27.05.2014 Views

GEO Haiti 2010

GEO Haiti 2010

GEO Haiti 2010

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>GEO</strong> HAITI • <strong>2010</strong><br />

154<br />

c) Economic-Level Instruments<br />

• Economic Liberalism<br />

According to the prescriptions of the Washington<br />

Consensus, <strong>Haiti</strong> adopted Structural Adjustment<br />

Policies (SAP) in the early 1980’s and reinforced them<br />

during the 1990’s. This decision, recommended by<br />

the Bretton Woods institutions, was characterised<br />

by a programme of trade liberalisation, the<br />

rationalisation of the civil service and privatisation<br />

of government assets 64 .<br />

This policy, considered by some as liberal 65 and<br />

by others as neoliberal 66 , was viewed, by the most<br />

optimistic, as necessary to the stabilisation of the<br />

<strong>Haiti</strong>an economy. Unfortunately, it did not achieve<br />

this objective. Worse yet, in some instances, it has<br />

pushed the <strong>Haiti</strong>an economy into a maelstrom<br />

from which it is not easy to emerge.<br />

In fact, it championed a trade liberalisation and<br />

the implementation of reduced custom duties<br />

which only contributed to the incapacitation of<br />

the <strong>Haiti</strong>an economy. As such, it seems that “the<br />

<strong>Haiti</strong>an commercial regime which has been shown<br />

to be one of the most open of the LDC exchange<br />

regimes”, 67 was to the detriment of the country’s<br />

economy.<br />

This decision also contributed to the erosion of<br />

the foundations of the agricultural production<br />

in particular, and according to FAO 68 “in such<br />

an open-trade system, <strong>Haiti</strong> is extremely<br />

uncompetitive. Its weak productivity contributes<br />

to raise costs or to lower output in the agricultural<br />

sector, thereby reducing <strong>Haiti</strong>’s opportunities to<br />

enter international markets”.<br />

For this reason, the <strong>Haiti</strong>an farmer, faced with<br />

unfair competition from his foreign counterparts<br />

who benefit from subsidies, turns to other crops<br />

or gives up farming entirely. In many cases, this<br />

“liberalisation forces many rural people to migrate<br />

to the cities or elsewhere 69 » .<br />

• Conclusion<br />

Just as the Interim Cooperation Framework<br />

(ICF), never enforced but however renewed until<br />

2006, the DSNCRP was to be valid for two years,<br />

one of which had already been spent awaiting<br />

its implementation, the reason why some imply<br />

that the DSNCRP remains just another document.<br />

Meanwhile and despite efforts, all were conscious<br />

of the country’s deteriorating economic and<br />

environmental conditions, and some critics were<br />

arguing that the State has failed, nevertheless<br />

international assistance, or as some would even<br />

call it, foreign occupation.<br />

In such a context, the immediate solution has<br />

seemed to be, until now, extensive projects in need<br />

of workers. In 2009, an increase in the minimum<br />

wage was discussed in the <strong>Haiti</strong>an Parliament, the<br />

global economic crisis seemed to have stabilised,<br />

the price of oil had fallen, and more than 250<br />

million US dollars had been invested in <strong>Haiti</strong> since<br />

hurricanes devastated the country in 2008.<br />

However, the next hurricane season was fast<br />

approaching… what then would be the possible<br />

scenarios?<br />

2. Scenarios for <strong>Haiti</strong><br />

The situation of the <strong>Haiti</strong>an environment, as<br />

presented, seems bleak, the result of a high<br />

population growth rate and poor management of<br />

natural resources. This situation is directly related<br />

to <strong>Haiti</strong>’s overall vulnerability to natural disasters.<br />

The lack of coordination by those institutions<br />

intervening in the sector does not help to<br />

counteract this dismal state of affairs. Along these<br />

lines, scenarios were developed as means to help<br />

64<br />

UNDP. 2002. Human Development Report<br />

65<br />

UNDP. 2003. The Economic and Social Situation of <strong>Haiti</strong> in 2002<br />

66<br />

PAPDA.1997. Structural Adjustment Programme in <strong>Haiti</strong>: Responses and Alternatives<br />

67<br />

GOVERNMENT OF HAITI. 2003. Examining Trade Policies in <strong>Haiti</strong>. Government Report<br />

68<br />

FAO. 2001. The State of Food and Agriculture<br />

69<br />

REPUBLIC OF HAITI/UNITED NATIONS SYSTEM. 2003. <strong>Haiti</strong>: Integrated Emergency Response Programme Targeting Vulnerable Groups and Communities<br />

in <strong>Haiti</strong>.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!