Poverty in Honduras has hardly changed since 1998. A successful poverty reduction strategy must be an integrated process that includes components of broad-based economic and institutional development. This report provides an analytical basis for supporting the Poverty Reduction Strategy (PRS) and the country's policy decisions. Specific areas of analysis are contained in four chapters and include: 1) the country poverty profile; 2) labor markets; 3) gender and child labor; and 4) the distribution and incidence of public spending. The executive summary highlights key poverty reduction challenges and provides an outline of policy options and recommendations Honduras may wish to pursue as part of its overall development strategy during the next four years of the new government's administration. Volume 2 is comprised of background papers on the topics of: poverty analysis; the labor market; public spending; and cash transfers.
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