Resource information
This regional study encompasses three
Central American countries: Nicaragua, Guatemala, and
Honduras. The focus of this report is Honduras. The
objective of the study is to understand how broad-based
economic growth can be stimulated and sustained in rural
Central America. The study identifies "drivers" of
sustainable rural growth and poverty reduction. Drivers are
defined as the assets and combinations of assets needed by
different types of households in different geographical
areas, to take advantage of economic opportunities, and
improve their well-being over time. The study examines the
relative contributions of these assets, and seeks to
identify the combinations of productive, social, and
location-specific assets that matter most to raise incomes,
and take advantage of prospects for poverty-reducing growth.
It adopts an asset-based conceptual approach, where assets
are defined to include natural, physical, financial, human,
social, political, institutional, and location-specific
assets, and, focuses on how households deploy their assets
within the context of policies, institutions, and risks to
generate a set of opportunities. The report further analyzes
the quantity, quality, and productivity of assets needed by
households in different geographical areas, to exercise
their potential for generating long-term growth and
improving well-being. Findings indicate that while there are
well-defined areas of higher economic opportunity, given
their underlying agricultural potential, relatively good
access to infrastructure, and high population densities,
poverty is widespread, and deep in rural Honduras,
particularly in hillside areas. And, although agriculture
should form an integral part of the rural growth strategy in
hillside areas, despite its limited potential, agriculture
alone cannot solve the rural poverty problem, yet, those
remaining in the sector need to be more efficient,
productive and competitive. It is recommended to move from
geographically untargeted investments in single assets, to a
more integrated and geographically based approach of asset
enhancement with proper complementarities, such as land
access and security, technical assistance provision, health
and education services, and strong local level institutions,
