This document analyzes the costs and benefits of establishing an armed force in Haiti over a 33-year period from 2017 to 2050. It finds that the total estimated costs are $29.3 billion, while the total estimated benefits are $45.4 billion, resulting in a benefit-cost ratio of 1.6 using a 5% discount rate. The key benefits are a reduction in losses at borders from customs evasion of $43.9 billion and costs of $1.5 billion avoided from evacuating people from vulnerable areas during natural disasters. The armed force is expected to have 6,506 military personnel by 2050 and conduct missions like protecting borders, forests, and evacuating citizens during disasters.
Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
Establishing Armed Force Haiti BCR Analysis
1. Establishing an Armed Force: A
Benefit-Cost Analysis
Rudy Joseph,
Haiti Priorise Conference, March 2017
2. Importance of the Intervention
• Question of sovereignty and defense of the national territory
• Constitutional mandate (Article 263 of the amended constitution of
1987)
• Decree of the 9th of October 2015, concerning the organization and
functioning of the Ministry of Defence
4. Description of the Intervention
Set up a new armed force
• Missions:
Protection of the national territory through the internal security and control of the border and the
Haitian coast
The protection of forests and reserved areas
The evacuation of inhabitants from vulnerable areas in the event of foreseeable natural disasters
• Duration of the intervention: 33 years (2017-2050)
• Planned for 2050: 6506 military personnel
• Activities:
Short-term: Final handling procedures for demobilized soldiers; the integration into the armed
forces, on request, of persons who meet the military requirements and who do not have a legal
record; the set up a provisional general staff.
Mid and Long-term: The drafting and adoption of laws relating to the armed forces, the set up of a
general staff according to the final organizational structure of the armed forces, the construction
(or redevelopment) of a military infrastructure, the change of command of several units of the
Haitian National Police (HNP) to the military, recruitment of military cadets, purchase of materials
and equipment, deployment of military forces, etc.
5. Intervention Costs (in billions of gourdes)
Costs are shown with a discount rate of 5%
Discount Rate 5%
Construction, operation, maintenance, renovation 22,100.4
Territorial defence 5,658.4
Monitoring of locations 1,537.5
Total 29,296.3
6. Intervention Benefits
(in billions of gourdes)
Discount Rate 5%
Reduction of AGD’s (Customs) losses at the border 43,882.9
Reduction of deforestation and preservation of biodiversity 7,5
Evacuation 1,532.6
Total (updated) 45,423.1
7. Benefit-Cost Ratio
Intervention Discount Rate Benefit Cost BCR Data Quality
Establishing an
armed force
3% 65,606,013,614 39,578,789,078 1.7
Limited5% 45,421,507,376 29,296,290,610 1.6
12% 16,848,752,149 13,998,386,590 1.2
8. Benefit-Cost Ratio
Intervention Discount Rate Benefit Cost BCR Data Quality
Establishing an
armed force-
without a forest
patrol unit
3% 65,588,630,965 38,027,632,523 1.7
Limited
5% 45,415,566,977 23,637,895,628 1.9
12% 16,847,756,096 10,851,984,815 1.6