Governance arrangements, power differentials, and sustainability in the Honduran palm oil industry

There seem to be conflicting narratives surrounding issues of governance, livelihoods, and economic development policies pertaining to palm oil production. The implications of pushing economic and trade policies to help the sector grow usually come at the expense of social and environmental impacts. Palm oil production in Honduras illustrates this point, where economic development policies have had unforeseen consequences. Since the early 2000s, the Honduran government has promoted the palm oil sector by changing the regulatory framework in favour of corporate development through land expansion and increased production, arguing for the beneficial development of “green energy” and a green industry around it. The long-term consequences that have resulted have not been environmentally or socially favourable. The power differentials arising from the governance structure of value chains have led to issues of trust among different actors. The results of the research give evidence of a sector that has been heavily promoted through targeted economic development policies and is indeed generating export revenues and economic growth, but at the same time faces challenges arising from social and environmental impacts that threaten the livelihoods of small-scale producers.