Decentralization Enabling Environment

USAID provides direct support to the Federation of Private Organizations for the Development of Honduras (FOPRIDEH) to advocate for the implementation of policy and legal reforms that would expand and improve the delivery of decentralized public services in key sectors, including health and education.

FOPRIDEH will support fiscal, legal, and administrative public policies that encourage local development, municipal autonomy and broaden citizen participation; as well as opening policy dialogues between authorities, citizens, and stakeholders.

The ultimate goal of this project is to improve government responsiveness to citizen demands and to increase the public perception of the legitimacy of public institutions.Throughout the life of the project FOPRIDEH, USAID will advocate for passage of a comprehensive legal framework for municipal governance and finance, and for decentralizing several mandates and resources that are currently controlled by the central government (i.e., the Municipalities Law, the Decentralization Law, and environmental laws and regulations).

FOPRIDEH will also advocate for the implementation of existing laws and regulations that promote decentralization such as the Municipal Service Law that will come into effect this year.

Civil society advocacy and involvement will rectify ambiguities and inconsistencies in the existing legal framework that hinder decentralization and local governance.

To improve municipal autonomy by increasing local revenue (and thereby lowering dependence on erratic central government transfers), USAID will provide technical assistance directly to municipalities to improve their own revenue collection and fiscal management. This includes rewarding high performers through a municipal challenge grant.

The results by the end of the Decentralization Enabling Environment project will support USAID goals of creating more transparent and effective governance and improving public confidence in the Honduras's state institutions.