This chapter provides a broad overview of Honduras’ public sector and assesses its effectiveness across several, intertwined dimensions. First, it lays out how structural challenges have beencompounded by multiple shocks, impeding the country’s sustainable development. Second, it assesses the quality and quantity of public spending against policy objectives and development outcomes. Third, it analyses the capacity of the public administration to deliver inclusive and quality services to all by examining public employment and public sector digitalisation. Finally, it attempts to gauge effects of corruption and limited transparency. The chapter points to several areas for policy reform and provides the context for the topics covered in the following chapters: policy co-ordination, results-based management, monitoring and evaluation, and open government.