Democracy and Governance in Haiti
The Development Challenge: Haiti is the poorest country in the Western Hemisphere. The per capita annual income is less than $400 and 80% of the population lives in poverty. Unemployment and underemployment remain major problems; more than two thirds of the labor force do not have formal jobs. Less than half of Haiti's population has access to potable water services, and only 4% of the rural population has electricity. With only 2.5 doctors per 10,000 inhabitants, Haiti's infant mortality rate (79 per 1,000 live births) is the highest in the hemisphere, and life expectancy is only 52 years. The adult HIV/AIDS prevalence rate is 5.6%, the highest in the hemisphere. The literacy rate is 52%. Approximately 65% of children between the ages of five and twelve attend school, but only 25% of them complete 6th grade. Forty percent of Haiti's schools have no actual buildings.
Political unrest beginning in November 2003 led to the departure of President Jean-Bertrand Aristide on February 29, 2004, and the establishment of an interim government under Prime Minister Latortue and President Alexandre in March. In April, the Interim Government of Haiti (IGOH) signed a pact with most of the country's political parties and civil society groups which called for elections by the end of 2005. Ensuring that these elections will be free and fair and strengthening the current IGOH to facilitate a peaceful transfer of power are immediate priorities for Haiti.
The IGOH inherited an economy in a state of collapse. The political upheavals of the past two decades have caused serious damage to the fragile Haitian socioeconomic base. The manufacturing sector was depleted during the pre-Aristide embargo, shrinking 40% during that time. By 1994, inflation had risen to 50% per year. Inflation peaked again in the months preceding Aristide's departure, as international reserves fell to dangerous levels. Political violence caused property damage estimated at 5.5% of the gross domestic product (GDP) in 2004. Compounding the economic downturn caused by the political crises, an active hurricane season destroyed entire villages in the southeast, Artibonite, and northwest regions, leaving thousands homeless, the local economies in shambles, and the IGOH's ability to respond with limited capabilities and resources. After shrinking 3% between 1990 - 2002, per capita GDP shrank 4.7% in 2004. Outside observers continue to remark on the ability of the society to endure successive natural and man-made disasters. Resilience is aided by remittances from Haitians living abroad (estimated at $900 million per year) which dwarf the contributions from international donors. In addition, nongovernmental organizations, charitable, and faith-based organizations continue to provide essential financial support to the Haitian population.
The IGOH has shown a strong will for reform; however, faced with limited capacity, weak institutions, and a tradition of corruption, progress continues to be slow. The executive branch is hampered by the absence of a sitting, elected legislative body and thus can only legislate through executive decree, which limits the breadth of its ability to legitimately make changes. Cabinet members have pledged that they will not run for political office during the upcoming elections which, while preserving their integrity in the eyes of the international community, lessens their power over an entrenched civil service, long dependent on systems of personal patronage.
There are some positive indicators to counter-balance the grim picture painted above. Three months after the installation of the Interim Government, the currency stabilized. Haitian exports rose by more than 10% in FY 2004, showing the potential for economic growth. The International Monetary Fund is predicting a growth rate of 3% for 2005 and 2006.
(Excerpted from the 2006 Congressional Budget Justification for Haiti)
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