The purpose of this paper was to review the economic development strategies followed by Taiwan to attempt to identify possible lesson-learned that could be of service to developing countries such as Honduras that are currently striving to achieve economic growth and fight poverty.
During this investigation, we reviewed the macroeconomic framework and economic development strategies of Honduras, especially those contained in the Poverty Reduction Strategy Paper (PRSP) most recently prepared for Honduras. In the case of Taiwan, we made a brief description of the macroeconomic structure and also a summary of the different strategies implemented from 1950 to the present. We made especial emphasis on the development strategies applied during the early stages of the Taiwanese economic development as they relate more to the current economic situation of Honduras.
We found that among the lessons learned from the Taiwanese experience and that could be applied to the effort of Honduras to improve its economic development status are the promotion of agriculture and land reform, investment in human capital especially in terms of education, and the principle of comparative advantage in terms of trade.
Honduras is currently at a turning point with the implementation of the United States-Central American Free Trade Agreement (CAFTA), the Highly Indebted Poor Initiate (HIPC), the Interamerican Development Bank debt relief negotiation, and other financial strategies. The country could use the current opportunities to guide its economic strategy toward the reduction of poverty and economic improvement.

The purpose of this paper was to review the economic development strategies followed by Taiwan to attempt to identify possible lesson-learned that could be of service to developing countries such as Honduras that are currently striving to achieve economic growth and fight poverty.
During this investigation, we reviewed the macroeconomic framework and economic development strategies of Honduras, especially those contained in the Poverty Reduction Strategy Paper (PRSP) most recently prepared for Honduras. In the case of Taiwan, we made a brief description of the macroeconomic structure and also a summary of the different strategies implemented from 1950 to the present. We made especial emphasis on the development strategies applied during the early stages of the Taiwanese economic development as they relate more to the current economic situation of Honduras.
We found that among the lessons learned from the Taiwanese experience and that could be applied to the effort of Honduras to improve its economic development status are the promotion of agriculture and land reform, investment in human capital especially in terms of education, and the principle of comparative advantage in terms of trade.
Honduras is currently at a turning point with the implementation of the United States-Central American Free Trade Agreement (CAFTA), the Highly Indebted Poor Initiate (HIPC), the Interamerican Development Bank debt relief negotiation, and other financial strategies. The country could use the current opportunities to guide its economic strategy toward the reduction of poverty and economic improvement.

Acuña-Alfaro, J. (2000), “Understanding Central American Development: The Region at the 21st Century Dawn,” Anuario de Estudios Centroamericanos. Universidad de Costa Rica, 26, pp. 1-24.
www.geocities.com/jaacun/UnderstandingCentralAmerica.PDF
Basu, K. (1997), Analytical Development Economics. Cambridge, Massachusetts: MIT Press.
Bosco, J. (1994), “Taiwan Factions: Guanxi, Patronage and the State in Local Politics,” in M. A. Rubinstein, ed., The Other Taiwan: 1945 to Present (Armonk, NY: M. E. Sharpe), pp. 114-144.
Bulmer-Thomas, V. (1987), The Political Economy of Central America since 1920. Cambridge, MA: Cambridge University Press.
Chan, S. and C. Clark (1992), Flexibility, Foresight, and Fortuna in Taiwan’s Development: Navigating between Scylla and Charybdis. London: Routledge.
Chan, S., C. Clark, and D. Lam. (eds.) (1998), Beyond the Developmental State: East Asia’s Political Economies Reconsidered. London: Macmillan.
Checchi, V. (1959), Honduras: A Problem in Economic Development. Westport, CT: Greenwood.
Clark, C. (1989), Taiwan’s Development: Implications for Contending Political Economy Paradigms. Westport, CT: Greenwood.
Clark C. (2000), “Theories of Development and the Taiwan Experience: Success and Challenge from Incongruity,” Annual Meeting of the American Political Science Association, August 31 -September 3, 2000, Auburn University. Online, March 15, http://www.la.utexas.edu/research/cgots/Papers/40.pdf
CEPD (2005), Economic Development, Taiwan, R.O.C., 1st ed. Taipei, Taiwan: Council for Economic Planning and Development.
