Why is poverty in Honduras worse than the USA?

As I have lived in Honduras for a year now, I find that I can now talk about development and poverty in Central America as an experienced analyst. I have studied development from books, talked with experts, yet very few have actually been immersed by their lives to realize some of the keys to breaking out of poverty and inefficient lives. Now, I am neither anyone exceptional, nor is the empirically based, yet my interactions between myself and the community leaves me with some hypothesizes for why poverty is prevalent and will remain regardless of aid. I will first discuss the problems at the community level with inhibitions to innovation, culturally, via local monopolies and the prevalence of the prisoner’s dilemma.

Problems of the community

First, it seems like everyone is interested in working hard and continuously, instead of efficiently or with learned skills. It seems like stopping to think or analyze means of improving processes is a sacrilege. I do this with great amusement, so I enjoy hearing the criticism to understand how they think. At first they claim that I am lazy, a bad worker, or just a bad person, which only lasted until I acted like them, carrying heavy loads, singing, joking and carrying on without a care at finishing the work, nor a care of how things work. This inability to recognize or observe ones own predicament is key to seeing innovation being against the grain here.

Any innovator, as in history is isolated & perceived as invaluable, when in actuality they exponentially improve society. Basically, the elders tend to peer pressure others into following the standard ways, while the kids notice initiative and will question their elders, if my project goes well. One hypothesis is that poverty is in the lack of seeing the possibilities of change ranging from the use of technology, improved techniques of manual labor, just considering time valuable , or just being too lazy for hard labor and creating something to do it for you. The best businesses often do not have the best product or quality, rather the most efficient means of producing, selling, and operating. Unfortunately, I would say a country & society works on a similar basis. Therefore, poverty is present in a society that is inefficient and opposed to innovation as a culture, such that innovators are ostracized and marginalized as unworthy, just as most geniuses and historically essential innovators unfortunately have been.

The second large problem for innovators is, theft. Many great things have been made, yet if one were to invest in a cool new means to maintain quality coffee; someone would steal it, literally, not copying the contraption. If I leave anything outside or try to fiddle to make something, the parts or object will be stolen within an hour. Naturally, the prisoner’s dilemma functions well in poverty, as trash cans, plastic bags, anything the poor see a use for, will be stolen, regardless of the societal efficiency. In the end the poor are just stealing to survive, which leaves society even poorer, as the innovators is left with a disincentive to create or invest in an innovation.

As the innovator is stuck without a means to enjoy his products (being always stolen), the rich enjoy the ability to not be challenged by the innovator’s ability to make himself more powerful through real benefits to society (read about the industrial revolution). Basically, the wealthy have a monopoly on power, a monopoly on business (most capital invested in businesses, huge moot, barrier to entry), a monopoly of force (only standing security force) and a means of sabotaging any innovation (political capital or politicians in pocket), as that in itself would be threatening. Thus, it is not that the innovator is not culturally blocked, insecure in his ability to maintain his creation, yet businesses already in place would be threatened and attempt to crush any innovation that would make their business or product worthless. You can see this with self sustaining agriculture facing huge attacks from a dominant position by big fertilizer and GMO firms local reseller. Basically, the R&D field is hard to support in an impoverished society that favors conserving their old status quo. The status quo is well off, while the innovator tends to be slightly well off, which leaves this to be a David a Goliath or a similar mismatch. No matter how much money you throw at development, the basis of it must address changing status quo, favoring innovators directly through investment, not political elite, and culturally educating the need for progress amongst children, who are still forming their culture.

Problems of the Family


The understanding of community is in great deficit in poverty, as the family is the paramount identity, followed by the party. The family does not mean the core family, rather the extended family of some 100 people. This leaves each family in a basic competition, as a social group, against other families, such that no community whole develops. Instead of a joy improving the community, the families compete in a very conniving manner, such that it is more important to be better than Jones’s, regardless of the pain & damage caused to the community, than providing for each other during hard times, so that everyone can maintain a basic level of welfare. The wealthiest of the family provides a welfare system, such that the poorest work for the wealthier, which allows for better work relations and less danger of theft. Basically, if you run any business without family employees, they will steal, cheat and pilfer the cash box, until you go broke. This has led to a kidnapping, repeated murders, many families hating each other, bankers not working with certain families, teachers being given poor working hours or none, and NGOs staff and other employment opportunities going by family, then party and finally qualifications. It shocks me to realize jobs come most often from a cousin or party affiliate than by business connections, common interests, education, and experience. Nepotism, a division of hate between parties, and basic scratching of backs is more important than capability, knowledge or experience.

While religion is a major part of the community, largely Christian ideals of love they neighbor as yourself, do not kill, steal, covet, be greedy, and lie are blatantly broken with increasing cultural and communal support. Ever man and woman covets the other person’s female, such that the average is to have 3 affairs a year with that being on both sides. This leads to the saying of having a mother and father or being spoiled, as a means to describe kids with opportunities for success. Killing and stealing are very common, such that people talk about it with the same interest as the weather, albeit a bit more, if they knew the person being stolen from or dying. A neighbor is not seen as much of an equal to the self, rather a competitor. The family is treasured, yet the family itself is in shambles largely due to jealousy of wanting something else or more.

This leads to the real issue behind all these problems jealousy. This runs deep, such that every man and woman has the urge to want someone else’s woman, man, job, money, life, and just about anything else that can be stolen, killed, or taken. This poverty of self sufficiency is so obvious that no one really is happy without having someone else be jealous of them. It is rare that someone with wealth is recognized, as being a shrewd businessman, making a smart decision, or staying with his wife and supporting his kids. Instead he is a crook, a thief, a bad person. This rejects the idea that one is responsible for ones state in life, which follows the initiator model of not being able to change the situation. So anyone who can succeed, must have lied, cheated, stolen, murdered and or was corrupt to get there. Basically, the community picture has a society set to not gain prosperity through continually ostracizing anyone able to, so that the status quo remains with mostly impoverished and a tiny few wealthy.

How does this picture compare to the US with 1% holding most of the wealth?

What do you think are a means to donate to improve innovation, reduce cultural bias to innovations, dislodge the elite’s poverty grip or just stop the prisoner’s dilemma or theft?

How does this compare with a limited state? Let’s look at the problems of the state next.