What are the economic challenges of Honduras?

Answer 1

Honduras is, in economic terms a "dependent capitalism." During the cold war, economists in the United States divided the world into three sections; 1) The "first" world, or the free capitalist/industrialized nations. 2) The "second" world or the communist block. 3) Finally the "third" world, to which they applied the term "dependent capitalism." A first world country is an independent capitalism; it needs no foreign aid of any sort, is completely self sufficient and it makes many of its own products. A dependent one, needs foreign aid (basically scraps), for just about everything ranging from chemicals, electronics, factory equipment, and in some cases know how. Japan, still qualifies as an independent capitalism, largely because its HUMAN resources, the people, are well educated, and the Japanese themselves are the country's "raw material." Because of their education and work ethic, on the world market that translates to heavy economic gain, gains from which you can acrue enough wealth for a self-sufficient economy. However Honduras does not have a fully developed human resource, as quality education is restricted only to a very small segment of the population. Because the modern industrialized world is so increasingly dependent on a combination of knowledge and skill, people with no education at all, are becoming increasingly marginalized, and this has become a major economic issue for "third world" and "developing" nations across the globe.