Political Space, Pro-Poor Growth and Poverty Reduction Strategy in Honduras: A Story of Missed Opportunities

Abstract

This article assesses the political and socio-economic consequences of the Poverty Reduction Strategy (PRS) in Honduras. The analysis deploys several techniques, including poverty narratives, stakeholder analysis and taxonomy analysis, and is also based on quantitative and qualitative data, including socio-economic indicators, PRS spending execution and interviews with stakeholders. It argues that in Honduras the PRS constituted a missed opportunity to expand the political space in which poverty reduction plans are formulated and to deliver pro-poor growth. The inclusion of multiple actors with different interests, capacities and influence led to an emphasis on constructing consensus, but this was too imprecise to enable a clear set of priorities to be articulated, let alone a pro-poor growth agenda. The article concludes that by unilaterally shifting the growth pillar of the PRS towards infrastructure investments and trade integration, Honduras may have sacrificed an opportunity to support a truly participatory democratic process leading to effective pro-poor policies.