Consejo Monetario Centroamericano (2004). “Volatilidad Cambiaria en Centroamérica e Implicaciones de la Dolarización de El Salvador,” <http://www.comunidadandina.org/economia/Volatilidad_Centroamerica.ppt>.
Doeringer, P. B. and M. J. Piore (1971), Internal Labor Markets and Manpower Analysis. Lexington, MA: Heath.
European Union (2005), “Honduras Straegy Paper 2002-2006,”
http://europa.eu.int/comm/external_relations/honduras/csp/02_06_en.pdf
Fei, J. C. H. and G. Ranis (1964), Development of the Labor Surplus Economy. Homewood, IL: Irwin.
Fei, J. C. H., G. Ranis, and S. W. Y. Kuo (1979), Growth with Equity: The Taiwan Case. New York: Oxford University Press.
Fields, G. S. (1975), “Rural-Urban Migration, Urban Unemployment and Underemployment, and Job Search Activity in LDC’s,” Journal of Development Economics, 2, pp. 165-188.
Fields, G. S. (1979), “A Welfare Economic Approach to Growth and Distribution in the Dual Economy,” Quarterly Journal of Economics, 372, pp. 325-354.
Fields, G. S. (1980), Poverty, Inequality, and Development. New York: Cambridge University Press.
Fields, G. S. (1984), “Employment, Income Distribution and Economic Growth in Seven Small Open Economies,” Economic Journal, 94, pp. 74-83.
Fields, G. S. (1989), “On-the-Job Search in a Labor Market Model: Ex-Ante Choices and Ex-Post Outcomes,” Journal of Development Economics, 30, pp. 159-178.
Fields, G. S. (1994), “Changing Labor Market Conditions and Economic Development in Hong Kong, the Republic of Korea, Singapore, and Taiwan, China,” World Bank Economic Review, 8, pp. 395-414.
Fields, G. S. (1997), “Wage Floors and Unemployment: A Two Sector Analysis,” Labour Economics, 4, pp. 85-92.
Fields, G. S. (2004), Dualism in the Labor Market: A Perspective on the Lewis Model After Half a Century. Ithaca, NY: Cornell University Press.
Fields, G. S. (2005), “Social Protection Discussion Paper Press Series: A Guide to Multisector Labor Market Models,” Human Development Network, No. 0505, Social Protection Unit, World Bank.

FIAS-World Bank (2001), “The Climate for Foreign Direct Investment and How It Can Be Improved,” http://www.fias.net/ifcext/fias.nsf/AttachmentsByTitle/FIAS_Resources_HONDURAS_FINAL_REPORT_JUNE_27.pdf/$FILE/FIAS_Resources_HONDURAS_FINA L_REPORT_JUNE_27.pdf
FIDE (2005), “Evaluación de las Políticas de Promoción de Inversiones y Exportaciones en Honduras,” http://www.hondurasinfo.hn/es_01.asp
Galenson, W. (ed.) (1979), Economic Growth and Structural Change in Taiwan: The Postwar Experience of the Republic of China. Ithaca, NY: Cornell University Press.
Gold, T. B. (1986), State and Society in the Taiwan Miracle. Armonks, NY: M.W. Sharpe.
Government Information Office (2005), Taiwan Yearbook.
http://www.gio.gov.tw/taiwan-website/5-gp/yearbook/contents.html
Government Information Office (2006), The Fruits of Economic Development ― The Story of Taiwan.
http://www.gio.gov.tw/info/taiwan-story/economy/edown/3-5.htm
Haggard, S. (1990), Pathways from the Periphery: The Politics of Growth in the Newly Industrializing Countries. Ithaca, NY: Cornell University Press.
Harris J. and M. Todaro (1970), “Migration, Unemployment & Development: A Two-Sector Analysis,” American Economic Review, 60:1, pp.126-142.
