Fri, 18:11 18 Sep 2009 GMT17

 
Haiti: A beacon of hope among the bottom billion?
17 Mar 2009 13:50:00 GMT
Written by: Emma Batha
U.N. Secretary-General Ban Ki-moon (R) and former U.S. President Bill Clinton (2nd R) shake hands with workers during a visit to a factory in Port-au-Prince March 10, 2009. <br> REUTERS/Eduardo Munoz
U.N. Secretary-General Ban Ki-moon (R) and former U.S. President Bill Clinton (2nd R) shake hands with workers during a visit to a factory in Port-au-Prince March 10, 2009.
REUTERS/Eduardo Munoz

Haiti is often seen as something of a basket case. Prone to coups, riven by crime and battered by hurricanes, it's the poorest country in the Western Hemisphere. But could it be about to turn a corner?

Oxford University economics professor Paul Collier believes so. And what's more, he says Haiti could set an example for developing other fragile states.

Collier isn't the only one pushing Haiti's cause. He accompanied U.N. Secretary-General Ban Ki-moon and former U.S. President Bill Clinton there last week to promote an anti-poverty action plan.

The plan focuses on job creation, food security, reforestation of the almost treeless country and provision of basic services such as healthcare, according to U.N. officials.

Ban says there's growing optimism Haiti can break through, and hopes an international donor conference next month will provide a fresh start.

Security, trade and infrastructure are the three things that will help get the country out of the doldrums, according to Collier. And the hardest part - security - has already been done thanks to 9,000 U.N. peacekeepers.

Trade is also on its way with a U.S. trade policy called HOPEII that gives Haiti privileged access to the U.S. market. Collier believes Haiti could now turn itself into a major garment manufacturing centre.

"I would say Haiti is the only member of the bottom billion where we have trade policy that's really going to be effective," the economist told a high-level development conference in London last week just before he left for Haiti.

"Bottom billion" is an epithet coined by Collier referring to the countries that are home to the world's poorest one billion people.

"If Haiti could create 100,000 jobs in garments, that would make a huge difference to the economic security of ordinary Haitian families," Collier said.

Haiti has one of the fastest growing populations on earth but very few jobs for young people.

IN NEED OF INFRASTRUCTURE

A few months ago Collier visited two garment export centres - one in the capital Port-au-Prince, the other in the remote northeast near the border with Dominican Republic.

Contrary to what you might expect, he said the one in the capital wasn't doing too well, while the other was booming. So why the disparity? The answer is infrastructure - or lack of.

In the northeast, the firms were plugging into Dominican Republic for electricity, and exporting their garments through a port just over the border.

"We've done the hard part, we've done the security, we've done the trade policy. All that's needed now is infrastructure," Collier said.

"At the moment the infrastructure that's making Haiti succeed is unfortunately in a place far away from most Haitians. We need processing zones that work near the big population centres like Port-au-Prince."

Collier argues that what Haiti needs is "joined up policy" - roads, electricity, ports and other infrastructure financed by aid which must be co-ordinated with trade and security policies.

"If we do that, Haiti is on the threshold of generating a lot of jobs which would in turn transform the political scene, because governance is going to be a whole lot easier in an environment of growth, rising prosperity and increasing jobs than in an environment of poverty, stagnation and hopelessness," the economist added.

MISPLACED PESSIMISM?

Last year was a difficult one for Haiti. Protests over rocketing food prices led to the government's fall, and back-to-back storms devastated vast swathes of the country.

But Collier believes donors' traditional air of despondency over the country is misplaced. He says Haiti's circumstances are propitious compared to those of other fragile states. And he warns that if the world can't make a success of Haiti, it won't stand much chance elsewhere.

In a report written for the U.N. secretary-general - Haiti: From Natural Catastrophe to Economic Security - Collier lays out some of the reasons that make Haiti a good bet for donors:

  • The country is not part of a troubled region, unlike fragile states in the Great Lakes region of Africa and Central Asia, which face severe neighbourhood problems in addition to their internal challenges
  • Unlike many fragile states, Haiti is not ethnically divided and does not have an armed and organised political group ready to launch rebellion
  • It has a huge and nearby diaspora. Haiti's migrant community in the United States and Canada is proportionally one of the largest in the world, and provides the country with large sums in the form of family remittances
  • Haiti has a massive economic opportunity in the form of HOPEII which guarantees it duty-free, quota-free access to the U.S. market for the next nine years

Do you agree with Collier? How can donors help lift Haiti out of decades of chronic poverty? Tell us what you think.

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2 responses to “Haiti: A beacon of hope among the bottom billion?”

Please note that comments should not be regarded as the views of Reuters.
  1. Emilio E. says:

    I've always been optimistic about Haiti's prospect to turn around its fortunes and these are certainly hopeful signs that the possibilities are there for Haiti, of course, if the criteria outlined within this article can be met in addition to debt forgiveness, it is feasible for Haiti to pull out of its most undesirable situation. Truly, any thinking person knows that the biggest impediment to Haiti's recovery and development is the crashing burden of servicing billions of dollars every month in foreign debts which prevent the country from making critical investments in necessary infrastructure projects that are paramount for the country's development.

    While Mr. Collier's prognosis give us all reasons to be optimistic and hopeful about the country's future, I doubt that any substantive progress can be achieved under the current framework because it is the international community that has created the environment which has kept Haiti in its current state of misery. The international community for years, has been pretending to be helping the country, but yet any aid they give to Haiti with their right hand is immediately taken by the left through debt servicing...It assures that the country makes no significant progress toward development and remains ever so needy and dependent on hands out from them.

    However, if Mr. Collier is truly sincere about helping Haiti pull through its current dilemma and be able to feature the country as a future model to resolving issues in other trouble spots around the globe, he must first and foremost realize that this goal cannot be achieved until Haiti is no longer required to shell out millions of dollars to service its insurmountable debts and instead use these funds to build its infrastructure, as Mr. Collier himself said the country is so desperately need in order to foster development and create decent paying jobs for an ever growing population.

    Debt forgiveness must be a precursor to real development and I would suggest that you sir, work to that end and provide some real tangible help to Haiti.

  2. Thomas B. says:

    The upcoming minimum wage increase to 125 gourds per day will bring Haitian pay scales in the garment factories closer to wages paid in the Dominican Republic, Nicaragua, and Honduras. This will be a good thing after the dust settles. Productivity improvement will have to be the next step. I'm talking real productivity increases, not changing the production goals per day. Many of the factories are in a panic now with the upcoming wage increase. The process will have to be just what has been done in other countries where the wage rates have gone up (better equipment, better methods, more follow up and training, industrial engineering)to offset the wage increases. The advantages of the Hope Law will keep most of the business in Haiti even though assembly prices will have to go up some.

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Emma Batha joined AlertNet in 2005 after four years on the Reuters international editing desk in London. She has previously worked as a reporter on the South China Morning Post in Hong Kong and was Asia Pacific editor at BBC News Online.

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