Written by Joshua Dobbs
Haiti: Sak vid pa kanp an empty sack can't stand up
On January 12, 2010 a 7.0 magnitude earthquake devastated Haiti and its capitol Port-au-Prince. A Mayday distress signal for urgent aid was sent and immediately received worldwide. Not all bad, the recent light shed on Haiti has unveiled critical systemic failures, both at the national and international level. Haiti has had little, if any, government infrastructure and/or political capital for the greater half of the 20th Century and all of the 21st Century, which has allowed foreign assistance to fail miserably.
However, Haitian shortcomings cannot be squarely blamed on the deficiencies of the Haitian people, nor its corrupt government. Corruption is not solely endemic to Haiti. It is important to focus a great deal of attention and awareness toward the ways in which assistance is given to countries such as Haiti. The International Monetary Fund, the World Bank, International Development Association, and World Trade Organization are major enforcers of structural adjustment in exchange for development loans and aid. It is extremely important to recognize that the United States is the largest contributor, and therefore has the most influence over these international organizations. Structural Adjustment, largely enforced by the World Bank and IMF, rectifies loan guarantees with the dismantling of government institutions and vital local economies.
There are several common conditions set by structural adjustment programs (SAP’s). Resource extraction – the restructuring of local economies into export dominant economies. When manufacturing and agricultural infrastructures are retooled to meet the needs of the West, local economies can no longer fulfill the needs of local populations. These local populations become extremely dependent upon foreign imports, leaving indebted countries highly dependent upon Western prices with very little negotiating power. Devaluation of national currency – this allows foreign investment groups and international corporations to buy up local assets at low costs, create products, and pay wages at a low cost. It also decreases the spending power of populations depending on imported goods. Cutting social expenditures – this is the forced dismantling of government social programs, generally consisting of education, healthcare, and utilities. Only 10% of Haitian schools are public. Privatization – in sync with cutting social expenditures, governments are forced to sell off utility assets. Because the currency has been devalued, trade barriers lifted, and laws created to favor foreign investment and development groups, corporations purchase the local utilities and profits move to Western bank accounts.
Aid tying, a form of blackmail in exchange for foreign aid, has drastically hurt Haiti and other developing nations. Terry F. Buss, in his book Haiti in the Balance: Why Foreign Aid Has Failed and What We Can Do About It, wrote “US aid required that a country buy food products grown and processed in the United States and transported on American ships or carriers” is standard practice for receiving foreign aid by the US and other Western countries. Devalued currency does not retain the buying power to sustain healthy development of a nation which is required to purchase lucratively priced foreign commodities.
From 1990 – 2003, Haiti received $4 billion in foreign assistance, which has largely been ineffectual. Haiti simply lacks the infrastructure (in large part due to active policies of the IMF and World Bank) to effectively and responsibly put the money to good use. It is extremely important to invest and/or donate to non-governmental agencies and aid groups which are located in Haiti, possess strong local ties, are aware of the needs of the Haitian people, and can create local and national infrastructure to meet these needs. Corrupt governments aiding other corrupt governments will never stimulate sustainable development.
*For further interest in Haiti read “Haiti in the Balance: Why Foreign Aid Has Failed and What We Can Do About It” by Terry F. Buss. For Further interest in Structural Adjustment, the World Bank, and The IMF read The Debt Threat by Noreena Hertz.