Estrategia de Reducción de la Pobreza, Government of Honduras, July 2001.
The five strategic policy areas are: (i) prioritization of actions that aim 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.
Donors in Honduras participated through the G-17 group, which was originally constituted to follow up on the Stockholm declaration and which now serves as a coordinating group for multilateral and bilateral donors.
The consulted regions were: (i) Central, provinces of Francisco Morazán, Comayagua, La Paz and Olancho, (ii) South, provinces of Valle and Choluteca, (iii) Western, provinces of Copán, Ocotepeque, Lempira and Intibucá, (iv) North, provinces of Cortés and Santa Bárbara, (v) Seaboard, provinces of Atlántida, Islas de la Bahía and Yoro, and (vi) Bajo Aguan, provinces of Colón and Gracias a Dios.
The Poverty Assessment will complement the recently published Honduras Development Policy Review on Accelerating Broad-Based Growth, World Bank Report No. 28222-HO, November 8, 2004.
Fondo para la Reducción de la Pobreza (FRP).
The expanded definition of poverty-reducing spending, which was supported by the staffs because it permits establishing a more accurate link between poverty-reducing spending and poverty outcomes, is described in the Honduras PRSP First Progress Report (available at: http://www.sierp.hn/docs/primer_anio_erp.pdf).
Virtual and poverty funds are contrasted in the Joint World Bank-IMF paper on “Tracking of Poverty-Reducing Spending in Heavily Indebted Poor Countries (HIPCs),” March 27, 2001 (www.imf.org or www.worldbank.org).
HIPC completion point document Box 3.
According to the 2004–2007 PRGF arrangement, poverty reduction spending is expected to reach 9.4 percent of GDP by 2006, an increase of about 2 percentage points of GDP with respected to the 2002 level.
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 that those with equal ability to pay taxes should pay the same proportion in taxes.
The authorities have made explicit their commitment to implement the PRSP in the Law for Achieving Poverty Reduction (Decree 77–2004) http://www.sierp.hn/docs/Ley_GestionRP_DEC77–2004.pdf.