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Home » Missing People » To rebuild Haiti, get rid of the debt burden already

To rebuild Haiti, get rid of the debt burden already

By recklaz - Fri Feb 05, 1:01 pm

Edited byrecklaz

The devastating earthquake that struck Haiti has led to a massive flow of international aid. The first priority was to save lives, deliver water, food, shelter, medicines and other essential supplies to victims. These initial emergency response will be supported by ongoing supply chain that will operate for many months.

However, even as we are to stabilize the humanitarian interventions, we must begin to implement the delivery of essential services and reconstruction. This is why the time is ripe to learn from past experience. Despite five missions of peacekeeping and billions of dollars in aid, human development indicators in Haiti remain among the worst in the world.

Yet we know that improvement is possible.

Before the hurricanes of 2008 and then again before the earthquake in January, Haiti had made good progress, as evidenced by the successful outcome of elections conducted peacefully, stabilization of chronic insecurity, improving revenue collection and increased investment.

To take advantage of these advances it will requires a long term commitment to the reconstruction and rehabilitation in Haiti. Once the cameras have left the country, as they are already doing so, donors should not follow suit. In the past, in fact, fatigue inspired the country’s situation was an obstacle to development at least as important as natural disasters.

The damage caused by four hurricanes and tropical storms that have ravaged the country in 2008 have been estimated at about 15% of GDP. The devastation caused by this earthquake is likely to be more costly and require a coordinated effort and better sustained over time. What can we learn from past experience?

Haiti can not be rebuilt by well-meaning outsiders. Donors must work with the government and the Haitian people, while the government and Parliament must chart the way forward and commit to work hand in hand.

Donor assistance for reconstruction must be provided as grants. A larger volume of capital must be allocated through the national budget so that funds can be linked to the objectives of the country and used to develop national capacity, although the initial phases of reconstruction depend on assistance from regional and international partners .

We need to rid Haiti of its debt burden. In consultation with the International Monetary Fund (IMF), we granted to Haiti in 2009 a debt forgiveness of 1.2 billion dollars (860 million euros), but there is still almost $ 1 billion to repay. Less than 4% of this amount, approximately 38 million dollars are owed to the World Bank. We immediately announced that no reimbursement would be required during the next five years, and we are proceeding with the cancellation of all funds that remain outstanding. Others will follow suit.

We can support the transition from humanitarian assistance to reconstruction through programs of paid work in food or cash so that Haitians are paid to clear and rebuild the infrastructure and planting trees. Community projects can be undertaken to revitalize small farms that, over time, begin to occur before taking over from food aid programs. With a moderate investment in supplies and equipment, Haiti can recreate construction companies that provide jobs.

Regularly hit by natural disasters, Haiti is a victim of its location. Yet, this same situation could also become a strategic opening. Located some 900 km from the United States, the country has tremendous potential. It has U.S. market access under the law of Hope II, and could develop the apparel and agriculture and create jobs. Haiti may also promote the private sector in establishing a climate conducive to investment and rebuilding electricity grids and roads and ports.

Such successes have been achieved. The International Finance Corporation, our speaker from the private sector has invested in Digicel, thereby expanding coverage of mobile telephony. A free-trade near the border with the Dominican Republic has attracted U.S. apparel companies, which has created thousands of jobs. Other areas of this type could be implemented or developed.

Legitimacy, security and development must coexist for Haiti to prosper. Viewers now understand how the Haitian state was destitute. It is not simply the lack of heavy equipment to clear rubble, but the lack of police and magistrates, and a state without a large capacity or financial resources to protect the population or it provide essential services.

We must “Securing Development”, that is to say, give it a sufficient basis for breaking the cycle of vulnerability, poverty and violence. Once established will be political stability, security and a government with the necessary resources, investment and development can progress.

We can be inspired by the example of Aceh, Indonesia. Today, five years after the tsunami, everyone agrees that the reconstruction of Aceh has been a success. Some 140 000 homes and nearly 4 000 km of roads have been rebuilt, while assistance was provided to 200 000 SMEs.

In Aceh, the international partners have funded the reconstruction based on coordinated interventions undertaken under the direction of government in accordance with local priorities. The assistance of fifteen organizations and donor countries, 700 million dollars has been paid to a multi-donor fund was administered by the World Bank. Thus, instead of leading parallel fifteen projects separate roads and housing procedures and different criteria that have not failed to overwhelm local institutions with limited capacity, only one well-coordinated program has been implemented by communities, government agencies, NGOs and international organizations.

Haitians will not be victims any more than we would like ourselves. With strong leadership and support Haitian regional and international coordinated, consistent and efficient, we can transform the sensationalism of a few days of news in decades of success stories.

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