The Light at the End of the Tunnel?

NALs

Economist by Profession
Jan 20, 2003
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Well, its not everyday that news about Haiti put a smile on my face, but I'm perfectly aware something might happen to dampen that a little (or a lot.) Fingers crossed it doesn't!

China is going to invest some US$30 billion in infrastructure in Haiti. This seems serious. Its definitely what they need (if the politicians can keep their hands out of the cookie jar, again fingers crossed.)

Improvements in infrastructure will have a tremendous impact on the economic development over the long term. That means jobs, lots and lots of jobs; not to mention new business opportunities.

http://www.huffingtonpost.com/entry/china-extends-her-silk-road-to-haiti_us_5984927ae4b0bd8232029723
 

Fulano2

Bronze
Jun 5, 2011
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Let's hope for the best. How long will our Chinese friends stay for maintenance?
 
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the gorgon

Platinum
Sep 16, 2010
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I don't mean no harm, but somethin just doesn't smell right here.

of course it does not smell right. Jamaica has the same kind of arrangements with the Chinese, in which they undertake infrastructure projects. remember that there is the little matter of a bidding process, but while local firms are bidding with private equity, the Chinese are bidding with sovereign funds. yes, government money. unlimited amounts. local firms cannot compete.

and forget all this labor. the Chinese demand that 50% of the labor content has to be Chinese, yet Jamaicans who study the situation say that nearly all the labor is brought in from China. couple that to all the concessions, and tax breaks, and final ownership of the revenue streams, such as tolls, and it might not be such a great idea after all.
 

Kipling333

Bronze
Jan 12, 2010
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China has got a good history of providing infrastructure aid to many countries in Africa and their influence there has grown because of it . The countries they assist are poor and I see help to Haiti as a natural extension and , as in Africa, I think we will see a Chinese presence . In my view ,China will replace the American influence in Haiti and I hope it will give impetus to their economy which may, in turn, lead to fewer Haitians wishing to leave their home country.
 

ctrob

Silver
Nov 9, 2006
5,591
781
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I don't mean no harm, but somethin just doesn't smell right here.



It's like buying a distressed property in a good neighborhood. You put money into it and hope for a return.

As to the bidding process, it's their money. They, the Chinese, can do what they want. If they want to slant the bidding process in favor of chinese firms so be it. It's no different than a private investor coming in and awarding contracts.

It may be a gov't entity, but it aint the Haitian gov't. Big difference. It's not Haitian tax dollars we're talking about here. In the end, it's still good for Haiti.
 
Jan 7, 2016
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Just what Haiti really needs...an influx of Chinese Food Buffets...the place will be in the same strata as New Jersey and Orlando!
 

the gorgon

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Sep 16, 2010
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It's like buying a distressed property in a good neighborhood. You put money into it and hope for a return.

As to the bidding process, it's their money. They, the Chinese, can do what they want. If they want to slant the bidding process in favor of chinese firms so be it. It's no different than a private investor coming in and awarding contracts.

It may be a gov't entity, but it aint the Haitian gov't. Big difference. It's not Haitian tax dollars we're talking about here. In the end, it's still good for Haiti.

which means, in summary, that the Chinese will reap the loaves, and the Haitians will get the crumbs. that does not look to me like the light at the end of the tunnel.
 

windeguy

Platinum
Jul 10, 2004
42,211
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The Chinese did a lot of work on trains.

As for Haiti, they need a really big light.

Perhaps Trump will be able to get his shirts and ties made in Haiti.
That would be ironic after the dismal failures there of the Clinton Foundation.
 

CristoRey

Welcome To Wonderland
Apr 1, 2014
11,715
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Chinese contracts go to Chinese firms who have a tendency to employee
Chinese workers. If my memory serves me correct, the USA (Clinton Admin)
did the exact same thing in the past with Haiti, only they used American
contractors, not Chinese.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
23,097
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South Coast
Today's DR1 news:

First Chinese factory in Haiti
A People’s Republic of China company, Everbright Headwear is the first Chinese free zone operation to be located in Haiti. It was inaugurated by Grupo M, the Dominican company that manages the free zone industrial park of the Industrial Development Company SA (CODEVI) free zone on the border in Ouanaminthe on over 600,000 m2 on the border with Haiti, as reported in Haiti Libre. The factory will manufacture baseball caps for US Major League Baseball teams. Once fully operational, the plant will have capacity to produce three million caps a year. It employs around 1,500 Haitian and Dominican workers.
https://www.haitilibre.com/en/news-2...-in-haiti.html
 

NALs

Economist by Profession
Jan 20, 2003
13,369
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Among the many construction projects the Chinese could build in Haiti, something like this highway they built in Jamaica could be in the works (or maybe an entire modern highway network.) Many people don't realize the positive effects a modern highway can have on the overall economy of a place.

