Had not seen this post when the brief on Codevi getting its first Chinese company was included in today's DR1 news digest.
But this news of Chinese investment in Haiti shared by NALS is even bigger. It could mean many more manufacturers will follow the first company. Creating work for Haitians in Haiti is the best that can happen for the Dominican Republic.
In 2007 I was in Hong Kong for a TCI Competitiveness Institute conference and after learning about China’s development boom from the presentations, including many by University of Kong Kong professors, I concluded that the DR should negotiate switching our vote from Taiwan to China in exchange for convincing China to get heavily involved in developing industry in Haiti. I shared this proposal with then President Leonel Fernandez through economist Freddy Emam Zade, who at the time was executive director of Funglode.
I figured China was the only country that could make a big enough impact in Haiti to impress the government and the Haitians. In China I had visited Shenzhen with the TCI group and heard the stories of the 30,000 inhabitant rural village that had in few years become one of largest manufacturing centers in the world once it was designated a special economic zone. But more important, I felt the Chinese by moving in big were especially fit to find their way around the traditional lack of governance in Haiti.
From what NALS points out, and the fact that Codevi has lured the first manufacturers, China is clearly testing the waters in Haiti, and without us having to give our vote. There is a precedent in Africa, as observed by other DR1 Forum posters.
This lead me to read about China in Africa. From a Brookings Institute paper, I learn insights to the economic reasons that may explain the move to Haiti:
"... The working-age population in China has peaked and will shrink over the coming decades. This has contributed to a tightening of the labor market and an increase in wages, which benefits Chinese people. Household income and consumption are also rising. Compared to past trends, China’s changing pattern of growth is less resource-intensive, so China’s needs for energy and minerals are relatively muted. At the same time, China is likely to be a steady supplier of foreign investment to other countries, and part of that will involve moving manufacturing value chains to lower-wage locations." This is from:
https://www.brookings.edu/blog/orde...cord-straight-on-chinas-engagement-in-africa/
Extrapolating to Haiti… If the Chinese move their manufacturing value chain to Haiti as a lower-wage location they will be taking advantage of Haiti’s location-location-location for a win-win situation.
You can talk about labor exploitation all you want… but Chinese money will bring jobs to Haiti. Probably the Chinese can learn from their better experiences in Africa and apply those lessons learned to Haiti. The western world will be looking closer at Haiti probably than at Africa. Working with Codevi, the Chinese seemingly are starting to test the waters with a company that has been working there for years.
Another plus… The changes in Canadian preferential tariffs to allow joint operations in Haiti (as a Least Developed Country) and the Dominican Republic is also excellent news that Chinese manufacturers can also take advantage of, probably another reason for the Chinese move to Haiti.
Fingers crossed this could be the break through Haiti has just needed.
The new capital, enterprise development and investment the Chinese will bring could possibly open doors for the highly prepared diaspora of Haiti to find opportunities to return to their country and also make vital contributions in better governance and thinking of the collective good for Haiti. Steering the Chinese to areas that are environmentally friendly, not to mining that would further destroy the environment.
What is good for Haiti is great for the DR.