Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/honduras.bkg

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#CARD:Honduras:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  HONDURAS
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS

MAY 1992
OFFICIAL NAME:  Republic of Honduras

PROFILE
Geography
Area:  112,088 sq. km. (43,277 sq. mi.); about the size of Tennessee.
Cities: Capital--Tegucigalpa (642,500--1988); San Pedro Sula
metropolitan area (327,000). Terrain:  Mountainous.
Climate:  Tropical to subtropical depending on elevation.

People
Nationality: Noun and adjective--Honduran(s). Population (1991): 4.8
million. Population growth rate: 3%. Ethnic groups: 90% mestizo (mixed
Indian and European); others of European, Arab, African, Asian descent;
and indigenous Indians.  Religions: Roman Catholic, fast-growing
Protestant minority. Language: Spanish.
Education: Years compulsory--6. Attendance--70% overall, but less than
16% at junior high level. Literacy--68%. Health: Infant mortality
rate--60/1,000. Life expectancy--63 yrs. Work force (20% of the work
force is organized in urban unions and rural federations).  GDP (1990):
Services-- 42%. Natural resources--29%.  Manufactures--16%.
Construction/Housing--10%.

Government
Type: Democratic constitutional republic. Independence: September 15,
1821.  Most recent constitution: 1982.
Branches: Executive--president, directly elected to 4-yr. term.
Legislative--unicameral National Congress, elected for 4-year term.
Judicial--Supreme Court of Justice (appointed by Congress and confirmed
by the President), several courts of original jurisdiction.
Registered political parties:  Liberal Party, National Party, Innovation
and Unity Party, and Christian Democratic Party. Suffrage: Universal
adult.
Administrative subdivisions: 18 departments.
Flag: Two blue horizontal bands separated by a white center stripe with
five blue stars.

Economy
GDP (1991): $2.5 billion. Real growth rate (1991):  2%. Real Per capita
GDP (1991): $516.  Inflation rate  (1991): 23%.
Natural resources: Arable land, hydroelectric power, forests, minerals,
fisheries.
Agriculture (26% of GDP): Main products--bananas, coffee, shrimp, sugar,
fruits, basic grains, livestock.
Industry (15% of GDP): Types--textiles and apparel, cement, wood
products, cigars, foodstuffs.
Trade (1990): Exports--$915 million (f.o.b.): bananas, citrus fruits,
coffee, lead/zinc concentrates, shrimp, beef, lumber, and sugar. Major
market--US (50%). Imports--$1 billion: petroleum, manufactured goods,
machinery, chemicals.  Major supplier--US (40%).
Official exchange rate (1992): 5.40 Lempira=US$1.
Fiscal year: Calendar year.

PEOPLE
 About 90% of the population is mestizo.  There also are small
minorities of European, African, Oriental, and American Indian descent.
Most Hondurans are Roman Catholic.  Spanish is the predominant language,
although some English is spoken along the northern coast and on the
Caribbean Bay Islands.  Native Indian dialects and Garifuna are also
spoken.
 Honduras offers some of the most impressive examples of Mayan culture,
especially the Copan ruins near the Guatemalan border, and artifacts in
the National Museum in Tegucigalpa.
 Several Honduran authors achieved international prominence in the early
20th century, notably the modernist Juan Ramon Molina, and the poets
Roberto Sosa and Daniel Lainez.  Recent years have seen notable
achievement in the plastic arts.  The painter Jose Antonio Velasquez is
famous for his brightly colored primitives, as is Roque Zelaya.
 There are small but active cultural communities that sponsor poetry
readings, art exhibits, and musical events at the National University
and at the Manuel Bonilla National Theater in Tegucigalpa and in the
Cultural Center of San Pedro Sula.

