GEO Haiti 2010
GEO Haiti 2010
GEO Haiti 2010
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<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>.