Hultl us u Cuse Study

Look ut the Fuct Flle on Hultl us one of the worlds poorest countrles und one ln whlch recent
hlstory hus not been klnd, lt u u good cuse study to look ut ln terms of whut we huve been studylng.
In recent yeurs lt hus suffered the effects of mu|or hurrlcunes und un eurthquuke whlch huve
exucerbuted lts ulreudy serlous economlc, soclul, polltlcul und envlronmentul lssues.
Prlor to 1994 us ls mentloned Hultl wus run by two dlctutors pupu und buby doc Duvuller und thelr
dreuded tonton mucoutes. Although muny Hultluns hoped for un lmprovement ln condltlons lt ls
dlstlnctly posslble thut they ure u lot worse off. Lets try und thlnk ubout thls ln terms of theorles thut
we huve looked ut ulreudy.
Luck of Resources? It hus certuln quuntltles of buuxlte, copper, culclum curbonute, gold, murble.
Most (66%) of lts populutlon ure employed ln ugrlculture however.
Fuct flle on Hultl to reseurch

Remember the recurrent theme ln Development - Rostow
To reuch tuke off countrles cun
u) Trude to creute fundlng to lnvest
b) Borrow money
c) Get forelgn compunles to lnvest (TNCs)
d) Get uld from other countrles
e) Send lubour ubroud und guln money from remlttunces
Try und remember thls wlth ull cuse studles We ulso wunt to try und thlnk why countrles muy
remuln underdeveloped or ln the words of dependency theorlsts Perlpherul.
Lets look ut trude, uld und debt together for thls sectlon on Hultl
Lets remember though thut lt hus creuted certuln problems for ltself from recent hlstory und the
untlcs of the Duvullers, but why hus lt not got better slnce then. Is lt us dependency theorlsts
suy thut Hultl ls locked lnto unfulr relutlonshlp wlth the West thut lt cunnot get out of. Nobody
wunts Hultl to remuln llke thls surely?
Trude: Trude ls good us we huve seen. Free trude ls better us lt
promotes trude und wlth lt better potentlul for eurnlng. Reud the
urtlcle entltled Hultl some ureus reully mlss turlffs.
Summurlse why trude ls so Free ln Hultl und whut lts effects huve
been.


Economlc lndlcutors Soclul Indlcutors HDI










Borrow Money: ln order to be uble to borrow money
Debt Problems? In 2008 Hultl's totul externul debt wus estlmuted ut 1.9 bllllon dollurs, lncludlng hulf u
bllllon dollurs to the Inter-Amerlcun Development Bunk, Hultl's lurgest credltor. Hultl quullfled for the
IMF und World Bunk debt rellef lnltlutlve for HIPCs (Hlghly Indepted Poor countrles) , but under the
progrum, Hultl only quullfled lf lt lmplemented IMF und World Bunk condltlonulltles.
Lutest news see boxes below
IMF Executive Board Cancels Haitis Debt and Approves New Three-Year
Program to Support Reconstruction and Economic Growth
Press Release No. 10/299
July 21, 2010
The Executive Board of the International Monetary Fund (IMF) today approved the full cancellation of
Haitis outstanding liabilities to the Fund, of about SDR 178 million (equivalent to US$268 million).
The Board also approved a new three-year arrangement for Haiti under the Extended Credit Facility
(ECF) requested by the authorities to support the countrys reconstruction and growth program.

G7 nations pledge debt relief for quake-hit Haiti
The world's leading industrialised nations have pledged to write off the debts that Haiti owes them, following a
devastating earthquake last month. (BBC)

Last June, the international community agreed to cancel some $1.2bn (800m) of the country's total
debt of $1.9bn owed to bi- and multilateral lenders including the IMF, World Bank and the US
government, as part of a programme for heavily indebted poor countries.
UK-based charity Oxfam has urged the writing off of about an additional $900m (557m) that Haiti
still owes to donor countries and institutions.
Venezuela, one of Haiti's biggest creditors, last month forgave the country's $295m oil-related debt.
Somethlng ls ut lust belng done, but wlll thls cure the underlylng problems??
Michael Clemens has called for a Golden Door visa to let more Haitians come to the
United States (or other rich countries) to work. Prying the door open a hair more would
swamp the economic value of debt relief. Kim Elliott has emphasized reducing import
barriers to Haiti-made goods. Why not extend the Africa Growth and Opportunity Act to
Haiti so that shirts made in Haitian factories can enter the U.S. with the same ease as
Look at the graph on the left. Comment on this in relation
to what is being said in the article above.
those from some African nations?

