Most of Honduras is mountainous terrain, with a small sheltered Pacific coast to the south and a broad Caribbean shoreline, including part of the virtually uninhabited Mosquito Coast, to the north. After a succession of military governments it returned to full civilian rule in 1984. In 1998 Honduras was devastated by Hurricane Mitch, which resulted in the death of at least 5600 people and damage estimated at some $3 billion.

As in most of Central America, very few pure indigenous groups remain. The estimated 45,000 Miskito Amerindians, and an English-speaking garífuna (black) population on the Caribbean coast united in 1999 to oppose a constitutional amendment allowing foreigners to buy land in coastal areas, traditionally their communal lands. Poverty is at the root of social tension; whites still have the best opportunities.

Rural poverty and strong Roman Catholicism (97% are Roman Catholic) mean that the family is a powerful unifying force. The status of women is low; many work in domestic service.

Strengths

Coffee, flowers, fruit. Economic boost due to hurricane reconstruction. Barely exploited mineral deposits. Hardwoods.

Weaknesses

Servicing of foreign debt. Vulnerability of coffee exports. Banana industry yet to recover from hurricane damage. Slow rate of privatizations. Corruption. Lack of land reform. High unemployment and underemployment. Weak industrial base. Overdependence on hydroelectric power.

The traditional power brokers have been the military, the US embassy, and the United Fruit Company (now called Chiquita), the country's biggest banana producer.

The military held power intermittently from the mid-1950s, until pressure from the US government forced it to restore civilian rule in 1984. During the 1980s, US President Reagan effectively converted the country into a US "aircraft carrier" to counter a perceived communist threat from El Salvador and Nicaragua. Peace in the region then saw a cut in US aid.

The PNH and PLH have few real ideological differences. Presidents, able to serve only one four-year term, have tended to be weak. The PLH introduced unpopular austerity measures in 1994, but also began reducing the autonomy of the military by abolishing conscription. PLH president Carlos Flores, elected in 1997, continued this "demilitarization" process by naming a civilian defense minister in 1999. The presidency was won back by the PNH when Ricardo Maduro was elected in 2001. Reconstruction after the devastation of Hurricane Mitch in 1998 will be a long-term undertaking.

Hurricane aid, and trade with and immigration to the USA are key issues. In 2001 free trade was agreed with El Salvador, Guatemala, and Mexico.

Until 1994 the military operated with virtual impunity. The first civilian defense minister was appointed in 1999, completing the "demilitarization" process begun with the return to civilian rule in 1984.

The banana industry was devastated by Hurricane Mitch in 1998. Oil and mineral deposits are being explored. Hydroelectric supply is erratic.

The unregulated timber, cotton, and cattle industries, land colonization, and pesticides have led to ecological crisis.

In 1998 Hurricane Mitch destroyed roads and bridges across the country; reconstruction will take many years.

Only 66% of people have easy access to health services. Plans were announced in 2000 to privatize the health service.

State-run education follows the US system. The drop-out rate from secondary schools is high.

Overzealous security forces are frequently accused of murdering child members of violent street gangs.

The social structure of Honduras is characterized by great inequalities: 4% of people own 60% of the land. Relief agencies estimate that 85% of people now live below the poverty line, compared with 80% before Hurricane Mitch.

Caribbean coast resorts and the Bay Islands are popular, while exploring the remote region inland from the Mosquito Coast and jungle rafting appeal to the adventurous. The ruined Mayan temples of Copán are a major draw.

Honduras was a Spanish possession until 1821. In 1823, it formed the United Provinces of Central America with four neighboring nations.

• 1838 Declares full independence.
• 1890s US banana plantations set up.
• 1932–1949 Dictatorship of Gen. Tiburcio Carías Andino of PNH.
• 1954–1957 Elected PLH president Villeda Morales deposed, reelected.
• 1963 Military coup.
• 1969 13-day Soccer War with El Salvador sparked by World Cup.
• 1980–1983 PLH wins elections but Gen. Gustavo Alvarez holds real power. Military maneuvers with USA. Trades unionists arrested; death squads operate.
• 1984 Return to democracy.
• 1988 12,000 Contra rebels forced out of Nicaragua into Honduras.
• 1995 Military defies human rights charges.
• 1998 Hurricane Mitch wreaks havoc.
• 1999 Appointment of first civilian defense minister.