Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

HONDURAS

FY 1998 Development Assistance . . . . . . . . . . . . . . . . . $18,350,000
FY 1998 P.L. 480 Title II . . . . . . . . . . . . . . . . . $ 4,735,000

Introduction

U.S. interests in Honduras are driven by the country's proximity and historical ties to the United States, a desire for a stable democratic system with protection of human rights in this close hemispheric neighbor, expanding trade and investment opportunities, high levels of illegal immigration, narcotics transit, global environmental and health threats, and strong Honduran support for U.S. foreign policy issues in international fora. Located in a recently strife-ridden region, Honduras is undertaking broad political and judicial reforms, thus rapidly deepening its democratic processes. Poverty-driven illegal migration of Hondurans to the United States is a growing problem, as is smuggling of other illegal aliens. Honduran cooperation in curtailing both alien smuggling and drug transit operations has been excellent. Recent economic and political reforms have turned Honduras into a growing market for U.S. exports and investment. Honduras strongly supports U.S. foreign policy efforts, recently assisting with peace-keeping forces, Cuban refugees, Haiti, Iraq, and Kuwait. Important U.S. global interests include destruction of biodiversity and tropical rain forests, high levels of human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS) infection, and high population growth rates.

The Development Challenge

Honduras, the fourth poorest country in Latin American, has a per capita gross domestic product (GDP) of $673. Over 67% of the population live below the poverty line, barely half of adults have completed primary school, and about 4% of infants die before their first birthday. While severe poverty persists, Honduras is making solid progress, but needs continued external assistance to maintain momentum.

Honduras is a good economic performer, but despite real progress with politically difficult, market-oriented policy reforms over the past seven years, economic imbalances persist and "adjustment fatigue" is evident. Reforms to free the exchange rate, liberalize trade, decontrol prices and interest rates, reduce public deficit, and control inflation led to annual growth of 5% in the three years prior to 1994, but inconsistent implementation of the reforms has led to inconsistent economic performance. GDP declined by 1.5% in 1994 due to 1993 election-year fiscal excesses, plunging world coffee prices, and a severe 1994 drought, which damaged agriculture and created a very serious electricity shortage. Government of Honduras (GOH) efforts to maintain and deepen reforms in 1994 and 1995 were rewarded with growth of 3.6% for 1995, and 1996 GDP growth is estimated to be 4%. Nevertheless, inflation, which has remained between 25-30% since 1994 is a continuing problem. External debt is also a serious concern. As a result of prior forgiveness, the United States holds very little bilateral debt. The country must reach agreement with the IMF in early 1997 in order to stay eligible for Paris Club bilateral debt rescheduling in 1997. The basic economic framework for growth now is in place; the challenge is diligent implementation of the framework and ensuring that the poor have access to the new opportunities offered by the changing economy.

Honduras is a very strong performer in terms of democratic reforms to eliminate corruption, reduce the military's grip on society, improve the judiciary, increase public participation, and promote civil society. Fundamental, historic reforms of the justice system are underway. For the first time in history, the GOH, through its new Public Ministry, is actively investigating and prosecuting criminal cases against corrupt judges, powerful civilians, and military officials, some of whom have been incarcerated. Congress currently is considering landmark legislation to radically reform the criminal procedures code, and move towards an adversarial system of justice. In late 1996, Congress reformed the penal code to add stronger sanctions for public corruption, white collar crime and other felonies. The GOH recently suspended the military draft, eliminated military involvement in other ministries, civilianized the investigatory police and is in the process of civilianizing all police forces. Mayors, who in 1993 for the first time were elected separately from the national ticket for the first time in 1993, now are more responsive to constituents instead of party bosses. Rapidly increasing public confidence in democratic processes is evidenced by far greater use of the courts and by attendance in open town meetings. The GOH is actively supporting and cooperating with the programs of nongovernmental organizations (NGOs) in poverty alleviation, community development, vocational training, health care and nutrition, environmental protection, trade issues, judicial reform, governance, and protection of human rights. Honduras has embarked on a comprehensive and ambitious democratic reform program and already has made dramatic changes. The difficult challenge is maintaining the momentum needed to successfully implement the ambitious program.

