Think about Haiti. What comes to mind? Maybe you picture a history marked by struggle and resilience.
And perhaps you’re not quite sure why Haiti is so poor. You’re not alone.
We will start to make better sense of its complex narrative and understand its journey toward a more prosperous future. So let’s examine Haiti’s path.
What is economic development?
It’s not just about having more money as a country. Economic development refers to the process by which a nation, region, or community improves the economic and social well-being of its people. It typically involves sustained efforts to raise the standard of living, reduce poverty, and increase the availability of jobs, income, and services like healthcare and education.
Key aspects of economic development include:
Economic growth: Increasing the value of goods and services produced (GDP growth).
Infrastructure improvement: Better transportation, communication, energy, and water systems.
Human capital development: Education, healthcare, and workforce training.
Institutional change: Building effective governance, stable financial systems, and the rule of law.
Equity and inclusion: Ensuring that the benefits of growth reach different segments of society.
What is Haiti’s economy based on?
Haiti’s economy depends heavily on agriculture, with a large portion of the population involved in small-scale farming. It also has sugar refining, flour milling, and cement and textile manufacturing industries, but these sectors have faced huge challenges due to political instability, lack of investment, and the impact of frequent natural disasters.
The economy gets crucial financial support from international aid and remittances from Haitians living abroad. In fact, the United Nations allocated more than $13 billion in international aid to Haiti between 2010 and 2020. Furthermore, remittances totaled 4.3 billion in 2023.
Where is Haiti located?
Let’s look at some basic geography. Haiti is located in the Caribbean Sea, southeast of the United States, and to the east of Cuba. More specifically it occupies the western part of the island of Hispaniola, sharing a border with the Dominican Republic.
Haiti’s location makes it vulnerable to natural disasters, especially hurricanes and earthquakes which continue to hinder Haiti’s development.
What hindered Haiti’s economic development after the revolution?
Haiti’s path after its revolution was filled with difficulties. Securing independence from France in 1804 was a huge achievement, but the country then faced international isolation and economic hardship. France demanded Haiti pay a large indemnity for its freedom, a debt that crippled the country for decades. This indemnity is estimated to be worth $21 billion in today’s dollars.
Political instability, internal conflicts, and a lack of resources further slowed growth and worsened things and contributed to economic, political, and social human rights violations.
Has Haiti recovered since the 2010 earthquake?
While international aid poured in after the January 12, 2010 earthquake, recovery has been slow and billions of dollars in aid are still unaccounted for. Recovery required many steps and international assistance due to houses and key buildings being fully gone such as nearly every government facility needing assistance.
Because business operations were greatly reduced, trade, industry and the loss of jobs has continued to negatively impact all negative activities since 2010.
Is Haiti a Developing Country?
Yes, Haiti is considered a developing country. The Haitian educational system is ranked 177th out of 186 globally when it comes to national spending on education.
The United Nations & the World Bank use various indicators to classify countries based on their level of development. Haiti consistently ranks low in key areas. These indicators include income per capita, health care, education, and standard of living.
Haiti has struggled with development throughout its recent history. Haiti’s classification as a developing country is rooted in its persistent socioeconomic challenges. The most difficult of these 5 challenges is establishing economic development and job creation because of all the damage it has been through.
How developed is Haiti?
Let’s look at some key statistics to understand how developed Haiti is. More than half the Haitian population lives below the poverty line. They face limited access basic services, relying on farming to feed their families. While more than $13 billion in international aid flowed into Haiti between 2010 and 2020, the country still faces significant challenges.
Remittances from Haitians living abroad have become a crucial source of income. They totaled $4.3 billion in 2023, helping families cope with the ongoing crises. Haiti’s economy relies heavily on a few key industries.
Textiles, for example, accounted for 85 percent of all exports in 2021, bringing in $1.15 billion. Tourism, once a bright spot, has declined drastically. Haiti welcomed only 148,000 travelers in 2021, earning about $80 million. This is very low compared to the 1.3 million tourists in 2018 who provided $620 million.
The Burden of Debt and Gang Violence
Despite debt relief efforts after the 2010 earthquake, Haiti’s public debt has increased. This is mainly due to its involvement in PetroCaribe, the Venezuela-led alliance that offers subsidized oil.
By the end of fiscal year 2021, Haiti’s debt reached $5 billion. A protest movement, the assassination of President Jovenel Moïse in 2021, natural disasters, and gang violence have made the economic situation even worse. Gang violence is widespread on the island. These factors greatly increased economic stress and reduced the overall productivity of Haiti.
How does education in Haiti impact development?
As we noted earlier, the nation is 177th out of 186 globally in national spending on education. Haiti has a 57% school enrollment rate, with secondary schools enrolling just 20% of eligible-age students.
With a lack of educational resources and low enrollment, it causes a shortage of professionals in Haiti. This stops the possibility of local economic growth. This causes lack of resources to then result in huge Haitian poverty and low innovation.
Why is Haiti so poor?
Poverty in Haiti isn’t accidental. It is a combination of historical events, and social and economic policies. So, what happened to Haiti, and what were the key turning points in its history?
Debt to France
France, along with other European powers, only recognized Haiti’s independence after it agreed to pay huge reparations. The reparations, for the lands of former slave owners, are estimated to be worth $21 billion today. Consider that amount of money, worth billions now, was taken from Haiti.
Political Instability
Haiti’s early years were marked by political instability. Jean-Jacques Dessalines, the first president, tried to enforce a system that resembled medieval serfdom after the French left.
Corruption has also been a problem, with the Haitian elite using their positions to accumulate wealth. Humanitarian aid has also been sidetracked over and over for personal gain, in Haiti’s 182 years of “freedom”.
Foreign Intervention
Foreign intervention further complicated matters. In 1915, the U.S. Marines occupied Haiti, taking control of revenues and forcing through a new constitution. Even after the occupation ended, the U.S. continued to exert influence through aid packages, sometimes supporting oppressive governments. It’s a difficult set of circumstances to face, particularly when those in leadership are not prioritizing building an actual system of public education for the country.
Why is Haiti poor and the Dominican republic is not?
The distinct colonial histories of Haiti and the Dominican Republic have shaped their paths. The legacy of slavery on the Haitian side of the island differs greatly, from racial background, colonial structure in a drastically different way. While the Dominican Republic, never shared this issue so, they quickly achieved an earlier establishment.
Both Haiti and the Dominican Republic underwent authoritarian rule. However, these situations are extremely different. After Haiti’s independence, political instability hindered its ability to establish stable democratic institutions.
How can Haiti improve its economy?
Haiti can improve its economy by focusing on changing its systems, investing in infrastructure, and developing key industries such as agriculture, tourism, and manufacturing. A critical first step is ensuring political stability and good governance, which are essential to attract both domestic and foreign investment. Transparent institutions and reduced corruption would help restore trust in the government and create a better business climate.
International support, including aid and debt relief, should be tied to measurable progress in governance and development goals. Alongside this, empowering local entrepreneurs and investing in education and vocational training will lay a foundation for long-term, inclusive growth.
The Haitian Development Network addresses economic development in Haiti through sustainable development projects.
Final Thoughts
Debt, instability, and foreign intervention have played a major role in causing Haiti to become poor. Haiti’s development will likely depend on political stability and financial support to promote economic growth.
Security measures and economic planning can help Haiti create sustainable development to finally move towards success.