Ho, S. P. S. (1978), Economic Development in Taiwan, 1860-1970. New Haven, CT: Yale University Press.
IDB (2002), “Country Program Evaluation: Honduras,” Report No. 263-2. http://www.iadb.org/ove/re263eng.pdf
IMF (2000), “Central America: Adjustment and Reforms in the 1990s,”
http://www.imf.org/external/pubs/ft/fandd/2000/03/cardemil.htm.
IMF (2001), “Honduras: Poverty Reduction Strategy Paper,” Country Report, No. 08/31/ 01, March 2006, www.imf.org/external/np/prsp/2001/hnd/01/083101.pdf

IMF (2004), “Honduras: Poverty Reduction Strategy Paper Progress Report,” Country Report, No. 04/30.
http://www.imf.org/external/pubs/ft/scr/2004/cr0430.pdf
IMF (2005a), “Debt Relief under the Heavily Indebted Poor Countries (HIPC) Initiative,” IMF External Relations Department.
http://www.imf.org/external/x10/changecss/changestyle.aspx
IMF (2005b), “Honduras,” Country Report, No. 05/383, Statistical Annex.
http://www.imf.org/external/pubs/ft/scr/2005/cr05385.pdf
IMF (2006), “Honduras: Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries—Staff Report,” Country Report, No. 06-48.
http://www.imf.org/external/pubs/ft/scr/2006/cr0648.pdf
IMF and IDA (2005), “Joint Staff Advisory Note on the Poverty Reduction Strategy Paper,” Second Annual Progress Report, International Monetary Fund and the International Development Association, March 8, 2005.
http://siteresources.worldbank.org/INTPRS1/Resources/Honduras_PRSP-JSAN(Mar8-2005).pdf
Jiménez, M. (2006), “El Canciller Trata Temas Migratorios y de Comercio en EUA,” La Prensa, February 28, 2006.
www.laprensa.com
Kuo, S. W. Y. (1983), The Taiwan Economy in Transition. Boulder, CO: Westview.
La Prensa (2006), “FMI Pide a Mel Zelaya Mantener Austeridad,” February 28, 2006, www.laprensa.com
La Tribuna (2006a), “Pobreza para Rato,” March 1, 2006.
La Tribuna (2006b), “En Octubre Esperan que BID Condone $1400 Millones,” April 11, 2006.
La Tribuna (2006c), “En Octubre Concluirá TLC entre Taiwan, El Salvador y Honduras,” June 1, 2006.
Lewis, W. A. (1954), “Economic Development with Unlimited Supplies of Labour,” Manchester School of Economic and Social Studies, 22, pp. 139-191.
Lewis, W. A. (1972), “Reflections on Unlimited Labor,” in L. DiMarco, ed., International Economics and Development: Essays in Honor of Raul Prebisch (New York: Academic Press), pp. 75-93.
Lewis, W. A. (1979), “The Dual Economy Revisited,” Manchester School of Economic and Social Studies, 47, pp. 211-229.
Lewis, W. A. (1984), “The State of Development Theory,” American Economic Review, 74, pp. 1-10.
Li. K. T. (1976), The Experience of Dynamic Economic Growth on Taiwan. Taipei, Taiwan: Mei Ya.
Li, K. T. (1988), The Evolution of Policy Behind Taiwan’s Development Success. New Haven, CY: Yale University Press.
Lin, H. I. (2006), “The New Six-Year National Development Plan of the Republic of China. The Republic of China in APEC,”
http://www.gio.gov.tw/taiwan-website/5-gp/2002apec/ap31.htm
Lin, Y. (1995), “The Economic Determinants of Foreign Direct Investment: The Case of Taiwanese Multinational Enterprises,”
http://digitalcommons.pace.edu/dissertations/AAI9611626/
Little, I. M. D. (1979), “An Economic Reconnaissance,” in W. Galenson, ed., Economic Growth and Structural Change in Taiwan: The Postwar Experience of the Republic of China ( Ithaca, NY: Cornell University Press), pp. 448-507.
