This report uses household surveys toprovide a diagnostic of poverty, human development, andaccess to basic infrastructure. The report is based onanalytical work conducted by a team comprising staff fromthe World Bank, Honduras' "Programa de AsignacionFamiliar (PRAF), and the International Food Policy ResearchInstitute (IFPRI). The objective of the present report islimited. It provides a diagnostic of the state of povertyand other indicators of well-being instead of suggesting anoverall poverty reduction strategy or providing detailedpolicy reform options. It is intended as an imput for theGovernment's Poverty Reduction Strategy Paper (PRSP)within the context of the country's participation inthe Heavily Indebted Poor Countries (HIPC) Initiative fordebt relief. Some key findings are: There is uncertainty asto the change in poverty because different assumptions usedfor poverty measurement have lead to different conclusionsas to the trend in poverty in the 1990s. The probability ofbeing poor increases with the number of babies and children,the fact of being from an indigenous population, and thefact of having a household head unemployed, underemployed,and/or female. Poverty decreases with education andemployment in non-agricultural occupations. Geography andprograms for rural productivity also reduce poverty.Progress is suggested by the Human Development Index and thefact that the share of all households nationally with nounmet needs increased.
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