The Role Of The International Community In Supporting Haiti’s Political And Economic Advancement

Political insecurity, rising violence, and unprecedented levels continue to impede Haiti’s economic and social development, exacerbating fragility. Haiti remains the poorest country in Latin America and the Caribbean (LAC) and one of the world’s poorest countries. Haiti’s GDP per capita in 2021 was $1,420, the lowest in the LAC region, which averaged $15,092. In 2020, Haiti ranked 163 out of 191 countries on the United Nations Human Development Index.

Amid the lingering political and institutional crisis and high vulnerability to natural hazards, coupled with violent gangs vying to gain control over business districts, the economy contracted for three consecutive years by 1.7% in 2019, 3.3% in 2020, and 1.8%

in 2021.

In such a context, past gains in poverty reduction have been undone. While more recent data to measure poverty are unavailable, the lack of improvement in critical dimensions needed to reduce poverty negatively affected household incomes across the country. 

For example, In December 2021, 65 percent of households saw a decrease in revenue compared to the years preceding the pandemic, indicating that an already high poverty rate has likely increased. In line with these findings, estimates from the Bank’s team show that poverty will likely rise to 87.6 percent ($6.85/day), 58.7 percent ($3.65/day), and 30.32 percent ($2.15/day) in 2021. 

Haiti is also one of the countries in the region with the highest levels of inequality. 

This is primarily because two-thirds of the poor live in rural areas, and adverse agricultural production conditions create a welfare gap between urban and rural areas.

Haiti remains one of the world’s most vulnerable to natural disasters, particularly hurricanes, floods, and earthquakes. These shocks affect more than 96 percent of the population. On August 14, 2021, an earthquake with a magnitude of 7.2 on the Richter scale struck Haiti’s southern region, home to approximately 1.6 million people. The quake’s epicenter was located about 12 kilometers northeast of Saint-Louis-du-Sud, about 125 kilometers west of the capital Port-au-Prince.

The direct human toll of the earthquake resulted in 2,246 deaths, 12,763 injured, and 329 missing in the three departments of the Southern Peninsula. Regarding infrastructure, 54,000 houses were destroyed while 83,770 other buildings were damaged, including schools, health facilities, and public buildings. At the government’s request, the World Bank worked with development partners to produce a post-disaster needs assessment (PDNA) to estimate the damage’s extent and chart a path to recovery. 

The evaluation results of the effects of the August 14, 2021, earthquake indicate a total of more than US$1.6 billion in damage and losses or 11% of GDP. The same region was impacted in 2016 by Hurricane Matthew, which caused losses and damages estimated at 13 percent of the 2015 GDP, and the 2010 earthquake, which killed approximately 250,000 people and decimated 67 percent of the country’s GDP. 

Climate change is expected to increase the frequency, intensity, and impacts of extreme weather events, and Haiti, while making some progress, still needs adequate preparedness and resilience-building mechanisms.

On the human development front, after three years with no laboratory-confirmed cases, Haiti is experiencing a new cholera outbreak, with several confirmed cases in some populated areas of the capital cities. Improvements in human capital have therefore stalled and, in some cases, deteriorated since. Infant and maternal mortality remain at high levels, and coverage of prevention measures is stagnating or declining, especially for the poorest households.

According to the Human Capital Index, a child born today in Haiti will grow up only 45 percent as productive as they could be if they had enjoyed full access to quality education and healthcare. Over one-fifth of children are at risk of cognitive and physical limitations, and only 78 percent of 15-year-olds will survive to age 60.

Haiti has a complex political and economic landscape shaped by a long history of political instability, corruption, and economic inequality. Despite some progress in recent years, the country still faces significant challenges, including poverty, poor governance, and limited access to essential services such as healthcare and education. Despite these challenges, there are also opportunities for growth and development, particularly in agriculture, tourism, and manufacturing. 

To take advantage of these opportunities and address the country’s challenges, it is essential to focus on strengthening governance and reducing corruption, promoting economic growth and development, and ensuring that the benefits of these efforts are widely shared among the population. By doing so, Haiti has the potential to create a brighter future for its citizens and build a more sustainable and prosperous society.

