The Haitian Economy Thread

NALs

Economist by Profession
Jan 20, 2003
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Given the 'new' Haiti is supposedly in the making, I think it's quite prudent to keep track of the economic affairs of our neighbor to the west.

OK, what really motivated me to create this?

Well, for the first time ever, the Haitian economy is not only expected to grow faster than the Dominican economy; it's also going to be among the fastest growing in Latin America, thus the Western Hemisphere, thus again, the world.

Of course the reconstruction efforts is behind this tremendous upsurge, which makes this growth spurt a sort of 'catching up' to its previous level.

But there is a very good opportunity that will arise in this. Haiti right now is receiving a very strong economic push, if the momentum is maintained it can generate a sort of enertia, becoming self-sustaining over the long term; with time leaving behind the 'catch up to pre-earthquake Haiti' to becoming a full 'catching up to the DR and the Developed world' phase.

I definitely got a pair of fingers cross and another pair towards Haiti mimicking the DR when it comes to expectations from the IMF; in other words, always surpass the expected economic growth rate.

In anycase, here are the figures from the IMF starting with 2009 with proyections for 2011 onwards.

CAR050311B-2.gif
 

Kipling333

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Jan 12, 2010
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I imagine the growth is almost entirely contributable to the reconstruction effort and it will take many many years for the growth to be the result of any industry. I also imagine that at least 90% of the population will not be a beneficiary of any GDP growth for years and years and will live in complete poverty . I hope that the monetary aid from overseas can be used in establishing more industries in clothing and food and maunfacturing .. I also hope that the tourist industry , which is a large employer of labour can grow quickly and profitably
 

mountainannie

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Dec 11, 2003
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elizabetheames.blogspot.com
I remember a few years ago when Haiti posted positive growth... and I asked a fairly expert Haitian friend about what accounted for it.. since they had not posted any new export revenue.....nor tourism... and he said that it was the foreign aid workers and MINUSTAH... spending their money on rent and restaurants. It is true that for the next few years... as long as it takes to spend the aid money.. there will be growth in the figures.

will it be sustainable? probably not

but there may be a FEW projects that get funding and actual produce jobs.

ojala
 

NALs

Economist by Profession
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HAITI TEXTILE EXPORTS (FIRST FOUR MONTHS)

For the first time in history, Haiti has surpassed the Dominican Republic in textile exports during a four month period. While the DR's textile exports increased by 5.1% to sum a total of US$189 million, Haiti's had an increase of 69.1% totaling US$204 million. This, along with the high economic growth rate that Haiti has been enjoying lately (see OP), is due to the new preferential treatment Haiti is receiving from the United States after the 2010 earthquake.

Hait? supera RD en exportaciones textiles a Estados Unidos
 

bachata

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They still are in need of help!
<iframe width="420" height="345" src="http://www.youtube.com/embed/I3FhNyF0Kzo" frameborder="0" allowfullscreen></iframe>

JJ
 

bachata

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Yesterday morning I was attending a workshop, a new program to help homeowners to stay out of foreclose, it's not a short sales. is a program that work between the owner and the buyer but the price of the property is significantly reduced so that people who are in a better position can bargain or better said bid in a property that is risk to run on foreclosure...
The name of the program is Hud homes. The thing is that there was food served on a table for a hundred people and we was only 30, the conductor of the conference said at the end who like can take whatever you want as it will be dumped, I couldn't stop thinking in how many people are starving in Haiti and DR.

JJ
 

NALs

Economist by Profession
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Private investments beginning to flow into Haiti...

New Marriott hotel to be built in Port-au-Prince

marriot-puerto-principe-haiti.jpg


US$45 million investment
Will be located in the Haute Turgeau neighborhood
173 rooms (168 rooms + 5 suites)
428 m2 of flexible banquet/business meetings space
150 m2 fitness center
Construction begins in 2012
The grand opening is expected to be in mid-2014.

According Denis O’Brien, president of Digicel: “this will transmit confidence in the perspectives for Haiti and is a very important step in attracting foreign investment, while increasing the lodging capacity of the capital”.

The news article didn’t mentioned how many temporary and long term employment positions this will create. However, since similar hotels in Santo Domingo tend to have between 200 and 400 long term employees, a similar number –most likely higher- could be expected for the Marriott Port-au-Prince.

Link: http://www.caribbeannewsdigital.com...ebutara-en-haiti-con-hotel-en-puerto-principe
 
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bob saunders

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Jan 1, 2002
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BFD! So they are buliding a Marriott. Spending $45 million bucks! It will probably mean 90% goes to engineers salaries who speak French and the Haitians will be paid $3.50 a day. And won't even be let in the door when it is finished.
Der Fish

What's your point? There will be qualified Haitians working in the hotel, and there will be spin off jobs- laundry, food services,...etc.
 

GWOZOZO

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Dec 7, 2011
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BFD! So they are buliding a Marriott. Spending $45 million bucks! It will probably mean 90% goes to engineers salaries who speak French and the Haitians will be paid $3.50 a day. And won't even be let in the door when it is finished.
Der Fish

HEIN????? do you know anything about Haiti????
 

NALs

Economist by Profession
Jan 20, 2003
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This is not really 'new,' but it is Dominican investment in Haiti.

First the biography:

Fernando An?bal Capell?n Peralta
Fernando Capell?n is President and Chief Executive Officer of Grupo M industries, a textile corporation founded in 1986 as a simple cut-sew operation. To date, Grupo M includes five garment factories with a workforce of 9,800 employees.

Through his leadership, Grupo M has established and maintained a prestigious customer portfolio, with high-profile clients including Levi's, Liz Claiborne, Polo Ralph Lauren, Perry Ellis, Dillards, HanesBrands, Calvin Klein, DKNY, VF, Old Navy and more.

Known for his promotion of the Dominican Republic and its citizens, Mr. Capell?n fosters an employee-friendly work atmosphere and offers a variety of quality-of-life benefits including free transportation, savings and loans programs, a medical center with dental services and a clinical laboratory, industrial safety programs, sports, family-friendly recreational activities, reforestation programs, child care, and more. Grupo M was the first Latin American company to be honored with the Corporate Social Conscience award by the Council on Economic Priorities.

Mr. Capell?n is a member of the Association for the Development of Santiago, the American Chamber of Commerce, former President of the Association of Industrial Free Zone of Santiago and former President of the Dominican Association of Free Zones. He is a on the board of directors of Cibao International Airport and Hospital Metropolitano de Santiago, and a member of the Executive Committee of the National Council of Private Enterprise.

Mr. Capell?n has a bachelor's degree in industrial engineering from Pontificia Universidad Cat?lica Madre y Maestra.

Then the preview:

<iframe src="http://fora.tv/embed?id=12172&type=h" width="400" height="260" frameborder="0" scrolling="no" webkitAllowFullScreen allowFullScreen></iframe><p><a href="http://fora.tv/v/12172">Peralta: The Codevi Apparel Initiative in Haiti</a> from <a href="http://fora.tv/partner/Fairchild_Fashion_Media"> Fairchild Fashion Media</a> on <a href="http://fora.tv">FORA.tv</a>​
 

GWOZOZO

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Dec 7, 2011
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The little Codevi plant will run into trouble as the South Koreans are building a huge assembly zone on the north coast.

Unlike the Codevi plant which is very unpopular with Haitians, the north zone will be truly inside haiti and will use haitian ports and contribute to improving the infrastructure in the area.

The Codevi plant simply uses haitian labor for final assembly in order to get part of Haiti's quota. It really does not contribute anything lasting to the haitian economy.
 

NALs

Economist by Profession
Jan 20, 2003
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The little Codevi plant will run into trouble as the South Koreans are building a huge assembly zone on the north coast.

Unlike the Codevi plant which is very unpopular with Haitians, the north zone will be truly inside haiti and will use haitian ports and contribute to improving the infrastructure in the area.

The Codevi plant simply uses haitian labor for final assembly in order to get part of Haiti's quota. It really does not contribute anything lasting to the haitian economy.
Yes, I remember when Codevi opened there were protests against the company, mostly due to Haitian media manipulation of the situation. But, the Haitians that currently are able to take home a steady paycheck to feed their families, thanks to Grupo M, are not really the ones complaining or wishing for Codevi to go away. There are probably more than a few residents of Ounaminthe that were not lucky enough to get a steady job at Codevi that probably wish someone would lose their job at this plant so they can take their place and feed their family, or at least for more similar job positions to be created in their area.

Some people claim that this was orchestrated mostly due to the investors being Dominicans, but maybe you know the situation much better and can clarify this here.

As for the Korean plant(s), where would they be? Near Cap Haitien?

I hope Haitian authorities keep a very close eye on the Koreans, since on the Dominican side they have a reputation for being a little too harsh with their employees.

Bring a link of the article to this thread, that's what this thread was created for.
 
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NALs

Economist by Profession
Jan 20, 2003
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The CEPAL is now projecting a 6% real growth rate for Haiti, making the country the second fastest growing economy in Latin America. Panam? leads the pack with 8%, while the DR is expected to grow 4.5%.

If Haiti manages to the turn the growth rate for this year into its yearly average over the long haul, I calculate that its real GDP would double every 9 years.

Haiti is now growing at pace that is 1.5 percentage points faster than the DR, 2.3 percentage points ahead of the Latin American average and 4.1 percentage points above the average for the Caribbean.

crecimiento-pib-cepal.jpg


Note: The CEPAL's proyection for 2012 is 2.5 percentage points less than what the IMF projected in 2011. See OP. Considering the international crisis, not bad.
 
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