Strengths

The major advantage that exists in Haiti is that the country is a virgin playground for innovation and opportunity. Nevertheless, major constraints prevent the Haitian people to reach what has become a commodity in developed countries. We will first look at the strengths in the different sectors, then the weaknesses that injure the country's development.

 

Business

As stated before, banks play a major role in the Haitian economy. They have proven to be the fastest growing industry and the most innovative. By forming consortiums to create other lines of business including real estate and even radio (Radio Vision 2000), financial institutions have been at the forefront of the country's development. Another driver of development has been the considerable number of NGOs, national and foreign, that have worked relentlessly in order to create new ventures in technology, infrastructures, and improving communications between the public and private sectors. The Center for Free Enterprise and Democracy (CLED) is a Haitian run NGO, funded by USAID and the Center for International Private Enterprise (CIPE), involved in projects ranging from journalists training to political mediation to empowering chambers of commerce. Organizations such as CLED have contributed greatly in the reinforcement of the notion of democracy and basis for free enterprise. Furthermore, the increase in the number of cyber cafes and the demand for Internet connection are clear indicators that the people of Haiti want to be part of the information superhighway.

 

Weaknesses

 

Government

The Haitian government is one of the biggest obstacles for economic growth. Over the past ten years, Haiti has experienced a deterioration of its public office. After years of dictatorship and military rule, the Haitian people felt relief when Aristide's party won Haiti's first free elections. The relief turned into turmoil when the government proved to be more like a dictatorship involved in drug trafficking and composed of leaders that called themselves "Anti-Liberals", meaning "anti-progress". By using the government's monopolies in the various industries to their means, the political leaders seriously impaired the evolution of Haiti's economy. Not until the government stops intimidating businesspersons in order to insure their own profits will the country start its journey on the road to development.

 

Economy

Haiti's economy steadily declined in the 1980's, with real per capita gross domestic product falling two percent (2%) a year from 1980 - 1991. Haiti's poor economic performance reflected political instability, pervasive corruption and inefficiency in the public sector, and lack of investment in physical and human capital. Haiti's economic decline accelerated after the military coup in 1991 and the subsequent imposition of international trade sanctions. Most external aid was also suspended. Real GDP declined by about 30% over the period 1991 - 1994. Inflation rose from 14% in 1992 to 52% in September 1994. By 1994 estimated per capita GDP had fallen to $260. During the three years of the embargo, the public deficit was financed mainly by central bank credit and the accumulation of arrears. Net central bank credit to the public sector rose by an average of 65% yearly from 1992 to 1994. Exports declined from $202 million in 1991 to $57 million in 1994, and total imports fell from $449 million to $141 million, declining approximately 66% in 1994 alone. Investment fell dramatically, from 11% of GDP in 1991 to 1.7% in 1994, damaging the country's already weak economic infrastructure and industrial production.

 

Infrastructure

Haiti's physical infrastructure is poor -- roads are inadequate, and basic services such as power and telecommunications are frequently unavailable. The country also lacks a railroad system, making the shipment of goods around the land a tedious and dangerous endeavor.