What Has Affected Poverty in Haiti

¶ … poverty challenges in Haiti. Haiti is one of the poorest nations in the Western hemisphere and the Caribbean Sea. It occupies the western third of the island of Hispaniola between the Atlantic Ocean and the Caribbean Sea. The nation's demographic statistics reveal the effect of extreme poverty. This condition has significantly reduced life expectancy to 49.2 years. This is highly contributed by high infant mortality rates due to poor health services and general high death rates. Despite the slow population growth rate and extreme poverty, Haiti is one of the most densely populated countries in the world with approximately 95% of the population made up of black people. Extreme poverty in Haiti and the challenges that this condition causes to the people are the main reasons for carrying out this study. The research explores the political, economic and social structures of Haiti in relation to the poverty level. It is also of much interest to examine how external bodies such as U.S. Aid, IMF and UN Aid influence the level of poverty in this nation.

The object of the research is to examine the causes of poverty, the mystery it causes and possible solutions to this situation. The study offers various strategies put in place to reduce poverty, the challenges that these strategies face and possible alternatives to this problem. The reason for selecting this research is to provide an insight into this significant challenge that faces Haiti for decades. The research will provide useful information about the poverty situation in Haiti. The effects of the situation and the actions of both internal and external participants to save the situation in Haiti are part of the research. There is very little research concerning this challenge in Haiti. Very little is available to the outside world about the actual situation of poverty in Haiti. This reason proves the reason for more research in order to explain the problem and seek possible solutions. The research also examines the macroeconomic environment in Haiti in relation to the poverty level. In analyzing the problem, the research explores the cultural background of the people, the geographical position of the nation and political factors that may lead or accelerate poverty in Haiti.

Developed nations and international bodies participation in the Haiti's situation can be a significant factor into the poverty in Haiti. How these bodies and nations take a role in activities in Haiti may largely accelerate or reduce poverty in Haiti. In examining the geographical position of the nation, certain factors such as natural calamities and disasters may also largely affect the poverty situation in Haiti. In tackling this problem in Haiti, the research uses both dependent and independent variables. Poverty is the dependent variables while various factors that may accelerate or reduce the level of poverty are the independent variables. These independent variables may include both internal and external factors. Internal factors are political and social structures in the nation, geographical location of the nation and macroeconomic structures. External factors include foreign aid from other nations and international bodies such as UN Aid and IMF Aid. The effect of each variable in relation to the poverty in Haiti is important in understanding the problem. To analyze the problem in Haiti, the research uses a time frame of 13 years that is from 1995 to 2008. The reason for this period is the availability of research materials about the situation in Haiti and the significance of the problem during this period.

Discussion

There are various definitions of poverty. In general, poverty refers to the inability to meet basic needs such as food, shelter and clothing. It is the inability to pay for basic needs of humans and it simply described as being poor. Poverty incorporates many aspects of society. Poverty is a complex problem, which requires a keen examination into the many factors of the society. In the case of Haiti, poverty is more than just a lack of money to meet the primary needs. It is about people and families. It is robs people of their dreams for tomorrow and a severe deprivation of basic human needs which include water, healthcare, food and education. Studies indicate that, the poverty situation in Haiti encompasses a multitude of social issues including lack of proper housing and resources. Studies show that an estimated 80% 0f Haitians live in absolute poverty with a vast gap existing between a tiny wealthy minority and the overwhelming poor majority. According to Verner (2007, p. 16), in 2001, Haiti's extreme household poverty was at 49% which means more than 3.9 million people live in extreme poverty.

Poverty levels in Haiti vary from one region to another. Researches indicate availability of more job opportunities in urban areas, which lead to high migrations into these urban centers. Large populations in the urban centers result in poor living conditions especially in the slums. Studies by Verner 2007 explain that, there a large difference in poverty among localities and regions in the nation. Data from 2001 statistics indicate that, rural households had the highest rates of extreme poverty with an approximate of 58% being extremely poor. Over the last decade, poverty levels have significantly increased especially due to fall in prices of agricultural products, which has a high contribution to the Haiti economy. Poverty levels in the rural areas of Haiti rise due to the migration of people to urban towns to seek white-collar jobs. The vast gap between the poor and the rich class does not allow equal distribution of resources especially in the rural areas, which forms the backbone of agricultural productivity in the nation. Many factors contribute to the increased levels of poverty in Haiti. Independent macroeconomic factors that significantly contribute to increased poverty include inadequate levels of investment, poor institutional capacity, underinvestment in human capital, especially education and poor quality of social spending.

