This report uses household surveys to provide a diagnostic of poverty, human development, and access to basic infrastructure. The report is based on analytical work conducted by a team comprising staff from the World Bank, Honduras' "Programa de Asignacion Familiar (PRAF), and the International Food Policy Research Institute (IFPRI). The objective of the present report is limited. It provides a diagnostic of the state of poverty and other indicators of well-being instead of suggesting an overall poverty reduction strategy or providing detailed policy reform options. It is intended as an imput for the Government's Poverty Reduction Strategy Paper (PRSP) within the context of the country's participation in the Heavily Indebted Poor Countries (HIPC) Initiative for debt relief. Some key findings are: There is uncertainty as to the change in poverty because different assumptions used for poverty measurement have lead to different conclusions as to the trend in poverty in the 1990s. The probability of being poor increases with the number of babies and children, the fact of being from an indigenous population, and the fact of having a household head unemployed, underemployed, and/or female. Poverty decreases with education and employment in non-agricultural occupations. Geography and programs for rural productivity also reduce poverty. Progress is suggested by the Human Development Index and the fact that the share of all households nationally with no unmet needs increased.