Archive - Jan 30, 2010
For Haiti's Long-Term Growth, Look to Business
For aid workers and development experts, simply restoring Haiti to its pre-quake conditions will not be enough. Even before the earthquake about half of the population did not have access to clean water and 90 percent of children suffered from water-born illnesses, reported PRI.
What will it take for conditions to improve? Many argue that a robust private sector will be a key part of the country's long-term recovery and ascent out of poverty. As New York Times columnist Nicholas Kristof opined, "Haiti desperately needs new schools and hospitals, but also new factories." The government services and infrastructure that NGOs and development agencies will help rebuild may provide the groundwork for a healthy economy, but their efforts cannot by themselves make it grow.
The country actually has several factors that amount to unusually good conditions for economic development, argued a report for the UN last year. Unlike many disaster zones, Hait's neighboring countries are stable, while its political leadership "is good by the standards of most post-conflict situations." Haiti's wealthy expatriate community in the U.S. and Canada funnel cash and investments there. (They contributed approximately $1.3 billion in 2008.) Some types of investment look particularly auspicious: Haiti's special trade agreements with the U.S. mean it can export goods there duty-free, making the country "the world’s safest production location for garments," while the labor it would provide manufacturers is the cheapest in the region. Significant barriers to economic growth remain, but Haiti has some often-overlooked advantages in the struggle to recover.
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