Honduras has accomplished importantpolitical, economic, and social achievements in the recentpast. The country underwent a successful transition from anauthoritarian military regime to a pluralistic democracy.The list of economic achievements of the last four yearsincludes: macroeconomic stability, improvements in thebusiness climate and the performance of the financialsector, and putting in place a sound framework for publicsector financial management. Progress toward achieving theMillennium Development Goals (MDGs) has also beensignificant. Despite these achievements, state institutionsare still fragile and the governance framework is weak.Furthermore, notwithstanding the country's economic andsocial improvement, almost two-thirds of the populationstill lives below the poverty line and key structuralconstraints on growth have still to be addressed. The keydevelopment challenges for Honduras are: (a) strengtheninggovernance and improving the effectiveness of thegovernment, and (b) accelerating its recent growthperformance and translating growth into poverty reduction.Among the recommendations the report makes are: Thedevelopment of additional regulations, strengthen linksbetween the environmental impact assessment (EIA) and othermanagement instruments, particularly Strategic EnvironmentalAssessments (SEAs) and zoning. Work with the Hondurangovernment to strengthen the follow-up and complianceprocess as well as strengthening public participation in theEIA process.
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