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HAITI
>> Regional Overview >> Haiti Overview 
Introduction
The U.S. assistance program in Haiti is focused on supporting Haitian efforts to alleviate poverty while reinforcing the foundations for a democratic society. USAID's program seeks to increase incomes, slow environmental degradation, and improve educational performance, while reducing fertility, infant and child mortality and malnutrition. The program also strengthens democratization through a rule of law program, police training, support to elections, development of civil society and, once an elected parliament is seated, building support for parliamentary government through civil society and local government activities. The USAID program directly supports the U.S. national interests identified in the State Department's Mission Performance Plan (MPP) for Haiti.
Haiti's move toward democracy and economic growth continues to be buffeted by political struggles among the country's political actors. Some optimism was registered in March 1999 when President Preval was able to negotiate an interim government with a coalition of political parties. While the agreement did not restore the constitutional structures of the state, it installed a regime with a stated commitment to holding new local and parliamentary elections and leading the country out of its political crisis. Unfortunately, uncertainty over whether those elections will take place and a deteriorating security situation have undercut investor confidence and thereby slowed economic growth. Key economic reforms such as privatization and improvements in the investment climate have been stalled as key decision makers await the outcome of upcoming elections.
The Development Challenge
Haiti's difficulties in establishing a stable and responsive government seriously hinder its capacity to address its profound development needs. An estimated 65% of Haiti's people live below the absolute poverty line - i.e., are unable to meet minimum daily caloric requirements. Illiteracy and fertility rates remain high, as well as malnutrition among children under 5 years of age. The Haitian justice system is seriously under-resourced and unable to meet the minimal needs of the general population or business community. Haiti had succeeded, until recently, in managing its fiscal and monetary policies within the framework of the International Monetary Fund's structural/financial reform programs. Modest economic growth of 2.2% was seen in 1999, and inflation held steady at 8%. Unfortunately, toward the end of the year, a worrisome loosening of fiscal controls, due in part to demand for higher salaries for civil servants and much needed road infrastructure improvements, caused inflation to edge up to 10% and has raised concerns about accelerated inflation and currency devaluation in 2000.
Despite the unfavorable political environment, development activities continue to deliver positive results: micro-credit programs supported by USAID have grown dramatically, now reaching 18,000 customers a year; the contraceptive prevalence rate in USAID program areas reached 25% in 1998, compared to the national average 13%; and civil society, an essential element in building a healthy democratic society, has seen the emergence of thousands of local groups that are grappling with local needs and advocating non-violent, open and fair elections. In both the education and health sectors, USAID has negotiated new agreements with the Government of Haiti (GOH) to strengthen its capacity in these two key social sectors and enhance the collaboration between the public and private sector service providers. Unfortunately, the vibrancy seen at the local level is not indicative of the health of Haiti's democratic development. USAID's efforts in support of elections, justice reforms, and police training have seen only modest successes and occasional disappointments. The government appointed by President Preval announced that it would go forward with new elections for local authorities and Parliamentarians as part of its mandate to move Haiti back to constitutional government. Unfortunately, the date for these elections has been postponed twice, first from November 1999 to December 1999, and then again to the current date of March 19, 2000. The difficult logistical demands associated with the elections are proving to be strong challenges to the Provisional Electoral Council in its efforts to meet the March 2000 election date.
Other Donors
Donor grants declined from $293.1 million in FY 1996 to $222.6 and $192.8 million in FYs 1998 and 1999 (estimated), respectively. Similarly, loan disbursements (gross) tapered off from $121.5 million in FY 1996 to $97.4 and $97.1 million in FYs 1998 and 1999 (estimated), respectively. The net amount of public funds disbursed to the Haitian public sector declined by $135.0 million between FYs 1996 and 1999-going from $402.1 to $266.2 million, or a 33.4 decline. In FY 1999, preliminary figures show that the United States was Haiti's second largest disbursing donor: $114.4 million, compared to $131.2 by the EU, $77 million by the IDB, #32.7 million by Canada, and $26.7 million by the IBRD. Other major donors included the IMF, the United Nations agencies, France and Japan.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: January 18, 2001 |