Strong GOH commitment to poverty alleviation is demonstrated by allocation of over 30% of its budget to social sector investments in health, education, and social welfare. These investments are paying off: the incidence of poverty fell from 75% in 1991 to 67% in 1995. Honduras leads the region with over 94% of its children vaccinated against childhood diseases. Infant mortality per 1,000 live births decreased from 85 in 1979, to 42 in 1993. Over 70% of children now graduate from sixth grade compared to only 44% in 1986. While progress is impressive, infant and maternal mortality and fertility remain unacceptably high. Secondary and vocational schools can accommodate only 35% of the children graduating from primary school. Until 50% of the Honduran work force receives at least a basic 12-year education, there is little hope for rapid economic development and poverty alleviation in the country.

Environmental exploitation has cost Honduras half of its ten million acres of broadleaf forest and 40% of its volume of commercial pine timber. Water supplies are endangered by inadequate rural watershed management and poor municipal sewerage and refuse disposal. Environmental protection, a relatively new concept for Honduras, is not a high priority for government or the public. Furthermore, while the GOH is establishing the basic legal framework, legal mechanisms to redress abuses are weak. In addition, technologies for sustainable management of natural resources currently are not well known, let alone widely practiced. The challenge now is to adopt new reforms and incentives to strengthen the legal framework, to ensure that the framework is implemented effectively, and to continue aggressive extension of sustainable natural resources management practices.

To summarize, Honduras is making the difficult policy reforms and budget allocations needed to stimulate development. While progress is being made, given its low starting point, Honduras requires continued strong external assistance to achieve self-sustaining development. Discussions of graduation from traditional development assistance are at least a decade away.

Other Donors

USAID collaborates closely with the other donors, particularly with multilateral organizations. In 1995, the United States provided $46 million, or about 11% of total disbursements of official development assistance to Honduras and was the third leading donor behind the World Bank and Japan. The dramatic cuts currently planned would drop the U.S. share well below 10% and would severely limit the ability of USAID to achieve its strategic objectives.

FY 1998 Program

USAID's four strategic objectives for Honduras align with overall agency goals and directly address Honduras' main development challenges. Furthermore, they support key U.S. interests in the areas of democratization and protection of human rights; broad-based economic growth, which is reducing the stimulus for illegal migration as well as improving the climate for U.S. trade and investment; and reduction of global threats from overpopulation, the spread of HIV/AIDS, and environmental destruction.

In addition to U.S. interests and agency goals, USAID's strategic priorities in Honduras are shaped by sector needs, opportunities, and potential for achieving sustainable results. Top priority is given to improved democratic processes and broad-based economic growth, two areas in which the GOH has shown deep commitment by undertaking significant reforms. Continued budget cuts threaten cancellation of environmental strategy activities, substantial declines in economic growth programs, and delay of results in health, family planning, judicial reform, and other democratic initiatives.

Agency Goal: Encouraging Broad-based Economic Growth

A robust economy and sound policy framework are necessary, but not sufficient, to ensure that lower-income groups will benefit from economic growth. Policy reforms to enhance inventives and reduce barriers to participation combined with access to land, credit, technology, markets, and basic education, is essential to break the poverty cycle and enable all Hondurans to achieve their full economic potential. Widespread achievement of this potential will stimulate broad-based economic growth. The USAID strategy to alleviate poverty, which works through partnerships with NGOs and the GOH, has three components: (1) expanding access and improving the functioning of markets through policy reforms, land titling, and privatizing state-owned enterprises; (2) empowering the poor by providing technical assistance and credit to small farmers, rural farmer-owned businesses, microenterprises, and small businesses; and (3) investing in people by improving basic education and training programs for low-income groups. With USAID assistance, in the first nine months of 1996 the GOH issued 25,509 land titles, a quarter to women, compared to 9,463 in 1995. The success of the small and microenterprise lending program is evidenced by continued strong demand, over 32,000 loans in 1995 and prompt repayment by borrowers. The more than 30,000 graduates of USAID-assisted NGO and GOH vocational training programs, 35% of whom are women, are now employed with incomes increased by some $1,000 annually. While these recent results are encouraging, achievement of self-sustaining, broad-based economic growth and poverty alleviation in Honduras will require strong sustained GOH commitment to implement reforms and programs, continued financing for major NGO activities, strong financial support from USAID and other donors, and control of inflation.

