Economic Implications of the Governance as a Service (GaaS) Model in Honduras’s Zones for Employment and Economic Development (ZEDEs): A Literature Review with Emphasis on Agricultural Development

Abstract

The economic implications of Honduras's Zones for Employment and Economic Development (ZEDEs), operating under the Governance as a Service (GaaS) model, are examined through a qualitative synthesis of existing literature. The review addresses how granting autonomy to private companies in ZEDEs influences poverty reduction, economic opportunity, and economic freedom compared to traditional governance models. Findings indicate that ZEDEs, supported by the 2013 ZEDE Law, have the potential to attract foreign direct investment and drive economic growth, as illustrated by case studies like Agroindustrias Alpha S.A. The model also shows promise for reducing poverty through formal job creation. A comparative analysis with global models highlights both strengths and contextual challenges. However, the success of ZEDEs hinges on addressing sovereignty concerns, equity risks, and sustainability issues, alongside securing substantial capital investment. The review concludes that ZEDEs could transform Honduras's economy but require robust governance and inclusive policies. Recommendations include targeted actions for the state, private sector, and academia to optimize ZEDEs’ impact.