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Honduras - Reforming public investment and the infrastructure sectors : a joint World Bank and Inter-American Development Bank study (English)

"Reforming public investment and the infrastructure sectors" is a report based on the findings of a visit to Honduras in December 1994. High levels of public investment (PI), low levels of savings and an inefficient system of regulation for the provision of infrastructure services constitute a key obstacle to macroeconomic stability and growth in Honduras. Public investment is high because the state has replaced private investment by monopolizing key economic areas and by regulating these areas in ways that restrict or prevent private participation and competition. The role of the state is thus to be redefined in a way that allows the economy to rely more on the market for efficiency and on the private sector for financing. A successful reform of PI and the provision of infrastructure, therefore, needs to confront three key issues: 1) lack of strategy in PI programming and procedural weaknesses in PI implementation; 2) inefficiency and obsolescence of the regulatory framework for the provision of infrastructure services - it combines excessive control over areas which require autonomy, with lack of regulation over areas of public interest that require oversight; and 3) need of an explicit strategy for poverty reduction to be developed in order to guide investment in infrastructure for the social sectors.

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Honduras - Reforming public investment and the infrastructure sectors : a joint World Bank and Inter-American Development Bank study (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/131411468751757365/Honduras-Reforming-public-investment-and-the-infrastructure-sectors-a-joint-World-Bank-and-Inter-American-Development-Bank-study