HISTORY
 Honduras has obvious similarities in language, culture, customs, and
religion with its Central American neighbors. However, its historical
and evolutionary pattern of development has been quite different.  Since
the Spanish colonists based their empire in Central America on the
Meso-American Indian civilizations and their trading partners to the
south, they tended to neglect Honduras.
 This neglect caused difficulties long after the five Central American
republics gained independence from Spain on September 15, 1821.  The
disparity between the socio-political and economic development of
Honduras and its regional neighbors exacerbated harsh partisan battles
among provincial leaders, resulting in the collapse of the Central
American Federation in 1838.  The Honduran national hero, Gen. Francisco
Morazan, was a leader in unsuccessful efforts to maintain this
federation.  Until 1922, the chief aim of Honduran foreign policy was to
restore Central American unity.
 Honduras has had difficulty establishing a stable government.  Since
independence, the country has been plagued with nearly 300 internal
rebellions, civil wars, and changes of government, more than half
occurring during this century.  Moreover, with a severe lack of economic
infrastructure and socio-political integration, Honduras did not enjoy
the social or economic advantages of nationalism, central decision
making, or substantial private investment.
 During the relatively stable but austere years of the Great Depression,
Honduras was controlled by a harsh authoritarian, Gen. Tiburcio Carias
Andino, whose ties to dictators in neighboring countries and to the US
banana companies on the North Coast enabled him to maintain power until
1948.  By then, provincial military leaders had begun to gain control of
the two major parties, the Nationalists and the Liberals.  After two
more authoritarian civilian administrations controlled by the National
Party and a general strike by banana workers on the North Coast in 1954,
young military reformists staged a palace coup in October 1955 that
installed a provisional junta and paved the way for constituent assembly
elections in 1957.
 This assembly, led by the opposition Liberal Party, appointed Dr. Ramon
Villeda Morales as president and transformed itself into a national
legislature for a 6-year term.  The Liberal Party and its tenets
flourished during this time.
 Simultaneously, the military took steps for the first time to become a
professional institution independent of leadership from any one
political party.  The newly created military academy graduated its first
class in 1960.  These changes were particularly striking during the
civilian presidency of Ramon Villeda Morales (1957-63).  However, in
October 1963, conservative military officers preempted constitutional
elections and deposed Villeda in a bloody coup.  The military officers
exiled Liberal Party members and took control of the national police,
which they organized into a special security force.  The armed forces,
led by Gen. Lopez Arellano and supported by the National Party, governed
until 1982.  A civilian president, Ramon Cruz (National Party), took
power briefly in 1970, but proved unable to manage the government.
Popular discontent had continued to rise after the 1969 border war with
El Salvador, and, in December 1972, Lopez staged another coup.  After
1972, Gen. Lopez adopted more progressive policies, including land
reform.  Nonetheless, his regime was finally brought down in the
mid-1970s by successive scandals.  The government reportedly misused
international emergency aid after Hurricane Fifi ravaged the North Coast
in 1974 and government officials were accused of accepting a large bribe
in 1974 from the United Brands Company in exchange for reduced taxes on
banana exports.  This scandal, known as "Bananagate" in the United
States, led to the suicide of United Brands President Eli Black.
 Gen. Lopez' proteges continued armed forces modernization programs in
the ensuing years, building army and security forces and concentrating
on an air force superior to its neighbors.  The successive regimes of
Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (1978-83) largely built
the current physical infrastructure and telecommunications system of
Honduras.  The country also enjoyed its most rapid economic growth
during this period, due to buoyant international demand conditions and
the availability of foreign commercial lending.
 During this time, the military moved slowly toward returning the
country to civilian rule.  However, following the overthrow of Anastasio
Somoza in Nicaragua in 1979 and the generalized instability in El
Salvador during the same period, culminating in the October 1979
reformist coup there, military plans to return the country to civilian
rule were accelerated.  A constituent assembly was popularly elected in
April 1980, and general elections were held in November 1981.  A new
constitution was approved in 1982, and the Government of President
Roberto Suazo Cordoba (Liberal Party) assumed power.  Suazo relied on US
support to confront the challenges of a severe economic recession, the
threat posed by the new revolutionary Marxist government in Nicaragua,
and civil war in El Salvador.  Close cooperation on political and
military issues with the United States was complemented by ambitious
social and economic development projects sponsored by the US Agency for
International Development (USAID).  Honduras became host to the largest
Peace Corps mission in the world, and nongovernmental and international
voluntary agencies proliferated.
 Most important, with strong endorsement and support from the Honduran
military, the Suazo Administration ushered in the first peaceful
transfer of power between civilian presidents in more than 30 years when
newly elected Jose Azcona Hoyo (also a Liberal) assumed the presidency
in January 1986.  The Liberal Party gained power through an idiosyncrasy
of the electoral law, which gave the presidency to the candidate with
the most votes from the party with the highest combined number of votes
rather than the single candidate with the greatest plurality.  National
Party candidate Rafael Callejas (with 42% of the vote) peacefully
conceded defeat to Azcona, whose Liberal Party won more than 50% of the
vote with several candidates running (Azcona himself had won only 27% of
the national vote).
 President Rafael Leonardo Callejas took office in January 1990,
following election to a 4-year term of office in November 1989.
Callejas' National Party won a majority in the unicameral National
Congress, which also serves a 4-year term.  One of Callejas' first acts
as President was to have the Congress enact an economic reform package
intended to reduce the deficit and effect widespread structural reforms.
 The government also took steps to address the over-valued exchange rate
and major structural barriers to investment and the development of new
exports.  In 1990 and 1991, these needed reforms produced higher rates
of inflation, while the uneven administration of the reform program
resulted in lower rates of economic growth.  However, the expectations
for 1992 and 1993 are for modest levels of growth and lower levels of
inflation.
 Politically, the Callejas Administration has maintained good relations
with the armed forces, still a powerful institution in Honduras.
Meanwhile, the National Congress has become more independent, expressing
views on both domestic and external policy.  There are no known
political prisoners, and the privately owned media frequently exercises
its right to criticism (even of the most sensational sort) without fear
of reprisals.  Organized labor represents less than 20% of the work
force but has considerable economic and political influence.  Reinforced
by the media and several political watchdog organizations, human rights
and civil liberties such as freedom of speech, freedom of the press, and
freedom of labor and political organization are reasonably well
protected. While the historically dominant military now plays a less
intrusive role in the country's civilian government, it still operates
with a great deal of institutional and legal autonomy, particularly in
the realm of security and military affairs.  Although the Callejas
Administration has taken some initiatives to improve the human rights
situation, it has yet to ensure that human rights violations are fully
investigated and that perpetrators of those violations, whether members
of the military or civilians, are prosecuted in a court of law.

