Honduras, the New Economic Model and Poverty

One principal problem in interpreting the impact of the New Economic Model (NEM) policies upon poverty in Honduras, a problem shared by the accompanying case studies in this volume, is that of identifying the point at which the NEM became operational (or even whether the economic policies adopted could be construed as conforming to a ‘typical’ NEM). Some (Noé Pino, 1990; Noé Pino and Hernández, 1990, p. 56) talk in terms of policy after 1985 being formulated within NEM terms of reference. Others, such as the World Bank (1994a, p. 7), identify the changeover point as 3 March 1990, the date when the Honduran Congress approved the Ley de Ordenamiento Estructural (Decreto No.18–90), a law more popularly referred to as ‘el paquetazo’. While 1990 clearly marks an important change in economic policy (and will be used as the starting point for the NEM), there were some important changes in policy during the 1980s and these will need to be analysed.