The Potential For Sustainable Growth, Greater Shared Prosperity, And Equal Opportunities For All Haitians

By democratizing the political process, all citizens have a voice in shaping the country’s direction and can hold their elected officials accountable for their actions. This can lead to policies and programs that better meet the population’s needs, promote more significant economic growth, and reduce poverty.

Decentralization can also drive development by giving local communities a more significant say in allocating resources and decision-making. 

This can lead to more targeted and effective development programs and greater local ownership of development initiatives.

Finally, a focus on development can help improve all citizens’ well-being and reduce inequality. By investing in education, health care, and other critical areas, the government can create a more level playing field and provide all Haitians with the tools and opportunities they need to succeed.

These three concepts can help lay the foundation for a more prosperous, equitable, and sustainable future for Haiti and its citizens.

The interplay of democratization, decentralization, and development in Haiti is complex and multifaceted. Haiti is one of the poorest and most unequal countries in the Western Hemisphere, and its political and social challenges are significant. Despite some progress in democratization and decentralization, Haiti faces many challenges, including weak governance, political instability, and limited economic development.

Decentralization efforts have aimed to give more power to local governments, improve governance and increase accountability. 

However, these efforts have been limited by a weak political and administrative infrastructure and the challenges of poverty and inequality. The decentralization process has also been hindered by a need for more resources and the challenges of implementing reforms.

Democratization in Haiti has been a slow and challenging process, marked by political instability, weak institutions, and limited civic engagement. The country has experienced frequent changes in government and several periods of violence, further undermining the democratic process. Despite these challenges, Haiti has held regular elections and has a relatively free press, which has contributed to the country’s democratic development.

Various factors, including political instability, weak governance, and limited economic growth, have hampered development in Haiti. The country’s poverty and inequality levels are among the highest in the region, and its economy has struggled to create good jobs and increase economic opportunities for its citizens. The lack of investment and the slow pace of economic growth has also limited the ability of the country to improve living standards and reduce poverty.

While Haiti has made some progress in democratization and decentralization, the country continues to face significant challenges in its development. The interplay of these factors is complex and requires a sustained effort from the government, civil society, and international partners to achieve lasting and meaningful change.

U.S. Relations With Haiti

Haitians and Americans benefit when Haiti becomes more prosperous, secure, and firmly rooted in democracy. The policy of the United States toward this close neighbor aims to foster the institutions and infrastructure needed to achieve strong democratic foundations and meaningful poverty reduction through sustainable development. 

The United States is the single largest donor of humanitarian aid to Haiti, assisting in meeting the needs of the most vulnerable Haitians through health care, shelter, food, nutrition, water/sanitation, and other relief. Another pillar of U.S.-Haiti bilateral cooperation is assistance for long-term development and institution building. 

Priority areas include support for economic growth and poverty reduction, improved healthcare and food security, respect for human rights, more vital democratic institutions, and strengthening the Haitian National Police (HNP) so Haiti can provide its protection, be an essential partner against transnational crime, and foster long-term stability. To help combat poverty and tackle chronic unemployment, which requires job creation, the United States facilitates bilateral trade with and investment in Haiti. The large Haitian diaspora in the United States is a potentially powerful ally in expanding business opportunities and building on the many links that unite Haitians and Americans.

Haiti has faced significant challenges for decades, including natural disasters, environmental shocks, and multiple political crises. Intensified gang violence and recurring political and civil unrest since July 2018 have severely exacerbated Haiti’s dire economic and humanitarian conditions: unemployment and inflation are high; the national currency is volatile; fuel shortages are recurring and severe; foreign reserves are dangerously low; more than 60 percent of the population lives below the poverty line, and more than four million Haitians face crisis- or emergency-level food insecurity. 

The proportion of people in Haiti facing acute food insecurity has increased significantly, from 1 in 3 people in 2018 to almost 1 in 2 people in 2022, according to the study “Food security in Central America, Panama, Dominican Republic, Mexico, and Haiti,” published by the Inter-American Development Bank. In addition to grappling with the COVID-19 pandemic and an economic recession, President Jovenel Moïse was assassinated on July 7, 2021; weeks later, a 7.2 magnitude earthquake hit southern Haiti on August 14. A nearly two-month-long gang-led blockage of the nation’s largest fuel terminal from late September to early November 2022 led to a nationwide fuel shortage, shutting down hospitals and water treatment facilities while cholera reemerged for the first time since 2019.

