The New Agenda of the Honduran government proposes the provision of preschool and primary school education for all Honduran children, including those living in isolated areas and in extreme poverty. The Community-Based Education Program (PROHECO) was launched in February 1999, and by December 2000 some 820 schools serving 39,540 students were in operation. This paper reports on a Rapid Rural Appraisal of PROHECO in 49 communities, as well as the Intercultural Bilingual Program (EIB) in indigenous communities. Under PROHECO, the responsibility for preschool and primary education is shared by the State and the civil society, parent/community associations administering the programs are autonomous, and schooling may be conducted provisionally in any appropriate building. The first part of the report discusses the current status of PROHECO schools, the relationship of PROHECO to community social capital, the educational and cultural relevance of instruction offered by PROHECO schools, the creation of community education associations, teachers shortages and perceived risks of becoming a PROHECO teacher, school buildings, accountability, teacher and parent concerns about the new model, and recommendations. The second part of the report presents an overview of the indigenous peoples of Honduras, their languages, and their political and educational history. EIB accomplishments are reviewed, and the first pilot project merging PROHECO and EIB is described. EIB objectives for 2001-2005 are discussed, as well as the needs for bilingual teachers and culturally appropriate curriculum. (SV)