1. The first Poverty Reduction Strategy Paper (PRSP) Progress Report of the Government of Honduras (GOH) presents a complete review of the government’s implementation of the PRSP1 to date and updates the PRSP for the period 2004–07. This Progress Report (henceforth the Report) presents the results in the implementation of the PRSP presented to the Boards of the IMF and IDA on October 5, 2001 and October 11, 2001, respectively. The Report incorporates inputs from government, civil society, and the donor community. It addresses four key areas: (i) the consultation process; (ii) progress in poverty reduction; (iii) implementation of policies and programs to date; and (iv) updates to the PRSP with strategic and programmatic areas remaining unchanged2 but incorporating a revised medium-term macroeconomic framework; modifying targets and intermediate indicators, policies and programs to support the updated PRSP; and adjusting public sector management measures and monitoring and evaluation.
Estrategia de Reducción de la Pobreza, Government of Honduras, July 2001.
The five strategic areas are: (i) prioritization of actions that tend to reduce poverty in a sustainable manner; (ii) prioritization of actions favoring the least developed groups and areas of the country; (iii) strengthening of civil society participation and decentralization in the PRS; (iv) strengthening of governance and participatory democracy within the PRS framework; and (v) reduction of environmental vulnerability and its impact on poverty. The six programmatic areas are: (i) accelerating equitable and sustainable economic growth; (ii) poverty reduction in rural areas; (iii) reducing urban poverty; (iv) investing in human capital; (v) strengthening social protection for specific groups; and (vi) guaranteeing the sustainability of the strategy.
Fondo para la Reducción de la Pobreza (FRP).
The Government of Honduras’ First PRSP Progress Report (paras. 96–99) presents the amounts and uses of interim HIPC relief received by Honduras during 2000–03 on the basis of the current tracking mechanism.
Ibidem, para. 194.
Virtual and poverty funds are compared in the Joint World Bank-IMF paper on “Tracking of Poverty-Reducing Spending in Heavily Indebted Poor Countries (HIPCs),” March 27, 2001.
Government of Honduras. First PRSP Progress Report. Table V.1.
Vertical equity implies that those with greater ability to pay taxes should contribute a larger proportion of their income or wealth in taxes. Horizontal equity implies those with equal ability to pay taxes should pay the same proportion in taxes.