International aid remains crucial
BY STABILIZING THE GOURD AND DECREASING BOTH INFLATION AND INTEREST RATES, HAITI IS AIMING TO PLAY A LEADING ROLE IN THE FUTURE CARIBBEAN COMMUNITY, CARICOM

Vénel Joseph Governor of the Banque de la République d’Haiti (BRH)

Haitian officials recognize that their country is one of the poorest in the world, with an average per capita income of $330. Its economic situation has worsened since the freezing of international aid after the controversial 2000 elections and urgent steps are needed to improve the situation.
Governor Vénel Joseph of the Banque de la République d’Haiti (BRH) is working on a “straightening plan” in conjunction with the Minister of Economy and Finance. Mr. Joseph aims to maintain and improve on his predecessor’s policies, which include streamlining the internal payments system, stabilizing the gourd and decreasing inflation and interest rates. The bank is viewed as a crucial player in drawing investors and its recent adhesion to the Caribbean Financial Task Force (GAFIC in its French acronym), an organization which aims to prevent money laundering in the region, can only improve Haiti’s status in the financial community. What’s more, by becoming a member of Caricom, Haiti is also joining the process to create a financial and economic single market in the region.

FAUBERT GUSTAVE Minister of Economy and Finance

In order to raise the financial blockade, the bank has circulated BRH and BC bonds and aims to follow up with treasury bonds. “This is to make the monetary purchase large enough to extend some activities to other economic agents throughout the treasury, so we can offer them financial purchase,” explains Mr. Joseph. His bank regards the current balance of trade as unacceptable and admits it may worsen due to the lack of investment. Problems are both internal and external. He sees Haitians as individualistically stoic but uncompromising, and thinks the U.S., their main potential partner, ought to be more fair and comprehensive.
The Minister of Economy and Finance, Faubert Gustave, believes international sanctions are a result of the political situation. Formerly the financial controller of a private company, he regards his background as proof that the government wants a partnership between the public and private sectors. “But,” he stresses, “without the help of the international community the private sector and government will not be able to reach their goal of improving the living conditions of the majority of Haitians.”

COUNTING THE GOURDES Investment, customs and financial laws are being reformed.

He sees his current job as “day-to-day-crisis management”. The national budget is inadequate, overseas investment is urgently needed, imports greatly exceed exports and foreign exchange reserves are shrinking rapidly. Mr. Gustave regards the current freezing of loans as almost “conspiratorially” unjust and thinks the U.S. should revise its view of Haiti. “Is it fair to tie international aid to the resolution of a crisis?” he asks. “If you invest in the financial and also human development of a country, the rest will fall into place.”

Government priorities cover everything from agriculture, education and health to tourism and infrastructure, but Mr. Gustave claims they are ready to rejoin the international community. “We are positioning ourselves while waiting for the return of international aid,” he says, pointing out that charts are being drawn up for reform of investment, customs and financial laws.
Also positive has been the creation of the CLED (Center for Free Enterprise and Democracy), a non-profit organization of leading business people who believe the private sector should remain engaged in both political and social issues. Created in 1993 by 20 business leaders, CLED has doubled in size since then, formulated various projects and prepared an Economic Policy Proposal, suggesting options to government and business enterprises.