Country Report:

Honduras

Contents:
Socio economic situation Honduras
COMAL (Red de Comercialización Comunitaria Alternativa)
Production for consumption
Role of Strohalm
More information

Socio economic situation Honduras

Honduras is one of the largest countries in the Central American region, with a surface of 112.000 km2. Of its 6,5 million inhabitants, 41% is younger than 15. Lack of economic perspectives in the rural areas has lead to a rapid urbanization during the past decades: nowadays the majority of the population (53%) lives in the cities.

Honduras is one of poorest countries of the western hemisphere (after Haiti and Nicaragua) with an extraordinarily unequal distribution of income: the 10% highest earners receive 44% of the national income. At the same time, 53% of the population lives below the poverty line.

Bearing the brunt of Hurricane Mitch in late 1998, Honduras quickly repaired its basic infrastructure, but rebuilding in terms of loss of life and economic setbacks will take much longer.

The income per capita (2001) is approximately US$900 . In the classification according the Human Development Index of the UNDP, Honduras occupies place 116 out of 173 countries, accompanied by countries like Egypt, Bolivia, Gabon and Nicaragua. The main sources of foreign exchange are the export of coffee, bananas and textile products.

COMAL (Red de Comercialización Comunitaria Alternativa)

COMAL is a distribution chain of basic consumer products for more than 400 rural community shops and a network of several farmers’ organizations. The slogan of COMAL is “marketing at a fair price and weight, supporting the small producer and consumer”, which clearly reflects the double focus on both production and consumption. Some of the farmers´ products are merchandised through the community shops and other channels. COMAL attends more than sixteen thousand families in different regions of Honduras.

Production for consumption

The Strohalm project will try to replace, where possible, the money flows in national currency (Lempira) within COMAL and the local communities and substitute them for an internal currency (called “UDI”). Suppliers and local staff will be paid partially in the internal currency which they can spend within the COMAL community shops.

With the (Lempira) money that is “freed” this way, suppliers can be paid in cash (thus improving the negotiation position of COMAL). Alsoloans will be given for small agro industrial initiatives that can be paid off with the internal currency. Moreover, external donations for local projects can be spent in the internal currency through the Fomento-methodology.

The expected results of the project are twofold: A) Activation of the local economy of the intervention zones of COMAL and economic enhancement of COMAL. B) Lessons about the impact, efficiency and applicability of the complementary monetary system method in a rural environment.

Role of Strohalm

Strohalm plays an advisory role, including selection and training of local staff, methodological support, software development, project and impact monitoring.

More information:

• About COMAL : [email protected]
• About Strohalm in Honduras : [email protected]