  • Strategic Objective 1: Enhanced Economic Participation and Increased Incomes for the Poor

    Agency Goal: Protecting the Environment

    Exploitation of forests and soils without regard to sustainability is already affecting the lives of Hondurans, as dramatically illustrated by the 1994-95 electricity crisis. The GOH agrees that sustainable growth of agricultural and timber production and maintenance of water supplies depend on environmental protection. With USAID assistance, the GOH is establishing the basic legal framework for halting natural resources degradation. USAID's strategy for Honduras has three elements: (1) partnering with the GOH forestry agency and NGOs to implement sound forest-management policies and practices; (2) working with CARE, local NGOs, Peace Corps, and the GOH to encourage adoption of hillside farm practices that both increase farm incomes and better protect soil and other natural resources: and (3) assisting NGOs and the GOH to improve management of Honduras' protected areas. Results include an increase in effectively managed forest area from zero in 1989, to over one million acres in 1996. The number of hillside farmers using environmentally sound cultivation practices increased from 16,000 in 1993 to 28,000 in 1996. These farmers increased their annual productivity by 30% and their on-farm incomes by 50% while reducing annual soil erosion loses by 3.6 million tons.

  • Strategic Objective 2: Effective Stewardship of Key Natural Resources for Sustainable Economic Growth

    Agency Goal: Stabilizing Population Growth and Protecting Human Health

    Stabilizing population growth and protecting human health is vital to the well-being of Honduras, a poor country struggling to address the needs of a population growing at 2.7% per year. USAID's strategicobjective supporting this goal focuses on improved family health, specifically reducing fertility, infant and maternal mortality, and malnutrition, while stopping the growth of HIV seroprevalence. Thus, an integrated strategy addresses both population and health objectives. Programs are aimed at improving delivery and increasing use of health care services as well as expanding and improving rural water and sanitation systems. Though the USAID-supported AIDS prevention program is new, condom distribution increased by 154% from 1990 to 1995. USAID works in partnership with both the public and private sector to extend services, particularly to rural areas and to achieve sustainability of indigenous NGOs such as the Honduras Family Planning Association which currently provides 60% of the family planning services in Honduras. Results are encouraging, total fertility declined from 5.1 children per woman in 1991 to 4.9 in 1995. However, family planning efforts are constrained by lack of an official GOH reproductive health policy, and by opposition groups.

  • Strategic Objective 3: Improved Family Health

    Agency Goal: Building Democracy

    Honduras is not a mature democracy, though it has had four open and fair elections with peaceful transfers of power since 1981. The USAID strategy has three elements; (1) improving judicial systems; (2) developing more responsive and effective municipal government; and (3) promoting democratic values. To improve judicial systems, USAID is working in partnerships with the Attorney General and Public Ministry, the court system, and NGOs to gain passage and subsequent implementation of fundamental legislative reforms. The reforms will depoliticize the court and help ensure a fair system of justice. USAID is also working to assist the court with fundamental administrative reforms aimed of improving the integrity and fiscal soundness of the system. At the local level, USAID works with municipalities, NGOs and universities to improve local governance, increase citizen participation in decision-making, and expand coverage of basic municipal services like water, sanitation, and refuse collection. USAID promotes democratic values by enabling selected Honduran leaders to experience first hand U.S. political and economic systems, values, and cultures. USAID-assisted programs are achieving impressive results; the Honduran public rapidly is becoming empowered. In a September 1995 Gallup poll, 71% of educated adults opined that the new Public Ministry was strengthening the independence of the judiciary. Official citizen complaints filed with investigative and prosecutorial agencies increased from 1,000 in 1993 to over 30,000 in 1996. Average attendance at open town meetings increased from virtually zero in 1990 to 174 in 1996. Local government is becoming more responsible and more responsive to citizens needs; for example, the proportion of municipal budgets going to potable water, sewerage and other capital projects increased from 15% in 1991 to 45% in 1996. While public enthusiasm and presidential support is strong, there is still resistance to judicial reform from some sectors and reluctance by some elements of the central government to relinquish power to local municipalities. To maintain current momentum, continued strong U.S. political and financial support is essential.

