In Haiti, Abductions Hold Nation Hostage

        Haiti, already a nation with a ruined economy due to decades of coups and political instability, is sinking further into destabilization. According to the IMF, 76 percent of Haitians live on less than $2 a day and 55 percent of those people live on less than 44 cents a day. The poor and working class are the ones most affected because they cannot afford the ransoms or protection necessary.

        This demonstrates one of the barriers to economic growth in Haiti. Most of the labor force is already in poverty and the kidnappings have only placed them in a worse situation. A majority of the labor force constitutes agriculture and many farmers and fishers are no longer able to work on their land in order to grow crops which could be supplied on the domestic market. This causes a reduction of labor input and further lowers growth. Structural unemployment abounds because many of these workers are not able to get the education necessary to find new jobs. Because many schools have been closed, there will be a less educated work force which equals less productivity. Another issue related to education and training is that a large percentage of young people and professionals have been leaving the country, creating a “massive brain drain” that causes the economy to potentially lose a more productive labor force.

        International financial barriers also play a role in this situation in the form of foreign investment. Since there has been an increase in crime due to the kidnappings, some nations are not willing to place their money in the country for fear that it might go to corrupt officials who won’t spend it where necessary.

The kidnapping crisis is merely a byproduct of greater economic problems in Haiti that go back as far as the Duvalier regimes, and simply stopping the armed gangs is not going to place the economy in a stable position whereas it can develop. If economic development, not simply growth, is to be achieved, then long term solutions must be sought out. The first goal would be to stem the animosity between political groups in the Haitian Parliament. For example, it would be best to have Preval reestablish the government by forming a coalition government whereas there is no majority party and then allowing open debates on major issues through formal political dialogues. A second goal would be the equal distribution of wealth, which is a reason behind the armed thugs resorting to violence and intimidation. Taxes could be increased for those who are in the elite, while educational reforms are being set which would lower tuition costs for students and save parents a large part of their income. Preval’s administration could also follow policies regarding the agricultural sector of the labor force and have there be programs in which a portion of the crops are sold as regional exports and the rest are used by the farmers for subsistence. In respect to the international community, Haiti has been readmitted to CARICOM, which could mean increased foreign aid if Preval follows through with the aforementioned policies and others which could benefit the economy and return foreign interest.