Presentation for the Final Project of the Financing for Development MOCC

1. Call for more
Haitian Government
ENGAGEMENT

3. • Population > 10 million people (overcrowded
cities)
• Poorest country in the Western hemisphere
• Unstable political situation
• Natural disasters (hurricanes, floods, earthquake)
• Health concerns: Access to health care, Clean
drinking water, Sanitation, Malnutrition, Malaria,
Cholera
Haiti: overview

5. Haiti is among top ODA recipients
Source: OECD - DAC : http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm

6. Source: OECD - DAC : http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm
ODA, Haiti

7. Source: OECD - DAC : http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm
ODA, Donors for Haiti

8. Source: OECD - DAC : http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm
ODA by Sector (average 2014-15)
Education 7%
Health and Population 31%
Social Infrastructure and services 18%
Economic Infrastructure and services 11%
Production 8%
Multisector 7%
Programme Assistance 2%
Humanitarian Aid 14%
Other 2%

10. Nutrition Interventions
• In 2011 Haiti received $750 million in development
assistance to fight malnutrition and hunger. (This
financing is part of donor support following the 2010
earthquake)
• In 2012 the Ministry of Health and Population formulated
a Nutrition Strategic Plan (2013-2018) focused on
prevention and treatment of malnutrition, nutrition
protection in emergencies, improving information
systems for nutrition, inter- and intra-ministerial and
inter-sectoral coordination for nutrition, research and
training in nutrition
• In 2012 Haiti joined Scaling Up Nutrition (SUN)

11. Malnutrition and chronic food insecurity
• One of the five major causes of death in children < 5 y/o
Among children < 5 y/o
2.0% to 5.2% acutely malnourished
18% to 32% chronically malnourished
(2010-2012 data from UNICEF, MSPP, USAID)
• Over half of all households in Haiti (58%) are food insecure
(FAO, 2010. The state of food insecurity in the world: Economic crises –
impacts and lessons learned)
• Approx. 50% of food is imported: strong dependence on
international market, extremely vulnerable to price spikes
in the global food market
(Inter- America Development Bank, 2012)

12. • 2015/2016: one of the worst droughts in 35 years,
Haiti is now recovering from Hurricane Matthew
which hit the island in October 2016.
• 60% of the population depends on Agriculture for
their livelihood, Agriculture accounts for 25% of GDP
(down from 40% in 1990).
• Agriculture sector is challenged by decades of
underinvestment in infrastructure, poor natural
resource management, limited governance,
natural disasters and environmental degradation.
Malnutrition and chronic food insecurity

13. Poor resilience to shocks
economic shocks: volatile food prices and financial
crises;
environmental shocks such as climate change and
erratic weather patterns; natural disasters such as
floods and earthquakes;
social and political shocks such as conflicts and
violence
Malnutrition and chronic food insecurity

14. Use of ODA funds
in Developing Countries
From «Improving ODA allocation for a post-2015
world” report:
• strong evidence of the need to recalibrate
allocations of ODA is to fulfill its potential
• Better Information improves targeting
• Transparency and Accountability
• Two major actors have the potential to
significantly impact poverty: domestic institutions
(particularly the Government) and the Private
Sector

15. What can be done in Haiti from
the Government perspective?

16. • Costs of core micronutrient interventions are as low as
US$0.05–8.46 per person annually. Returns on investment
are as high as 6–30 times the costs.
(Horton S et al. 2009, Scaling Up Nutrition: What will it cost?)
• Annually, Haiti loses over US$56 million in GDP to vitamin
and mineral deficiencies. Scaling up core micronutrient
interventions would cost less than US$12 million per year.
(UNICEF and the Micronutrient Initiative, 2004, Vitamin and
Mineral Deficiency: A Global Progress Report).
Addressing malnutrition is cost effective

19. • In the absence of public services, non-State service
providers have stepped in. The reliance on non-State
actors has weakened public investment management
• Fonte)
• Many NGO efforts focus on short-term, stand-alone
projects rather than on longer-term programs
• Short funding cycles (typical of humanitarian responses,
disaster risk reduction) do not allow the time required to
effectively promote and improve adaptive and
transformative capacities in the long term
• Competition among NGOs: limited financial resources
can result in competition between NGOs and other actors
THEREFORE:
ODA: Allocation in Haiti

20. • Need of long-term, integrated approaches to
resilience programming: cross-sectoral approach with a
long-term commitment is required in order to improve the
absorptive, adaptive, and transformative capacities of
vulnerable populations to shocks and stresses
• Need to further improve Collaborations between
Donors and Governments to help the integration of
humanitarian and development strategies
• Need to move from a protracted emergency response
tradition toward a sustainable development approach with
a deeper engagement of the private sector
Change of approach in
resources allocation

21. Nutrition: food capacity
• Approx. 50% of the food is imported (major food imports
include cereals, vegetable fats and oils, dairy products,
meat, and poultry). According to Haitian Central Bank
(BRH) Haiti’s food imports topped USD 732 million in 2014
and USD 955 million in 2015.
• 80% of rice consumed in Haiti is imported (rice is a staple
food for a majority of Haitians)
• Haiti’s import tariffs on food are among the lowest in the
Caribbean (3%). Imported food is cheaper then locally
produced.

