Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Haiti Previous Years' Activities 2002, 2001, 2000, 1999, 1998, 1997 Last updated: Wednesday, 29-May-2002 18:51:34 EDT

THE DEVELOPMENT CHALLENGE: With a heavily eroded natural resource base, inadequate infrastructure, and ineffective public institutions, Haiti is the poorest country in the Western Hemisphere. Maternal and infant mortality rates are among the highest in the world, and malnutrition rates are very high. Illiteracy stands at 48%, and 6% of urban dwellers are infected with HIV/AIDS. With unemployment hovering at around 50%, some poorer Haitians take their chances on the high seas, hoping to secure a better life elsewhere.

The country's deteriorating economy is an enormous constraint to progress: both exports and imports dropped around 3% in 2001; inflation is at 16%; and the currency has lost 15% of its value relative to the U.S. dollar in the past year, 32% since 1999. Foreign direct investment was a paltry 0.1% of gross domestic product in 2000 and net international reserves of the Central Bank currently stand at less than $100 million.

Conditions in the country have worsened considerably since May 2000, when flawed local and parliamentary elections left opposition parties outraged and the international community alienated. Tremendous efforts have been expended by the Organization of American States and other international actors over the past 20 months to mediate the conflict, but an accord remains elusive. In the meantime, the executive branch has moved steadily to consolidate power at the expense of the judicial and legislative branches of government. Especially worrisome has been a sharp deterioration in the human rights situation, particularly since the government adopted an official policy of "zero tolerance" for "criminals".

The international community has responded by either sharply reducing assistance programs or eliminating them altogether. In 2000 the World Bank closed its office in Port-au-Prince, principally as a result of the government's failure to adhere to International Monetary Fund targets. The European Union (EU) disbursed about $13 million in FY 2001 but froze another $54 million intended for rural roads and education. The Inter-American Development Bank is delaying the disbursement of up $146 million in outstanding loans to Haiti, largely due to issues surrounding the legitimacy of parliament, which must ratify the loans. U.S. assistance levels have been curtailed since FY 1999 and programmatic changes made in response to deteriorating conditions in the country.

However, USAID programs continue to make a tangible difference:

• 50,000 Haitians, mostly women, have access to microcredit due to USAID assistance;
• child immunization rates in USAID-assisted areas are nearly double the national average;
• childhood malnutrition rates in USAID-assisted areas fell from 32% to 22% between 1995 and 2000;
• the proportion of women nationwide seeking prenatal consultation rose from 68% in 1995 to 79% in 2000;
• interactive radio instruction has improved achievement scores in USAID project schools;
• civil society groups continue to exercise their political rights and participate in the political process, despite systematic attempts to repress them.

On a per capita basis, Haiti is among the least-indebted countries. The amount owed to the United States is approximately $9.8 million as of September 2001, about 0.8% of Haiti's total debt; however, the Government of Haiti has difficulty servicing this debt. At last report, Haiti's total external debt was $1.2 billion, or about 27% of GDP.

THE USAID PROGRAM:

The Program Data Sheets that follow cover the four strategic objectives for which USAID is requesting funds in FY 2003: promoting sustainable agricultural practices and increasing economic opportunities for farmers and microentrepreneurs; improving families' health; improving the quality of basic education; and strengthening organizations critical to democracy. These programs will be active in FY 2002 but have had to be modified somewhat in response to changing conditions on the ground. For example, programs that formerly provided direct support to the country's judicial and electoral systems have been replaced by activities aimed at strengthening civil society, independent media, and political parties. Health programs command more than half of the assistance budget, mainly to address HIV/AIDS. Based on the recommendations of an evaluation, PL 480 Title II resources will be focused more directly on nutritional programs directed at segments of the population that are at the highest risk nutritionally (children under five, pregnant and lactating mothers, and groups with special health needs such as tuberculosis and AIDS patients and orphans). Changes to the USAID portfolio stemming from reduced funding and changes in the country's political-economic situation are scheduled for review in May 2002.

With the exception of HIV/AIDS programs, all USAID assistance is provided to indigenous non-governmental organizations through U.S. contractors and private voluntary organizations. No assistance is provided directly to the central government, although there is frequent and substantive interaction in the health and education sectors.

FY 2002 funds will be used to implement ongoing activities in economic growth, democracy and HIV/AIDS prevention. FY 2003 funds are requested to enable continuation of ongoing activities and to serve as a bridge to a new country strategy for FYs 2004-2009.

ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED:

OTHER PROGRAM ELEMENTS: Under a grant to Partners of the Americas, the Farmer-to-Farmer project brings volunteer farmers from the U.S. to Haiti to provide technical assistance and training to agricultural cooperatives and rural enterprises on crop production, processing, post harvest handling, and marketing to increase both income and productivity of small farmers. About $2.5 million is being provided under Child Survival grants (Project Hope, Focus, and Population Services International) to improve access to and use of child health services and promote social marketing efforts. These grants are managed by the Bureau of Global Health. An estimated $6 million will be provided through the Departments of Health and Human Services, Labor, and Agriculture to finance HIV/AIDS prevention, agriculture, infrastructure repair, and disaster mitigation activities.

OTHER DONORS: Donor grants declined by more than 50% over the last two years, from $357 million in FY 1999 to about $160 million in FY 2001. Gross loan disbursements fell by more than 66% during the same period. With $67 million disbursed in FY 2001, the U.S. was Haiti's largest donor, followed by Canada (health, justice, education, food), Taiwan (roads, education, social housing, agriculture), and the EU (rural roads, education, food). Other key donors include the United Nations agencies, France, and Japan.

Program Data Sheets

• 521-001  Sustainable Increased Income for the Poor
• 521-003  Healthier families of desired size
• 521-004  Increased human capacity
• 521-005  Genuinely Inclusive Democratic Governance Attained

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