A report by the International Monetary Fund (2001, p.38) indicates that, majority of macroeconomic accelerators of the economy are funded by donors and implemented directly by non-governmental organizations. Political instability in Haiti influences this situation, which destructs smooth flow of the macroeconomic activities. Donor funding is also not constant and results in breaking down of macroeconomic chains when there are no funds. Due to poverty and disparities, people have little or nothing to save in order to speed up the pace of economic development in Haiti. Investment in human capital in terms of education is necessary for economic development IMF reports (2001,p.39) shows that, enrollment in schools mainly in the rural area primary schools is as low as 64% and only 15% for secondary schools. The private sector provides much of the education, NGOs in particular. The report also shows high rates of school dropouts with two thirds of children dropping out before completing the six-year course. Studies by Verner (2007, p. 17) indicate that from 1995 illiteracy levels have significantly increased reaching 43.3% in the year 2000. Verner explains that, efforts to lower illiteracy are hampered by the fact that many of the illiterates are adult people. Poor education leads to insufficient skilled labor force required for economic development and poverty reduction.

Regulation of macroeconomic factors is not easy due to money laundering and poor institutional capacity. The central bank does not carry its monetary functions effectively due to political interferences. Allocation of funds into beneficial sectors of the economy is not on equitable resource allocation basis. The funds go into sectors that do not aim to tackle the problem of poverty. Projects handled by the central bank are not self-sustaining and increase the government's dept. Much of the government resources end up into repaying loans that international loans that are not beneficial to the nation. Poor quality of social spending accelerates poverty levels because people use much of their income on current expenditures. This result from the fact that people desire to meet their essential needs and very little is available for saving. Political instability leads to poor formulation of rules and regulations that maintains a stable macroeconomic condition. Poverty in Haiti has a relation to underutilization or unavailability of assets particularly human and physical capital, credit and basic services.

Poor governance and political instability characterize the poverty condition in Haiti. A strategy report paper by the International monetary Fund (2008, p. 25) indicates that, poverty in Haiti is tied to a historical process of building political power and organizing the economy around the interests of the rich minority. The report further explains that, the root causes of poverty in Haiti lie in the lack of opportunities, unequal distribution of resources and assets, and constraints related to their use. Political instability and poor governance characterized by poor resource allocation does not provide easy access to potential economic resources by investors. Political instability does not attract potential investors in the country. IMF strategy paper 2008 explains that poor and weak policies by the Haitian government also play a role in accelerating poverty levels in Haiti. Political instability and corruption contributes to poverty in Haiti for many decades. A system of governance that highly relies on foreign aid and borrowings is what characterizes the nature of the Haitian government. Structural reforms undertaken since 1995 have not adequately measured their impact on distribution of resources and structural constraints of the economy.

Policies and deregulation programs rarely follow initiatives to strengthen the supply chains of resource allocation and distribution. Various social aspects of the Haitian society contribute to increased poverty levels. Social aspects that have an effect on the poverty situation may include cultural beliefs and perceptions towards formal education and health services. Cultural beliefs that do not allow education of women are a factor for the many illiterate women in the rural areas of Haiti. Early school dropout by young people is also an attribute to the cultural formation of Haiti, which does not see the importance of formal education mainly to the young generation. The education system is poor and uses French, which is a foreign tongue to the masses. Research shows that, overcrowding in schools and the use of harsh punishments to punish students chase many young people away from schools. Lack of social infrastructures such as roads and healthcare does not allow economic advancement to people of Haiti especially in the rural areas. There are no passable roads for transportation of farm produce to the market places. Poor health facilities, electricity and water systems hinder various economic and social activities from taking place efficiently in Haiti.

Natural calamities and disasters have significantly increased poverty levels in Haiti. A natural calamity such as the tsunami and earthquakes, which causes massive destruction of property and deaths of people, is a blow to the already worse poverty situation in Haiti. Poor measures to handle disasters and emergencies in Haiti accelerate the effects of natural calamities. According to a study by Lundahal (2013, p. 186), geographically, Haiti is in an area, which particularly exposes it to threats of tropical cyclones. Studies show that, for the past 200 years people have been cutting trees in the mountainous regions without replanting. This has the effect of causing massive soil erosion from the uplands to the Caribbean Sea. The consequences of this soil erosion are increased poverty levels due to lack of fuel and suitable land for agricultural activities. Ignorance and lack of education concerning the effects of environmental degradation are the main causes of the continuous soil erosion. The government poor response to natural disasters and poor formulation of policies to handle emergencies increases the effects of natural calamities when they occur. Lundahal (2013, p. 187) notes that, constant dependence of the Haitian government on foreign aid during times of calamities does not allow them to formulate strategies that effectively mitigate the occurrence of disasters.

Foreign aid from donor governments and international bodies such as IMF, U.S. Aid and UN Aid are the independent variables that either positively or negatively affect the poverty condition in Haiti. Internal governments and donor agencies highly influences the situation in Haiti. These bodies influence policies and regulations in Haiti and determine implementation of development programs. For many decades, IMF and UN Aid have participated in the provision of aid to the development programs and projects in Haiti. Submission of huge amounts of funds to the Haiti government and NGOs takes place with the aim of promoting the lives of poor people in Haiti. IMF Aid in particular takes a role in analysis the development needs of the nation and comes up with special funds that will promote the lives of people and reduce the level of poverty especially in the rural areas of the country. According to a report by IMF (2001, p. 39), the body prepares a consultation and monitored program that looks into the main factors that cause poverty in Haiti. The report provides information concerning the effects of poverty to the people and the environment. According to the report, the body finds out that the country suffers from severe environmental problems which results from the high levels of poverty, high population pressures and political instability. From the 2001 report by IMF, the body influences much of the government spending into beneficial sectors such as education, health and justice. The IMF does this by directing large percentages of its funds to such areas. Haiti's yearly budgets rely heavily on the funds provided by UN Aid and IMF. IMF report (2001) indicate that, apart from providing funds to the nation's development programs, the body also offers technical assistance in the form of missions and short-term visits of experts.

International Aid bodies support projects and programs that target poverty eradication in Haiti. Yearly reports by IMF indicate that necessary efforts are in place to maintain strong macroeconomic stability and strong political consensus for the implementation of structural reforms especially in the framework of poverty reduction strategy. In ensuring a political stable environment in Haiti, international agencies such as the U.S. Aid and the United Nations stabilization missions continually deployed to Haiti since June 2004. International bodies ensure peaceful coexistence in Haiti and regulate the carrying out of democratic rights of the citizens especially during general elections. As independent variables to the poverty problem in Haiti, foreign aid and other determinants of poverty such as natural calamities are both controllable and non-controllable. The Haiti government cannot totally prevent the occurrence of natural disasters but can put measures in place to reduce the effect of the calamities. Effective measures are available through a strong support of the willing government to handle the occurrence of disasters such as earthquakes and cyclones.

Political stability and maintenance of a stable economy by the Haiti government can put away foreign participation into their activities. Positive impact of foreign body's participation in reducing the poverty levels in Haiti. Foreign aid is unavoidable in times of problems and extreme levels of poverty especially in the case of Haiti. Foreign aid inform of soft loans that are invested in self-sustaining projects are necessary for the revival of the Haiti economy. Foreign loan investments in projects that generate revenues to repay the loans are necessary for the development of the nation. According to IMF report (2009,p.5), budget supplements advanced to the Haiti government in the financial year 2007/2008 helped to reduce sterilization of economic projects and cut down the cost of basic commodities to the poor people. U.S. Aid participation in the regulation of budget execution and implementation for the benefit of the poor is a positive aspect of foreign bodies' participation in the Haiti economy. According to the UN Aid special convoy for Haiti, the mandate of the foreign aids should be to assist the Haitian government and its people in implementing their vision and priorities.

Independent variables to the poverty situation in Haiti such as the foreign aid also have a tremendous effect. Advancement of loans by monetary organizations such as IMF leads to increased burden to the Haiti government. Most of the foreign aids are loans that result in debt crisis to the government of Haiti. Among the factors that accelerate poverty levels in Haiti is poor governance, poor distribution of resources and corruption. Foreign aid to Haiti is subject to embezzlement by the few elite at the expense of the suffering of many poor citizens. Direction of huge percentages of the foreign aids into beneficial projects does not take place. Research conducted by IMF covering 118 countries for the period 1980-2009 indicate that, foreign aid especially to poor and developing countries causes crowding out effect. Foreign aid has strong negative effect on domestic tax revenues in low-income countries. Crowding out effect takes place in the form of reducing the domestic tax revenues. Foreign aid in the form of grants has negative effects on revenues in countries with weak institutions. Foreign aid from U.S. Aid in terms of food to the Haiti people for example significantly affects agriculture in the nation. The aid result to locking out of Haiti farmers from business. From the above arguments, foreign aid should only supplement Haiti's personal efforts to reduce poverty levels. Foreign aid further leads to too much participation of foreign nations into the activities of Haiti. External control of their activities denies the nation to make its own decision without external influence.