22. food production
• Poor farming technique
• Lack of affordable products: heavy machinery such as
tractors, cultivators and seeders, modern irrigation systems
are very expensive
• Most Haitian farmers rely on primitive methods to raise
crops (plant crop seed by hand, cultivate the soil with small
tools they can afford) and are forced to rely on the rain fall
to irrigate

23. food production
Haiti does not produce enough food to meet domestic
demand. In addition the infrastructure required to transport
within Haiti is poor.
There is a strong need to boost domestic food production
The government has identified agribusiness and the
expansion of agriculture investment as a priority for economic
development

24. Food production: opportunities
• Agriculture sector has high potential for organic product
development: Exports to the U.S. and the European
markets. As a member of the African, Caribbean and Pacific
trade agreement, and under the Bali Accord, Haiti enjoys
duty free and preferential access to the European markets for
most agricultural products.
• Haiti’s soil, topography, and climate is suitable for the
cultivation of organic fruits and vegetables, cocoa, sorghum,
and beans, providing high developmental potential for food
processing and agribusiness.

25. Global Agriculture and Food Security
Program (GAFSP)
Haiti is currently implementing a project trough the GAFSP
Public Sector Window:
USD 35 million for the Small Farmer Agriculture Technology
Transfer Project and the Relaunching Agriculture:
Strengthening Agriculture Public Services for agricultural
productivity growth through adoption of high yielding
technologies and research and extension
GAFSP plays an important catalytic role in the
implementation of sustainable medium and long-term
investments in agriculture

26. GAFSP has also the
Private Sector Window
• Private Sector Window is implemented and managed by
International Finance Corporation to provide innovative
financing aimed at increasing the commercial potential of
small and medium-sized agri-businesses and farmers by
connecting them with local, national, and global value
chains.
• It focuses on the following areas: Increasing productivity,
Supporting innovation and Reducing risks
• GAFSP Private Sector Window adds value to current
multilateral efforts in agriculture and food security through its
focus on small holder farmers and MSMEs
• Ongoing experiences (in Malawi, Bangladesh among
others) are giving encouraging results

27. Quoting from: World Bank Group approach
to unlock investment opportunities
Source: «Unlocking Investment Opportunities: World Bank Group Approaches and Initiatives”,
Speaker: Joaquim Levy Managing Director and WBG CFO. Financing for Development MOOC

28. Source: «Unlocking Investment Opportunities: World Bank Group Approaches and Initiatives”,
Speaker: Joaquim Levy Managing Director and WBG CFO. Financing for Development MOOC

29. Country Investment Climate is essential for
attracting private finance
Private financiers look for consistency in the
policy framework
Source: «European Bank for Reconstruction and Development: Focus on Private Sector Development”
Speaker: Sir Suma Chakrabarti, President, European Bank for Reconstruction and Development
Financing for Development MOOC

30. Private Sector challenges in Haiti
Source: « Doing on Business 2016, Haiti », World Bank Group, 13th Edition, pag.9
Globally, Haiti stands at 182 in the ranking of 189 economies
Rankings on Doing Business topics –

31. From «Haiti: towards a new narrative systematic country
diagnostic» May 2015, World Bank Group:
• The structure of the private sector shows high degrees of
concentration: hampering the entry of new actors and
resulting in high prices for consumers
• Political violence is frequent leading to instability: changes in
government and repeated delays in electoral calendars
• Business environment is hampered by institutional
weaknesses (tax system generates limited resources for the
government and tends to be regressive)
• Infrastructure falls short
• Provision of electricity is problematic
• Lack of qualified labor
Private sector challenges in Haiti

32. Governmental context
• Haiti has known a succession of short-lived
governments.
• Lacking sufficiently long periods of stability, the
Country has struggled to develop the institutional
mechanisms and policy fundamentals essential to
economic development
• Violence hampers economic opportunities

33. A call for Private Sector to rebuild Haiti
From «Haiti: towards a new narrative systematic
country diagnostic» May 2015, World Bank Group:
• Evidence suggests that a decline in extreme
poverty indicators was driven by increase of
labor income
• Private sector plays a fundamental role to create
jobs

34. Many challenges to be faced …
MIGA (member of the World Bank Group) mission
is to promote foreign direct investment (FDI) into
developing Countries to help support economic
growth, reduce poverty and to improve people's
lives
MIGA provides investment insurance (Guarantees)
for projects. Among the guarantees there is the
one for Currency Inconvertibility and Transfer
Restriction. Currency depreciation is not covered.

35. Government’s role
• High impact of Depreciation of Haitian Gourdes
against USD (approx. 25% decreased value in 3
years, 2013-2017)
• Poor governance, political instability has further
deteriorated the trust and reliability toward
donors and private sector (delayed elections
2015-2016)
Haitian Government plays a fundamental role
in re-building a positive Country Investment
climate