Understanding Why Is Haiti So Poor?

Understanding the why

How big is the problem?

According to the World Bank, Haiti is the poorest country in the Western Hemisphere, with a gross domestic product (GDP) per capita US$797, and a Human Development Index Ranking of 169 out of 189 countries in 2019. The latest official poverty estimates (2012) suggest that over 6 million Haitians lived below the poverty line of US$2.41 per day, and more than 2.5 million fell below the extreme poverty line of US$ 1.12 per day (The World Bank, 2019a). The local political instability, the poverty, the insecurity, and the migratory crisis all represent symptoms of a disease.

Understanding the why

We have classified the main drivers that have contributed to the current degradation of the socio-economic landscape in Haiti into external factors outside of our control, such as  foreign interventions in HAITI’s internal affairs (Kifner, 1994; Bellegarde-Smith, et al., 2015)), and internal factors that we can control, such as an outdated education system that has produced leaders and citizens incapable of moving the country toward a path of economic development.

External factors related to the problem

The impact of foreign intervention on the degradation of the current economic-social and political situation in Haiti

The Haitian people have been suffering for more than 300 years.

A) First, they had to endure forced relocations from their ancestral homes in Africa and the psychological impact of trans-generational trauma, gaps in generational wealth inequality, and gaps in education.

B) Subsequently an international blockade was imposed by the United States, France, and the United Kingdom (Tim, 1996) after they rebelled and gained independence from France in 1804, making the Haitian revolution the first successful revolt by enslaved people (Bodenheimer, 2021). Haiti eventually had to pay an indemnity of 150,000 francs so France would recognize Haiti’s independent status. As a result, the country was forced to borrow 30,000 francs and accept a 50% discount on goods sold to France (Beauvois, 2009). Other nations continued to exploit Haiti’s relative lack of political clout to advance their own economic interests over the years that followed.

C) Significantly, in 1986, The International Monetary Fund and the World Bank convinced Haiti to reduce its tariff from 35% to 3.5%, and then again to 1.5% in 1995 (Altidor, 1972). Those actions benefited multinational corporations who could now sell their products to a new market for a profit, but contributed to the decline of Haitian industry and agriculture.

D) And in 1994, the US unilaterally dismantled the Haitian army and undermined other Haitian governmental institutions (Kifner, 1994). Needless to say, the current insecurity in Haiti is a direct result of these actions.

Internal factors related to the problem

The citizens of Haiti are the product of the education they have received, or lack thereof. Over the course of our operations in Haiti, we have observed that Haitians often cannot collaborate on a shared vision to help their country move forward, a phenomenon that we have witnessed both in the diaspora among highly educated Haitians and in Haiti itself.

The education system faces many challenges. There is minimal access to technology even in the best schools. Students are taught in French, a language they struggle to understand. Pedagogy is dated, and most assessments rely on memorization instead of critical thinking, innovation, creativity, and problem solving. The teachers are inadequately trained and ill-equipped to overcome those challenges. From a public policy standpoint, education policy can be a powerful tool to produce productive, innovative, creative, and responsible citizens who contribute positively to the well-being of their state. 

Elected officials have been ineffective at achieving economic development, various segments of the population engage in self-destructive behaviors such as street protests that often culminate in violence, and a great majority of citizens prefer spending money to leave the country instead of collaborating and innovating to build collective business ventures in Haiti.

Farmers are selling their lands because of their inability to generate a profit due an archaic agricultural economy. The country is overly reliant on imported products, as Haitian production of goods is almost non-existent; deforestation is rampant and civic engagement is lacking.

During the 2016 presidential election in Haiti, only 18 percent of the population voted. There is a severe lack of trust in Haiti’s institutions and leaders. 

What can we do about it?

An effective solution should build the leadership capacity of local leaders and government officials, re-inventing the education system so the Haitian citizens will be able to succeed in their current environment, while simultaneously encouraging external players to desist from unilateral interventions that benefit their own countries at the expense of the Haitian economy and institutions.

References 

The World Bank. (2019a). The World Bank in Haiti. Retrieved from https://www.worldbank.org/en/country/haiti/overview

Kifner, J. (1994, September 23). U.S. Soldiers Begin Dismantling Elite Haitian Military Company. The New York Times, p. 1. Retrieved from https://www.nytimes.com/1994/09/23/world/mission-haiti-haiti-us-soldiers-begin-dismantling-elite-haitian-military-company.html.

Bellegarde-Smith, P. e. (2015). Haiti and Its Occupation by the United States in 1915: Antecedents and Outcomes. 21, 10–43. Retrieved Aug 1, 2022, from ttp://www.jstor.org/stable/43741120

Tim, M. (1996). Jefferson and the Nonrecognition of Haiti. Proceedings of the American Philosophical Society, 140, pp. 22–48. Retrieved from http://www.jstor.org/stable/987274.

Bodenheimer, R. n. (2021, November 22). The Haitian Revolution: Successful Revolt by an Enslaved People. ThoughtCo. Retrieved from https://www.thoughtco.com/haitian-revolution-4690762.

Beauvois, F. (2009). L’indemnité de Saint-Domingue: « Dette d’indépendance » ou « rançon de l’esclavage »? French Colonial History, 10, 109–124. http://www.jstor.org/stable/41935195

Altidor, P. (2004). Impacts of trade liberalization policies on rice production in Haiti. Thesis, Massachusetts Institute of Technology. Retrieved from http://hdl.handle.net/1721.1/28350.

Kifner, John. 1994. “” U.S. Soldiers Begin Dismantling Elite Haitian Military Company.”.” The New York Times, September 23: 1. https://www.nytimes.com/1994/09/23/world/mission-haiti-haiti-us-soldiers-begin-dismantling-elite-haitian-military-company.html.