WORLD BANK CONFIRMS ITS COMMITMENT TO CONTINUED SUPPORT TO THE DEVELOPMENT OF HONDURAS

The Managing Director, Juan José Daboub, held dialogues with authorities to discuss options for confronting the increase in food prices.

Honduras, June 9, 2008. - The Managing Director of the World Bank (WB), Juan José Daboub, confirmed the commitment of the institution to support the development plans of the government of Honduras and to provide aid to solve the food crisis.  For the second semester of the year, the institution has a credit program of approximately US$110 million dollars to help the country in several areas such as the improvement of rural competitivity and the production of basic grains and the development of infrastructure through the construction of rural roads, amongst others.
 
During his two day visit, the official met with the President Manuel Zelaya and member of his cabinet, with whom he discussed challenges and opportunities for the country’s economic growth and the short and medium term needs to confront the increase in food prices that affects the region and guarantee food for the most vulnerable groups such as children and elders.

“We want to be allies with the government of Honduras and define long term strategies that will help diminish the impact of the food crisis.  Recently the World Bank approved a fund of US $1,200 millions to  mitigate the crisis at a global level, of that amount approximately  US $200 millions will be earmarked for donations to the poorest countries”, Daboub explained and said that Honduras will be able to receive emergency assistance.  Recently, the government and the World Bank signed a US$ 10 million agreement to diminish the crisis.

According to Daboub, the food crisis matter is of significant importance for Central America where 15 to 22 percent of the population lives with less than a dollar a day.  Aside from importing food products and other goods such as petroleum, the countries in the region could be impacted more than the rest of Latin America.  Amongst the short term alternatives to mitigate the crisis is the channeling of aid to the affected population through social programs, as well as to promote the development of local agriculture during a short tem period. 

“I have listened to Honduran children and youngsters who want opportunities for a better future. This makes us responsible for working harder for Honduras,” indicated Daboub.  Accompanied by Laura Frigenti, World Bank Country Manager for Central America, the Managing Director also held meetings with private sector representatives to discuss avenues of collaboration with the World Bank to promote development, productivity, competitivity and the decrease of crime and violence.  On this last matter, the official recognized that Cardinal Rodríguez Maradiaga is a source of inspiration on how to overcome inequality and insecurity in the country.  .

Daboub visited three different projects financed by the World Bank which benefit poor communities in different areas:  land administration, disaster mitigation and social assistance to children and youth at risk of HIV/AIDS, disadvantaged, in extreme poverty or in social risk. He also listened to community leaders and minors, talked with them on the impact the projects have had in the improvement of their lives and the needs they still face. 

Currently, the World Bank has 15 active projects in Honduras with a US$ 309 million budget to support efforts to promote the achievement of inclusive growth, generation of employment, good governance, transparency and the development of human capital amongst others.