  • Strategic Objective 4: More Responsive Democratic Processes with Greater Citizen Participation

    HONDURAS
    FY 1998 PROGRAM SUMMARY

    (000's)

    USAID Strategic Objectives Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building Democracy Providing Humanitarian Assistance Total
    1. Enhanced Economic

    Participation

    Dev. Assistance

    3,885

    715

    4,600

    2. Effective

    Stewardship of Key

    Natural Resources

    Dev. Assistance

    2,750

    2,750

    3. Improved Family

    Health

    Dev. Assistance

    P.L. 480 Title II

    8,550

    4,735

    8,550

    4,735

    4. Democracy

    Dev. Assistance

    250

    2,200

    2,450

    Total

    Dev. Assistance

    P.L. 480 Title II

    3,885

    8,550

    3,715

    2,200

    4,735

    18,350

    4,735

    USAID Mission Director: Elena L. Brineman

    ACTIVITY DATA SHEET

    PROGRAM: HONDURAS

    TITLE AND NUMBER: Enhanced Economic Participation and Increased Incomes of the Poor, 522-SO01

    STATUS: Continuing

    PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $4,600,000 DA

    INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 1998

    Purpose: To reduce the incidence of poverty and stimulate economic growth by opening the economy and providing opportunities to the vast majority of Hondurans who currently are living in poverty.

    Background: Broad-based economic growth in Honduras is directly dependent on enhanced economic participation, higher productivity, and increased incomes for the over 60% of Hondurans currently living below the poverty line. Access to land, credit, technology, markets, and basic education is essential to break the poverty cycle and enable all Hondurans to achieve their full economic potential. Widespread achievement of this potential will stimulate self-sustaining growth for the economy as a whole. The Government of Honduras (GOH) is committed to this objective and is removing important constraints to its achievement by undertaking reforms to liberalize markets, to provide land titles to small farmers, and to support credit programs for small farmers and entrepreneurs. Recent experience indicates that low income groups, with proper assistance programs, can take advantage of such reforms, increase incomes, and contribute to economic growth. Major projects under this objective focus on policy reform, small farmer agribusiness and export development, small and microenterprise development, and basic education and skills training. External constraints include persistent high inflation and low education levels, particularly in remote areas.

    USAID Role and Achievements to Date: USAID provides analytical leadership to GOH policy reform efforts, technical assistance, training, and some capital assistance to NGO and GOH programs. The incidence of poverty declined slightly in 1995 to 67%. In the first half of 1996, USAID-supported NGOs made over 27,000 loans to micro and small entrepreneurs, over 88% to women. The productivity of these loan programs is evidenced by strong demand for the loans and high repayment rates by borrowers. The GOH increased its issuance of individual land titles from 4,205 in 1994 to over 25,000 in the first nine months of 1996; a quarter of the titles were issued to women. We maintained the movement toward liberalized trade and price policies. As a result, during the past year, investment in agriculture increased by 27% and total employment by 4.1%. Since 1986, the number of primary school graduates increased 63% while the proportion of children completing primary school increased from 50% to 70%. Furthermore, standardized test scores for grades 1-6 increased by an average of nearly 40%. USAID-assisted improvements to primary education since the 1980s are increasing Honduran incomes by an estimated $85 million annually. Over 90% of 30,000 graduates from USAID-supported vocational training programs, 35% women, are employed with annual incomes increased by about $1,000 per graduate, for a total of $27 million per year.

