Unpacking the Zones for Employment and Economic Development in Honduras

Special Economic Zones (SEZs) encompass a diverse universe of legal regimes, regulatory frameworks, and plots of land unified in their purpose of catalyzing economic growth and improving livelihoods. In Honduras, the Zones for Employment and Economic Development (Zonas de Empleo y Desarollo Económico in Spanish, or ZEDEs) are one of the most ambitious models for SEZ independence. The ZEDEs have been successful in attracting investment and hold promise for generating economic growth. However, the Castro administration in Honduras has voiced strong opposition to the zones, claiming they violate Honduran sovereignty. CSIS Americas Program Senior Fellow Ryan C. Berg outlines the structure and controversies surrounding the ZEDEs, and charts a path forward for both the zone operators and Honduran government to collaborate on creating jobs and generating economic growth.



This project was made possible with support from NeWay Capital LLC.

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