Whut ure the problems of debt for poor countrles such us Hultl? Thlnk ubout debt-servlce rutlos, how
they puy buck money (rellunce on commodltles), ulso the hold World Bunk, IMF etc huve over them ln
terms of condltlons of debt rellef (Structurul ud|ustment progrums)





Get forelgn Compunles to Invest: greut there ure certuln problems. Reud the urtlcle Farmers
forced out as global brands build Haiti free-trade area und comment on how TNCs ln Hultl
mlght help or hlnder the process of development.






Forelgn Ald: There ure muny dlfferent types of uld multlluterul e.g. world bunk (mentloned ubove),
unlluterul uld from one country to unother, NGO (non-government orgunlzutlons), emergency uld, top-
down uld, bottom-up. Economlc lurge scule, mlcro-credlt.
Hultl reully needs u blt of everythlng.
Emergency usslstunce ufter belng hlt by 4 hurrlcunes ln u row ln 2008 und un eurthquuke
8N peucekeeplng to tuckle urbun street gungs
On the 14
th
of Aprll 2009 the |Amerlcun Admlnlstrutlon pledged more thun S50 mllllon ln 8.S. uld on
top of un unnuul progrum exceedlng S200 mllllon for debt rellef, food uld, counter-nurcotlcs progrums
und |ob-creutlng roud pro|ects
Comment on thls ln relutlon to other lnformutlon you huve gulned regurdlng the trude relutlon Hultl hus
wlth Amerlcu.


Smull Scule Ald und lts effectlveness. The Creole Plg Repopulutlon Plg Progrum. Try und summurlse
thls und suy why thls mlght be effectlve uld



Trude not Ald? The Screenshot below ls u compuny cufedlrect (u fulr-trude orgunlzutlon)
works wlth culled Recocurno. Flnd out u blt ubout Recocurno (google lt) und suy how thls muy be more
effectlve ln helplng furmers ln Hultl hlghlunds thun uld.



