1. 48 JUNE 2008 REPORT ON BUSINESS JUNE 2008 REPORT ON BUSINESS 49
Danger
reputation
money
DANGER
REPUTATION
MONEY
RISK
METER
art
the
investing
danger-ously
of
Risk takers who
venture into the
most chaotic
and forbidding
markets on Earth
sometimes strike
it rich. One of
the scariest today
is a short flight
from Miami
by Doug Steiner
photographs by
Carlos and Jason Sanchez
Joël Boutroue,
deputy special
representative
for the UN
Stabilization
Mission in Haiti,
on the roof
of mission
headquarters in
Port-au-Prince

2. 50 JUNE 2008 REPORT ON BUSINESS JUNE 2008 REPORT ON BUSINESS 51
he security briefing in Toronto for our trip
To briefly summarize how bad—or good,
Daniel Dorsainvil,
Minister of Finance:
“There aren’t
enough educated
people left to
do case studies
of investment
proposals forwarded
to the government.”
Hédi Annabi (right),
head of the UN
Stabilization Mission
t

3. 52 JUNE 2008 REPORT ON BUSINESS JUNE 2008 REPORT ON BUSINESS 53
Haiti: 500 years of turmoil
1492
Christopher Columbus
lands on “La isla espanola”
(later shortened to
Hispanola) and claims it for
Spain. The native inhabitants,
the Arawak, call it “Hayti,”
meaning mountainous land.
The Spaniards decimate
the Arawak population.
1697
Spain cedes the western
half of the island to
France, and it becomes
the colony of Saint-
Dominique. Hundreds
of thousands of African
slaves work the rich sugar
and coffee plantations.
Society divides along
racial lines, with French-
speaking whites and
mulattoes dominating
Creole-speaking
mulattoes and blacks.
1801
Toussaint L’Ouverture,
a freed slave who
became a French
officer, leads a
rebellion, declares
himself governor
general, and abolishes
slavery. France
suppresses the rebellion.
1804
Jean-Jacques Dessalines,
one of L’Ouverture’s
lieutenants, defeats
the French,
declares Haiti
an independent
nation, and
proclaims
himself
Emperor
Jacques I.
1806
Dessalines is
assassinated.
Haiti divides into
a black-controlled
north and a
mulatto-ruled
south.
1822
President Jean Pierre Boyer unifies
Haiti and briefly conquers the
Spanish colony of Santo Domingo,
the eastern half of the island.
1843
Boyer is
exiled, after
ruining Haiti’s
finances.
1847
Faustin Élie Soulouque
becomes president,
and declares himself
Emperor Faustin I in
1849. His regime is
corrupt and violent.
1859
Soulouque is forced to abdicate,
and Haiti sinks into near-
constant political anarchy.
1915
The U.S., worried
about its investments
in Haiti and a possible
German invasion,
occupies the country.
1934
The U.S.
withdraws
its troops,
although it
retains control
of Haiti’s
government
finances until
1947.
1957
Physician François
Duvalier (Papa
Doc), campaigning
against the mulatto
elite and with the
support of the army,
wins a suspect
presidential election.
He revives voodoo,
claiming to be a priest, and terrorizes the
populace with his corrupt paramilitary
police, the Tonton Macoutes.
1964
Duvalier forces the National
Assembly to declare him
president for life.
1971
Papa Doc
dies and is
succeeded
by his 19-
year-old son,
Jean-Claude
Duvalier
(Baby Doc).
1986
After 15 more
years of repression
and punishing
economic decline,
riots break out.
Several of the few
remaining major
foreign-owned
businesses, such as
a Rawlings baseball
factory and a Club
Med resort, shut
down. Baby Doc
flees to France.
1990
Jean-Bertrand
Aristide,
a populist
Catholic
priest, is
elected
president.
1991
Aristide is ousted
by a military coup
in September,
seven months
after taking office.
Joseph Nérette
is installed as
president under
the control of
Raoul Cédras,
the leader of the
military junta. The
U.S. establishes
an economic
embargo.
1994
Cédras flees to
Panama after
U.S. President
Bill Clinton
and former
president
Jimmy Carter threaten a
possible invasion, yet also
promise to set him up in exile.
Aristide returns to power.
1996
With Haiti’s constitution
preventing Aristide from
serving consecutive
terms, René Préval, an
agronomist and political
ally, is elected president.
2000
Aristide, who
had broken with
Préval, wins a
bitterly disputed
presidential
election that
is boycotted
by opposition
parties.
2001
Aristide becomes
more autocratic,
and street gangs
loyal to him
clash with his
opponents. The
U.S., Canada and
other developed
countries
curtail aid.
2004
Ex-military officers
lead a coup, and
Aristide flees under
the direction of U.S.
marines, whose role is
the subject of heated
debate. Aristide moves
to exile in South Africa.
UN peacekeepers arrive
in Haiti and struggle to
quell violence.
2006
Préval wins a
presidential
election after a
recount pushes
his total in the
first round of
voting above
50%. From South
Africa, Aristide
denounces
the process
as “treason.”
2008
Riots over high
food prices break
out in April.
Rob Pitfield,
Scotiabank’s executive
vice-president of
international banking.
Maxime Charles (right),
the bank’s head of
country for Haiti
1900
PHOTOGRAPHS(RIGHT)GETTYIMAGES;(PRÉVAL)REUTERS
2000
1800

