INTERNATIONAL EQUITY MARKETS - HAITI

International Equity Markets - Haiti

International Equity Markets - Haiti

Introduction

Haiti is a country developing, which is an emerging democracy and experience that attempts to organize and rebuild after the earthquake that devastated a third of its territory. Yet with the same natural conditions starting as its neighbor, the Dominican Republic who lives compared rather well through tourism, Haiti occupied the number one tourist destination in the Caribbean in the years 1950, 1960 and 1970. Nicknamed "The Pearl of the Antilles", there was a time the most visited country in the Caribbean. Stock exchange in Hati is in its infancy stages. Government was unable to focus on the promotion and development of capital markets in the country as it remained busy in other important issues.

Discussion

Haiti's afinancial asystem aplays aa alimited arole ain asupporting aeconomic agrowth. aThis areflects aa abroad arange aof adevelopment achallenges, aincluding asignificant aweaknesses ain athe alegal aand ainstitutional aframeworks, athe afragile asecurity asituation, alimited acompetition abetween abanks, apoor agovernance, ahigh areserve arequirement aratios, athe aabsence aof aa afunctioning acredit aregistry, aand acrowding aout aby aBRH abond aholdings. aThe aresult ahas abeen alow acredit agrowth, ahigh aintermediation aspreads aand alimited aaccess ato acredit. aAs amentioned, athe acountry astock aexchange ais astill ain aits ainfancy astages awhich acan abe ajudged aby athe afact athat aeven athe awebsite ais anot aconstructed. aThe aeconomical aconditions aare aalso anot avery aencouraging aand aworld asituation ahas afurther aexaggerated athe asituation. aUnder athese aconditions a(and aneoliberal aIMF aconditional aties), aa aworld aeconomic acrisis athat aresults ain aeven aa afew apoints auptick ain ainflation aor aa acouple aof apoints adrop ain aGDP awould anot ajust aimpact aon athe abasic aneeds aof apoor aHaitians abut awould acompromise atheir avery aphysical asurvival.

At athe asame atime athe aelected agovernment ais anot aallowed ato aimplement aits aown adevelopment aor aeconomic arecovery aplans. aShockingly alittle ahas abeen adone afrom a2004 ato athe apresent aby athe aforeign apowers aand ainternational afinancial ainstitutions ato aassist aHaiti's arecovery aand adevelopment. aHaiti's ainfrastructure aremains acrippled aand ano asignificant amoney aby athe abig apowers ahas abeen aput ainto abuilding aroads, amarkets, ahealth acare aor aany aother ainfrastructure afor athe apeople. aOnly aVenezuela, aCuba, aand aa ahandful aof awell-intentioned acharities aor adevelopment aagencies ahave aprovided ameaningful aassistance.

The atotality aof athe aHaitian agovernment abudget acomes afrom aoutside. aThe aHaitian astate ahas alittle acapacity afor agenerating arevenue; aall athe aless aso aduring aan aintensified ainternational acrisis. aEven apart aof athe aCentral aBank ais abeing asold ain aa arecapitalization aoperation. aTax alaws ahave abeen arevised, abut aonly ato aspur aprivate asector adevelopment. aMeanwhile, athe aparliament ais aonly aminimally afunctional abecause aof aforeign aconstraints aand aconfusing aelections. aLast ayear afor aexample, aonly afive amajor alaws awere apassed.

Of acourse, athe aforeign aoccupiers ahave anot abeen acompletely aremiss aand aare amaking asome apreparation afor athe aexpected afallout afrom aa aworsening aeconomic acrisis. aOne asuch acontingency aplan ahas athe aUS afunding aa amilitary abase afor aMINUSTAH ain aCité aSoleil aas apart aof aits adevelopment aaid ato aHaiti...