GOVERNMENT
 The 1982 constitution continues the Honduran tradition of a strong
executive, a unicameral legislature (the National Congress), and a
judiciary appointed by the National Congress.  The president is elected
to a 4-year term directly by popular vote.  Congressional seats are
assigned proportionally to the parties' candidates according to the
number of votes each party receives.  The judiciary includes a Supreme
Court of Justice, courts of appeal, and several courts of original
jurisdiction, such as labor, tax, and criminal courts.
 For administrative purposes, Honduras is divided into 18 departments,
with departmental and municipal officials elected for 2-year terms.  The
president, members of Congress, mayors, and other municipal officials
are elected to 4-year terms.

Principal Government Officials
President--Rafael Leonardo Callejas Romero
Minister of Foreign Relations--Mario Carias Zapata
Ambassador to the US--Jorge Ramon Hernandez Alcerro
Ambassador to the UN--Roberto Flores Bermudez
Ambassador to the OAS--Juan Cueva Membreno

 Honduras maintains an embassy in the United States at 4301 Connecticut
Avenue NW, Suite 100, Washington, DC 20008 (tel. [phone]).

POLITICAL CONDITIONS
 The two major parties (Liberal and National), run active campaigns
throughout the country.  Their ideologies are primarily centrist,
particularly regarding national security issues and foreign policy.  On
domestic policy, the diverse factions within the Liberal Party tend to
pull the party leftward from the center-right Nationalists, offering
more populist rhetoric--if not concrete programs--than their
conservative opponents.  The coalition-style Liberal/National government
pact of 1986 has since disappeared in the politics which have preceded
the upcoming election year.  Nevertheless, the two major parties in the
legislature continue to cooperate on many national issues.
 The two smaller registered parties, the Christian Democrats and the
Innovation and Unity Party, remain marginal left-of-center groupings
with few campaign resources and little organization.  Despite
significant progress in training and installing more skillful advisers
at the top of each party ladder, electoral politics in Honduras remain
traditionalist and paternalistic.
 Leftist leaders who recently returned from exile now pursue their
political objectives via legitimate avenues.  Rigoberto Padilla Rush,
the repatriated head of the Honduran Communist Party, is involved in an
effort to form the left-leaning "Patriotic Renovation Party" as a
vehicle for his continuing political ambitions.

