Haiti, with a population of 8 million, is the poorest country in the Western Hemisphere. Eighty out of 1,000 children never see their first birthday, and one-half of Haitians over 16 cannot read. As much as 80 percent of the population lives in poverty. A heavily eroded natural resource base and the spread of HIV/AIDS, which now afflicts more than 5% of the population, compound the problems. The political impasse, stemming from flawed parliamentary elections in 2000, persists. Investment has been discouraged by a lack of confidence both in the political process and the ability of the state to uphold the rule of law.
The country’s direction now depends largely on whether the government can establish a climate for free and fair parliamentary elections in 2003 and secure the participation of Haiti’s opposition parties, many of which boycotted the election of President Aristide in November 2000. In addition to the dismal social indicators enumerated above, the country’s economy appears to be deteriorating at an ever-increasing rate. Exports and imports dropped by around 9.6% and 8% respectively in 2002, inflation stands at 10%, and the currency has lost 14% of its value relative to the U.S. dollar in the past year after falling 16% in 2001. GDP dropped by -1% (therefore by -3% per capita). Foreign direct investment was 0.3% of GDP in 2001, and net international reserves now stand at less than $50 million, barely enough to cover two week’s imports.
U.S. foreign policy interests in Haiti are poverty alleviation, democracy strengthening, decreasing narcotics trafficking, and limiting illegal migration. USAID/Haiti program directs its resources to the poorest elements in Haitian society. Activities focus on health improvement, employment, self-help, and income generation, all of which have a direct bearing on U.S. policy interests. The functional deterioration of Haiti’s government has dictated the need for USAID to change its program significantly in recent years, halting direct support to public institutions and increasing involvement at the grass roots level.
USAID has had to quickly alter its program to accommodate changing, politically driven circumstances and a significant reduction in resources. In spite of program shifts, the Mission has met its targets in all sectors, although progress in politically sensitive areas, such as support for political party development, has been understandably slow. In the case of economic growth, the Mission has actually exceeded targets. USAID’s agriculture activities fostered the production and export of high-value fruit and tree crops, yielding significant increases in household income for small farmers. Last year, these programs resulted in revenue improvements averaging more than 10 percent for about 35,000 farmers for targeted crops.
In democracy, USAID is providing critical training and other types of assistance, including some commodities, to civil society organizations, the independent media, and political parties. FY 2002 saw the arrival in country of over $500,000 in equipment for about 40 independent community radio outlets scattered throughout Haiti. The equipment is being distributed this year and used to broadcast civic education messages being developed under the same activity. In addition, after experiencing initial start-up delays, programs to strengthen political parties will soon be getting underway in earnest. Another program is helping to build coalitions for judicial reform among Haiti’s many civic organizations, e.g., business associations, human rights groups, religious organizations, and labor unions.