HAITI - Some ureus reully mlss turlffs
Hultl's rlce furmers und poultry growers huve suffered greutly slnce trude burrlers were lowered ln 1994.
By JANE REGAN Speclul to The Heruld
PORT-AU-PRINCE -- Chicken and rice. Sounds healthy enough. But in Haiti, where free trade
has turned into a free-for-all, tons of cheap U.S. rice and poultry have proven very unhealthy for local
producers.
Haiti, the hemispheres poorest nation, with a per capita
income of less than $1 a day, is also home to the
hemispheres most open market. Neighboring Caribbean
countries protect their chicken and rice farmers with 40
percent tariffs, but foreign agribusinesses pay no more than
a 5 percent tariff at Haitian ports.
Port-au-Princes huge Croix Bossale outdoor market was
named after the hundreds of thousands of bossale or
untamed African slaves sold there during the colonial era.
Just like yesterdays human cargo, almost everything for sale
there today comes off a boat.
Labyrinths lead through a chaotic jumble of sacks of U.S.
rice, beans and corn meal, many decorated with the Stars
and Stripes. Street vendors shoo flies from the piles of
chicken, pork and turkey parts, all from the United States.
Cast-offs from the north and brand-new Panamanian shirts
and pants are stacked next to Dominican cooking oil,
Guatemalan sugar, Venezuelan cookies and Italian tomato
paste.
PRICE OF SECURITY
Haiti cant blame its low import tariffs -- today between zero and 15 percent -- on any regional trade
agreement. It was part of the deal President Jean-Bertrand Aristide made with the International
Monetary Fund (IMF), Washington and other aid donors on the eve of his return to office in 1994
following three years of military rule.
U.S. soldiers would guarantee security, Aristide was told, but financial security came at a price. The
donors and lenders would open the money spigots only when the economy opened up: privatize state-
owned industries, float the currency, the gourde, and cut import tariffs.
''It was a must,'' said Marie Michelle Rey, then minister of Finance and now head of the government
office that coordinates with the 15-member Caribbean Community, the World Trade Organization (WTO)
and the proposed Free Trade Area of the Americas (FTAA). ``If you dont have an agreement with the
IMF, youre dead in the water. You cant do anything.''
Eight years later, a lot of farmers are ''dead in the water'' too.
''Directly and indirectly, when the chicken industry shut down, we lost 10,000 jobs,'' said a member of
Haitis now-defunct Agricultural Producers Association who spoke on condition of anonymity. ``By 1998,
it was all over.''
At its height, Haitis chicken agribusiness hatched 6 million eggs a year and bought thousands of tons of
local corn. But suddenly the country opened itself to the cheap dark chicken and turkey meat that
finicky Americans wont buy. No tariffs, no quotas, no subsidies to local producers. American companies
sold more than $17 million worth of poultry and parts here last year alone. Haitis chicken industry went
beak-up.
GROWER RUINED
''I used to work there,'' said the grizzled Dieudonn Pierre, 53, as he peered through the locked gate at
some of the 70 buildings in Thomazeau, 20 miles east of Port-au-Prince, that were part of two poultry
plants. Once full of clucking broilers, now they host only dust and rats. ''Now I make charcoal and grow
some sorghum during the rainy season,'' he said.
At her table under a broken beach umbrella in the Croix Bossale marketplace, Olide Eloie, 36, is happy
to sell the American ''second-hand chicken,'' as it is commonly called.
''They sell better than Haitian chicken,'' she said, batting big black flies away from the piles of pink legs.
``I can sell a [44-pound] case in a day.''
A Haitian chicken sells for about $5.50, but the same weight of U.S. chicken parts sells for less than
$2.50.
PRICED OFF MARKET
The same goes for rice. Six pounds of Haitian rice sells for between $1.70 and $3, but the American
product known here as ''Miami Rice'' is $1.45. Imports of U.S. rice have doubled since 1995, to 200,000
metric tons per year, making Haiti one of U.S. growers' best customers.
''Haitian rice just cant compete,'' acknowledged economist Henri Bazin, who heads the Haitian
Economists Association. ``Liberalization happened here overnight. All of a sudden. Maybe it was too
brutal.''
Rey defends Haitis slashing of tariffs by saying the government had no choice, and that anyway lower
tariffs mean lower prices. ''The consumer wins,'' Rey said.
But only if market prices are in fact lower. In Haiti, they are not really. As Haiti's economy ground to a
halt over the past eight years, in part because the agricultural sector stagnated, the country's currency
lost two-thirds of its value. That means chicken and rice cost about the same today as they did in 1995.
And only if consumers are buying. With a contracting economy, nearly half the population malnourished
and some 2.4 million people living in extreme poverty, chances are most Haitians arent buying a lot of
chicken and rice.
To the contrary, Bazin noted, cheap imports and the governments failure to support peasant farmers is
driving them off the land and into the cities burgeoning slums.
Bazin believes free trade can benefit countries that plan right, but, he noted, ``You cant compete if you
dont produce.''



