a1228: Re: a1210: Small Businesses? Poincy comments (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: "[iso-8859-1] Jean Poincy" <caineve@yahoo.fr>

> We all agree that economic development in Haiti
> requires investment at all
> levels. Yet, we perhaps fail to recognize the
> importance of the Diaspora in that process.

This is a myth when thinking in terms of money.

Investment is not the key to economic development.
Linkages between various sectors are what's needed to
boost the economy. For it necessitates a smart
coordination of productive activities among different
sectors. The country may receive all the money in the
world and never know the economic relief sought for in
attracting investments. The money only has a
supportive role when the initiative of production has
already taken roots. If no such is in light,
investment will have a negative return and the country
will not benefit from it.

Considering all this, the talk should revolve around
the wealth of the country which has nothing to do with
the amount money, but with the transformation of
resources available to produce something usable in
responding to the community's need. For instance a
community needs a paved road. It does not need money
for that, if so not much.  It has all the resources:
rocks, sand, knowledge of brick making and an abundant
idle labor force. All that is needed is a feasible
plan laid out agreed upon by the community and those
(private or public) initiating the activity.

Only then, there might be the need for money for
labors' compensation in building the road. Besides
labor, financing is of no use for any other things,
even for tools. The locals might be able to provide
locally made tools.  Once this is done, the linkages
are created between at least three sectors:
production, transportation and distribution. The last
two that fall in the category of service would have
had great difficulty to bloom had not the road been
created. That's the wealth needed to boost economic
development. Investment in terms of money or small
businesses is virtually absent.

Because small businesses tend to grow mainly in the
service sector, they would be born and die quickly if
the latter is not propelled somehow by some other
sectors. Ayiti can receive all types of entrepreneurs
to invest in it to never avail.  Ayitians tend to be
anarchic in their investment behavior. What to expect
anyway with an anarchic mentality? They do so in
activities they like, and sometimes just for the sake
of knowing they have an economic activity.  These
types of investment might not be good for the
country's economy and the individual investors would
suffer a severe lost because they don't come in sync
with the economic structure.

The suggestion would be to encourage investments (for
small businesses) in economic activities the
government is promoting as part of a framework of well
coordinated production activities among various
sectors. In Ayiti, the drum of investments is beaten
in the tune of tourism, cash crop production and the
assembly industry. They are the three worst things
that can ever happen to Ayiti. Imagine that investment
incentives for small businesses are about these three
only; the country will head straight for economic
extinction.

Since they all depend greatly on how the international
market behaves, whenever there is a chock, Ayiti will
feel it real hard. This is why one must think of an
economic development that will guarantee
self-reliance. That is possible only through the
linkages created in the transformation process.
Moreover, the production must first and foremost be
done for the internal market before considering the
rest of the world. When producing for the internal
market and with the available resources, there is a
greater chance to broaden the purchasing power base of
the country as more people are pulled into the labor
market. Tourism, assembly industry and cash crop
production (coffee, sugar etc.) just don't cut it.
They cause more harms than good.

If incentives for investment there must be, the blue
print and promotion of a well-linked economic
structure must be in sight first. Only then the
Diaspora or others can be called upon.


Ayiti has lived, lives and will live
Mozeb



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