Haiti

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Development Challenge Other Donors FY 2002 Program Activity Data Sheets Summary Tables Program Summary Strategic Objective Summary USAID Search: Haiti Previous Years' Activities 2001, 2000, 1999, 1998, 1997 12     Introduction U.S. interests in Haiti are to promote democracy, decrease narcotics trafficking to the United States, and reduce the number of illegal migrants reaching U.S. shores. USAID assistance supports these foreign policy objectives by alleviating poverty while reinforcing the foundations for a democratic society. Specifically, the USAID program seeks to increase incomes of the poor, slow environmental degradation, improve educational performance, reduce fertility, infant and child mortality and malnutrition, and to strengthen civil society as the foundation for building democracy in Haiti. The flawed parliamentary elections in May 2000, followed by a boycotted Presidential election, discouraged Haitians and outsiders alike who had hoped that the thwarted hopes of the past would be succeeded by a democratically elected government and economic revival. Instead, rising political tension, common crime, growing insecurity, economic stagnation, and a lack of serious government engagement in meaningful economic reform continue to be the norm. The Aristide Government was installed in February 2001 with promises of reconciliation and economic progress. Those promises will be hard to honor until the current political impasse is resolved and support from the international community is re-established. The Development Challenge Haiti is one of the poorest countries in the world and the poorest in the hemisphere. Sixty-five percent of its citizens live below the absolute poverty line. Despite Haitian pride in sending children to schools, illiteracy rates are 48%. Fertility rates remain high, as does malnutrition among children under age five. It is no surprise that the country has the highest infant, child and maternal mortality rates in the hemisphere and the lowest life expectancy. Officially, economic growth is reported to be 1.2% but in reality the economy is stagnant. Much-needed private foreign investment continues to be negligible, and the banking sector is in distress. A worrisome loosening of fiscal controls, due in part to the need to finance the presidential elections, has spurred inflation, now hovering around 15%. Haiti has the lowest per capita income in the region. With a per capita debt of $149, Haiti was among the lowest per capita debt countries-and did not qualify for debt relief last year. Other countries like Bolivia ($549), Nicaragua ($1,287), and Tanzania ($195), among others, have a much higher per capita debt ratio. Haiti's debt to the U.S. Government (USG) accounts for 1.2% of their overall external debt. The amount owed to the USG was $13.7 million as of September 2000 -- accounts for only 1.2% of its total external debt of $1.17 billion, which was virtually unchanged from FY 1999. The current political impasse makes it extremely difficult for the Government of Haiti (GOH) to provide basic services to its citizens and bring about meaningful reform. Civil society, while growing in influence, remains too weak to be an influential advocate for an independent judiciary, a professional police force, privatization, and other badly needed reforms. Despite the unfavorable political environment, USAID investments continue to deliver positive results. The provision of financial services to microenterprises has expanded significantly and the microcredit program has been successful: the value of loans increased 47% this year and USAID's program triggered the adoption of microcredit programs by three Haitian private financial institutions. Targets for increased crop production and artisan sales were surpassed. Over 30,000 farmers are now directly involved in export marketing of mangoes, coffee and cacao. Nearly 246,000 farmers are planting trees and using other conservation structures to preserve the environment and regain use of what was unproductive land. Health conditions among rural and less-educated populations improved substantially. The steady decline of both infant mortality and under-five mortality continued its five-year trend. At the same time, reliance on modern contraceptive methods continues to increase steadily at a rate of about one percent per year. Students in USAID-supported primary schools continued to outperform other students. Likewise, results with the distance (radio) education program have been impressive. Despite disappointing developments in elections and ensuing political crises, strides were made in strengthening civil society. Over 22,000 Haitians observed the May election, for the first time, as members of a domestic monitoring organization. Organizations receiving USAID training and technical assistance score higher on an index that measures the ability and preparedness to advocate the government for change. Despite a delayed start-up, USAID's Hurricane Georges Recovery Program (HGRP) achievements have been highly encouraging. All activities -- including natural resources management, irrigation, potable water systems, roads, and community preparedness -- will be completed by Decemeber 2001. The unusully strong involvement of beneficiaries bodes well for the long-term sustainability of activities carried out under this program. Given the magnitude of the problems in Haiti, coupled with uncertainties surrounding the current political crisis, no specific time frame can be established for graduation from development assistance Other Donors As a result of the unfavorable political climate in Haiti, donor grants declined from $293 million in FY 1996 to $256.8 million in FY99 and $209 million in FY00. Gross loan disbursements tapered off from $121.5 million in FY 1996 to $103 million in FY99 and $50.9 million in FY00. As a result, net funds disbursed by the GOH through public channels declined by more than 46% between FY 1996 and FY 2000. During FY 2000, the United States was by far Haiti's largest disbursing donor contributing $79.8 million in aid. The second largest donor was the Inter-American Development Bank with $44 million in grants, followed by the World Bank with $25.6 million. Canada and the EU gave $16.4 million and $14.9 million respectively. Other major donors included the United Nations agencies, France and Japan. The International Monetary Fund has a Staff Monitiored Program in place to improve fiscal control and reduce inflation but did not disburse funds in FY 2000. FY 2002 Program USAID's resources will continue to focus on the needs of rural Haiti where 65% of the people live. To ensure the achievement of results across the portfolio, USAID will reorient the program slightly to build on successes and promote cost-effective programs such as microfinancing, integrate food assistance into USAID's health and education programs, and refocus the education program. USAID health programs will benefit about $4.7 million people. With activities devoted to HIV/AIDS and tuberculosis, the program will help reduce infectious and sexually transmitted diseases significantly. In light of past migration patterns, this investment is likely to have a positive impact on the United States as well. Funds will also be used to enhance agricultural productivity and empower small and micro-entrepreneurs, thereby expanding economic growth and private sector job creation. USAID activities will strengthen civil society advocacy ability to resolve local problems and help forge a constituency for judicial reform. USAID activities will additionally support efforts to improve the quality of primary school instruction and administrative efficiency. P.L. 480 Title II food commodities, a portion of which will be monetized, will help achieve greater food security. Food-supported activities (e.g., in education) will also be used to buttress strategic objectives elsewhere in the USAID portfolio. Activity Data Sheets 521-001 Sustainably Increased Income for the Poor 521-002 Environmental Degradation Slowed 521-003 Healthier Families of Desired Size 521-004 Increased Human Capacity 521-005 Genuinely Inclusive Democratic Governance Attained 521-009 Hurricane Georges Recovery Country Background Information Resources   CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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