Improving Educational Quality in Honduras: Building a Demand-Driven Education Market

Abstract

On average, Honduras spends much more on public education than other Latin American countries. However, Honduras’ increased spending on education has not resulted in superior educational outcomes. The Honduran education system faces problems of general service provision, including low teacher accountability and poor performance. This paper briefly outlines how the education sector can build upon the foundation laid by PROHECO, a community-based education program financed by the World Bank (WB) and other countries’ experiences to foster a more productive educational system driven by demand. By tackling the aforementioned quality-hindering issues through the decentralization of the education system, implementing a community performance management mechanism (performance-based bonuses) and introducing vouchers for lower income students, the Honduran education sector would create a new competitive market-oriented environment for the provision of education leading to increased quality in the delivery of education.