ECONOMY
 Honduras is one of the poorest and least developed countries in Latin
America. The economy is based primarily on agriculture, but there are

extensive forest, marine, and mineral resources.  Although unemployment
officially is estimated at 12%, actual underemployment is perhaps as
high as 30-40%.
 During the 1980s, Honduras' economy was battered by regional
instability, unfavorable terms of trade, and the unwillingness of
successive governments to adopt appropriate economic policies.  After
the severe recession of the early 1980s, Honduras achieved moderate but
steady economic growth, partly due to sizable US economic assistance.
During the late 1980s, the economy experienced strong growth, sparked by
the mining, construction, and service sectors and was supported by large
transfers of foreign assistance, particularly from the United States.
 In 1990, the Callejas Administration undertook a far-reaching economic
adjustment program with structural reforms geared to the restoration of
balance-of-payments equilibrium, control of inflationary pressures,
clearance of outstanding arrears with multilateral creditors, and the
establishment of a solid productive base to enhance sustainable economic
growth, through the active participation of the private sector.
 The government deregulated restrictive pricing and marketing
mechanisms, liberalized trade, reduced the fiscal deficit, and sharply
devalued the Lempira.  These dramatic reforms have created a stronger
foundation for long-term economic growth.  However, the short-term
effects, particularly a reduction in disposable income and increased
urban unemployment, have been painful for the majority of Hondurans.
 After a decline in 1990, the economy grew by 2% in 1991.  Inflation,
which has traditionally been low by Latin America standards, surged to
35% in 1990 but dropped to 23% in 1991.  Honduras is also moving from
protectionism to greater openness in trade and from import substitution
to an export orientation.  Agriculture, which is expected to provide the
motor for this country's export-led growth, grew by 4% in real terms,
despite serious late year flooding and a prolonged strike against the
Chiquita Banana Company.  Manufacturing grew 3%, while other major
categories experienced declines.
 Honduras paid some $250 million in arrears to international financial
institutions (IFIs) in June 1990, with the help of a bridge loan from
the US  and financing from the World Bank, IMF, Japan, and Venezuela.
 The United States is Honduras' chief trading partner, supplying about
40% of its imports and purchasing about half of its exports.  Leading
Honduran exports to the United States include coffee, bananas, other
fruits and vegetables, seafood, and beef.  Coffee and bananas alone
contribute 62% of Honduran export revenues.  The United States accounts
for about 85% of total direct foreign investment in Honduras, worth
about $230 million.  The largest US investments in Honduras are in fruit
(particularly banana and citrus) production, petroleum
refining/marketing, and mining.  In addition, US corporations have
invested in tobacco, shrimp culture, beef, poultry and animal-feed
production, insurance, leasing, food processing, brewing, and furniture
manufacturing.
 Environmentally, slash-and-burn agricultural methods continues to
destroy Honduran forests.  There is a growing awareness on the part of
Hondurans of the need to confront the problem.  The armed forces has
become more involved in environmental issues ranging from reforestation
projects to forest fire-fighting.

FOREIGN RELATIONS
 President Callejas is considered one of the leaders of regional
integration efforts.  Hondurans view regional political harmony as a
prerequisite for meaningful economic integration.  The government
proposed in July 1991 a plan to revitalize the stalled Central American
Security Commission (CASC) treaty on arms control in Central America.
Honduras also played an active role in launching the Partnership for
Democracy and Development and can be expected to support and benefit
from its initiatives.
 Honduras and El Salvador signed a treaty in 1980 ending the state of
war that had existed since the 1969 "Soccer War." The two countries
agreed to litigation in the International Court of Justice at The Hague
over the final boundary between their countries.  The decision is
expected in early 1992.
 Despite indications it may do so, Nicaragua has yet to drop its
International Court of Justice suit against Honduras for support of the
Nicaraguan Resistance.  Virtually all refugees from Nicaragua, El
Salvador, and Guatemala have been repatriated.

