A/HRC/44/43/Add.2 poverty, and approximately 58.9 per cent of people in rural areas live in extreme poverty (living on less than $1.90 a day).1 7. Since the global economic crisis of 2008, Honduras has benefited from a moderate recovery, driven by public investments, exports and higher remittance levels.2 Nonetheless, it faces among highest level of economic inequality in Latin America. 3 8. Another major challenge facing Honduras are the high rates of crime and violence. Although in recent years the number of homicides has declined, it still has one of the highest rates in the world (40.72 murders per 100,000 inhabitants in 2018) (A/HRC/40/3/Add.2, para. 20). 9. The economy of Honduras is mainly based on agriculture and has the third-largest maquiladora (garment) sector in the world. The Government has focused on export-driven growth and foreign direct investment as a way of accelerating economic growth. Economic development and investments have, however, grown without appropriate regulations and incentives for companies to respect human rights, a situation that has led to significant human rights challenges linked to development projects, particularly in the energy and mining sectors. The Working Group witnessed how these projects are often accompanied by social conflicts with long-lasting negative repercussions for local communities, businesses and investors. 10. Corruption and weak public institutions are among the factors exacerbating social conflict affecting all stakeholders – from civil society and indigenous communities to business and the Government – and fuelling lack of trust in the Government. 11. A consensus exists among certain civil society and private sector actors that the key ingredients to promoting trust in State institutions are strengthening the independence of the judiciary, guaranteeing the separation of powers, ensuring participation in and transparency and accountability of decision-making processes, and preventing corruption. These constitute the foundation for responsible business conduct and stable investment that benefits all. 12. In the light of the commitment declared by the Government of Honduras to implement the Guiding Principles, the Working Group focused its attention on supporting the identification of key issues and areas for advancing business respect for human rights. In this respect, it commends the Secretary of Human Rights for making the business and human rights agenda a priority and for acknowledging that ensuring business respect for human rights is a key part of inclusive sustainable development for the people. 13. In their capacity as independent experts exercising a professional and impartial judgment, the members of the Working Group assessed how the Government of Honduras and the business sector discharged their respective duties and responsibilities under the Guiding Principles to prevent, mitigate and remedy human rights abuses and any negative impact linked to business activity. III. Human rights risks and impact in specific sectors A. Right of affected rights-holders to participate 14. The absence of a comprehensive institutional and regulatory framework to ensure participation rights in processes led by public authorities or businesses has contributed to the creation of a range of modalities of participation, in which companies and public entities have wide margins of discretion on how to consult affected communities. Such a situation can contribute to the triggering of social conflict between businesses and communities, between communities and local authorities, and turn community members against each other. From meetings held by the Working Group with different stakeholders, it was clear that the root 1 2 3 4 www.ine.gob.hn/V3/ephpm/. World Bank Group, Honduras Economic DNA, June 2015 : Maintaining Commitment – With a Special Focus on Poverty and Shared Prosperity, 2015. www.worldbank.org/en/country/honduras/overview.