Government aims to restore investor confidence
To make Haiti an attractive location for new business, Improvements in education, infrastructure, and labor skills training are required

Agriculture forms the base of Haiti’s economy but the government plans to diversify the country’s output by promoting other sectors

As Haitians celebrate the “new dawn” of the bicentennial, the government in Port-au-Prince is eager to re-establish Haiti as a favored destination for foreign direct investment. A number of investor-friendly measures have recently been passed by parliament giving various privileges to foreign capital as well as investment guarantees in keeping with international standards.

Nonetheless, a number of factors are acting as obstacles to foreign investment, and they need to be removed if funds are to start flowing in. Not least of these is the three-year-old political impasse, in which the opposition claims that the conditions do not exist for truly free and fair elections to take place. As a result of perceived shortcomings in the 2000 elections, substantial amounts of foreign aid have been withheld by Western donors, including the United States and the E.U., though some largely humanitarian programs do still receive assistance.
The government blames the opposition for this situation. Prime Minister Yvon Neptune comments, “In Haiti, we are at the construction stage with democracy. It is the duty of all citizens or political parties to take part in strengthening this construction, which we must complete together.”

The State Department in Washington remains skeptical, and Congress is unwilling to see financial sanctions against Haiti lifted. Yet at the same time, Haitian Americans, in particular, are being actively solicited to examine investment opportunities in their country of origin.

YVON NEPTUNE Prime Minister

Mr. Neptune concedes that much needs to be done to restore investor confidence and to make Haiti an attractive location for businesses to set up. That means not just building up infrastructure, but also improving the country’s human resources. Labor is plentiful and the government has focused on expanding education and training projects.

“Which investor would not want to have qualified employees capable of using new technologies, for example?” the Prime Minister asks. He believes that 2004 will see big advances in the implementation of key elements of the 2001-2006 Five Year Plan. The bulk of national investment during 2002-2003 was in infrastructure development. This included upgrading Haiti’s road network, increasing the capacity of schools, and building housing projects for low income families — all of which are seen as a springboard for development.

“Obviously, to achieve these objectives, we have to be able to communicate,” he says.
“Consequently we need sufficient infrastructure in the field of communications — both telecommunications and highways. The development of a country and its people will inevitably rest on education, health, communications, and work.

“Developing the economy implies medium- to long-term investment,” Mr. Neptune argues. “Moreover, by investing in communications and infrastructure, we will create jobs, which will stimulate economic activity.”
Such government programs, coupled with a simplification of administrative procedures, have led to a number of new inward investment flows, notably in the tourism, agribusiness, and manufacturing sectors. Minister of Commerce and Industry, Leslie Goutier, says that investment and foreign expertise is also needed for the exploitation of an abundance of raw materials, such as gold, aluminum, bauxite and copper.

JOSEPH PHILIPPE ANTONIO Minister of Foreign Affairs

Haiti’s Foreign Minister, Joseph Philippe Antonio, believes that joining CARICOM has brought new opportunities to the country, as its CARICOM partners start to take stock of the advantages of having Haiti on board.
“Haiti has brought them its market and its population—its labor force,” he says. “There are things which could encourage businessmen from around the Caribbean to come and set themselves up here. Haiti can also bring its culture as well; all its cultural traditions and know-how with handicrafts.

“Haiti will never be able to take on the world’s commercial giants, nor could St. Lucia or St. Kitts and Nevis, for example. The future for Haiti and the other small Caribbean states rests with regionalization,” the Minister maintains.

He sees tourism as a prime sector for cooperation within the region. “CARICOM can really help us with that,” he says. “Other Caribbean countries have a head start in the tourism market but here we have fantastic, empty beaches. This sector is unexploited and Haiti can offer a lot to potential investors.”
Meanwhile, attracting mainstream U.S. investment may prove a more difficult task. It is clear to see that Haiti needs the United States, both as a potential market and as a source of funds, but there is a distinct ambivalence in the relationship.

“On our side, we are doing everything we can to ensure normal relations with the United States,” Mr. Antonio declares. “We have our problems and weaknesses, but we are not alone in that. What we would like to see first is a degree of respect.”

He believes Haitian Americans can play an important role in building a new understanding, as well as contributing directly to the country’s development. “In general, I believe that people of Haitian origin in the United States remain very attached to their home country, and even fight for its dignity. In general, Haitians abroad support their country.”

U.S.-based expatriates also have the huge advantages of speaking English and being familiar with two very different cultures. Thus they can help break down Haiti’s sense of isolation, while the government concentrates on mending fences with Washington and counteracting the negative stereotypes that have all too common currency.