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38 CHAPTER 4<br />

Table 4.1 Natural capital<br />

L<strong>and</strong> distribution<br />

Percentage of l<strong>and</strong> Percentage of l<strong>and</strong> Percentage of l<strong>and</strong><br />

size distribution size distribution for size distribution<br />

L<strong>and</strong>hold<strong>in</strong>g Percentage for households households that earn for households<br />

size of all sample that earn > US$1.00/ between US$0.50 <strong>and</strong> that earn < US$0.50/<br />

(manzanas) households person per day US$1.00/person per day person per day<br />

< 2 mz 21.2 6.4 13.4 24.2<br />

2–5 mz 29.5 36.7 33.9 31.9<br />

5–10 mz 19.0 11.1 16.0 20.5<br />

10–20 mz 11.4 2.9 8.3 12.9<br />

20–50 mz 8.7 30.7 6.3 6.4<br />

> 50 mz 7.0 12.2 22.1 4.1<br />

Column category 100 10.9 12.8 76.3<br />

as percentage<br />

of total sample<br />

Climate <strong>and</strong> l<strong>and</strong> quality<br />

Average for Average for households Average for<br />

households that earn between households heads<br />

Sample that earn > US$1.00/ US$0.50 <strong>and</strong> US$1.00/ that earn < US$0.50/<br />

average person per day person per day person per day<br />

Annual ra<strong>in</strong>fall (mm) 1,645 1,765 1,619 1,634<br />

Soil fertility a 2,846 3,136 2,980 2,790<br />

Altitude (feet) 2,231 1,686 2,394 2,274<br />

a<br />

Soil fertility was approximated by potential maize yields (see footnote 34 <strong>in</strong> Chapter 3 for details).<br />

> US$1.00/person/day is less than half of<br />

that of desperately poor households (0.45<br />

vs. 1.0).<br />

Education levels are very low: on average<br />

household members have less than three<br />

years of formal school<strong>in</strong>g (Table 4.2). In<br />

Honduras, although school enrollment keeps<br />

on <strong>in</strong>creas<strong>in</strong>g, dropout rates rema<strong>in</strong> stubbornly<br />

high (World Bank 2000). With limited<br />

educational progress over time (younger<br />

household members tend to have a little<br />

more school<strong>in</strong>g than <strong>the</strong>ir parents), <strong>the</strong><br />

human asset base <strong>in</strong> rural Honduras has<br />

stayed virtually stagnant between 1993 <strong>and</strong><br />

2003 (World Bank 2004a).<br />

Even though all poor households reported<br />

hav<strong>in</strong>g members liv<strong>in</strong>g outside <strong>the</strong><br />

household, richer households have more<br />

members who migrated than poorer households<br />

(Table 4.3).<br />

F<strong>in</strong>ally, ethnic m<strong>in</strong>orities (i.e., nonmestizos)<br />

account for about 15 percent of <strong>the</strong><br />

total population <strong>in</strong> Honduras, <strong>and</strong> our sample<br />

is representative <strong>in</strong> that respect (Table<br />

4.4). With <strong>the</strong> notable exception of <strong>the</strong> Garifunas<br />

(fish<strong>in</strong>g communities on <strong>the</strong> nor<strong>the</strong>rn<br />

Atlantic coast), our data are consistent<br />

with o<strong>the</strong>r studies that show that people<br />

belong<strong>in</strong>g to ethnic m<strong>in</strong>orities tend to have<br />

lower <strong>in</strong>comes.<br />

Physical Assets<br />

Physical assets <strong>in</strong>clude fixed agricultural<br />

assets such as mach<strong>in</strong>ery <strong>and</strong> equipment,<br />

livestock, vehicles, <strong>and</strong> hous<strong>in</strong>g. On average,<br />

households own about US$2,500 <strong>in</strong><br />

physical assets. There exists a clear negative<br />

relationship between <strong>the</strong> value of<br />

total physical assets <strong>and</strong> depth of poverty:<br />

non-extremely poor households, extremely

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