While humanitarian assistance will alleviate some urgent needs, it will not, and cannot, address the root causes of the current economic and political paralysis in Haiti.

Political Overview

Haiti’s transition to a functional democracy is essential to the United States. Solid democratic institutions, including regular free and fair elections, can help guarantee Haiti’s democratic traditions and ensure a voice for the Haitian people in their governance. A commitment to democracy, security, and the rule of law ensure that human rights and fundamental freedoms are better protected. The stability and predictability that come with these institutions are essential for Haiti to achieve sustained economic growth and attract needed foreign investment. However, Haiti suffered another setback in its democratic development with the assassination of President Moïse, who had been ruling by decree since Parliament lapsed in January 2020 but was set to leave office in February 2022. Prime Minister Ariel Henry became head of government, but Haiti still lacks fully functioning legislative and judicial branches. The October 2019 local and parliamentary elections did not take place as scheduled. The terms of the final ten senators, who began serving their terms in 2017, will expire on January 9, 2023, leaving no nationally elected officials remaining in Haiti. The twelve-person Supreme Court lost its president to COVID-19 in June 2021, and because of dismissals, retirements, and deaths, only three judges remain.

The worsening of Haiti’s humanitarian, security, and political crises has also led to an uptick in the outward flow of Haitians from Haiti, several of whom have attempted to migrate irregularly to the United States. Haitian migrants frequently depart via dangerous land and sea routes facilitated by illegal migrant smuggling networks. The decision to relocate may result in losing money, possessions, and even life. As the Biden Administration prepares for the end of Title 42, the United States and the Government of Haiti strongly discourage Haitians from undertaking these dangerous journeys, by both land and sea, to the United States. Although DHS extended and redesignated Temporary Protected Status (TPS) for Haitians already residing in the United States as of November 6, 2022, TPS does not apply to individuals without a legal basis to enter or remain in the United States. DHS regularly repatriates Haitians who attempt to enter the United States illegally. The United States remains committed to apprehending and prosecuting the human smugglers who profit by organizing and carrying out illegal sea voyages and land movements. 

In addition to deterring irregular migration and preserving life, the United States works to address the root causes of irregular migration from Haiti by helping to create more economic opportunities for Haitians in their own country.

U.S. Assistance to Haiti

Even before the 2010 earthquake, Haiti was among the least developed nations and faced chronic challenges to meaningful poverty reduction. Since the 2010 earthquake, the United States has provided over $5.6 billion to assist Haiti in life-saving post-disaster relief and longer-term recovery, reconstruction, and development programs. After the 2021 earthquake, the United States again mobilized a whole-of-government effort to provide immediate assistance at the Haitian government’s request. 

Against this backdrop, the country’s reconstruction and development will continue for many years. In addition to chronic cycles of poverty, a worsening political and security crisis has exacerbated persistent humanitarian needs in Haiti. Since fiscal year (F.Y.) 2021, the United States, through USAID, has provided nearly $172 million in life-saving humanitarian assistance in response to persistent needs and more than $106 million in development and health assistance. 

Highlighted U.S. assistance to Haiti includes:

U.S. assistance helped over 40 partner financial institutions to disburse over $100 million in loans to over 50,000 micro, small, and medium enterprises and allowed to participate SME businesses to generate $110 million in sales. In the agricultural sector, U.S. assistance has helped 105,000 farmers increase crop yields through improved techniques and seeds, generating nearly $30 million in farm sales and $15 million in private-sector investments in the agriculture sector.

In the Water Supply and Sanitation sector, U.S. assistance, in conjunction with the National Potable Water and Sanitation Directorate (DINEPA), has increased access to water services to over 300,000 Haitians since 2018. This assistance has included the provision of fuel to DINEPA water treatment and pumping sites impacted by the Varreux fuel terminal blockage by gangs in October 2021, capacity building for local water distributors to maintain international standards, and public education on personal hygiene.

The Haitian National Police is more substantial, and U.S. assistance has helped increase the HNP to roughly 14,000 officers from less than 10,000 in 2010. Thanks to U.S. assistance, more Haitians have access to police services following the construction of six police commissariats. The United States helped the HNP establish a community policing unit to gain public trust and improve community relations. In addition, the role of women within the force has been amplified. This is reflected by the robust recruitment efforts to target more women to make the HNP more gender inclusive.