    Description: USAID-supported programs are improving the access and opportunities of low-income Hondurans to resources that increase their productivity and income. The policy analysis and implementation program is achieving agricultural price, trade, and land-tenure policies critical to increased incomes and investment. The small farmer export development program transfers production technology and marketing skills to small farmers. Microenterprises, small farmers, and small businesses are receiving improved financial services from agricultural cooperatives, farmer-owned enterprises, and a network of NGOs under the USAID small farmer agribusiness and small business programs. USAID also supports alternative basic education and NGO vocational training programs which target low-income, out-of-school youth and adults. Also contributing are related USAID environmental activities promoting sustainable forestry and hillside farming.

    Host Country and Other Donors: Through its economic reforms and ongoing education and agriculture programs, the GOH is the main contributor to this objective. USAID collaborates closely with otherdonors. For example, in the agricultural sector, USAID provides technical analysis and local currency for policy reforms leveraged with funding by the InterAmerican Development Bank, and the World Bank. In education, USAID coordinates closely with Germany and the World Bank as they replace USAID's assistance to formal primary education while USAID moves into alternative basic and vocational education.

    Beneficiaries: Primary beneficiaries are the more than 3.5 million Hondurans who are currently below the poverty line, the more than one million school children seeking to achieve their full economic potential as adults, and out-of-school youth and young adults needing alternative basic and vocational education.

    Principle Contractors, Grantees, or Agencies: USAID will carry out this program through NGOs and U.S. firms, including Agricultural Cooperative Development International., Jose María Covelo Foundation, International Center for Economic Growth, Management Systems International., Latin American Scholarships Program for American Universities, National Cooperative Business Assn., Accion Intl., Finance Company for Agricultural Cooperatives, Chemonics International., Honduran Agricultural Research Foundation, National Foundation for Honduran Development, and the Advisory Council for Human Resource Development.

    Major Results Indicators:                                 Baseline               Target
    

    Population living below the poverty line 74.8% (1991) 60% (1998)

    Employment in Agriculture, Total 1,094,200 (1990) 1,423,700 (1998) Industry, and Services: Females 262,608 (1990) 536,919 (1998)

    Number of loans to small and micro- Total 28,538 (1993) 106,445 (1998) enterprises: Females 19,120 (1993) 61,419 (1998)

    Annual number of Land Titles Issued: Total 1,999 (1993) 20,000 (1998) Females 394 (1993) 4,000 (1998)

    Graduates from PVO and Municipal Total 1,202 (1994) 3,400 (2004) Training Centers Employed Females 366 (1994) 1,020 (2004)


    ACTIVITY DATA SHEET

    PROGRAM: HONDURAS

    TITLE AND NUMBER: Effective Stewardship of Key Natural Resources for Sustainable Economic Growth, 522-SO02

    STATUS: Continuing

    PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $2,750,000 DA

    INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 1998

    Purpose: To achieve productive and self-sustaining stewardship of Honduras' forests, water, and soils, its three key natural resources. Effective stewardship can be achieved by establishing proper incentives, empowering effective institutions, and transferring appropriate technologies.

    Background: Exploitation of Honduras' forests and soils without regard to sustainability is a serious problem, as dramatically illustrated by the country's 1994-95 electricity crisis which clearly demonstrated the fundamental linkage between water conservation and the ability to generate hydroelectricity. Both the nation's water supplies and tourism are heavily dependent on sound management of protected areas. Proper environmental management also is essential to continued and sustainable growth of agricultural and forest production. The Government of Honduras (GOH) understands the importance of environmental protection and is establishing the basic legal framework for halting natural resources degradation. USAID activities include policy assistance, forestry management, enhanced hillside land use and productivity, protected areas management, and support to environmental NGOs through the Honduran Environmental Protection Fund. The main external constraints are lack of awareness and low, albeit growing, government and public priority given to environmental protection.

    USAID Role and Achievements to Date: USAID engages in policy dialogue and provides technical assistance, training, and capital assistance. With USAID assistance, Honduras increased the area of pine forest covered by effective management plans from zero in 1989 to over a million acres in 1996 (417,000 hectares). The number of poor hillside farm households using environmentally sound cultivation practices rose from 16,000 in 1993 to just short of 28,000 in 1996. These households increased crop yields by 30% and on-farm income by 50% while contributing to an estimated annual 3.6 million ton decrease in soil-erosion losses. The number of forest reserves and protected areas under long-term management plans increased from two in 1993 to nine in 1996.