Loayza, N., P. Fajnzylber, and C. Calderón (2004), “Economic Growth in Latin America and the Caribbean, Stylized Facts, Explanations and Forecast,” World Bank Working Paper, No. 265.
http://siteresources.worldbank.org/DEC/Resources/ EconGrowthinLatinAmerica.pdf
Mancall, M. (1964), Formosa Today. New York: Frederick A. Praeger.
Mao, Y. K. and C. Schive (1995), “Agricultural and Industrial Development in Taiwan,” in J.W. Mellor, ed., Agriculture on the Road to Industrialization (Baltimore: Johns Hopkins University Press), pp. 23-66.
Meisler, A. (2004), “Think Globally, Act Rationally,” Workforce Management, January, pp. 40-45.
MOEA (2006), “Simultaneous Enterprise Creation and Development,”
http://w2kdmz1.moea.gov.tw/English/index.asp
MOEAID (2006), “History of Industrial Development,” Ministry of Economy Affairs, Industrial Development Bureau, Taiwan.
http://www.moeaidb.gov.tw/portal/english/about3.jsp#01
MPI (2006), “Remittance Trends in Central America,”
http://www.migrationinformation.org/Feature/display.cfm?id=393
Myers, R. H. (1984), "The Economic Transformation of the Republic of China on Taiwan,” China Quarterly, 99, pp. 500-528.
Naisbitt, J. (1996), Megatrends in Asia. New York: Simon & Schuster.
Olds, K. (2003), "The Economic History of Taiwan,” EH. Net Encyclopedia, http://eh.net/encyclopedia/article/olds.taiwan.economic.history
National Cattlemen’s Beef Association (2006), “Ongoing Free Trade Agreement Negotiations ─ Foreign Trade Free Negotiations Talking Points,”
http://hill.beef.org/newview.asp?DocumentID=11499
Perkins, D., S. Radelet, D. Snodgrass, M. Gillis, and M. Roemer (2001), Economics of Development. New York: Norton.
Ranis, G. (1979), “Industrial Development,” in W. Galenson, ed., Economic Growth and Structural Change in Taiwan: The Postwar Experience of the Republic of China (Ithaca NY: Cornell University Press), pp. 206-262.
Ranis, G. (ed.), 1992, Taiwan: From Developing to Mature Economy. Boulder, CO: Westview.
Ranis, G. (2004), “Arthur Lewis’ Contribution to Development,” Thinking and Policy Center Discussion Paper, No. 891, Economic Growth Center, Yale University.
Ray, D. (1998), Development Economics. Princeton: Princeton University Press.
Schultz, T. W. (1964), Transforming Traditional Agriculture. New Haven, CT: Yale University Press.
Sen, A. K. (1966), “Peasants and Dualism With and Without Surplus Labor,” Journal of Political Economy, 74, pp. 425-450.
Sen, A. K. (1967), “Surplus Labor in India: A Critique of Schultz Statistical Test,” Economic Journal, 77, pp. 154-161.
Shih, C. F. (1994), “An Attempt at Understanding Taiwan’s Economic Development,” http://www.wufi.org.tw/eng/ecodevl.htm
Sih, P. K. T. (1973), Taiwan in Modern Times. New York: St. Johns University Press.
Smiley, D. H. (1995), “Problems with Development Economics ― Can Labor-Capital Models Predict the Responses of Agrarian Societies to Development?” American Journal of Economics and Sociology.
http://www.findarticles.com/p/articles/mi_m0254/is_n4_v54
Temple, J. (1999), Income Distribution in the Harris-Todaro Model. Oxford, UK: Oxford University Press.
Thorbecke, E. (1979), “Agricultural Development,” in W. Galenson, ed., Economic Growth and Structural Change in Taiwan: The Postwar Experience of the Republic of China (Ithaca, NY: Cornell University Press), pp. 132-205.