U.S. assistance has contributed to measured improvements in fundamental health indicators, including child nutrition and mortality, improved access to maternal healthcare, and the containment of the spread of HIV/AIDS. Over the past ten years, infant mortality has remained steady at 59 deaths per 1,000 live births; under-five mortality has dropped from 88 to 81 deaths per 1,000 live births.

U.S. assistance has helped increase access to primary healthcare through 165 hospitals and clinics across the country. Our aid has increased access to and quality of primary healthcare in those clinics, reaching over 4 million of the most vulnerable among Haiti’s population of 11 million.

Health infrastructure in Haiti has been strengthened by U.S. assistance which established the national public health reference laboratory and an early warning surveillance system that screens a subset of all biological specimens from 67 hospitals across the country for high-risk contagions.

U.S. assistance has supported Haiti’s Field Epidemiology Training Program (FETP) for the past ten years, facilitating intensified response training for more than 130 public health leaders and frontline workers. 

These cadres were first responders for the ongoing COVID-19 outbreak in Haiti, including deployments to all ten departments and the high- risk border region with the Dominican Republic.

Under the U.S. President’s Emergency Plan for AIDs Relief (PEPFAR), U.S. assistance has stabilized the HIV prevalence rate in Haiti at about 2 percent since 2008. U.S. assistance offers life-saving antiretroviral treatment to 91 percent (128,000) of people living with HIV (PLHIV). 

It has helped Haiti to adopt innovative drug distribution and dispensing methods and limit unnecessary COVID-19 risk exposure to PLHIV. These methods include multi-month dispensing, community drug distribution, group services such as psycho-social support groups, and mothers’ clubs implemented remotely online or by phone.

The U.S. government contributed funding towards a solar energy program initiated by the Inter-American Development Bank to construct two solar power plants in northern Haiti. These plants aim to provide an increased supply of sustainable and affordable renewable energy in the region. 

These plants will help expand support to energy grids serviced by the existing U.S.-funded 10-megawatt thermal power plant that provides 24/7 electricity to five industrial clients operating 14 factories inside the Caracol Industrial Park and more than 14,000 households and businesses in five neighboring communities.

Under the U.S. Strategy to Prevent Conflict and Promote Stability, the United States will implement a 10-year plan that prioritizes partnering with Haiti and takes a long-term view to address drivers of instability and conflict. 

This includes a targeted approach to foster stability in the most severely affected communities – identified through analysis and field-based consultations – while also gradually addressing the underlying drivers of conflict, instability, and violence and mitigating the impact of future environmental shocks.

The United States provided technical assistance to the Superior Judiciary Council (CSPJ), the institution managing, overseeing, and evaluating judiciary members. The CSPJ has since vetted 44 judges and prosecutors to ascertain their moral and professional integrity to serve in the justice system. Through this system, 25 judges and prosecutors were approved, helping renew the accountability of judicial members and building public trust in the justice sector.

To address a lack of transparency within the court system, the United States supported installing a digitized Case Management Information System (CMIS) to reduce Haiti’s prolonged pretrial detention. This system permits chief judges and chief prosecutors to monitor case processing time, enabling improved transparency and accountability in case recording and processing. 

The system is now operational in 13 jurisdictions, including two new locations. Approximately 5,320 points were entered into the system this year for nearly 46,800 cases. The United States is improving local government actors’ and institutions’ transparency, oversight, and accountability by increasing public involvement at the commune-level investment and development planning process. During FY 2021, USAID’s Community Driven Development activity helped 15 communes create municipal investment plans with local stakeholders by reaching a consensus on the prioritization of projects to be implemented and on long-term strategic planning in the targeted communes.

Bilateral Economic Relations

Since 2011, the Government of Haiti has emphasized encouraging foreign investment and developing private-led, market-based economic growth. The Haitian government promotes the inflow of new capital and technological innovations and has committed to improving the business environment and attracting foreign investors. 

However, recurring fuel shortages and the Haitian government’s unilateral actions to stop payment on and cancel contracts with independent power producers have slowed investment. U.S. companies considering investing in Haiti’s energy sector have expressed concern about the Haitian government’s lack of adherence to its contractual obligations and capacity to provide security.

