Honduras

2.1: Country/Economy Profiles

Key indicators, 2009

GDP (PPP) per capita (int'l $), 1980–2009
Population (millions)...................................................7.5
GDP (US$ billions).....................................................14.3 Honduras Western Hemisphere
12,000
GDP per capita (US$) .............................................1,823
9,000
GDP (PPP) as share (%) of world total .................0.05
6,000

3,000

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index

Rank Score Stage of development
(out of 139) (1–7)
GCI 2010–2011.........................................................91 ......3.9 Transition Transition
1 1–2 2 2–3 3
GCI 2009–2010 (out of 133)..................................................89 ........3.9
GCI 2008–2009 (out of 134)..................................................82 ........4.0 Factor Efficiency Innovation
driven driven driven
Basic requirements.............................................................91 ........4.2
1st pillar: Institutions .........................................................108 ........3.4
2nd pillar: Infrastructure.....................................................85 ........3.5 Institutions
7
3rd pillar: Macroeconomic environment .......................100 ........4.2 Innovation Infrastructure
6
4th pillar: Health and primary education .........................82 ........5.5
5
Business Macroeconomic
Efficiency enhancers........................................................104 ........3.5 4 environment
sophistication
5th pillar: Higher education and training .......................106 ........3.4 3
174 6th pillar: Goods market efficiency...................................83 ........4.0 2 Health and
7th pillar: Labor market efficiency ..................................134 ........3.4 Market size 1 primary
education
8th pillar: Financial market development.........................67 ........4.2
9th pillar: Technological readiness...................................94 ........3.2
Technological Higher education
10th pillar: Market size........................................................90 ........3.1 readiness and training

Innovation and sophistication factors ............................98 ........3.2 Financial market Goods market
11th pillar: Business sophistication..................................85 ........3.6 development efficiency
12th pillar: Innovation........................................................106 ........2.8 Labor market efficiency

Honduras Factor-driven economies

The most problematic factors for doing business

Corruption.......................................................................17.5
Access to financing ......................................................14.0
Crime and theft ..............................................................13.1
Inefficient government bureaucracy.........................11.9
Policy instability...............................................................7.5
Restrictive labor regulations .........................................7.5
Inadequately educated workforce...............................5.0
Poor work ethic in national labor force ......................4.9
Tax rates ...........................................................................4.8
Government instability/coups .......................................4.6
Inadequate supply of infrastructure ............................3.9
Inflation .............................................................................1.7
Tax regulations ................................................................1.4
Poor public health ...........................................................1.3
Foreign currency regulations........................................0.9
0 5 10 15 20 25 30
Percent of responses

Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

 Honduras

2.1: Country/Economy Profiles

The Global Competitiveness Index in detail
INDICATOR RANK/139 INDICATOR RANK/139
1st pillar: Institutions 6th pillar: Goods market efficiency
1.01 Property rights.........................................................................93 6.01 Intensity of local competition ..................................................97
1.02 Intellectual property protection ...............................................80 6.02 Extent of market dominance.................................................120
1.03 Diversion of public funds.......................................................110 6.03 Effectiveness of anti-monopoly policy ..................................105
1.04 Public trust of politicians .........................................................90 6.04 Extent and effect of taxation...................................................51
1.05 Irregular payments and bribes...............................................105 6.05 Total tax rate* ..........................................................................95
1.06 Judicial independence .............................................................96 6.06 Number of procedures required to start a business* ...........121
1.07 Favoritism in decisions of government officials ....................119 6.07 Time required to start a business*..........................................52
1.08 Wastefulness of government spending ................................123 6.08 Agricultural policy costs...........................................................63
1.09 Burden of government regulation ...........................................35 6.09 Prevalence of trade barriers ....................................................81
1.10 Efficiency of legal framework in settling disputes ..................95 6.10 Trade tariffs*............................................................................51
1.11 Efficiency of legal framework in challenging regulations ........76 6.11 Prevalence of foreign ownership ............................................50
1.12 Transparency of government policymaking.............................83 6.12 Business impact of rules on FDI .............................................96
1.13 Business costs of terrorism ..................................................111 6.13 Burden of customs procedures...............................................70
1.14 Business costs of crime and violence...................................133 6.14 Degree of customer orientation ..............................................93
1.15 Organized crime ....................................................................133 6.15 Buyer sophistication ................................................................77
1.16 Reliability of police services ..................................................106
1.17 Ethical behavior of firms..........................................................81 7th pillar: Labor market efficiency
1.18 Strength of auditing and reporting standards..........................82 7.01 Cooperation in labor-employer relations..................................72
1.19 Efficacy of corporate boards ...................................................59 7.02 Flexibility of wage determination ..........................................108
1.20 Protection of minority shareholders’ interests ........................88 7.03 Rigidity of employment* .......................................................130
1.21 Strength of investor protection* ...........................................127 7.04 Hiring and firing practices........................................................91
7.05 Redundancy costs* ...............................................................120
2nd pillar: Infrastructure 7.06 Pay and productivity ..............................................................110
2.01 Quality of overall infrastructure ...............................................82 7.07 Reliance on professional management .................................107
2.02 Quality of roads .......................................................................82 7.08 Brain drain ...............................................................................88
2.03 Quality of railroad infrastructure ............................................105 7.09 Female participation in labor force* ......................................123
2.04 Quality of port infrastructure ...................................................32
2.05 Quality of air transport infrastructure ......................................70 8th pillar: Financial market development
2.06 Available airline seat kilometers* ..........................................110 8.01 Availability of financial services ...............................................66
2.07 Quality of electricity supply .....................................................82 8.02 Affordability of financial services.............................................60
175
2.08 Fixed telephone lines* ............................................................90 8.03 Financing through local equity market ..................................132
2.09 Mobile telephone subscriptions* ............................................54 8.04 Ease of access to loans...........................................................97
8.05 Venture capital availability........................................................93
3rd pillar: Macroeconomic environment 8.06 Restriction on capital flows .....................................................79
3.01 Government budget balance* ...............................................103 8.07 Soundness of banks ................................................................37
3.02 National savings rate* .............................................................91 8.08 Regulation of securities exchanges ........................................39
3.03 Inflation*..................................................................................97 8.09 Legal rights index* ..................................................................60
3.04 Interest rate spread* .............................................................104
3.05 Government debt* ..................................................................33 9th pillar: Technological readiness
3.06 Country credit rating*..............................................................98 9.01 Availability of latest technologies ............................................84
9.02 Firm-level technology absorption ............................................78
4th pillar: Health and primary education 9.03 FDI and technology transfer....................................................67
4.01 Business impact of malaria .....................................................89 9.04 Internet users* ........................................................................97
4.02 Malaria incidence*.................................................................103 9.05 Broadband Internet subscriptions* .......................................138
4.03 Business impact of tuberculosis .............................................65 9.06 Internet bandwidth* ................................................................92
4.04 Tuberculosis incidence* ..........................................................75
4.05 Business impact of HIV/AIDS..................................................88 10th pillar: Market size
4.06 HIV prevalence* ......................................................................95 10.01 Domestic market size index*..................................................92
4.07 Infant mortality* ......................................................................88 10.02 Foreign market size index* .....................................................91
4.08 Life expectancy* .....................................................................79
4.09 Quality of primary education .................................................123 11th pillar: Business sophistication
4.10 Primary education enrollment rate* ........................................46 11.01 Local supplier quantity.............................................................92
11.02 Local supplier quality ...............................................................88
5th pillar: Higher education and training 11.03 State of cluster development..................................................77
5.01 Secondary education enrollment rate* .................................105 11.04 Nature of competitive advantage ............................................94
5.02 Tertiary education enrollment rate*.........................................93 11.05 Value chain breadth .................................................................64
5.03 Quality of the educational system.........................................123 11.06 Control of international distribution .........................................82
5.04 Quality of math and science education.................................130 11.07 Production process sophistication...........................................96
5.05 Quality of management schools ...........................................110 11.08 Extent of marketing.................................................................94
5.06 Internet access in schools.......................................................98 11.09 Willingness to delegate authority............................................59
5.07 Local availability of research and training services..................89
5.08 Extent of staff training.............................................................80 12th pillar: Innovation
12.01 Capacity for innovation ............................................................90
12.02 Quality of scientific research institutions ..............................114
12.03 Company spending on R&D....................................................98
12.04 University-industry collaboration in R&D .................................91
12.05 Gov’t procurement of advanced tech products ......................89
12.06 Availability of scientists and engineers .................................114
12.07 Utility patents per million population*.....................................90

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum