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On June 13, 2005 the MCC signed a five year, $215 million compact with Honduras. The compact focused on increasing productivity of high value crops and improving transportation links between producers and markets. In September 2009, the MCC board terminated $10 million of MCC assistance for a pattern of actions inconsistent with MCC's policies, reducing the compact to $205 million.
MCA Status
Honduras' compact entered-into-force on September 25, 2005. The compact between Honduras and the MCC aimed to raise incomes in two key ways: (1) by helping small-scale farmers become small-scale entrepreneurs through training to improve their productivity, access to new markets, and access to credit; and (2) by reducing transportation costs through improvements in road networks to improve market access and foster greater market integration. The compact closed on September 25, 2010 and the MCC is undertaking Impact Evaluation and a rigorous Monitoring and Evaluation plan to assess the results of Honduras' compact.
Country Compact
Honduras MCC compact
Honduras MCC Country Brief
Honduras MCC compact Monitoring and Evaluation Plan
Read CGD's summary of the proposal
MCA-Honduras website
By comparison, Honduras's Poverty Reduction Strategy Paper (PRSP) emphasizes the importance of decentralized, participatory political processes and good governance generally in order to address inequality and exclusion based on region, ethnicity, gender, and age. It advocates a program of accelerating equitable and sustainable growth, addressing poverty in a way that is responsive to specific urban and rural contexts, investing in human capital, and strengthening the social safety net for vulnerable groups.
Honduras PRSP
Honduras PRSP Progress Report
Country Eligibility
In the FY2011 selection process, Honduras scored above the median on five of six Ruling Justly indicators (failing the control of corruption hard hurdle), four of five Investing in People indicators, and five of six Economic Freedom indicators. Honduras is a low income country (LIC).
Review Honduras' performance on the FY2011 selection indicators
Review Honduras' performance on the FY2010 selection indicators
Review Honduras' performance on the FY2009 selection indicators
Review Honduras’ performance on the FY2008 selection indicators
Review Honduras’ performance on the FY2007 selection indicators
Review Honduras' performance on the FY2006 selection indicators
Review Honduras' performance on the FY2005 selection indicators
Review Honduras' performance on the FY2004 selection indicators
Learn more about the MCC’s country selection process
Country Facts
Data are for 2009 (or most recent year available)
| Per capita income (GNI, current US$) | $1,800 |
| Poverty rate ($2 a day) | 29.7% |
| GDP growth (annual) | -1.9% |
| Population, total | 7,465,998 |
| Rural population (% of total) | 52% |
| Life expectancy | 72 yrs |
| Literacy rate | 84% |
Source: World Development Indicators 2010
Honduras Country Brief from the World Bank
Other U.S. Policies
Review the USAID Honduras country strategy
Review the USAID Honduras Mission page
Other Donors
The top three donors to Honduras in 2009 were:
|
Donor
|
Gross ODA,
2008-2009 average (USD millions) |
| Spain |
159 |
| United States |
113 |
| IDB Sp. Fund |
72 |
*ODA is official development assistance
Other Resources
Department of State country profile providing background on Honduras’s history and U.S.-Honduras relations.