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The Economic Crisis in Haiti

Economic Crisis in Haiti
Haiti is undergoing significant economic turmoil. The economic crisis in Haiti has posed challenges for families in affording essential items like food and has also affected their ability to sell crops in local markets. Political instability, natural disasters and social unrest have worsened these challenges, further affecting the country’s capacity to attain sustainable economic growth and improve the well-being of its impoverished population.

Haiti’s Turbulent Economic History

During the past few years, Haiti’s economy has been under pressure due to several factors such as natural disasters, diseases, political instability, mishandling of humanitarian assistance and the devaluation of its national currency. The country’s previously thriving tourism industry has declined as well. In contrast to the peak of 1.3 million tourists in 2018, which brought in $620 million in revenue, Haiti only received 938,000 visitors in 2019. The outbreak of the COVID-19 pandemic also significantly curtailed travel and economic activity.

After an earthquake in 2010, international lenders canceled Haiti’s debt; however, its borrowing has increased to around $3.57 billion since then. Additional turmoil, such as the growing protest movement, the assassination of President Jovenel Moïse in 2021, consecutive natural disasters in July and August of the same year and widespread gang-related violence, has further strained the nation’s economic circumstances. 

In 2022, armed gangs fueled the economic crisis in Haiti with their actions, including blocking the southern entry to the nation’s capital, which isolated four departments from the rest of the country. These areas produce consumer goods supplied to Pourt-au-Prince, and the blockade affected the country’s economy during a severe nationwide fuel shortage. This also exacerbated the hunger crisis in Haiti, with a total of 4.9 million people in Haiti experiencing food insecurity. 

Solutions

The United States is the largest contributor of humanitarian aid to Haiti. The U.S. prioritizes fostering economic growth, reducing poverty, upholding human rights and strengthening democratic institutions. To combat poverty and address persistent unemployment by creating jobs, the U.S. promotes bilateral trade and investment in Haiti. The substantial Haitian diaspora in the U.S. presents a potential influential partner in the endeavor to expand business prospects and capitalize on the numerous connections that bind Haitian and American communities.

The International Development Association (IDA) supports the government of Haiti to address the ongoing economic crisis in Haiti. They participate in supporting private secret actors and removing infrastructure barriers to market access. IDA’s support centers around enhancing human capital by expanding access to education in health care. Simultaneously, the IDA assists the government in enhancing transparency, accountability and efficacy in public investment This effort also involves strengthening institutional capabilities to generate crucial data, manage sectors, establish evidence-based policy priorities and cultivate fiscal sustainability.

Looking Ahead

According to the United Nations Conference on Trade and Development (UNCTAD), achieving lasting economic security will rely on increasing investment levels in both the public and private sectors to foster rapid and more inclusive growth. Developing infrastructure, enhancing productivity on farms, increasing manufacturing and ensuring the provision of fundamental services will have the potential to create connections that will establish are more lawful development cycle.

– Marisa Del Vecchio
Photo: Flickr

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How Pandemics Can Lead to Social Unrest

Social unrest
Social unrest is something that the world has seen a lot throughout history. Pandemics, which can lead to job loss and food insecurity, only exacerbate the issue. Over time, people have experienced the Black Death, Spanish Flu and COVID-19.

Historical Ties

World history is full of examples that show pandemics being incubators for social unrest. In an article on the history of epidemics, the author stated, “academics have warned that the level of social unrest around the world may spike once the COVID-19 pandemic is over.” This is a common theme following epidemics. Massimo Morelli, a professor of political science, and Roberto Censolo, an associate professor at the University of Ferrara, studied evidence on protest and unrest. Between the Black Death in the 1300s and the Spanish Flu in 1918, there were around 57 epidemics. Of those, only four did not have a clear connection to the outbreaks.

This study showed that epidemics and pandemics can lead to social unrest in three ways:

  • Policies that try to curb the spread of disease can conflict with people’s interests
  • The pandemic’s impact on mortality and the economy can worsen societal inequalities
  • The psychological shock can lead people to believe irrational narratives about the disease and its spread

Recently examples of the third example have occurred in regards to the COVID-19 pandemic. Nicknames like the “kung flu” and the “China virus” have caused rifts between the Asian community and people using phrases like those. This has only further exacerbated the racial divide in the United States. Any one of the above factors could make people quite aggressive when the pandemic ends.

Current Events

During the first half of 2021, Cuba, South Africa, Colombia and Haiti have had violent protests with their citizens hitting the streets. Each country has faced pre-existing economic, social and political hardships that the COVID-19 pandemic inflamed. For Haitian citizens, this culminated after the assassination of President Jovenel Moïse. Additionally, existing tensions in countries around the world are morphing into civil unrest and protest against inequalities deepened by the pandemic. COVID-19 has worsened the weaknesses in food insecurity and increased the number of people affected by chronic hunger. With these factors in mind, perceptions have determined that the spike in global unrest and long-term rebellion will continue.

Economic and Political Impacts

Pandemics unquestionably cause long-term economic effects globally. By straining economies, COVID-19 could be the source of potential political instability, which increases the number of people living below the poverty line. Curbing a pandemic takes a lot of work including:

  • Imposing quarantines
  • Preparing health facilities
  • Isolating infectious cases
  • Implementing an effective contact tracing system involving public health resources, human resources and implementation costs

This also includes the cost of creating antibiotics and providing medical supplies and personal protective gear. Frontiers in Public Health stated that “Pandemics can also result in declined tax revenues and increased expenditure, which causes fiscal stress, especially in lower-middle-income countries (LMICs) where fiscal constraints are higher.” Labor shortages, restricted travel or trade and disruption of transportation are factors in how pandemics tie into global poverty.

