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Food Consumption Patterns Part 2

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83<br />

increased imports following the imposition of an aid embargo, and by organized resistance from<br />

importers who were being compelled to pay taxes.<br />

Figure 41: Reported Oil Imports and Time Line for Changing Governments<br />

300,000<br />

150,000<br />

0<br />

2001<br />

Aid<br />

embargo<br />

begins<br />

2004<br />

Aristide<br />

falls<br />

2005 - 2006<br />

Interim<br />

government,<br />

under UN<br />

2007 - 2010<br />

Preval government,<br />

under continued UN presence<br />

Source AuthorSource: DGI<br />

In summary, important points that can be drawn from what we know about the importers and<br />

distributors are that,<br />

<br />

<br />

<br />

At least some and perhaps most of the highest tier importers pay little to no taxes (as<br />

suggested by the data and according to informants interviewed during the course of the<br />

present research), so it is almost impossible to compete with them ( i.e. their profit margins<br />

are less than the taxes that a legitimate importer would pay).<br />

Corruption at the customs houses means that even if they did pay taxes, other importers<br />

face significant and often inscrutable and unpredictable obstacles.<br />

Some elite local processors and packagers may not conform to international standards or<br />

laws and instead use inferior products, mislabel, pirate internationally copyrighted<br />

packaging, and make false claims regarding nutritional content. They also understand local<br />

culture and values meaning they can do all this in such a way as to take maximum<br />

advantage in advertising and managing consumer taste and packaging preferences<br />

Summing up these factors, the owner of one of the largest importing agencies in Haiti explained<br />

to the consultant, in private, that “these guys could not survive in a competitive market.” The point<br />

being that a distributor who tried to conform to international and Haitian laws and standards would<br />

be driven out of business by rivals who evaded taxes and otherwise gamed the system. The primary<br />

conclusion that flows from the situation described here is that any social enterprise hoping to reach<br />

the popular market with RUTFs may arguably have to work within the existing system, and hence<br />

with established distributors.

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