Haiti’s Center of Investment Facilitation aims to facilitate and promote investment in the local economy by reducing administrative delays, streamlining the creation of enterprises, and facilitating the provision of inducements. Nevertheless, overall costs to start and operate a new business in Haiti remain high, and access to credit and structures for investor protection still need to be increased. The United States and Haiti have a bilateral agreement on investment guarantees that permits the U.S. International Development Finance Corporation to offer programs in Haiti. The United States is Haiti’s largest trading partner. Several U.S. firms maintain operations in Haiti, including commercial banks, airlines, oil and agribusiness companies, and U.S.-owned assembly plants. 

Opportunities for U.S. businesses in Haiti include light manufacturing, in particular, textile and clothing production; the development and trade of raw and processed agricultural products; medical supplies and equipment; building and modernizing Haiti’s infrastructure; developing tourism and allied sectors such as arts and crafts; business process outsourcing; and improving capacity in waste disposal, transportation, energy, telecommunications, and export assembly operations.

The Haitian people, the government, and the international donor community continue to face crushing poverty. Three-quarters of the population subsists on about $2.41 per day, while the poorest subsist on only $1.23 per day. In July 2021, 36% of those working in February 2020 were no longer employed. 

Approximately 86 percent of employed people reported being informally used. Private transfers (remittances) to Haiti total more than $4.7 billion per year, equivalent to about 22 percent of GDP in 2021, with a large portion of these funds used for imported goods consumption and essential household support (e.g., education, health, nutrition).

Significant poverty reduction in Haiti will be dependent on economic activity and foreign investment. To that end, the U.S. promotes necessary reforms in Haiti to make business operations more accessible and predictable and to create the kind of stable environment required by investors.

Trade Preferences for Haiti in the United States

The Caribbean Basin Trade Partnership Act, the successor program to the Caribbean Basin Initiative, provides duty-free export of many Haitian products assembled from U.S. components or materials to both Haitian and American importers and exporters. 

The Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE II) Act of 2008 and the Haiti Economic Lift Program (HELP legislation) of 2010 provide duty-free preferences for certain light manufacturing products made in Haiti, particularly apparel. The Trade Preferences Extension Act of 2015 extended through September 2025 the trade benefits granted to Haiti under the HOPE II and HELP Acts. 

Haitian apparel factories eligible for duty-free entry into the U.S. under HOPE II and HELP must adhere to international core labor standards and Haitian labor law. The HOPE II and HELP Acts were critical in redeveloping Haiti’s apparel industry, which accounts for more than 80% of national export earnings and 10% of GDP (2020).

Membership of Haiti in International Organizations

Haiti and the United States work together to promote core values such as democracy, human rights, and economic development in the region and worldwide. Both countries are members of the United Nations (U.N.), the Organization of American States (OAS), the International Monetary Fund (IMF), the World Bank (W.B.), and the World Trade Organization (WTO) (WTO). To achieve its policy objectives in Haiti, the United States collaborates closely with the Organization of American States (OAS), the United Nations (U.N.), the Caribbean Community (CARICOM), and individual countries.

HAITI: TOWARD AN ENTREPRENEURIAL STATE

We are very much aware that the more than 2 billion smartphones used worldwide today function not because of Steve Jobs’s singular genius, not even because of the private sector, but because of research and development funded by an entrepreneurial state. Haiti needs the research capacity to compete in this circle of technological advances. However, technological innovation has raised living standards and made populations healthier, safer, and smarter worldwide.

Three (3) barriers hinder sustainable economic development in Haiti.

  1. Inferior Labor Market

The inferior labor market is primarily an effect of a failing education system afflicting many parts of the economy. Poor education is evident in Haiti from primary school through higher education. A large percentage of Haiti needs to be educated and literate, especially in the rural parts of the country.

  1. Lack of Access to Capital

In addition to an inferior labor market, Haitians need help finding investment capital, limiting their entrepreneurial opportunities. 

Access to capital is the most severe constraint for Haitian entrepreneurs. Many Haitians have legitimate business ideas and produce sound business plans, but there are no opportunities to access financing. Minimal financing is available because investors, by nature, want to make investments that offer an excellent chance to earn a return with minimal risk. However, Haiti presents a higher risk due to its history of political insecurity and unrest and its unpredictable and complex business environment.