Tien, F. F. (1996), “How Education Drove Taiwan’s Economic Development,” Economic Reform Today. Market Solutions to Social Issues, Number 4.
http://www.cipe.org/publications/fs/ert/e22/tieE22.htm
Todaro, M. P. (1969), “A Model of Labor Migration and Urban Unemployment in Less Developed Countries,” American Economic Review, 39, pp. 138-148.
Todaro, M. P. (1985), Economic Development in the Third World, 3rd ed. New York: Longman.
Todaro, M. P. and S. C. Smith (2003), Economic Development. Boston, MA: Addison Wesley.
UNDP (2005), “Human Development Report, Honduras,”
http://hdr.undp.org
United States Department of the Army (2006), “Honduras Macroeconomic Indicators,” Country Studies, 2003-2005.
http://countrystudies.us/honduras
Wade, R. (1990), Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton, NJ: Princeton University Press.

Washington Times (2000), “Honduras,” International Special Reports, The Washington Times Advertisement Department, March 8, 2006.
http://www.internationalspecialreports.com/theamericas/00/honduras/5.html
www.bch.hn
WHO 2001, “Honduras,”
http://www.paho.org/english/sha/prflhon.htm
Winckler, E. A. and S. Greenhalgh (eds.) (1988), Contending Approaches to the Political Economy of Taiwan. Armonk, New York: Sharpe.
World Bank (2004a), “Honduras Development Policy Review,” Report, No. 28222-HO, Central America Department.
http://wwwwds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/12/15/000160016_20041215163554/Rendered/PDF/282220HO.pdf
World Bank (2004b), “Investment Climate Assessment-Honduras,” Vol. 1, Latin America and the Caribbean Region, November 27, 2004.
http://www.ifc.org/ifcext/economics.nsf/AttachmentsByTitle/IC-honduras.pdf/$FILE/IC-honduras.pdf
World Bank (2004c), “ The Republic of Honduras Poverty Reduction Strategy Paper First Annual Progress Report and Joint IDA/IMF Staff Assessment,” Report, No. 27648-HO.
http://www- wds.worldbank.org/servlet/WDSContentServer/WDSP/ IB /2004/07/09/000012009_20040709140428/Rendered/PDF/276480HN.pdf
World Bank (2005), “Honduras at a Glance,”
http://devdata.worldbank.org/AAG/hnd_aag.pdf
Wu, R. I. and B. Naughton (1995), “Economic Development and Future Prospects of Taiwan,” Shorenstein Reports on Contemporary East Asia, Number 6, Institute of East Asian Studies, October 1995.
http://ieas.berkeley.edu/shorenstein/1995.10.html
Yap, O. F. (2005), Citizen Power, Politics and the “Asian Miracle”. London: Lynne Rienner .
Yip, G. S. (2000), Asian Advantage. Cambridge, Massachusetts: Perseus Books.

Websites:
Honduras
1. http://www.imf.org/external/country/HND/index.htm
2 http://www.internationalspecialreports.com/theamericas/00/honduras/14.html
3. http:/www.internationalspecialreports.com/theamericas/00/honduras/5.html
4. http://www.bch.hn
5. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/HOND URASEXTN/0,,contentMDK:20435966~menuPK:50003484~pagePK:141137~piPK:141127~theSitePK:295071,00.html
6. http://www.sefin.gob.hn/erp.html
7. http://www.sierp.hn.
8. http://www.photius.com/wfb1999/honduras/honduras_economy.html

Taiwan:
1. http://www.gio.gov.tw/
2. http://www.gio.gov.tw/info/taiwan-story/economy/eframe/frame3.htm
3. http://210.69.188.227/search-cgi/query_run.exe
4. http://www.cepd.gov.tw/business/business_sec3.jsp?linkID=77&parentLinkID= & businessID=1876&gosec2=y&pageno=&userID=16&nowpage=1.2005development
5. http://www.taiwan.com.au/Polieco/History/ROC/report02.html
6. http://www.nationsencyclopedia.com/Asia-and-Oceania/Taiwan-ECONOMIC-DEVELOPMENT.html