Haiti: Poverty Reduction Strategy Paper; IMF Country Report 08/115 ...

1 The Context
INTRODUCTION
1 Over the past twenty years, Haiti has undergone profound change that has affected all important
aspects of national life, particularly in the political, economic, social, and environmental spheres.
These changes have taken place in a global context affected by the sudden and multifaceted
impact of rapid demographic growth resulting from a sequence of events, in particular: i/ the
failure to manage the effects of the 1980-1982 international economic crisis, ii/ internal political
instability resulting from the collapse of the political regime, iii/ the dramatic process of
liberalization that started in 1987 and, iv/ the 1991-1994 trade embargo imposed by the
international community.
2 As a result of this multidimensional and protracted crisis, Haiti has been rapidly and greatly
surpassed by the majority of small Latin American and Caribbean economies, so much so that
currently, it is the only LDC in the Western Hemisphere. At the same time, a process of
widespread impoverishment has gradually taken hold. This strong and adverse trend is fueled
largely by economic decline that is impacting all economic subsectors that were in a growth
phase during the 1970s, such as the manufacturing, tourism, agro-industry, and agricultural export
industries. The decline has also been reflected in a simultaneous process of decapitalization of
the other branches of the rural economy. Now that political stability has been restored, while the
establishment of a macroeconomic framework and modest but sustained economic growth over
the past four years represent significant strides, they fall short of meeting the legitimate
aspirations of the Haitian people for a better life.
3 The drafting of the Growth and Poverty Reduction Strategy Paper (DSNCRP) reflects the desire
of the Haitian Government to respond appropriately to the aspirations of the Haitian people and to
the major growth and poverty reduction challenges. The DSNCRP is therefore a follow up, first,
to the Interim Cooperation Framework (ICF) prepared with the help of the International
Community in 2004, second, to the strategy targeting the major work areas [Grands Chantiers]
submitted by the Government to the International Conference on Economic and Social
Development in Haiti held in Port-au-Prince on July 25, 2006, and third, to the Interim Poverty
Reduction Growth and Poverty Reduction Strategy Paper of September, 2006. The drafting has
benefited from a long participatory process involving the principal state and non-state actors,
ensuring its ownership by the entire population.
2 The Participatory Process
4 The participatory process was identified on the basis of previous experience with Haiti, lessons
learned, and recommendations made at information/training workshops held during the I-PRSP
drafting process in 2005. It was conducted through a series of meetings, gatherings, seminars,
workshops, and forums held at all levels (sectoral, local, departmental, and national) with the aim
of ensuring the broadest possible participation of the various partners.
5 These partners, particularly the poor themselves, include vulnerable groups; organized civil
society groups: the press, trade unions, cooperative entities, professional associations, chambers
of commerce and industry, human rights organizations, women, young people, etc.; the formal
and informal business sectors; central, deconcentrated, and decentralized state administrations;
autonomous state institutions; universities; NGOs; members of parliament; locally-elected
officials (Mayors and CASEC [Conseil d'administration de section communal], grassroots
organizations and/or associations, aid or multilateral and bilateral cooperation agencies, etc.
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