    Description: USAID activities focus on stemming destruction of forest and soil resources and improving management of declared protected areas. The USAID policy assistance program supports improved forest, natural resources and environmental policies. The forestry development project demonstrates sound forest management policies and practices in the most important forest districts of Honduras, extends proven practices countrywide, and strengthens Honduras' system of protected areas. USAID works with a network of NGOs and the GOH Ministry of Natural Resources to promote land-use and cropping systems that are simultaneously more productive and protective of natural resources. USAID support to the Honduran Environmental Protection Fund finances a local NGO network which improves management of protected areas and encourages local environmental initiatives and partnerships between U.S. and local environmental NGOs throughout Honduras. Related USAID activities contributing to this objective include family planning and local water, sanitation, solid waste, and watershed protection activities. USAID activities with the justice system and the Public Ministry support the efforts of a special prosecutor for environment.

    Host Country and Other Donors: Close technical cooperation between USAID, the multilateral banks, Canada, Finland, and Germany, especially in forestry, is moving the GOH to a major redefinition of its role in the sector through such institutions as the Honduran Forestry Development Corporation, the Ministry of Natural Resources and the Environment and others. However, with other crises facing theGOH, the environment has not been a high priority, and progress is slowed for lack of financial resources. Concern for the environment is a relatively new concept in Honduras; public awareness of the issue is only beginning to become widespread and legal mechanisms for redressing abuses are weak. USAID also collaborates closely with the United Nations Development Program (UNDP) under the Honduran Environmental Protection Fund in support of environmental NGOs.

    Beneficiaries: Primary beneficiaries are Honduras' 150,000-200,000 hillside farm families; the thousands of Hondurans who depend directly on a viable pine forest industry; next generation of Hondurans who must depend upon the country's natural resource base for its future economic well-being; and all Hondurans who depend upon surface water for domestic and industrial uses and electricity generation.

    Principle Contractors, Grantees, or Agencies: The programs will be implemented by: U.S. Forest Service, Planning Assistance, CARE, Honduran Environmental and Development Foundation, The Nature Conservancy, Catholic Relief Service, Chemonics International., Global Village, Katalysis, Tropical Forest Management Trust, and World Wildlife Fund.

    Major Results Indicators:                              Baseline          Target
    

    Pine forest effectively managed (hectares) 24,000 (1992) 860,000 (1998)

    Hillside households practicing environmentally sound cultivation 11,000 (1989) 40,000 (1998)

    Reduction in soil erosion on treated hillside farms (tons) 880,000 (1989) 5,100,000 (1998)

    Number of declared protected areas under effective management 1 (1994) 23 (1998)


    ACTIVITY DATA SHEET

    PROGRAM: HONDURAS

    TITLE AND NUMBER: Improved Family Health, 522-SO03

    STATUS: Continuing

    PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $8,550,000 DA; $4,735,000 P. L. 480 Title II

    INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: 1998

    Purpose: To reduce infant and maternal mortality, malnutrition, and fertility, and to halt growth of HIV seroprevalence by improving delivery and increasing use of services for reproductive health, child survival, and prevention of sexually transmitted diseases. Increased cost recovery, quality of care, and sustainability are crucial to achievement of the objective.

    Background: Improved family health is vital to the well-being of Honduras, a poor country struggling to address the basic health needs of a population growing at 2.7% per year. Family planning has been a major factor in reducing infant and maternal mortality in Honduras. The GOH is committed to a series of quality and efficiency improvement measures in a decentralized health care system. Family planning efforts are constrained, however, by lack of an official GOH policy on reproductive health and by negative publicity and unfounded press statements by opposition groups. Past experience of both the GOH and NGOs supports the feasibility of increasing contraceptive prevalence. Another positive factor is the Catholic Church's restraint in expressing open opposition to condom usage in light of Honduras' serious AIDS pandemic, the worst in Central America. USAID activities include support to the Ministry of Health, assistance to private family planning agencies, a rural water and sanitation program, and a P.L. 480 Title II food security program.

