This report discusses various domestic issues in Honduras, including current political, economic and security conditions. It also examines the implications for U.S. policy.

This report discusses various domestic issues in Honduras, including current political, economic and security conditions. The report also examines the implications for U.S. policy.

The small businessman in an undeveloped country often finds himself isolated from formal, institutional credit sources, either through ignorance or by his non-acceptability as a credit risk. Both his lack of credit and lack of education can limit his participation in national development, and in fact, such development might even work against him as it makes his competitors' easier access to these resources even more important. It was concluded that the educational level achieved by the small businessman in Santos Guardiola is roughly the sixth grade, that the lack of business and financial content in their formal education does not prevent their learning about business and finance, and that a large majority of them use credit in their business. It was further concluded that the loan officers with the four lending institutions have adequate education and training to administer the loans made, that business credit needs are generally satisfied without resort to an informal credit market, and that while the deposits and business loans are expanding for all four institutions the credit union has been able to expand most rapidly by attracting the small saver and the small borrower. In addition, it was concluded that development banks are primarily interested …

Update of previous report on Honduras' political and economic issues, as well as criticism and consequences that may arise from the United States intervening.

This report examines current political and economic conditions in Honduras as well as issues in Honduran-U.S. relations.

Photograph used for a story in the Daily Oklahoman newspaper. Caption: "Erle P. Halliburton, Location of mine in Honduras."