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USAID Information:
External Links:
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Haiti
The Development Challenge: Haiti is the poorest country in the Western Hemisphere. The country’s socio-economic profile resembles those of the most destitute nations in the world. Life expectancy is 53. Literacy ranges between 48%-52%. Average annual per-capita income hovers around $400. Income distribution leaves 76% of the population living below the poverty line. Formal employment accounts for barely 200-250,000 jobs in a non-farm labor force of some 2,000,000. Rural Haitians seek non-existent jobs in the urban areas. The country’s population of eight million could double by 2040. Desperate Haitians take to the high seas or flee into the Dominican Republic hoping to secure a better life. Annual remittances of $900 million appear to be a significant factor in surviving otherwise intolerable conditions.
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Haiti's economy stagnated in FY 2003. GDP increased by only 0.7%, a decline of 1.3% per capita. Exports increased by 6% and imports by 10%. Inflation was 42% in 2003. Foreign direct investment was 1% of GDP in 2003 and net international reserves are $42 million, barely enough to cover two weeks' imports. One bright spot is exports (mainly apparel and textile), which have increased significantly to the United States, Haiti's largest trading partner.
The political impasse caused by fraudulent parliamentary elections in 2000 is entering its fourth year. The executive has consolidated power at the expense of the judicial and legislative branches. 2003 witnessed an increase in human rights violations, suppression of dissent and concerted efforts to intimidate the independent media. There are mounting protests throughout the country and calls for President Aristide to resign. Private investment has almost ceased, due to a lack of confidence both in the political process and the ability of the state to uphold the rule of law. At the same time, international financial institutions that had reduced or terminated their programs have begun to re-engage with the Government of Haiti (GOH). Since the Government cleared its arrears to the Inter-American Development Bank (IDB) in July, the IDB has activated almost $196 million in suspended loans, and approved another $200 million in new loans. Furthermore, there has been progress toward completion of a twelve-month IMF Staff Monitored Program (SMP).
The USAID Program: U.S. foreign policy objectives in Haiti to decrease narcotics trafficking, strengthen democracy, provide humanitarian assistance and stem the flow of illegal migrants -- will be
more fully achieved if and when the GOH complies with the terms of OAS Resolution 822, and free and fair elections subsequently occur. In the meantime, USAID will continue programs designed to meet essential needs, fight the scourge of HIV/AIDS, generate employment, and strengthen civil society’s ability to resist authoritarianism. USAID will support self-help efforts and income generation, education, improvement in health and nutrition and, with the initiation of the President’s Emergency Plan for AIDS Relief (PEPFAR), a significant scaling-up of HIV/AIDS activities.
In health, USAID has built a network of some 29 local nongoverment organization (NGO) service providers to reach approximately one-third of Haiti’s population (2.6 million people) with basic primary care and child survival services. This extensive network will continue to increase access to a broad range of health services and a mix of modern family planning methods, including an expanded, very effective, natural family planning program and maternal health care. This NGO network is enabling the rapid scale-up of HIV/AIDS activities by combining USAID implementation experience and lessons learned with the Center for Disease Control's (CDC) expertise in laboratory services and applied research. Integration of health service delivery with PEPFAR activities ensures that the overall network will be strengthened and increases the potential for sustainability. USAID will also increase focus on service delivery to the periurban areas of Port-au-Prince where there is a high incidence of infectious diseases. In addition, USAID is pursuing new partnerships with faith-based and other volunteer health organizations interested in assisting Haiti. A USAID-sponsored Health Summit held in 2003 demonstrated that such partnerships had the potential to greatly expand health service delivery.
In the economic growth area, USAID continues to consolidate past gains in the production and export of high-value fruit and tree crops which are yielding significant increases in small-farmer income as well as protecting the hillside environment. Last year these programs increased the revenues for more than
35,000 farmers of targeted crops, increasing farm gate prices by as much as 44% in the case of mangos. In addition, USAID is assisting Haitian artisans to regain their predominant position in the Caribbean for marketing and exporting handicrafts. USAID will continue to expand a micro-lending industry that is now serving nearly 80,000 borrowers, more than 80% of whom are women.
USAID’s assistance in education is focused on improving the quality of primary education through up-grading the skills of teachers and school directors, providing materials and equipment and strengthening NGOs, community schools and parent/teacher associations. To improve performance in reading and math in grades 2, 3 and 4, USAID has employed interactive radio instruction. In FY 2004 USAID will begin a program for out-of-school youth, estimated at more than 50% of the population aged 15-20, to help them obtain basic education and job skills training.
In democracy USAID is strengthening the independent media and expanding a community radio network that broadcasts civic awareness and other education programs. The project building coalitions for judicial reform has been expanded to incorporate human rights promotion objectives and the program for developing political parties has gained momentum after a slow start. USAID will continue activities designed to help Haitian society withstand authoritarianism, and to demand accountability and better performance by their government. In addition, in FY 2003 we began anti-corruption activities by helping to establish a local affiliate of Transparency International, and a project to combat trafficking of children.
USAID also administers a large P. L. 480 Title II food program which is critical to meeting humanitarian needs and reducing food insecurity in the economically hardest-hit areas of the country. Food is distributed through maternal child health facilities to children under five, nursing and/or pregnant mothers and children enrolled in primary schools. In addition to direct food distribution, the program monetizes a portion of the food commodities and uses the proceeds to finance projects in health care, primary education, agriculture, and provide a safety net for orphans, the elderly and physically disabled. These programs are managed by CARE International, Catholic Relief Services, Save the Children and World Vision. USAID intends to further integrate the Title II program into the overall portfolio to better align food assistance resources with overall program goals and to track the contribution of Title II to development-oriented results as well as those that are more humanitarian in nature.
Other Program Elements: Centrally funded programs include the Cooperative Association of States for Scholarships (CASS) which will send 18 students in FY 2004 to the U.S. to study in fields that complement USAID's objectives. HIV/AIDS activities previously funded through central mechanisms will be expanded under under PEPFAR. USAID/Washington provided support for a Cross-Border Initiative in FY 2003, designed to reduce socio-economic tensions among the communities along the border between Haiti and the Dominican Republic, resulting from the out-migration of Haitiens as they try to escape the economic hardships in Haiti. This program will be continued in FY 2004 and FY 2005.
Other Donors: The United States Government was the largest donor in FY 2003, providing over one-third of all humanitarian and development assistance to Haiti. The United Nations, Taiwan and Canada are other major contributors. Payment of IDB arrears freed nearly $400 million in loans and new credits. If the GOH adheres to the SMP and clears its World Bank arrears, Haiti will be eligible for an IMF credit of $162 million. The World Bank could then reengage with programs in health, education, and poverty mitigation in FY 2005. The European Union currently has an approximate pipeline of $300 million that would be available to Haiti if the terms of OAS Resolution 822 were satisfied.
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