Content area
Full text
OVERALL ASSESSMENT: The overall level of operating risk in Honduras is high, with violent crime the primary concern. This takes the form of organised crime, gang violence, kidnapping and murder, which the authorities have had limited success in addressing. As a result, operating costs for business are high. Popular disaffection at the failure of policy to reduce the level of social deprivation and improve employment prospects, results in sporadic public protest. Government effectiveness and the legal and regulatory regime are undermined by weak state institutions and insufficient fiscal resources, as well as high levels of corruption. Protest also focuses on the authorities' adherence to an unpopular IMF-backed economic programme.
SECURITY RISK: High levels of unemployment and poverty have contributed to a high violent crime rate in recent years, with youth gangs, known as "maras", blamed for much of the crime wave. Draconian laws outlawing gangs have had a mixed impact on crime rates: most are down but the murder rate remains high. Kidnappings and murder are frequent occurrences in the major cities, with foreign and local industrialists sometimes targeted. The security forces have been accused of human rights abuses. Public demonstrations are common but do not tend to be violent or target foreign interests. There is little risk of terrorism or guerrilla insurgency. Relations with Nicaragua are improving but their long-running territorial dispute is not yet resolved. The risk of armed conflict is minimal.
POLITICAL...