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5895: Re: Re: 5873: Durban to Poincy/Dorce on Int'l Economics: Poincy Replies (fwd)
From: mark gill <email@example.com>
> From: Jean Poincy <firstname.lastname@example.org>
> My argument is not about Ayiti's incapacity to compete on the
> international market (although a concern). Rather, it is about the
> allocation of available resources along the country's production
> scheme. Where production is not aimed at responding to the nation's
> needs or the local market, not many resources should be put in use
> (remark that I don't say none). Cash crop activities are of such kind.
> For a government conscious about economic development should give a very
> low priority to such activities.
***economic development, of any kind, will not proceed until "capital
flight" ends. there is simply no "pool of funds" from which development can
receive impetus. "cocaine money" is lodged in banks outside of Haiti,
according to all the reports i have received, and besides, Haitian banking
practices are not conducive to providing "start up" funds for new business,
unless one is among the privileged few. how can development occur unless
monies are available? foreign investment has typically provided the monies
for new economic growth, at least in the past, and i see nothing happening
which changes this scenario.
the "import/export" scene is still rigidly controlled by a relatively few
families. this precludes new economic development in some respects.
further, bank credit is controlled, which further prevents growth. in the
treasury, foreign currency reserves are almost non-existent, which has a
profound effect on international credit. and, nothing on the horizen
suggests that such reserves can be replenished. in addition, the election
"mess" and the failure of Preval's regime to correct financial troubles adds
to a negative outlook to international creditors. custom receipts are down,
and it is this source of income that Haiti normally utilizes to provide
guarantees for long term loans. Haiti currently imports about four times
what it exports. now, this may not mean much to the average person, but it
is a "red flag" in the eyes of the international banks, who are the usual
source for capital funds.
unless i miss my guess, some on the list will accuse me of being "negative",
as has happened in the past. however, these statements are just laying out
some of the structural problems which prevent instituting a meaningful
"economic development plan". Haiti, like every other country today, is
dependent on interdependent relationships with other countries and
international institutions that provide credit. and, until some of the
above problems are corrected, talk of development plans will be just