Honduras is a lower-middle-income country with 51% of its population living below the national extreme poverty line, while 52% of the population lives in rural areas. Honduras’ economy is largely based on services, and 13% of the total GDP relies on agriculture.
The Constitution of 1982 recognizes property rights and gives the state the authority to administer and manage the use of land. In 1992, the Law for the Modernization and Development of the Agricultural sector established measures for boosting land markets, simplifying expropriation and restricting land invasion. It also allowed farmers to obtain rights for the land they were illegally occupying. The Civil Code of 2005 allows for real property purchase, acquisition, donation, use, rent, mortgage and legal protection of land. Honduras has also signed the ILO Convention 169, recognizing indigenous peoples’ rights to their traditional lands.
Land disputes in Honduras are frequent, particularly due to the violation the land rights of indigenous peoples and ethnic groups. The Property Law of 2004 set the mechanisms for dispute resolution through conciliation, arbitration and court proceedings.