With a population of seven million,Honduras is the second most populous country in CentralAmerica. It is also the second poorest country in the regionwith an annual per capita income of less than US$ 1,000. Twoout of every three people in Honduras are poor (per capitaincome less than US$ 1.50/day); and three out of every fourpoor people are extremely poor (per capita income less thanUS$ 1.00/day). Social indicators such as child malnutritionrate (17 percent), life expectancy at birth (66 years),child mortality rate (32 per 1000 births), and literacy rate(less than three-quarters of the population) are among thepoorest in Latin America and the Caribbean (LAC) region.