    USAID Role and Achievements to Date: USAID plays a lead role in the sector, engaging in policy dialogue and providing technical assistance, training, and capital assistance. Infant mortality declined from 85 per 1,000 live births in 1979 to 42 in 1993. With vaccination rates for children under one year exceeding 94%, Honduras has the best record in Latin America. Rural water and sanitation programs have helped shift diarrheal diseases from the first to the third cause of death among infants. Children aged 12-23 months, who are seriously malnourished, declined from 30% in 1987 to 24% in 1994. Although the USAID-supported AIDS prevention program is new, condom distribution increased by 154% from 1990 to 1995. The total fertility rate declined from 5.1 in 1991 to 4.9 in 1993-95. Total contraceptive prevalence in women increased from 47% in 1991 to 50% in 1996. The use of modern methods of contraception increased from 35% in 1991-92 to 41% in 1996.

    Description: USAID supports a variety of interventions, including vaccination programs, oral rehydration therapy, maternal health care, construction of rural water and sanitation systems, and reform of the water and sanitation authority. Particular attention is going to achieving sustainable delivery of services. The national AIDS prevention program promotes preventive practices, including condom use. Ten USAID grants support AIDS prevention activities of Honduran NGOs, Ministry of Health entities, and the municipality of San Pedro Sula. The P.L. 480 Title II program implemented through CARE focuses on improving nutritional status and food security in the neediest regions of the country. USAID's family planning activities with the Ministry of Health and the private sector Honduran Family Planning Association are expanding access and quality of services, with the goal of increased use of modern family planning methods and greater financial self-sufficiency of the Association. Related USAID activities, which increase incomes of the poor, will contribute directly to improved family health.

    Host Country and Other Donors: Despite its austere financial reform program, the GOH is committed to developing high-quality, health services for its citizens. Weak management systems within the Ministry of Health remain a challenge to an effective and sustainable public health system. USAID coordinates its water and sanitation activities with the Inter-American Development Bank (IDB) and the World Bank. Each donor also supports social safety-net programs through contributions to the Honduran Fund for Social Investment. USAID coordinates with the IDB on AIDS prevention assistance and interventions, and with the cooperative programs of Japan, United Nations Children's Fund, the European Union, and the Spanish Technical Cooperation on child survival interventions.

    Beneficiaries: Primary beneficiaries are women and children in low-income Honduran families, which currently lack access to quality reproductive health and family planning, and child survival services. Approximately 128,000 children and adults receive nutrition supplements. Roughly 787,000 rural residents benefit from water and sanitation activities. Beneficiaries of the AIDS prevention program are the high-risk groups, including female factory workers in major cities, and the Garífuna ethnic group (of African heritage).

    Principle Contractors, Grantees, or Agencies: The programs will be carried out through U.S. firms and private voluntary organizations (PVOs), including CARE, Management Sciences for Health, Family Health International., Honduran Family Planning Assn., Population Council, International. Planned Parenthood Federation, John Snow Inc., Futures Group, Johns Hopkins University., Centers for Disease Control, and Partnership for Child Health.

    Major Results Indicators:                                     Baseline          Target
    

    Infant mortality per 1,000 life births 50 (1989) 40 (1998)

    Maternal mortality ratio per 100,000 live births 221 (1989) 175 (1998)

    Malnutrition among children 12-23 months of age 30.2% (1987) 22% (1998)

    Rates of HIV infection in high-risk groups 14% (1991) 13% (1998)

    Total fertility rate (Average number of live births per women) 5.6 (1987) 4.5 (1998)


    ACTIVITY DATA SHEET

    PROGRAM: HONDURAS

    TITLE AND NUMBER: More Responsive Democratic Processes, With Greater Citizen Participation, 522-SO04

    STATUS: Continuing

    PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $2,450,000 DA

    INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETED DATE: FY 1998

    Purpose: To promote the rule of law, greater citizen participation at both national and local levels, and government that is freely elected, transparent, accountable, and responsive. To achieve this objective, USAID strengthens democratic institutions, promotes citizen participation, and introduces selected Hondurans to U.S. democratic values and systems.

