Abstract
This paper analyzes the impact of foreign financial assistance on Haiti, the various types of rehabilitation programs undertaken using foreign aid, and the role of the government in developing healthcare facilities by analyzing a wide variety of source materials. In the absence of foreign aid, Haiti would have been worse off because of weak institutional structures and inadequate delivery mechanisms.
Haiti is in the lowest quartile for all the wrong reasons—extreme poverty, poor health and sanitation, high unemployment, and collapse of institutional mechanisms. Haiti ranks 163 among 188 countries in terms of human development with 20 percent of the population living in severe poverty and another 22 percent in near poverty (Human Development Report, 2015). Recently, a string of natural disasters, extermination of local Creole pigs, increasing food imports, and domestic intervention by some countries have worsened the financial situation of most Haitians.
Acemoglu and Robinson in their path-breaking book, Why Nations Fail, suggest that countries such as Haiti have failed to impose order over their territories, resulting in instability and lack of economic progress. In Haiti, there were hardly any economic incentives for enforcement of rules and property rights and development of inclusive institutions. This has resulted in economic stagnation and worsening quality of life than it was half a century ago.
Impact of Foreign Aid on Haiti
In 2016, United Nations Development Programme (UNDP) earmarked US$ 47.22 million for overall improvement of Haiti. In 2014, Haiti received US$ 1,083 million as Official Development Assistance (ODA). Haiti receives substantial amount of aid in comparison to its GDP of US$ 8.7 billion. The bottom line—Haiti continues to be poor, despite receiving large amounts of aid. However, it is not all doom and gloom in Haiti as compared to Africa and Afghanistan. Many projects have created an impact on the citizen’s lives and brought cheer on their faces.
Preserving the pristine ecosystem. After the 2010 earthquake, Norway helped in building more than 1,300 linear meters of river embankments. About 150 environmental monitoring officers have been posted in various protected zones, and 5.5 million seedlings planted in 5,000 hectares of land between 2010 and 2014 (United Nations Development Programme, 2014).
Revitalizing agriculture. The rice yield in Haiti averages around 1.83 tons/hectare, while rice yield in the Dominican Republic is the highest with an average yield of 4.85 tons/hectare. Haitian agriculture is hampered by lack of irrigation facilities, unproductive land, and unavailability of quality inputs. Many foreign countries have been trying to improve agricultural practices in Haiti. Cuba and Venezuela are helping Haiti to build new mills, while Taiwan has encouraged the formation of cooperatives in the Arbonite valley and southwestern Haiti. This project provides access to improved inputs, gives technical assistance to farmers, and funds research aimed at boosting yields and improving quality. More than 4,000 farmers have seen their yields rise to 3.5 tons per hectare. But, there were delays in providing funds in 2015 that resulted in poor crop production (United States Department of Agriculture, 2016).
Improving Governance. Foreign nations and the UN are working to transform and not substitute Haitian public administration and civil society. They are using a three-tier approach to make an impact at the center, the department, and the community levels. Haitian Institute for Statistics and Information (HIS) received technical assistance, additional equipment, and databases, which have helped it to complete the 2012 national household survey. Ministry of Planning and External Cooperation received technical support to improve management of nation’s external resources. At the grassroots level, financial and technical support was provided to develop 140 communes. In addition, 15 municipal buildings and 9 vice-delegations were constructed (United Nations in Haiti, 2012).
Disaster Relief Management. The year 2010 saw the launch of a Disaster Risk Management Unit to provide quick relief in times of emergencies. A detailed macro-zoning plan was developed in 2011 for Port-au-Prince. In 2014, more than 200 professionals were trained to build earthquake-resistant buildings. A pilot urban risk management project was also launched to anticipate disaster risks in all the major cities.
Improving Health in Haiti
Health acts as a catalyst for increasing human welfare and income. There is a two-way relationship between health and income because both affect each other. Health has a direct impact on labor productivity. Healthy workers are more productive at work and have less absenteeism due to ill health.
The impact of health on education is very strong. Cognitive development, learning, development, and school attendance is dependent on a child’s health. A healthy population ensures that the government can channelize funding toward education and other social imperatives.
Citizens’ health determines a nation’s population growth and demographics. Finally, personal savings is a function of health. High healthcare costs can dwindle a person’s savings and force them into debt or poverty. Sixty percent of Haitians lack access to healthcare (Haiti Conference Paper, 2014). Poor families have to allocate limited money for vaccines and nutrition. Usually, choosing one means forgoing another. Around 23 percent of poverty stems from poor health and lack of healthcare facilities (Human Development Report, 2015).
Improving healthcare system using foreign aid
Despite allocating 9.4 percent of its GDP to public health, the country has one of the worst healthcare facilities in the western world; moreover, there are large leakages in the allocated budget. Private players provide 85 percent of healthcare in Haiti with 75 percent of them being non-profit players (Inter-American Development Bank, 2014).
In 2013, twenty health centers across the country were constructed (UNDP, 2014). Haiti also has the highest child mortality rates in the Americas. A new, five-in-one vaccine was introduced in the national immunization program to protect infants. Hence, under-five mortality rate has dropped by 11 percent. Boys and girls below the age of 15 have 70 percent and 74 percent chance of survival, respectively (WHO Report, 2013).
A pharmacovigilance team and two incinerators to dispose expired medicines have been set up in Haiti under foreign assistance. More than 59,000 HIV infected people have received treatment to increase their survival rate and quality of life. UNDP has treated 75 percent of patients with Tuberculosis in 264 health centers (UNDP, 2014). Deaths from cholera have reduced from 2.2 percent in 2010 to 0.4 percent in 2014, although, U.N. peacekeeping forces were the reason for cholera outbreak in 2010 (MINUSTAH, 2010).
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