Dominican Republic and Haiti: Country Studies
by Helen Chapin Metz et al by Helen Chapin Metz et al
Dominican Republic and Haiti: Country Studies would be suspended if Haitian leaders did not make more serious efforts to reach a political solution. Meanwhile, substantial amounts of aid from other foreign donors were withheld for the same reason. Important as it may be for any Haitian leader to renew the flow of external aid, it is far more important for Haiti to be committed to the concept that economic development must be based on trade and investment and institutional reforms. Such measures involve factors that include job creation and the improvement of social services for the disadvantaged, rather than a growing dependence on international assistance. R. Quentin Grafton of the University of Ottawa and Dane Rowlands of Carlton University make the point that Haiti's political instability is "symptomatic of its institutional arrangements where the powers of the state are viewed as a means to personal enrichment." Haiti's institutional structure is such that it has encouraged economic exploitation and intimidation, as well as political repression and stark inequities between the privileged and disadvantaged segments of the population. To reverse these tendencies, a leadership is needed that acknowledges that appropriate institutional reform is essential for Haiti's development. The country's social, economic, and political structure needs to be modified so as to assure the poor their fair share of resources and social services and to ensure the participation of the less advantaged communities in shaping their institutional environment. The role of leadership need not be the government's exclusive domain. A good example of private initiative was a threeday economic conference held in April 1998 in Jacmel. A group of Haitian mayors and some forty Haitian-Americans, including ten businessmen from New York, met to discuss ways of energizing Haiti's development process. They chose to hold their encounter at some distance from the capital to show that private efforts can be mounted without state sponsorship. Bringing together elected officials of small provincial towns, who had been accustomed to obeying directives of the central government, with a group of potential investors and business leaders also made the point that thousands of Haitian emigrants living abroad could be tapped for financial assistance to development projects in rural communities. Haitians living in the United States alone reportedly send home an estimated US$3 million a day. 408
Haiti: The Economy Two World Bank projects provide another example of a different approach to socioeconomic development in Haiti. When the country's gross domestic product fell by about 40 percent during the 1991-94 embargo years, and large numbers ofjobs were lost, the World Bank initiated a two-year Employment Generation Project, which provided short-term jobs for 325,000 of Haiti's poorest. Another social safety-net program geared toward directly assisting the underprivileged and improving social services is known as the Basic Infrastructure Project, which involves the poor in its design and implementation. The project's goal is the rebuilding of critical infrastructure in serious disrepair (roads, sanitation facilities, and flood controls) in provincial towns. The objective is achieved through consultation with local communities and use of local labor in construction, thereby providing opportunities for more sustained employment. Whatever approach the Haitians choose to reform their country's basic institutional structure and to embark on a coherent economic development program, their task is bound to be daunting. Dealing with an economy in ruins, a population in despair, an administrative system in shambles, and a government at a standstill will not be easy and may take years, even with substantial aid from the international donor community. * * * Reliable statistical data on Haitian economics are hard to obtain. Most publications acknowledge that their figures are based largely on estimates. For example, despite the obvious breadth and depth of their research, the International Monetary Fund and the World Bank note that they have little confidence in the statistical data provided on Haiti. Perhaps the best source on Haiti's economy is the Economist Intelligence Unit, which publishes an annual country profile as well as four quarterly country reports on the island nation. The profile typically includes a comprehensive analysis of the country's economic developments, while providing an insightful political backdrop to put them in perspective. The quarterly updates furnish what is tantamount to a running chronicle of economic and political events as they unfold on the Haitian scene. It is also useful to consult publications by major donors such as the World Bank, the Inter-American Development 409
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<strong>Haiti</strong>: The Economy<br />
Two World Bank projects provide another example of a different<br />
approach to socioeconomic development in <strong>Haiti</strong>.<br />
When the country's gross domestic product fell by about 40<br />
percent during the 1991-94 embargo years, <strong>and</strong> large numbers<br />
ofjobs were lost, the World Bank initiated a two-year Employment<br />
Generation Project, which provided short-term jobs for<br />
325,000 of <strong>Haiti</strong>'s poorest. Another social safety-net program<br />
geared toward directly assisting the underprivileged <strong>and</strong><br />
improving social services is known as the Basic Infrastructure<br />
Project, which involves the poor in its design <strong>and</strong> implementation.<br />
The project's goal is the rebuilding of critical infrastructure<br />
in serious disrepair (roads, sanitation facilities, <strong>and</strong> flood<br />
controls) in provincial towns. The objective is achieved<br />
through consultation with local communities <strong>and</strong> use of local<br />
labor in construction, thereby providing opportunities for<br />
more sustained employment.<br />
Whatever approach the <strong>Haiti</strong>ans choose to reform their<br />
country's basic institutional structure <strong>and</strong> to embark on a<br />
coherent economic development program, their task is bound<br />
to be daunting. Dealing with an economy in ruins, a population<br />
in despair, an administrative system in shambles, <strong>and</strong> a<br />
government at a st<strong>and</strong>still will not be easy <strong>and</strong> may take years,<br />
even with substantial aid from the international donor community.<br />
* * *<br />
Reliable statistical data on <strong>Haiti</strong>an economics are hard to<br />
obtain. Most publications acknowledge that their figures are<br />
based largely on estimates. For example, despite the obvious<br />
breadth <strong>and</strong> depth of their research, the International Monetary<br />
Fund <strong>and</strong> the World Bank note that they have little confidence<br />
in the statistical data provided on <strong>Haiti</strong>.<br />
Perhaps the best source on <strong>Haiti</strong>'s economy is the Economist<br />
Intelligence Unit, which publishes an annual country profile as<br />
well as four quarterly country reports on the isl<strong>and</strong> nation. The<br />
profile typically includes a comprehensive analysis of the country's<br />
economic developments, while providing an insightful<br />
political backdrop to put them in perspective. The quarterly<br />
updates furnish what is tantamount to a running chronicle of<br />
economic <strong>and</strong> political events as they unfold on the <strong>Haiti</strong>an<br />
scene. It is also useful to consult publications by major donors<br />
such as the World Bank, the Inter-American Development<br />
409