22416: Severe: Assembly/shmebly (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Constantin Severe <csevere@hotmail.com>

I've been following the assembly/Grupo M discussion with a lot of interest
because it touches on the future of Haiti's economy. While I more or less
agree with the Simidor/Vilaire side of things, but here are a few thoughts.

Assembly plants offer a quick way of increasing employment, and even with
their low wages I doubt if there is much trouble finding workers. Of course
they should be allowed to unionize,

In a perfect Haiti, the economy would be highly diversified with a highly
trained workforce producing products, including both manufactured and
agricultural goods, that the world the world couldn't live without. That
Haiti doesn't exist now and probably won't in my lifetime. This doesn't mean
Haiti has nothing to offer just that we need to be realistic.

If I was a big shot executive looking to put an assembly or any other type
of  plant somewhere I don't think Haiti would be on my list, or the list
that backed up the main list. There are cheaper countries----China, India, a
host of African countries. Safer countries---take your pick in the West
Indies. Better educated---also take your pick. Cooler countries---- can't
think of one. What might sway me is distance to the U.S., favorable tariffs,
and gov't incentives. Given Haiti's current demographics and situation it
probably should consider itself lucky that a non NGO or UN agency is willing
to put money into it

Assembly plants whether you consider them Haiti's salvation or bane can be a
useful jump off to something better. Several countries, including South
Korea and Japan have used assembly plants as starting points in creating
viable multi-tiered manufactoring sectors. The catch is in order for that to
happen there would need to be a wide ranging gov't plan, judging by the past
I would not hold my breath. Unless the plan involves taking expropriating
peasent land. While Haiti's business elite may move beyond its import based
cul de sac, I wouldn't count on it. Judging by other countries past
experience, foreign investment is going to be a key factor in Haiti lifting
itself up.

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