4. JUNE 2008 REPORT ON BUSINESS 55
You have to be very dogged and clever
A stroke of luck:
Snapshots of five hot spots where Canadian companies have boldly gone, using risk assessments from Control Risks,
an international security and risk consultant, and data from the Doing Business project of the World Bank’s
International Finance Corp., which ranks how easy it is for companies to operate in 178 countries.
Political risk
Security risk
148
WB-IFC rank
202
Estimated number of days
to complete paperwork to
start a business
Issues
Risk of kidnapping,
carjacking, armed robbery
and periods of unrest, plus
police corruption and
a weak judiciary
Canadian firms
Eurasian Minerals (gold),
Scotiabank, Gildan
Activewear
Political risk
Security risk
172
WB-IFC rank
51
Percentage of businesses
with paid security
Issues
The business and legal
environment continues to
be hostile and uncertain,
and increasingly violent
crime will have greater
impact on businesses
Canadian firms
SNC-Lavalin, Royal Bank,
Crystallex International
(gold), PetroFalcon Corp.
(oil and gas)
Political risk
Security risk
178
WB-IFC rank
7.85
Incidents of water shortages
in typical month
Issues
Ongoing counterinsurgency
and the return of refugees
may put brakes on building
a strong central government
Canadian firms
MagIndustries Corp.
(hydroelectricity), Africo
Resources (copper and
cobalt), Banro Corp. (gold),
Lundin Mining (copper
and cobalt)
Political risk
Security risk
159
WB-IFC rank
1,642
Number of days it takes to
enforce a contract through
the courts
Issues
Corruption, excessive
bureaucracy and inadequate
legal, regulatory and
financial structures.
Increasing anti-foreign
sentiments
Canadian firms
Garda (security), ATCO
Frontec, SNC-Lavalin,
SkyLink Aviation
Political risk
Security risk
145
WB-IFC rank
82%
Firms that expect to
bribe public officials
Issues
A weak legal framework
and lack of commercial
laws, plus uncertain
implementation and
enforcement
Canadian firms
Fairmont Hotels,
GeoSpatial/SALASAN
(governance consulting
and mine clearance)
Two Canadian companies
Danger zones
DEMOCRATIC
REPUBLIC
OF CONGOVENEZUELA AFGHANISTAN CAMBODIAHAITI

5. There’s a large industrial park
Are subsistence-level wages
Who is stepping up to the plate?
On the last day of our visit,
The view from the
hills above Port-
au-Prince, where
Haiti’s remaining
elite live, and
where it’s best to
have an armed
guard or two
along when you
shop or dine out
JUNE 2008 REPORT ON BUSINESS 57