  1. Lack of trust

Businesses in Haiti routinely look to cut corners for their benefit, especially when they know they can get away with it. In the absence of more vital institutions that could enforce the rule of law, we need to create an environment conducive to positive social impact through value investments with financial gains.

We need to address these three barriers to sustainable development using the principles of a circular economy primarily through technical innovations, open leadership, and the popularization of credit.

  1. Each territorial division, communal Section, commune, or Department shall have the essential educational establishments adapted to their development needs without prejudicing the priorities assigned to agricultural, vocational, cooperative, and technical training, which must be widely disseminated.
  2. Crowdfunding takes the financing of small businesses out of the hands of uncaring banks and vulture capitalists. It puts it into the hands of real people like Madam Sara, who can passionately support companies as donors or investors. Therefore, the GoH could propose the adoption of Crowdfunding platforms to support access to capital for female smallholder farmers and other small producers in Haiti.
  3. The GoH should create a center of Research, Innovation, and Commercialization for Human Entrepreneurship (RICHE). The RICHE center will engage the most capable among us in collaboration with our most zealous entrepreneurs to bring about a much larger middle class.
  1. Following article 248 of the Constitution, the GoH should create THE NATIONAL INSTITUTE OF AGRARIAN REFORM to organize the revision of land and real property structures and to implement an agrarian reform to benefit Haiti’s economic development, help people in the rural areas with economic growth. This Institute shall create a Project e-cadaster in concert with the DGI. It should develop an agricultural policy with advanced technological support geared toward small farms while also building the infrastructure to protect and manage the land.

Extending Private Mortgage Access In Haiti

Like many emerging economies, Haiti has much of its capital locked in homes of low- and middle-income (LMI) households. The IMF estimated in 2002 that 95% of residents in developing countries have no access to mortgage capital. In September 2013, the Haitian Central Bank reported that Haitian banks had $111M in residential mortgage loans outstanding. They assumed those mortgages are at the high end of the market, where current listings in Port-au-Prince range between $150,000 and $600,000, and the number of residential mortgage holders would be well under 1000. 

If the “average” home value were $300,000 and the mortgage was at a 50% loan-to-value ratio, there would be only 740 mortgage holders in the country.

In the 2003 Census, 74% of households claimed ownership of their own homes. Assuming Haiti at a population of 10,500,000 people and an average household size of 7 people, 74% of the homes would be a potential market or 1,110,000 homes. 

If 20% of these homes took out a Home Equity Line of Credit of $30,000, the available capital to infuse into Haiti’s economy would be approximately $6,600,000,000.

Benefits Of Developing A Broad Residential HOME EQUITY LOAN Market Contribution To Economic Growth

Peruvian economist, Hernando de Soto’s work shows that even those who live in slums possess far more capital than anyone realizes. Implementing his vision in Peru showed an annual GDP growth averaging over 6% p.a. from 2005-2014, despite significant drops in 2009 and 2014. 

According to the Inter-American Development Bank (IADB), the percentage of Peruvians considered “middle class” doubled to 70% of the population between 2005 and 2011. He and his colleagues calculate the amount of “dead capital” in untitled assets held by the world’s poor as “at least $9.3 trillion “a sum that dwarfs the amount of foreign aid given to the developing world since 1945.

Key elements of the housing component of this growth included:

  • Home-improvement retailers focus on the large portion of the population that builds their own homes.
  • Store-based credit cards and financing programs permit the building process to accelerate. 
  • Mortgage-specialist private companies are underwritten or guaranteed by government funds.
  • Long-term macroeconomic and political stability encourage families to take a long- term view of their future.
  1. Monetary benefits

The current inflation plaguing Haitians has many sources, and the shortage of hard currency is one of the critical factors.

Home Equity Loans would be funded by investors who bring such hard currency with an attendant decrease in the Gourde/Dollar exchange rate.

The cash infusion would create a significant increase in circulation in the country, with all the benefits it could bring to both production and consumption of goods and services, increasing the disposable income of the middle class.

  1. Fiscal benefits

Tax revenues would increase from the banking transactions in addition to all the second- and third-order transactions. A 2005 OECD analysis, Housing Finance Markets in Transition Economies, made the following critical observations about how to establish a well-functioning market/customer-based mortgage lending system Establish sophisticated risk management techniques of mortgage lending for low- and middle- income.

