14820: Pierre Jean: Re: 14797: Karshan: Feb. 7, 2003 Issue Papers: Promoting Investment and Increasing Minimum Wage (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Pierre Jean <pierrejean01@yahoo.com>

Ms. Karshan,

Your issue papers are quite informative. This is
information that should ave been published a long time
ago. While there are many points that I disagree with
in your papers, at least they are a good basis for
discussion.

I have noticed that there is one sector of Haitian
life that is conspicuous by its absence: economic
development.

It is no secret that the economy has taken a serious
hit and that the situation is critical. What I have
not seen is what, if anything, the current
administration plans on doing to improve the
situation.

The few foreign investments you have listed in your
investment promotion piece are not worth much, I am
afraid, and will have very little impact. In fact, I
dare say that the Hilton deal will not bring anything
to Haiti except maybe a few jobs. Clearly, the
administration will have to do better than that.

Economic development is not measured just by jobs, but
by the establishment of industries, the training of a
local managerial force, and the expansion of
opportunities for the younger generations, among other
factors. The shaping of a vision for the economic
development of Haiti is sorely lacking in the
documents submitted.

Also, on the subject of investments, what is not
addressed but which is absolutely key is to what
extent will the administration work to change the
investment environment for foreign investors
(including the Diaspora):

+ there is no discussion of the improvement of key
infrastructures, where Haiti is absolutely not
competitive. Powering plants using generators is not a
viable solution in the long run; high port charges
(among the highest in the Western hemisphere) do not
help; getting shipped equipment or material out of the
Port is an incredible nightmare in and of itself, due
to the unbelievably high level of corruption at all
levels of the APN and Customs structure and despite
the highly advertised customs clearing process
(Sydonia ???) that was supposed to make things simpler
for everyone.

+ one of the major factors foreign investors and
companies take into account is their ability to
protect their in-country investments. To the extent
the Haitian judicial system cannot adequately resolve
issues relating to private property (because of an
unfavorable legal code or because of corruption)
foreign investors will more likely flock to "safer"
countries. By the way, this applies not only to the
apparel industry, which figures prominently in your
piece, but to any type of industry that requires
investments in property (land/buildings), plant and
equipment.

+ while it is not my domain, the isuse of political
stability is of course a major deterrent to any
significant interest in Haiti right now.

+ I don't see any discussion of agriculture and
agribusiness in your pieces anywhere. Didn't President
Preval emphasize the necessity to nurture agriculture
as a key component of national production? What has
happened since then? How come we no longer hear about
that under President Aristide?

I doubt the minimum wage increase, while praiseworthy,
will have much of an impact. As you well know, most
people work in the informal sector, where the
government cannot enforce any type of regulatory
decision,let alone enforcing minimum wage laws. So
only a few businesses in the formal sector will be
affected by this increase, which is symbolic in
nature.

Pierre Jean