DEFENSE
 Honduras traditionally has sought to protect itself by maintaining a
strong air force. The dramatic increase in the size and capability of
the Nicaraguan military in the 1980s increased Honduran concern with
security on its southern border. Honduras' opposition to radical leftist
forces in the area made the country a target for subversive and
terrorist attacks.  In response to these threats, Honduras concentrated
on developing a mobile deterrent force with a strong counter terrorism
capability.
 The 24,000-strong Honduran Armed Forces, which include the army, navy,
air force and police, moved toward acceptance of civilian authority in
the 1980s.  In 1990, the armed forces accepted severe budget cuts as a
part of the government's economic reform program.  With the resolution
of the Nicaraguan civil war and the signing of the peace accords in El
Salvador, it is likely that the military will see its budget further
reduced.  Honduras has submitted a draft regional arms control treaty
for consideration by its neighbors.

US-HONDURAN RELATIONS
 Honduras has been a staunch friend of the United States in times of
great regional tensions.  Throughout the tumultuous 1980s, Honduras
shared US policy objectives of resisting the threats posed by a
revolutionary Marxist government in neighboring Nicaragua and an active
leftist insurgency in El Salvador.  The Honduran Government played a key
 role in negotiations which culminated in the 1990 Nicaraguan elections.
 Both the United States and Honduras have expressed a desire to maintain
these ties of friendship and common purpose.
 The United States cooperates with Honduras in efforts to achieve
sustained economic, political, and social development and to combat drug
trafficking throughout the region. It encourages the responsible
participation of US investment that contributes to Honduran development
and bilateral trade. The United States favors stable, peaceful relations
between Honduras and its Central American neighbors.  Facing various
economic needs and growing security concerns, Honduras attaches
significant importance to US material assistance and political
support--the most visible manifestation being the conduct of joint
military exercises.
 During 1991, official US assistance to  Honduras fell to $144.8 million
from $192 million in 1989, a trend which is expected to continue.  In
September 1991, the US announced its decision to forgive $434 million in
bilateral debt under USAID and PL-480 programs.  This forgiveness, the
largest to date in Latin America, eliminated 96% of Honduras' bilateral
debt to the US.  To make up for falling levels of bilateral economic
aid, Honduras is also exploring opportunities to increase its exports to
the US and elsewhere.  USAID and the US Information Agency are active in
Honduras.  The Peace Corps has some 260 volunteers, with programs
primarily in health, education, and forestry.
Principal US Officials
Ambassador--Cresencio S. Arcos
Deputy Chief of Mission--James C. Cason
Consul General--Fernando Sanchez
USAID Director--Marshall Brown
US Information Service--Terry Kneebone
US Defense Attache--Col. Charles Hogan
US Military Group Commander--Col. Larry Gragg

 The US Embassy in Honduras is located on Avenida La Paz, Tegucigalpa.
Tel. [phone], Fax: [phone].

Travel Notes
 Climate and clothing: Tegucigalpa's climate is fresh and
spring-like--tropical during the day and cool at night--except from
mid-November to February, when the days are cooler.  March, April, and
May are hot and dry, with considerable smoke in the air from
slash-and-burn agriculture.  The rainy season begins in mid-May and
continues through mid-October.  Heavy showers fall once or twice a day,
with rains which tend to be heavier toward the end of the rainy season.

 Customs: Americans must have a passport.  Visas are not required for
bearers of US diplomatic, official, or regular passports for tourist or
business visits of under 60 days.  The Honduran Embassy or consulates
issue visas and answer queries regarding tourism in Honduras.  In
general, no immunizations are required for entry.
 Health:  Water must be boiled and filtered and often is in short supply
during the dry season.  Fruits and vegetables must be cleaned carefully
and meats cooked well.  The main health hazards include rabies and
various intestinal diseases, including typhoid, hepatitis, parasites,
and dysentery.  There have been reports of cholera as well, although not
in epidemic proportions.  Take a malaria suppressant if traveling
outside Tegucigalpa.
 Tourist attractions: Honduras offers pre-Columbian Mayan ruins at
Copan, pristine beaches on the North shore, scenery with volcanoes and
mountains, and sailing and scuba diving in the coral reef off the Bay
Islands. (###)


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