Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0050.TXT

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National Trade Data Bank
ITEM ID     : ST BNOTES HONDURAS
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - HONDURAS

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | HONDURAS

US DEPARTMENT OF STATE
BACKGROUND NOTES SERIES, HONDURAS, MAY  1992
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS

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.  Language:  Spanish.  Religions: Roman Catholic, fast-growing
Protestant minority.
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, he 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.