Regulatory policy fund

Project description

Title: Regulatory policy fund
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Foreign Affairs and International Cooperation of Honduras
Country: Honduras
Overall term: 2014 to 2019


Honduras is one of the poorest countries in Latin America, with two thirds of the population classed as poor and over 40 per cent as extremely poor. Honduras is barely able to compete economically on the international stage and its output is falling. Violence and crime are widespread and rarely prosecuted.

The political system is dominated by corruption and abuse of power. This makes it extremely difficult to implement reforms. Various state and non-state actors have expressed their desire for structural reforms but lack the necessary resources and staff capable of implementing them.

There is hardly any collaboration or dialogue between the state, civil society and the private sector. Women, indigenous minorities and the Afro-Honduran population are not sufficiently represented in political life, committees or government. The government’s National Action Plan aims to address the country’s economic and social problems by 2022. However, a range of problems and barriers stand in its way.


Representatives of the state, private sector and civil society are involved in reforms on the rule of law, public safety and security, social inclusion and economic life. The regulatory policy fund establishes alliances that help to deal with or prevent conflicts of interest. Greater participation by several interest groups enables social, economic and political reform processes to be implemented transparently, collectively and holistically. This strengthens the democratic and peaceful consolidation process in Honduras.


The regulatory policy fund is able to respond quickly and flexibly in addressing the needs of the state, civil society and private sector and supports them in implementing medium and long-term structural reforms. The process starts with the respective institution or organisation submitting an application for support. This is reviewed by a committee composed of representatives from the Honduran Ministry of Foreign Affairs and International Cooperation, the German embassy and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. If the application fulfils all criteria, GIZ provides methodological, technical and financial support to the applicant (capacity development approach).


The fund currently supports five individual measures.

For example, an alliance between the government, private sector, international donors and interest groups was set up with help from the regulatory policy fund. This alliance jointly analysed and worked on the economic development opportunities in the La Mosquitia region, including in the areas of fishing, agriculture and forestry.

Another example is a proposal drafted by the association of the Honduran private sector on the regulatory and operational structure of national vocational training. This proposal sets out to tighten collaboration between the education sector and the private sector in the long term.

The regulatory policy fund also helps the institutions to create awareness of their contributions. This is achieved, for example, by way of publications and events.