The Never-Ending Crisis in Haiti: A Story of Lost Money and Lost Faith

MALTE WERNER

Recent developments in Haiti reignite concerns about increasing political instability in a country that is yet to find its way out of a long continuing crisis.

The Republic of Haiti is the poorest country in the Western hemisphere and has been in an almost continuous state of political and economic crisis ever since it gained independence from its colonial powers in the early 19th century.[1]

When a 7.0 magnitude earthquake hit the poverty struck country in 2010, large parts of the country’s residential areas and infrastructure were destroyed beyond repair, causing one of the worst humanitarian crises in modern history. Two million people lost their homes and more than 200,000 got killed during the earthquake, and an outbreak of cholera attributed to the negligent crisis management of the United Nations caused thousands more to lose their lives in the aftermath.

In addition to large amounts of international foreign financial aid to help the country and its people recover from the crisis, the Venezuelan government agreed to forgive $295 million in debt accumulated under the so-called ‘PetroCaribe’ programme which Haiti joined in 2006.

The programme allows countries in the Carribean to purchase oil from Venezuela below the market price with the remainder of the sum being paid back through a 17-25 year financing agreement, allowing for savings to finance desperately needed social and economic projects.

In November 2017, a special Haitian Senate Commission investigative report was released accusing high ranking government officials, including two former prime ministers, and heads of private firms of misappropriating $2 billion in ‘PetroCaribe’ loans[2]. The detailed report revealed that most of the missing funds have either been paid away in unaccounted disbursements or paid to contractors for projects left uncompleted. As a result of this, thousands of displaced Haitians still remain in camps or communities for displaced persons without access to the most essential amenities.[3]

Defending themselves against these allegations, the two former prime ministers mentioned in the report have claimed that the report was politically motivated and that the ‘PetroCaribe’ money had to be used, as the government at the time was relying on $12 billion in promised earthquake aid never delivered by the international community.[4]

Whether politically charged or not, the report once again confirmed the country’s image as one of the most corrupt countries in the world, ranking 161st out of 180 in the 2018 Corruption Perceptions Index.[5] This is not just deterring foreign investors and countries from providing the government with foreign aid, but it is also shaking the already brittle foundations of democracy in the country.

Since the report was published in October 2017, ‘PetroCaribe’ has become a synonym for corruption and loss of faith in the government in Haiti.

Due to the economy declining, the currency deprecating and the costs of living rising, this loss of faith in the government has now once again led to mass protests against the current president Jovenel Moïse who is holding office for two years now.

Although the president is now signalling his opponents’ willingness to enter talks, the situation does not seem to be calming down any time soon. With at least five reported deaths and several more injuries, the ongoing protests are once again an expression of the economic, social and political deadlock that has left an entire generation of Haitians in poverty and despair.


[1] https://edition.cnn.com/2013/10/17/world/americas/haiti-fast-facts/index.html

[2] https://www.miamiherald.com/latest-news/article184819023.ece/binary/Rapport_PETRO_CARIBE_OCTOBRE_2017_Final_Complet.pdf

[3] https://www.iom.int/news/iom-completes-first-road-massive-displacement-settlement-haiti

[4] https://www.miamiherald.com/news/nation-world/world/americas/haiti/article184740783.html

[5] https://www.transparency.org/cpi2018

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