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Analysis Of Haiti

{draw:frame} {draw:frame} Presented by: Edwin Lucas - Cheryl Luna Economical Analysis Haiti´s GDP/PPP per capita is $1300(2007), with an inflation of 9%. It has a real growth rate of 3.2%, but in 2001 and 2001 there was a negative economic growth, following almost 4 years of recession, ending in 2004. 28% of their land is arable, and 66% of all Haitians work in this sector; unfortunately this represents only 27% of the GDP. They crop mainly coffee, mangoes, sugarcane, and rice. Workers in Haiti are guaranteed the right of association. Unionization is protected by the labor code. The legal minimum wage is 70 gourdes (about $1.70) per day. They export the most coffee and mangoes, which represent $554.8 million f.o.b. Imports grow to 1.844 $billion f.o.b. The major trade partners are U.S, Dominican Republic, Canada, Trinidad and Tobago, Cuba, and UK. The other sectors of the economy contribute to the GDP in the following way: industry 8% (apparel, handicrafts, electronics assembly, food processing, beverages, tobacco products, furniture, printing, chemicals, steel), services 40% (commerce, hotel and restaurants, tourism), and others 25%. Foreign aid makes up approximately 30%-40% of the national government´s budget. The largest donors are US, Canada and the European Union. It is important to mention that after the renewed alliances with Venezuela and Cuba, Haiti has been receiving contributions from them too. It is expected that Haiti receives debt forgiveness for about $525 million through the Heavily Indebted Poor Countries (HIPC) initiative by mid-2009. Haiti's economic problems is the result of earlier inappropriate economic policies, political instability, a shortage of good arable land, environmental deterioration, continued reliance on traditional technologies, under-capitalization and lack of public investment in human resources, migration of large portions of the skilled population, a weak national savings rate, and the lack of a functioning...