with targets for the 2022-2046 period, with biannual values. - Indicators linked to lines of action in those pillars. - Target benchmarks will be reviewed throughout implementation; ongoing analysis of national and international long-term development scenarios and projections will inform planning. - The Secretariat for Strategic Planning will be responsible for collecting indicator data, supported by SEDESOL through the Programmatic Monitoring Directorate. - Annual Monitoring Report: - An analytical annual report on PRS progress will be prepared as a reference for planning the next development cycle and the medium-term budget framework. - Annual reports will include indicator progress analysis and reflect Strategy progress. - DIGER, with support from SEDESOL, will be responsible for developing the annual reports. - Data collection: - The national statistical system, including INE and other producers/holders of administrative data, will guarantee collection of disaggregated data according to specified criteria. - Strategy review: - The ERP contemplates a review of its objectives and goals every four years to ensure relevance and alignment with national reality; reviews may update goals/objectives as needed. - 12.2.2 Assessment — evaluation components: - Midterm evaluations: - Evaluation reports prepared by government administrations responsible for PRS implementation. - Proposed evaluation years: 2028, 2032, 2036, 2040, and 2044. - Evaluations will analyze impact of action lines on poverty targets and sectoral results; enable adjustments to targets based on progress; assess adequacy (relevance and effectiveness) of general and sectoral strategies. - DIGER responsible for developing national midterm evaluations. - State Secretariats may prepare annual sectoral evaluation plans with DIGER support; priority on large investment projects, with territorial and gender focus and consideration of Indigenous and Afro-Honduran peoples. - Final Evaluation: - In 2046 a final report on PRS results and impact on poverty and sectoral targets will be prepared, including sustainability analysis and lessons learned at technical, administrative-financial, and operational levels. - DIGER responsible for developing the final evaluation. - Dissemination: - All monitoring and evaluation reports will be disseminated through official media and linked to voluntary reporting of the 2030 Global Agenda for Sustainable Development; reports submitted to highest-level decision-making bodies. ### Capacity building in monitoring and evaluation - Progress and existing data ecosystem: - Strengthened data resources include Permanent Multiple Purpose Household Surveys (EPHPM) – INE; Administrative Registries of the Solidarity Network in six intervention areas; Programmatic Monitoring System (SIMOP) of SEDESOL; and upcoming Population and Housing Census and National Household Income and Expenditure Survey (ENIGH). - Identified challenges: - Monitoring activities more developed than evaluation activities. - Limited awareness of evaluation importance for public accountability and learning. - Deficiencies in skills and capacities to conduct quality evaluations and use results in decision-making. - Actions implemented since 2022: - Development of guidelines and training programs to raise awareness of evaluation relevance. - Progress toward establishing a legal framework to support assessment of public policies. - Concrete progress in conducting evaluations since 2022. - Recommended actions during 2022-2046 PRS implementation: - Design a unified institutional framework for monitoring and evaluation in Honduras to harmonize government actions and promote generation/use of reliable, objective, evidence-based information. - Establish specific monitoring and evaluation guidelines for the ERP that coordinate actions among entities, define responsibilities/functions, and detail a clear work schedule. - Continue strengthening capacities in monitoring, data collection, analysis, information dissemination, report writing, and evaluation at national, sectoral, and subnational levels to ensure effective implementation of Monitoring and Evaluation Plans. - Strengthen skills and capacities in systematic and ongoing use of various evaluation methodologies (design, operational, impact), along with PETS (National Evaluation System) to track ultimate benefits generated by investments. - Create inter-institutional agreements with INE to propose inclusion of relevant questions in the EPHPM questionnaire/report to complement poverty analysis and provide additional information on household income and expenditures. - Use up-to-date and accurate data: complete and optimally use the Single Social Sector Information System and the Population and Housing Census; ensure effective integration into beneficiary identification processes to improve targeting, efficiency, and equity. - Implement more precise targeting models for social programs: eliminate bottlenecks so resources reach beneficiaries timely; improve coverage and precision using socioeconomic and vulnerability variables including disability, gender, age, and employment status. - Implement ongoing monitoring and evaluation mechanisms to rigorously track evolution of poverty, adjust targeting criteria as realities change, evaluate program impacts, identify deviations/duplications/errors, and ensure transparency in resource distribution. ### Information systems - Purpose: support collection, analysis, and monitoring of key data on social programs, beneficiaries, and vulnerable groups to enable evidence-based decision-making and inter-institutional coordination. - Key systems and functions: - Line 136 SEDESOL Listens: citizen attention system for complaints, reports, and requests on social protection programs via free line 136 and portal www.sedesol.gob.hn; connects citizens with executing institutions. Responsible: SEDESOL. - Management Planning and Evaluation System (SIUPEG): platform for registration, monitoring, and evaluation of programs, projects, products, and indicators; generates timely, real-time reports to the Highest Institutional Authority (MAI). Responsible: UPEG-SEDESOL. - Note: The SIUPEG System is at a 98% implementation phase. - Gender Management System for Social Development (SIGEDES): being updated to analyze gender-related goals, measure investment disaggregated by gender, and include educational/training content with gender focus. Responsible: GENDER-SEDESOL. - Note: Institutional support is essential; the platform is multi-user and requires manual uploading of information periodically. - Honduras Beneficiary Information and Registry System (SIRBHO): collects data on vulnerable populations for targeted villages/areas and emergencies via household surveys and approved self-registration methods. Responsible: SEDESOL/INTERDATA/ODS. - Registry of Institutional and Social Organizations Programmatic Offers (ROPI): guarantees inter-institutional coordination by identifying, mapping, and updating information on programs and projects nationwide focused on Social Protection Policy target populations. Responsible: SEDESOL/ODS. - Information System for the Registry of Assistance to Returned Migrants (SIAMIR): optimizes administrative data processing on returned migrants to improve analysis/characterization and promote interoperability among implementing institutions. Responsible: SEDESOL/ODS. - Single Social Sector Information System (SUISS): technological solution to integrate and manage data related to programs, beneficiaries, and resources of the social sector; records programs/interventions nationwide and can serve as a centralized interoperability platform/single point of access to social programs. Responsible: SEDESOL/ODS. - Programmatic Offer Monitoring System (SIMOP): registers institutional program offering in the social sector; facilitates monitoring in health, education, housing, social protection; enables graphic mapping of institutional interventions and executor identification. Responsible: SEDESOL. - Overall objective: optimize public investment and improve impact of social protection policies through interoperability, targeted beneficiary identification, and timely information for decision-making. *Source: 12. General Framework for Monitoring and Evaluation of the ERP (content unit: 1hndea2026002)* --- _Source: https://www.imf.org/-/media/files/publications/cr/2026/english/1hndea2026002.pdf_