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Investing in Haiti

Posted by CaribShout on August 13, 2009 at 9:32pm

Is former US President Bill Clinton taking his role as UN special envoy to Haiti seriously? Very much so, say observers watching him trying to work his magic to bring much-needed investment to the impoverished Caribbean nation. Mr Clinton plans to lead an international trade mission of private investors to Haiti in October. The former president says his investor mission would focus on agriculture, construction, textiles and energy. President Clinton said billionaire investor and philanthropist George Soros' Economic Development Fund would be launching an equity investment programme with an initial commitment of up to $25 million. The Haiti Invest Project's potential partners could immediately expand that amount to $150 million in manufacturing, agriculture, logistics, energy and tourism ventures. A more stable Haiti Stability has improved in the troubled Caribbean nation, providing new opportunity for foreign investment. This was a point President Clinton hammered home as he addressed a Haitian Diaspora Unity Congress in Miami at the weekend. The Congress brought together former government officials, potential presidential candidates, business leaders, and elected officials from outside Haiti. It also attracted people from around the US and Haiti. Mr Clinton took the opportunity there to urge Haitian Americans to help improve their homeland's future. "The more involved you are, the better the odds get so do not be deterred," the former US president said, urging Haitians to do more to help their country. "I think we are really on the verge of being able to make some significant changes," Mr Clinton told the Miami meeting of overseas-based Haitians. Overcoming a troubled past Deeply impoverished Haiti was plagued by coups and sporadic unrest for much of the 1980s and 1990s. In the wake of its political problems, Haiti's denuded countryside has led in the last few years to regular major flooding, evacuation of parts of its population, and loss of homes and infrastructure during the annual hurricane season. UN peacekeeping forces have been helping to maintain order in the Caribbean nation since the last revolt in 2004. Former US president Bill Clinton

Bill Clinton's July visit refocused attention on the situation in Haiti But Bill Clinton, who visited Haiti in his capacity as UN envoy, said the United States, Canada, and other nations have recently eased their travel warnings for Haiti in recognition of improving security. For its part, the Haitian government has streamlined the approval process for business ventures. The World Bank and International Monetary Fund granted Haiti $1.2 billion of debt relief in June, helping to ease its financial burden. Specific projects Electric power is scarce in rural areas and the cutting of trees to make charcoal has led to deforestation in Haiti. As an example of projects rife for further investment, Mr Clinton described a recycling program that turns paper and sawdust waste into cooking fuel that sells for one-fifth of the cost of charcoal. He also said Brazilian investors whom he did not identify had expressed interest in expanding sugarcane-to-ethanol production to new areas outside Brazil, and that it was "a real possibility" for Haiti. He also promised to "hector every last dime" out of donor nations that had yet to deliver money they had already pledged for Haiti. Minimum wage raised Efforts are also being made locally to try to get Haiti up and running, but there are concerns that these efforts could derail initiatives to create more job opportunities. One of these was a recent move by Haitian lawmakers to more than double the country's minimum wage. Haitian President Rene Preval

President Preval worried that major wage increases would deter investors The vote in early August came after long hours of debate and clashes between police and protesters complaining about not being able to feed and shelter their families on the current pay of about $1.75 a day. The plan adopted by the law makers fell short of the $5 wage demanded by the demonstrators. But it's expected to more than double the minimum pay to about $3.75 a day. Job creation worries The raise would also include workers at factories producing clothes for export. That had been one of the contention points during the minimum wage debates. President Rene Preval and some development experts argue that a pay increase would hurt plans for fighting Haiti's widespread unemployment. They want to see more jobs created in the factories that produce clothing for export to the US. And they argue that an increased minimum wage could hurt such initiatives that require that costs be kept down. Helping Haiti make meaningful progress continues to be a real challenge, but the UN's point man on the troubled Caribbean nation believes he can help make a difference there, and he says that he intends taking the kind of action that will underscore that commitment.

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