Tradition and Transition: Understanding Haiti’s Economic Landscape

Written By: Gahyun Park, WKU 1st Annual Journalism Competition Finalist

Haiti's capital, Port-au-Prince, in 2017. By Daniel Berehulak for The New York Times

 Haiti’s worldwide perception is marked by stigmas of poverty, violence, tragedy, political chaos, gang control, and disastrous foreign interventions. These perceptions, while generally true, only scratch the surface of a nation with a rich and complex history[1]. As the first black independent country with a story of a successful slave revolt, Haiti was a ray of hope for African-Americans in the United States during the nineteenth century[2]. 

   Popular history holds that shortly after Christopher Columbus arrived in the Caribbean in 1492, the Arawakan-speaking Native people known as the Taino were obliterated by slavery, disease, starvation, and war[3]. When they were first encountered by Europeans, the Taino practiced a high-yielding form of shifting agriculture to grow their staple foods, cassava and yams. Taino culture was largely wiped out, although several groups claiming Taino descent gained visibility in the late 20th century, notably in Cuba, Puerto Rico, and the U.S. state of Florida. In 1998 the United Confederation of Taino People, which characterizes itself as an “Inter-Tribal authority,” was created as an umbrella organization for the affirmation and restoration of Taino culture, language, and religion. Whereas the Taino are not officially recognized as a group by any governments, those who consider themselves Taino claim the right to self-determination[4]. 

The Citadel, one of Haiti's many historic sites. By Christopher Miller for The New York Times

   In the latter part of the 20th century tourism became an important element of the economic base of Haiti. But the political instability and the public's association of Haiti with AIDS severely crippled the Haitian tourism industry. In recent decades the low wage rates of Haiti have attracted manufacturing assembly operations. Haiti is one of the few countries that has pay scales low enough to compete with China. The development of manufacturing assembly operations in Haiti was helped greatly by changes in the tariff rules that allowed Haitian operations to function much like the maquiladoras of the U.S.-Mexican border areas where the products assembled from material from U.S. sources could re-enter the U.S. without duties being charged[5].

   Haiti continues to face significant challenges and civil unrest. With no dates yet announced for national elections, it is anticipated that political uncertainty and a short-term economic policy focus will complicate the workings of an already opaque bureaucracy. Prime Minister Ariel Henry has publicly announced the imminent formation of a new Provisional Electoral Council to organize elections and a National Constituent Assembly to reform the constitution. While the country maintains a liberal trade and foreign exchange regime, and largely adheres to World Bank programs to fight poverty, continuing reports of corruption and financial mismanagement have raised challenges for investment[6].

Photo: RICHARD PIERRIN/AFP via Getty Images

   The Government of Haiti (GoH) Post-COVID Economic Recovery Plan (PREPOC 2020-2023) includes the textile sector as one of the most important means for achieving economic transformation and diversification over the next three years. Since its launch in January 2021, the Investment Opportunity Generation Project has tried to support the industry through targeted business information as well as transactional support to increase business opportunities for investors and manufacturers. Despite the negative impact of the pandemic, most companies in the sector currently operate near full capacity[6].

   The Sustainable Development Goals (SDGs), also known as the Global Goals, are a universal call to action aimed at eradicating poverty, protecting the planet and ensuring peace and prosperity for all people[7]. Their objective by 2030 is to reduce the number of people who do not have access to care through a program to strengthen the quality of care in Haiti through various projects. In accordance with these objectives, the Haitian government is planning to execute a variety of reform projects. These include the establishment of community pharmacies in hospitals, prison, and educational establishments, training sessions on self-medication, awareness campaigns on the importance of medical insurance, and an advocacy project to increase the national health budget[8]. 

[1] Stabroek News

[2] The University of Kansas

[3] Smithsonian Global

[4] Britannica

[5] San Jose State University

[6] U.S. Department of State

[7] United Nations

[8] Sustainable Development