Honduran Special Economic Zones Legalize Secretive Corporate Rule, Threaten Constitutional Rights

A statement by the Center for International Environmental Law (CIEL) criticizing the Honduran government's Special Employment and Economic Development Zones (ZEDEs) and the Inter-American Development Bank's (IDB) consideration of a $20 million loan to support them. CIEL argues that ZEDEs establish autonomous corporate enclaves that undermine constitutional rights, lack democratic oversight, and threaten marginalized communities, including the Garífuna people.

• The ZEDE law, passed in 2013, creates independent enclaves under corporate rule where managers can establish their own local ordinances and public taxation. These zones are financially and administratively autonomous and feature new courts that operate under different rules than the standard Honduran legal system, effectively legalizing secretive corporate rule with minimal public oversight.
• ZEDEs threaten fundamental constitutional rights and democratic participation. While residents can vote in national elections, they have no guaranteed role in electing local representatives or creating public policies. There is uncertainty regarding the application of rights such as Habeas Corpus, freedom of expression, and protections against forced labor within these zones.
• The implementation of ZEDEs risks displacing marginalized populations and violating the rights of indigenous communities. The law allows for land expropriation without precautionary measures to halt the process. Specifically, Garífuna indigenous communities have reported a lack of free, prior, and informed consent (FPIC) regarding proposed projects, leading the Black Fraternal Organization of Honduras (OFRANEH) to describe ZEDEs as a "severe threat to the survival of the Garífuna people."
• The Inter-American Development Bank (IDB) is considering a $20 million loan to the Honduran government to implement the ZEDE law. CIEL asserts that this support would contradict the IDB's own policies regarding indigenous peoples, involuntary resettlement, and access to information.
• The ZEDE framework creates security risks due to the lack of accountability for the five unelected individuals overseeing implementation. Given the links between the Honduran oligarchy, drug cartels, and organized crime, there is a risk that criminal structures could control ZEDEs and use the legal system to silence opposition to corporate abuses.

APA

Alford-Jones, K. (2017). Honduran Special Economic Zones Legalize Secretive Corporate Rule, Threaten Constitutional Rights. Center for International Environmental Law. https://www.ciel.org/honduran-special-economic-zones-legalize-secretive-corporate-rule-threaten-constitutional-rights/

Chicago

Alford-Jones, Kelsey. Honduran Special Economic Zones Legalize Secretive Corporate Rule, Threaten Constitutional Rights. Center for International Environmental Law, 2017. https://www.ciel.org/honduran-special-economic-zones-legalize-secretive-corporate-rule-threaten-constitutional-rights/.

Wikipedia

{{cite press release |last1=Alford-Jones |first1=Kelsey |title=Honduran Special Economic Zones Legalize Secretive Corporate Rule, Threaten Constitutional Rights |publisher=Center for International Environmental Law |date=1 December 2017 |url=https://www.ciel.org/honduran-special-economic-zones-legalize-secretive-corporate-rule-threaten-constitutional-rights/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{alfordjones2017honduran, author = {Alford-Jones, Kelsey}, title = {{Honduran Special Economic Zones Legalize Secretive Corporate Rule, Threaten Constitutional Rights}}, publisher = {Center for International Environmental Law}, year = {2017}, month = dec, url = {https://www.ciel.org/honduran-special-economic-zones-legalize-secretive-corporate-rule-threaten-constitutional-rights/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }