[Senate Hearing 112-71]
[From the U.S. Government Printing Office]
S. Hrg. 112-71
REBUILDING HAITI IN THE MARTELLY ERA
=======================================================================
A JOINT HEARING
BEFORE THE
SUBCOMMITTEE ON WESTERN HEMISPHERE, PEACE
CORPS, AND GLOBAL NARCOTICS AFFAIRS
AND THE
SUBCOMMITTEE ON INTERNATIONAL DEVELOPMENT AND FOREIGN
ASSISTANCE, ECONOMIC AFFAIRS, AND
INTERNATIONAL ENVIRONMENTAL PROTECTION
OF THE
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
__________
JUNE 23, 2011
__________
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COMMITTEE ON FOREIGN RELATIONS
JOHN F. KERRY, Massachusetts, Chairman
BARBARA BOXER, California RICHARD G. LUGAR, Indiana
ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee
BENJAMIN L. CARDIN, Maryland JAMES E. RISCH, Idaho
ROBERT P. CASEY, Jr., Pennsylvania MARCO RUBIO, Florida
JIM WEBB, Virginia JAMES M. INHOFE, Oklahoma
JEANNE SHAHEEN, New Hampshire JIM DeMINT, South Carolina
CHRISTOPHER A. COONS, Delaware JOHNNY ISAKSON, Georgia
RICHARD J. DURBIN, Illinois JOHN BARRASSO, Wyoming
TOM UDALL, New Mexico MIKE LEE, Utah
Frank G. Lowenstein, Staff Director
Kenneth A. Myers, Jr., Republican Staff Director
------------
SUBCOMMITTEE ON WESTERN HEMISPHERE, PEACE
CORPS, AND GLOBAL NARCOTICS AFFAIRS
ROBERT MENENDEZ, New Jersey, Chairman
BARBARA BOXER, California MARCO RUBIO, Florida
JIM WEBB, Virginia MIKE LEE, Utah
JEANNE SHAHEEN, New Hampshire JIM DeMINT, South Carolina
TOM UDALL, New Mexico JOHNNY ISAKSON, Georgia
JOHN BARRASSO, Wyoming
------------
SUBCOMMITTEE ON INTERNATIONAL DEVELOPMENT
AND FOREIGN ASSISTANCE, ECONOMIC AFFAIRS,
AND INTERNATIONAL ENVIRONMENTAL PROTECTION
BENJAMIN L. CARDIN, Maryland Chairman
ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee
CHRISTOPHER A. COONS, Delaware MARCO RUBIO, Florida
RICHARD J. DURBIN, Illinois JAMES E. RISCH, Idaho
TOM UDALL, New Mexico JAMES M. INHOFE, Oklahoma
(ii)
C O N T E N T S
----------
Page
Bernadel, Maj. Joseph M., Permanent Representative of the Haitian
Diaspora, Interim Haiti Recovery Commission, Boynton Beach, FL. 5
Prepared statement........................................... 7
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 55
Cardin, Hon. Benjamin L. Cardin, U.S. Senator from Maryland,
opening statement.............................................. 2
Prepared statement........................................... 4
Menendez, Hon. Robert, U.S. Senator from New Jersey, opening
statement...................................................... 1
Sassine, Georges Barau, president, Association of Haitian
Industries, Port-au-Prince, Haiti.............................. 26
Prepared statement........................................... 28
Shaye, Gary, Haiti Country Director, Save the Children, Port-au-
Prince, Haiti.................................................. 34
Prepared statement........................................... 36
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 54
Simon-Barjon, Regine, president, Biotek Solutions, Inc.; Biotek
Haiti S.A., Tampa, FL.......................................... 12
Prepared statement........................................... 14
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 50
Additional Material Submitted for the Record
Catholic Relief Services (CRS), prepared statement............... 48
(iii)
REBUILDING HAITI IN THE MARTELLY ERA
----------
THURSDAY, JUNE 23, 2011
U.S. Senate, Subcommittee on Western Hemisphere,
Peace Corps, and Global Narcotics Affairs and
Subcommittee on International Development and
Foreign Assistance, Economic Affairs, and
International Environmental Protection,
Committee on Foreign Relations,
Washington, DC.
The subcommittees met, pursuant to notice, at 2:20 p.m., in
room SD-419, Dirksen Senate Office Building, Hon. Robert
Menendez and Hon. Benjamin J. Cardin (chairmen of the
subcommittees) presiding.
Present: Senators Menendez and Cardin.
Also present: Representative Alcee Hastings.
OPENING STATEMENT OF HON. ROBERT MENENDEZ,
U.S. SENATOR FROM NEW JERSEY
Senator Menendez. This joint hearing of the Subcommittee on
the Western Hemisphere, Peace Corps, and Global Narcotics and
the Subcommittee on International Development and Foreign
Assistance, Economic Affairs, and International Environmental
Protection will come to order.
Let me thank Senator Cardin, my friend and colleague, for
cochairing this hearing on an issue that is of utmost
importance in the hemisphere. By doing this together, we bring
all of the jurisdiction to bear on a very important part of the
agenda that we are mutually sharing in. So I appreciate his
working with us to do it in this manner, and we will hear from
him in just a moment.
The challenges for the people of Haiti are daunting, but
they are not insurmountable. When the right leadership adopts
the right policies and with the continuing support of the
international community, progress can be made. In the case of
Haiti, with the recent Presidential elections behind us, that
moment could and should be now.
The challenge before us is one precisely of reinvigorating
our efforts to rebuild Haiti better than it was before the
earthquake. To the extent those efforts have been stalled by an
unsettled political environment, by the debilitating effects of
the cholera epidemic, and by the magnitude of the
multidimensional challenges that need to be faced, the
opportunity to move forward is at our disposal. It requires a
coordinated effort that involves the Government of Haiti, the
aid and development communities, the international donor
community, NGO's, the Haitian diaspora, and the private sector.
We have before us today a panel from the private sector,
Haitian diaspora, and NGO community--a diversity of
perspectives united in their common goal of seeing Haiti
succeed. I am particularly encouraged by the private sector's
interest in Haiti because only with active private sector
involvement can we have a sustainable development in that
country, development that demands the reforms necessary to
encourage private investment and that brings jobs to Haiti and
allows Haitians to earn a living, invest in their communities,
send their children to school, and build a strong, self-
sustaining nation.
There is perhaps no greater development challenge in the
hemisphere than that presented by Haiti. The challenge is not
only to remove rubble, treat and prevent cholera, provide
durable housing, and build infrastructure. The challenge is
also investing in the people of Haiti and in economic
development that will eventually limit the need for
humanitarian assistance.
That is why I cosponsored the Haiti Economic Lift Program
Act, the HELP Act, which was passed by Congress last year. That
act is an example of how we can help Haiti and Haitians through
economic incentives. The law extends the duty-free treatment of
certain imported knit apparel articles such as those made in
Haiti from yarns formed in the United States. Through this type
of trade, we can provide jobs for Haitians.
In fact, the World Economic Forum, together with the
International Development Bank, issued a report in January of
this year touting the role that the private sector can play in
helping Haiti to achieve an accelerated economic trajectory.
The report outlines opportunities for business in Haiti through
establishment of special economic zones, fast track zones for
commercial development.
For these initiatives to succeed, however, Haiti needs to
become a more business-friendly environment, meaning access to
basic infrastructure, logistic and financial services, clear
title to land, and an educated and skilled labor force.
President Martelly's election represents an opportunity to
move forward, to examine what needs to be done, and to form a
government that can take real action. I am hopeful that 2011
will mark the beginning of Haiti's transformation, and we look
forward to hearing from each of you as to what we can do to
facilitate that achievement.
I will say, however, for the record that I am a little
disappointed that the administration, whose witness we moved
this hearing to accommodate, ended up canceling out on us. And
we have every expectation--I think Senator Cardin will join me
in that--that at some point we will hear from the
administration in this regard.
With that, my distinguished colleague, the chairman of the
subcommittee, Senator Cardin.
OPENING STATEMENT OF HON. BENJAMIN L. CARDIN,
U.S. SENATOR FROM MARYLAND
Senator Cardin. Well, let me thank Chairman Menendez for
not just convening this joint hearing of two subcommittees on
the Senate Foreign Relations Committee, but his extraordinary
leadership in our hemisphere and around the world. And we thank
you very much for this.
This is an unusual event to have a joint subcommittee
hearing, and we did that because we really wanted to bring all
of the resources that we have available to deal with the
challenges in Haiti. The responsibility of the subcommittee
that Senator Menendez heads deals with the geographical area,
including Haiti. The subcommittee that I chair deals with the
tools we have available through international development
assistance and economic support. So we want to use all those
tools to effectively deal with the challenges we have.
Mr. Chairman, I want to ask that my entire statement be
made part of the record.
I want to thank the witnesses for being here and the work
that you do. It is critically important to us.
I want to just make a couple of observations. Before the
earthquake in January, Haiti was a very challenged country, one
of the poorest in the world, and the challenges there were very
great. Well, since the worst natural disaster in its history,
the circumstances have gotten much, much more dire. There are
many challenges, and we will go through some of those
challenges. Seventy percent of the Haitians live on $2 a day or
less. Eighty percent of those who have gotten university
degrees from Haiti are no longer in Haiti. You got the export
of their talent pool, and that has caused a real challenge. The
infant mortality rate is one of the highest in the world. Mr.
Chairman, you mentioned the HIV/AIDS rates and cholera rates,
all very, very high. So we have a degraded infrastructure and
you have a population that has extraordinary needs, a
population that does not have the tools it needs, nor the
infrastructure it needs. It presents a very, very vulnerable
situation. And that is what we have in Haiti.
I do want to just say on a positive note President Martelly
offers promise for the people of Haiti with the elections.
There is a strong diaspora. They currently make available,
I believe it is--between $1.2 billion and $2 billion per year
is brought back into Haiti from its diaspora which I think
presents a real asset that we need to capture as we move
forward.
And then last, as you pointed out, Mr. Chairman, the key to
me long term in Haiti is the ability to attract investors and
entrepreneurs and businesses. And the NGO community fully
understands that, and we need to make sure that the climate is
right in Haiti for those types of initiatives to move forward.
And our witnesses today I think will provide us some key points
in moving this forward.
The United States has already contributed $1.1 billion in
humanitarian aid. We obviously believe that we have a moral
responsibility to respond particularly to a country in our
hemisphere. But we want to make sure is those funds are being
used most effectively as possible. It is a lot of money, but as
I said this morning to Secretary Clinton, I want to make sure
that our aid is used effectively. It is not just that a country
needs help. We got to make sure that the help, in fact, is
getting to the country itself. So I would be interested, as the
witnesses make their presentations or through the question-and-
answer period, to get your assessment as to how effective the
U.S. aid has been, as well as the international community's
efforts to help the people of Haiti.
Mr. Chairman, if I might take the privileges as the cochair
here to acknowledge Congressman Alcee Hastings who has joined
us. You are more than welcome to either sit up here, if you
would like, Congressman Hastings.
Mr. Hastings. I am grateful to you.
Senator Cardin. We are glad to offer you a place at our
table here.
Thank you, Mr. Chairman.
[The prepared statement of Senator Cardin follows:]
Prepared Statement of Senator Benjamin L. Cardin
I want to welcome everyone to this joint subcommittee hearing
today. A joint hearing is not something we do very often in the Foreign
Relations Committee and I believe it illustrates how important this
issue is to all of us as we try to effectively deal with the challenges
we face in rebuilding Haiti, in particular, at this critical turning
point for the country.
In one day, we witnessed the complete devastation of Haiti. Since
that day in January 2010, we have watched as Haiti try to recover from
one of the worst natural disasters in history. In the 18 months since
the earthquake, the United States, along with international relief
organizations and other donors, has helped to feed more than 4 million
people, remove 4 million cubic meters of rubble and vaccinated about 1
million internally displaced persons.
By the end of 2010, U.S. agencies had provided $1.1 billion dollars
to meet the humanitarian needs of Haiti. Clearly, much progress has
been made.
And now, with the inauguration of President Martelly (pronounced
Mar-tell-ee) last month and a peaceful transition to new political
leadership in the country, there is new opportunity for broader
revitalization. This is a new opportunity and Haiti truly needs to
capitalize on this momentum to foster its own reconstruction and
development, supported by effective, sustained, and coordinated support
from the international community.
And, indeed, so much more remains to be done. The long-term
challenge is how to best assist Haiti in the true and lasting
reconstruction of their country--beyond traditional emergency
humanitarian assistance. And the rebuilding of Haiti has slowed and, in
some cases, even stalled.
For decades, Haiti has remained the least developed country in the
hemisphere and one of the poorest in the world. Even before the
earthquake, Haiti was faced with some daunting challenges and not able
to meet even some of the most basic human needs of its citizens--and
this continues.
Today, more than 70 percent of Haitians live on less than $2 per
day; adequate housing and infrastructure throughout the country is
deficient; their health care services lack staff, drugs and equipment;
jobs that offer a living wage are difficult to find; 80 percent of
Haitians with university degrees do not live in Haiti; Haitian women
have one of the highest maternal mortality rates in the hemisphere;
HIV/AIDS rates are high and cholera remains a serious risk; and, their
natural environment has been degraded.
This is precisely why it is vital that effective humanitarian and
development assistance continue to flow to get the country back on its
feet. I look forward to hearing from Gary Shaye, who serves as Haiti
Country Director for the international NGO Save the Children, but also
as a Board Member for the Haitian NGO Coordinating Committee. Solving
these basic development problems is essential for in rebuilding plan
for Haiti and the effective coordination of the private NGOs, country
donors and multilateral institutions is at the core of this success.
But we understand that aid is not the ultimate answer. Aid was the
right response to the disaster and aid is the right response to the
humanitarian crisis that continues in Haiti. To build a capable state,
much more is required. There are other kinds of support, such as new
investment and trade policies, institutional capacity-building
assistance and strengthening the enterprise development so that exports
grow and everyone along the value chain is helped.
If we embark on the same familiar road and use the same tools,
Haiti will never realize its full potential. We therefore must begin
exploring alternatives to create a climate in which Haitians can better
help themselves. Haiti holds real economic potential in a number of
sectors and it is possible for U.S. and international firms to do well
there.
To that end, we will hear from two private sector entrepreneurs,
Regine Simon-Barjon and George Sassine, who will offer their experience
from their successful business ventures in Haiti and suggestions on to
make that replicable. I am also looking forward to ideas on how to
encourage more private investment in-country. This is particularly
important in the sectors which would lead to greater Haitian economic
gains, which would best empower those who are now living in the
greatest poverty, especially women who are often head of households. As
we look at plans for bringing greater investment to Haiti, the ability
of these women to generate income is of paramount importance to me.
President Martelly seems interested in making Haiti more attractive
for business investment and to show the international community that
``Haiti is open for business.'' I look forward to hearing how the
witnesses believe you can create that climate in Haiti, while also
ensuring the benefits of development are spread to everyone.
And, we will also hear from another essential part of this
picture--the Haitian diaspora, which contributes an estimated $1.2 to
$2 billion per year back to the country. With only about 10 percent of
Haitians formally employed, the Haitian economy is dependent on these
remittances from members of the diaspora. Today, we are joined by Maj.
Joseph Bernadel (pronounced Burn-a-dell), the Permanent Representative
of the Haitian Diaspora Interim Haiti Recovery Commission, the IHRC.
A leader in the diaspora community in the United States for some
time, we look forward to hearing his suggestions on how to better tap
into the expertise of the diaspora, including creative strategies on
issues, such as access to capital, enterprise development and
investment.
I am confident that if these strategies, along with the assistance
and the attention of the international community are coordinated and
wielded properly, the Government of Haiti could foster a more resilient
society and prosperous country.
I want to thank all of you for coming here today. I am encouraged
and inspired by all of the people working on the ground in Haiti, who
have been dedicated and resolute in their commitment to the
reconstruction of this country. With all your hard work, I am
optimistic that Haiti's best days still lie ahead. I also want to thank
Senators Menendez, Corker, and Rubio for your interest in holding this
hearing today.
Senator Menendez. Thank you, Senator Cardin. And without
objection, your full statement is in the record.
Let me also welcome my dear friend Alee Hastings who I had
the privilege of serving with in the House. Normally your
sartorial splendor outshines what you are wearing today, but we
are glad to have you with us.
We will ask you to summarize your statements in about 5
minutes. Your full statements will all be included in the
record. And we will start with Major Bernadel and then move
down the row to Mrs. Simon-Barjon, to Mr. Sassine, and Mr.
Shaye. So we will start with you, Major.
STATEMENT OF MAJ. JOSEPH M. BERNADEL, PERMANENT REPRESENTATIVE
OF THE HAITIAN DIASPORA, INTERIM HAITI RECOVERY COMMISSION,
BOYNTON BEACH, FL
Mr. Bernadel. Good afternoon, Chairman Menendez and
Chairman Cardin and Congressman Hastings and members of the
subcommittee. It is an honor to provide this testimony on
today's hearing, and I especially thank you for including the
voice of Haitians and the Haitian diaspora.
The challenges of Haiti can be likened to a family with
nine children where there is $1,000 worth of monthly need to be
addressed and only $100 worth of savings. This is the
monumental challenge that Haiti's new President, Michel
Martelly, has inherited in leading Haiti and its people to the
next stage of post-earthquake reconstruction. He must manage
billions of dollars in foreign and deliver on the soaring
expectations of millions of Haitian citizens who hope for and
reserve a better life. Importantly, he will need to tap the
huge pool of talents of the Haiti diaspora members who are
eager to participate in their homeland reconstruction and whom
I represent here today.
The reality is that President Martelly also inherited a
country with key projects for nation-building already underway.
The projects and the plan are the result of the collaborative
effort of the Government of Haiti and the Interim Haiti
Reconstruction Commission, an independent, nonpolitical body
mandated to provide expertise and to expedite the capabilities
of Haitian leadership for building a new and better Haiti. As a
member of the board of the IHRC, representing the Haitian
diaspora, I know very well how far we have come.
The IHRC is mandated to focus on stakeholder alignment,
information-sharing, facilitating flow of funds, project
alignment, and monitoring progress and performance.
Since its inception in June 2010, the IHRC has been key to
the recovery effort. It has provided leadership for the
efficient coordination of proposals, reconstruction projects,
aid organizations, and donor funds to ensure the most urgent
priorities of the Haitian people were met and the government's
long-term goals were advanced.
A key underlying goal is to build Haiti back better than
before, using stricter standards to make the country more
resilient to natural disasters. This means that the
reconstruction process may take somewhat longer and that costs
may increase, but the lives and safety of citizens must be
paramount.
Despite the difficulties inherent in recovering from a
disaster of this magnitude, the IHRC has to date succeeded in
facilitating 87 projects totaling $3.2 billion. The projects
encompass the eight critical sectors of debris removal,
housing, water and sanitation, education, health, energy, job
creation, and capacity-building, in full alignment with
government priorities.
Much has been accomplished. Still much remains to be done.
To build back a more resilient nation, key policy reforms must
be accelerated by the Government of Haiti. This includes
disaster planning, developing a national energy policy,
decentralization, and clarifying land tenure and titles as a
prelude to reconstruction.
Initiatives implemented by the IHRC and required to attract
investment are in place. However, much lip service is being
paid to the Haitian entrepreneurs in the country or in the
diaspora community as evidenced by a report that only 2 percent
of the rebuilding and recovery contracts have been awarded to
citizens. Despite the broad mandate of the IHRC, the commission
does not have funds, nor does it disburse funds. It does not
direct the Government of Haiti nor the operation of the donors
or NGO activity. It does not duplicate existing mechanisms of
the Government of Haiti, and it does not replace the financial
tracking function and the responsibility of implementing
agencies and donors or does it fund projects directly.
Rather, the IHRC is charged with facilitating the funding
flow by publicizing to donors all funding gaps that exist for
IHRC-approved projects and by connecting partially funded
project programs to entities that can disburse the funds such
as the Haiti Reconstruction Fund, an organization that serves
as a funding agency. The objectives of the HRF are to mobilize,
coordinate, and allocate resources to improve basic living
conditions in Haiti and assist in building the capacity of the
Haitian state.
In looking at Haiti today, I see a nation that is on a
positive path but my optimism is guarded. The reality is that
there are four issues that Haiti has to contend with. The
problems that need to be resolved in Haiti will take time, but
for the displaced and impoverished community in Haiti time is a
luxury. Economic growth must be matched with social investment,
namely education, job creation with livable wages that tap into
the tremendous work ethic and talent of Haitians, or that honor
and respect the dignity of the people. The inclusion and
involvement of the Haitian diaspora community must be paramount
in the reconstruction of Haiti. Specifically, there must be
resolution in the constitutional amendment granting dual
citizenship to the strong Haitian diaspora. I remain concerned
that the biggest external obstacle to reconstruction remains
the slow pace of disbursement of dollars pledged, and I also
see the need for greater integration of NGO initiatives.
In closing, the inauguration of a new President is a
potential turning point for any country. For Haiti, it carries
profound imperatives. Building on what has already been
accomplished will speed Haiti's progress and reconstruction.
The Nation's efforts must continue and this is not the time
to step back. Rather, now is the time to commit with renewed
vigor to the huge responsibility of rebuilding Haiti, not back
to what it was, but forward to what it can be.
Thank you.
[The prepared statement of Mr. Bernadel follows:]
Prepared Statement of Maj. Joseph M. Bernadel, U.S. Army (Ret.)
Good afternoon, Chairman Menendez and Chairman Cardin, and members
of the Subcommittee on Western Hemisphere, Peace Corps and Global
Narcotics Affairs and Subcommittee on International Development and
Foreign Assistance, Economic Affairs and International Environmental
Protection. I thank you for inviting me to testify today at the hearing
entitled entitled, ``Rebuilding Haiti in the Martelly Era.'' I am
particularly pleased to point out that this hearing has given Haitians
and Haitian-Americans an opportunity to speak before Congress about the
future of Haiti.
It is apparent to all that Haiti's new President, Michel Martelly,
inherited a monumental task of leading Haiti and its people through the
next stages of post-earthquake reconstruction. He faces many
challenges, including managing billions of dollars in foreign aid and
delivering on the soaring expectations of millions of Haitian citizens
who hope for and deserve a better life. Importantly, he will need to
tap the huge pool of talents of Haitian diaspora members, who are eager
to participate in their homeland's reconstruction.
The new President also inherited a country with key projects for
nation-building already underway, guided by a strategic reconstruction
plan with clearly-defined priorities. The projects and the plan are the
result of the collaborative efforts of the Government of Haiti and the
Interim Haiti Reconstruction Commission (IHRC), an independent,
nonpolitical body mandated to provide expertise and to expedite the
capabilities of Haitian leadership for building a new, better Haiti. As
a member of the IHRC Board representing the Haitian diaspora I know
well how far we have come.
The IHRC is mandated to focus on stakeholder alignment,
information-sharing, facilitating flow of funds, project alignment and
monitoring progress and performance.
Since its inception in June 2010, the IHRC has been key to recovery
efforts. It has provided leadership for the efficient coordination of
proposals, reconstruction projects, aid organizations and donor funds
to ensure the most urgent priorities of the Haitian people were met and
the government's long-term goals were advanced.
A key underlying goal is to build Haiti back better than before,
using stricter standards to make the country more resilient to natural
disasters. This means that the reconstruction process may take longer
and that costs may increase, but the lives and safety of citizens must
be paramount.
Despite the difficulties inherent in recovering from a disaster of
this magnitude, the IHRC has, to date, succeeded in facilitating 87
projects totaling US$3.261 billion. The projects encompass the eight
critical sectors of debris removal, housing, water and sanitation,
education, health, energy, job creation and capacity-building, in full
alignment with governmental priorities.
Much has been accomplished; still, much remains to be done. To
build back a more resilient nation, key policy reforms must be
accelerated by the Government of Haiti. This includes disaster
planning, a national energy policy, decentralization, and clarifying
land tenure and titles as a prelude to reconstruction. In my personal
view, I also believe that addressing legal changes such as the recent
constitutional amendment granting dual citizenship to the several-
million strong Haitian diaspora is also of great importance to Haiti's
future.
As Haitians look to their new President to accelerate the process
of reconstruction, the IHRC as a tool that assists him meeting the
challenges, providing ongoing support as he moves his national agenda
forward. At the same time, the international community must seize the
chance to focus its aid on empowering rather than prolonging the
dependency of Haiti's people and institutions. Investments by the
international community must not focus solely on economic growth, but
also on social programs which take into account Haiti's culture and
social realities.
the interim haiti reconstruction commission
After the lesson learned from the rebuilding efforts in December
2004 Aceh Indonesia Tsunami, the Government of Haiti, in partnership
with the United States and the international community, created the
Interim Haiti Reconstruction Commission, to ensure that development
work would be coordinated and realized on the ground. Established by
decree on April 19, 2010, the IHRC was given an 18-month mandate to
``facilitate rebuilding investment and efforts that are Haitian led,
coordinated, effective and efficient, ensuring that the implementation
of priorities, plans and projects are faithful to the Haiti Action
Plan, and properly sequenced to build Haiti back better.''
Then-Haiti Prime Minister Jean-Max Bellerive and former U.S.
President Bill Clinton were appointed as cochairs of the IHRC, to help
guide donor and other stakeholder investments, to help Haiti realize
its vision for a stable and prosperous future.
The IHRC mandate is to ``conduct strategic planning and
coordination and implement resources from bilateral and multilateral
donors, nongovernmental organizations, and the business sector, with
all necessary transparency and accountability.'' The IHRC took upon the
responsibility to ``optimize the investments and contributions of these
entities.'' Specifically, the IHRC is charged with developing and
refining development plans for Haiti, assessing needs and gaps and
establishing investment priorities. The projects reviewed by the IHRC
would align with the consistency and coordination with the Haiti Action
Plan, which was drawn up by the Haitian Government. However, the
solicited projects would not necessarily come from the Government of
Haiti.
Since its creation, the IHRC has been key to recovery efforts. It
has provided leadership for the the efficient coordination of
proposals, reconstruction projects, aid organizations, and donor funds,
to ensure the most urgent priorities of the Haitian people were met and
the government long-term goals were advanced. Given the pressing need
to identify and make land available to relocate the displaced
populations into shelter, the Ministry of Economy and Finance was given
broad authority to examine applications and issue property titles
requested by the IHRC within 15 business days. In exchange, the IHRC
agreed to provide the relevant ministries with the international
technical assistance necessary so that they may strengthen their
capacities to fulfill their mandate in relation to development
priorities and projects effectively and promptly.
Chiefly, the mandate of the IHRC is cast in three ways:
(1) Assessment--IHRC assesses outstanding and unfulfilled needs. In
coordination with the Government of Haiti, NGOs, donors, and other
coordinating mechanisms IHRC reviews projects underway and identifies
remaining gaps. The IHRC publicizes these needs and gaps to the local
and international community.
(2) Review--IHRC catalogs all incoming project proposals. Ministry
and sector experts review projects and provide feedback to IHRC. Using
publicly available criteria the IHRC rates projects (approval,
conditional approval, feedback, rejection) in workshops. Projects that
have received feedback or conditional approval can be refined and
resubmitted.
(3) Action--The IHRC publishes results of official approval,
conditional approval, or turn down and updates its project database.
IHRC coordinates with the Haitian Recovery Fund and/or other funds to
facilitate funding flows for approved projects that need funding.
The IHRC's Performance and Accountability Office (PAO) monitors
progress and ensures high standards are met during implementation. The
PAO is tasked with helping to close the current gaps in Haiti's
oversight systems and align recovery and development activities with
leading global development practices, such as: increasing transparency,
leveraging development successes and feedback lessons learned to
ongoing development and recovery projects, incentivizing effective and
ethical performance of development and recovery actors, ensuring impact
based assessment versus merely counting outputs, proactively
incorporating Haitian civil society feedback into the development
process, and holding accountable actors for poor performance and
mismanagement.
The IHRC have identified seven principles as a guide to approving
projects:
(1) Build A Better Haiti--Ensure that projects not only replace
damaged infrastructure and services but also focus on long-term
development and transformation of society, economy, and government
institutions.
(2) Maintain Urgency--Favor rapid processes and decisionmaking over
more time-consuming processes.
(3) Coordinate Effectively--Ensure effective coordination of the
government, donors, projects and resources for the recovery and
development of Haiti.
(4) Ensure Transparency--Ensure recovery and redevelopment
activities are fully transparent to the Haitian people, the wider
public and donors.
(5) Maintain Integrity--Maintain the highest professional and
ethical standards, acting with integrity at all times.
(6) Provide Accountability--Provide robust monitoring and oversight
over recovery resources in order to ensure accountability to the people
and Government of Haiti.
(7) Enhance Government Capacity--Support the building and use of
Haitian institutions whenever possible.
To date, as of June 15, 87 projects totaling $3.261 billion have
been approved by the IHRC. The projects encompass the eight critical
sectors of debris removal, housing, water and sanitation, education,
health, energy, job creation and capacity-building, in full alignment
with governmental priorities. In the health sector alone, 20 projects
totaling $333 million were approved and are underway in response to the
Interim Plan of the Ministry of Health. This includes the world-class
hospital and medical training facility in Mirebalais being developed by
Partners-In-Health, and dozens of clinics in outlying areas. The
projects can be accessed on the IRHC Web site, www.cirh.ht.
For projects less than $1 million, the Executive Director of the
IHRC grants approval. For projects between $1-$10 million, unanimous
approval by the Executive Committee is required. The Executive
Committee is composed of the two cochairs only. Projects greater than
$10 million are approved by the IHRC Board with the majority role.
The IHRC is equally comprised of Haitian officials/civil servants
and international partners. It is guided by a Board that includes
Haitian and non-Haitian stakeholders in reconstruction efforts. The
activities of the IHRC are supervised by the Executive Director, who
manages daily operations. Although, President Clinton remains as one of
the cochairs of the IHRC, Prime Minister Bellerive has resigned from
the post following the inauguration of the newly elected President of
Haiti, Michel Martelly. It is the responsibility of the cochairs to
form the Executive Committee of the IHRC and it may act on behalf of
the Board in between meetings. In addition, the cochairs preside at
meetings of the Board and establish agendas for these meetings.
The IHRC Board has 28 voting members, which must include at least:
2 designated by the Executive Branch of the Haitian
government;
2 designated by the Judicial branch;
2 designated by local government authorities;
1 designated by the Senate;
1 designated by the Chamber of Deputies;
1 designated by the labor unions;
1 designated by the business community;
1 representing the Caribbean Community (CARICOM);
1 representing each of the bilateral and multilateral donors
who have pledged to contribute at least $100M for Haiti over 2
years or $200M dollars in debt relief;
1 rotating representative designated by the other bilateral
and multilateral donors.
The Board also has 4 nonvoting members, which include:
1 designated by the Organizations of American States (OAS);
1 designated by the community of Haitian NGOs;
1 designated by the community of international NGOs;
1 designated by the Haitian expatriate community.
As with all organizations, there are some areas in need of
improvement. For example, at the December 2010 IHRC meeting, the
Haitian representatives on the IHRC sent a letter to the Board and
expressed displeasure in the manner in which information was conveyed
to them, not in a timely fashion with adequate time for review and
comments. Most recently, in May 2011, more than 35 Haitian civil
society organizations sent a letter to the IHRC complaining about the
lack of consultation with grassroots organizations representing the
people by the camps and areas affected by the earthquake.
On May 23, 2011, President Martelly appointed Michele Oriole as an
Observer to the IHRC. Ms. Oriole is an anthropologist with expertise in
land tenure issues.
What the IHRC does not do. Despite the broad mandate assigned to
the IHRC, the Commission does not hold funds, nor does it disburse
funds. It does not direct the Government of Haiti, nor duplicate its
existing mechanisms, nor the operations of the donor/NGO activities,
nor replace the financial tracking functions and responsibilities of
implementing agencies and donors, nor fund projects directly.
Rather, the IHRC is charged with facilitating the funding flow by
publicizing to donors all funding gaps that exist for IHRC approved
projects and by connecting partially funded projects/programs to
entities that can disburse funds, such as the Haiti Reconstruction Fund
(HRF).
The IHRC must, as an organization, function under the aegis of
comprehensive project review process flow, with greater coordination of
efforts, expertise, and protocols so that all submissions are reviewed
and evaluated fairly and in a timely fashion. To date, it can take as
long as 9+ months for a determination. If the IHRC is to serve on an
optimum basis, these issues must be addressed.
the haiti reconstruction fund (hrf)
The Haiti Reconstruction Fund (HRF) is a partnership between the
international community and the Government of Haiti to help finance
post-earthquake reconstruction. It works in conjunction with IHRC.
The Haiti Reconstruction Fund (HRF), as an organization serves as a
funding agency. All projects funded by the HRF must have IHRC approval
which requires as the initial step the submission of a Project Concept
Note, developed in collaboration with one of the following HRF partner
entities, the Inter-American Development Bank, World Bank, or United
Nations.
The HRF finances activities including technical assistance and
capacity-building, infrastructure investments, delivery of basic
services, community development, environmental protection and cleanup,
job creation and income generation, and budget support. HRF governance
is via a Steering Committee chaired by the Minister of Finance (GOH),
representatives of donors contributing at least US$30 million, a
representative of each partner entity (IDB, U.N., World Bank), a
Representative of Trustee (IDA), and Observers (civil society, private
sector, Diaspora, INGOs, local government).
The objectives of the HRF are to mobilize, coordinate, and allocate
resources to improve basic living conditions in Haiti and assist in
building the capacity of the Haitian state and society, long term,
consistent with Haiti's cultural traditions.
The HRF and IHRC are collocated and work collaboratively to ensure
that the HRF's funds are used as a source of funding to fill the
sectoral, funding gaps, and support the IHRC' priorities, projects and
program approval process. The HRF does not reject projects that are
approved by the IHRC. The process established provides that the IHRC
review and approve all projects and programs for financing by the HRF.
The IHRC can use the HRF as a source of finance to meet strategic
reconstruction needs determined by the IHRC that are not being fully
financed by other sources. Also, the IHRC can request that the HRF
prioritize specific sectors, projects or regions of the country.
Of the $352.3 million in funds contributed to the HRF, $335
million were received and the Steering Committee has made
cumulative funding decisions totaling US$230 million for 14
projects (project costs including fees). Less than 3 percent of
committed resources are being used to cover the administrative
costs of the HRF Secretariat, Trustee and Partner Entitles.
Out of the total US$230 million in approved recipient
executed grants (project costs including fees), 41 percent of
the funding is being channeled through the U.N. as Partner
Entity, 42 percent is channeled through the World Bank, and for
17 percent of the approved grants the IDB serves as the Partner
Entity.
With regard to the governance of IHRC and HRF, there is an
important overlap of members between the IHRC Board and the HRF
Steering Committee. Also, the observers to HRF Steering Committee
meetings are drawn from the IHRC Board. And I am one of them.
Institutionally, the IHRC can be represented on the HRF Steering
Committee through the chairperson or a designated representative. The
HRF Secretariat can participate in IHRC Board meetings as an observer
and resource entity.
Operationally, the HRF can support the IHRC by helping to finance
the Commission's operations. IHRC Board and HRF Steering Committee
meetings are synchronized to accelerate the financing of recovery
activities. The HRF Secretariat has been colocated with the IHRC in
order to ensure seamless communications and coordination. Projects and
programs that receive HRF financing will adhere to the quality,
reporting, and other standards established by the IHRC. The hope is
that IHRC can facilitate the work of the HRF in several ways by:
(1) Addressing bottlenecks and expediting licenses, permits and
land title for approved activities financed by the HRF;
(2) Encouraging development partners to contribute to or increase
their contribution to the HRF; and
(3) By guiding implementing agencies and partner entities to work
together to develop proposals that meet the strategic needs of the
recovery.
To qualify for funding by the Haiti Reconstruction Fund, a project/
program must have IHRC approval (which requires a Project Concept Note
to be submitted online). The Project Concept note must be developed in
collaboration with one of the following HRF partner entities: Inter-
American Development Bank, World Bank, or The United Nations.
Any institution that is acceptable to a partner entity can propose
an activity for financing. The proponent must work with one of the
HRF's partner entities who will assist with developing and supervising
the activity to ensure that international standards are met. Most
important, the IHRC will need to certify that the activity is
consistent with plans for rebuilding Haiti and endorse the proposal for
HRF financing. It is expected that projects and programs will be
implemented by the Government of Haiti, U.N. entities, NGOs, and the
private sector. Activities will be implemented on the ground by the
Government of Haiti, U.N. entities, NGOs, the private sector, and other
institutions acceptable to a partner. At the request of the Government
of Haiti, the World Bank is serving as Trustee of the HRF and will
transfer resources to partner entities for reconstruction activities at
the direction of the HRF's governing body.
closing
Initiatives implemented by the IHRC and required to attract
investments are in place. Already private sector money is flowing to
projects targeted to job creation and sustainable development that will
strengthen Haiti's economic foundations for the long term. From the
construction of the Northern Industrial Park expected to generate up to
65,000 permanent jobs, to the expansion of the Sae-A garment factory,
to infrastructure and tourism projects, the message is clear--Haiti is
``open for business.'' However, much lip service is being paid to the
Haitian entrepreneurs from the country and in the diaspora given that
very little of the available reconstruction dollars are being accessed
by that population.
In looking at Haiti today, I see a nation that is on a positive
path, although my optimism is guarded. However there are a number of
factors that have slowed the implementation of initiatives. They
include feeble infrastructure, the need for time to build a new
government for Haiti, the absence of a focused strategy to meet the
needs of the most vulnerable people, the absence of rules of law, and a
fractured social structure with lack of basic necessities for the
majority of population saddled with a high rate of illiteracy.
As well, endemic corruption represents a challenge that the new
Government of Haiti will need to quickly address. The institutional
donors will need to focus less on growth and more on social programs
geared toward alleviating the high rate of poverty. Legal or
administrative provisions should also be made to facilitate access to
capital by small and medium enterprises, the traditional creator of
jobs in any economic environment. To the task of job creation, the
Worldwide Haitian Diaspora is well suited. Representing 83 percent of
the professional and technical expertise available among all Haitians
but living outside of Haiti, this diaspora has engaged in significant
efforts to organize. Many wander why this group is not more present
economically in the Reconstruction of Haiti. Few reports now exist on
how many individual diaspora members or firms are actively involved in
the reconstruction programs.
To this same issue, there are a vast number of NGOs working in
Haiti--hence the reason why Haiti is commonly referred to as the
``Republic of NGOs''). They range from large recognizable names such as
the Red Cross, Save the Children, UNICEF, along with smaller entitles,
based for the most part in the United States, the EU, Latin America,
Canada, and Israel, many of them operating in Haiti prior to the
January 12, 2010 earthquake. There are gaps in support and coordination
among all the NGOs, with the larger NGOs having the bulk of resources
and the smaller NGOs often struggling for funding and often most able
to maximize the impact of donor dollars on the ground.
Efforts to date to create a complete census of NGOs and coordinate
sharing of resources have not been realized. I see the need for greater
integration of NGO initiatives, to preclude overlap and to maximize
resources. Ultimately, there must be an effort by the NGO community to
pass the baton on to the Haitian ministries and civil societies who are
eager to take on the roles of leadership on behalf of its people. While
Haiti can benefit from the teaching/training/guiding roles of NGOs,
there is a real need for NGOs to render themselves obsolete.
Yet, signs of progress across all sectors reinforce my optimism
that this vibrant country may at least realize its potential. It is
clear that the road ahead will not be smooth. The biggest external
obstacle to reconstruction remains the slow pace of disbursement of
donor pledges: To keep Haiti moving forward, funding must be disbursed
more quickly and in closer alignment with sector priorities identified
by the IHRC and Haitian authorities.
The inauguration of a new President is a potential turning point
for any country. For Haiti, it carries profound imperatives. Building
on what has already been accomplished will speed Haiti's progress in
reconstruction.
The nation's efforts must continue and this is not the time to step
back. Rather, now is the time to commit, with renewed vigor, to the
huge responsibility of rebuilding Haiti back better than before the
earthquake.
[Editor's note.--Attachments included by Mr. Bernadel at the end of his
prepared statement were not reproducible in this printed hearing. They
will be maintained in the committee's permanent record.]
Senator Menendez. Thank you.
Mrs. Simon-Barjon
STATEMENT OF REGINE SIMON-BARJON, PRESIDENT, BIOTEK SOLUTIONS,
INC.; BIOTEK HAITI S.A., TAMPA, FL
Mrs. Simon-Barjon. Mr. Chairman Menendez, Chairman Cardin,
and Congressman Hastings, thank you for having us. I am pleased
to share with you and to describe my experiences of what I have
learned and observed in working in Haiti prior to the
earthquake and its aftermath.
The Haitian American Chamber of Commerce in the United
States and BioTek, my company, has always been committed to
Haitian private sector development.
Haiti's new government has also signaled its intention of
leading the transition from commerce to production, including
attracting foreign investments necessary for needed
development. Mr. Pierre-Marie Boisson, a respected Haitian
economist, stated, ``The real secret for removing Haiti from
its depressing poverty-dependency trap is to induce massive
productive investments in the economy. Attracting such
investments is the only way to generate good jobs and revenues
for Haitians. It's also the surest way for the State to build a
sizable fiscal base and thus regain its capacity to play a
meaningful role in society.''
Entrepreneurial innovation is the engine that fuels
economic growth and job creation. U.S. funding and resources
dedicated to cultivating Haiti's private sector have been
comparatively low, totaling $163 million of the $4 billion
awarded to Haiti to date.
Therefore, it is time to rethink U.S. development
assistance to Haiti and it is imperative that Haiti's financial
partners and Haitian actors themselves implement solutions that
redress international policies that are no longer adequate, and
that are impediments that have contributed to endemic Haitian
economic failure.
This strategy will save the U.S. billions of tax dollars in
aid funding in the long run and create an economically self-
sufficient Haiti.
To quote Dr. Auerswald of George Mason University,
``Haiti's path to prosperity does not run though the halls of
aid agencies, but from seed to harvest.''
Haitians rank support for local food production among its
top priorities.
The USG can further support Haitian productive sectors by
addressing specific existing indigenous potentials which have
the ability and capacity to simultaneously impact in the
immediate and the long term more people, as well as the Haitian
market economy.
The focus should be on three sectors which are
interrelated: agriculture, energy, and lack of available
credit.
Let me turn your attention to agriculture.
As of 2008, the agricultural sector accounted for 25
percent of Haiti's GDP, a decline from 40 percent in the 1990s.
Agriculture employs two-thirds of Haiti's workforce. Haiti
spends 80 percent of its export earnings to import staple foods
like rice, sugar, and poultry. Yet, Haiti has 700,000 hectares
of unused or underutilized lands. Haiti can be growing and
producing these products itself as it did some 20 years or so
ago.
The rice, sugar, and poultry sectors, which have suffered a
loss of 831,000 farming jobs as a result of international
policies and agreements, represent between 47 to 50 percent of
Haiti's annual trade deficit. These sectors are the root causes
of Haiti's poor and endemic food security.
To this end, U.S. aid should be converted into U.S.
investments to focus on sectors that prioritize Haiti's actual
needs and capacities with an eye toward innovation and open
competition and with the unequivocal end goal of Haitian
economic self-sufficiency.
For example, the BioTek/Darbonne sugar mill project, which
we run, promotes the conditions needed that will catalyze
indigenous job creation and empower the Haitian people to help
themselves. The BioTek/Darbonne sugar mill project addresses
long-term solutions as presented by BioTek's optimization of
Haiti's only remaining operating sugar mill. The project will
rehabilitate 15,000 hectares of land which will increase sugar
cane yields, as well as farmers' incomes.
BioTek has also taken some basic cleaning of regional
watersheds to mitigate floods.
The mill has a production capacity to produce 100,000
metric tons of sugar per year and produce an estimated 12 to 15
megawatts of renewable energy that will service both the
region, as well as the capital of Port-au-Prince.
The project can also create 32,000 jobs.
The Darbonne sugar mill optimization is a prime example
that investments not aid are the key to Haitian economic self-
sufficiency. Haiti's agro-energy potential also lies in the
cultivation of specific agricultural species in particular
areas from which bio-oil can be produced and at the same time
help mitigate the devastating erosion the country is subjected
to. Such an initiative would help in the rehabilitation of the
country's collapsed watersheds and riverbanks.
In addition, the potential exists for a substantial amount
of waste to be converted into much needed compost, fertilizer,
and energy, thus helping to decrease the dependency on foreign
oil.
To progress, Haiti must be an active partner of the United
States and the international community by also assuming its own
responsibilities. Haiti must consciously aim to change much of
its internal political culture, as well as renegotiate existing
bilateral policies with international partners that strain and
impede internal domestic socioeconomic relations and negatively
impact economic growth.
The establishment of an enterprise fund and/or a
development bank will facilitate access to credit and will
boost local production in markets which will, in turn, result
in the gradual reduction of imports, thus increasing Haiti's
economic balance. The adoption of the CARICOM tariff average of
38 percent is another solution which can create sustainable
revenue streams to ensure progress long after foreign
assistance diminishes.
Similar approaches have also helped Eastern Europe and the
Dominican Republic to produce thriving societies with free
markets and political pluralism. This kind of innovative
thinking is what Haiti needs today. Haiti needs businesses not
programs and bureaucracy. Haitians need to see that they have a
stake in their own future, not merely a place in line for
handouts.
In conclusion, policy reforms and efforts to develop
Haitian businesses represent the essential fuel that is the
catalyst to private sector growth. Capital and not just money
of any sort but capital that is professionally deployed is
critical. In 1989, the U.S. Congress recognized this was
critical with the establishment of the Enterprise Funds to jump
start the Polish and Hungarian private sector. Similarly, a
Haitian development fund or an Enterprise Fund is critical to
Haitian private sector development.
There is an international consensus on the solutions that
will lead to Haitian economic prosperity. Let us then engender
the political will to move forward and to support Haitians and
their new President's call ``Haiti is open for business.''
Thank you.
[The prepared statement of Mrs. Simon-Barjon follows:]
Prepared Statement of Regine Simon-Barjon
introduction
Mr. Chairman, members of the subcommittees, I am pleased to share
and describe my experiences about what I have learned and observed in
working in Haiti prior to the earthquake and in its aftermath. The
Haitian-American Chamber of Commerce (U.S.) and my company, BioTek
Solutions/BioTek Haiti SA, has always been committed to Haitian private
sector development. I am eager to discuss solutions, models, and
strategies which could be instrumental in today's efforts of rebuilding
Haiti. I am also extremely gratified and happy to see that our
collective Haitian and Haitian-American voices are being heard.
Haitian immigrants have always constituted a very visible segment
of American society, dating back to before independence in 1804 and in
the years prior to the American Civil War, with Haiti contributing to
the American Civil War efforts. Many influential early American
settlers and black freemen, including Jean Baptist Point du Sable and
W.E.B. du Bois, were of Haitian origin.
The Haitian-American Chamber of Commerce, based in New York and
Florida serves as the advocate for the overall community as well as
resource for consumers and businesses dedicated to serving both the
needs of our members and the economic development needs of the broader
Haitian Community.
Today, of the 1.6 million Haitians and Haitian-Americans who
continue the tradition of contributing to the U.S. economically and
socially, are the 10 percent of African-American doctors, the same for
the 11 percent of African-American attorneys and 13 percent of African-
American engineers of Haitian origin.
The Chamber of Commerce represents U.S., Haitian, and Haitian-
American companies of diverse interests, such as Wachovia Bank and
Royal Caribbean Cruise lines as well as Sogexpress; Dr Kernisant's
Preferred Health Partners, the largest, privately owned, multispecialty
medical group in Brooklyn, NY, serves a patient population of over
150,000 and employs 175 medical professionals with 750 supporting
staff. Dr. Kernisant is also founder, president, and CEO of Simact, a
Haitian-American investment consortium. Simact has invested US$11.5
million in Haiti, including in their flagship, Le Cap Lamandou Hotel,
which employs 100 employees from the Jacmel region. Simact remains the
first hospitality business in Haiti to have signed a franchise
agreement with Choice Hotels International for both Le Cap Lamandou and
the future Belle Rive Hotel. Simact also owns a Mining company in
partnership with Canadian company, Majescor Resources presently being
traded on the Toronto Stock exchange. That entity alone employs 100
people in Trou du Nord, Haiti. SME members include Galerie d'Art Nader
and the law practice of attorney James Jean Francois.
We must also acknowledge the many Haitian-American public service
employees, whom though given the opportunity to earn large salaries in
the private sector or to become business owners themselves, prefer to
dedicate their services to the U.S. Government (USG).
It is therefore understandable that President Clinton stated ``that
given the right organization and support, Haiti could become a self-
sustaining and very successful country.'' \1\ Those same sentiments are
echoed by thousands of Haitians, including Mr. Pierre-Marie Boisson, a
respected Haitian economist and long-term advocate of Haiti's public-
private policy dialogue and the 2003 Harvard University recipient of
Public Service Innovator for his pioneering role in Haitian
microfinance. Mr. Boisson stated ``Haiti is a land of opportunity, if
only its citizens want to believe in it and start building their own
future. The real secret for removing Haiti from its depressing poverty-
dependency trap is to induce massive productive investments in the
economy. Attracting such investments is the only way to generate good
jobs and revenue for Haitians. It's the surest way for the State to
build a sizable fiscal base and thus regain its capacity to play a
meaningful role in society.''
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\1\ Bill Clinton, ``What Haiti Needs,'' Time, Jan. 14, 2010.
www.time.com/.../0,28804,1953379_
1953494_1953521,00.html.
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Mr. Joel Ducasse, President of Haitian Solidarity SA, a
reforestation and biomass energy company believes that recent U.S.
policy innovations present an improvement over the past, ``The USG has
made significant strides in the past 3 years in trying to reverse bad
economic policies [in Haiti] with a number of initiatives, by linking
the rural sector to Haitian economic sustainability and by encouraging
the `private sector' to invest in production instead of imports or
speculative activities; By bringing loans guarantees to would-be
investors; Efforts have been made to channel diaspora money into
productive activities; And, the introduction of Mobile Banking provides
an important tool to credit and banking to +80 percent of the
population who would otherwise not benefit from access to credit and
banking at all.''
impediments to haitian economic progress
Haiti's status quo has been ineffectual for 200 years. Haiti's
history of mismanagement and strife has resulted in a poverty rate that
climbs over 80 percent, continued reliance on diaspora remittances,
which represented between 23 and 30 percent of Haiti's gross domestic
product (GDP) in 2010; in addition to Official Development Assistance
(ODA) which also accounts for some 10 percent of GDP); \2\--While the
land is over 98 percent deforested and the topsoil washes away to the
sea. These ongoing conditions have created unprecedented erosion and
challenges to sustainable agriculture--which in turn has lead to the
massive urbanization of the capital, Port-au-Prince as well as an
overreliance on imports.
---------------------------------------------------------------------------
\2\ Johanna Mendelson Forman, 2011. Center for Strategic and
International Studies.
---------------------------------------------------------------------------
Additional economic constrictions, as presented by SAJ Group SA
CEO, Mr. Steeve Khawly, who imports various commodities, include:
1. Security, justice and the rule of law must be addressed;
2. Lack of available funding/capital or an institution
offering loans with better rates, conditions and adequate grace
periods;
Loans and affordable credit rates to both SMEs and large
impact sector companies: i.e., garment industry, agriculture,
energy, mortgages, construction and tourism industries;
3. Consistent dumping of goods into Haiti which undermines
local agricultural and other production;
4. Lack of infrastructure, such as Ports, Airports, Road(s)
and maintenance;
5. High tariff duties and various Port charges in Haiti vs.
that of other CARICOM countries, especially in comparison to DR
tariffs;
6. Lack of community building and development.
Haiti's three challenging sectors
Three (3) sectors exacerbate Haitian developmental progress:
agriculture, energy and lack of available credit.
All of these factors are interrelated and must be addressed to
redress Haitian economic decline and to significantly reduce
international aid dependency. The priorities of the United States, the
International Community, the Government of Haiti (GOH) and the Haitian
private sector must be to establish food and energy security and
greater access to credit/financing--both for Haiti's own internal
socioeconomic and political stability and to attract foreign investors.
Thus far, the Haitian business classes or Haiti's elites have gained
wealth chiefly through commerce, but have failed to invest meaningfully
in production enterprise. The new GOH must be able to encourage and
lead this transition from commerce to production, including foreign
investment.
The USG has been consistently supportive of Haitian productive
sectors, such as the garment and apparel sectors with the HOPE
legislations. The USG has also been fairly consistent and proactive in
regards to Haitian environmental protection, such as USAID (United
States Agency for International Development) Winner's irrigation
programs with the Arcahaie and Ennery watersheds. USG inconsistency
lies mainly in failing to link existing indigenous potentials which
have the ability and capacity to simultaneously impact in the immediate
and the long term more people, as well as the Haitian market economy.
An example is the recent U.S. Supplemental US$1.2 Billion Fund (one
of the best Haiti fund packages to date) is the categorically ignored
and bypassed province of Leogane, which was 90 percent destroyed during
the January 2010 earthquake and hosts Haiti's only remaining and
operating sugar mill. The Plaine de Leogane also supports over 100
alcohol and rum distilleries dependent on sugar cane cultivation/
production and thousands of farmers. The sugar cane industry IS a large
Impact Sector.
Agriculture
The USG has been promoting agriculture in Haiti for the past 15
years with limited success, despite large investments in this sector.
This sector's lack of success is due in part to USG reluctance if not
refusal to address Haiti's Major Agricultural Impact Sectors. As of
2008, the agricultural sector accounts for 25 percent of Haiti's GDP, a
decline from 40 percent in the 1990s.
Agriculture employs two-thirds of Haiti's workforce.\3\ Haiti
spends 80 percent of its export earnings to import staple foods like
rice and sugar and poultry. Yet, Haiti has 700,000 hectares (ha) of
unused and/or underutilized lands. Haiti can be growing and producing
these products itself as it did some 20 years ago.
---------------------------------------------------------------------------
\3\ Inter-American Development Bank (IADB) 2009.
---------------------------------------------------------------------------
These 3 products/sectors have suffered the direct loss of 831,000
agricultural farming jobs as a result of World Trade Organization (WTO)
and CARICOM trade policies represent between 47 to 50 percent of
Haiti's annual trade deficit.
Ongoing challenges impeding general and agricultural development
include the facts that only 1 in 10 Haitian farmers having access to
adequate seed stock, irrigation, or fertilizers; and only 4 percent of
rural households--generally farmers--have savings accounts, and only 11
percent report receiving credit.
Lack of investment and credit in Haiti's Major Economic Impact
sectors (rice, sugar, and poultry) contribute to the root causes of
Haiti's poor and endemic food security.
According to Mrs. Johanna Medelson Forman of the Center for
Strategic and International Studies ``Agriculture is a good place to
start given its importance to the Haitian economy'' to revitalize
Haiti's economy. Mrs. Mendelson Forman cited the example of the Coca-
Cola Company which was designed to diversify supplies for the Odwalla
beverage. The initiative Mango Tango will serve as a much-needed
catalyst for related infrastructure projects and investment deals.
For example, TechnoServe will provide technical assistance to grow
the crops more efficiently. Coca-Cola is working with the U.S. Agency
for International Development (USAID), the Inter-American Development
Bank (IDB), the Clinton Bush Haiti Fund, and local and international
actors to provide the financial underpinning for the project.'' \4\
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\4\ Johanna Mendelson Forman, Hardin Lang, Center for Strategic and
International Studies.
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Coca-Cola's example clearly shows the potential to optimize Haiti's
agricultural sector, but unlike Coca-Cola which can internally finance
such a program and has the resources to access international funding
institutions--many of Haiti's SMEs and its farmers do not have such
credit nor readily available access to either local or international
funding.
Agricultural revitalization and solutions
We have sought to present multiple solutions to Haiti's Major
Challenges using indigenous products and/or assets. This strategy
invites (a) local entrepreneurship at a lower financial [start-up]
cost; (b) reduces the amount of international aid necessary for program
implementation; (c) creates jobs; and (d) contributes toward Haitian
economic self-sufficiency. The primary challenges and solutions to be
adopted to ensure adequate Haitian food production and security are
(the below):
1. Irrigation
2. Seed banks and nurseries or agricultural research and development
centers for the distribution of viable and disease resistant
seed stocks
3. Application of fertilizer to ensure viable cultivation/production
output or harvests
The primary challenges and solutions to be adopted to ensure
adequate Haitian food production and security (shown above) are being
met in part by the Inter-American Development bank (IADB) with the
revitalization of seven of Haiti's main watersheds. These programs will
complement and optimize Haitian agriculture. These important components
will mitigate erosion; reduce flood risks, loss of life, property and
livestock as well as increase farmers' production yields and therefore,
revenues.
Capacity-building via the establishment of agroindustrial
partnerships will positively impact the environment and the market
economy. As a result, farmers will be more encouraged to cultivate/
produce for the larger public, beyond their villages. In addition, the
riverbanks can be cultivated/planted with dual-purpose value-added
crops (such as moringa, vertiver, and jatropha) for soil conservation
and to mitigate erosion as well as the production of bio-oils.
This multipurpose approach will serve to contribute to job
creation, the establishment of a local ``village based'' energy
production base which will provide affordable/accessible energy
resulting in reducing the use of charcoal which represents 16 percent
of peasant revenues.
Addressing the irrigation and environmental issues by making use of
alternative energy source geared toward Community Development and a
Sharing Concept creates strong vested agroindustrial partnerships
[between farmers and processors/industrialists]. The strategy to
cultivate/plant designated crops along Haiti's riverbanks eliminates
land tenure contentions and can be implemented immediately.
Agricultural research and development centers
The United States and the international community can support local
Haitian Universities and Agricultural Research and Development
Centers--of which there are only 20 ill-equipped operating with nearly
nonexisting funding in Haiti. Another option would be to gear funds to
NGOs with Haitian partners who work and operate outside of Port-au-
Prince in the agricultural and environmental rehabilitation sectors.
These AgResearch/Development Centers would be able to work with
their international partners (NGOs) to establish partnerships which
would result in local agroindustrial entrepreneurships. The centers
would develop local disease resistant, improved high yield seeds, which
in turn would increase and diversify farmers' income and contribute to
food security. Also, planting and cultivation would lead to
environmental conservation and would serve to mitigate and/or reduce
impact of natural disasters.
Major impact sectors
(1) Sugar cane and sugar
The Province of Leogane, which is the sugar cane cultivation/
production region of Haiti has one of the lowest yields of sugar cane
output in the Western Hemisphere with a range of 8 to 40 MT of sugar
cane per hectare--compared to up to 85 MT in other parts of Haiti and
[other] Latin American countries. For sugar cane as with other crop
cultivation/production, Haitian farmers have limited access to
fertilizer, consequently yields remain low.
The regional low yields result in low income for farmers and poor
cane and subsequently--poor sugar quality. Haiti produces on average 2
percent of its nearly 190,000 MT annual consumption, estimated US$117
million/year or 11 percent of Haiti's annual trade deficit. Sugar cane
remains one of the most important cash crop in Haiti.\5\
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\5\ Depending on market, import price, and even fuel/freight
fluctuations.
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BioTek's optimization of Haiti's only remaining operating sugar
mill, the Usine Sucriere Jean Leopold Dominique de Darbonne (commonly
referred to as the Darbonne Sugar Mill) in Leogane would directly
rehabilitate 15,000 hectares of existing sugar cane fields/plantations.
This will result both in the augmentation of sugar cane yields as
well as continued BioTek basic cleaning of regional watersheds to
mitigate flood risks. The Darbonne Sugar Mill has the production
capacity to produce 100,000 metric tons (MT)/year of sugar annually,
thus can displace 50 percent of Haiti's sugar imports and produce an
estimated 12 to 15 megawatts (MW) of renewable green energy to service
the capital, Port-au-Prince. The project will create 32,000 farming
jobs. The BioTek/Darbonne Project can in one scoop, provide a return on
investments that would contribute to food security for over 250,000
people (since each worker in Haiti cares and/or feeds 8 others),
increase regional Leogane buying power and contribute to energy
security and independence with electricity production from sugar cane
processing.
The Darbonne Sugar Mill optimization can is a prime example that
Investments not Aid are the key to economic self-sufficiency. A similar
project can be replicated in the North to service the already financed
and planned industrial park in Cap-Haitien to contribute toward the
energy requirements of that new facility--estimated at 25MW. Such
projects entrepreneurial development which would result from readily
available electricity.
Besides local sugar production, sugar cane cultivation promotes
environmental conservation and offers the potential for renewable
energy production/generation, such as Bio-Energy from sugar cane
bagasse (a waste product of sugar cane processing and sugar
production). The right investments in this sector will result in
greater energy accessibility and affordability, with offshoot benefits
supporting decentralization [of the capital Port-au-Prince), the
establishment of SMEs, foreign investments, health care and schools, as
well as increase GDP and create jobs.
(2) Rice
Haitian rice consumption is estimated at 467,000MT/9.5 million
people and produce only 12 percent of that total.\6\ Rice has comprised
the second-largest type of food aid to Haiti, in volume terms, both
globally and from the United States. Rice is the most important crop in
the food security debate in Haiti and plays a major role in influencing
national and regional politics. Much of this sensitivity arises from
the fact that the country was once nearly self-sufficient in rice
production, but now relies heavily on imports.
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\6\ Note: ``Average Consumption'' only reflects the sum of imports
and production, and lacks food aid contributions.
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If the United States and the international community were to invest
an estimated US$400 million of its aid funding toward the
revitalization of 100,000 hectares of rice fields/plantations, the
return on investment cost would be the creation of an estimated 250,000
agricultural jobs, production of an estimated 350,000 to 400,000 MT/
year of rice (conservatively)--while simultaneously ensuring
decentralization of Port-au-Prince. This investment would displace the
average annual U.S. aid to Haiti and the funds spent on food aid
programs in 3 years.
According to USAID, ``Locally produced rice is preferred by
Haitians over imported. However, given the significant price
differential between imported and the locally produced varieties--which
may cost as much as twice the price of imports at the retail level,
depending on location and seasonality--households have to carefully
balance their preference for locally produced commodities with their
binding budget constraints. This price differential has been
exacerbated by the reduction of import tariffs in 1996, and increase
production costs.'' \7\
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\7\ USA1D Food Program. Office of Food for Peace Haiti, 2010 Haiti
Market Analysis.
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The USAID Report also states that ``The purchase of imported food
commodities diverts resources away from Haitian producers, and a
significant share of the profits generated along the marketing chain
for imported commodities is captured by a small, collusive group of
oligopolistic importers of staple foods.
The team spoke with some of the local Haitian importers, who
confessed that their business practices would not be fair according to
U.S. standards. The report concludes that Haiti's top-level market
actors benefit from unregulated trade and challenge the entry of new
market actors.
Additional challenges:
The majority of key informants in the private sector do not
favor food distribution.
Food insecurity in Haiti is primarily due to limited cash
which constrains household capacity to purchase marketed food.
Local markets are fairly well-integrated, though in general,
the markets for imported commodities are more integrated than
for local commodities.
Poor transportation infrastructure increases the costs of
marketing, and thereby affects integration of markets.
Lack of to credit negatively impacts all players along the
entire value chain for locally produced commodities.
To sum it up--The USAID Report indicates that food insecurity in
Haiti is not caused by the lack of food availability. Clearly, the
private market has the capacity to meet localized food deficits.
However, this availability is heavily dependent on imported foods,
prices for which are subject to fluctuations in global food prices and,
more importantly in Haiti's case, to manipulation by the oligopolistic
firms that control an estimated 80 percent of Haiti's marketed food
supply. Based on available evidence, these firms engage in rent-seeking
behavior which results in unfair market prices for consumers.
These characteristics of the Haitian food supply create an access
issue among average Haitians, an estimated two-thirds of whom are
unemployed, and 50 percent of whom live on less than US$1 per day.
(3) Livestock, poultry, and eggs
This report will not cover poultry and other livestock for the sake
of brevity. But let the record note that poultry and eggs represent
imports estimated at US$185 million annually or 17 percent of Haiti's
annual trade deficit.\8\
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\8\ Numbers are based on preearthquake figures MFT SA, a Haitian
poultry/egg company.
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The Poultry/Egg sector's main impediment is not the ability to grow
chicken and eggs, but the inability to feed the chicken and eggs. The
poultry mills must import the feed--which they cannot afford. The
poultry industry's obvious solution is to grow the feed locally to sell
and to service both the human and poultry markets.
As with the other sectors showcased in this report, in order to
succeed the poultry industry also needs agricultural revitalization
with investments in the expansion of maize and other products to
survive and to thrive.
(4) Agro-solutions: converting waste to fertilizer and/or
compost
The Major Agricultural Impact sectors (rice, sugar, and poultry)
are interrelated and have the potential capacity to (a) optimize
Haiti's existing Agro-Energy nexus; (b) create thousands of jobs; and
(c) contribute to the reduction of Haiti's trade deficit while also
increasing GDP and the standard of living. Therefore, any genuine and
viable economic program must revamp these key sectors to revitalize
Haiti's economy.
Solutions, including converting waste to fertilizer and/or compost
can become vital employment and created entrepreneurship opportunities
in Haiti. Waste collection to be recycled and converted to fertilizer
and compost adopts an Integrated Resource Management approach which
makes use of indigenous or existing assets such as waste, including
Municipal Solid Waste to produce and yield a natural fertilizer with 10
times the nutrient content of composting. This results in the reduction
of the use of fossil fuel fertilizers (which Haitians can ill afford).
Haiti's capital produces between 1,600 to 2,000 MT of Municipal
Solid Waste (MSW)--of which 75 percent is food waste. This agricultural
waste product can be converted to fertilizer and/or compost and energy.
Preliminary evaluations from U.S. company, DCK, indicate that Port-au-
Prince's waste stream can produce an estimated 12 MW of electricity.
Therefore, allowing waste collection and processing to pay for itself
as well as improve food production with higher yields and create jobs.
The use of recycle MSW to produce fertilizer and compost is carbon-
neutral and can reduce Green House Gas emissions by up to 25 percent
according to Chris Corps of British Columbia's Simon Fraser University
and Royal Roads University.
Investing in Haiti means investing in Haitian agriculture
USAID [Report] emphasizes that ``the longer term solutions to
enhancing market performance and improved food security will depend on
overall investment in agriculture, infrastructure, and development of
income-generating opportunities, in the near term, continued cash and
in-kind support will be necessary to ensure basic needs are met in the
short and medium term.''
At first glance, per USAID, the availability of food, combined with
the lack of consumer purchasing power, suggests that increasing poor
households' income and therefore access to food is the logical answer.
According to USAID, longer term solutions to reducing food insecurity
will require reducing the dependence of the poor on the market in its
current structure.
But how can Haitians whose average earnings of US$1 to $2 per day
secure this purchasing power and/or develop income-generating
opportunities with competing and even subsidized products from the
United States and other countries?
Energy
According to Haiti's Ministry of Public Works, the Haitian
electricity deficit is estimated at 700 Megawatts (MW). Electricity is
generated nearly 100 percent from imported fossil fuels and represents
an estimated 27 percent of Haitian annual trade--nearly one-third of
the Haiti trade deficit, or +US$350 million per year (estimate based on
fluctuating market price).
Haiti fuel is provided 100 percent through an agreement between the
GOH and Venezuela via PetroCaribe. The PetroCaribe/Haiti cooperation
agreement sponsored by Venezuela offers a secure energy supply at
preferential financing rates to 17 Caribbean countries, including
Haiti. Under Petrocaribe's financing terms, Haiti can import 14,000
barrels of oil a day and has 3 months to pay for 60 percent of each oil
shipment, and 25 years to pay the balance at 1 percent interest.
The Haitian Electricity Company (EDH) has a dismal 169,000 clients
sporadically receiving electricity services in a nation of 10 million.
Businesses and more affluent Haitians are forced to fend for themselves
at a cost estimated to range between US$.75 cents to US$.85 cents per
kilowatt (KW) compared to the average U.S. retail electricity prices of
US$.12 cents/KW.
Haiti can optimize its agroenergy base and potential by making (a)
use of its existing assets: sugar and rice industries to produce
bioenergy from processing waste or biomass products; (b) rehabilitate
watersheds and rivers by cultivating specific agricultural species
along the [river] banks which will mitigate erosion and produce bio-
oils; and (c) there is also the potential of converting Municipal Solid
Waste (MSW) into energy.
Lack of readily accessible and affordable energy/electricity keep
wages low in many sectors, as much of Haiti's basic infrastructure
(i.e., water, transportation) is either highly cost prohibitive or
nonexistent. Energy shortages alone severely limit buying power, access
to education and technology and as a result impede educational
opportunities, productivity and return on human and capital
investments.
The EDH suffers chronic loss of +50 percent of electricity during
grid transmission as a result of theft, antiquated and poor
infrastructure, representing a financial loss of US$84 million/year).
Existing agricultural waste to energy options as seen in the
previous segment, along with Haiti's existing agroenergy potential can
provide consistent and lower cost electricity and can make a positive
impact on the Haitian energy market.
Credit/financing
This sector remains the most challenging for the Haitian Private
Sector because one cannot revitalize either agriculture or energy or
any sector without money. Credit and financing are nearly nonexistent
and depend a great deal on international financing agencies, for which
the qualification process can be so daunting to many Haitians that even
larger companies do not seek to apply, much less qualify.
A March 2010 survey of Haitian Small and Medium Business
Enterprises (SMEs) cited in the Haitian Presidential Commission on
Competitiveness Report of March 2010 found that access to affordable
financing ranked as a top priority in their efforts to re-start
operations in the aftermath of the earthquake.
Effectiveness of aid in Haiti
Despite widespread agreement that entrepreneurial innovation is the
engine that fuels economic growth and job creation, U.S. funding and
resources dedicated to cultivating Haiti's private sector have been
comparatively low. Since 1990, the USG has invested or donated US$4
billion in order to counter Haiti's dismal economic downfall, yet the
country remains the poorest in the Western Hemisphere. (U.S. Department
of State, Hill Briefing Notes, published in March 2010.) The donor
community has pumped in a similar amount--with little to show for it.
Many Haitians believe that these poor results are due in part to
the lack of support and USG funding targeted toward the private sector,
which over the past 15 years has totaled just US$163 million, with
roughly 42 percent of the total coming through during fiscal years
2009/2010, according to the U.S. Agency for International Development
(USAID).
According to the World Bank's Outlook for Remittance Flows (2010-
11), the diaspora officially sent $1.4 billion in remittances to Haiti
in 2008, and unofficially may have sent as much as $2 billion.
Remittances have now surged to US$1.8 billion officially. Additional
aid comes from an estimated 50 percent of American households to Haiti.
Private donations represented an estimated US$2.7 billion in the
aftermath of the earthquake. Yet, in spite of all of these billions of
dollars in aid and contributions, Haiti remains one of the most food-
insecure places on earth with 58 percent of Haitians lacking adequate
access to food, which equates to 5.2 million people.
Though Haiti has benefited from roads, hospitals, and the
revitalization of many of its sectors from U.S. aid, we, in the United
States must acknowledge that if for every US$100 of USG Aid to Haiti,
US$98.40 returns to the United States, then we cannot expect a better
return on investment than that represented by the limited results to
date.
Therefore, it is time to rethink and redefine U.S. development
assistance approach to Haiti--and it is imperative that the United
States, the international community (or Haiti's financial partners) and
Haitian actors themselves adopt and implement solutions that redress
unfair international policies and local impediments that have caused
endemic Haitian economic failure. Per Mr. Bracken Hendricks of the
Center for American Progress ``The global community must ensure that
the reconstruction of Haiti's infrastructure increases economic
resilience by adding value to existing indigenous assets.''
The U.S. and Haiti's other financial partners should implement an
approach based on investment which demands better accountability and
expect future ``Return on investment'' in the form of establishing and
contributing toward a self-sufficient economy--where Haitians have
actual buying power. This strategy will save the United States billions
of tax dollars in aid funding in the long run and create an
economically self-sufficient Haiti.
Dr. Philip Auerswald's of George Mason University: ``Haiti's path
to prosperity does not run through the halls of aid agencies, but from
seed to harvest.''
If the international community is at a loss regarding Haiti,
Haitians themselves are quite sure of what they want. Respondents to an
Oxfam America survey of people affected by the earthquake ranked
support for local food production among the four most important
assistance interventions (along with job creation, education, and
shelter).
background: haiti's not without resources
Senator Lugar's Haiti report states ``In a nascent economy like
Haiti's, growth is driven by new business formations. This occurs in
the service sector especially (restaurants, hotels, and corner stores)
but also in the broad array of businesses that support entrepreneurial
expansion. Historically, entrepreneurial instincts among Haitians have
recognized these economic needs and the broad promise that business
development offers the Haitian people, especially regarding job
creation.''
Haitian agriculture is at the very fabric of Haiti's potential to
revitalize its economy. And, to understand Haiti's agricultural
struggle today and the current sensitivities surrounding certain
commodities, one must acknowledge two primary factors which resulted in
Haiti's agricultural decline: the trade embargo imposed on Haiti in the
early 1990s, and the trade liberalization which began in the mid-1990s
under the Structural Adjustment Programme.
According to the USAID Office Food for Peace, Haiti Market Analysis
Report (August 2010) Until the first half of the 1980s, tariff barriers
protected Haitian agriculture from foreign competition. Customs duties
were relatively high to discourage imports.
Many Haitians believe that Haitian agriculture decline began in the
1980s as opposed to the 1990s with the massive importation of rice and
other agricultural commodities. The adopted strategy by the then-
Duvalier regime was the sporadic suppression of the sale of local rice
production [and subsequently of the farmers] in favor of imports.
Though, this practice was sporadic indeed, the laws to benefit those in
the rice and other import industries did not officially take effect
until the implementation of the World Trade Policies (WTO) and CARICOM
agreements, and were further exacerbated by the 1990s trade embargo.
The embargo imposed on Haiti from 1992-1994 destroyed the Haitian
agroindustrial base and caused the loss of 200,000 jobs as per the
Lugar report, mainly in the factories. For example, the Darbonne Sugar
Mill which was opened in 1983 and promptly closed some 3 years later by
then Minister of Finance Delatour who thought it more economical to
import sugar. The embargo also limited the availability and even access
of fertilizer to farmers.
Under the recommendations of the International Monetary Fund and
the World Bank, important trade barriers were removed in 1995 as part
of a Structural Adjustment Programme, making Haiti the most open
economy in the region and tremendously increasing the country's imports
of agricultural products. Trade liberalization removed protections for
domestic commodities and encouraged an increase in imports, many of
which directly or indirectly competed with domestic commodities.\9\
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\9\ USAID Office Haiti Food for Peace, Haiti Market Analysis.
August 2010.
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Although the trade embargo was lifted the next year (1996), local
production continued to struggle. This struggle continues today. While
locally produced agricultural commodities are abundant on markets
immediately after harvest, domestic producers are unable to meet
increasing demand from a growing population for relatively inexpensive
cereals. This is especially true for rice, which has become an
important staple in the local diet.
The Artibonite is regarded as Haiti's Bread Basket and Leogane
regions' pertinent agricultural sectors (rice and sugar) have the
potential for the creation of an estimated 132,000 agricultural jobs in
the rice and sugar. Haiti went from being self-sufficient in the
production of rice, sugar, poultry, and pork to becoming the fourth-
largest importer of subsidized U.S. rice in the world and the largest
importer of foodstuffs from the United States in the Caribbean.
In the 1970s, Haiti imported just 19 percent of its food. During
that decade, the USG, World Bank, and International Monetary Fund began
creating development plans designed to spur growth in the country's
manufacturing sector and to move large parts of the workforce into
urban communities. As part of the strategy, GOH lowered the country's
tariffs for food imports to as low as 3 percent, while the United
States raised barriers to exports from Haiti. (Note: the Caribbean
average is 38 percent).
Even USAID's WINNER program which looks like a great use of U.S.
taxpayers' money focuses on crops such as mangoes, lettuce, cabbage,
and peppers. Accordingly, WINNER's 5-year Monsanto seed donation and
distribution program to almost 400,000 Haitian farming families
establishes further dependency on U.S. taxpayer-funded programs and
ignore a problematic reality and obvious solutions.
But even if USAID wanted to invest money in helping Haiti to become
self-sufficient in rice or sugar production, the agency is prohibited
from doing so by the Bumpers amendment. The law prevents USG aid from
being spent on programs that could benefit crops that might compete
with American exports on the global market. As then-Senator Dale
Bumpers, D-Ark., said in 1985, the law is designed to ``prevent
American tax dollars from being used to help foreign countries who are
trying to take our export markets.''
It is the reason why farmers are only eligible for USAID funding if
they were growing lettuce or mangoes rather than rice or sugar.
Mangoes, which barely accounted for US$15 million exports in 2009 and
cabbage are not going to change the negative balance of trade in favor
of Haiti. It's not going to allow agriculture to become a mainstay for
the majority of Haitian farmers. Mangoes and cabbage will not
contribute to food security in Haiti.
The USG has taken steps to remediate the disparities in the banking
sector with the introduction of Mobile Banking. This initiative, which
was introduced in January 2011 is a viable provision of accessible and
affordable banking to any Haitian with a cell phone--a technology which
promises to be very popular, prevalent, and accessible to nearly all
Haitians.
Likewise, the new GOH must also provide the leadership and focus
necessary to the Haitian-American diaspora and the numerous NGO
operating in Haiti to encourage collaboration, share expertise in
priority sectors, including training/education, health care and
agricultural industries.
how can private investment facilitate the reconstruction?
For Haiti's reconstruction aid to be effective and sustainable,
however, Haitian entrepreneurs must also be included and empowered like
never before to ``buy-in'' and participate in the rebuilding of their
own country.
With the understanding that long-term social, political, and
economic success lies with the creation of viable businesses that
create jobs and contribute to bottom-up economic development models
that are beneficial for all parties, substantive joint efforts must
articulate, define, design,and map out a strategy with a specific focus
toward the establishment of a Haitian Enterprise Economy.
To this end, U.S. aid should be effectively converted into U.S.
investments to better focus on sectors that prioritize Haiti's actual
needs and capacities--with an eye toward innovation and open
competition--and with the unequivocal goal of Haitian economic self-
sufficiency.
Mr. Boisson words are spelled out succinctly in Senator Lugar's
July 2010 report ``Without Reform, No Return on Investments in Haiti.''
\10\ The report states ``Promoting conditions that will catalyze
indigenous job creation can empower the Haitian people to help
themselves and is a sustainable approach to foreign assistance. It is
in our national interest to see Haiti emerge as a commercial partner.''
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\10\ lugar.senate,gov/issues/foreign/lac/haiti/pdf/investment.pdf.
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For this to occur, it will be necessary for the United States and
the International Community to provide the pledged financial and
technical support to rebuild Haiti better, including the strategic
investment of U.S. aid packages to contribute toward Haitian economic
self-sustainability for the success of donor assistance programs.
Mr. Iglode Anglade, a former police officer turned driver in Port-
au-Prince, to better support his family which includes his three
unemployed siblings, stated that ``jobs are the key to rebuilding
Haiti.'' Mr. Raymond Lerebours, a farmer and agroentrepreneur who runs
a modest coffee and cacao triage company and who has worked for local
agro-industrial companies and Mr. Marc-Antoine Acra, General Director
of INMETAL SA/NABATCO SA whose company is heavily vested in the import
of commodities and some minor local agricultural projects, all agree
``Haiti needs a Development Bank.''
Mr. Acra added that a means to jump-start the Haitian economy is to
start by authorizing the existing ``Centre de Facilitation
D'investissement'' (CFI) or Investment Facilitation Center to become a
one-stop shop which would service all the requirements to establish a
business in Haiti. Mr. Acra also strongly supports the need to regulate
imports in order to protect local producers and investors by stopping
contraband, dumping and to establish and enforce Haitian corporate and
social responsibilities.
Even before the earthquake, Haiti had reached a cross-road and was
bursting with a thirst for change. Haitians must forge a future with
the goal toward economic independence which actively moves Haiti off
U.S. and international aid toward implementation of balanced internal
and international policies. Haitian leaders must understand that the
status quo of wealth via international aid no longer applies.
Haiti is fortunate to have examples of proven economic development
models and solutions as those used by Brazil and other developing
countries. Such models can be customized to fit Haiti's actual
realities, capacities, needs and growth potential.
Examples of internal Haitian solutions would be to work and to
educate the miniscule number of large food importers in the Major
Agricultural Impact Sectors (rice, sugar, and poultry) to invest in
local production and/or to buy local products--thus, establishing
vested agroindustrial partnerships by allowing farmers or members of
the informal economy to actively contribute to the overall economy.
More importantly yet, would be initiatives that support micro and
SME financing to small farmers increasing local production for local
consumption, while creating viable agrobusinesses that also create
local jobs.
This would significantly increase the informal sector's buying
power--currently estimated at some US$4 billion--and result in
increased tax revenues to the State, increased GDP and improve the
standard of living.
Haitian economic independence means direct U.S. adoption and
implementation of viable and tangible goodwill toward Haitian farmers--
which will positively affect Haitian food production and security.
According to Dr. Phillip Auerswald's of the School of Public Policy at
George Mason University, ``It's unambiguous that when you dump
agricultural produce in a country at a price that is well below what
farmers can reasonably produce that same output, you're going to
destroy economic incentives for that industry to exist.''
But Haiti's dismal industry and infrastructure can now be
capitalized upon, if as outlined in Senator Lugar's report ``the
reconstruction efforts are to be successful, Haiti must move decisively
to address key political and business impediments, which are
threatening the reconstruction effort and making Haiti an even less
attractive place for foreign investment.
``For example: Ensuring transparent and modernizing the property
titling system, and reducing barriers confronted when attempting to
start and operate a business in Haiti should be among the key
priorities. In this regard, the U.S. Government should expedite funding
and technical assistance in response to and in support of such reforms.
However, if reforms in this direction do not occur, American taxpayer
investments in Haiti, beyond essential humanitarian aid, should be
reassessed.''
To progress, Haiti must be an active partner of the United States
and the international community by also assuming its own
responsibilities. To this end, Haiti must consciously aim to change
much of its internal political culture--as well as renegotiate existing
bilateral policies with international partners that strain and impede
internal/domestic socioeconomic relations and negatively impact
economic growth.
The example of the DR Development Bank which successfully raised
funds in part by using the USDA's U.S. Export Credit Guarantee Programs
(GSM-102 and GSM-103) can pump up to US$2 billion into the Haitian
economy (figures based on current imports). The capital raised can be
invested in the public and private sector development.
A Development Bank and/or an Enterprise Fund can consolidate USG
economic policies for Haiti and allow better control of the import
market to Haiti. This would result in the gradual reduction of imports
as local agricultural production increases. Haiti should also adopt the
CARICOM tariff average of 38 percent to allow its own market to grow.
These solutions would provide the opportunity to replicate the DR
Development Bank model, whereby, the funds saved would create
sustainable revenue streams that will ensure Haiti's progress long
after foreign assistance diminishes.
Enterprise funds created in the 1990s for Eastern European
countries are a tested model and have demonstrated examples of roadmaps
for local SME development that can help to create robust economies
fueled by a strong private sector.
Establishing credit and financing: The Haiti Enterprise Fund
Senator Lugar's Haiti Report cited a lack of Capital Investment as
the primary impediment to Haitian economic Progress. The report also
stated that preearthquake, Haiti's primary interest rate was the
highest in the region. Though, rates have significantly been reduced in
the aftermath of the earthquake as a result of the backing of
international financing institution, the lack of capital investment
continues to be a handicap to the private sector.
To meet this challenge to private sector development, the United
States, the international financing institutions and Haiti should
establish and implement a Development Bank and/or Haiti Enterprise
Fund.
The Haiti Enterprise Fund can be underwritten by the USG, rolled
over and provide increasing leverage beyond the amount initially
invested. Through its activities at the microeconomic level, the Haiti
Enterprise fund can contribute to an improved business climate and
ecosystem for investing and lending also becoming a tool to promote
Public-Private Partnerships (PPP) and to create the foundation for a
stable economy in Haiti.
This demonstration effect would also provide assurances for the
banks and contribute significantly to reduce and/or to lower the high
interest rates. Because the majority of the fund will be repaid, the
fund can be underwritten by the USG and rolled over, thereby increasing
leverage beyond the amount of the rolling fund. The Haiti Enterprise
Fund can be a tool to promote Public-Private Partnerships and to help
create a stable economy in Haiti.
Mr. Francis J. Skrobiszewski is the former vice president of the
Polish-American Enterprise Fund and vice president of the Hungarian-
American Enterprise Fund and who assisted in that fund's restructuring,
and is lending support for the Haiti Encouragement Act of 2010, noted
in his March 2010 congressional hearing testimony that ``Successful
examples of enterprise and capacity-building are demonstrated by the
transformational experiences in Central and Eastern Europe (CEE) and
Southern Africa which indicate that motivating the indigenous private
sector can best be accomplished on a business-to-business basis using
the proven models of the Enterprise Funds.
``To build local businesses and to demonstrate the merits of a
market economy, these innovative financial vehicles successfully
provided developmental capital on a commercial basis under difficult
conditions to many thousands of emergent entrepreneurs. Sustainable
reconstruction can expand opportunity by investing in local
entrepreneurs and supply chains that build Haitian industries.''
Programs and solutions can be adopted to create jobs for Haiti's
over 67 percent unemployed which includes Haiti's rich pool of young,
dynamic, and often trilingual human resource capital--while
simultaneously addressing food and energy security in the short and
long terms to maximize the country's economic potential.
As stressed in a February 2010 Forbes op-ed ``Priming the pump of
private capital and promoting free market mechanisms so Haitians can
create sustainable jobs for one another will help ensure a quick and
sustainable recovery. Haiti needs business, not programs and
bureaucracy. Haitians need to see they have a stake in their own
future, not merely a place in line for hand-outs.'' \11\
---------------------------------------------------------------------------
\11\ ``Haiti Needs Business, Not Bureaucracy.'' Forbes, February
17, 2010. http.//forbes.com/2010/02/17/Haiti-earthquake-private-sector-
business-opinions-contributors-francis-skrobiszewski-roger-noriega
print.html).
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This very approach helped Central and Eastern Europe rise above the
bankruptcy of communism to produce thriving societies with free markets
and political pluralism. The challenges there, after 45 to 70 years of
operating under Soviet Marxism, were daunting. And while opportunity in
the CEE was unparalleled, there were no roadmaps. But there was
innovative thinking, which could be replicated in Haiti today.
conclusion
Nearly 18 months have passed since Haiti's devastating earthquake,
and thankfully, much humanitarian assistance has been provided by the
United States, but also much time has been lost in putting in place
mechanisms that do more than alleviate the symptoms, but also are
needed to cure Haiti's ailments at its roots.
Policy reforms and efforts to develop Haitian SMEs represent the
essential ``fuel'' that is the catalyst to private business growth.
``Capital'' and not just money of any sort, but capital that is
``professionally deployed'' is critical. In 1989, the U.S. Congress
recognized this was critical with the establishment of the Enterprise
Funds to ``jump-start'' the Polish and Hungarian private sector fund
and S. 954 is designed to do the same.
The examples shared in this report reiterate the need for solutions
that have been successful and that will create jobs and meet the short-
and long-term structural needs of Haiti. These solutions articulate and
design a road map that can contribute to ``the right organization and
support needed by Haiti to effectively become a self-sustaining and
very successful country'' per President Clinton.
The very establishment of the National Fund for Education (FNE) by
Haiti's new President Michel Martelly is a first step toward Haitian
economic self-sustainability.
The fund which is a multisectoral consortium which groups the GOH,
the private sector, international financial institutions and
nongovernmental organizations (NGOs) is chiefly composed of a 5 cents
deduction on incoming international phone calls and $1.50 on
international money transfers.
The Fund will allow 350,000 children to go to school in the first
year, according to UNESCO, and a total of 1.9 million children are
expected to benefit overall.
The NFE is a clear example of innovative financing ``independent of
the traditional aid venues.''
President Michel Martelly along with the Haitian-American Chamber
of Commerce (U.S.), Haitian business leaders and friends of Haiti--many
of whom are present here today--have issued a collective invitation to
the U.S. and the International Community with the call ``Haiti is open
for Business.''
In the aftermath of the earthquake, Haitian-Americans have seen the
positive impact that ``good'' U.S. responsibility and leadership which
can be had with SouthComs' search and rescue efforts and subsequent
restarting of Haiti's manufacturing base, estimated at US$350 million
for 2010. The latter benefited from direct U.S. legislations such as
HOPE I and II and the more recent Haiti Economic Lift Program (HELP)
Act meant to enhance trade preferences for Haiti and providing Haitian
apparel exports duty-free access to the U.S. market.
The Haitian economy will experience another boost with the Cap-
Haitien Industrial Park to open in 2012 with the Korean apparel firm
Sae-A Trading, providing fabrics to Gap, Walmart, Target, and others,
set to become the largest private-sector employer in Haiti. The Cap-
Haitien project, also includes transportation infrastructure,
construction and will create thousands of jobs and will make Haiti more
attractive for investors.
We also have a Haitian, U.S., and international consensus on the
solutions that will lead to Haitian economic prosperity. Let us then
engender the political will to move forward and to support and assist
Haiti's new President Martelly's call and that of all of the Haitian-
Americans clamoring for change by placing--or better yet by
``investing'' our tax dollars on a business-to-business basis in
sectors that will incrementally contribute to replace and to displace
U.S. and international aid and create a ``two-way'' viable and new
equitable commercial partner for the United States: Haiti.
Senator Menendez. Thank you.
Mr. Sassine.
STATEMENT OF GEORGES BARAU SASSINE, PRESIDENT, ASSOCIATION OF
HAITIAN INDUSTRIES, PORT-AU-PRINCE, HAITI
Mr. Sassine. Chairman Menendez, Chairman Cardin,
Representative Hastings, I thank you for the opportunity to
offer my perspective on rebuilding Haiti as we begin a new era
under President Michel Martelly. Please allow me to briefly
describe the particular responsibilities for the economic
development efforts which reside with ADIH and CTMO-HOPE.
First, the Association des Industries d'Haiti, or ADIH, of
which I am the president, represents the majority of the
manufacturing sector in Haiti, including some of the largest
employers in the country, particularly in the private sector.
Second, in 2007, the government established the
Presidential Tripartite Commission on HOPE, or CTMO-HOPE, for
which I am the executive director, and this commission is
responsible for coordinating many aspects of trade with the
United States, including the HOPE Act, which provides duty-free
U.S. market access to many Haitian-made apparel products.
I will describe some of the key successes and the
trajectory of the HOPE program, and then I will describe how
the HOPE program is spurring a multistakeholder international
effort to expand the infrastructure in Haiti necessary to
encourage new direct investment in apparel and other sectors.
Both the HOPE program and the extension of manufacturing
infrastructure are key priorities of the new government of
President Martelly.
As you know, the U.S. Congress accelerated and maximized
the benefits of the 2006 HOPE Act through legislation in 2008
called HOPE II, and following the 2010 earthquake, Congress
reacted swiftly to enact a second amendment to HOPE called the
HELP Act.
The amended HOPE program has helped Haiti's apparel export
industry to increase from approximately $450 million to the
United States in 2006 to approximately $600 million currently,
and we are now growing at an annual rate of 20 percent.
Employment in the apparel sector in Haiti has also shown
strong growth. Prior to enactment of the HOPE I program in
2006, employment in the apparel sector stood at about 12,500
workers and this recovered to some 23,000 workers in 2008 when
HOPE II program was enacted. Today the sector employs over
28,000 workers.
The HOPE program has also benefited the U.S. textile
sector. U.S. textile exports to Haiti have increased 39 percent
during the last year to nearly $33 million.
As described, the HOPE program is an unquestionable
success. However, we are only just beginning to capitalize on
its potential. Every day I field phone calls from potential
investors who want to begin new apparel production in Haiti.
Unfortunately, I have to tell them that the sector is at
capacity and that there is simply no additional manufacturing
space to offer right now. I admit this is a good problem to
have, but if this problem persists for too long, then buyers
will begin to look elsewhere.
To address this issue, we are working to increase the
capacity of Haiti's manufacturing sector through an
international strategy coordinated with the United States and
major international institutions. The focus of our combined
efforts is the construction of two major industrial parks in
Haiti, one in the north and a second outside of Port-au-Prince.
Each park would be capable of more than doubling Haiti's
existing manufacturing capacity and supporting 25,000 to 50,000
jobs. The northern industrial park project was launched in
January and will be operational by the second quarter of 2012.
In addition, we expect this industrial park development and
the associated infrastructure to catalyze developments in other
sectors such as tourism and agriculture. For both parks, the
U.S. Government has made a commitment to provide infrastructure
support such as electricity and worker housing.
In the meantime, we are working with the Inter-American
Development Bank to expand the existing industrial park in the
Port-au-Prince area with the addition of five more factory
shells that could be used to create a minimum of 2,500 jobs.
The World Bank is supporting our efforts by funding CTMO-HOPE
through trade missions to foreign countries, including Korea
and Brazil, where we discuss opportunities to utilize the HOPE
program. The trips have resulted in the commitments of foreign
direct investment in Haiti's apparel sector that will occur
upon completion of the industrial parks.
To address the need for more skilled workers, the Haitian
Apparel Center is training new operators and managers. The
Haitian Government donated the main building, and through a
USAID grant, the center has already graduated 2,000 trainees,
most of whom have been hired by existing factories.
In the very near future, the Haitian sector could expand at
a rapid rate and fortunately we have a mechanism in place such
as the ILO Better Works program to ensure the industry grows in
a sustainable and socially compliant manner.
Let me offer a few concluding thoughts about our existing
challenges and how we may build upon our partnership with the
United States.
The majority of Haiti's economy remains in the informal
sector. Strengthening Haiti's customs capacity could help bring
more commerce into the formal economy. We believe also in the
capacity of state institutions is a priority and is an area
where U.S. assistance is needed and would be well invested.
Haiti's trade and customs institutions were weak even before
the 2010 earthquake, and today they are barely back online.
It would also be most appreciated if the U.S. Congress and
the U.S. Government would relay the success stories of the HOPE
initiative to other regional trading partners, in particular to
the Governments of Canada and Brazil, both of which are
considering amendments to their trade preference laws to
provide Haiti enhanced access to the apparel and textile
markets. Such programs will not only benefit Haiti but could
offer new alternatives for U.S. businesses that export textiles
and other raw materials to Haiti.
In addition, as included in the HOPE II legislation in
2008, we believe that it would be a win-win opportunity if the
U.S. Department of Commerce were to implement this year the
recommendation of the Congress that a high-level trade mission
be organized to Haiti.
We would also recommend that the U.S. Congress give
favorable consideration to several other important pending
proposals, including Senator Lugar's Haitian-American
Enterprise Fund; Senator Durbin's Haiti Reforestation Act; and
Senator Gillibrand's Haitian Emergency Life Protection Act.
Although our challenges are not behind us, we see a
brighter future and greater opportunities coming every day. I
cannot express enough appreciation to the U.S. Congress and to
the U.S. Government for the assistance to Haitian
reconstruction efforts and the outpouring of support following
the 2010 earthquake.
Hopefully one day soon, I can return to Congress to report
that the HOPE program has reached its capacity, and what we
need is an extension of it. On that day, we will know Haiti's
economic recovery will be a reality.
Thank you.
[The prepared statement of Mr. Sassine follows:]
Prepared Statement of Georges Barau Sassine
Chairmen Cardin and Menendez, Ranking Members Corker and Rubio, and
distinguished members of the Foreign Relations Committee, thank you for
the opportunity to offer my perspective on rebuilding Haiti in the wake
of the January 2010 earthquake in Port-au-Prince, and how the new
government of President Michel Martelly can work with the United States
and the international community to further our progress.
The Haitian public and private sectors are embracing what is
described as the need for a Growth Revolution in Haiti, which is a
national economic strategy driven by the Private Sector Economic Forum.
Recently, Mr. F. Carl Braun, chairman and CEO or Unibank, spoke to the
Inter-American Dialogue to outline the obstacles and opportunities in
pursuing the Growth Revolution strategy. He outlined that the goal of
the strategy is to create by 2020 a Haitian economy that is
``diversified, environmentally sustainable, competitive, vibrant,
decentralized within the country and integrated into the global
economy.''
The pursuit of the Growth Revolution strategy in Haiti is extremely
difficult because it will require the support and coordination of not
only the public and private sectors, but also of the NGO community, the
international community, foreign direct investors, and the Haitian
people themselves. To succeed, all parties need to engage with each
other with common purpose and commitment.
As Mr. Braun explains, ``the international community must deliver
upon their financial promises, and not promise what they cannot
deliver; they must provide more qualified human resources with a deep
sense of commitment to, and a greater interest in and a greater respect
for, the Haitian people.''
``The Haitian private sector sees foreign direct investment as a
sine qua non condition for the Growth Revolution, and welcomes it with
open arms, but we wish to see a level playing field where all
investors, domestic, foreign and Haitian diaspora are treated equally
and fairly.'' While many of our efforts may seem to focus on luring
foreign capital into Haiti, I must emphasize that a central tenant of
our Growth Revolution strategy is to use Haitian resources, sustain and
grow domestic investments, and increase national capital.
adih & ctmo-hope
At this time, please allow me to briefly describe the particular
responsibilities for the economic development efforts which reside with
ADIH and CTMO-HOPE.
First, the Association des Industries d'Haiti, or ADIH, of which I
am the president, represents the majority of the manufacturing sector
in Haiti, including some of the largest employers in the country,
including in the apparel sector. We are consistently asked by my
government to provide input and recommendations regarding needed
policies, laws, and international assistance that would help spur
economic activity, investment, and job growth in the private sector.
A single apparel factory can employ thousands of workers, and
thereby support entire communities. New apparel orders from foreign
buyers can add jobs almost immediately, and new foreign investments in
brick-and-mortar apparel factories can be a catalyst to sustainable
economic vitality. This dynamic explains why the Haitian Government and
private sector are focused on making Haiti a more attractive market for
international apparel buyers and investors through internal legal and
regulatory reforms and external efforts to facilitate trade, including
through the Haitian Hemispheric Opportunity through Partnership
Encouragement Act, or HOPE Act, which provides duty-free U.S. market
access to many Haitian-made apparel products.
Second, in 2007 the government established the Presidential
Tripartite Commission on HOPE, or CTMO-HOPE \1\, for which I am the
Executive Director, and the Commission is responsible for coordinating
all aspects of implementation, operation, and international marketing
of the HOPE trade program with the United States. In this capacity the
Commission acts with the authority of the Haiti Government. The
Commission is tripartite because it consists of representatives from
the public sector, private sector and labor movement.
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\1\ Commission Presidentielle Tripartite de Mise en CEuvre de la
Loi HOPE.
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CTMO-HOPE helped facilitate the successful implementation of the
HOPE program, which put the Haitian apparel sector back on the
international production map. Part of the HOPE program implementation
included a modern electronic export visa system called ``ELVIS'', which
was developed through a USAID grant. The ELVIS system is attractive to
foreign investors because it streamlines the export process and assures
against any possible transshipment allegations or other types of
commercial fraud.
Then, from 2007 to 2010, CTMO-HOPE worked with U.S. congressional
and government officials on targeted amendments to the program that
helped to accelerate and maximize the benefits. In 2008 Congress
enacted the first amendment, called HOPE 11 \2\, and following the
January 2010 earthquake, Congress reacted swiftly to enact a second
amendment to HOPE, called the HELP Act \3\. Each amendment expanded the
products eligible for duty-free benefits, and also enhanced the overall
capacity and duration of the program to instill longer term investor
confidence in the program.
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\2\ Haitian Hemispheric Opportunity through Partnership
Encouragement Act of 2008.
\3\ Haitian Economic Lift Program of 2010.
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The government of President Rene Preval prioritized the successful
implementation and expansion of the HOPE Act from 2006 to 2010, and the
apparel sector remains a cornerstone of the country's economic
revitalization strategy for the new government of President Martelly.
Now I will describe some of the key successes and trajectory of the
HOPE program, and then I will describe how the HOPE program is spurring
a multi-stakeholder international effort to expand the infrastructure
in Haiti necessary to encourage new direct investment in apparel and
other sectors, such as tourism and agriculture.
success of hope
Special trade preferences have proven to be a highly successful
method for supporting the Haitian economy, creating employment, and
improving the lives of many Haitians. Beginning with the Caribbean
Basin Trade Partnership Act reforms implemented in 2000, improved
access for Haitian apparel in the U.S. market has provided
opportunities and jobs for workers in Haiti. Both the CBTPA and HOPE
trade preference programs have proven to be of great importance to
Haiti and an illustration of effectively implementing ``trade not
aid.''
With each successive set of improvements to Haiti's access to the
U.S. market, Haiti has increased production and exports. Under CBTPA
Haitian exports of apparel to the United States nearly doubled from
$250 million in 2000 to $450 million in 2006. The HOPE program was a
``game changer'' for Haiti's apparel sector, as Haitian exports have
surged to $600 and continue to grow at more than 20 percent annually.
Virtually all Haitian apparel trade is shipped under the special trade
preferences provided by U.S. legislation.
[GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT]
As the Haitian apparel sector builds on the foundation first made
possible under the CBTPA program, Haiti is now seeing the benefits from
the HOPE modifications that have allowed Haiti to expand on the mix of
products we are able to offer. In the past under the CBTPA program, the
bulk of Haiti's production has been in lower cost, lower value added
items such as T-shirts and underwear. Today, using the HOPE preferences
Haitian businesses are making great strides in expanding production of
better quality, higher fashion garments. During the past 2 years, and
despite the devastating set back from the January 2010 earthquake, we
have seen extraordinary growth in products such as men's woven manmade
fiber shirts, up 43 percent; men's man-made fiber trousers, up 39
percent, and men's wool suits, which have more than doubled to more
than $4 million. These are much higher value added products and require
more and higher skilled workers to produce.
[GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT]
Employment in the apparel sector in Haiti has shown remarkable
growth. Prior to enactment of the HOPE I program in 2006, employment in
the apparel sector stood at about 12,500 workers, and this recovered to
some 23,000 workers in 2008 when the HOPE II program was enacted.
Today, the sector now employs over 28,000 workers. Most of the
additional jobs since 2006 are directly linked to the HOPE program. As
we rebuild from the devastating earthquake, these jobs are invaluable.
As our production continues to grow, and there are now some 28
factories operating in Haiti, we will expand on this success and
employment will grow concomitantly.
[GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT]
It is also important to note that the HOPE program and its
amendments were also crafted to support the interests of the U.S
textile sector--and that is happening. U.S. textile exports to Haiti
have increased 39 percent during the past year to nearly $33 million.
U.S. textile exports to the Dominican Republic, a significant component
of which ends up in fabrics that are sewn into apparel in Haiti under
the various preference programs, have also increased 35 percent to an
annual level of nearly $600 million. The island now accounts for over
11 percent of U.S. textile exports and is the largest growth market for
the U.S. industry. In short, the HOPE program has truly been a ``win-
win'' for both Haiti and the United States.
foreign investment and industrial capacity
As described, the HOPE program is an unquestionable success.
However, we are only just beginning to capitalize on its potential.
Thanks to HOPE the sector is thriving near its maximum capacity given
the current industrial capacity in Haiti. We could be producing more
and creating more employment, but our largest constraint right now is a
shortage of industrial factory space.
Every day I field phone calls from potential foreign investors who
want to begin new apparel production runs in Haiti. Unfortunately, I
have to tell them that the sector is at capacity, and there is simply
no additional manufacturing space to offer right now. I admit, this is
a good problem to have, but if this problem persists for too long then
buyers will begin to move Haiti further down their list of potential
sourcing locations.
This is why CTMO-HOPE has pursued a dual approach to revitalizing
the apparel manufacturing sector: enhance trade benefits under HOPE and
simultaneously expand Haiti's capacity to utilize the benefits. In my
capacity as Executive Director of CTMO-HOPE, I have been intimately
involved in the efforts to increase the capacity of Haiti's
manufacturing sector through an international strategy coordinated with
the United States and major international institutions such as the
Inter-American Development Bank and the World Bank-IFC. The focus of
our combined efforts is the construction of two major new industrial
parks in Haiti, one in the north of the country, in the Cap-Hatien
area, which will be driving development as part of an integrated
strategy for the north, and a second industrial park outside of Port-
au-Prince. Each park would be capable of more than doubling Haiti's
existing manufacturing capacity, and supporting 2550,000 jobs.
The construction of an industrial park is an enormous undertaking.
It begins with financial feasibility and environmental impact studies,
and then requires construction financing coordination, tenant lease
commitments, power and water development, worker housing and training,
and port and transit infrastructure development.
The U.S. State Department, through the Haiti Special Coordinator,
Ms. Cheryl Mills, has provided invaluable support working with all
stakeholders to follow through on their commitments during the process.
I also want to express my sincere appreciation to other U.S. Government
agencies and the U.S. Congress for the enormous support provided to
Haiti in recent years.
It is not my role to outline for you the details of the specific
programs that the United States is operating in Haiti, or the levels of
funding that the U.S. Government is spending or has committed. These
details are best presented by U.S. Government officials. However, I
will describe some broad efforts that are underway in cooperation with
the U.S. Government and the other international institutions.
Northern Industrial Park
This past January the Government of Haiti, the Inter-American
Development Bank, the largest Korean apparel company Sae-A, and the
U.S. Government signed a memorandum of understanding to launch the
construction of the first new industrial park in the north. We are
optimistic the project will be completed and operational by the second
quarter of 2012. We already have commitments from other major foreign
apparel producers to also begin operating in the park upon its
completion.
The IDB is financing the main structure of the park, including the
factory shells, roads, and other logistics and facilities. The U.S.
Government stake in the northern industrial park will include projects
in energy infrastructure and housing, as well as port capacity
expansion. In addition, as mentioned, we expect this industrial park
development and the associated infrastructure to also catalyze
developments in other sectors, such as tourism and agriculture.
Ganthier Industrial Park (Outside Port-au-Prince)
We are also working with the U.S. Government on a second industrial
park development project, which would be located outside of Port-au-
Prince. The International Finance Corporation, which is part of the
World Bank, has agreed to fund feasibility and impact studies for the
industrial park development in Ganthier.
The U.S. Government has made a commitment to provide the same types
of infrastructure support for the Ganthier industrial park as is being
provided for the northern park, such as power supplies and worker
housing. In the meantime, we are working with the support of the IDB to
expand the existing industrial park in the Port-au-Prince area, SONAPI,
with the addition of five more factory shells that could be used to
create probably a minimum of 2,500 additional, badly needed jobs.
Marketing Efforts
Part of CTMO-HOPE's mandate is to ensure that foreign apparel
buyers are aware of the trade benefits available under the HOPE
program. Over the past 4 years we have hosted several events,
conference calls, and have been involved in other forums to present and
promote the many advantages of doing business in Haiti.
The World Bank is supporting our efforts by funding CTMO-HOPE trade
missions to foreign countries. My team and I have so far made several
trips, including to Korea and Brazil, where we meet with both
government and private sector officials to discuss potential synergies
and opportunities to utilize the HOPE program. The trips have resulted
in the commitments of long-term foreign direct investment in Haiti's
apparel sector that will occur upon completion of the industrial parks.
Haitian Apparel Center
The Government of Haiti has initiated efforts to establish an
apparel manufacturing training center and has provided the main
training building. The Haitian Apparel Center, or HAC as it is called,
which is located in the SONAPI industrial park in Port-au-Prince, is
training Haitians to be operators and managers in the growing apparel
manufacturing sector. Through a grant from USAID, the HAC has graduated
2,000 trainees, and approximately 60 percent of those graduates have
been hired by existing factories. It is my understanding that USAID
will continue to support this program.
The success of the Port-au-Prince HAC demonstrates the need for a
similar operation in the north of Haiti. The looming capacity of the
new industrial parks will require thousands of additional trained
Haitians workers.
Special Economic Zones
Haiti is also working with the IFC to develop a model for special
economic development zones in the country that will facilitate private
investment. The goal of the zones is to streamline the process of
starting a business. Initially we envision five to six zones that would
include industries such as tourism and light manufacturing.
Social Compliance
The HOPE trade program was novel because it included, at the
request of CTMO-HOPE, a mechanism to ensure that worker rights would be
protected in the apparel manufacturing sector. As implemented under
HOPE, the International Labor Organization operates a Better Works
program in Haiti's apparel sector, which monitors international worker
rights standards in factories, helps remediates any issues, and
publishes public reports on the compliance record of all factories in
Haiti. Haiti is the first country in the hemisphere to have a Better
Works program--because we are well aware that compliance is an
important issue for major U.S. buyers, and we are committed to building
a world class apparel sector, not simply on the basis of inexpensive
labor, but also on the basis of high quality and world class social
compliance.
The Better Works program is well accepted by Haitian factories and
U.S. buyers concerned about social compliance and brand protection.
Just this month Better Works held a buyers forum in Haiti that was well
attended by the industry.
concluding remarks
Again, I cannot express enough thanks to the U.S. Congress and the
U.S. Government for the proactive assistance and support for Haitian
reconstruction. We are also greatly appreciative of the outpouring of
support we received after the devastating earthquake last year. I also
must mention that as Members of the U.S. Congress your personal visits
to Haiti have a positive impact on driving policy, a positive impact on
the lives of Haitians, and the visits strengthen the positive
perception of the bilateral relationship.
The enhanced HOPE program gives our apparel manufacturing sector
the potential to be a cornerstone of the country's reconstruction, and
the industrial park development process is well underway to providing
needed capacity. In the very near future the Haitian sector could
expand at a rapid rate, and fortunately we have mechanisms in place,
such as the Better Works program, to ensure the industry grows in a
sustainable and socially compliant manner.
Bolstering the integrity of state institutions is a priority of the
Martelly government, and it is an area where U.S. assistance is needed
and would be well invested. In order to attract foreign investment in
Haiti, we must continue to work toward establishing a level playing
field that will instill confidence for both domestic and foreign-owned
businesses. As Haiti's manufacturing industry grows, and as we
experience corresponding growth in trade with the United States and the
world, it is critical that our trade institutions have the capacity to
ensure that critical international commercial priorities are
safeguarded, such as transparency, facilitation, and enforcement.
Haitian trade and customs institutions were weak even before the 2010
earthquake, and today we are barely back online. Nearly 70 percent of
Haiti's economy operates outside of formal institutions, and
strengthening Haiti's customs capacity could go a long way toward
bringing more commerce into the formal economy.
It would be most appreciated if the U.S. Congress and U.S.
Government would relay the success stories of the HOPE initiative to
other regional trading partners. In particular, we have made requests
to the governments of Canada and Brazil. It would be helpful if the
Canadian Government could update their preferences program for Haiti to
allow the use of U.S. inputs, which are currently not permitted. In the
case of Brazil, we are looking forward to early passage in Brazil of a
trade program that would provide Haiti preferential access to the
Brazilian apparel and textile market. Such programs would not only
benefit Haiti, but could offer new opportunities for U.S. businesses
that export textiles and other raw materials to Haiti.
In addition, as included in the HOPE II legislation in 2008, we
believe that it would be a win-win opportunity if the U.S. Department
of Commerce were to implement this year the recommendation of the
Congress that a high-level trade mission be organized to Haiti. For our
part, we stand ready to offer every assistance for the success of such
a trade mission.
We would also recommend that the U.S. Congress give favorable
consideration to several other important pending proposals:
First, Senator Lugar's Haitian-American Enterprise Fund \4\ could
facilitate the creation of many new small businesses in Haiti by
providing access to financial services and other services that are
currently difficult for Haitians to obtain, such as loans, insurance,
and training.
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\4\ S. 954--112th Congress.
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Second, Senator Durbin's Haiti Reforestation Act \5\ could help
reduce the alarming rate of deforestation in Haiti, and would take
steps toward reforestation. Just this past week, 28 Haitians died in a
mud slide that was attributed to deforestation.
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\5\ S. 1023--112th Congress.
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Third, Senator Gillibrand's Haitian Emergency Life Protection Act
\6\ would allow Haitians whose petition for a family-sponsored
immigrant visa that was approved on or before the January 2010
earthquake to live and work in the United States while waiting for the
completion of the immigrant visa process.
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\6\ S. 480--112th Congress.
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Although our challenges are not behind us, we see a brighter future
and greater opportunities coming every day. We would not be approaching
the world with such a vision if it were not for the support of the
American people.
Hopefully, one day soon I can return to Congress to report that the
HOPE program has reached its capacity, and what we need is an expansion
of it. On that day, we will know Haiti's economic recovery and the
Growth Revolution will be a reality.
Thank you.
Senator Menendez. Mr. Shaye.
STATEMENT OF GARY SHAYE, HAITI COUNTRY DIRECTOR, SAVE THE
CHILDREN, PORT-AU-PRINCE, HAITI
Mr. Shaye. Senator Menendez, Senator Cardin, Congressman
Hastings, thanks for the opportunity to be here.
This afternoon I want to provide a perspective of Save the
Children and other NGO's about what we need to do as an
international community to continue to respond to Haiti.
We have to continue to address the remaining impact of the
earthquake, support stronger aid delivery mechanisms through
improved coordination, and invest in key areas, including the
capacity of the government as both Senators mentioned in their
opening remarks.
In terms of the impact, the earthquake was widespread, left
over 1.5 million people displaced, another 500,000 people
scattered throughout the country, living with families and
friends who already faced economic challenges. Save the
Children provided support to over 1 million Haitians in terms
of shelter, food and water, health and nutrition, child
protection, education, and livelihoods.
NGO's on the ground do see some improvement. Rubble is
cleared. Some families are rebuilding their homes. Schools are
being rebuilt, opened, and children are resuming their
education.
How do we address the remaining impact of the earthquake?
While many donors are eager to leave behind the relief
phase to move to long-term development, as we all do, many
Haitians are still displaced and living in tented camps. Women
and girls are the most affected and most vulnerable population.
Many camps lack comprehensive security plans and women sense
their vulnerability. There are anecdotal reports of increases
in transactional sex and other forms of sexual exploitation, as
women who live in desperate conditions seek ways to earn
income. It is likely that reported cases are well below the
real numbers due to the fear of stigmatization, ignorance about
support mechanisms that do exist, and a very real fear of
reprisals. Numerous Haitian young girls have been pushed to
sell their bodies to meet basic needs. We need as a community
to invest more in both women and adolescent girls to, first of
all, ensure their protection, and see to it they can play an
active role in the leadership of Haiti.
Health remains an ongoing concern. With the onset of the
rainy season, cholera has spiked in parts of the country and is
likely to increase as rains continue. This is happening as
relief funding for NGO's is coming to an end or has ended,
meaning some services will no longer be available. Some NGO's,
including Save the Children, will probably have to close
clinics in areas where cholera is increasing. Should these
facilities close, there will be no service and deaths probably
will not even be reported as the nearest facilities are not
near enough for those that require emergency treatment. We
require an agile decisionmaking mechanism to address the
urgency of cholera.
As we go forward, some of the recommendations of the
international NGO's are that we have to ensure basic
humanitarian needs are met. The collective response of the
Government of Haiti and the entire international community must
address the economic security of the Haitian families.
Permanent housing options, water and sanitation, livelihoods,
and rebuilding health and education and effective protection
systems are all required. At all times, we have to include
disaster risk reduction approaches in our communications with
the population.
Donors and other aid implementers will require strong
coordination and a long-term vision that focuses on supporting
the capacity of the Haitian Government and civil society. We
have to make long-term investments in the government and people
of Haiti. Donors need to make multiyear investments and set
reasonable goals. These words are easy to use. Yet most funding
is for 6 to 9 months. Solutions to Haiti's problems do not lend
themselves to 6-9-month funding cycles.
NGO's want to serve as a partner to the Government of Haiti
and use our on-the-ground presence by hosting government
employees who could receive on-the-job technical training and
later return to government service to build the long-term
ministerial capacity required.
There are, as was stated before, many reasons for optimism.
President Martelly's bold initiative on primary education and
other investments to strengthen Haiti's education system
resonates with Haitians. Two weeks ago, I had the opportunity
to be with President Martelly at a school inauguration and it
was gratifying to see how he connected with the population, the
school children, the teachers, and the entire community. In his
remarks he expressed his vision to see to it that all Haitian
children have access to a free primary education.
We have to tap in and continue to tap in to the
resourcefulness and demonstrated commitment of Haitians living
abroad who want to ensure a better future for Haiti.
Opportunities presented as a result of the earthquake bring
resources and international partnerships to Haiti and there is
a great interest to continue supporting Haiti.
So in conclusion, with coordinated and energetic leadership
from the government and civil society of Haiti, support from
the diaspora, sustained commitment from the international donor
community, we believe we can improve the situation for
Haitians.
[The prepared statement of Mr. Shaye follows:]
Prepared Statement of Gary Shaye
Mr. Chairman, and members of the subcommittees, Save the Children
welcomes this joint hearing by the Senate Foreign Relations
Subcommittees on reconstruction in Haiti. Eighteen months after the
January 2010 earthquake and 3 months after democratic elections, Haiti
is at a crossroads, facing both challenges and opportunities. The
choices made today by the people of Haiti, their government, and the
international community that seeks to support them will be fundamental
to rebuilding a better and stronger Haiti--a Haiti that is much
stronger than it was before the earthquake.
The devastation wrought by the January 2010 earthquake is well
known: 230,000 people killed; 300,000 injured; 2 million displaced from
their homes and an estimated $7.8 billion in damage--an amount greater
than the country's 2009 GDP. The humanitarian response was also
significant: as of April 2011, donors had provided $2 billion in
financial and other assistance and private donations equaled $1.5
billion. The U.S. Government alone provided $1.1 billion by the end of
fiscal 2010.
Despite this, the humanitarian effort--much of it implemented by
international nongovernmental organizations including Save the
Children--was challenged not only by the scale of the disaster but by
the reality of an already difficult and costly operating environment,
made more complex after the earthquake. Government capacity, already
limited prior to the earthquake, was devastated by the loss of lives
and infrastructure in key ministries. With the massive destruction of
life and infrastructure, material and human resources were brought in
from the outside at higher cost. Humanitarian relief efforts were
further challenged by the cholera epidemic of October 2010, which
continues as we speak, and Hurricane Tomas in November 2010. Budget
lines typically reserved for transitional funding at the end of a
relief effort were allocated to meet new urgent needs.
And yet tragically, for many Haitians, the services provided in
camps during this year of catastrophes--access to clean water and
health services, for example--surpassed what they had before. In 2009,
U.N. agencies reported that 50 percent of Haitians lacked access to
potable water; nearly a quarter of the population was undernourished;
and an estimated 500,000 children never attended school. As we look to
support the reconstruction of Haiti, we need to think past
reconstructing what was there before. A Haiti that looks like it did in
2009 would represent a failed opportunity, and we need to acknowledge
this.
Building a better future for Haiti's children will require
sustained U.S. engagement that, at a minimum, does three things:
Addresses the remaining impact of the humanitarian crises;
Supports stronger aid delivery through improved coordination
and other best practice; and
Invests in key areas, including the capacity of government
and the voices of Haitian citizens.
addressing the remaining impact of the humanitarian crises
While donors are eager to leave behind the relief phase and move to
long-term development, many Haitians find themselves still living in
camps, suffering from cholera outbreaks or facing the daily threat of
gender-based violence. To date, over 600,000 Haitians are still living
in camps or other types of transitional shelter. Many face forced
evictions. Crowded and insecure conditions too often facilitate
violence against women and children. A household survey conducted by
the Center for Human Rights and Global Justice at the New York
University School of Law in March of this year showed that 14 percent
of respondents in four IDP camps indicated that at least one member of
the household had been raped since the earthquake; 60 percent of
respondents reported fear of sexual violence. It is likely that
reported cases are well below the real numbers due to the fear of
stigmatization, ignorance of existing support mechanisms, and fear of
reprisal attacks. With the onset of the rainy season last month,
cholera yet again spiked in certain parts of the country and is likely
to increase again.
This is all happening just as relief funding for international
nongovernmental organizations (INGOs) is coming to an end, in many
cases without the possibility of renewal. Due to depleted funding, many
INGOs have left or reduced their projects in camps, leaving services
there limited, nonexistent or in disrepair. Some Cholera Treatment
Units are scheduled to close in the next months, and in some areas of
the country increased caseloads are likely just as they are downsizing
operations. While overall the cholera response has been effective, we
require more agile and quick decisions so that agencies addressing
cholera treatment do not have to close operations and dismiss staff,
only to reinitiate operations a few months later.
The desire to avoid a culture of dependency and transition to a
longer term development approach is the right one. A holistic
resettlement strategy accompanied by a strong livelihoods plan is
imperative; solutions to land rights and housing will need to be found
to end temporary shelter; investments will need to be made in the
health system and in water and sanitation to address cholera; and an
economy that guarantees jobs will do more for families and communities
than a temporary cash for work program. But the transition from relief
to recovery does not follow the deadlines of when we need to move money
from one budget line to another. Relief and recovery must go hand in
hand and often need to happen simultaneously in order to be effective.
Even as they support the Haitian Government and civil society in
addressing the longer term issues, donors need to:
Work with the Haitian Government, U.N. system,
nongovernmental organizations (NGOs), Haitian citizens and
others involved in relief to identify transition gaps that
require more effective transitional funding mechanisms and,
based on this assessment, design adequate funding channels to
respond to continued needs.
In response to cholera, which is unpredictable, maintain
funding for emergency response, until alternatives are in place
to meet health needs and ensure access to water. Funding
channels should be established that are sufficient and agile,
able to be accessed quickly when spikes emerge.
Improve the coordination between emergency and development
funding and ensure integrated approaches to shelter that
include funding to livelihoods, water, sanitation and hygiene
(WASH) and other basic services.
Continue investing in security, support and protection
mechanisms as well as basic health and psychosocial services to
ensure the protection of women, children, and other vulnerable
populations. Working with local women's groups should be a key
component of this.
As part of the reconstruction plan, invest significantly in
hurricane preparedness and disaster risk reduction.
None of this negates the need to invest in long-term development,
but recognizes that reconstruction will take time, and immediate needs
will have to be addressed both for humanitarian reasons and to avert
further crises that may impair recovery. It recognizes as well that
meeting these needs requires more of an integrated relief and
development approach.
improving aid delivery
Much attention has been given to the shortcomings of the aid effort
in Haiti and in particular to the challenges faced in coordination.
While all of us would agree that coordination could be improved, it
DOES take place and Haiti has benefited as a result of the existing
coordination between the various humanitarian actors. With a government
that faced monumental challenges, the international community did step
up and provide needed humanitarian assistance to save the lives of the
victims and the most vulnerable. In the year following the earthquake,
for example, international relief activities helped feed more than 4
million people.
Nevertheless, building back better will require strong coordination
among donors, the Haitian Government, the U.N. system, NGOs, and other
Haitian stakeholders and implementers. Thus far coordination has been
challenging. On the ground, the scale of the response has actually
meant more new actors in Haiti that are providing far more services
than ever before often with short-term funding matched to specific
sector priorities. Short-term and sector-specific funding inevitably
leaves gaps. The challenges and requirements of Haiti require NGOs and
other implementers to make a multiyear commitment, which in turn
requires long-term funding commitments and resources that are not yet
secured. In Haiti, basic principles of aid effectiveness and smart
development need to be applied.
The U.S. Government and others should:
Ensure reconstruction is Haitian-led and Haitian-owned. A
plan that will endure when donor attention goes elsewhere is
one that reflects the priorities and involvement of the Haitian
Government and people. Donors should support the Haitian
Government's efforts to consult its citizens and fund the areas
they define.
Provide long term and predictable support. As already
described, the task ahead will require a long-term commitment
from all stakeholders.
Raise the role, voice and concerns of women in
reconstruction and integrate gender across all programs and
strategies. About 43 percent of families are headed by women,
and yet their contributions and status are too often
undervalued. Maternal mortality rates remain high.
Reconstruction is an opportunity to address historic imbalances
and support a significant part of the Haitian population.
Coordinate aid with other actors. A positive first step has
been taken by the Haitian Government in the development of a
Haitian reconstruction plan that sets out priorities. Donors
need to support these and coordinate with one another to ensure
areas are adequately covered. The Haiti NGO Coordination
Committee (CCO) has set out a number of recommendations to
ensure proper coordination among the Haitian Government, U.N.
clusters, INGO community, and others.
The CCO calls on donors specifically to provide financial support
to integrated development and emergency funding that supports
relevant Haitian Government institutions; support the
functioning of the Tables Sectorielles' Secretariat, based on
the government's assessment of needs; and to more
systematically include NGOs in their aid coordination, so they
are in a better place to align with government priorities, and
engage in a meaningful policy dialogue with the Haitian
Government and civil society.
making long-term investments in the government and people of haiti
Building back better will require long-term investment in key
areas. Haiti's ability to advance and respond to future crises will
require investments that address recurrent problems and build the
country's economic prosperity, human capital, and good governance. The
Haiti Government's 10-year action plan prioritizes a number of sectors
that the international community should support. Territorial rebuilding
in targeted areas; economic rebuilding in sectors that include
construction, agriculture, and tourism; social rebuilding in health,
education, food security, and other sectors; and institutional
rebuilding are all key areas for a comprehensive reconstruction plan.
But fundamental to achieving all of these is building the capacity of
the Haitian Government and of the Haitian people.
The U.S. Government should:
Invest in the long-term capacity of the Haitian Government.
Sustained engagement with the Government of Haiti to support
its capacity to govern, deliver services, apply the rule of
law, and consult its citizens will be necessary to ensure both
stability and the basic rights of the Haitian people. The U.S.
Government should consider working with other donors and NGOs
in a capacity-building project for Haitian civil servants.
Building national and local capacity can ensure sustainable
solutions.
Support the Haitian people by investing in the social
sectors. The U.S. Government and other donors must invest in
the Haitian people by investing in their health and education.
Addressing cholera: Cholera requires a long-term investment in a
comprehensive national water and sanitation program that brings
safe drinking water and waste disposal to every community.
Infrastructure development needs to be accompanied by a
behavior change campaign so that every citizen knows how to
reduce his/her risk.
Strengthening the health system: Broader than cholera,
investments are needed to build a strong and effective Haitian
health ministry and system that is led by the Government of
Haiti and able to reach Haitians throughout the country with
affordable treatment and care. Harmonizing standards and norms
for both public and private providers will be key.
Strengthening the Ministry of Education: President Martelly has
expressed his vision for children by announcing a primary
education initiative that would guarantee free primary
education. We should allow Haitian children to have what every
child in North America takes for granted. The education system
should be strengthened with regular teacher training, and
standards in education that meet that of other countries in the
region. Education not only is fundamental for participating in
today's economy but provides a valuable tool for Haitian
children to meet their potential.
Support a development model that includes and benefits the
poor people of Haiti, ensuring their livelihoods and food
security. Economic growth is a necessary but insufficient
condition for poverty reduction. The economic model that is
pursued in Haiti must empower Haitians and private sector
investment must be geared toward that aim.
In all of this, we must invest in women and youth. Roughly half of
Haiti's population is under 18 years of age. Supporting their rights,
investing in their potential, and providing a space for their voice
will be key to successful reconstruction.
Those that believe there is a ``quick fix'' to the issues in Haiti
are mistaken. Anytime we think progress is not fast enough in Haiti, we
should remind ourselves of our own experience with Hurricane Katrina,
and how challenging it is to rebuild communities and infrastructure.
But there are many reasons for optimism:
The resilience of the Haitian people and the potential of
Haiti's children;
The resourcefulness of Haitians living abroad who are
committed to Haiti's future;
Haiti's proximity to the United States with our strong
national interest in seeing the country succeed;
The opportunities presented by unprecedented attention,
resources, and international partnerships focused on Haiti; and
The inauguration of President Martelly's new government with
an expectation of concerted action.
Long-term engagement by the administration and Congress will be
required to ensure Haiti's Government and people receive the support
they need. With coordinated and energetic leadership from the
government and civil society of Haiti, perseverance and sustained
commitment from the Haitian people, and long-term-wise engagement from
the United States and international community, we can support Haitians
as they realize their full potential and prosper.
Thank you for the opportunity to speak today, and I welcome any
questions you may have.
Senator Menendez. Well, thank you all for your very
insightful presentations.
I think we will start a series of 7-minute rounds based on
the number of our colleagues who are here, and I will start
off.
I am concerned, and I would just like to hear from you. I
see that President Martelly's nominee for Prime Minister was
rejected by the Haitian Parliament. I hope the Haitian
Parliament understands that for us to move forward, we need not
the politics of the past but the opportunity to move into the
future. There are some press reports that suggested the
rejection is far less on the qualifications of the Prime
Minister nominee versus the politics of it. And that does not
bode well for investment.
So I would like to hear about prospects for investment. I
know that in the 1980s, there was a significant influx of
investment to create an opportunity to use the entrepreneurship
and the strong work ethics of the Haitians and that created a
lot of investments in the production of clothing and sporting
goods and electronic parts for markets in North America and
beyond. But then political turmoil of the 1980s and 1990s came
along after that, and foreign investment declined.
As members of the diaspora, what do you see in terms of the
political climate? Do you think that there will still be a
commitment to invest based upon the promise of the new
President, or will the current circumstances, if they continue,
be obstacles?
Mr. Bernadel. Thank you, Chairman Menendez. We are meeting
with President Martelly in Miami on Saturday, and members of
the Haitian diaspora want to convey the same anxieties that you
just described in terms of seeing what his answer is going to
be.
We have just gone through a significant period with the
Haitian Parliament. They had just voted an amendment to the
Constitution of 1987 allowing the diaspora to have dual
nationality so they could come and rejoin the community of
Haitians. And that particular amendment at the last minute was
somewhat withdrawn due to technical issues. And this is one of
the dimensions of the discussion that we plan to have with
President Martelly on Saturday, to tell him that we need this
kind of certainty in order for us as members of the diaspora to
speak on his behalf not only to people from the diaspora but to
government officials within the United States to give them a
sense that there is a need to reinvest in Haiti. There is a
need and there is a true sense that Haiti is open for business.
We are concerned about the similar aspect in what is happening
with Haiti.
We know that there has been government in Haiti that have
submitted one or two Prime Ministers sometime, and we think
that this may be more politically determined than just the
quality of the Prime Minister. So we are going to wait to see
what exactly the next step for President Martelly is going to
be taken because we need some sense from him that the diaspora
and the international community can have some sense that there
is going to be stability because this is one of the things that
we need.
Senator Menendez. Let me ask if any of you have a comment
on that.
Mrs. Simon-Barjon. If I may. Actually that reiterates the
fact that we need to invest money in the private sector because
if we look at it in the United States, 85 percent of our
workforce works for small and medium businesses. In Haiti we do
not have that. So the more we invest in the private sector, the
more we empower people, the more money people earn, the more
educated people are. Then they will actually be able to fight
not violently, fight back against those kind of parliamentary
shenanigans.
Senator Menendez. My concern was does that create a bar to
getting the private sector investment that we want to see, or
can that be overlooked and still not be a bar?
And in addition to that, I would ask you all, if I gave you
a magic wand and I told you give me the three singular--not
four, not five--the three singular most important things that
could be done to achieve private investment inside of Haiti,
what would those three things be?
Mr. Sassine. If I had a magic wand, I would hit on Daniel
Rouzier being accepted as Prime Minister. The second would be
the passage of two very important constitutional amendments
that did not happen. These are the three things that if they
happen----
Senator Menendez. And those two are the citizen----
Mr. Sassine. The dual citizenship which permits people to
be able to work for the government and unfortunately who have a
U.S. passport and they cannot.
Senator Menendez. And the other amendment?
Mr. Sassine. The other amendment is one that has to do with
regulatory reforms on real estate ownership.
Senator Menendez. Any other suggestions?
Mr. Bernadel. For my part, there would be an enforcement of
property rights. As you all know, there are a lot of people
that do not want to invest in Haiti into the diaspora, and we
are trying to overcome the resistance. It is because they are
not sure on any given day what particularly the land tenure is
going to be.
The second investment will have to be in education. I know
that there is a massive plan from IDB to invest in education in
Haiti, but that education has to be a modern type of education
not just simply palliative or some kind of lip service. The
government
has to have a national curriculum. They have to have qualified
teachers, and they have to have buildings that are adequate in
order to have that.
And then the third one is a health issue because in Haiti
there are a lot of tourists that may not want to come into
Haiti, people from the Haitian diaspora, because of the fear
that there may be a widespread possibility of contamination.
So those are the kind of things that I would address
because all of them stem directly to create a condition in the
mind of the people we are trying to influence that Haiti is, in
fact, open and set for business.
Senator Menendez. Very good. Thank you.
Mrs. Simon-Barjon. Well, can I say something, Senator?
Senator Menendez. Sure.
Mrs. Simon-Barjon. I think basically that is constantly
looking for other people to come and fix Haiti's problems.
Haitian people have the capacity. Illiteracy, I constantly say,
does not mean stupidity. The people of Haiti know what they
want.
This is an agricultural country. Again, we say two-thirds
of these people are agricultural people. They work the land.
Time and time again, I think an Oxfam-Quebec survey asked them
what did they want, what was the most important thing to them,
and this to the masses, and they said it was local food
production because they do not want to be subjected to global
price fluctuations, et cetera.
So I think to me not addressing that issue is extremely
important because if these people are, again, able to work,
create jobs, et cetera, then this is a country that is going to
be OK because they are going to demand it of their leaders,
just like we demand it of our leaders.
Senator Menendez. Senator Cardin.
Senator Cardin. Well, again, thank you all for your
testimony. I appreciate it very much.
I want to start off with a general question as to how
effective the international aid has been to date. And I
particularly want to focus on a significant problem within
Haiti on the division between the wealthy and the poor. There
are a lot more poor than there are wealthy. I understand that.
But the income distribution from the economy is very skewed,
and we would hope that as part of our international assistance
that we are building a class that will benefit from the economy
of Haiti.
So as you respond to the question as to how effective our
aid has been, I would like to get your prognosis as to whether
we are assisting in the development of an economy that will be
sustainable for the majority of the people. Whoever would like
to start.
Mr. Bernadel. Yes. I am a member of the IHRC. The IHRC is
the Interim Haiti Recovery Commission, which is the organ that
was charged right after the earthquake to be a conduit and a
facilitator of the aid that was coming from the bilateral
commissions, bilateral with Haiti. And this particular organ
was expected to be the one organization which all kind of aid
will come through and then it would be facilitated and to
address the gaps that were based upon the national plan of the
government, something similar to the response that we had with
the tsunami on Banda Aceh.
Senator Cardin. And how well are we doing?
Mr. Bernadel. Right now there are some issues. First of
all, there is a public relations aspect that from the IHRC is
suffering because they have not done a great job to go forward
to explain what it is. And there is the issue of time because
this is not something that is going to happen in the time that
the people thought that is allocated. I just came from
Louisiana, and there are things that are still being fixed.
Senator Cardin. I understand that. But my question is the
aid that has been made available to date--are we moving in the
right direction or are we just institutionalizing the problems
that were in Haiti prior to the earthquake?
Mrs. Simon-Barjon. You are institutionalizing the problems
and reiterating the problems that are in Haiti today. If you
look at it, sir--let us look at the Bumpers amendments where we
are basically--Haiti at some point cannot even buy fertilizer.
They have to buy limited fertilizer. We have actually cut down
the vast majority of the people, the very bottom of the
pyramid. These people have to--this is what I said earlier--
they have to actually buy U.S. goods. They do not have a
choice. These people cannot afford it. They are earning $1 or
$2 per day.
We have not done anything toward capacity-building. Of the
$4 billion that we have sent to Haiti in the past 20 or so
years, only $163 million has gone toward private sector
development. And every time I go to Haiti, I hear the same
thing over and over again from the people, is that we are
catering to the same small group of people and not addressing
the needs of the masses.
Senator Cardin. Let me get the other two responses, and
then the question will be for those that think we are not
getting there, what do we need to change.
Mr. Shaye.
Mr. Shaye. One thing that you learn very quickly in Haiti
is that there is more to do than all of the actors there
together can address. The need is beyond comprehension. The
agencies, the members of the international community that tend
to focus more, specialize in specific sectoral areas, and,
focus geographically will have more effectiveness. Many NGO's,
even when they are offered money, say no because we do not have
the bandwidth, the management capacity to take on more of a
response.
USAID and its strategy of working in Cap-Haitien, Saint-
Marc, and Port-au-Prince has focused on three economic
corridors. Some of us would like them to work where we work,
but the experience in Haiti tells you that by focusing you will
be more effective. In Haiti, it is almost like working one by
one, working to put kids back in school, and offering health
services to more people. The pace at which you can accomplish
things is very slow.
NGO's have a large presence. We would like to have a
smaller presence and have the Haitian Government take on more
and more of this responsibility. But when you have 80 percent
of the schools that are private, not private schools like we
know them in North America, but privately operated by community
members trying to make sure that children there can receive an
education, when you have the health service--for example, in
cholera, the government health service does not have the reach
to address the need in all communities. So gradually we, the
international community, have to think of geographic areas and
ministries where we can help rebuild that capacity.
Senator Cardin. Well, here is the challenge. We have two
roles. One was humanitarian to deal with the immediate
disasters of the people who were displaced. It is my
observation we have not completed that role yet because there
are still people in camps and very vulnerable. And then to help
rebuild an economy that we hope would be able for sustainable
growth in Haiti, and that means where working people have a
decent opportunity.
Mr. Shaye. They are interrelated. Many of the people who
are in the camps do not want to move until they have a viable
income source. They need to know that they are going to have an
income source. They are not going to travel longer distances to
uncertain jobs. Their kids are going to have to go to school.
There has to be a health service where they move, and there
must be security in place. So we know in general why things
happen slowly, but you need to think about all the moving parts
that have to be in place. There are complex issues around land
titles. We have people who know how to build shelters and who
have the designs to build shelters, but they need a place to do
it, and the families have to see an economic advantage to move.
At the same time, just as you said, the entire
international community, the Haitian civil protection
authorities, the U.N. are all very concerned about the large
population living in tents and we know a strong hurricane will
be catastrophic. But where are they going to go?
Mr. Sassine. If I may?
Senator Cardin. Mr. Sassine.
Mr. Sassine. Everything that has been said is true,
especially my two colleagues here on my left. But there are
good things that are happening with the foreign assistance,
especially with the U.S. assistance especially in the health
sector. The cholera outbreak was a very big demonstration of,
when the foreign aid is focused on something, how well it can
be managed. HIV/AIDS--Haiti is the only underdeveloped country
where HIV/AIDS is in regression. So this particular aspect has
received the necessary focus.
As one who lives in Haiti, I can see that there is a shift
the last 2 years, even before the earthquake started,
especially with the HOPE legislation passing and the kind of
assistance that we are receiving directly for the private
sector. The Clinton-Bush Fund, for instance, which is looking
at investing in profitable business ventures, just like a
regular banking situation. And this is creating more and more
types of direct--like Regine was saying--direct investment and
creating wealth with small businesses. They are now being
regarded as the vehicle that she was mentioning. But the
machine, of course, like an aircraft carrier turning, is taking
a little time, but at least today they are looking in the right
direction.
Mr. Bernadel. Chairman, if I may.
Senator Cardin. Briefly.
Mr. Bernadel. Again, this is one of the reasons why we said
that there has to be some incentive to attract the diaspora
into coming back into Haiti. To every milieu that you go to,
they will tell you the diaspora is going to be the one key
element. Yet, there is very little that is being done in Haiti
within the international community to make this come to pass.
So we recognize the need of the diaspora to be an actor, but no
one wants to make whatever the condition for that to happen.
And then we keep postponing the same issue when part of the
solution is right in front of us.
Senator Cardin. Thank you. I found that very helpful.
Senator Menendez. I just have one or two other questions. I
do not know if Senator Cardin has any more. We will come to a
conclusion.
Going back to the educational challenge, Mr. Shaye, I have
heard what the President wants to do. It is certainly one of
his top priorities. And I am wondering how he will turn the
educational effort into a free public education system for
children in Haiti. Is his plan viable? What needs to happen in
order to make it so? What is the role of the Inter-American
Development Bank in helping him achieve it?
Mr. Shaye. First of all, it is a goal that, as I said
before, resonates with the Haitian people. The aspiration to
keep children in school is probably the highest when you do
focus groups and talk with people in communities or you talk
with those who are displaced. It is an extremely ambitious
goal. To make this happen, you have to basically create an
educational infrastructure. You have to work with the private
sector that is providing the bulk of education, and conduct
massive teacher education programs. With the cooperation of
institutions like the IDB, and the many international NGOs who
on a regular basis raise resources for education, for areas
within and outside of the earthquake there is great support for
education. Most NGOs worked in education before and will work
in education in the future.
I think having a goal like this is the right type of goal,
but we have a long-term plan. What can we do? First of all, we
need to get a Prime Minister appointed and we have to get the
government in place. So right now we have the idea but we do
not have the personnel. But in the first week after President
Martelly was elected, he convened a meeting with his staff and
all of the actors that are active in what is called the
Education Donor Group. He shared his goal. People said the same
thing I am saying. It is ambitious. But it is the direction
that Haiti needs to go to develop this in-country capacity
which can be combined with the capacity of the diaspora. But it
is a very long-term goal as we know. We work with hundreds of
schools in Haiti. Other NGO's do the same. It is day-by-day
work improving the training of teachers, involving the
community, and now making sure that in every school there is an
active water and sanitation program so we can do cholera
prevention right from the get-go because the cholera treatment,
as I mentioned before, is extremely expensive. We need to
change behaviors. We need to put in the water and
infrastructure. A school is a very good place to do that. But
we have to pace out what we can do and what can be
accomplished, and it would have to be supported by future
governments and other donors would also have to provide
support.
Senator Menendez. Ms. Barjon, I admire the spirit with
which you have kept the last remaining sugar mill, as I
understand it, alive.
Mrs. Simon-Barjon. Thank you, sir.
Senator Menendez. I have listened to your comments about
agriculture development. Is there continued resistance to
agricultural development by large landowners in Haiti?
Mrs. Simon-Barjon. Actually not. We have not met any
resistance at all in the Leogane region because we pay our
farmers quite simply. As a matter of fact, one of the first
things we did when we partnered with the Government of Haiti
for the sugar mill was we increased the revenues of our farmers
by 50 percent. They went from $8. The government was paying
them $8 per metric ton, and we now pay them $12 plus all sorts
of other things like food and supplies, et cetera. So this
actually shows that a private sector company can actually be
successful and not only that, make everybody in the region
successful. We also give them back 10 percent of our net
profits which is something that, from what I understand, was a
little bit innovative for Haiti. So they are more or less like
profit--how do you say that--shareholders. So it can work and
it can be successful.
But the beauty of it is that this one sugar mill has the
capacity to displace about 50 percent of Haiti's imports, and
that represents about 10 percent of Haiti's annual trade
deficits. So that's tremendous.
In addition to that, if you look at the fact that Haiti has
a consistent energy deficit, the sugar mill can actually
produce 12 to 15 megawatts of renewable electricity to Haiti.
And if you have ever been to Haiti, you know electricity is a
very precious commodity. You do not take it for granted.
One sugar mill. Imagine if we had two sugar mills like
that. You were talking about, let us say, the northern
industrial park that the United States and the IDB are doing.
If you had two such sugar mills, another one in the north, you
would be able to displace 100 percent of sugar imports. You
would be producing 60 megawatts--let us say 30 megawatts of
electricity. And you would be employing over 60,000 farmers.
That one sugar mill in Leogane that we are doing--because
each worker in Haiti pays or cares for eight others. We are
talking about positively impacting 240,000 people or more.
Senator Menendez. So what is necessary for agricultural
expansion to take place?
Mrs. Simon-Barjon. Money, sir.
Senator Menendez. That is the answer.
Mrs. Simon-Barjon. Quite simply. That is why credit is the
most important thing. I keep repeating myself again. But it is
so important that we invest in the private sector not just in
the garment sector but also in agriculture. And I understand. I
think we also need to look at ourselves. The Bumpers amendment
is a huge handicap to Haiti, and that is something that, if you
guys want, you might want to repeal.
Senator Menendez. And one last question. What is the
progress in this northern industrial park which I understand is
a facility for textile manufacturing? I understand it is
somewhat at a standstill. What needs to be done to remove the
obstacles that are holding up its development?
Mr. Sassine. I am not aware of any more obstacles. Right
now the bids have been picked up by over 21 companies. The bids
will be open until mid-July and construction should start in
September. So today the compensation that was holding it back,
because there were some people exploiting the land--so the
compensation aspect of it was kind of slow, but that has been
taken care of.
Senator Menendez. Good.
Mr. Sassine. Over 1,200 families have been taken care of.
Mr. Bernadel. Mr. Chairman, I just want to quickly make a
point on the education part. First of all, the education in
Haiti is going to be a 20-year plan, and it is not just
President Martelly's plan. It was already initiated to 20 years
in 5-year increments. Twenty years ago, when we did not start
education in Haiti, we are back to today saying that it is
going to take us 20 years. At some point we need to get it
started in 5-year increments.
The second thing. I run a charter school in the State of
Florida. And Paul Vallas, who is one of the leaders of
education in the United States after the Katrina incident, has
said the same thing, and he is part of the team that is looking
at rebuilding the education. We need to start investing into it
just almost similar than the charter school where the
government subsidizes some schools, but you have to have
performance building, teacher training, and yes, it is going to
take time, but it will take money. But ultimately Haiti cannot
continue to develop with 80 percent of the population to be not
literate.
Senator Menendez. Thank you.
Senator Cardin.
Senator Cardin. I want to talk a little bit about the
agriculture and women.
First, let me say that I plan to contact our people that
are working in Haiti to do everything we can to impress upon
the authorities in Haiti to protect the people that are in
camps who are vulnerable, particularly women and girls. Those
that have been victimized are victims, and the Haitian
authorities need to understand that and need to protect the
vulnerable. I assure you that I will take steps from today's
hearing to do what we can to protect the women and girls that
are vulnerable in these circumstances.
But I want to challenge a little bit your comment, Ms.
Simon-Barjon, about the agricultural needs being down to money
because, as I understand Haiti, it is very much dependent upon
agriculture and women. And women are not fairly treated within
the country itself. Land rights are not what they should be as
it relates to women. And fundamental changes are needed.
Women's rights are human rights, and when we have a chance to
make some significant changes in a country, gender issues need
to be on the front burner.
So I know you did not mean to imply anything other than
that, believe me. But I wanted to at least put that on the
table and get your response or others as to what is the current
status in Haiti as far as the appropriate rights for women and
their aspirations and their land opportunities and their role
in agriculture and whether the redevelopment aid that is
currently being targeted is moving us in the right direction to
empowering women in Haiti.
Mrs. Simon-Barjon. We are probably not doing as much as we
possibly can, just like in any other sector. I can basically
only speak for what I am basically most familiar with which is
the Leogane region where both women and men are sugar cane
cutters, which is a really hard job. But we do notice that most
of the men head the association. So you are totally right on
the fact that men are leaders in, let us say, the regional
sugar cane planters associations, et cetera.
What we have done is to actually start a smaller group to
invite women in. But I am in a bit of a conundrum because I do
not really want to head those groups or those associations
because I already am running the sugar mill. So there is a
conflict of interest there. But they do see me and I am a girl
and I am their boss. So that is a pretty good example.
Senator Cardin. That is. My guess is that is not the norm.
Mrs. Simon-Barjon. No; it is not.
Senator Cardin. My understanding, particularly in the
agricultural sector in Haiti, is as you go up the chain it is
hard to find women.
Mrs. Simon-Barjon. You are absolutely right, but I go to
the sugarcane fields. I talk to them and I learn a great deal
and they see me. I am there.
Senator Cardin. Yes, sir.
Mr. Shaye. If I could add just one other thing. A few
months ago, USAID did issue a competitive process on protection
which would address some of the issues that I touched on
earlier. Numerous NGOs, consortiums of NGOs, other donors have
submitted proposals. We do not know who will be awarded the
proposal, but some of the issues I touched on would be
addressed by whoever the winning NGO or consortium is. So that
is part of AID's current proposal process.
Senator Cardin. And we will follow up on that to make sure
that is being acted on.
Yes.
Mrs. Simon-Barjon. Senator Cardin, I just remembered
something. We just actually just started a program with Sysco,
the large food company, in the Plateau de Rochelois which is in
the mountains in Haiti. And we have actually done the same
thing. And we have invited women, and we are inviting more and
more women. We tell them that they are allowed to speak. But it
is actually a work in progress. I cannot fight tradition. But
you can basically just show them the way and just be an
example. But we are making quite a bit of progress because
before I started, there were no women at all, and I have
actually invited the men, the planters, and their wives, and
the people that I--you know, you are allowed to come to
meetings. So we have done it, but a lot of women do not feel it
is their place. You cannot force them.
Senator Cardin. No. You cannot force them. Your example is
certainly a very visible sign of progress. But there is also
something about changing the culture of a country for
opportunity.
Yes, sir.
Mr. Sassine. There is something I just want to remind
everyone. The major problem in Haiti is land tenure. The last
time we had a disaster was 1762. We were not even Haiti. We
were a French colony. And today I am hearing a conversation
from the U.S. Embassy, USAID, and other organizations who are
now talking about this particular problem, that the land tenure
and land titling situation--that is one of the major things
that has to be resolved.
Senator Cardin. Thank you. I appreciate that.
Mr. Bernadel. I can say, Senator Cardin, that one of our
partners in the Haitian diaspora is a lady that runs one of the
microlending operations in Haiti. And this is an area where
members of the diaspora, which are filled with women business
people, that if they were given the opportunity, will for
certain look at the plight and the condition of women in Haiti.
But I know they will make an extensive effort to reach out to
women business people in order to make credit available to
them. Yes, very small amount of money, but many of those people
that have access to those loans, if it had not been for those
microcredit agencies, they probably would not have been able to
take care of their family. So that is one aspect of reaching
out to the women that we have.
Senator Cardin. One of the things these two committees will
look at--you mentioned somewhere around 1,000 loans that have
been given out. We will take a look at those, see how many of
those went to women businesses. I would be interested to see
that because there is the opportunity to really make some
advancements. If we find it is just a small percentage, then it
is disappointing. My guess is that women are approximately 50
percent of the population.
Mrs. Simon-Barjon. 52, sir.
Senator Cardin. 52?
Mrs. Simon-Barjon. Yes.
Senator Cardin. 52 percent of the population, similar to
the United States.
So we will look to see what type of record is being done
there, and I will ask my staff to look into those records.
Thank you, Mr. Chairman.
Senator Menendez. Thank you.
Well, with that, on behalf of both of us, let me thank you
all for your presentations. Your insights were very helpful.
This hearing is one dimension of our challenges and
opportunities as they relate to Haiti. So we look forward to a
future opportunity to discuss additional elements.
The record will be kept open for 3 days for members to ask
any questions. If you do get a question, we would urge you to
respond to it as quickly as possible to help us in our
deliberations.
And with that, this hearing is adjourned.
[Whereupon, at 3:27 p.m., the hearing was adjourned.]
----------
Additional Material Submitted for the Record
Prepared Statement of Catholic Relief Services (CRS)
Catholic Relief Services wishes to thank you very much for your
ongoing work and personal attention to aid Haitians in rebuilding their
country, the poorest in the Western Hemisphere, after the devastating
earthquake that struck on January 12, 2010. Moreover, thank you for
calling this important hearing on ``Rebuilding Haiti During the
Martelly Era.'' We want to especially thank Mr. Cardin of Maryland, Mr.
Menendez of New Jersey, subcommittee chairs on Western Hemisphere, the
Peace Corps, and the Subcommittee on International Development and
Foreign Assistance, Economic Affairs, and International Environmental
Protection, respectively.
As one of the largest American aid organizations in Haiti, Catholic
Relief Services is working hand in hand with Haitians to help rebuild
their country better and stronger. CRS believes that aid agencies must
strengthen local capacity and foster local leadership so that Haitians
drive their own recovery and development. CRS works in partnership with
numerous local organizations, including the Catholic Church in Haiti.
Some highlights of our programs in Haiti include:
Transitional Shelter Program: CRS and partners (including
subgrantees Cordaid and Habitat for Humanity) are producing
between 300-400 shelters per week. To date, a total of 6,485
shelters have been constructed.
Rubble to Reconstruction: More than 2,500 metric tons of
rubble has been recycled through the use of rubble crushing
machines supplied by CRS to 14 beneficiary entrepreneurs. These
small businesses are employing other earthquake-affected
Haitians and, through their efforts, are supplying CRS and
others with sand, gravel, and concrete blocks for construction.
Neighborhood Water and Sanitation: CRS staff carried out
formative research in target neighborhoods to explore community
members' knowledge, beliefs, perceptions, and practices related
to water and sanitation. The results are being used to develop
strategies for assisting communities to make improvements in
their living conditions that will positively affect their
health and well-being.
Protection: A total of 1,049 separated or unaccompanied
children have been registered and are receiving some form of
assistance. Of these children, 400 have been reunited with
their families.
Institutional Strengthening Program: As part of this program
supported by CRS and the University of Maryland, the University
of Notre Dame of Haiti selected six nurses and six doctors to
become future faculty members. These health care professionals
recently completed training sessions at the University of
Maryland. They are continuing their clinical training at
selected partner medical training sites in Haiti.
We request your immediate help with the unresolved problems of
shelter and emergency and long-term funding for Haiti. It is estimated
that 680,000 Haitians are currently living in displacement camps.
Vulnerable people living in overcrowded areas with inadequate shelter
and surrounded by strangers are at a higher risk of suffering from poor
health and violence. These populations also have a much harder time
supporting themselves and providing for their families. Before the
earthquake, there was a lack of basic primary education and health
resources for most Haitian people. To further exacerbate these
conditions, only 50 percent of Haitians had access to clean water.
Government and civil society institutions are weak and under-resourced
and, absent a shelter strategy, vulnerable populations, many of who are
women and young girls, are at risk.
We urge that the U.S. Government's support to Haiti
prioritize the needs of the most vulnerable, focus on
strengthening Haitian capacity and leadership, and support
improved governance of Haitian institutions.
We would like to request that the Office of Foreign Disaster
Assistance (OFDA) be supported to carry out life saving support
to the people of Haiti, especially in the areas of water,
sanitation, and shelter. OFDA was cut by 33 percent in the FY
2011 Continuing Resolution. Further cuts severely undermine the
people and the programs that many NGOs are trying to implement
in support of the Haitian people. We would like to encourage
full funding of OFDA's programs in the fiscal year 2012 annual
budget. We ask that you protect this humanitarian and poverty
focused account that functions to protect thousands of lives in
Haiti.
Furthermore, we believe that the support of the United
States Government can and should be targeted at some specific
priorities for Haiti, including customs clearance delays: the
United States and other international Non-Governmental
Organizations (NGOs) continue to experience delays of many
months to clear imported items that cannot be found on the
local market. This includes lumber for the construction and
repair of shelters and other infrastructure, medical supplies,
communications equipment, and other essential items. Right now,
activities are hampered by such delays which make it difficult
to implement the programs that are designed to protect lives
and livelihoods. We recommend immediate and sustained
intervention to help the Government of Haiti resolve the above
issues.
Thank you.
______
Responses of Regine Simon-Barjon to Questions Submitted
by Senator Marco Rubio
Question. What is your assessment of the U.S. Government's strategy
to engage with and strengthen the Haitian private sector as part of our
reconstruction assistance?
Answer. The real secret to removing Haiti from its aid and poverty-
dependency trap is by building and establishing a sizable fiscal base
via massive productive investments in Haitian private sector. This will
contribute more to ``helping the Haitian people, help themselves'' on a
sustainable basis than merely the traditional aid programs.
The focus should be on four primary sectors: (1) Technical Support
to the Government of Haiti and its pertinent branches, (2) Agriculture,
(3) Renewal Energy, (4) Credit Access, which are interrelated.
These priority sectors can support Haitian productive sectors by
addressing specific existing indigenous potentials which have the
ability/capacity to simultaneously impact, in the immediate and the
long term, more people, as well as the Haitian market economy.
Many of the project examples in this complementary report to the
June 23 testimony can also be implemented in conjunction with the
Inter-American Development Bank (IADB) and/or the International Finance
Corporation (IFC) or other such institutions. Most projects should be
able to offer financial sustainability and viability.
(1) technical support
Technical Support, training and assistance in good governance and
organizational skills at the Haitian executive, parliamentary and
municipal levels to establish a workable organizational system with the
requisite expertise and access to information needed within the
Government of Haiti (GOH).
This proposed program will include the experienced U.S. and
Haitian-Americans to serve as technical agents to train and engage
Haitian civil servants on best governance policies, share expertise and
organizational skills as well as establish priorities, provide the
necessary focus to improve United States/Haiti bilateral relations and
to establish common and practical ground, especially on the political
and economic fronts.
This program will also seek to focus, organize, and leverage both
local and Non-Governmental Organizations' (NGO) assets to better
contribute to economic development, Haitian economic sustainability.
The program may also present an instrumental venue in working and
engaging the Haitian parliament to build bridges and establish vested
interests and goals.
--U.S. jobs created: 10 to 15
--Haiti jobs created: 150
--Estimated annual costs and operations: US$5,000,000
(2) agriculture
The Haitian Agricultural Sector represents 25 percent of Haiti's
GDP and employs two-thirds of its workforce. Haiti has 700,000 hectares
of unused/underutilized lands which can service this sector, contribute
to food, energy security, and create thousands of jobs. The needs of
the agricultural sector are:
i. Irrigation and drainage
The rehabilitation of Haiti's watersheds and rivers, canals and
drainages systems will reduce the risks of floods which cause annual
loss of life, crops, and livestock, and will in turn result in improved
crops' yields and thereby, farmers' income and contribute to improved
food security.
This program can easily accompany the ongoing ``Cash for Work''
program by: (a) Partnering with NGOs and the GOH, and (b) employing
workers to rebuild and/or build existing or new canals and repair
antiquated drainage systems.
Example: The Province of Leogane, the traditional sugar cane region
of the country suffers from massive flooding every year. There is
important ongoing irrigation work being done by an estimated 12
different NGOs expected to be completed in December 2011. The result in
theory will be that by the aforementioned date, irrigation (water) will
be available to 4,000 hectares (ha) of the province of Leogane.
However, there is still secondary irrigation and drainage work that is
needed to both secondary canals and to the province's additional 3,000
ha.
Leogane's total irrigation canals' length is 90 kilometers (KM) of
which only 20 km have already been done with concrete. This leaves 70
km of mud-made canals which need to be rebuilt in order to ensure
sustainable agriculture.
In addition, because the cleaning of both the irrigation and
drainage canals must be done annually, it is imperative to establish
viable partnerships between the regional farmers and an agroindustrial
company--in this case BioTek Solutions, Inc./BioTek Haiti--to ensure a
market for feedstock/sugar cane and the State (via its Ministry of
Public Works) to ensure infrastructure maintenance and continuance.
--Estimated job creation: 32,000
--Province of Leogane irrigation/drainage cost: US$25,000,000
--Estimated annual maintenance and operations: US$465,000
--Estimated annual return on investment: +US$42,000,000
The rehabilitation and optimization of Haiti's only operating sugar
mill, the Darbonne Sugar Mill (at an estimated cost of US$50 million)
to complement Leogane's existing agricultural/sugar cane acreage will
provide a return on investment as follows:
The reduction of Haiti's annual sugar imports by a minimum
of 26 percent, representing US$30 million depending on
fluctuating sugar import price;
The reduction of Haiti's estimated annual trade deficit;
The provision of up to 15 megawatts (MW) of more consistent
affordable and accessible electricity provisions to more
people;
The potential for new entrepreneurial development as a
result of electricity provisions of compost and fertilizer
(which in turn increase crops' yields and farmers' income).
ii. Agricultural research and development to include seed bank/
nurseries
To select, multiply, and initially distribute at no cost to farmers
improved, disease resistant seeds and plants which will ensure higher
yields and result in higher income for farmers. This will also
contribute to greater food and energy security.
This project should become economically self-sufficient within 5
years with farmers earning enough from previous years' crops and
earnings increase to be able to afford to buy their own seeds to ensure
profitable crops.
The program should initially be a partnership between farmers,
pertinent agroindustrial company(ies) and the Haitian Ministry of
Agriculture. Initial financial investment to establish an Agricultural
Research and Development Center to include a seed banks and nursery
component should be supported financially and technically by the
pertinent agroindustrial companies and the Haitian Ministry of
Agriculture with U.S. and/or international support.
There are currently 20 ill-equipped public Agricultural Research
and Development Centers in Haiti and an estimated 3 private ones and 2
new ones in specific agricultural sectors (sugar cane and winter
vegetables). The United States and/or the international community
should optimize the capacity of these centers to facilitate and
expedite agricultural rehabilitation and reforestation.
It is suggested that U.S. investment in this sector compress the
above number to 10 AgCenters; and begin with Haiti's Primary
Agricultural industries (sugar, rice, poultry/egg [for livestock] and
such as coffee, mangoes, plantains, maize and winter vegetables which
can serve the U.S. markets as well as contribute to food security
locally. Dual/multipurpose crops such as jatropha, vertiver will also
serve to expand existing agroindustrial and agroenergy potential--while
also contributing to soil conservation, erosion mitigation, and reduce
the risk of floods if planted along river banks.
--Estimated job creation: 250 Ag professionals
--Estimated cost of rehabilitating 10 Ag Centers and financing private
centers: US$5,000,000
--Estimated annual operation costs: US$2,500,000
--Estimated return on investment: increased yields and farmers income,
and contribute to food security
iii. Access to fertilizer
After a brief and unscientific research in this field, the Haitian-
American Chamber of Commerce (U.S.) and BioTek Solutions, Inc./BioTek
Haiti SA called on three fertilizer/compost and waste to energy
companies which corroborate the great potential of recycling waste into
fertilizer, compost, and energy.
The companies all demonstrated an interest in working in Haiti--DCK
Worldwide (U.S.), Sequel IRM of Canada and Global Ecology Corporation
(GECO) all agree that the use of Haiti's capital of Port-au-Prince's
existing 1,600 metric tons (MT) of waste--which contains 75 percent
agricultural waste can be made into a viable and profitable business
with the production of fertilizer, compost, and energy.
Preliminary studies indicate that Port-au-Prince 1,600 MT of
Municipal Solid Waste (MSW) stream can produce upward of 12 MW of
electricity (conservative estimate) as well as compost and fertilizer.
The conversion and/or the recycling of waste into fertilizer, compost,
and and/or energy would serve multiple sectors.
Currently, the Port-au-Prince MSW department is subsidized by the
State at US$200,000 per month (US$2.4 MM) to collect waste for an
estimated +3 million people and operates at a US$1.6 million deficit
annually.
--Estimated job creation: 3,000
--Annual waste collection costs: US$4,000,000
--Estimated waste to energy plant building: US$75,000,000
--Estimated waste to compost/fertilizer plant: US$1,200,000
--Estimated annual return on investment: US$16 to 20 million (depending
on retail cost of fertilizer and compost)
This sector presents an ideal opportunity for the establishment of
Public-Private Partnerships and the inclusion of Port-au-Prince's 10
private waste collection companies to better work and collaborate with
the MSW Department--which does not provide the incentive of tipping
fees as is the norm in the United States. Addressing this sector would
ensure a return on investment which establish a financially self-
sufficient MSW department, as well as include the following:
The ability of the Port-au-Prince MSW department to pay for
waste collection services (estimated at US$4MM);
The provision of adequate municipal solid waste (MSW)
collection services for all of Port-au-Prince's citizens and
visitors;
Reduced potential for the spread of disease with a cleaner
environment;
Potential creation for an estimated 3,000 jobs;
The increase of more consistent accessible and affordable
energy provisions.
(3) renewable energy
Renewable energy production is feasible by making use of existing
indigenous products and assets such as sugar cane and other dual
purpose crops such as jatropha, moringa, and vertiver--can serve as
capacity-building for existing industries. These crops can create both
agricultural and industrial jobs.
The conversion of Port-au-Prince's 1,600 metric tons of municipal
solid waste into energy can contribute to job creation and toward
establishing viable entrepreneurship opportunities in Haiti--makes use
of indigenous or existing assets such as waste, including Municipal
Solid Waste to produce and yield a natural fertilizer with 10 times the
nutrient content of composting, according to Sequel IRM of Canada. This
results in the reduction of the use of fossil fuel fertilizers (which
Haitians can ill afford). The expansion of this existing sector will
serve multipurposes:
i. Reforestation;
ii. Soil conservation and flood mitigation with the planting
of specific crops on river banks (i.e., jatropha, moringa,
vertiver which can also produce bio-oil (bio-fuel);
iii. New entrepreneurial initiatives and job creation.
(4) credit access should be affordable and include
an agricultural credit bank
To meet this challenge to private sector development, the United
States and Haiti can establish and implement a Development Bank and/or
Haiti Enterprise Fund.
The Haiti Enterprise Fund can be underwritten by a capital
commitment from the USG, its investments and loans rolled over and
provide increasing leverage beyond the amount initially invested.
Through its activities at the microeconomic level, the Haiti Enterprise
Fund can contribute to an improved business climate and create an
improved ecosystem for investing and lending. This demonstration effect
would also provide assurances for the local banks of the risks and
opportunities in SME lending and attract foreign strategic and
financial investors, all of which would contribute significantly to
reducing the high local interest rates.
The Dominican Republic's Development Bank successfully raised funds
in part by using the USDA's U.S. Export Credit Guarantee Programs (GSM-
102 and GSM-103). A similar initiative in Haiti could pump up to US$2
billion into the Haitian economy (figures based on current imports).
The capital raised could then be invested in the public and private
sector development by such Bank's professional management, who should
operate independently of government control, but subject to public
oversight and sound corporate governance.
--Estimated program startup: US$250 million (in authorization)
Question. From the private sectors' perspective, can you identify
three initiatives that the Martelly administration can realistically
take at relatively low cost and in a short period of time to
significantly improve the business and investment climate in Haiti?
The listed sectors/programs below would immediately serve the
Haitian private sector as well as SMEs and contribute toward building
the foundation for economic development with the implementation of:
(1) The Darbonne Sugar Mill Project, to include the
rehabilitation of the Leogane regional watershed, irrigation
and drainage systems;
(2) Suggested expansion of the Cash for Work Program for the
provision of improved waste collection services in the Port-au-
Prince metropolitan regions resulting in Public-Private
Partnerships and a self-sufficient waste collection department
via the conversion of waste to compost, fertilizer, energy;
(3) Improved Access to Private Sector Capital via an
Enterprise Fund and/or a Development Bank which should include
an agricultural credit component.
--Estimated program costs: US$250 million
Question. How would you quantify the job creating impact of these
measures?
(1) agro-energy sector
i. The Darbonne Sugar Mill Project will create an estimated up to
32,000 jobs. Another potential project should include the building of
another sugar mill in the North Cap-Haitien region for both sugar and
energy production to service that region's planned Industrial Park and
tourism developments. The planned US$300 million Cap-Haitien Industrial
Park will host a 25 megawatt electricity plant.
A sugar mill as opposed to the planned/suggested diesel plant will
better serve the community and Haiti as a whole by completely
eliminating sugar imports (in conjunction with the Darbonne Sugar Mill)
and employ an additional 32,000 farmers in that industry.
ii. Waste collection--which is a great challenge in Haiti
especially in the metropolitan regions of Port-au-Prince and Cap-
Haitien--can create 5,000 to 6,000 jobs. An estimated 3,000 jobs waste
collection jobs can be created in the Port-au-Prince region alone, and
additional jobs in entrepreneurial activities such as recycling, waste
conversion into compost, fertilizer and waste to energy, thereby
producing needed electricity and other fuels while also making the
pertinent departments financially viable as opposed to the current
status which registers consistent deficits.
(2) improved access to capital and debt financing
i. The Enterprise Fund would provide a ``holistic'' approach to
rebuilding Haiti's private sector and policies and practices conducive
to Haitian private sector development. Its Board and Management of
seasoned investment professionals would develop and implement strategy
to jump-start Haitian private business development through equity
investments, loans, and technical assistance directly to Haitian SMEs.
If the experiences of the Enterprise Funds in Central and Eastern
Europe (CEE) are any guide, the Haiti Enterprise Fund would likely
create viable, sustainable micro- and small-business lending
facilities, commercial banks, mortgage lenders, leasing companies and
the like as well as make direct equity investments strategically in
catalytic businesses. In doing so, these precursor funds financed well
over 100,000 local businesses and created many more jobs. The Haiti
Enterprise Fund could be expected to create in the range of 50,000-
100,000 jobs in viable private businesses financed by the Fund.
Question. Regarding the Darbonne Project, have you sought support
from the IHRC?
Answer. Yes.
Question. If so, what factors are impacting or would impact prompt
response from the IHRC?
Answer. The lack of capital or funding greatly impacts projects'
implementation. The fact remains that the IHRC does not have ready
funding and funding can only be dispersed when available or when donors
have met or honored their pledges.
In addition, Haitian entrepreneurs are greatly limited by the
overall lack of access to investment capital investments. Large
projects with large budgets must seek additional seed and/or investment
funding from the Inter-American Development Bank and/or the
International Finance Corporation (IFC) or other Institutions in order
to meet the criteria for the minimum [investor/entrepreneur] seed
funding requirements.
Question. What has been your experience as an entrepreneur in
working with the IHRC?
Answer. The IHRC has been helpful and its staff has shared much of
its time and expertise.
Question. How emblematic are these experiences of the situation
affecting the larger business community in Haiti?
Answer. Most Haitian entrepreneurs and business people do not have
access to the IHRC and therefore cannot benefit from advice from that
body.
This is one of the primary reasons why the Haitian-American Chamber
of Commerce (U.S.) initiated the U.S./Haiti Technical Team to better
serve and liaise with the IHRC and other such organizations to promote
pertinent programs and share information, leverage assets, and meet and
match potential partners who can build and/or expand business capacity
that will contribute to job creation and economic development.
Question. How well do U.S. foreign assistance programs work in
reinvigorating private sector interest in Haiti?
Answer. There are 2 separate issues to be addressed in this regard:
(1) U.S. Foreign Assistance does not address nor invest in the
sectors which can present the most benefit and greatest impact to the
Haitian economy. U.S. assistance tends to reinforce AID dependency
rather than promote Haitian economic self-sufficiency.
(2) Though, the Martelly administration has signaled its intention
of leading the transition from the country's traditional commerce to
production, including attracting foreign investment necessary for such
needed development--such initiatives must include and reach out to
potential Haitian-American diaspora investors and Haiti's
entrepreneurial class or SMEs which represent 80 to 95 percent of
Haitian businesses.
In addition, programs and incentives must be accompanied by
tangibles such as a available credit and equity capital from an
Enterprise Fund and/or a Development Bank to assist in funding
entrepreneurial development and to build capacity--thus multiplying
businesses and creating jobs as well as result in increasing tax
revenues for the State. This cannot be easily accomplished through
traditional assistance programs, but requires the independently managed
approach of seasoned investment professionals, free of bureaucratic
constraints, but subject to public oversight, as is illustrated in the
proven model employed by the highly successful Enterprise Funds in the
CEE region.
(3) An exclusion of the Bumpers Act for Haiti only.
(4) Continued support and incentives for the expansion of the
Apparel/Garment sector.
(5) The inclusion for aid, assistance and funding to Haiti's
Agricultural Breadbaskets: the Artibonite Valley and the Plains of the
Province of Leogane for agricultural cultivation and production for
food and energy security--as well as incentives and programs to
encourage U.S. agricultural companies to expand and replicate
operations in Haiti. This will create both U.S. and Haitian jobs,
expand and secure U.S. and Haitian markets.
______
Responses of Gary Shaye to Questions Submitted by Senator Marco Rubio
Question. In your view, what are Haiti's most pressing humanitarian
needs at the moment, and to the extent that you can tell, in the next 6
months?
Answer. In terms of the most pressing humanitarian issues, I would
like to put forward the following issues, all of which have been
discussed among the international nongovernmental (INGO) community. It
is important to say that all of these are complex issues, and the
ability to resolve them may well depend on how quickly the new
government takes over leadership of the government ministries.
The purpose of raising these issues is to focus the response on
those areas that are viewed most critical by the many NGOs that are
working at the community level. While Save the Children addresses many
of these issues in our own programs, our knowledge of the context and--
more importantly--regular communications and information from other
NGOs, including the 15 members of the International NGO Steering
Committee, made it possible for us to respond to this question.
(1) Resettlement and forced evictions
Forced evictions have taken place over the last year and continue
taking place with no clear action to prevent and respond to them.
A new relocation plan for six camps has been designed by the
Haitian Government. This is a very positive step, but articulation
between this and the other 1,000 camps is unclear.
Timelines and availability of alternative solutions also need to be
defined.
There needs to be greater clarity on the funding that will be
required to support a holistic resettlement strategy.
Discussions need to take place with partners on how the relocation
plan will be implemented.
As resettlement is directly related to the potential for
livelihoods there needs to be greater clarity about the livelihoods
options for those that will be relocating.
(2) Water, Sanitation, and Hygiene (WASH) and cholera
There has been an increase in the number of localized cholera
outbreaks (e.g., Carrefour, Leogane, Petit Goave/Grand Goave), which is
likely related to the start of the rainy season, and flooding in a
number of areas with poor sanitation. In other communities where
prevention activities have decreased there are concerns that we could
see another spike in cases.
In some cases the planned closure of cholera treatment clinics and
units (CTCs and CTUs) will limit the capacity for response, especially
in remote areas where the next nearest facility could be hours away,
often not enough time for a patient to receive the necessary treatment
and care.
Funding for shelter construction does not systematically allow for
an integrated approach to WASH and shelter and that is just what is
required to reduce the spread of cholera.
The absence of safe waste management and treatment systems impacts
the ability to control cholera and more generally to ensure proper
treatment of waste.
There are also challenges in the timely coordination of collection
of epidemiological data between local and national levels.
Distributions of hygiene materials have yet to take place within a
context where actors are downsizing their operations. As a result of
the downsizing there are potential shortages in staff available for
distributions.
(3) Protection/child protection/social protection
Coordination of Sexual- and Gender-Based-Violence (SGBV)
interventions amongst humanitarian actors and between humanitarian and
government structures remains patchy.
There are financial barriers to access to health care for the whole
population, in a context where increased prices translate into
decreased expenditures on health care.
The displaced situation impacts the likelihood of children being
abandoned, separated, economically or sexually exploited and
potentially trafficked.
(4) Prices increase/food crisis
Increased food prices result in decreased expenditures related to
food, health, education, and increased debt in a context of the
conclusion of Cash for Work interventions and an increase in global and
national oil prices.
For vulnerable households, further price increases are likely to
result in further decreased expenditures dedicated to food, both in
quality and in quantity.
Question. Could you share your experience in engaging the
Ministries of Commerce and Education and the Central Bank in the
implementation of your Business Development Services and Micro finance
Grant program for Haitian small businesses?
Answer. Save the Children has not had sufficient dealings with
these entities to provide a useful answer to this question and would
refer the Senator to our colleague organization, Oxfam, which has had
more experience with these bureaus. A contact name at Oxfam will be
provided by our office in Washington.
______
Responses of Maj. Joseph Bernadel to Questions Submitted by
Senator Marco Rubio
Question. Can you describe two diaspora-led or supported projects
that you have advocated for at the Interim Haiti Reconstruction
Commission?
Answer. Vilaj Vilaj is a very well-designed project and very
responsive to the diverse needs of the Haitian community. I met a few
times Mr. Mervil to advise and support them in the different stages of
submission and review with the relevant authorities. Vilaj Vilaj intend
to rebuild villages in Haiti. The first one is planned to be built in
Paillant, in the Nippes department. This first village should
accommodate around 5,000 people, while its infrastructure should allow
it to provide enough energy, services, and agriculture to be self-
sufficient. The success of this project lays on citizen participation
and democratic life, that are essential notions as well as sustainable
development and self-determination.
Project Grace is a comprehensive plan for sanitation and potable
water for Haiti, based on a unique kiosk-based technology and would
reach 2,000,000 residents outside the Port-au-Prince zone. The kiosks
could be rapidly deployed and have a life span of 15 years. This plan
will serve to provide sanitation and potable water while providing jobs
and contributing to the local economy and will also be a clear and
concrete demonstration to the world that Haiti is in the process of
bettering the living conditions of its populace. The project is based
on science (assuring protection against Giardia lamblia and
Cryptosporidium, two parasites prevalent in Haiti as well as bacterial
contamination), can readily be deployed, is aligned with cultural
sensibilities, and is a cost-effective way to provide a solution for
extremely pressing needs.
Other projects that I have advocated for/discussed/provided context
and administrative direction include Ville D'Espoir (a new development
at Saint Marc), The Haitian League Lakou Network, Association des
Cultivateurs du Nord et du Nord'Est (Nonprofit Farmers' Association),
FurnitureOrigins-Ayiti, Coalition for Sustainable Trade in Haiti, and
Art Creation Foundation For Children expansion. In addition, countless
number of other organization both diaspora led and supported have been
provided innumerable hours of advice and counsel in their quest for
Project Submission to the IHRC.
Question. How effective is the IHRC in coordinating and responding
to private sector projects for reconstruction?
Answer. IHRC has various systems in place including an entire
project review process that is undertaken by the director of projects
in consultation with the team and the GOH. IHRC has also a donor
liaison officer who works closely with the key donors and the private
sector to make sure that the IHRC gives private sector projects the
necessary attention.
Question. Can you describe your experiences engaging with the donor
community to secure funding for and approval of projects?
Answer. IHRC has a process in place and as a Board member, my
function is to deliberate and provide advice on projects over $10
million reviewed by the Team and the GOH. Board members do not engage
with the donor community to secure funding for an approval of any
specific projects. As the Representative of the Haitian diaspora, I am
a nonvoting member of the Board.
Question. One of the IHRC's goals was to serve as a strong
accountability model to future Haitian governments.
How would you rate the work of the Performance and
Accountability Office in tracking project benchmarks?
Answer. The PAO has already put in place reports on all existing
projects, this reporting being RBM (results based management) oriented,
hence clearly presenting results and related achievements and
challenges to project implementation. The reporting also provides for
comprehensive financial information, thus enabling transparent and
proper evaluation of projects by stakeholders, third parties and the
public. The PAO has put in place a progressive approach to project
monitoring.
How effective is the online system for Haitian organizations
to monitor foreign assistance donations and distribution?
Answer. At the onset, many complained constantly about the
difficulties of interacting with the system. Over time, the system has
improved although it continues to have a number of areas needing
technical review.
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