Haiti: Economic Growth, Again, Reduced for 2012
- Monday, June 18, 2012 8:44 AM
PORT-AU-PRINCE, Haiti (defend.ht) - For the second consecutive report published by the International Monetary Fund under the Martelly administration, the projected economic growth for Haiti in 2012 has been reduced.
Important to note, Haiti's economy is still expected to grow. It is the rate of growth that has decreased, quite dramatically, and are trending towards no longer having growth but possibly a recession in another six months.
Last week, the International Monetary Fund (IMF) released a forecast of economic growth - based on Haiti's expected year-end GDP for 2012.
The IMF's June 2012 forecast shows a growth of 4.5 - 5.5% in GDP for 2012. In 2011 the economy had grown 5%, virtually no change.
But in May 2011, at the end of the previous administration, that of Rene Preval, the IMF projected an economic growth of 8.6% for 2012.
Six months later, into the Martelly administration, that projection of 8.6% for 2012 had become 7.8% - a decrease of 0.8%.
As said before, today the projection is 5% +/- 0.5% - a possible reduction of 4.1% during Martelly's first year.
Something is Not Working.
The Martelly administration, now with its government officially led by its Prime Minister Laurent Lamothe prides itself on its business savvy.
"Haiti is Open for Business", "Invest in Haiti", and "Business Diplomacy", the talking points of the past year of the Martelly-Lamothe led government are not having any positive affect on Haiti's bottom-line.
These numbers show that fine talk, slogans and press releases are not enough to improve the lives of the Haitian people.
While the media has been used as a tool for what some would consider propaganda, government institutions are collapsing in the background.
Michel Martelly, an inexperienced, immoral entertainer, was not elected because the Haitian people felt he really could lead the country. He was elected because the people were desperate for change, desperate for an outsider.
But after a year, we have learned that Martelly is not very much different from his predecessors. He is quite talented in the politics of Haiti's past and in some cases even worse.
Corruption and impunity continues to reign and has led to revelations of questionable contracts, payments, manipulation of justice officials and anti-corruption agencies.
Governance has gone down hill as the country is experiencing a Constitutional crisis, is operating with two-thirds of its senate, illegitimate local officials nationwide, and no date insight for elections that were due to be held in November 2011.
It is these matters, matters of governance that hinder economic growth and investment more than anything else.
Martelly-Lamothe Has Work To Do.
Real work. It is not going to be the glamorous work of flying from country to country to meet heads of states and celebrities, it is the gritty work of strengthening and building Haiti's institutions.
It is not the work of inaugurating schools and projects accomplished by non-governmental organizations but the work of establishing the rule of law, accountability and order throughout Haiti.
Related 12.16.2011: Haiti: Rate of Economic Growth Decreased under Martelly, says IMF
Source: Le Nouvelliste