    Background: In the past, corruption, nonresponsive and centralized government, weak judiciary, and lack of citizen participation plagued Honduran development efforts and discouraged investment. However, the situation in Honduras is changing rapidly, supported by the current President's demonstrated dedication to a "moral revolution." Continued strong U.S. assistance is a crucial factor to the success of this process. USAID activities include strengthening democratic institutions, municipal development, and democracy training in the United States. Principal constraints are resistance of some sectors to judiciary reform and reluctance by central government agencies to relinquish power to municipalities.

    USAID Role and Achievements to Date: USAID engages in policy dialogue and provides technical assistance, training, and capital assistance. Achievements to date are impressive. The Public Ministry, established in 1993, is recognized as an effective force against corruption and impunity. Cases adjudicated by the Courts involve for the first time accusations against high-level civilian and military officials, some of whom have been incarcerated. In the first half of 1996, the Public Defenders program, developed with USAID assistance, represented 37% of the prison population and gained the release of some 1,600 prisoners who had been jailed and were awaiting trial and/or sentencing. The Congress is currently processing a legal reform bill for a new, more transparent, oral adversarial criminal procedures code. Citizens are participating in the process. The public's filing of official complaints with legal authorities has reached record levels, over 30,000 in 1996 compared to less than 1,000 in 1993. While open town meetings were unheard of in 1990, average participation grew to 174 individuals per meeting by 1996. Local government is becoming more responsive to citizens needs. For example, the proportion of municipal budgets going to capital projects increased from 15% in 1991 to 45% in 1996. As a result, municipal population simultaneously provided with water, sewerage and refuse collection increased from 17% in 1991 to 31% in 1996.

    Description: The USAID-supported 1990 Municipal Law already has led to a restructuring in the relationship between the central and municipal governments. The municipal development program is increasing citizen participation in local government decision-making and improving local governments' ability to respond to constituents. The strengthening democratic institutions program supports the Public Ministry, justice sector reforms, strengthening of Supreme Court and lower courts, and public participation in the justice system. The Honduras Peace Scholarships Program continues to provide selected Honduran grass roots leaders and prominent figures opportunities to learn first-hand about U.S. political and economic systems, culture and values. Related USAID activities which increase income and education of the poor also enable them to participate more effectively in democratic processes. P.L. 480 Title II food-for-work activities provide roads, markets and other infrastructure as well as addressing food security constraints in the poorest municipalities in the country.


    Host Country and Other Donors: USAID coordinates administration of justice programs with the Judiciary and Public Ministry who provide in excess of 25% counterpart financing for most justice sector programs, and with Inter-American Development Bank (IDB), Spanish cooperation and United Nations Development Programs (UNDP). In supporting municipal water and sanitation activities, there are host country organizations like municipal governments, the National Association of Municipalities (AHMON), the Foundation for Municipal Development (FUNDEMUN), and the Honduran Social Investment Fund (FHIS) which also receive support from IDB and Spain.

    Beneficiaries: All Hondurans benefit, especially the politically, socially, and economically disadvantaged and those who historically have suffered from a corrupt and ineffectual justice system.

    Principle Contractors, Grantees, or Agencies: USAID assistance will be implemented through U.S. and Honduran institutions and organizations, including the following: Association of Honduran Mayors, Honduran Foundation for Municipal Development, Central American University of Technology, University of San Pedro Sula, and on U.S. institutional contractor to be determined.

    Major Results Indicators:                                Baseline         Target
    

    Criminal complaints filed by public with Public Ministry 5,200 (1994) 35,000 (1998)

    Criminal cases prosecuted by the Public Ministry 0 (1993) 4,000 (1998)

    Criminal cases adjudicated by the Courts 258 (1995) 3,500 (1998)

    Average community attendance at town meetings 0 (1990) 210 (1998)

    Percentage of municipal budgets going to capital projects 15% (1991) 55% (1998)

    Number of participants who have completed the "Experience America" program 234 (1986) 3,295 (1998)


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