Farmers forced out as global brands build Haiti free-trade area
By Jacqui Goddard, The Sunday Times, 6 July 2003
Farmer Jean Eugene gazes wistfully through the tall wire fence that has been built across his Caribbean farmland,
shaking his head as he reflects on the bad fortune it represents for his family.
Just weeks ago, his fields were rich with corn and vegetablestreasured assets in Haiti, the poorest country in the
western hemisphere. But then the bulldozers arrived. Mr Eugenes crops were ripped from the soil by government
contractors and he has been barred from his own land to make way for the construction of an industrial Free Trade
Zone (FTZ) that will house cheap-
labour factories producing clothes for
leading brands including Levis, Gap,
Tommy Hilfiger and Hugo Boss.
This is a crime against humanity, says
Mr Eugene, 43, whose elderly father
was chased away by armed Haitian
police when he tried to access the plot
to pick ripened mangoes from a tree.
While these big companies are getting
rich, we will be struggling to even feed
ourselves. Planting crops is how we
survive hereour life comes from the
earth. We cannot eat rocks and cement,
we need plantains and corn.
The Maribahoux Plain is one of the
countrys most fertile agricultural regions. Located on Haitis border with the Dominican Republic, it has a production
capacity of more than 30,500 tons of food per year, enough to feed half a million people.
But under a scheme jointly approved by the two countries governments and funded by the World Bank, 54 peasant
farmers including Mr Eugene have been evicted to free up land for the first phase of the FTZ.
Ultimately there will be around 40 factories along the 360km border, creating a 500,000-sq.metre trading park from
which goods will be exported free of taxes and tariffs.
The first phase involves the building of a 150,000-sq.metre worksite for Grupo M, a Dominican Republic textile
company that will lease the land from the Haitian government for 25 years. It supplies some of the worlds top clothing
outlets, boasting: We dress the world, stitch by stitch.
Grupo M and the World Bank say the first phase will generate up to 4,500 jobs for Haitians, while the entire project
could provide more than ten times that number. The firm will provide workers with housing, a training unit, a day care
centre and a clinic.
There has been a lot of discussion about the social and environmental aspects and we have offered to move farmers to
new land. We are very sensitive to the issues, said a spokeswoman at the companys headquarters in Santiago,
Dominican Republic.
But Mr Eugene claims the bulldozer teams that seized his fields in March came unannounced and there has been no
offer of new land. Whereas he could previously expect annual crop profits of around 70,000 Haitian Gourdes (1,300),
he says the government has offered around a third of that sum as total compensation. I dont want the money, he said
defiantly. My land is not for sale.
A kindly-faced man, he lives with wife Anouse, 33, and their seven children in a cramped concrete home in
Ounaminthe, a town of 70,000 people located a three-hour drive along a rocky unmade road from the second city of
Cap Haitien. Pigs, goats and chickens wander the streets, mingling with donkeys and horses carrying farmers and their
produce to market. Few people here have even heard of the multi-billion pound designer brands for whom their crops
have been sacrificed.
Gaston Etienne, coordinator of Komite Defens Pitobert, a farmers advocacy group, said: you will be buying your
fashion items while we are earning a pitance making them.
Mr Eugene has now taken work as a teacher, earning 2,500 Gourdes (62) a month, but needs a minimum of 200
Gourdes (5) a day to feed his family, including daughter Aisha, born only ten days ago. My dreams for Aishas future
have completely changed, he lamented. I will not be able to even afford her powdered milk.
For each of the 54 farmers who lost land, up to 50 farmworkersmany of them elderlyhave also lost their
livelihoods, but only those under the age of 35 will be offered factory jobs. It is not yet known how many others will
lose land in the next phases of development.
In addition, critics condemn the factories as sweatshops, farmworkers who have been offered jobs there reporting that
their wages will be just 10% of what they used to earn.
Leading Haitian economist Camille Chalmers, citing the example set by FTZ sweatshops established in Haiti in the
1960s under former president JeanClaude Duvalier, predicts a swift ghetto-isation of the Maribahoux area as cheap
housing springs up and thousands pour in searching for work.
The job creation rhetoric is propaganda, said Mr Chalmers, founder of PAPDA, the Haitian Advocacy for an
Alternative Development Programme. They talk about jobs being created, not the jobs that are being lost. There will be
a real human cost.
They should work with farmers to increase agricultural productivity and feed Haitis people, rather than destroying the
countrys bread basket to benefit foreign investors.
There are also concerns that the regions four rivers will be polluted by the industrial activity.
At the World Trade Organisation summit in Cancun, Mexico, this September, the British government will be pushing
for a new agreement that will govern foreign investment in developing countries such as Haiti. The government, along
with the EU, claims that the deal would create fairer trading practices and protect the poor.
But non-governmental groups including the development agency ActionAid, which will tomorrow (Mon) lobby Trade
and Industry Secretary Patricia Hewitt in London, complain that the deal would actually make it easier for big
corporations to expand their wealth at the expense of some of the worlds most poverty-stricken people. They say Haiti
is a prime example of how things can go wrong.
While foreign investment can help combat poverty, it can only bring benefits if carefully managed, said ActionAid
trade analyst John Hilary.
In Ounaminthe, there is fear over the insecurity the FTZ has brought. Farmer Francis Bosse, 74, another of the towns
farmers who lost their land, said: Land is your inheritance, but now I have none to hand over to my son. This was the
pearl of Haiti, but what they are building on this land is misery.

Haiti Video notes