In addition to the points above, pandemics can cause clashes between nations and populations that have experienced displacement. In nations with weak institutions, pandemics can cause political tensions and unrest, like what is currently happening in Cuba. The pandemic exacerbated economic hardships, leading to civil unrest and protests.

Future Avoidance

People cannot do anything to stop pandemics from happening, but they can change the fallout and subsequent social unrest. History has shown that epidemics more often than not lead to social and political unrest. To avoid that in the future, it is necessary for countries to better prepare themselves. Authorities should take into account how prevention methods affect people’s lives. Next, it is essential to set up programs to account for businesses closing. Furthermore, countries should implement more mental health care so that people do not suffer. Finally, people must consider the economic divide and those living in LMICs.

– Ariel Dowdy
Photo: Flickr

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The Road to True Democracy in Haiti

Democracy in Haiti
An unidentified gunman assassinated Haiti’s president, Jovenel Moïse, in his residence on July 7, 2021. The assassination marked a new chapter in Haiti’s tumultuous history of governance. Never possessing true legitimacy, years of institutionalized corruption and patronage to Haiti’s small business elite characterized Moïse’s time in office. People accused Moïse and some of his top staff of embezzling billions of dollars in foreign funds. He had no intention of leaving office, and instead closed Haiti’s parliament and delayed legislative elections. In Haiti, the thought of democracy in Haiti – with free and fair elections – is a distant dream.

Internal corruption has led to governance that prioritizes the interests of the nation’s wealthy minority, holding the prosperity of Haitians hostage in the process. The country has yet to reflect the true democratic will of the Haitian people. For far too long, the Haitian people have suffered due to their country’s political turmoil. They deserve a government that will work fervently towards providing economic opportunities and an educational infrastructure that will benefit future generations.

The Heart of Haiti

While resilient at its core, Haiti is one of the most impoverished countries in the world. Furthermore, the country never recovered from the devastating 2010 earthquake that killed over 250,000 people. The COVID-19 pandemic has recently exacerbated its already deteriorating infrastructure. Lagging behind the rest of the world, Haiti has not administered any vaccines. Despite a lack of basic resources, the Haitians refuse to give up. Family farms and women-led food markets in urban hubs have transformed the national economy. As a result, hope is undergoing restoration in a population that its own elected officials have unfairly marginalized.

As Haiti navigates this transition of power, it is ever as important for the international community to support the Haitian people. Following Moïse’s assassination, White House press secretary Jen Psaki professed, “We again stand ready to provide support, provide assistance, in any way that is formally requested by the government there. We’re looking forward to hearing from them on what they would request and how we can help them through this period of time.” The next month will prove to be vital in ensuring the restoration of democracy in Haiti. As U.S. officials and other members of the international community offer hands of assistance, it is crucial that their vested interests remain out of the picture.

What is Next?

While uncertain, the road to democracy in Haiti is promising. Legislative elections are now scheduled for September 2021, but Haiti must first solve the predicament of who will be the country’s interim president. Nevertheless, this is a monumental moment in Haitian history. The world will have to see if Moïse’s death will ignite unity across Haiti, bringing peace to its people who have long experienced immense poverty. It is up to Haiti’s political leaders to prevent democratic backsliding and in turn, forge a brighter future. Likewise, international organizations such as the United Nations and World Health Organization (WHO) must continue to amplify their presence in Haiti during this turbulent time. Achieving true democracy in Haiti is possible, but much more groundwork is necessary.

– Conor Green
Photo: Flickr

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Why Is Haiti Poor?


Haiti has been consistently named the poorest country in the western hemisphere. The catastrophic 7.0 magnitude earthquake that struck seven years ago and Hurricane Matthew in 2016 brought attention to this truth. With natural disasters like the two aforementioned raising media attention to philanthropic efforts, the question often remains: why is Haiti poor?

The question at hand can be addressed by looking at one of the key reasons: political instability. Haiti’s political history has been unstable and this is usually attributed to post-colonial tensions and leadership struggles. While the situation has improved in recent years, the periodic vacancies of positions within the cabinet and of the prime minister, as well as parliamentary debate can and have halted reconstruction efforts or poverty-reducing legislation. For example, the 2016 election process was delayed many times. This delay did nothing for the reported 55,000 people still living in makeshift camps after being displaced due to the rural housing damage caused by the 2010 earthquake.

The slow implementation of policies is often cited as a governmental failure, a failure that fuels crises. IRIN News notes the Haitian government’s wish to implement reforestation projects and other policies that would aid commercial farmers, but that corruption and donated resources not being properly distributed are hampering this effort. IRIN News quotes a Haitian farmer who states that “politicians have failed…Our leaders even had the audacity to take credit for efforts done by aid agencies and directed towards their friends.”

Because of this political instability and overall distrust for the political system, demonstrations are often held in Port-au-Prince. Haitians themselves are questioning: why is Haiti poor?

With new president Jovenel Moïse inaugurated in February 2017, many citizens are hopeful that he will follow through on his election promises of government reform and more democratic processes.

– Gabriella Paez

Photo: Flickr