HONDURAS:

Poverty Reduction Strategy and Politics.

4th LAC PRS DONOR NETWORK MEETINGWorld Bank, June 14 and 15, 2007

Juan Zaratiegui Biurrun, CoordinatorG 16 PRS Follow Up Technical Group

HONDURAS: Political Culture

UD

• Two almost centenary mainstream parties receive 93% of the votes.• Political parties without clear ideologies. • Mainstream political parties are composed of competing factions (corrientes).• Highly personalized around faction leaders which are elected in primaries.• Political debate about electoral promises, more than programmes.• President cannot be re-elected.• Heavily clientelistic political system, Government as an Employment Agency.• No professional public administration in most ministries and institutions.• Poor management of Government.• No clear plans or policies. • Weak partisan control of Congress benches. • Strong influence of economic pressure groups.

HONDURAS: PRS has survived three different Governments of two different parties.

Evolution of PRS spending

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

2001 2002 2003 2004 2005 2006 2007

Mil

lio

n L

emp

iras

Garantizando la Sostenibilidad de la Estrategia

Fortaleciendo la Protección Social para GruposEspecíficos

Invirtiendo en Capital Humano

Reduciendo la Pobreza Urbana

Reduciendo la Pobreza en las Zonas Rurales

Acelerando el Crecimiento Económico Equitativo ySostenible

President Flores President Zelaya President Maduro

Source: Government of Honduras

Honduras. Pobreza segun ingresos (1991-2006)

0

20

40

60

80

Porcentaje

PobrezaExtrema

54.2 47.4 45.6 48.6 48.6 47.4 44.8 47 44.6 47.1 42.5

Pobreza 74.8 67.8 63.1 65.9 65.9 64.5 64.8 65.1 64.2 65.3 61.8

1991 1995 1998 1999 2000 2001 2002 2003 2004 2005 2006

Source: Government of Honduras

HONDURAS:

In the last 6 years no significant

impact on poverty has been detected.

?

HONDURAS: The many faces of PRS

Municipalities: 700 Million Lempiras each year for Projects.

Government: 27.000 Million Lempiras, encompassing all social spending with a framework document to keep donors happy.

Population: A fund for Municipalities? Projects for NGOs? Funds from Debt Relief?

Donors: A National Strategy to reduce poverty and reach the MDGs in 2015, using Debt Relief, National Resources and International Cooperation.

Civil Society: Debt Relief, channelled through NGOs to reduce poverty

Congress: Fund for Municipalities and for Congress members to manage social projects.

HONDURAS: What the PRS needs

Clear Medium Term Budgetary Framework

Clear Macroeconomic Framework Clear Programmatic

Framework

Solid Sector Strategies in Education and Health

Solid Monitoring System

Clear political and institutional framework

Reform Measures Macroeconomic stability and Fiscal reform

Strengthen the role of the CCERP (Civil Society)

More transparency and accountability

WE NEED A CLEAR AND CONTINUOUS DIALOGUE WITH GOVERNMENT ON THIS ISSUES

HONDURAS: How do we dialogue?

Budget Support

Sector Level (Tripartite Dialogue)

G16 - Harmonization

PRS - Alignment

Being Political Vs. Being Diplomatic

Work with Civil Society, Political Parties, Congress, Media to improve everyone's knowledge of PRS