a1243: Re: a1228: Re: a1210: Small Businesses? Poincy comments (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Hyppolite Pierre <hpierre@irsp.org>

Poincy,

I am not sure I get your point when you wrote that "Investment is not key to
economic development". I know that if you stick with the status quo,
eventually no one will be able eat, go to school, or do anything for that
matter.

Your overall point on the matter of coordination, linkage between different
sectors of the economy is however accurate. I am not sure whether I conveyed
the impression that things should be done in whichever way. What I mean to
say and which I believe in, is that Haiti needs a strategy for development
and the Diaspora can and should play a major role in that, regardless of who
or which group or faction is in power. I also believe that tourism should be
important in economic strategy of government.

Just like you, I tend to think that Haiti needs coordination to make better
sense of, and bring rationality to the economy. Nevertheless, for that to
happen, Haiti needs to consider the matter of economy as a permanent
national security issue. What we probably need is some form of permanent
institutional body to deal, with economists from different understanding of
that field who can help draw plans and suggest coordinated strategies for
that matter. Economists from PAPDA, CLED, and others like Kesner Pharel for
instance should be part of such a structure.

In fact, I even wrote a text about that in November 2000, which you can
still read on windowns on Haiti. I think the link for it is
http://www.gajma.com/windowsonhaiti/editorial.html.

Hyppolite Pierre
IRSP
http://www.irsp.org


>
> 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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