This highway was inaugurated last year. From my understanding, the very first modern highway in Jamaica.

[video=youtube;c71mGFwRX0E]https://www.youtube.com/watch?v=c71mGFwRX0E[/video]
 
Aug 6, 2006
8,775
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The Chinese did a lot of work on trains.

As for Haiti, they need a really big light.

Perhaps Trump will be able to get his shirts and ties made in Haiti.
That would be ironic after the dismal failures there of the Clinton Foundation.

Trump has far too much on his dancecard to mess with Haiti, which has never drawn his attention previously.

I am still waiting for him to publicly execute all the Thanksgiving turkeys that President Obama pardoned, just out of spite.
 

Naked_Snake

Bronze
Sep 2, 2008
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which means, in summary, that the Chinese will reap the loaves, and the Haitians will get the crumbs. that does not look to me like the light at the end of the tunnel.

Yeah, it doesn't bode well at all, specially since them Haitians have a history of being extremely restrictive regarding foreign investment/ownership of property post independence. It's one of the things that have contributed to their current state by a mile.

Miguel Ceara-Hatton, one of the leading economists here, proves in a recent paper that the IMF and the World Bank are wrong when they trace the divergent economic path of both countries on the island from the 1960's onwards, when in fact it happened a lot earlier, degree of openness to foreign trade being among the factors in play:

https://www.pucmm.edu.do/investigacion/Documents/Pesquisa-vol2-FINAL-hojas-sueltas.pdf
 

the gorgon

Platinum
Sep 16, 2010
33,997
83
0
Yeah, it doesn't bode well at all, specially since them Haitians have a history of being extremely restrictive regarding foreign investment/ownership of property post independence. It's one of the things that have contributed to their current state by a mile.

Miguel Ceara-Hatton, one of the leading economists here, proves in a recent paper that the IMF and the World Bank are wrong when they trace the divergent economic path of both countries on the island from the 1960's onwards, when in fact it happened a lot earlier, degree of openness to foreign trade being among the factors in play:

https://www.pucmm.edu.do/investigacion/Documents/Pesquisa-vol2-FINAL-hojas-sueltas.pdf

this is where you get to come in and share your wealth of knowledge of the history and culture of the region. some in depth understanding would be helpful at this stage, and you are the man...
 

K-Mel

Member
Apr 15, 2012
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When Chinese invest their money into a country or a region it's not for free. It is a way to spend their financial empire ( 5 out of the 10 largest banks in this world, in terms of Assets are Chinese), and control countries. In Africa they started their strategy by sending their people in Algeria (mostly workers, and many being jail birds). A lot of them are still living in that North African country. But it was a strategy to spread their influence in North African "Arab" countries, and the muslim (and francophone/French speaking) world of North Africa, and out of all investing in that country's natural resources (very wealthy in the South).

However Algerian being "communists" never really allowed them to spend or invest their money into their natural resources (Gas, Oil) but left them mostly with the "services" (like building industry, technology etc).

Investing their money in new and poor countries, opens new markets for their own products (Chinese selling their outputs to the locals), and it is also a way to take advantage of the natural resources (if any). Actually it is a kind of imperialism but rather based on their financial assets to take advantage of poor countries , and replace the ancient colonizers influences into Africa.

I guess on Haiti's specific case, their don't have nothing to lose, still better than nothing
 

the gorgon

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Sep 16, 2010
33,997
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When Chinese invest their money into a country or a region it's not for free. It is a way to spend their financial empire ( 5 out of the 10 largest banks in this world, in terms of Assets are Chinese), and control countries. In Africa they started their strategy by sending their people in Algeria (mostly workers, and many being jail birds). A lot of them are still living in that North African country. But it was a strategy to spread their influence in North African "Arab" countries, and the muslim (and francophone/French speaking) world of North Africa, and out of all investing in that country's natural resources (very wealthy in the South).

However Algerian being "communists" never really allowed them to spend or invest their money into their natural resources (Gas, Oil) but left them mostly with the "services" (like building industry, technology etc).

Investing their money in new and poor countries, opens new markets for their own products (Chinese selling their outputs to the locals), and it is also a way to take advantage of the natural resources (if any). Actually it is a kind of imperialism but rather based on their financial assets to take advantage of poor countries , and replace the ancient colonizers influences into Africa.

I guess on Haiti's specific case, their don't have nothing to lose, still better than nothing

you mentioned one fact that is often overlooked. the workers that China sends to other countries are mostly convicts, who are made to work free , in order to work off their sentence.
 

Dolores1

DR1
May 3, 2000
8,215
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www.
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.
 

the gorgon

Platinum
Sep 16, 2010
33,997
83
0
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.

Dolores...whew!!

thanks for those insights, and thanks for the link.

let me take this in..