  1. Households

Develop mortgage products to stimulate mortgage issuance. Consider critical requirements of mortgage design for low- and middle-income households (e.g., plain and

cost-efficient instruments for borrowers, low-risk agents for lenders, and effective mortgage insurance schemes).

As effective risk controllers, make the best of secondary market funding arrangements (mortgage-covered bonds/MBS).

Attract institutional investors such as pension funds and insurance companies to the secondary mortgage market, which will mainly contribute to growing mortgage markets, improving liquidity, and developing the mortgage market infrastructure.

  1. Resolve land ownership disputes

Clean title to the land in Haiti that homes are built on is often problematic but can be resolved with technology like e-cadaster. A means for resolving this problem is essential. The resolution also opens the possibility of mortgaging land further to increase economic growth from increased capital in circulation.

We need a government at the service of its people. A friendly government. An open government. A transparent, functional, agile, and entrepreneurial government. We need a nation in which the inhabitants of the Communal Sections have the right of preemption for the exploitation of the State’s land in the private domain located in their locality, as stated in article 39 of the Constitution.

CONCLUSION

Haiti, the Western Hemisphere’s poorest nation, has faced numerous challenges and difficulties, ranging from political instability, corruption, natural disasters, and economic turmoil. The situation in Haiti continues to be complex, with poverty and inequality still affecting a significant portion of its population. Here are some of the current issues in Haiti and a proposed solution for each:

  • Political instability: Haiti has faced a long history of political turmoil, including coups, rebellions, and contested elections. To address this issue, it is essential to support the strengthening of democratic institutions, such as a transparent electoral system and an independent judiciary. Additionally, the international community can play a role by promoting and supporting the peaceful transfer of power.
  • Corruption: Corruption has significantly hindered the country’s development, hindered economic growth and exacerbated poverty. To tackle corruption, it is essential to improve governance and accountability mechanisms, as well as increase transparency in the use of public funds. The international community can assist by providing technical and financial support for anti-corruption initiatives.
  • Natural disasters: Haiti is frequently struck by natural disasters, including hurricanes and earthquakes, which can significantly damage infrastructure and cause loss of life. Investing in disaster preparedness and mitigation measures, such as building codes, early warning systems, and evacuation plans, is essential to address this issue. The international community can play a role by providing financial and technical support for disaster relief efforts.
  • Economic hardship: Despite efforts to improve its economy, Haiti remains one of the poorest countries in the world, with a significant portion of its population living in poverty. To address this issue, it is vital to promote economic growth and job creation through initiatives such as investment in education and infrastructure.

The international community can assist by providing financial and technical support for economic development programs.

The situation in Haiti requires a multifaceted approach that addresses the root causes of poverty and instability, as well as a strong commitment from the government, the private sector, and the international community.

Economic difficulties and political instability characterized the situation in Haiti in 1987. The country faced several challenges at the time, including high poverty levels, unemployment, income inequality, a lack of basic infrastructure, and limited access to essential services such as healthcare, education, and clean water. Additionally, Haiti’s political climate was marked by frequent changes in government and ongoing tensions between different political factions, which contributed to further instability and hindered progress.

UNCTAD’s proposed solution for Haiti’s reconstruction and economic development focuses on the importance of increasing and improving the capacity of the State while also respecting the country’s ownership of the process. The organization argues that recovery must be a shared responsibility between Haiti and its development partners. 

The new approach to international cooperation targets investment in productive capacity, infrastructure, market access, and agricultural productivity.

This integrated approach would generate employment, reduce poverty, and support sustainable economic growth. It would focus on macroeconomic, industrial, and trade policies that prioritize domestic resource mobilization and encourage the development of the private sector. This would create a supportive environment for entrepreneurship, innovation, and job creation, ultimately leading to greater prosperity and a better quality of life for the people of Haiti.

In conclusion, the situation in Haiti in 1987 was challenging. Still, with the right policies and approaches, the country has the potential to achieve sustainable economic growth and improved living standards for its citizens. The proposed solution from UNCTAD highlights the importance of an integrated approach that prioritizes the development of

the country’s domestic capacities and resources and recognizes the role of Haiti and its development partners in driving recovery and growth.

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